Professional Documents
Culture Documents
HRM Notes
HRM Notes
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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.
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Job description
Job specification
Qualification
Working hours
Qualities
Experience
Working conditions
Family background
Training
Interpersonal skills
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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.
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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
1. Task
characteristics
2. Process or flow
of work in
organization
3. Ergonomics
4. Work practices
1. Employee
availability and
ability
2. Social and
cultural
expectations
Behavioral factors
1. Feed back
2. Autonomy
3. Variety
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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
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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.
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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 employees skill. Job enlargement is
also essential when policies like VRS are implemented in the
company.
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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 employees. This
reduces the salary bill for the company.
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.
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4. Identifies higher order needs of employees :This method identifies higher order needs of the employee.
Abraham maslows 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.
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Personal requirement
Forecast
Personal supply
Forecast
Comparison
Differences
Yes
No
Personal
Surplus
(100=125)
Personal
Shortage
(100=75)
Layoff
Termination
VRS
Overtime
Recruitment/hiring
Subcontracting
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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
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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.
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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 its 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.
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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.
Internal source
1.
2.
3.
4.
5.
6.
Promotion
Departmental exam
Transfer
Retirement
Internal advertisement
Employee recommendation
External sources
1.
2.
3.
4.
5.
6.
Management consultant
Employment agency
Campus recruitment
News paper advertisement
Internet advertisement
Walk in interview
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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.
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Selection
Define selection :- (2 marks)
Selection can be defined as process of choosing the right person for
the right job.
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.
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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.
Aptitude
test
Intelligence
test
Personality
test
Mental ability/
Intelligence test
Medical aptitude
test
Psycho motor test
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Performance
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 coordination 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.
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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.
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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.
On the job
method
Apprenticeship
method
Vestibule
method
Job rotation
method
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Classroom
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.
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Job rotation
Classroom method
Planned progression
Simulation
Business games
Under study
Committees
Junior boards
Conferences
Readings
In-basket training
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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
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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.
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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.
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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.
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Definition :- (2 marks)
Performance appraisal is defined by Wayne Cascio as the
systematic description of employees 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.
Traditional method
1. Check list method
2. Confidential report
3. Critical incident method
4. Ranking method
5. Graphic rating scale
6. Narrated essay
Modern method
1. Role analysis
2. Assessment centers
3. management by objective
4. Behavioral anchored rating scale
5. Psychological testing
6. Human resource accounting
7. 360* Appraisal
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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
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Measuring performance
Discussing result
Collective action
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 companys convenience.
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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 employees
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.
Limitations of performance appraisal (5 marks)
Performance appraisal is defined by Wayne Cascio as the
systematic description of employees 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.
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