Human Resource Management

Prepared By: Ch. Naveed Rabbani

Productivity, Quality of Work Life


CREATED BY CH. NAVEED RABBANI Contact No: 0300-6601976 E-Mail:
Your suggestion and opinion for the development of these notes should be cordially appreciated.


Human Resource Management

Prepared By: Ch. Naveed Rabbani



Human Resource Management

Prepared By: Ch. Naveed Rabbani

Topics: HRM Concept & Definition Human Resources Challenges Resources Management Strategic Competitive Advantages Human Resource Function Strategic Human

HUMAN RESOURCE MANAGEMENT A comprehensive integrated system for effectively managing the work force to achieve organizational goals. *Human Resource Management refers to the policies, practices and systems that influence employee's behavior, attitudes and performance. IMPORTANCE OF HRM HRM is responsible for the people dimension of the organization. It is responsible for getting competent people, training them, getting them to perform high quality work activities and providing mechanisms to ensure that these employees maintain their productive affiliation with the organizations. HUMAN RESOURCE FUNCTION HRM consists of four basic activities such as 1) Staffing, 2) Training & 3) Motivation, 4) Maintenance


Staffing -- Job Analysis -- HR Planning -- Recruitment -- Selection

Training & Development -- Socialization -- Orientation -- Employees Training -- Emp. Development -- Org. Development

Motivation -- Motivation Theory -- Job Design -- Performance Appraisal -- Compensation -- Rewards & Benefits

Maintenance -- Safety & Health -- Communication -- Employee Relations -- Collective Bargaining

1) Staffing is the process of hiring potential employees who possess specific skill, qualification, knowledge and abilities that are directly required in the organization for the specific job. This is done by recruiting job applicants and then selecting the best applicants for the available jobs. o Job Analysis: A systematic process of collecting information about jobs, including the purpose of each job, its duties, its place in the organizational hierarchy, its working condition, and employee s requirement. o HR Planning: HR Planning is the systematic process of determining organizations human resource needs. Human resource planning is one of the most important elements in a successful human resource management program because it identifies the right number of qualified people into the right job at the right time. o Recruiting is the process of finding and attracting capable applicants for employment. o Selection is the process of choosing the applicants who best suit vacant positions and organizational needs. 02) Training and Development function concerned with assisting employees to develop up-to-date skills, knowledge and abilities for performing their jobs successfully. o Socialization: A process of adoption that takes place as individuals attempt to learn the values and norms of work rules. o Orientation is a short-term process of introducing employees to their jobs, their manager, the organization s structure and its hierarchy. o Employees Training: Employees training programs are designed to assist employees in acquiring better skills and abilities for their current job. The focus of employees training is on current job skill requirement.


Human Resource Management

Prepared By: Ch. Naveed Rabbani




Employee Development: Employees development programs are designed to help the organization ensure that it has the necessary talent internally for future human resource needs. The focus of employee s development is on a future position within the organization for which the employee requires additional competencies. Career Development: Career development programs are designed to assist employees in advancing their work lives. The focus of career development is to provide the necessary information and assessment in helping employee s career goals. However, career development is the responsibility of the individual, not the organization. Organizational Development: Organization development programs are designed to make innovative and progressive changes in the organizations. The focus of organization development is to change the attitudes and values of employees according to new organizational strategic direction.

03) Motivation function concerned with helping employees to promote high energy levels. o Job Design: The systematic process of structuring work and designating the specific work activities of an individual or groups to achieve certain organizational objectives. o Performance Appraisal: The process of evaluating employee s performance and providing feedback. Appraisals can improve performance and provide a basis for promotion, transfer, demotion, and termination. o Compensation: The direct wages, benefits, and incentives (such as bonuses) given to employees in exchange for their work. If compensation level are too low, an organization will have trouble attracting qualifies candidates. o Employees Benefits: Parts of the compensation package provided to the employees other then direct wages such as medical allowance, health insurance and pension plans. 04) Maintenance: The objective of this function is to maintaining employee s commitment and loyalty to the organization. o Safety & Health: HRM must work to ensure that the working environments safe and healthy for employees. Organization officials have legal responsibilities to ensure that the workplace is free from unnecessary hazards to employee's physical or mental health. o Communication: Communication programs designed to provide information to employees. o Employee Relation: Employees relation programs should be designed to ensure that employees are kept well informed, and to promote environments where employee s voices are heard. When employee s relations are ineffective, the employees may join together and form self-help groups called unions. o Collective Bargaining: The term collective bargaining typically refers to the negotiations, administrations and interpretation of a written agreement between two parties (generally union representative and organizations official) that cover a specific period of time. Human Resource Departmental Hierarchy (Sample HRM organizational chart)
President Vice President

Employment Manager Recruiter HRIS Analyst

Training & Development Manager Training Coordinator
Career Development

Compensation & Benefits Manager Compensation Analyst Benefits Specialist

Employees Relations Manager ER Specialist Safety Specialist


Topic: Equal Employment Opportunities Comparable Worth Glass Ceiling Work-Force Diversity

Defined Equal Opportunity: EEO provides an equal opportunity for employment without any regard to race, religion, sex, disability, or national origin.


Human Resource Management

Prepared By: Ch. Naveed Rabbani

The Pregnancy Discrimination Act of 1978: This law protect pregnant female and offer a reasonable period of time off from work. Although no specific time frames are given, the pregnancy leave is typically six to ten weeks. At the end of this leave, the worker is entitled to return to work. The Family & Medical Leave Act of 1993: Permits employees of the organization to take up to 12 weeks of unpaid leave for family or medical reasons each year. The Civil Right Act of 1991: Prohibits employment discrimination in hiring based on race, religion, color, sex or national origin Current Issues in Employment Law: Some major current issues are given below Sexual Harassment: Any unwanted behavior of a sexual nature that effect an individual s employment.

Any verbal or physical conduct toward an individual that 1) creates an intimidating, offensive, or hostel environment 2) Unreasonably interferes with an individuals work 3) adversely affects an employees employment opportunities.
Comparable Worth: Equal pay for jobs similar in skills, responsibility, and working condition. Glass Ceiling: The invisible barrier that blocks female & minorities to promote upper levels of an organization. A major development issue facing companies today is how to get women and minorities into upper level management positions-how to break the glass ceiling. The glass ceiling is a barrier to advancement to higher levels of the organizations. The glass ceiling is likely caused by lack of assess to training programs, appropriate developmental job experience, developing relationship such as mentoring. EMPLOYEE RIGHTS & HR COMMUNICATIONS The Privacy Act of 1974: Requires federal government agencies to make available information in an individual personal file. Drug-Free Workshop Act of 1988: Requires specific government related group to ensure that their workplace is drug free. Employee Polygraph Protection Act of 1988: Prohibits the use of lie-detector test in screening all job applicants. Permits their use under certain circumstances. Worker Adjustment and Retraining Notification Act of 1988 (WARN) Specifies for employees notification requirements when closing down a company or laying off large number of workers to give 60 days notice of pending action. Current Issue Regarding Employee Rights: Some of the following issues are given below. Drug Testing: The process of testing applicants or employees to determine if they are using illegal substances. 02- Honesty Tests: A specialized question and answer test designed to assess ones honesty. 03- Whistle-Blowing: A situation in which an employee notifies authorities of wrongdoing in an organization. 04- Employee Monitoring Company keeps information of its employee s activities. 05- Workplace Security focuses on protecting the employer s property and its trade business. 06- Workplace Romance: A personal relationship that develops at work.

Topic: Discipline Disciplinary guideline Specific disciplinary action Disciplinary action

Defined Discipline: A conditions where employees conduct themselves according to the organization s rules and regulation and standard of behavior.


Human Resource Management

Prepared By: Ch. Naveed Rabbani

Disciplinary Guidelines: All human resource managers should be aware of disciplinary guidelines. Make Disciplinary Action Corrective rather Than Punitive: The object of the disciplinary action is not to punish the employees. The object is to correct an employee s undesirable behavior. Make Disciplinary Action Progressive: Although the appropriate disciplinary action may vary depending on the situation. Typically progressive disciplinary action begins with a verbal warning and proceeds through a written warning, suspension and only in the most serious cases, dismissal. Follow The Hot-Stove Rule: Disciplinary decision should be immediate, provide ample warning, be consistent, and be impersonal. Specific Disciplinary Problems: Some of the following specific disciplinary problems are as under:
Types of Problem Dishonesty Attendance Outside Activities Infraction -- Fraud -- Gambling -- Tardiness -- Leaving without permission -- Leaving place of work with out reason -- Subversive activities -- Outside criminal activities -- Loafing -- Smoking -- Horse-laugh -- Drunk on the job -- Possession of drugs -- Sleeping on the job place -- Failure to obey safety rules -- Abusive language to supervisor -- Refusal to accept job assignment -- Stealing -- Corruption -- Unexcused absence -- Early quitting from work place -- Unauthorized activities -- Working for a competing company -- Fighting -- Horse-play -- Moonlighting -- Sexual harassment -- Distribution of drugs -- Refusal to work overtime -- Caring a concealed weapon -- Abusing language to customers -- Damage or loss of machinery or material


Disciplinary Actions: Generally follows a typical sequence of four steps 01-Written Verbal Warning: A temporary record of a warning that is placed in the manager s file on the employees, it is not forwarded to HRM for placed in the employee s official personnel files. If the written verbal warning is affective, further disciplinary action can be avoided. If the employee fails to improve, the manger will need to consider more action. 02-Written Warning: First formal step of the disciplinary process. In case of any violation from employees, manager writes up the warning, stating the problem and rule that has been violated, and the consequences of the deviant behavior and sends it to HRM for placed in the employee s official personnel files. 03-Suspension: A period of time off from work as a result of a disciplinary process. A suspension may be for one day or several weeks and it s depending on nature of violation. Suspensions occasionally occur if the infraction is a serious nature. 04-Dismissal: A disciplinary action that result in the termination of an employee. Dismissal should be used only for the most serious violation. Employee Counseling: A process whereby employees are guided in overcoming performance problems. The purpose of employee counseling is to uncover the reason for the poor performance and motivate them to work with efficiency and as per organization requirements. Using Information Technology for Employee Communication: Information Technology has made people in organization fully accessible 24 hours a day, 7 days a week, regardless of where they are. Three developments in information technology have the most significant effect on current organizational communication. 01-Network Communication: These include e-mail, voice mail, fax, and network computer system. 02-Wireless Communications: Wireless communication relies on signals sent through air or space with no physical connection. Using such device as microwave signals, satellites, or infrared light rays. 03-Knowledge Management System


Human Resource Management

Prepared By: Ch. Naveed Rabbani

Complaint Procedure: A formalized procedure in an org. where an employee seeks to resolve a work problem. Suggestion Program: A process that allows employees to tell management about their ideas and proposal 4) JOB ANALYSIS & JOB DESIGN Topics: Defining Job Analysis Purpose of job analysis Methods of Job Analysis JOB ANALYSIS A systematic process of collecting information about jobs, including the purpose of each job, its duties, its place in the organizational hierarchy, its working condition, and employee s requirement. PURPOSE OF JOB ANALYSIS The purpose of Job analysis is to evaluate the performance of employees toward the standards of organization and define the following function. o Job Description: A list of the TDRs tasks, duties, and responsibilities that define a specific job. Contents of Job Description: A job description should be formal, written document, usually from one to three pages long. It should include the following. (date writing) Date Written (Full-time, part time, contractual job, salary or wages) Job Status (information about post or designation) Position Title Job Summary Detail list of Duties Supervision Received Supervision exercised Principal contacts o (Condensed explanation of duties and responsibilities of the job) (Detail list of task, duties & responsibilities which employee must perform) (to whom the jobholder reports) (who reports to this employee) (in and outside the organization):

Job Specification: A list of the KSAOs knowledge, skills, abilities and other characteristics that an individual must have to perform the job. Job specification indicating the minimal acceptable qualification that candidate must possess to successfully perform the essential elements of their job. -- Knowledge refers to factual or procedural information that is necessary for successful performing a task. -- Skill is an individual level of proficiency at performing a particular task. -- Ability refers to a more general capability that an individual possesses. -- Other Characteristics might be traits, such as ones achievement motivations or persistence. o Job Evaluations: Job evaluation specifies the relative value of each job in the organizations.

JOB ANALYSIS METHODS The basic method by which HRM can determine job elements and the essential knowledge, skills and abilities for successful performance include the following: 1) Dairy Method: A job analysis method requiring employees to record their daily activities. This is the most time consuming job analysis method and may extend over long periods of time. 2) Individual Interview Method: Meeting with an employee to evaluate what his or her job requirements. 3) Group Interview: Meeting with a number of employees to collectively determine what their job entails. 4) Observation Method: A job analysis technique in which data are gathered by directly watching employees work activities or reviews films of the workers on the job. This method can collect information for only some specific job such as telephone operator, security guard, and those employees are directly working with tolls or equipments. Collecting accurate information for managerial job is nearly impossible through observation method. 5) Technical Conference Method: Job analysis techniques that involve extensive input from the employee s supervisor. Here, specific job characteristics are obtained from the experts. 6) Structured Questionnaire Method: A specifically designed questionnaires on which employees describe their job related duties and responsibilities. Jon analysis questionnaires are typically tree to five pages long and contain both close and open-ended questions. This technique is excellent for gathering information about jobs.


Human Resource Management

Prepared By: Ch. Naveed Rabbani

JOB DESIGN Job design is the systematic process of structuring work and designating the specific work activities of an individual or groups to achieve certain organizational objectives. The goal of job design is to develop work assignments that meet the requirements of the organizations and the technology and satisfy the personal requirements of the jobholders. Following guidelines must be considered to designing jobs. • Job leads to some sort of desirable future • Job leads to learn on the job and to continue learning • Job leads to social support and recognition in the workplace. • Job leads to some minimum area of decision making that they can call their own. 5) HUMAN RESOURCE PLANNING Topic: Reasons for Human Resource Planning - The HR Planning Process REASONS FOR HUMAN RESOURCE PLANNING There are some following key reasons for human resources planning. • HR Planning reduces overlapping and wasteful activities. • HR Planning establish a clear statement of the organizations mission. • HR Planning reduces uncertainty toward achieving organization goals. • HR Planning determine the additional organization human resource needs. • HR Planning identifies the right number of qualified people into the right job at the right time. • HR Planning give direction to employees to effectively & efficiently achieve the goals or objectives. • HR Planning determine the skills, expertise and the total number of employees required to achieve the organizational objectives. THE HUMAN RESOURCE PLANNING PROCES HR Planning: HR Planning is the systematic process of determining organizations human resource needs. Human resource planning is one of the most important elements in a successful human resource management program because it identifies the right number of qualified people into the right job at the right time. Steps in the Human Resource Planning Process: HRP process consists of four basic steps • Determining the impact of the organizations objectives on specific organizational units. • Defining the skills, expertise, and total number of employees required to achieve organizational and departmental objectives. • Determining the additional human resources requirements. • Developing action plan to meet the anticipated human resources need.

Determining Organizational Objectives

Determining Skills & Expertise Required

Determine Demand for Human Resources

Determine Additional HR Requirements

Develop Action Plan

-- Org. Direction -- Org. Purpose -- Environmental Factors

-- Determining Skills -- Expertise Required

-- Forecasting -- Managerial Estimates -- Delphi Techniques -- Scenario Analysis -- Benchmarking

-- HRIS -- Succession Planning -- Replacement Chart

-- Adding Human Resources --Temporary Hires -- Outsourcing -- Option for Labor Surplus -- Options for Labor Shortage

Step: 01) Determining Organizational Objectives Organizational objectives are statement of expected results that are designed to give the organizations and its members' direction and purpose. The objective setting process begins at the top of the organizations with a statement of mission, which define the organizations current and future business? Long term objectives and


Human Resource Management

Prepared By: Ch. Naveed Rabbani

strategies are formulated based on the organizations mission statement. These can be used to establish short term performance objective. Divisional or departmental objectives are then derived from the organizations short term performance objectives. -- Environmental Factors Affecting Human Resource Needs: Many environmental factors in the organizations may have an impact on the organizations performance to achieve its objectives. Some of these factors include competitors, suppliers, natural, political, economic, technological, social/cultural and international factors. Step: 02) Determining the Skills and Expertise Required After establishing organizational, divisional and departmental objectives, operating managers should determine the skills and expertise required to meet their respective objectives. .The purpose is not to look at the skills and abilities of present employees but to determine the skills and abilities required to meet objectives. For example, suppose an objective of the production department is to increase total production of a certain items by 10 percent. In this case, production manager must determine skills and expertise necessary to meet their objectives. He may appoint more senior members or may arrange training programs for enhance the productivity of the current employees. Step: 03) Determine Demand for Human Resources The organizations future human resource demand can be forecasted using a variety of methods, some simple and some complex. Regardless of the method used, forecasts represent approximations and should not be viewed as absolutes. Methods of Forecasting: Methods for forecasting human resource needs can be either judgmentally or mathematically based. Judgmental forecasting methods include managerial estimates, Delphi techniques, and scenario analysis, and benchmarking techniques. Forecasting: The process of predicting future environmental condition based on current data, research and past experience. o Managerial Estimates: Judgmental method of forecasting that call on managers to make estimates of future staffing needs based on past experience. o Delphi Techniques: Judgmental method of forecasting that uses a panel of experts to make initially independent estimates of future demand. o Scenario Analysis: Scenario Analysis involves using workforce environmental scanning data to develop alternative workforce scenarios. These scenarios are developed in brainstorming session with line manager and human resource mangers who forecast what they think their workforce will look like five or more years into the future. o Benchmarking: Judgmental method of forecasting that compare an organizations workforce and practice with other organizations as comparatively the same size and nature to make estimates of future staffing needs. Mathematically based methods for forecasting human resource needs include various statistical and modeling methods. Statistical methods use historical data in some manners to predict future demand. Modeling methods usually provide a simplified abstraction of the human resource demands throughout the organizations. Statistical and modeling forecasting methods include Time-series Analysis, Personnel Ratios, Productivity Ratios, and Regression Analysis. Step: 04) Determine Additional HR Requirements o Human Resource Information Systems (HRIS) The HRIS is database system that keeps important information about employees in an easily accessible location. When such information is required, the data can be retrieved and used to facilitate employee planning decision. o Succession Planning: Succession planning identifies specific people to fill key positions throughout the organizations. Succession planning almost always involves the use of replacement chart. o Replacement Chart: HRM organizational charts indicating positions that may become vacant in the near future and the availability of individuals who may fill the vacancies. A Sample of Replacement Chart
Ch. M. Hussain Current Position: President Age: 64 Expected replacement needed: 01 year Education: MPA Experience: 27 years Possible Replacement Irfan Haider Imran Idrees


Potential Ready in Medium 08 month High 14 month

Human Resource Management

Prepared By: Ch. Naveed Rabbani

Irfan Haider Current Position: Vice President Age: 40 Expected replacement needed: 01 year Education: MBA Marketing Experience: 17 years Possible Replacement Bilal Shamim Haroon Ahmed Sara Sheikh Potential Ready in Medium 11 month Medium 02 years High 03 years

Imran Idrees Current Position: Vice President Age: 45 Expected replacement needed: 01 year Education: MBA HRM Experience: 20 years Possible Replacement Asif Saeed M. Azeem M. Ashraf Potential Medium Medium High Ready in 01 years 02 years 03 years

Step: 05) Develop Action Plan Once the Human resource requirements have been determined, managers must develop action plans for achieving the desired results. The following actions that can be taken to add or less human resource requirements. Adding Human Resources: Many environmental factors may impact the decisions to hire permanently or temporarily or to outsource. If the requirements indicate a need for additional human resources, decision must be made whether to make permanent or temporary hire or to outsource. If the decision is to make permanent hires, plans must be made to recruit, select, orient, and train the specific numbers and types of personnel needed. If the decision is to make temporary hires, plans must be made to identify the actual numbers and types of personnel needed. If the decision is to make outsource, plans must be made to identify the potential setup that work according to the requirements of the organization and complete their task as schedule times. Temporary Hires and Outsourcing: Temporary hires and outsourcing have the advantage of allowing the organizations to easily accommodate demand for human resources. Temporary employees often don't have the same benefits as permanent employees and the cost of employment can be less. Other potential advantage of using temporary employees and, specifically, temporary agencies, is that the agencies often provide both testing and training for employees before they hired. A final potential advantage of temporary employees is that because of their varied experience, they can bring a new perspective to the organizations. If the decision is to outsource, then potential clients for outsourcing must be identified and evaluated. Outsourcing has become attractive in many situations because the work can often be contracted outside at cost savings. Another reason to outsource is to allow the parent company to focus on its core business. Options for Reducing Labor Surplus • Layoff: A layoff, as opposed to a termination, assumes it is likely that the employees will be recalled at some later date. • Transfers: A transfer involves moving the employees to another part of the organizations. • Demotions: Demotion some time called reclassification. Reclassification involves demoting an employee, downgrading job responsibilities, or combination of two. Usually reclassification is accompanied by a reduction in pay. • Downsizing: Downsizing is planned elimination of large number of personnel form the organizations. Survey indicates four major reasons that organization engaged in downsizing -- First: Many organizations were looking to reduce costs because a labor cost represents a big part of company total costs. -- Second, latest and computerized technology has major cause to reduce work force. -- Third reason for down sizing was that many mergers and acquisitions reduced the need for bureaucratic overhead, displacing many managers and some professional staff members.


Human Resource Management

Prepared By: Ch. Naveed Rabbani

-- Fourth reason for downsizing was that for economic reasons, many firms changed the locations of where they did business. Many Pakistani organization moves their manufacturing set up in china, Bangla Dash or other countries due to cheap labor cost or easy availability of the raw material. • Early Retirement: One popular means of reducing a labor surplus is to offer an early retirement programs. Recent years a lot of well know companies offer "Gold shake Hand" (early retirement) to their employees. Although an older workforce has some clear advantages for organizations in term of experience and stability, but it also poses some problems. -- First, older workers are sometimes more costly than younger workers because of their higher seniority, higher medical costs, and higher other fringe benefits. -- Second, older workers typically occupy the best paid jobs; they sometimes prevent the hiring or block the advancement of younger workers. Options for Labor Shortage • Over Time: Over time is the most popular option for labor shortage. Organization offers overtime to their current employees and complete their schedule work. Employees are encourage and willing to perform extra work activities because he get additional remunerations due to over time. • Outsourcing: Outsourcing is the specific activities of subcontracting work to an outside company that specializes in those particular types of work. • Temporary Employees: Most of the seasonal organization such as Floor Mill, Sugar mill, Rice Mill often hire temporary employee due to the nature of work. These organization works just five to six month approximately in year. So there is no need to appoint permanent employees. • In the same way most of the manufacturing organization hire temporary work on the bases of daily wages for accomplishes their work load. They appoint temporary employees because some time they have extra ordinary work load due to larger demand of their products. Some time they have minimum work load so there is no need to keep remain the service of temporary employees. So Organizations terminate the service of these employees. • Technological Innovation: Most of the organizations upgrade their technologies. Due to technological improvement there is no need to appoint a number of labors on machinery. These digital technological equipments or machine perform the major function, and minimize the need for human resource. If any problem exist, it automatically inform through Alarm. 6) RECRUITMENT
Topic: Defining Recruitment Recruitment Sources Advantages & Disadvantages of Internal and External Recruitment Barriers to Recruitment Success Recruitment Alternatives

RECRUITING *Recruitment is the systematic process of identifying potential candidate for the vacant position of the organization. In simple, recruitment is process of finding the right person for the right job at the right time. *Recruitment is the process of finding and attracting capable applicants for employment. * Recruitment is the process of seeking a pool of people from which qualified candidates for job vacancies cab be chosen. Barriers to Recruiting Success: Some of the following recruiting barriers are given below: 1) Recruiting Costs: Recruiting costs is one of the major barrier to identity the potential applicants. Some times continuing a search for long periods of times is not possible because of budget restrictions. 2) Attractiveness of Job: Most of the job advertisement may don t attract to candidate due to the following aspects. -- Job viewed as boring -- Less opportunities for career development -- Job may perform in out station (out of city) -- Job viewed as to much hazardous (risky) to perform -- Job offer less salary, benefits and other fringe benefits -- Job is not relevant as per their interest, education, or experience -- Everyone wants to do job in large setup, so small set up may don t attract to candidate


Human Resource Management

Prepared By: Ch. Naveed Rabbani

Such elements can reduce the organization abilities to attract the qualified pool of applicants for being the part of their firm. 03-Government Influence: Organizations must be carefully determining the governmental influence before job advertisement. For example, an airline wishing to appoint young and attractive females will find itself breaking the law if comparably qualified male candidate are rejected on the basis of sex or female candidate are rejected on the basis of age. 04-Image of the Organization: If the image of the organization is perceived to be low, prospective candidate may not be interested in pursuing job opportunities in this organization. Some of the following key reasons may create a bad image of the firm. -- Child labor -- Unsafe working condition for workforce -- Producing poor quality products or service -- A reputation for being in a declining industry -- Violation of basic employees rights at workplace -- Unethical behavior of the owner with employees -- Engaging in practice that result in pollution the environment Such reputation can reduce the organization abilities to attract the best personnel for being the part of their organizations 05-Internal Organizational Policies. Internal organization policies are sometime reducing the abilities to attract qualified pool of personal due to the following reason -- Contractual jobs (the chances of eliminating after contractual period.) -- Adverse organizational policies or rules and regulation RECRUITMENT SOURCES Recruiting Sources: Some of the following recruiting sources are given below: The Internal Sources of Candidates: Identify the potential candidate from inside the organization 1) Employee Referrals / Recommendations: A recommendation from a current employees for appointment any vacant vacancy in their organization. 2) Finding Internal Candidates (Job Posting and Job Bidding): A method of informing employees about job vacancies by posting a notice in central location throughout the organization and giving a specified period to apply for the job. Normally the job notice specifies the job title, rate of pay, and necessary qualifications. 3) Rehiring: Rehiring former employee is one of the important internal sources of candidates. Former employees are already familiar with the company culture, style and way of doings. The External Sources of Candidates: Identify the potential candidate from outside the organization 4) Advertisement: Advertisement in print media (newspaper) electronic media (TV) is the most popular sources to identify the potential applicants. Most of the organization placed an ad in local or national newspaper and receive number of job application for particular vacancy. o Blind-box ad: An advertisement that does not identity the advertising organization. 5) Employment Agencies: There are three forms of employment agencies: 1) Public agencies 2) Agencies associated with nonprofit organization 3) Private employment agencies. The major deterrence between these three sources is the type of clients served. o Public Agencies: Public agencies operated by federal, state, or local government. Former Punjab Minister once starts the job internship program for those students who recently completed their graduation or master study. Punjab government offers the job opportunities to those students to work in different Govt. sector with approximately 14000 initial salaries for the contract of two years. o Agencies associated with nonprofit organization o Private Employment Agencies. Private employment agencies often known as job bank. These agencies are important sources of clerical, white-collar, and managerial personnel. They charged fees (set by state law and posted in their office) for each applicant they place. Unfortunately, the role of these job banks is not positive in Pakistan. They advertise fake job advertisement in different newspaper for the purpose of just getting initial employment fees 200 to 500. 6) College & Universities: College & Universities is also important sources to identify the potential applicants. Organizations place their job advertisement in college or university and discover potential candidates.


Human Resource Management

Prepared By: Ch. Naveed Rabbani

Campus Recruiting: Recruiting on college and university campus is a common practice of both private and public organizations. Campus recruiting activities are usually coordinated by the university or college placement center. Generally organizations send one or more recruiter to the campus for initial interviews. The most promising recruits are then invited to visit the office before a final employment decision made. 7) Unsolicited Applicants: Unsolicited applicants reach the employer by letter, fax, e-mal, and telephone without any sophisticated job advertisement offer. Although there is no particular offer when the applicant contacts the organization, the application can be kept on file for later need. Those individual who have adequate skills and who would be prime candidate for positions in the organizations are consider for the job if a position currently available. 8) Cyberspace Advertisement: Cyberspace advertising is one of the most popular and cost effecting methods by the organization. Organizations place job advertisement for vacant position with necessary requirements in their website. Interested candidate often search the well famous organization website and search out the vacant job position. If they find any vacant potion then they can submit their resume and application directly in organizations web site. If they match organizations requirement, then may invite for test or interview. o Recruitment Alternatives: Some of the following recruitment alternatives are as under: • Temporary Help Services: Temporary employees come into organization far a specific short-term project. For instance, mostly textile mill hire the temporary services of labor for specific time. • Employee Leasing: Individuals hired by one firm and sent to work in another for a specific time. For instance, security agencies provide security guard to the number of firm for specific time. • Independent Contractors: Companies may hire independent contractors to do specific work for their organization. For instance, Companies hire the service of legal advisor for examines company s legal matters. Advantages and disadvantages of Internal Recruitment Sources
Advantages of Internal Recruitment Cost effective method of recruitment Less time required to fill vacant job position Morale and motivation of employees are enhanced Job candidate has a better knowledge of the company Job candidates has already relation with current employees Company has a better knowledge of strength and weakness of job candidate Candidate has already familiar to the rules and regulation of the organization Disadvantages of Internal Recruitment ------Internal recruiting may reduce new ideas and innovation Inadequate promotion can negatively affect the morale of others Attracting, contacting and evaluating potential employees is more difficult People might be promoted to the place where they cannot successfully perform the job

Advantages and disadvantages of External Recruitment Sources
Advantages of external Recruitment The pool of talent is much larger New insights and perspectives can be bought to the organizations Frequently is easier to hire technical, skilled or managerial employees form outside External Skilled personnel play vital role for development of the organizations. Disadvantages of External Recruitment Adjustment and orientation time is longer Required a longer time for filling vacant positions Expensive method of recruitment especially if organization use newspaper job advertisement Arrange adequate training programs in case of appointment of fresh job applicants


Human Resource Management

Prepared By: Ch. Naveed Rabbani

7) FOUNDATION OF SELECTION Topic: Defining Selection The Selection Process
Generalizability, Utility, and Legality Types of Interview

Selection Method Standards: Reliability, Validity, Types of test

SELECTION Selection is the process of choosing the applicants who best suit vacant positions and organizational needs. THE SELECTION PROCESS Selection activities follow a standard pattern, beginning with an initial screening interview and concluding with the final employment decision. The selection process typically consists of eight steps as under:
Failed to meet minimum qualification

Initial Screening

Failed to meet job specification

Completed Application
Passed Failed test

Employment Test
Passed Failed to impress interviewer Passed

Comprehensive Interview
Problem encountered

Conditional Job Offer

Background Examination (if required)

Unfit to do elements of job

Medical/Physical Examination (if required)

Reject Applicant

Permanent Job Offer

1) Initial Screening: Initial screening is the process of eliminates the applicants based on the job description and job specification. 2) Completed Application: Once the initial screening is completed, applicants are asked to complete the organization s application form. This may require the applicant s name, address, contact no, qualification, experience or other comprehensive employment profile. 3) Employment Test: Organization s conduct an employment test to evaluate the knowledge, skill and abilities of the candidates. Many types of test are available to organization for use in the selection process. Some of the following important categories of tests are: aptitude test, interest test, personality test, psychomotor test, job knowledge and proficiency test, polygraph tests, and graphology tests. 4) Comprehensive Interview: A selection device used to obtain information about a candidate. Organizations use several types of interviews. Some of the following important types of interviews are structures interview, unstructured interview, semi structured interview, stress interview and board/panel interview. 5) Conditional Job Offer: If job applicants have passed interview of the selection process, a conditional job offer is usually made. 6) Background Investigation: The process of verifying information of job candidate. Generally there are three types of verification conduct by he organizations. This can include contacting former employers to confirm the candidates work record, verifying educational accomplishments, and verifying an individual legal status. • Verification of Educational Certificate: Organization may verify the complete education certificate of the specific candidate form their educational institutions. The purpose of verification is to determine whether he or she has original or fake educational documents. • Verification of Individual Legal Status: Organization may verify the individual legal status form police station. The purpose of verification is to determine whether he or she engaged any criminal or subversive activities in past or current scenario.


Human Resource Management

Prepared By: Ch. Naveed Rabbani

Verification of Candidates Work Record: Organization may verify the individual work records from their previous organizations. The purpose of verification is to determine whether he or she engaged any criminal or subversive activities in their previous organizations. 7) Medical/ Physical Examination: The next-to-last step in the selection process may consist of having the applicant take medical/physical examinations. • Physical Exams can only be used as selection device to screen out individuals who are unable to physically comply with the requirements of the job. Jobs that require certain physical characteristics, then, may entail a job related physical examinations. • Medical Exams indicating an applicant is medical fit for essential job performance. Failure in medical examination may cause to reject the candidate. 8) Permanent Job Offer: Those candidates who perform successfully in the proceeding steps are now considered to be eligible for a permanent job offer. THE SELECTION PROCEDURE Selection procedure concerned with selection activates that can help organizations which applicant will perform satisfactorily on the job. For this purpose, we explore the concept the reliability, validity, cut scores and legality. Reliability: A selection devices focus on consistency of measurement. For example, if we give applicants an IQ test, we should expect that some one who secures 90 out of 100 in March would secure close to 90 if tested again in July. If, in July, the same applicant scored 60, the reliability of the test would be highly questionable. On the other hand, if we were measuring attitude or mood, we would expect different secure on the measure, because attitude and mode change. Validity: The proven relationship of a selection device to relevant criterion. There are three specific types of validity: content, construct, and criterion related. • Content Validity: Content validity is the degree in which test contents or questions about job tasks, as a sample, represent situations on the job. All candidates for that receive the same test or questions so applicant can be properly compared. A simple example of content-valid test is a typing test for a word processing positions. The applicant can be given a typical sample of typing, on which his or her performance can be evaluated. • Construct Validity: Construct validity is the degree in which a test measure a particular trait related to successful performance on the job. These traits are usually abstract in nature, such as the measure of intelligence. Construct validity is complex and difficult. In fact, it is the most difficult types of validity to prove because you are dealing with abstract measures. Criterion-related Validity: A particular selection devise accurately predicts the important elements of work behavior, as in the relationship between a test score and job performance. • Predictive Validity: The predictive validity method validates tests by using prospective applicants as the study group. • Concurrent Validity: The concurrent validity method validates tests using current employees as subject. These employees take a proposed selection test experimentally. Their scores are immediately analyzed, revealing a relationship between their test scores and existing performance. Cut Score: A scoring point below which applicants are rejected. Legality: The final standard that any selection method should concentrate is legality. All selection methods should conform to existing laws and existing legal precedents (standards or pattern). TESTING / INTERVIEW TYPES OF TEST: Many types of test are available to organization for use in the selection process. Some of the following important categories of tests are: aptitude test, interest test, personality test, psychomotor test, job knowledge and proficiency test, polygraph tests, and graphology tests. 1) Aptitude Test: Aptitude tests measure a person capacity or potential ability to learn and perform a job. Some of the more frequently used tests measure verbal ability, numerical ability, perceptual ability, spatial ability, and reasoning ability • Verbal Ability: Verbal aptitude tests measure a person ability to use words in thinking, planning and communicating. • Numerical Ability: Numerical aptitude tests measure a person ability to add, subtract, multiply, and divide. • Perceptual Ability: Perceptual aptitude tests measure a person ability to recognize similarities and differences.


Human Resource Management

Prepared By: Ch. Naveed Rabbani

Spatial Ability: Spatial aptitude tests measure a person ability to visualize object in space and determine their relationship • Reasoning Ability: Reasoning aptitude tests measure a person ability to analyze oral or written facts and make correct judgments concerning these facts on the basis of logical implications. 2) Interest Test: These tests are designed to determine how a person's interests compare with the interest of successful people in a specific hob. These test indicate the occupation or area of work in which the person is most interested. The primary problem with using interest tests for selection purpose is that responses to the questions are not always sincere. 3) Personality Test: These tests attempt to measure personality characteristics. Two of the better-known personality tests are the Rorschach Inkblot Tests (RIT) and the Thematic Apperception Test (TAT) • Rorschach Inkblot Tests (RIT): In the RIT, the applicants is shown a series of cards that contain inkblots of varying sizes and shapes. The applicants are asked to tell what the inkblots look like to him or her. • Thematic Apperception Test (TAT): In the TAT, the applicants is shown picture of real-life situations for interpretation. With both of these methods, the individual is encouraged to report whatever immediately comes to mind. Interpretation of these responses requires subjective judgment and the service of a qualified psychologist. 4) Psychomotor Test: Psychomotor test measure a person strength, dexterity, and coordination. Finger dexterity, manual dexterity, wrist-finger speed and speed of arm movement are some of the psychomotor abilities that can be tested. Abilities such as these might be tested for hiring people to fill assembly line jobs. 5) Job Knowledge and Proficiency Test: Job Knowledge tests measure the job related knowledge possessed by a job applicant. These tests can be either written or oral. Proficiency Test: Proficiency test measure how well the applicant can do a sample of the work to be performed. A word processing test to given the applicant for a secretarial job is an example of proficiency test. 6) Polygraph Tests: The polygraph, popularly known as the lie detector, is the device that records physical changes in the body as the test subject answer a series of questions. The polygraph records fluctuations in blood pressure, respiration, and perspiration on a moving roll of graph paper. The polygraph operator makes a judgment as to whether the subject response was truthful or deceptive by studying the physiological measurements of paper. 7) Graphology Test: (Handwriting Analysis) involves using an analyst to examine the lines, loops, hooks, strokes, curves, and flourishes in a persons handwriting to assess the person personality, performance, emotional problems and honesty. The use of graphology is dependent on the training and expertise of the person doing the analysis. TYPES OF INTERVIEW Organizations use several types of interviews. Some of the following important types of interviews are structures interview, unstructured interview, semi structured interview, stress interview and board/panel interview. 1) Structured Interview: Structured interview also known as pattern interview. An interview conducted according to a predetermined outline. A series of questions develop before interview and ask the same questions from every candidate. 2) Unstructured Interview: Unstructured interview also known as un-pattern interview. An interview conducted with out a predetermined outline. In this method, questions develop during interview and ask the different questions from every candidate. Usually questions based on the candidate qualification, experience, abilities interest, or current affairs. 3) Semi Structured Interview: Semi-structured interview also known as semi-pattern interview. Semi-structured interview is the combination of structured and unstructured interview. Some questions develop before interview and some question develop during interview. Generally this is the most popular method of interview. 4) Stress Interview: Interview method that puts the applicant under pressure to determine whether he or she can work in hassle environment. For example, generally ISSB conduct stress interview to evaluate the actual potential to work in stress environment. 5) Board or Panel Interview: Interview method in which two or more people conduct an interview with one applicant.


Human Resource Management

Prepared By: Ch. Naveed Rabbani

For example, Govt. universities and colleges conduct board/panel interview to determine the knowledge and abilities of the applicants. 8) SOCIALIZING. ORIENTING
Topic: Defining Orientation & Socialization The Socialization Process The Purpose of New Employee Orientation

SOCIALIZATION A process of adoption that takes place as individuals attempt to learn the values and norms of work rules. The Socialization Process:
Pre-arrival Stage Encounter Stage Metamorphosis Stage Productivity Commitment

Turnover Socialization can be conceptualized as a process made up of three stages as 1- Pre-Arrival Stage: 2- Encounter Stage 3- Metamorphosis Stage 1- Pre-Arrival Stage: This first stage encompasses learning the new employees have gained before joining the organization. : 2- Encounter Stage: In the second stage, the new employee's gains clearer understanding of the organizations and confront the possible dichotomy between their organizational expectation and reality. 3- Metamorphosis Stage: The third stage involves lasting change. Here, new employees become fully trained in their job, perform successfully, and fit in with the values and norms of the coworkers. These stages ultimately affect new employee's productivity on the job, their commitment to the organization goals, and decision to remain with the organizations.

ORIENTATION Orientation is a short-term process of introducing employees to their jobs, their manager, the organization s structure and its hierarchy. Orientation Kit: A packet or broachers of written information for new employees which is normally prepared by the HR department. This orientation kit provide a wide variety of material regarding overview of the company, key policies and procedure, compensation, fringe benefits, safety and accident prevention, employees and union relations, physical facilities, economic factors, department function, job duties and responsibilities and much more. Possible Topics for Organizational Orientation Programs
Overview of the Company - Welcome speech - Key managerial staff - Organizational structure - Product and services range - Founder of the organization - Vision or mission statement - Traditions, customs, and norms - Organizations goals & objective Compensation - Over time - Holiday pay - Deduction if any - Advances on pay - Loan or credit terms - Pay rates and ranges - How pay is received Fringe Benefits - Cafeteria - Life Insurance - Medical facility - Accommodation - Transport facility - Retirements plans - Worker compensation - Holiday and vocations - On the job training opportunities Physical Facilities - Parking - First aid - Rest rooms - Restricted areas - Employee entrances - Restricted areas for eating - Food service and cafeteria

Safety & Accident Prevention - Safety precautions - Accident reporting - OSHA requirements - Reporting of hazards - Use of safety equipments - Health and first-aid clinics - Fire prevention and control - Physical exam. requirements - Use of alcohol & drug on the job

Employees& Union Relations - Gambling - Handling of rumors - Grievance procedures - Union contract provision - On-site political activities - Channel of communication - Wearing safety equipments - Termination of employments - Relation with supervision or mangers


Human Resource Management

Prepared By: Ch. Naveed Rabbani

Possible Topics for Departmental Orientation Programs
Overview of the Department - Operational activities - Organization and structure - Goals and current priorities - Relationship with other dep. - Approved entrance and exits - Relationship with senior manger Job Duties & Responsibilities - Performance standards - Extra duty assignments - Detailed explanation of job - Relations with subordinates - Number of daily work hours - Types of assistance available - Relations with senior manager - Discussion of common problems - Overtime need and requirements Key Policies & Procedures - Office timing - Break/rest period - Leave procedures - Cleanliness Standards - Handling Emergencies - Lunch duration and time - Removal of things from dep. - Relations with outside peoples - Eating's, & smoking instruction

Determining Training Need Topic: Defining Training On-the-job-Training Off-the-job-Training Six Sigma Training Employees Development Training Method

EMPLOYEES TRAINING Training is a learning process that involves the acquisition of knowledge, skills, and abilities (KSA) necessary to successfully perform a job. Several reasons exist for an organization to conduct training for its employees. Economic, social, technological, and government changes can make it necessary for employees to update their knowledge, skills and abilities. Planned organizational changes such as introduction of new equipment can make it necessary for employees to update their skills. Performance problem within an organization such as low productivity can make it necessary for employees to update their skills and abilities. Regulatory, contractual, professional, or certification issues can require an employer to provide training for its employees. EMPLOYEE DEVELOPMENT Employee's development programs are designed to help the organization ensure that it has the necessary talent internally for future human resource needs. The focus of employee s development is on a future position within the organization for which the employee requires additional competencies. Employees Development Methods o Job Rotation: Job rotation also known as cross training. Job Rotation involves moving employees to various positions in the organization for a specific time period in an effort to expand their skill, knowledge, and abilities. Job rotation represents an excellent method for broadening an individual exposure to company operations and increasing the individual information, abilities and experience. o Assistant to Positions: Employees are some time given the opportunity to work under a seasoned (experienced) and successful manager in different areas of the organizations. Working as staff assistants, these individuals performs many duties according to the requirements of the manager. In this way employees get exposure to a wide variety of management activities and are groomed for assuming the duties of the next higher level. o Committee Assignment: Committee assignments can provide an opportunity for the employees to share in decision making, and to investigate specific organizational problems. Committee assignment increases the employee's exposures, broadens their understanding, and provides an opportunity to grow and make recommendations under the scrutiny of other committee members. o Simulations Exercise: Training that occurs by actually performing the work. This may include case analysis, experimental exercise, role playing and group decision making. o Lecture Courses and Seminars: Traditional forms of instruction offered an opportunity for individuals to acquire knowledge and develop their conceptual and analytical abilities. For many organizations, they were offered in house lecturer by the organization itself, or through out side resource person. o A growing trend at companies is to provide lecture course and seminars through the use of digital computer technology. For example, the Memphis, chemicals manufacturer use distance learning to train all its employees. With more than 1200 employees located in 80 different countries, the opportunities to


Human Resource Management

Prepared By: Ch. Naveed Rabbani


receive training has been made more cost affective and more learner friendly because of distance learning. Outdoor Training: The primary focus of such training is teaching trainee the importance of working together as a team. Outdoor training typically involves some major emotional and physical challenge. This could be white-water rafting, mountain climbing, ball games, or surviving a week in the jungle. The purpose of such training is to see how employees react to the difficulties that nature presents to them. Do they face these dangers alone? Do they freak? Or they controlled and success full in achieving their goals.

TRAINING METHOD 1) Lecture: One of the most common forms of instruction that offer an opportunity for individuals to acquire knowledge and develop their skills and abilities. Lecturers can include other media such as transparencies, slides, videotapes, or computer slides such as power points. For many organizations, they were offered in house lecturer by the organization itself, or through out side resource person. Strength • Cost effective. • Trainer has control over time. • Good if there are more then 20 trainees. • Clear and direct method of presentation. • Material can be provided to trainees in advance to help in their preparation. Weaknesses • Sometimes it's not effective. • Requires a high level of speaking ability. • Since there is no discussion, it is easy to forget. • Requires a high level of quick understanding by trainees. 2) Group Discussion: A lecture by the instructor with a lot of participation with questioning and answering session from the listeners. Strength • More ideas can be generated. • Each participants has an opportunities to present own idea. Weaknesses • Sometime discussion get away form the subject. • Sometimes one strong individual can dominate others. • Some instructors don t know how to guide the discussion. 3) Role Playing: A training method in which trainer create a realistic situation and having trainees assume parts of specific personalities in the situations. There actions are based on the role assigned to them. Role playing emphasis is not on problem solving but on skill development. Strength • Trainee receive feedback that gives them confidence. • Role playing enhance interpersonal skills of the trainees • Role playing teaches individual how to act in real situations. Weaknesses • Trainees are not actors. • Trainees sometimes are not serious. • Some situation can't not implemented in role playing • Uncontrolled role playing may not lead to any desirable results. 4) Case Study: The effective way of training where instructor issued a written narrative description of a real situation that a manager faced in a particular organization. Trainees are required to propose a suitable solution or make an appropriate decision for this critical situation describe in case study. Strength • Cases can be very interesting and may increase employs interest. • Develop trainee's ability to make proper decisions in real life situations.


Human Resource Management

Prepared By: Ch. Naveed Rabbani

• Develop trainee's abilities in effective communication and active participating. • Develop trainee's abilities to figure out various factors that influence their decision building. Weaknesses • A slow method of training. • Trainees may frustrate, especially if they fail to solve the situations. • Often difficult to select the appropriate case for the specific training situations. • Require a high level of skills by both trainees and trainer otherwise discussion can become boring. 5) Adventure Training: Adventure training typically involves some major emotional and physical challenge. Several managers meet out of the workplace and live in cabins or tents for several days. They test their survival skills and learn about their own potential like creativity, corporation confidence, and strength, etc. Strength • People learn their limits and capabilities • Adventure training creates interest of the employees and enhances their own potential • The primary focus of adventure training is to teaching the importance of working together as a team. Weaknesses • Takes a along time. • May not be transferable. • Very costly method of training 6) Vestibule Training: Setting up a training area very similar to the work area in equipment, procedure, and environment but separated from the actual one so trainees can learn without affecting the production schedule. Strength • Fast way to train employees • Employees can get the more practical knowledge, skills and abilities from this method Weaknesses • Very expensive method of training • Required a very professional resource person to arraign artificial organizations setup as required 7) Apprenticeship Training: In Apprenticeship program, trainee works under guidance of skilled instructor and receive lower pay than licensed workers. Apprenticeship Training provides comprehensive training to workers in the practical and theoretical aspects of work required in a highly skilled occupation. Apprenticeship programs combine on-the-job and class room training. Apprenticeship programs prepare workers for more than 800 skilled occupations such as software engineer, hardware engineer, laboratory technicians, X-ray technician, radio electrician, carpenter, airplane mechanic, automobile mechanic ,construction, manufacturing trade, electronic engineering, medical and health care, and public administration. The duration of apprenticeship varies by occupations and is determined by standard adopted by the industry. Strength: • Trainees get exposure to both the organization and the job • Develop special skill like construction, manufacturing, medical, mechanical, and electronic field. Weaknesses: • It takes a very long time • Requires instructor time to ensure the trainees is going in the right directions 8) Classroom Training: Classroom training is the most familiar training method. It is useful for teaching factual, material, concepts, principles and theories. Portions of orientations programs, some aspects of apprenticeship training, and safety programs are usually presented through the form of classroom instructions. Strength • Cost effective training method. • Clear and direct method of presentation. • Material can be provided to trainees in advance to help in their preparation. Weaknesses


Human Resource Management

Prepared By: Ch. Naveed Rabbani

• • •

Sometimes it's not effective. Requires a high level of speaking ability. Requires a high level of quick understanding by trainees.

9) Virtual Training: Internet technology has advanced rapidly and as a result the training of employees in changing. In some companies, employee training has moved from the classroom to the internet. A virtual classroom is an online teaching and learning environment that integrates chat rooms, desktop video conferencing, websites, and e-mail distribution into a typical lecture-based system. Strength: • It's too much cost effective training method. • Deliver online lecture into wide range of different location even country through video conferencing. Weaknesses • May some interruption held during online process. (net problem, electricity failure, virus problem) • Must be familiar some thing about computer, internet, chatting, e-mail process or video conferencing. 10) Simulations Exercise: Training that occurs by actually performing the work. This may include case analysis, experimental exercise, role playing and group decision making. Strength • Peoples learn their limits and capabilities • Helps evaluate and correct trainees' behavior • Develops practical experience for the trainees. • Helps in translating knowledge and applying thoughts Weaknesses • It is very costly method • Some individuals many not takes it seriously • Often it is difficult to evaluate the results of each individuals or group performance TRAINING APPROACH On-the-job Training: OJT is normally given by a senior manager and held on workplace. The employee is shown how to perform the job and allowed to do it under the trainer's supervisions. On-the-job Training may include: Job Rotations, Apprenticeship Training, Lecture and Seminars, Classroom Training, Virtual Training, Assistant to Position and Committee Assignment Off-the-Job Training: The employee is sent to another location outside the business to learn a skill or acquire important knowledge. Off-the-job training may include: Class Room Training, Vestibule Training, Role Playing, Adventure Training, Simulation Exercise, Outdoor Training, and Employee Counseling Advantages: Off-the-Job Training Disadvantages: Off-the-Job Training
-- It can be less stressful -- Training can be more concentrated -- It is more suitable for theoretical instruction -- Specialist can be used to instruct the employees -- Its interesting and may increase employs interest -- It can be artificial -- It is usually more expensive -- Employees can't work whilst they are being trained -- There may be no direct link between training & job -- Trainer may not know the specific condition of employment

Topic: Organizational development OD process OD Techniques

Org. Development Organizational Development: Change Agent: Specialists with the behavioral science skills to guide organizational change The Organizational Development Process: Step 1: Problem recognition: Step 2: Entry of Change Agent: Step 3: Data Collection and Problem Diagnosis: Step 4: Development of the Plan for Change: Step 5: Change Implementation: Step 6: Stabilization and institutionalization:


Human Resource Management
Step 7:

Prepared By: Ch. Naveed Rabbani

Feedback and Evaluation: OD Techniques: After diagnosing the organization s problems and setting goals for the organization, change agents can use one or more OD techniques. Some OD techniques focus on individuals, and some on groups. There are six commonly used OD techniques. 1- Survey Feedback 2- Training 3- Coaching and Counseling 4- Team Building 5- Third Party Intervention 6- Process Consultation Evaluating Training and Development Effectiveness Post Training Performance Method Pre-Post Training Performance Method International Training & Development Issues Language Training Training in Local Culture Overseas Assignments Development Program 11) EMPLOYEES SEPARATION AND RETENTION

Separation: If the first function of personnel management is to secure the employees, it is logical that last should be the separation and return of that person to society. o Lay off: A layoff, as opposed to a termination, assumes it is likely that the employees will be recalled at some later date. o Retirements: One individual who has completed approximately 25 years job or his or her age is 60, and then organizations consider retiring these employees. o Early Retirement: Early retirement means retirement offer before 25 year of service and before his or her age is 60.years. Early retirement programs often offer thought Gold Shake Hand and offer some benefits and incentives to the employees. o Downsizing: Downsizing is planned elimination of large number of personnel form the organizations. o Out Placement: A lateral move to a different job of similar pay and responsibility within the organization. o Discharge or Dismissal: The Most stressful and distasteful method of separation is discharge or dismissal that result in the termi0nation of an employee from the organization. Dismissal should be used only for the most serious violation or unsatisfactory performance 11) MANAGING CAREER
Career Development Career Planning Purpose Topic: Defining Career Choice and Preference Career Decision Career Goals Traditional Career Stages Career

Defined Career Career Planning Purpose 1- To diagnose your occupational strengths and weaknesses 2- To develop a career plan based on your strengths and weaknesses 3- To introduce you to commonly used career planning techniques Traditional Career Stages: 1- Exploration 2- Establishment 3- Mid Career 4- Late Career 5- Decline Lecturer 14 Managing Your Career 1-Making Your Career Decision 2- Achieving your career goals


Human Resource Management

Prepared By: Ch. Naveed Rabbani

3- Select Your First Job Judiciously 4- Participate in an Internship 5- Do Good Work 6- Present the Right Image 7- Don t stay too long in your First Job 8- Find a Mentor 9- Support Your Boss 10- Develop a Network 11- Be Punctual Contemporary Issue in Career Development Dual Career Downsizing and Career Individual Responsibility for Career Effective Organizational Career Development Challenging Initial Job Assignments Career Counseling Career Development Workshops Continuing Education and Training Periodic Job Changes Multiple Career tracks Professional Association Mentor-Protégé relationship Supportive Environment Four Categories of Job Activities Things Data People Idea Chapter 10 12) PERFORMANCE MANAGEMENT SYSTEM
Topic: Defining Performance Appraisal That Can Distort Appraisal Purpose of Appraisal Appraisals Process Appraisal Methods Factor

PERFORMANCE APPRAISAL The process of evaluating employee s performance and providing feedback. Appraisals can improve performance and provide a basis for promotion, transfer, demotion, and termination. Purpose of Performance Appraisal: The purposes of performance appraisal are of three kind: strategic, administrative and development. Strategic Purpose: Performance Appraisal system should link employee activities with the organizations goals. Strategic purpose of performance appraisal is determining the employee's potential toward achieving organization goals or objective. Administrative Purpose: Organizations use performance appraisal tools for many administrative decision such as salary administration (pat raises) promotions, terminations, layoffs, and recognition of individual performance. Development Purpose: A third purpose of performance appraisal is to develop employee's skills and abilities toward achieving organization goals. Performance appraisal process often printouts the employee weakness or deficiencies. After evaluating the employee's weakness or deficiencies, organizations can arrange adequate training programs for overcome these deficiencies. Performance Appraisal Process 1- Establish Performance Standards with Employees


Human Resource Management

Prepared By: Ch. Naveed Rabbani

2- Mutually Set Measurable Goals 3- Measure Actual Performance 4- Compare Actual Performance with Standards 5- Discuss the Appraisal with the employees 6- It Necessary, initial corrective action Performance Appraisal Methods 1) Essay Appraisal: Essay appraisal is the simplest method of appraisal whereby an appraiser writes a narrative describing an employee's strength, weakness, past performance, potential and suggestion for improvement. 2) Absolute Standard: A performance appraisal method that measuring an employee's performance against some established standards. Work Standard Approach: Method of performance appraisal that involves setting a standard or an expected level of output and then comparing each employee's performance to the standard. 3) Checklist Appraisal: A performance appraisal method in which a rater check off those behavior that apply to the employee. Sample checklist for appraising customer service representative Yes 1. Are supervisor orders usually followed? -------------2. Does the individual approach customer promptly? -------------3. Does the individual lose his or her temper in public? -------------4. Does the individual volunteer to help other employees? -------------5. Does the individual keep busy when not servicing a customer? -------------attributes or No -------------------------------------------------------------

4) Adjective Rating Scales: (Graphic Rating Scale) Adjective Rating Scales also known as Graphic Rating Scale. Adjective Rating Scales is one of the oldest and most popular methods of appraisal that lists a number of traits and range of performance for each. Rating scale can be used to assess factors such as quality of work, job knowledge, cooperation, loyalty, dependability, attendance, honesty, attitude and initiative. To use the adjective rating scale, the assessor goes down the list of factors and notes the point along the scale that best describe the employee. In the design of the rating scale, the challenge is to ensure that both the factors evaluated and the scale points are clearly understood and unambiguous to the rater. Sample of Adjective Rating Scale or Graphic Rating Scale
Performance Factor Quality of Work Attendance Performance Rating Consistently Unsatisfactory Consistently Unsatisfactory Consistently Unsatisfactory Occasionally Unsatisfactory Occasionally Unsatisfactory Occasionally Unsatisfactory Consistently Satisfactory Consistently Satisfactory Consistently Satisfactory Sometimes Superior Sometimes Superior Sometimes Superior Consistently Superior Consistently Superior Consistently Superior


5) Behaviorally Anchored Rating Scale (BARS): BARS method of performance appraisal is designed to assess behaviors required to successfully perform a job. Rating performance using BARS requires the rater to read the list of anchors on each scale to find the group of anchors that best describe the employee's job behavior during the period being reviewed. BARSs are normally developed a series of meeting that both manager and job incumbents attend. Three steps are usually followed -- Manager and job incumbents identify the relevant job dimensions for the job -- Manager Job incumbents write behavioral anchor for each job dimensions. -- Managers and job incumbents reach a consensus concerning the scale values to be used and grouping of anchors statements for each scale value.


Human Resource Management

Prepared By: Ch. Naveed Rabbani

5) Forced Choice Method: Forced choice appraisal is the special types of checklist where the rater must choose between two or more statements. Each statement may favorable or unfavorable. For instance, students evaluating their teacher might have to choose between 1. Deliver lecturer with confidence 2. Keeps interest and attention of the class. 3. Keeps up with the schedule identified in the syllabus. 4. Encourage students to share their own ideas or concept. 5. Demonstrates how concept are practically applied in today's organizations. Ranking Method: Methods of performance appraisal in which the performance of an employee is ranked relative to the performance of others. Three of the most commonly used ranking methods are alternation, paired comparison, and forced distribution. Alternation Ranking: The alternation ranking method lists the names of the employees to be rated on the left side of a sheet of paper. The rater chooses the most valuable employees on the list, crosses that name off the left hand list, and puts it at the top of the columns on the right hand side of the paper. The rater repeats this process for all of the names on the left-hand side of the paper. The resulting list of names in the righthand column gives a ranking of the employees from most to least valuable. Individual Ranking: The individual ranking method requires the evaluator to list the employees in order form highest to lowest. Paired Comparison Ranking: Suppose a rater is to evaluate six employees. The names of these employees are listed on the left side of a sheet of paper. The evaluator then compares the first employee with the second employee on a chosen performance criterion, such as quality of work, If evaluator believes that the first employees has produced more work than the second employee, a check mark is placed by the first employee name. The rater then compares the first employee to the third fourth, fifth, and sixth employee on the same performance criterion, placing a check mark by the name of the employees who produced the most work in each paired comparison. The process is repeated until each employee has been compared to every other employee. The employee with the most check marks is considered to be best performer. Force Distribution. 7) Management by Objectives: MBO is the most popular performance appraisal method that includes mutual objectives setting and evaluation base on the attainment of the specific objectives. 8) 360-Degree Appraisal: 360 degree appraisal also known as multi-rater assessment. Performance appraisal method in which colleagues, managers, peers, customers and suppliers evaluate performance of the individual through the prescribed questionnaire. Potential Errors in Performance Appraisals (Factor that Can Distort Appraisals) Several common errors have been identified in performance appraisal.
Halo Error
Central Tendency

Inflationary Pressures Recency Error

Distortions Similarity Error

Leniency Error

1- Halo Error: Halo error occurs when a rater allows a single prominent characteristic of an employee to influence his or her judgment on each separate item in the performance appraisal. *If rater likes the punctuality, hardworking, obedience, or any other traits of the employees may affect the appraisal process. 2- Recency Error: Regency error occurs when evaluations are based on work performed most recently, usually one or two months prior to evaluations. *If any one who consistently performs well throughout the year but unfortunately can't perform recently due to some reason is effected due to recency evaluation. In the same wan any some one don't perform throughout the year and recently perform well can get advantage.


Human Resource Management

Prepared By: Ch. Naveed Rabbani

3- Leniency Error: Every evaluator has his or her own value system that acts as a standard against which appraisals are made. Relative to the true or actual performance an individual exhibits, some evaluators mark high, while others mark low. If all individuals in an organizations were appraises by the same persons, there would be no problem. The difficulty arises when different raters make a judgment. 4- Similarity Error: Evaluating employees based on the way an evaluator perceives himself or herself. When evaluators rate other people in the same way the evaluators perceive themselves they are making a similarity error. *The evaluator who perceives himself as aggressive may evaluate others by looking for aggressiveness. In the same way if evaluator perceives himself as polite and soft may evaluate others by looking for politely. 5- Central Tendency: The tendency of a rater to give average ratings. It is possible that regardless of who the appraiser evaluates and what traits are used, the pattern of evaluations remain the same. *If a manger rates all employees as 3, on a scale of 1 to 5, this is central tendency. 13) THE ORGANIZATIONAL REWARDS SYSTEM Rewards: Rewards may define as benefits or incentives that provide to employees for recognize or appreciate their performance. (Rabbani) Benefits: Rewards employees receive as a result of their employment and position with the organization like life insurance, paid vocation, retirement pension Incentives: Rewards offered in addition to the base wage or salary and usually related to performance like bonuses, commissions, piece work plan, or profit sharing. Types of Rewards There are several ways to classify rewards. We have selected three of the most authentic classification like o Intrinsic versus extrinsic rewards o Financial versus non-financial rewards o Performance based versus membership based rewards Intrinsic Versus Extrinsic Rewards Intrinsic Rewards: Intrinsic rewards are the personal satisfaction that one receives from the job itself such as feeling of accomplishment, feeling of honors or being a part of work team. Extrinsic Rewards: Extrinsic rewards include money, promotion and benefits that one receives from the employer on the bases of performance and membership. Consequently, if an employee experience feeling of achievement or personal growth from a job, we would label such rewards as intrinsic. If the employee receives increment in salary, promotion, or bonuses, we would label these rewards as extrinsic. Non-Financial Versus Financial Rewards Non-financial Rewards: Non-financial rewards emphasize making life on the job more attractive. These includes business cards, impressive title, office furnishing, preferred work hour, preferred work assignment, and assigned parking space. Example: Some employees are very status conscious. A plush office, a carpeted floor, a larger solid wood desk, that stimulates employees toward top performance. Similarly status oriented employees may value an impressive job title, their own business cards, their own administrative assistant, or well located parking with their name clearly painted underneath the reserved sign. In another case, the employee may value the opportunity to dress casually while at work, or even do a portion of one's job at home. Financial Rewards: Financial reward cover performance based and membership base rewards. Financial rewards enhance the employee financial position through bonuses, profit sharing, commission, retirement plans, paid vacation, paid sick leave and purchase discount. Performance Based Versus Membership Based Rewards Performance-Based Rewards: Rewards offered in addition to the base wage or salary and usually related to performance like bonuses, commissions, or piece work plan. Membership-Based Rewards: Rewards employees receive as a result of their employment and position with the organization like protection program, purchase discount, paid vocation, and retirement pension.


Human Resource Management

Prepared By: Ch. Naveed Rabbani


Intrinsic Rewards

Extrinsic Rewards

-- Job Enrichment -- More Responsibility -- Greater Job Freedom -- More Interesting Work -- Participation in Decision Making -- Opportunities for Personal Growth

Financial Rewards

Non-financial Rewards

Performance-based Rewards -- Piecework -- Commission -- Merit Pay Plan -- Performance Bonuses

Membership-based Rewards -- Perks -- Profit Sharing -- Golden Parachute -- Purchase Discount -- Protection Program
-- Cost of Living increases -- Pay for time not worked

-- Own Secretary -- Business Cards -- Impressive Title -- Office Furnishing -- Preferred Work Hour -- Preferred Lunch Hour -- Preferred Work Assignment -- Assigned Parking Space

14) COMPENSATION ADMINISTRATION Compensation Administration: the process of managing a company's compensation program. The goals of compensation administration are design a cost-effective pay structure that will attract, motivate, and retain competent employees. It should be attractive and fair by employees. Fairness means a wage or salary that is adequate for the demands and requirement of the job. Compensation: Compensation defined as the adequate remuneration of personnel for their contribution to organizations. The direct wages, benefits, and incentives (such as bonuses) given to employees in exchange for their work. If compensation levels are too low, an organization will have trouble to attracting qualified or potential candidates. Government influence on compensation administration Government policies set minimum wages and benefits that employers must meet, and these policies provide protection to employees. Fair Labor Standard Act (FLSA passed in 1938) FLSA contained several provisions that affected organization and their compensation systems. These include issues surrounding minimum wage, overtime pay, maximum working hour and child labor restrictions. This act also identified two primary categories of employees like exempt and nonexempt. Exempt employees would include professional and managerial jobs. Under this act, job categories as exempt are not required to meet FALSA standard, especially in the area of overtime pay. On the other hand, nonexempt employees receive certain protection under the FLSA standard, especially in the area minimum wage and overtime pay. The Civil Rights & Equal Pay Act (passed in 1963) Equal pay act requires equal pay for equal work without any discrimination of gender, religion or race. Equal pay act requires employers to eliminate pay differences for the same job. Salaries should be established based on skill, responsibility, effort, and working condition. For example, if an organization is hiring customer service officer, new employees, irrespective of their sex, must be paid the same initial salary because attributes for the job are the same. It's important to note that the equal pay act typically affect only initial job salary. If two workers, male and female perform the same job during the year but one's performance is outstanding than others. In the case, salary may be different, although they performing the same job.


Human Resource Management

Prepared By: Ch. Naveed Rabbani

Job Evaluation and the Pay Structure Job Evaluation: Job evaluation is a systematic process of determining the worth of each job in hierarchy of the organization. Job Evaluation Method: Three basic method of job evaluation are currently in use: ordering, classification, and the point method. Let's review each of these. o Ordering Method: Ordering method also known as ranking method. The ordering method requires a committee composed of both management and employee representatives to arrange jobs in a simple rank order, from highest to lowest. The committee members merely (simply) compare two jobs and judge which one is more important or more difficult to perform. Then they compare another job with the first two and so on until all the jobs have been evaluated and ranked. o Classification Method: Classification method is the process of evaluating jobs based on predetermined job grades. These classifications are created by identifying some classes or grades of jobs. Examples might include shop jobs, clerical jobs, sales jobs, marketing jobs, and account jobs. Once the classifications are established, they are ranked in an overall order of importance according to the criteria chosen and each job is placed in its appropriate classification. o Point Method: Point method present breaks down jobs based on various identifiable criteria such as skill (education, problem solving, and communication skill), effort, and responsibility and allocate points to each of these criteria. Appropriate weights are given, depending on the importance of each criterion to performing the job, points are summed and jobs with similar point's totals are placed in similar pay grades. Establishing the Pay Structure Once the job evaluation is complete, the data gathered become the nucleus (basis) of the organizations pay structure. Job evaluation methods can provide the necessary input for developing the organization overall pay structure. Pay Structure Components • Compensation Surveys: Many organization use surveys to gather factual information on pay practices within specific communities and among firms in their industry. This information is used for comparison purpose • The wage Structure-Pay Scale: A pay scale showing ranges of pay within each scale. • The wage Structure-Pay Grade: A pay scale showing ranges of pay within each grade. Organizations design their wage structure with ranges in each grade to reflect different tenure in position, as well as levels of performance. Special Cases of Compensation Individual Incentives: Individual incentives plans typically base on individual performance. Popular individual plans include merit pay, commissions, bonuses, and piecework plans. • Merit Pay: One popular and almost universally used incentive system is merit pay. Under a merit pay plan, employee receives increment in their salary, usually given on an annual basis. Those employees who perform better generally receive more merit pay. • Commission: Sales people frequently work on a commission base. They get an amount that represents a percentage of the sales volume. • Piecework Plan: A compensation plan whereby employees are typically paid for the number of units they actually produce. Differential piece rate plans establish two rates like one is as per standard and another when the employee exceeds the standard. The later rate, of course, is higher to encourage the employee to beet the standard. For example: Banks offer differential piece rate plan for credit card, car financing or personal loan department. Group Incentives: Group incentives make the most sense where employee's tasks are interdependence and thus require cooperation. Popular group incentives include plant-wide incentives, improshare, scanlon plan, and gain sharing. • Plant-wide Incentives: An incentives system that rewards all members of the unit based on how well the entire group performed. The goals of plant wide incentives is to direct the effort of all employees toward chieving overall organizational effectiveness.


Human Resource Management

Prepared By: Ch. Naveed Rabbani

Improshare: A special types of incentive plan using a special mathematical formula for determining employee bonuses. Example: If workers can save labor costs in producing a product, a predetermined portion of labor saving will go to the employee. Where IMPROSHAREW exist, productivity gains up to 18 percent have been identified. Scanlon Plan: An organization incentive program that focus on cooperation between management and employees through sharing problem, goals, and ideas. Under Scanlon plan, each department in the organization has a committee composed of supervisor and employee representatives. Suggestions for cost saving improvements are deposited to the committee, and, if accepted, cost savings and productivity gains are shared by all employees, not just the individual who made the suggestions. Gain Sharing: Different companies know gain sharing by different names, such as profit sharing, performance sharing or productivity incentives. These programs refer to incentives plans that involve employees in a common effort to improve organizational performance and then reward employees immediately when their performance improves. Gain sharing is based on the concept that employees and the company share the resulting incremental economic gain.

Executives Compensation Executives are frequently offered a smorgasbord or perquisites not offered to other employee. The logic of offering these perks, from the organizations perspective is to attract and keep good managers and to motivate them to work hard in the organizations interest. • Perquisites (Perks): Perks are attractive benefits, over and above a regular salary, granted to executives. Popular perks include the payment of life insurance premiums, club membership, company automobiles, supplemental disability insurance, supplemental retirement accounts, mortgage assistance, offer business class ticket in case of traveling; and five star hotel accommodations is case of stay another city or country. • Golden Parachute: A protection plan for executives in the event that they are served from the organizations. International Compensation Probably one of the most complex functions of international human resource management is the design and implementation of an equitable compensation program. The first step in designing an international compensation package is to determine if there will be one policy applying to all employees or whether parent country nationals (PCNs), host-country nationals (Hans) and third country nationals (TCNs) will be treated differently. Generally PCNs and HCNs are commonly treated separately. • Base Pay: Generally this is equal to the pay of employees in comparable jobs at home, but the ranges of pay scales in most countries are different. Thus, where a middle manager in a U.S. factory might earn $ 75,000 a year, the same manager in Germany might earn $ 110,000. In addition, to consideration of fairness among oversees employee, foreign countries and laws must be considered. • Incentives: Not all employees are willing to be separated for long periods of time from family, friends, and the comfort of home support system. Special incentives plans offer to such individual who perform their duties in different country rather than home country. Some special incentives includes luxuries residence, company maintained car, medical coverage, travel insurance, life insurance, club membership, paid holidays or other special salary bonus. • Assistance Programs: As with any relocation, the overseas transfer requires a lot of expenditures for the employee's family. Some of the assistance programs commonly offered by multinational corporations include: household goods shipping and storage, major appliances, legal clearance for their goods and their shipment, home protection, automobile protection, temporary living expenses, travel expenses, annual home leaves, special emergency return leaves, educational allowances for children, club membership and security including electronic system and bodyguards. Clearly the design of a compensation system for employee serving overseas is complex and requires enormous administrative expertise, particularly when an organization has expatriate in 40 or 50 different countries.


Human Resource Management

Prepared By: Ch. Naveed Rabbani

15) EMPLOYEE BENEFITS Defined Employee Benefits: When an organization is designing its overall compensation program, one of the critical areas of concern is what benefits should be provided. Today's workers expect more than just on hourly wages or salary from their employer; they want additional considerations that will enrich their lives. These considerations in an employment setting are called employee benefits. Employee Benefits: Employee benefits sometimes called fringe benefits. Employee benefits are those rewards that employees receive for being members of the organization and their positions in the organizations. Major Categories of Potential Employee Benefits: Some are the following major categories of potential employee benefits are given below.
Potential Employees Benefits

Legally Required Benefits

Retirement Related Benefits

Insurance Related Benefits

Payment for not time worked

Other Benefits

-- Social Security -- Unemployment Compensation -- Worker Compensation -- State Disability Insurance

-- Pension Fund -- Annuity Plan -- Early Retirement -- Old Age Benefits -- Disability Retirement -- Retirement Gratuity

-- Life Insurance -- Travel Insurance -- Medical Insurance -- Accident Insurance -- Disability Insurance -- Dental Insurance -- Survivor Benefits

-- Vacation -- Holidays -- Sick Lives -- Election Day -- Paid rest Times -- Military Leaves -- Travel Time -- Lunch Periods -- Wash up Times

-- Company Discount -- Company Car -- Legal Services -- Financial Counseling -- Recreation Facilities -- Company Dinner Facility -- Company Lunch Facility -- Company Residence

Legally Required Benefits: Organization must provide certain benefits to their employees regardless of whether they want to or not, and they must be provided in a nondiscriminatory manner. 1- Social Security: 2- Unemployment Compensation: Organizations are legally bound to compensate employee till the contractual period is over. In case of dismissal, company must be compensating their due of remaining period of contract. For example, organization appointed individual as account officer for the period of two year. After some year organization policies have been changed and they are willing to terminate the services of such contractual employee. In this case they are legally bound to pay the one year remain dues to employee. State Unemployment Compensation Commission: state unemployment compensation laws provide benefits to employees who meet the following conditions. -- They are without a job


Human Resource Management

Prepared By: Ch. Naveed Rabbani

-- The have worked minimum number of weeks. They can submit an application for unemployment compensation to their State Employment Agency, register for available work, and are willing to accept any suitable employment offered through their State Unemployment Compensation Commission. The promise behind unemployment compensation is to provide an income to individuals who have lost a job through no fault of their own (e.g., layoffs, plant closing) 3- Worker Compensation: Employee insurance that provides income continuation if a worker is injured on the job. 4- Family & Medical Leave act Voluntary Benefits The voluntary benefits offered by an organization are limited only by management creativity and budget. Health Insurance: All individuals have health care needs that must be met, and most organization today offer some type of health insurance coverage to their employee. This coverage has become one of the most important benefits for employee because of the tremendous increases in the cost of healthcare. In fact, health care costs in Pak businesses more than 100 million annually and the cost continue to rise. With out health insurance, almost any family finance could be depleted at any time if they had to pay for a major illness. The purpose of health insurance is to protect the employee and his or her immediate family from the catastrophes (tragedy, disaster) of a major illness and to minimize their out-of-pocket expenses for medical care. Traditional Health Insurance Blue Cross: Blue Shield Retirement Benefits Employment Retirement Income Security Act (ERISA) of 1974 designed to protect employee retirement Benefits. Pension Plan Profit-Sharing Plan Paid Time Off Vacation and Holiday Leave Disability Insurance Programs Survivor Benefits Group Term Life Insurance Travel Insurance 16) HEALTH & SAFETY
Topic: Job Safety Program Health Job Health Program Marinating a Healthy Work Environment International Safety and

Organization officials have legal responsibilities to ensure that the workplace is free from unnecessary hazards to employee's physical or mental health. There are approximately 6,000 reported work related death and nearly more than 5 million injuries and illnesses each year in the United states, resulting in over 90 million days lost of productivity time , costing US companies more than $110 billon annually. The Occupational Safety and Health Act OSHA set standards to ensure safe and healthful working conditions and provided stiff penalties for violators National Institute for Occupational Safety and Health (NIOSH): NIOSH is the government agency that researches and sets OSHA standards. OSHA Enforcement Priorities: Typically OSHA enforce the standards based of five priorities as following 1) Imminent Danger: A condition where an accident is about to occur For example, suppose you were withdrawing cash at an ATM. As you remove your cash, you are grabbed by an individual who places a gun in your face and angrily demand your cash. Are you in imminent danger? Of course, most of us would say, absolutely. State bank strictly recommend to the commercial bank to install security camera in their ATM cabins for the purpose of minimizing the imminent danger. 2) Random inspections


Human Resource Management

Prepared By: Ch. Naveed Rabbani

3) Current employee's complaints 4) Inspection of target industries with high injury ratio 5) Serious accidents that have occurred within the past 48 hours Causes of Accidents: The cause of an accident can be generally classified as either human or environments: Human Causes are directly related to human error or mistakes brought by carelessness, daydreaming, and inability to do jobs or other human deficiency. Environmental Causes are related to work place and include the natural disasters or sudden technical fault in tool, equipment, physical plants and general environment. Accident Prevention Mechanisms • Education: Organization must develop safety awareness by posting highly visible signs and safety slogans, and placing articles on accidents preventions. • Skills Training: Organization should provide adequate training before appointment on dangerous equipment. • Engineering: Engineering prevents accidents through both the design of the equipment and design of the jobs themselves. This may include eliminating those factors that promote fatigue, boredom, and daydreaming. *For example most risky work should be done on day lighting • Protection provides protection equipment where necessary. This may include safety shoes, gloves, hard hats, safety glasses, and noise mufflers. Protection also includes performing preventative maintenance on machinery or install safety alarm. • Regulation Enforcement: The best safety rules and regulation will be ineffective in reducing accidents if they are not enforced. Additionally, if such rules are not enforced, the employer may be liable for any injuries that occur. Why is health and safety important? Health and safety are important for several reasons o Basic Need or requirements: Employees should as human beings be protected from needless pain and suffering. o Cost: Accidents, illness, and other causes of employee's absence impaired performance and cost the employer money. o Legal Obligation: Employers and employees both have legal obligation to take reasonable measure to promote healthy and safe working. o Corporate Image: A business corporate image may suffer it its health and safety record is bad. This may make it difficult to attract and keep qualified staff. The Cost of Accident and Illness The cost of increase insurance premium. The cost of disruption to operation at work. Productive time lost by the absent of employees due to injury. Possible reduced out put from the employee on return to work. A proportion of the cost of employing first aid and medical staff. Low morale among workers in an unsafe or unhealthy environment. The cost of recruiting and training a replacement from the absent employees. The cost of damage to equipment including subsequent modification to make it safer. The cost of any compensation payments or fines resulting from legal action due to accident What So Dangerions about an Office o Heavy item which you may have to lift. o Poor reengineering design of chair or other equipment. o Obstacles such s box, files, books or open desk drawers. o A cup of coffee or other liquid placed where they might slip. o Slippery or uneven floor, frayed carpet or trailing cables and wires. o Sitting with poor posture, creating mental and physical strain or stress. o Object placed too high to reach, so you are temped to stand on a chair. o Electrical or other equipment which you are not really sure how to use properly. o Chemicals such as glue, solvent or insect repellent which require special handling or ventilation.


Human Resource Management

Prepared By: Ch. Naveed Rabbani

Who's responsible for health, safety, and security in your workplace? • Security guard. • A fire prevention officer. • A first aid or medical officer. • An employee counselor or health promotion officer. • A building manger, equipment manger and others who has responsibility for different aspects of the work environment. What is Your Own Responsibility? o Inform appropriate people of identified hazard. o Be alert to potential hazard as you go about you work. o Corporate with your employer's health and safety measure: read instruction, follow procedure. o Take responsibility for your own behavior in the workplace in order to protect yourself and others. o Keep your self informed about health and safety issue relevant to your workplace. You may need regular training. 17) EMPLOYEES RELATION Union: A union is an organizations of workers, acting collectively, seeking to promote and protects its mutual interest through collective bargaining. Why Do Employees Join Unions? Some of the following reasons may important for workers to join unions. • Higher Wages and Benefits: There are power and strength in numbers. As a result, unions sometimes are able to obtain higher wages and benefits packages for their members. One or two employees walking off the job over a wage dispute is minor affect to the businesses, but hundred of workers going out strike can even close down the company. • Greater Job Security: Unions provide their members with a sense of independence form managements power to arbitrarily hire, promote, or fire. • Influence Work Rules: Where a union exists, workers have opportunity to participate in determining the conditions under which they work. They can protest unfair rules and regulation, policies and work rules through a collective bargaining process. Collective bargaining is the key element of union management Collective Bargaining: The term collective bargaining typically refers to the negotiations, administrations and interpretation of a written agreement between two parties (generally union representative and organizations official) that cover a specific period of time. The Objective of Collective Bargaining: The objective of collective bargaining is to agree on an acceptable contact among the management, union representatives and union membership. These contacts define the term and conditions of employments and limits the management authority. The Collective Bargaining Process The collective bargaining contain a simple model of how the process flows in the private and public sector which include preparation for negotiation, actual negations, make agreement, union ratification (approval), and contract administration
The Collective Bargaining Process
Preparation for Negotiations Actual Negotiations Make Agreement Union Ratification Contract Administration


Human Resource Management

Prepared By: Ch. Naveed Rabbani

Preparation for Negotiation: Once a union has been certified as the bargaining unit, both union and management begin the ongoing activity of preparing for negotiations. We refer to this as an ongoing activity because ideally it should begin as soon as the previous contract is agreed upon or union certification is achieved. Realistically, it probably begins anywhere from one to six months before the current contract expires. Actual Negations Make Agreement Union Ratification: Contract Administration: Once a contract is agreed upon and ratified (approve), it must be administered. Contract administration involves four stages like -- Dissemination the agreements to all union members and mangers -- Implementing the contract -- Interpreting the contract and grievance resolutions -- Monitoring activities during the contract period.



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