Professional Documents
Culture Documents
plans to according to
accomplish predetermine
Outputs
Goods and services
needed by the
organization customers
Feedback of significant deviations from planned performance
(Managerial Functions)
Fig: 2
Operative Functions:
The operative functions of human Resource Management are related to specific
activities of personnel management e.g. employment, development, compensation &
Relations. All these functions are interacted by managerial functions.
Employment: Employment is concerned with securing and employing the people
possessing required kind and level of human resources necessary to achieve the
organizational objectives. It covers the functions such as job analysis, human resource
planning, recruitment, selection, placement, induction and internal mobility.
HRM paves way for development and growth in the organisation. But how? Can
you come out with some answers? By improving the individual capabilities, acquiring
necessary cooperation and developing teamwork HRM makes sure that the organization
develops and grows well. Goals of the organization are met by HRM by effective
motivation and excellent utilization of employees.
4. The concept of Human beings is a very crucial and vital factor of production; HRM is
gaining more and more importance day by day. It also has important implication in
societal development also. IT IS THE HEART AND SOUL OF MODERN
MANAGEMENT.
1.INTERNATIONAL HRM
1) Ethnocentric Policy:
Advantages:
2) Polycentric Policy:
Advantages:
Disadvantages:
3) Geocentric Policy:
Advantages:
The aim of the Human Resources Strategy is to support staff. This it will do by
developing and promoting good HR practice for the recruitment and development of high
quality staff, by effectively managing their performance and by providing appropriate
rewards and flexible opportunities that allow individuals to manage their own
development.
A. Recruitment
B. Selection Process
C. Expatriates
D. Performance Appraisal
E. Training and Development
F. Compensation
Sources of Recruitment -
1) Walk-In -: The busy global organizations and the rapid changing companies do not
find time to perform various functions of recruitment. Therefore they advise the
candidates to attend for an interview directly and without a prior application on a
specified date, time and at a specified place.
2) Consult-In -: The busy and dynamic global companies encourage the potential job
seekers to approach them personally and consult them regarding the jobs. The
international companies select the suitable candidates from among such candidates
though the selection process.
3) Head-Hunting -: The global companies request the professional organizations to search
for the best candidates particularly for the senior executive positions. The professional
organizations search for the most suitable candidates and advice the global company
regarding the filling up of the positions.
To be useful, employment test must be valid. Validity requires that the test scores relate
to actual job performance. Hence, the use of tests is not necessarily a simple process.
Whereas a firm may be inclined to use an "off-the-shelf" product, such a test may bear
little resemblance to the job-related tasks a successful applicant might be required to do.
Before using a test, firms should ensure that they are, in fact, valid. Tests must be
validated on those jobs to which tests are being applied and, tests must be validated for
all groups to which tests are being applied.
Not only must employment test be valid, they must also be reliable. That is, employment
tests should yield consistent results. An employment test should give a similar score each
time the person takes the test (tests that rely on luck are not reliable).
Very often, paper and pencil tests are used to test knowledge. A firm could use a paper
and pencil knowledge test to ascertain an applicant's knowledge of computer
programming skills or to test whether or not an applicant understands government
regulations governing an industry. Generally, knowledge tests have good reliability, but
their validity must be tested before they are used.
A keyboarding test, testing an applicant's keyboarding speed and accuracy, is an example
of a manual dexterity or performance test. Performance tests measure the applicant's
ability to perform some part of the job for which applicants are to be hired. Often, there is
an assumption of validity insofar as the test includes a representative sample of the work
the applicant may be required to do. Firms must be cautious not to use tests that might
discriminate against any minority group.
An in-basket exercise, in which administrative activities are simulated and an applicant's
abilities to deal with these activities is evaluated, is one example of a simulation exercise.
Step 3: Selection Interview
Selecting the best candidate for the job is the #1 priority of the selection process. The
employment interview is conducted to learn more about the suitability of people under
consideration for a particular job and is one further obstacle for the applicant to
overcome.
The interview is one further means of reducing the number of people who might be
eligible for the job. The selection interview proceeds in a series of stages. Initially, the
interviewer needs to be prepared. Part of this preparation includes deciding where to hold
the interviews and which type of interview to conduct. Preparation also includes carefully
reading through and making notes on the applicants' application forms and resumes. At
this stage, interviewers should make frequent reference to the job (job description) to
compare the applicant's background with the job's requirements. The preparatory stage
also includes developing a series of job-related questions. During the interview, the
interviewer should have an outline of questions, on which to take notes.
During the interview process itself, initially, the interviewer(s) should ensure the creation
of rapport between interviewer(s) and the interviewee. Next, the two parties can engage
in the exchange of information. Once the interview has been terminated, the
interviewer(s) must set aside some time to evaluate the notes they have taken during the
process.
Personal References
Employment References
• Differ from personal references.
• Discuss the applicant's work history.
• Questionable usefulness
o former employers are unlikely to be candid
• Useful primarily as confirmation of prior employment.
• Frequently omitted entirely from the selection process.
• Fast.
• Cheap.
• Voice inflections or hesitations to blunt questions may be very informative.
• Less than 22% seek negative information.
• Approx. 48% used to verify application information.
Since the immediate supervisor is ultimately responsible for new workers, he or she
should have input into the hiring decision. The supervisor is better able to evaluate the
applicant's technical capabilities and is in a better position to answer the interviewee's
job-related questions. Further, the supervisor's personal commitment to the success of the
new employee is higher if the supervisor has played a role in the hiring decision.
The actual hiring of an applicant constitutes the end of the selection process. At this
stage, successful (as well as unsuccessful) applicants must be notified of the firm's
decision. Since money and effort has been spent on all applicants, the HR department
may wish to consider even the unsuccessful applicants for other openings in the
organization.
The applications of unsuccessful applicants are often kept on file and the applications of
successful applicants will be retained in the employees' personnel files.
No matter what the form of the job offer, the principle is generally the same: do not make
promises or statements that you cannot or do not intend to keep. Such statements can lead
to expensive litigation if it is later decided to terminate the employee.
• Position offered.
• Location of the job.
• Salary (although sometimes salary must be negotiated before the applicant will
accept).
• Benefits.
• Starting date.
• Any papers or information that should be brought on the first day of work.
• A date (or time) by which the applicant must respond to your job offer, so you can
move on to the next candidate if your first choice doesn't accept.
• Benefits.
• Starting date.
• Any papers or information that should be brought on the first day of work.
• A date (or time) by which the applicant must respond to your job offer, so you can
move on to the next candidate if your first choice doesn't accept.
• The interviewing process.
• Did employment tests support or help the hiring decision? If not, maybe the firm
will have not the kinds of test it administering. Further the evaluation process
should help the firm decide if the time and cost involved in the testing is worth it.
EXPATRIATES
Global companies, after selecting the candidates place them on the jobs in various
countries, including the home country of the employee. But, the employees of the global
companies are also placed in foreign countries. Even those employees who are placed
initially in their home countries are sometimes transferred to various foreign countries.
Thus the employees of global companies mostly work and live in foreign countries and
their family members also live in foreign countries.
Training is an act of increasing the knowledge and skill of an employee for doing a
particular job.
Appraisers - The appraisers may be any person who has a thorough knowledge about the
job content, content to appraised, standards of content and the one who observes the
employee while performing a job. Typical Appraisers are:
• Supervisors
• Peers
• Subordinates
• Consultants
• Customers
• Users of Services
1.2.4 COMPENSATION:
Expatriate pay - It is mostly based on the balance sheet approach. Under the balance sheet
approach, the compensation package enables the expatriate employees in various
countries to maintain the same standard of living.
Gratuity - Expatriate employees are paid gratuity at a fixed rate for every year of
completion of services in the foreign country
Allowances - Expatriate employees are paid various allowances like car allowances,
resettlement allowances, housing allowances etc
Taxable - Some countries pay tax-free salary. Most of the countries pay taxable salary
and gratuity
• The plan enables the MNCs to retain efficient employees with them.
• It encourages the employees to improve performance.
• This scheme establishes significance of team effort among employees.
• It increases employee involvement and Participation.
G.FACTORS AFFECTING GLOBAL HRM
Managing human resources in different cultures, economies, and legal systems presents
some challenges. However, when well done, HR management pays dividends. A seven-
year study in Britain of over 100 foreign companies showed that good HR management,
as well as other factors, accounted for more of the variance in profitability and
productivity than did technology, or research and development.
POLITICA
L
LEGAL ECONOMIC
CULTURA
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Fig.2.1
company to ascertain whether the candidate’s specifications are matched with the job
1. Recruitment’s of the job to be filled, have been clearly specified (Job analysis, etc.
2. Employee specifications (physical, mental, social, behavioral, etc.) have been clearly
specified;
3. Candidates for screening have been attracted.
SELECTION PROCEDURE
There is no standard selection process that can be followed by all companies in all the
areas. Companies may follow different selection techniques or methods depending upon
the size of the company, nature of the business, kind and no. Of persons to be employed,
Application Form
Written Examination
Preliminary Interview
Group Discussion
Tests
Final Interview
Medical Examination
Reference Checks
Medical Examination: Certain jobs require certain physical qualities like clear vision,
perfect hearing, unusual stamina, tolerance of hard working conditions, clear tone etc.
Medical examination reveals whether or not a candidate possesses these qualities.
Reference Checks: After completion of the final interview and medical examination,
the personnel department will engage in checking references. Candidates are required
to give the names of reference in their application forms. In case the reference check
is from the previous employer, information for the following areas may be obtained.
They are: job title, job description, period of employment, pay and allowances, gross
emoluments, benefits provided, rate of absence, willingness of the previous employer
to employ the candidate again etc.
Final decision by the line manager concerned: The line manager concerned has to
make the final decision whether to select or reject the candidate after soliciting the
required information through different techniques. A true understanding between the
line managers and personnel mangers should be established to take proper decisions.
Employment: Thus, after taking the final decision the Organisation has to intimate the
decision to the successful as well as unsuccessful candidates. The Organisation sends
the appointment orders to the successful candidates either immediately or after
sometime depending upon the time schedule.
TRAINING
Training is the act of increasing the knowledge and skill of an individual for doing a
particular job. In the present scenario training is increasingly viewed as a means of
fostering the growth of the individual employee but as an integrated part of
organizational growth.
Training is a process of learning a sequence of programmed behavior. It is application of
knowledge. It gives people an awareness of the rules and procedures to guide their
behavior. It attempts to improve their performance on the current job or prepare them for
an intended job. Development is a related process. It covers not only those activities,
which improve job performance, but also those, which bring about growth of the
personality; help individual in the progress towards maturity and actualization of their
potential capacities so that they become not only good employees but better man and
women.
Definition Of Training:
“Training is the act of increasing the knowledge and skills of an employee for doing a
particular job.”
Edwin. B.Flippo
“Training is the organized procedure by which people learn knowledge and \or skill for
definite purpose”.
Dale S.Beach
It is the training that bridges the gap between Job requirements and employees present
specifications. Training is a process by which attitudes, skills and abilities of employees
to perform specific jobs are increased.
Thus, it can be concluded that training is a process that tries to improve skills or add to
the existing level of knowledge so that the employee is better equipped to do his present
job, or to mould him to be fit for a higher job involving higher responsibilities. In other
words, training is a learning experience that seeks a relatively permanent change in an
individual that will improve his/her ability to perform his job.
Distinction between training and development
Training is a short-term process utilizing a systematic and organized procedure by which
non-managerial personnel learn technical knowledge and skills for a definite purpose.
Development is a long-term educational process utilizing a systematic and organised
procedure by which managerial personnel learn conceptual and theoritical knowledge for
general purpose.
Training refers only to instruction in technical and mechanical operations, while
development refers to philosophical and theoretical educational concepts. Training is
designed for non-mangers while development is designed for managerial personnel.
Training and development differs in four ways:
“What” is learned;
“Who” is learning;
“Why” such learning takes place;
“When” learning occurs.
Learning Dimensions Training Development
Who? Non Managerial Personnel Managerial Personnel
What? Technical and Managerial operations Theoretical and Conceptual
ideas
Why? Specific job related General knowledge
When? Short Term Long Term
Objectives Of Training
The primary purpose of training is to establish a sound relationship between the
worker and his job –the optimum man task relationship.
To upgrade skills and prevent obsolescence.
To develop healthy and constructive attitude
To prepare employees for future assignments
The Focus Of Training Is On Three Broad Objectives:
To bring about attitudinal change.
To bring about quality to be the very top of agenda.
To savagely cut waste.
Training is important to develop the employees and make them suitable for the job.
Training constitutes significant part of management control. Benefits of
training to following are:
Organization Level: -
It leads to improve profitability
It improves the job knowledge, skills and morale of the work force
It helps in organizational development and preparation of guidelines for work
It enhances quality of work and appropriate climate for growth
It supports in improving organizational communication
Individual Level: -
It help in encouraging and achieving self development
It provides a sense of growth in learning
It increases job satisfaction and recognition
It helps the individual in effective problem solving
On the job oriented training methods. As the name itself denotes, methods include in
this cluster are those whose main objectives are centered around the job, i.e., learning
on the job itself by a variety of methods. The main methods, which fall into this
category, are discussed here under:
On the job training (OJT). On the job training is probably the most
Common approach to training, which can range from relatively
unsophisticated “observe and copy” method to highly, structured courses. In
this method, the new employee is placed on a job and taught the skills
necessary to perform it a trainer or superior teaches the employee. Since
trainee learns by observing and handling the job this is also termed as
‘observing, and copying’ or ‘learning by doing.’
Job instruction training (JIT). In this method, a trainer or supervisor gives
instruction to an employee how to perform his job. This method of
training is appropriate for acquisition or improvement of motor skills and
routine and repetitive operations.
Coaching: this is similar to the JIT .in this method, the superior teaches or
guides the new employee about the knowledge and skills of a specifically
defined job. The superior points out the mistakes committed by the new
employee and then also gives suggestions to improve upon.
Job rotation: in this method, a trainee moves from one job to another and
from one department to another. This type of training method is more
appropriate for developing multiskilling, operational flexibility, providing
satisfaction from routine jobs and broadening the overall perspective of
the trainee.
Vestibule training: this is a system in which employees learn their jobs on
the equipment they will be using, but the training is conducted away from
the actual work floor. This type of training is commonly used for training
personnel of clerical and semi-skilled grades.
Role-play: this is just like acting out a given role as in stage play. In
this method of training, the trainees are required to enact defined roles
on the basis of oral or written description of particular situation.
Case method: the case is an actual event or situation on organizational
problems, which is a written description for discussion purpose.
Trainees are asked to analyses the event or circumstances with an
objective to identifies problems, trace out the causes for it and find out
the solution to solve the problems.
Management games: the game is devised on the model of business
situation. Then, trainees are divide into groups who represent the
management of competing companies. They make decisions just like
these are made in real life situations. Decisions made by the groups
are evaluated and the likely implications of the decisions are fed back
to the groups.
In basket exercise: this is also called ‘in tray’ method of training. This
is built around the ‘incoming mail’ of manager. The trainees is
presented with a pack of papers and files in tray containing
administrative problems and are asked to take decision on these within
a specified time limit. The decision taken by the trainees are compared
with another. The trainees are provided feedback on their decisions.
Lectures: lecture is by far the most commonly used direct method of
training. In this method the trainer provides knowledge to the trainees
usually from prepared notes. Notes are also given to the trainees. This
method is found more appropriate in simulations where some
information is required to be shared to a large number of audience and
which does not require more participation from audience. It is a low
cost method. The major limitation of this method is that it dose not
provide for active involvement of the trainees.
Conferences/seminars: in this method, the trainer delivers a lecture on
the particular subject, which is followed by queries and discussions.
The conference leader must have the necessary skills to lead the
discussion in a meaningful way without losing sight of the topic or
theme. This method is used to help employees develop problem-
solving skills.
Programmed instructions: this is the recently developed technique
based on the principle of positive reinforcement developed by
B.F.Skinner. This technique is used to teach nonmotor and behavioral
skills. The subject matter to be learned is prepared and condensed into
logical sequence from more complex. The trainer monitors trainee’s
independent progress through the programme. The trainee gets instant
feedback on his learning however; this method is expensive and time
consuming also.
Sensitive training: sensitive training is also known by a Varity of
names such as t-groups, laboratory training and encounter groups.
(The “T” is for training.)The objective of sensitive training is to
increase participants’ insights into their behavior and the behavior of
others by encouraging an open expression of feelings in the trainer
guide T-group.
This approach is useful for understanding people’s behavior particularly when they are
involved in inter personal relationships. Development of positive thinking, improvement
in inter-personal relationships, proper motivation of people and organizational
development are some of the important benefits of transactional analysis as a technique
of training.
Conclusion:
To conclude, each method of training has some strengths and weaknesses. Given the
purpose of a training programme, the level of participants the competence of trainers,
etc., the appropriate method has to be chosen to impart training.