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MB0027

MB0027

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Name Roll Number Learning Centre Andheri Subject

: PRASHANT D. DEVALE : 510932455 : KARROX TECHNOLOGIES LTD,

: Human Resource Management

Date Of Submission : 13th June, 2009 Assignment No. : MB0027

HUMAN RESOURCE MANAGEMENT MB0027
SET – 1

Q.1 Discuss the difference between personnel management and Human Resource Management. Answer – The genesis of Human Resources Management traces its roots to the erstwhile Personnel Management that was prevalent in the companies of a few decades ago. Though the two terms' Personnel Management' and 'Human Resources Management' are interchangeably used by most of the authors, there are some differences between them. Management of Human Resources is a new field of study embodying behavioral science knowledge relating to the working of line and staff officials and union leaders to motivate organizational goals. On the other hand, Personnel Management is that phase of management which deals with the effective control and use of manpower. Yoder, Henemen and others agreed that the HRM is a broad concept which covers many personnel aspects and include social, professional and individual enterprise aspects, whereas Personnel Management focuses only on personnel aspects such as leadership, justice determination, task specialization, staffing, performance appraisal, etc. HRM is more growth oriented whereas Personnel Management is slightly narrow. Human Resource Planning is very vital in HRM. This is because it leads to the maximum utilization of human resources, reduces excessive labour turnover and high absenteeism; improves productivity and aids in achieving the objectives of an organization. In addition to the above function, HRM emphasizes on training, an important area of personnel, which covers the following aspects:

1. Increasing productivity 2. Improving quality 3. Improving organisational climate 4. Ensuring personnel growth etc. While in practice both pertained to people management philosophically the approach is vastly different. The expectations from Personnel management approach is to ‘take care’ of the people working in a organization, addressing grievances and complaints formed a large part of the Personnel Management function. The focus is largely reactive and followed the Theory X approach that believed that people do not naturally like to work and need to be coerced to work and often need to be driven to work. The philosophy is more the ‘stick’ approach rather than ‘carrot’ approach. Employee welfare is of paramount importance and managing industrial relations as a result of heightened trade union activity formed the highlights of the Personnel Management functions. Human Resources Management on the other hand adopts a proactive approach to managing people and the focus is on employee development and delight. Hiring the right talent, providing for ample opportunities for career growth and job satisfaction are the highlights of this management style. The basic philosophy is driven by the Theory Y approach where the belief is that people like to work and do not prefer to be supervised and made to perform. Q.2 Explain the Human Resource Planning System. Answer – Human Resource Planning System:A. Objectives of Human Resource Planning: Human Resource Planning fulfils individual, organizational and national goals; but, according to Sikula, "the ultimate mission or purpose is to relate future human resources to future enterprise needs, so as to maximise the future return on investment in human resources. In effect, the main purpose is one of matching or fitting employee

abilities to enterprise requirements, with an emphasis on future instead of present arrangements." The objectives may be laid down for a short term (i.e. for one year). B. Estimating the Future Organizational Structure or Forecasting the Manpower Requirements: The management must estimate the structure of the organization at a given point in time. For this estimate, the number and type of employees needed have to be determined. Many environmental factors affect this determination. They include business forecasts, expansion and growth, design and structural changes, management philosophy, government policy, product and human skills mix, and competition. Forecasting provides the basic premises on which the manpower planning is built. Forecasting is necessary for various reasons, such as: a. The eventualities and contingencies of general economic business cycles (such as inflation, wages, prices, costs and raw material supplies) have an influence on the short range and long run plans of all organizations. b. An expansion following enlargement and growth in business involves the use of additional machinery and personnel, and a reallocation of facilities, all of which call for advance planning of human resources. c. Changes in management philosophies and leadership styles. d. The use of mechanical technology (such as the introduction of automatic controls, or the mechanization of materials handling functions) necessitates changes in the skills of workers, as well as a change in the number of employees needed. e. Very often, changes in the quantity or quality of products or services require a change in the organization structure. Plans have to be made for this purpose as well. C. Auditing Human Resources: Once the future human resource needs are estimated, the next step is to determine the present supply of manpower resources. This is done through what is called "Skills Inventory". A skills inventory contains data about

each employee's skills, abilities, work preferences and other items of information which indicate his overall value to the company. D. Job Analysis: After having decided how many persons would be needed, it is necessary to prepare a job analysis, which records details of training, skills, qualification, abilities, experience and responsibilities, etc., which are needed for a job. Job analysis includes the preparation of job descriptions and job specifications. E. Developing a Human Resource Plan: This step refers to the development and implementation of the human resource plan, which consists in finding out the sources of labour supply with a view to making an effective use of these sources. The first thing, therefore, is to decide on the policy should the, personnel be hired from within through promotional channels or should it be obtained from an outside source. The best policy which is followed by most organizations is to fill up higher vacancies by promotion and lower level positions by recruitment from the labour market. Q.3 Write a detailed note on training needs identification. Answer – Training Needs Identification:Training could be a useful aid in improving the transformation process that takes place in an organization in terms of the processing of inputs to outputs. Training needs have to be related both in terms of the organization's demands and that of the individual's. Diversification of product lines, new technology, and hence a new kind of job demands the individual's growth and development through induction, training, or training necessitated by job rotation due to an organization's internal mobility policies. A survey conducted by A.D. Sinha, listed in rank order the following methods of identifying training needs: 1. Views of the line manager 2. Performance appraisal 3. Company and departmental plans

4. Views of training manager 5. Analysis of job difficulties. The model we shall examine here is the Thayer and McGhee model. It is based on the following three factors: 1. Organization analysis 2. Task analysis 3. Man analysis Q.4 Explain different types of appraisal methods. Answer – Types of Appraisal Methods:When it has been decided who will evaluate, when, and on what basis, the technique to be used will be selected. A number of approaches will be described here. There are several ways to classify these tools. The three categories used here will be; Individual evaluation methods; Multiple person evaluation methods; and other methods. Individual evaluation Methods: There are five ways to evaluate an employee individually. In these systems, employees are evaluated one at a time without directly comparing them with other employees. Graphic rating scale: The most widely used performance evaluation technique is a graphic rating scale. In this technique, the evaluator is presented with a graph and asked to rate employees on each of the characteristics listed. The number of characteristics rated varies from a few to several dozen. A factor analysis of the results indicates that only two traits were being rated: quality of performance and ability to do the present job. The ratings can be in a series of boxes, or they can be on a continuous scale (0-9) or so. In the latter case, the evaluator places a check above descriptive words ranging from none to maximum. Typically, these ratings are then assigned points. For example, outstanding may be assigned a score of 4 and unsatisfactory a score of 0. Total scores are then computed. In

some plans, greater weights may be assigned to more important traits. Evaluators are often asked to explain each rating with a sentence of two. Forced choice: The forced choice method of evaluation was developed because other methods used at the time led to a preponderance of higher ratings, which made promotion decisions difficult. In forced choice, the evaluator must choose from a set of descriptive statements about the employee. The two, three, or four statement items are grouped in a way that the evaluator cannot easily judge which statements apply to the most effective employee. Typically, personnel specialists prepare the items for the form, and supervisors or other personnel specialists rate the items for applicability; that is, they determine which statements describe effective and ineffective behaviour. The supervisor then evaluates the employee. The Personnel Department adds up the number of statements in each category, and they are summed into an effectiveness index. Forced choice can be used by superiors, peers, subordinates, or a combination of these in evaluating employees. Essay evaluation: In the essay technique of evaluation, the evaluator is asked to describe the strong and weak aspects of the employee's behaviour. In some enterprises, the essay technique is the only one used; in others, the essay is combined with another form, such as a graphic rating scale. In this case, the essay summarizes the scale, elaborates on some of the ratings, or discusses added dimensions not on the scale. In both of these approaches the essay can be open ended, but in most cases there are guidelines on the topics to be covered, the purpose of the essay, and so on. The essay method can be used by evaluators who are superiors, peers, or subordinates of the employee to be evaluated. Management by objectives: Another individual evaluation method in use today is management by Objectives (MBO). In this system, the supervisor and employee to be evaluated jointly set objectives in advance for the employee to try to achieve during a specified period. The method encourages, if not requires, them to

phrase these objectives primarily in quantitative terms. The evaluation consists of a joint review of the degree of achievement of the objectives. This approach combines the superior and self evaluation systems. Critical incident technique: In this technique, personnel specialists and operating managers prepare lists of statements of very effective and very ineffective behaviour for an employee.These are the critical incidents. The personnel specialists combine these statements into categories, which vary with the job. Once the categories are developed and statements of effective and ineffective behaviour are provided, the evaluator prepares a log for each employee. During the evaluation period, the evaluator "records examples of critical (outstandingly good or bad) behaviours in each of the categories, and the log is used to evaluate the employee at the end of the period. It is also very useful for the evaluation interview, since the evaluator can be specific in making positive and negative comments, and it avoids “recency” bias. The critical incident technique is more likely to be used by superiors than in peer or subordinate evaluations. Checklists and weighted checklists: Another type of individual evaluation method is the checklist. In its simplest form, the checklist is a set of objectives or descriptive statements. If the Rater believes that the employee possesses a trait listed, the Rater checks the items; if not, the Rater leaves it blank. A rating score from the checklist equals the number of checks. A more recent variation is the weighted checklist. Supervisors or personnel specialists familiar with the jobs to be evaluated prepare a large list of descriptive statements about effective and ineffective behaviour on jobs, similar to the critical incident process. Judges who have observed behaviour on the job sort the statements into piles describing behaviour that is scaled from excellent to poor (usually on a 711 scale). When there is reasonable agreement on an item (for example, when the standard deviation is small), it is included in the weighted checklist. The weight is the average score of the Raters to the checklist's use. The supervisors or other Raters receive the checklists without the scores, and they check the items that

apply, as with an un weighted checklist. The employee's evaluation is the sum of the scores (weights) on the items checked. Checklists and weighted checklists can be used by evaluators who are superiors, peers, or subordinates, or by a combination. Behaviourally anchored rating scales: Another technique which essentially is based on the critical incident approach is the behaviourally anchored rating scale (BARS). This technique is also called the behavioural expectation scale (BES). This is a new, relatively infrequently used technique. Supervisors give descriptions of actually good and bad performance, and personnel specialists group these into categories (five to ten is typical). As with weighted checklists, the items are evaluated by supervisors (often other than those who submitted the items). A procedure similar to that for weighted checklists is used to verify the evaluations (outstandingly good, for example) with the smallest standard deviation, hopefully around 1.5 on a 7point scale. These items are then used to construct the BARS. Q.5 Write a note on Motivation Techniques. Answer – Following Michael Jucius, let us see how management may proceed to motivate employees. This activity may be divided into two parts: a.what is to be done and b. how and why what is done. The former are steps in motivation and the latter are rules governing the steps. Both are performed simultaneously. The steps of motivation are listed below: 1. Size up situation requiring motivation: The first stage of motivation is to make sure of motivational needs. Every employee needs motivation. However, all people do not react in exactly the same way to the same stimuli. Keeping this in mind the executive

shall size up how much and what kind of motivation is needed and when and by which individuals. 2. Prepare a set of motivating tools: Having determined the motivational needs of a particular person or group an executive must have a list from which he should select and apply specific tools of motivation. An executive from his personal experience should prepare a list of what devices are likely to work with what type of people and under what circumstances. 3. Selecting and applying the appropriate motivator: Proper application of motivational plan is very important. This involves selection of the appropriate technique, the method of application and the timing and location of applications. Having selected appropriate techniques, thought must be given to its application. 4. Follow-up the results of the application: The last stage of motivation is to followup the results of the application of the plan. The primary objective is to ascertain if an employee has been motivated or not. If not, some other technique should be tried. A secondary purpose of followup is to evaluate motivation plans for future guidance. Rules of Motivating: In following the steps of motivation a manager should be guided by some fundamental rules which should be based upon the following principles: 1. Self-interest and Motivation: Undoubtedly, motivation is mainly built on selfishness. Psychologically speaking, selfishness is a part and parcel of life. To deny this is to build the theory on unrealistic foundation. To seek some other basis of motivation would be to ignore the real nature of man. The aim should be to learn more about selfishness. 2. Attainability: Motivation must establish attainable goals. What is prescribed for a particular person must be attainable by him. This does not mean that the goal is realized at once. Such goals as promotion or desirable transfer may take years to attain.

But it must be within reach.Eight Ways to Motivate Plant Employees Based on a fact-findingstudy conducted at several manufacturing plants of the General Electric Company, Sorcher and Meyer have made the following recommendations for improving the motivation of employees in routine jobs. 1. Provide assembly line employees with more than minimum training. Providing some sort of formal training for a factory employee beyond the required minimum should result in greater personal involvement in the job. 2. Create subgoals to measure accomplishment. A sense of competition is important to good motivation. When people work towards clearly defined goals they perform better. Moreover, they are likely to be more interested in the work which will reduce monotony and mental fatigue. 3. Provide regular feedback on performance. Psychological studies show that people perform better when they receive positive as well as negative feedback about their performance on a regular basis. 4. Maintain a neat and orderly work area. If the foreman does not care about neatness, employees may feel that they need not care about it and this attitude may also affect the quality of their work. 5. Arrange work situations so that conversation between employees is either easy or impossible. Experienced workers can do routine jobs with little attention to the task. Conversation while working may reduce monotony and fatigue and thus have a favourable effect on output. 6. If possible, increase the number of operations performed by one employee. This can be done by the simplification of manual operations. It offers several advantages, viz. i) the risk of errors is reduced; ii) training costs are minimized; iii) Management can hire employees at lower wages.

iv) Structure jobs, so that workers can, at least occasionally move about the work area. Besides job rotation, there are other ways to provide for physical movement such as setting employees secure their own tools or by adding operations which require some physical activity. v) Explore ways to assign greater personal responsibility. Increased responsibility means greater selfesteem and greater job meaningfulness. One way to enlarge responsibility is to let an employee inspect his own work

Q.6 Elaborate the importance of grievance handling. Answer – At one or other stage of the grievance procedure, the dispute must be handled by some member of management. In the solution of a problem, the greater burden rests on management. The clearest opportunity for settlement is found at the first stage, before the grievance has left the jurisdiction of the supervisor. For this reason, many firms have specifically trained their supervisors as to how to handle a grievance or complaint properly. The dispute or grievance constitutes a managerial problem and the scientific method is usually most productive in arriving at a satisfactory solution. The following directions help in handling a grievance: 1. Receive and define the nature of the dissatisfaction: The manner and attitude with which the supervisor receives the complaint of grievance is important. As a principle applicable to this step, the supervisor should assume that the employee is fair in presenting the complaint or grievance. Statements should not be prejudged on the basis of past experience with this or other employees. The supervisor should not be too busy to listen and should not give an impression of condescension in doing so. Thus supervisors who were nearly taskoriented, as contrasted with peopleoriented, tended to experience a significantly greater number of grievances being filed in their units.

2. Get the facts: In gathering facts, one quickly becomes aware of the importance of keeping proper records such as performance ratings, job ratings, attending records, and suggestions. In addition, with the increasingly legalistic bent that is characteristic of modern labourmanagement relations, the supervisor is wise to keep records on each particular grievance. It is also important that the supervisor possesses and exercise some skill in interview conference, and discussion. 3. Analyze and divide: With the problem defined and the facts in hand, the manager must now analyze and evaluate them, and them come to some decision. There is usually more than one possible solution. The manager must also be aware that the decision may constitute a precedent within the department as well as the company. 4. Apply the answer: Though the solution decided upon by the superior is adverse to the employee, some answer is better than none. Employees dislike supervisors who will take no stand, good or bad. In the event of an appeal beyond this stage of the procedure, the manager must have the decision and the reasons for his decisions should be properly recorded. 5. Follow up: The objective of the grievance procedure is to resolve a disagreement between an employee and the organization. Discussion and conference are important to this process. The purpose of its followup phase is to determine whether the clash of interest has been resolved. If follow up reveals that the case has been handled unsatisfactorily or that the wrong grievance has been processed, then redefinition of the problem, further factfinding, analysis, solution and follow up are required. Among the common errors of management encountered in the processing of grievances are: 1. Stopping too soon in the search of facts. 2. Expressing a management opinion prior to the time when all pertinent facts have been discovered. 3. Failing to maintain proper records. 4. Resorting to executive fiat or orders instead of discussion and conference to change minds.

5. Setting the wrong grievancea mistake which may in turn produce a second new grievance. Follow up is the step in the procedure that tells us when a mistake in handling has been made.

Case Study- MB0027 Quick post is a courier Services Company established for around 10 years. Its head quarters are at New Delhi and are having around 200 employees. Since past two years the business of the company in flourishing. They introduce special schemes for students during the month of May, June and July offering discounts to courier admission forms. At that time the work load increases by about 20% The North Zone is headed by Shiv Kapur for last 3 years. He is a friendly leader, sometimes when the team members leave to stay back he may make special arrangement, for snacks and tea. He also tries to give them compensatory off or related work day when the work load is less. He may also forward them some motivational or humorous mails during a hectic day , and after he may play some instrumental music records. Employees have great respect for him and they gladly accept the extra piece of work assigned to them. They enjoy their work and the level of commitment is a high. In the beginning of year 2000 Shiv Kapur has gone for a two years study leave. Mr. Indroneil De has joined in his place. Indroneil is a nice person, but is a bit short – tempered. Once some customer called him regarding the consignment which has not been delivered on time. Indroneil called a meeting and uses very tough remarks for the team. He strictly sticks to the timings and no flexibility is allowed to employees regarding the timings. Things are going well through there is a bit of unrest amongst the employees and they feel the work atmosphere has become too mechanical. Problems started in late may when the work pressure started increasing. No one was ready to stay back even 2 minutes They were not ready to postpone their leave plans and the productivity

and work place was quite low.Indroneil requested for the extra manpower, but it was not possible so soon. Indroneil is tense and sitting in his office he is wondering now, he shall deal with the crisis. He calls Mr. Ghosh, one of the old employee, and discuss the problem with him. Mr. Ghosh suggests that he shall discuss things with Mr. Kapur. 1 2 Comment on Mr. Kapur’s style of leadership What difference do you find in the behavior of employees during the leadership a Mr. Kapur and Mr. Indroneil? 3 What suggestions you may give to Mr. Indroneil to improve the situation and wish employee cooperation? 4 How will you try to measure the employee morale at quick post?

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