This action might not be possible to undo. Are you sure you want to continue?
We start with defining what you mean by human resources? According to Leon C. Megginson, the term human resources ca be thought of as, “the total knowledge, skill, creative abilities, talent and aptitudes of an organization’s workforce, as well as the value, attitudes and beliefs of the individuals involved” Human resources are also regarded as human factor, human asset, human capital and the like. Nature and Scope of Human Resources in Organization People in any organization manifest themselves, not only through individual sections but also through group interactions. When individuals come to work place, they come with not only technical skills, knowledge etc. But also with their personal feelings, perception, desire motives, attitude, values etc. Therefore employee management in an organization does not mean management of not only technical skills but also other factors of the human resources Complex Dynamism The handling of human resource is entirely different from that of other resources. If human factor is properly utilizes, it may even prove a dynamic motive force for running an organization. Otherwise it becomes a passive and destructive force. A Social System The personnel manager involves himself in administering a social system. In this process, the manager has to see that the economic 1
satisfaction for a reasonable livelihood, the social satisfaction of working together as members of a group and individual job satisfaction of a worker are attained. The nature and significance of personnel management have undergone rapid changes recognizing the people not as a cost center but as a profit center. Meaning of Human Resource Management In simple sense, human resources management means employing people, developing their resources, utilizing, maintaining and compensating their services in tune with job and organizational requirements. Michael J. Jucius defined Personnel Management as “the field of management Personnel Management as “the field of management which has to do with planning, organizing, directing and controlling the functions of procuring, developing, maintaining and utilizing a labor force, such that the : a) Objectives for which the company is established are attained economically and effectively, b) Objectives of all levels of personnel are served to the highest possible degree, c) Objectives of society are dully considered and served Human Resource Management can be defined as managing (planning, organizing, directing and controlling) the functions of employing, view to developing contribute and compensating (due human to them) resources to the resulting in the creating and development of human relations with a proportionately organizational individual and social goals. 2
Significance of Human Resource Management (HRM) Today the apparel industry has become very competitive with the removal of quotas more and more buyers are coming into India. Human resources are the lifelines of any organization. Human Resources System is a central subsystem of the
organization. Human resources system in an organization is not only unique subsystem but also a principle and central sub-system and it operates upon and control all other systems (as shown in the following figure.
Human Resources Sub-System
Technolo gy SubSystem Thus in the words of Wendell L. French, “ Personnel management is a major pervasive sub-system of all organizations”. Whatever I the environment affects the organization like economic, social, cultural, legal, political, historic, competitors, consumers etc. as a whole also affects the personnel system. The resource system receives inputs from the organization in the form of objectives and it results in 3
individual and organizational performance that may be viewed as individual and organizational output. Both the personnel system and the entire organizations operate under the same cultural, economic, social, legal, political and other constraints. Hence, greater the effectiveness and productivity of personnel, the more will be the effective functioning of an organization. Peter F. Drucker has rightly observed the significance of personnel as, managers are fond of repeating the truism that the only real difference between one organization and the other is the performance of the people”. In essence the survival, development and performance of an organization although not solely but heavily _ depends on the equality of personnel. Environmental Influence The external environment is comprised of those factors, which affect an organization’s human resources from outside the organization. Important among them are, economic, social, political, Governmental and legal, technological, manpower, in the country, tradition and culture, customers, other organizations and trade unions in other organizations. Each of these external factors separately or in combination can influence the HRM function of any organization. Further, changes in these factors make the personnel manager’s job a challenging one.
The internal environmental factors include organization objectives. Impact of internal environmental factors is profound as they frequently and closely 5 . marketing and production. the functional areas of the organization with which the personnel managers works continuously like finance.Environmental Scanning of HRM External Technological Internal Governmental Legal Marketing Organizational Objectives Customers Political HRM Organizational Politics Production Trade Unions in other Organizations Economic Finance Organizational Structure Environment Human Resources in Country Social Including Religious The internal environment also affects the job of a personnel manager. policies. organizational structure.
Hence procurement of skilled employees and their increase in numbers to match the changing job requirements has become a complicated task. The levels of wage salary. Most of the personnel problems are linked with the production function of an organization. advising. Technological Factors: Just as necessity is mother invention. But it is found that the supply of former category of employees has dwindled in relation to the demand for the same. The personnel manager works closely with other functional (line) managers in solving their personnel problems through counseling. Jobs are designed and analyzed based on the organizational structure. providing information etc. In addition. various allowances – incentive compensation etc. Thus the internal environment of an organization influences heavily the HRM.. technical personnel.interact with HRM function in an organization. are highly influenced by the level of finance and success of marketing functions. not only new organizational relationships and different motivational techniques to satisfy the changed relationships but also to retain technically skilled and efficient personnel will be required. scheduled tribe and backward communities. In consequence of these changes. competition and a host of other reasons are responsible for the rapid technological changes and innovations. For instance. the objectives of HRM are formulated based on the organizational objectives. Changes in the Structure of Employment There has been a significant change in the structure of employment with the entry of a) Candidates belonging to the scheduled cast. skilled workers and machine operators are increasingly required while the demand of the other categories of employees has declined. thanks to government’s reservation policy and with 6 .
7 . to cope up with the new changes. to to introduce encourage negotiating employee machinery reduce grievance. These changes in workforce have naturally complicated the task of HRM as the personnel manager has to deal with the employees with different backgrounds.. participation indecision making and the like to pave the way for industrial democracy to meet the situations of workforce. due to increase carrier orientation among women to the suitability of women for certain jobs and to women becoming more acclimatized to the working climate and higher level commitment. But gradually this relationship has been replaced by the relationship in which employees and management are partners in the organizations. Further. employees prefer flexible working hours to fixed time schedule. Changing Demands of Employers The technological revolution and neck to neck marketing competition of most of the organizations demand that the existing employees adopt to the ever changing work situations and learn new skilled. Changes in Employee Role and their Values It was the opinion of the management that it was the boss and the employees had to follow obediently management’s decision. It has become imperative for the management to provide various fringe benefits to to improve morale.b) More female employees. knowledge etc.
directing the various activities of the personnel management. At this point the performance is to be verified in order to know that the personnel functions are performed in conformity with the plans and directions. Controlling: After planning. changing. training etc. commanding. In the words of J. attitudes and behavior or employees and their impact on organization. recruitment. It is essential to carry out the determined course of action. The basic function of personnel management at any level is motivating. is possible through proper direction.FUNCTIONS OF HRM After knowing the meaning and importance of human resource management.C. identifies relationships and integrates its activities towards common objective”. changing values. how do we define the function of HRM in Mystic Monk Designs Pvt. organizing.Massie. an organization is a “structure and a process by which co-operatives groups of human beings allocated its task among its members. requirements. Ltd. verifying and comparing of the 8 . Controlling also involves checking.? Managerial Functions Planning: It is a pre-determined course of action. In other words it involves planning of human resources. Organizing: An organization is a means to an end. Planning is determination of personnel programmes and changes in advance that will contribute to the organizational goals. Directing: The next logical function after completing planning and organizing is the execution of the plan. It also involves forecasting of personnel needs. leading and activating people. The willing and effective co-operation of employees for the attainment of organizational goals. selection.
job requirements and employee specification. levels and quantum of human resources. job specification. 9 . Recruitment: It is the process of searching for prospective employees and stimulating them to apply for jobs in an organization. facts and ideas relating to various aspects of jobs including men. b) Preparation of job-description. Selection: It is the process of ascertaining the qualifications. information. identification of deviations if any and correcting of identified deviations. plan and basis for job design and for all operative functions of HRM. machines and materials. experience. performing jobs which would meet the needs of the organization and which would provide satisfaction for the individuals involved. knowledge etc.. Job analysis a) Collection of data. c) Providing the guides. Operative Functions Employment: Employment is connected with securing and employing the people possessing required kind and level of human resources necessary to achieve the organizational objectives. Human Resource Planning: It is process of determination and assuring that the organization will have an adequate number of qualifies persons. of an applicant with a view to appraising his/her suitability to a job appraising. which will help identifying the nature .actual with the plans. skill. available to proper times.
. Induction and Orientation: Induction and orientation are the techniques by which a new employee is rehabilitated in the changed surrounding and introduced to the practices. It is matching of employee specifications with job requirements. values.Placement: It is the process of assigning the selected candidate with the most suitable job in term of job requirements. It includes internal and external mobility. Training. based on present and future job and organizational requirements. training. It is the process of imparting the employees the technical and operating skills and knowledge. creative ability. This function includes: Performance Appraisal :It is the systematic evaluation of individuals with respect to their performance on the job and their potential for development. policies.. attitude. It takes care of transfer. 10 . promotion. equitable and fair remuneration to the employees. Management Development: It is the process of designing and conducting suitable executive development programmes as to develop the managerial and human relations skill of employees. aptitude. commitment etc. purposes and people etc. of the organization. Compensation: It is the process of providing adequate. It includes job evaluation. It is the planning of one’s career and implementation of career plans by means of education. job search and acquisition of work experiences. knowledge. demotion etc. Human Resource development It is the process of improving molding and changing the skills. Career Planning and Development.
commitment and the like. strikes. a) Conducting morale. Human Resource Research: It is the process of evaluating the effectiveness of human resources policies and practices and developing more appropriate ones. incentives. It includes. b) Collecting data and information regarding wages. Audit and Research: Effectiveness of human resources management can also be found out through human resource accounting. attitude. audit and research. social security measures etc.wage and salary administration. cost-benefit analysis of training. employee turnover. job satisfaction and behavior surveys. operations. benefits. absenteeism. accidents. bonus. shifts etc. working hours. absenteeism. Human Resource Accounting. Low rate of absenteeism and specific and high rate of employee commitment most probably indicate employee – satisfaction about the job and the organization. c) Tabulating. fringe benefits. productivity. Effectiveness of Human Resources Management Effectiveness of various personnel programmes and practices can be measured or evaluated by means of organizational health and human resources accounting etc. information d) Report writing and submission to the line managers computing and analyzing of the data and 11 . Organizational Health: The result of the employee satisfaction can be understood by labor turnover.
programmes of personnel. Objectives of Human Resource Management The objectives of HRM may be as follows: a) To create and utilize an able and motivated workforce. prestige. e) To attain an effective utilization of human resources in the achievement of organizational goals. security status etc. employee benefits and social security and measures for challenging work. incentives. c) To secure the integration of individual and groups goals with those of the organization. 12 . f) Developing of more appropriate policies. to accomplish the basic organizational goals. h) To strengthen and appreciate human assets continuously by providing training and developmental programmes. d) To create facilities and opportunities for individual or group development so as to match it wit the growth of the organization. procedures. g) To maintain high employee morale and sound human relations by sustaining and improving the various conditions and facilities.e) Finding pout defects and shortcomings in the existing policies. practices etc. recognition. f) To identify and satisfy individual and group needs by providing adequate and equitable wages. b) To establish and maintain sound organizational structure and desirable working relationships among all the members of the organization.
under-employment. l) To provide facilities and conditions of work and creation of favourable employment. acceptable and efficient leadership. inequalities in the distribution of income and wealth and to improve the welfare of the society by providing employment opportunities to women and disadvantaged section of the society etc. j) To provide an opportunity for expression and voice in management k) To provide fair. atmosphere for maintaining stability of 13 .i) To consider and contribute to the minimization of socioeconomic evils such as un-employment.
improves employee’s skill regarding various jobs and prepares the competent employees to meet the contingencies. Job Enrichment: Job enrichment loads the job vertically. Job Design Options: Personnel departments use a variety of methods to improve jobs such as job rotation. This measure also improves worker’s self-image and provides personnel growth. Job themselves are not actually changed. task significance.JOB DESIGN Job design process has to start from what activity needs to be in order to achieve organizational goals. Job Enlargement: Job enlargement means adding more and different tasks to a specialized job to provide greater variety. 14 . process planning. Job enrichment means adding duties and responsibilities that will provide for skill variety. job enlargement and job enrichment. task identity. It requires the use of techniques like work-study. This measure relieves the employee from boredom and monotony. only the employees are rotated among various jobs. autonomy and feedback on job performance. Job Rotation: Job rotation refers to the movement of an employee from one job to another. It tries to deal with dissatisfaction by increasing job depth as work activities from a vertical slice of the organization unit are combined in one job. An employee who works on a routine/respective job moves to and works on another job for some hours/day/months and backs up to the first job. organizational methods and organizational analysis.
Thorough knowledge of the job is essential to perform these functions. by observation and study.Job Analysis Need of Job Analysis Procurement like human is the first operative function of and personnel selection. Occupation: An occupation “is a group of job that are similar as to kind to work and are found throughout an industry or the entire country”. Job: A job is “a group of positions that are similar as to kind and level of work”. management. Job Terminology Description of technical terminology is highly essential in order to facilitate the study of a job analysis. recruitment Management should determine the kind of personnel required for a job in right time. Position: A position is a group of similar tasks and responsibilities assigned to one individual. which can be sub-divided into various sub-functions resource planning. 15 .S. factual statement of the duties and responsibilities of a specific job”. Job Analysis: The U. Department of Labor defined job analysis as “the process of determining. Task: A task is an action or related group of action designed to produce a definite outcome or result. Job Description: A job description is “ an organized. and reporting pertinent information relating to the nature of a specific job.
Job Duties 5. Collection of Background Information Selection of Representative Position to be analyzed Collection of Job Analysis of Data Developing a Job Description Developing a Job Specification Developing Employee Specification Job Analysis Information: This analysis provides the following information. What the Typical Worker Does? 4. Significant Characteristics of a Job 3. i. iv. Job Specification: Employee specification is a statement of minimum required employee qualifications”. What Materials and Equipment the Worker Uses? 16 . iii. 1. ii. v. which consist of six basic steps. Process of Job Analysis Jobs can be analyzed through a process. Job Identification 2.Job Specification: A job specification is “a statement of the minimum acceptable human qualities necessary to perform a job properly”. vi. Job Classification: A job classification is “a grouping of jobs on some specified basis such as kind of work or play”.
: Sources of Job Analysis Information: a. More specific words should be selected to show a. Required Personal Attributes Job Relationship: This includes opportunities for advancement. How a Job is performed? 7. and c. Job Description Characteristics of Good Job Description: It should indicate the scope and nature of the work including all-important relationships. The kind of work b. special job reviewing committees are also established. Sometimes. patterns of promotions. The degree of skill required d. From other employees such as supervisors and foremen who watch the workers while doing a job and thereby acquire knowledge about it. The job description should be clear regarding the work of the position. From the employee who actually perform a job. duties etc. The extent to which problems are standardized 17 . essential cooperation etc. Such outside persons are called the trade job analysis. From outside observers specially appointed to watch employees performing a job. The degree of complexity c. b.6.
e. machinery and equipment worked with Designation of the immediate superiors and subordinates Salary levels: Pay. hours of work. Definition of unusual terms Conditions of work: Location. The Content of Job Description: The job description normally contains the information on the following line Job title Organizational location of the job Supervision given and received Materials. The extent of worker’s responsibility for each phase of the work and f. weekly. other allowances. the job analyst has to get further 18 . accuracy. estimates times to be spent on each duty. speed of work. The degree and type of accountability. After writing the preliminary draft.but they are done only for the top level or middle level jobs. Major Steps of Job Description: Job analyst has to write the job description after consulting the worker and the supervisor. D. method of payment. monthly and casual.A. bonus. accident hazards Training and development facilities Promotional chances and channels The content of job description are defined in Mystic Monk Designs Pvt. Complete list of duties to be performed separated accordingly to daily. incentive wages. Our recommendation is that job should clearly defined for all the workers in the organization. It helps in clearly defining the authority responsibility relationship of superior and subordinate. Ltd. shift. It also helps in job evaluation and giving the right feedback to the worker. time. tools. and break.. health hazards.
ii. Keeping the Job Description Up-to-date: Job requirements have been undergoing continuous change. The job description should be reviewed and updated after the final draft is prepared. The job analyst has to check the information that is received and he has to change the job description accordingly. All the information pertaining to the job should be secured from the worker. Job analyst has to complete the job description form by observing the actual work being done by the employee. Get the questionnaire filled in by immediate supervisor of the employee.comments and criticism from the worker and supervisor before preparing the final draft. iii. Job Specification It is a written statement of qualifications. The job analyst has to secure the information about the changes as and when it is reported or when a grievance is ventilated claiming that a given job should be reclassified into a higher group or class carrying the higher rate of pay. physical and mental characteristics that an individual must possess to perform the job duties and discharge responsibilities effectively. The following modes may be used in writing job description: i. Job Specification Information: This includes: i. Physical specifications Mental specifications 19 . The job analyst has to finalize the job description and write the final draft by using any one or a combination of two or more of the above methods. ii. traits.
Ltd.iii.) Age Sex Educational Qualifications Experience Physical Specification: Height. Social Back ground Family Back ground Extra-curricular activities Hobbies Employee Specifications: Job specification information must be converted into employee specification information in order to know what kind of person is needed to fill a job. Job Grade Job Title Age Sex 20 . Employee specification is useful to find out the suitability of particular class of candidates to a particular job. Recommended model of employee specification form to be maintained in Mystic Monk Designs Pvt. Emotional and social specifications and Behavioral specifications Job Specification Form (this should be maintained for all the job positions in Mystic Monk Designs Pvt. iv. weight etc. Ltd.
Job description helps I charting the channel of promotion and in showing lateral lines of transfer. tasks and responsibilities etc. work procedures etc. recruitment selection.Educational Qualifications Training received Experience Physical specification Social specification Uses of Job Analysis Employment: Job analysis is useful as a guide in every phase of employment process like manpower planning. 21 . and in performance appraisal as it gives the information about duties. placement. Preventing Dissatisfaction and Settling Complaints: Job information can be used as a standard in preventing and settling complaints related to work load nature of work. Promotion and Transfer. alteration or revisions of job description etc. Performance Appraisal: Instead of rating an employee on characteristics such as dependability there is now a tendency toward establishing job goals and appraising the work done toward those goals. Organization Audit: Job information obtained by job analysis often reveals instances of poor organization in terms of the factors affecting job design. orientation induction. Training and development Programs: Description of duties and equipment used is of great help in developing the content of training and development programs.
hazards. Basically wage and salary levels are fixed on the basis of job evaluation. Wage and Salary Administration Job analysis is the basis for job evaluation. Job information can be used as a standard when discipline is being considered for standard performance. responsibilities. etc.Disciple. 22 . duties. accident-prone areas etc. Health and Safety Job description provides the information about hazardous and unhealthy conditions. Restriction of Employment Activity for Health Reasons and Early Retirement When employees are unable to maintain the standard job performance due to old age or health hazard they may opt for early retirement for the organization may retrench their services. which takes into consideration the content of the job in terms of tasks. risks.
skill. To maintain congenial industrial relations by maintaining optimum level and structure of human resources vii. existing employees and future human resource requirements iv. ix. quantity and foresee the employee turnover and make the arrangement for minimizing turnover and filling up of consequent vacancies ii. ability discipline etc. To meet the needs of the programme of expansion. To minimize imbalances caused due to non-availability of human resources of right kind. knowledge. right number in right time and right place viii. diversification etc. To recruit and retain human resources of required quality. iii. To improve the standard. 23 . To make the best use of its human resources and To estimate the cost of human resources. To foresee the impact of technology on work. To asses the surplus or shortage of human resources and take measure accordingly vi.HUMAN RESOURCE PLANNING Objective: The important objectives of manpower planning in an organization are: i. v.
Megginson human resource planning is “ an integrated approach to performing the planning aspects of the personnel function in order to have a sufficient supply of adequately developed and motivated people to perform the duties and task required to meet organizational objectives and satisfy the individual needs and goals of organizational members”. Need of Human Resource Planning Every organization has to plan for human resource due to: i. vii. The rapid changes in technology. and the consequent need for new skills and new categories of employees. marketing. v. The demographic changes like the changing profile of the workforce in terms of age. The government polices in respect to reservation. Pressure from trade unions. education etc. According to Leon C. sex. robots etc. The shortage of certain categories of employees and/or variety of skills despite the problem of unemployment. working conditions etc.What is Human Resource Planning? E. The labor law affecting the demand for the supply of labor. management etc. Introduction of computers. ii.W/ Vetter viewed human resource planning as “ a process by which as organizations should move from its current manpower to its desired manpower position. viii. The changes in organization design and structure affecting manpower demand. robots etc. vi. child labor. politicians. iii. iv. 24 .
ix. The involvement of lead-time in maintaining the job with most suitable candidate. benefits and all the cost of human resources facilitating the formulation of budgets in an organization. ix. child care centers quarters. aptitude and attitude of human resources and to change the techniques of interpersonal. iv. But the HRP offsets uncertainties and changes to the maximum extent possible and enables the organization to have right men at right time and the right place. It checks the corporate plan of the organization. industrial and economic plans. It help to anticipate the cost of salary enhancement. ii. To give an idea of type of tests to be used and interview techniques in selection based 25 on the level of skills. v. viii. It offsets uncertainty and change. . It helps to anticipate the cost of salary. vii. To foresee the need of redundancy and plan to check it or to provide alternatives employment consultation with trade unions. vi. hospitals. To foresee the changes values. company stores etc. Benefits of Human Source Planning i. better benefits etc. working conditions and the volume of fringe benefits like canteen. To plan for physical facilities. iii. other organizations and government through remodeling organizational. management etc. conveyance. It provides scope for advancement and development of employees through training. schools. development etc.
x.. intelligence.qualifications. It facilitates the control of all the functions. It causes the development of various sources contributions in the form of increased productivity. diversification etc. One of the important aspects of demand forecasting is the forecasting of the quality of human resources (skill. knowledge and skills of present employees. Analysis of organizational plan and programmes helps in forecasting the demand for human resources as it provides the quantum of future work activity. Practicability of each programme should be ensured. sales.. Detailed programmes should be formulated on the basis of unit-wise plans. operations.) in addition to the quantity of human resources. Job analysis and forecasting about the future components of human resource s facilitates demand forecasting. knowledge values. technological plan. Forecasting the Overall Human Resource Requirements The existing job design and analysis may thoroughly be reviewed keeping in view the future capabilities. marketing plan. capabilities etc. PROCESS OF HUMAN RESOURCE PLANNING Analyzing the Organization Plans The process of human resource planning should start with analyzing the organizational plan into production plan. Important forecasting methods are: i. xi. Each plan can be further analyzed into Sub-units. sale plan. financial plan.. of future human resource. plan for expansion. values etc. turnover etc. Managerial judgment Statistical techniques and 26 . contribution and most of human resources. ii.
resorts to the management-judgment approach. makes necessary arrangements and finalizes the plan. Under this method. Then the required number of employees is calculated. Recommendation: In today’s competitive world work-study analysis is must for any export house. total production and activities in terms of clear units are estimated in a year. Under this method the managers or supervisors who are well acquainted with the work load. Alternatively this exercise can also be done by the top management which in turn sends the information at the top prepare the organizational plan. rest etc. the management at the top compares the proposals with the organizational plan. Ltd. Ltd. think about their future workload. Work Study Techniques These techniques are more suitable where the volume of work is easily measurable. future capabilities of employees and decides on the number and type of human resource to be required. Managerial Judgment: How Mystic Monk Designs Pvt. efficiency and abilities of the employees.forecasts its overall human resource requirement? Mystic Monk Designs Pvt.iii. 27 . Under this bottom-up approach. Man-hours required to produce/perform each unit is calculated. This is done by the supervisors concerned who send the proposals to he top official for approval. Work ability of each employee is estimated in terms of man-hours after giving due weight age to absenteeism. Work-study techniques. departmental plans and human resource plan.
designationwise. Principal dimensions of human resources inventory are: i. planning control and work-study analysis should be done: 1.e. Head counts regarding total.2 hr 3. designation-wise and department-wise should be obtained.000 hr 416 working hours (i. production quality etc. Plan man hour needed If order has to dispatch in 2 months i. skill-wise.e. department-wise. number. It indicates age-wise imbalances in present 28 . Supply Forecasting Existing Inventory The data relating to present human resources inventory in terms of human resources components.After an order comes from the buyer and before it goes for production.e.000 shirts 1.000/416) 5 Number of men required Work-study analysis enables an export manufacturing to know the exact details of the number of employees required to complete the task. 2. pay roll-wise. Job family Inventory: It includes number of category of employees of each job family. ii. 4. (52 working days) 40. Age Inventory: It includes age-wise number and category of employees. all jobs related to same category like merchandising. i. iii. 52 working days x 8 hr shift / day) 96 employees (40. Order Standard man hour needed to produce each unit 50.
aptitude etc. Potential Losses Potential losses to the organization include voluntary quits. Potential losses to a particular department or subunit include factors like promotions out. deaths. Inventory of salary grade-pay-wise. viii. retirements. of employees left during a specified period 100 X 29 . dismissals. disablement due to ill health or involvement in accident. vi. Labor turnover is measured by the following formula: Labor turn over rate = No. The reasons for the potential losses can be classified as: i. department and organization. Local and non-local-wise inventory. ii. iv. experience. (a) Permanent total loss is due to labor turnover. loss of values. allowances-wise. Permanent total loss Permanent partial loss Temporary total loss and Temporary partial loss. vii. Inventory of skill. Sex-wise inventory. capabilities. and total salary-wise. Inventory of qualifications and training including minute qualifications and training. values. due to changes in the attitude of existing employees towards the job. iii. lay-offs. v.inventory which can be correlated in future selections and promotion iv. transfers out and demotions out in addition to the above factors relating to the organization.
Management also calculates labor stability index (rate of employees with certain period of experience to total number of employees). and reduce loss. reason for loss. of employees during the same period Management has to calculate the rate of labor turnover. Potential Additions a) Permanent loss b) Permanent partial c) Temporary total and d) Temporary partial. Permanent total additions to the organization consist of new hires. (b) Permanent partial loss consists of wages of skills. etc. survival rate ( the proportion of employees who are engaged within a certain period who remain with the firm after so many months or years of service) which help the management to encourage a stability and minimize undesirable turnover. capabilities etc.Average No. Permanent total additions in case of departments include promotions. demotions and transfers within the organization. This helps to forecast the rate of potential loss. (d) Temporary partial loss include consultancy. advisory and other services offered by the employees to others. conduct exist interviews regarding dismissal etc. 30 . (c) Temporary total loss of human resource is due to absenteeism and deputations out.
If the deficit is not estimated in any job/department and surplus is estimated for the entire organization. values. Action Plan for Redeployment. the organization. redundancy etc. If surplus is estimated in some jobs/departments. Redeployment takes place in the form of transfers. redundancy/Retirement If future surplus is estimated. employees can be redeployed in other jobs/departments where the deficit of employees is estimated. has to plan for redundancy or retrenchment. Organization should also plan for training or reorientation before redeployment of employees. by the existing employees. The difference between the potential loss and potential additions is to be added or subtracted as the case may be to the present inventory of human resource in order to forecast the supply of manpower. aptitudes etc. the organization has to plan for redeployment. Future supply of the difference between the Human Resources = Present inventory of human resources ± potential additions and potential loss of human Resources Or Present inventory of Human Resources + Potential additions _ Potential Loss Estimating the Net Human Resource Requirements Net human resource requirements in terms of number and components are to be determined in relation to the overall human resource requirements (demand forecast) for a future date and supply forecast for that date.Permanent partial addition consists of acquisition of new skills. 31 . in consultation with the trade unions. knowledge.
preliminary training and placement. new courses to be developed or changes made to the existing courses. etc. organization development participation efficiency. company rules regarding organization initiated transfers and employee initiated transfers. The transfer plan includes channel. promotional channel. training techniques.Forecast Future Supply from All the Sources Action Plan for Recruitment. time necessary for recruitment and selection process. Recruitment and selection plans cover the number and types of employment required. cost benefit analysis of training. availability of trainer. productivity 32 . recruitment sources. training programmes. training time. motivation. The promotion plan includes establishing of the ratio of internal promotion to external recruits. training. improving / streamlining methods. selection procedures to be adopted. procedures and systems. productivity bargaining. in plant training or institute training. when they are required for the job. Development etc. It also covers the time factor for induction. selection techniques to be used to select the required candidates. commitment. development of the employees and matching of their improved skills with future job requirements etc. The training and development plan covers areas to be developed. The productivity plan includes maximization of productivity or minimization of labor cost per unit of output through technological changes. developing various schemes. and reservations in promotions etc. basis for promotion. recruitment techniques to be used. financial incentives. programmes. It also job includes enrichment/ improving of enlargement.
) Particular Job: Demand 1. New hires ii.i. Promotions in iii.Modify the Organizational Plan Retention Plan Control and Review Mechanism MODEL FOR CALCULATION OF NET HUMAN RESOURCES REQUIRMENT FOR THE NEXT YEAR (this is a recommended model which can be applied in Mystic Monk Designs Pvt. Changes during the year 3. Voluntary quits Skill Knowle dge Aptitude Speciali zation Age Number 33 . Transfers in Demotions in Permanent partial Temporary: Deputation in Loss: Permanent total 6. Additions: Permanent total i. Total requirements at the end of the year Supply 4. Present inventory 5.Number required at the beginning of the year 2. Ltd.
Future net supply New Recruitments 8. Demotions out Permanent partial Temporary: Absenteeism Deputations out 7. Deficit/ Needed Additions 9 Surplus/Redeployment 10 Net Additional Human Resources Required 34 . Deaths iii. Transfers out vii. Retirements v. Dismissals iv.ii. Promotions out vi.
35 . “a process to discover the sources of manpower to meet the requirements of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient workforce”. Recruitment policy should commit itself to the organization’s personnel policy like enriching the organization’s human resources or serving the community by absorbing the weaker sections and disadvantaged people of the society. However. Flippo defined recruitment as “ the process of searching for prospective employees and stimulating them to apply for jobs in the organization”. personnel policies of other organizations regarding merit. improving the employee loyalty to the organization by absorbing the retrenched or laid-off employees or casual/temporary employees or dependents of present/former employees etc. Government’s policies. The following factors should be taken into consideration in formulating recruitment policy. motivating the employees through internal promotions. Edwin B. internal sources. Recruitment Policy Recruitment policy of any organization is derived from the personnel policy of the same organization. policy regarding sons of soil etc. In other words the former is the part of the latter.RECRUITMENT Definition Recruitment is defined as. They are: a. women etc. recruitment policy by itself should take into consideration the government’s reservation policy. social responsibility in absorbing minority section.
b. knowledge. It enables the line managers of various units and zones to concentrate on their operational activities by relieving them from the recruitment functions. abuse of power. Recruitment cost. f. favoritism. Selection criteria and preference etc. vii. vi. skill. Centralized Vs. iii. It would generally be above malpractices. Recruitment needs. It would facilitate interchangeability of staff among various units/zones. Decentralized Recruitment Merits of Centralized Recruitment i. Personnel policies of other competing organization. Recruitment sources. It can ensure broad uniformity among human resources of various units/zones in respect of education. g. bias etc. c. 36 . e. It would have more expertise available to it. d. iv. Average cost of recruitment per candidate/unit should be relatively less due to economies of scale. It enables the organization to have centralized selection procedure. promotional and transfer procedure etc. ii. v. Organization’s personnel policies. talent etc.
The unit gets most suitable candidates as it is well aware of the requirements of the jobs regarding cultural. promotional and transfer procedure etc. Both the system of recruitment would suffer from their own demerits. It enables the organization to have centralized selection procedure. The unit concerned concentrates only on those sources/places where it normally gets the suitable candidates. local factors. control and feedback and various functions/processes of recruitment. As such the cost of recruitment would be relatively less. vi. Alternatively the management may decentralized the recruitment of certain categories of employees preferably middle and top level managerial 37 .viii. in selecting and employing the techniques to stimulate the candidate. the management has to weigh both the merits and demerits of each system before making a final decision about centralizing or decentralizing the recruitment. The unit would enjoy better familiarity and control over the employees it recruits rather than on employees selected by the central recruitment agency. The unit would relatively enjoy advantage about the availability of information. Merits of decentralized Recruitment i. iv. v. iii. developing the sources. traditional. family background aspects. ix. Hence. which further brings uniformity and minimizes average cost of staff. The units would enjoy freedom in finding out. ii. Units can recruit candidates as and when they are required without any delay. It enables centralized training programmes. social factors etc.
Internal Sources Internal sources include: a. Present temporary/casual employees.recruitments for higher-level jobs are decentralized whereas recruitments for lower level jobs such as operators. b. External sources are the sources outside organizational pursuits.personnel and centralize the recruitment of the other categories of the employees preferably lower level positions in view and the nature of the jobs and suitability of those systems for those categories of positions. d. SOURCES OF RECRUITMENT The sources of recruitment are broadly divided into internal sources and external sources. assistants to merchants. retired and present employees. The management has to find out and develop the sources of recruitment after deciding upon centralizing or decentralizing the recruitment function. Disabled. Dependents of deceased. pattern masters. Present permanent employees. 38 . In Mystic Monk Designs Pvt. Internal sources are the sources within an organizational pursuits. fabric chasers are all done centrally through employment agencies. c. Retrenched or retired employees. Ltd.
xi. vii. Ltd. Employees’ psychological needs can be met by providing an opportunity for advancement. iv. higher income can be satisfied. vi. a sense of belongingness. orientation.In Mystic Monk Designs Pvt. period of adaptability to the organization can be satisfied. Cost of selection can be minimized. Social responsibility towards employees may be discharged. induction. Why Do organizations Prefer Internal Sources? Organizations prefer this source to external source to some extent for the following reasons: i. x.lots of operators in the production department are given opportunities to become inline quality checkers. Employees economic needs for promotion. ix. Trade unions can be satisfied. commitment. and the security of the present employees can be enhanced. Loyalty. viii. Internal recruitment can be used as a technique of motivation. iii. ii. 39 . Morale of the employees can be improved. Stability of employment can be ensured. This provides a lot of motivation to the operators to improve their efficiency. v. Cost of training. Suitability of the internal candidates can be judged better than the external candidates as “ known devils are better than unknown angles”.
40 . a. innovative or creative talents can also be flowed into the organization. skill. iii. The suitable candidates with skill. Professional Associations. Latest knowledge. Expertise. Public Employment Exchanges. knowledge. Private employment agencies/consultants. External Sources include. are generally available. Educational and training Institutes. Data banks.. viii. e. experience. Human resources mix can be balanced with different background. Candidates can be selected with out any pre-conceived notion or reservations. b. Existing will also broadens their personality. v. d. ii. Long-run benefit to the organization in the sense that qualitative human resources can be brought.External Sources i. skill. skill etc. innovative or creative talent can also be flow source are generally placed in minimum pay scale. talent etc. c. vii. iv. vi. Cost of employees can be minimized because employees selected from this Latest knowledge. excellence and experience in other organizations can be easily brought into the organization.
Trade Unions. Management uses different types of techniques to stimulate internal and external candidates. The lower level recruitments are made from employment agencies and also from casual applicants. Transfers Techniques useful to stimulate external candidates: a. Techniques useful to stimulate internal candidates are: a. Present employees. g. Juniors merchants and production in charges may be recruited from education or training institutes. Promotions. Similar Organizations. Advertising. c.f. RECRUITMENT TECHNIQUES Recruitment techniques are the means or media by which management contracts prospective employees or provide necessary information or exchanges ideas or stimulate them to apply for jobs. (i) Promotions (ii) Transfers 41 . h. In Mystic Monk Designs Pvt. Ltd.a lot of middle level and higher-level personnel are recruited from similar organizations or through consultants. and b. b. Scouting. Casual Applicants.
(iii) Recommendations of the Present Employees (iv) Scouting (v) Advertising 42 .
Candidates for screening have been attracted. the manner in which task and responsibilities for accepting or rejecting candidates should be shared by line and staff executives. Organizational Relationship Before designing a selection procedure.e.) have been clearly specified. Requirements of the job to be filled have been clearly specified (job analysis etc.) b. b. This authority comes from the employment requisition. c. There must be sufficient number of applicants from whom the required number of employees may be selected. i. Employee specifications (physical. there should be available before hand a comprehensive job description and job specification as developed by a job analysis. The 43 . mental.SELECTION The guiding policy in selection is the intention to choose the bestqualified and suitable candidate for each unfilled spot and to avoid commitment to those who will not work well. There must be some standard of personnel with which a prospective employee may be compared. behavioral etc. The selection to procedure is the system of functions and devices adopted in a given company to ascertain whether the candidates’ specifications are matched with the job specifications and requirements or not. Essentials of Selection Procedure a.. social. They must be laid down. as developed by an analysis of the workload and work force. The selection procedure cannot be effective until and unless: a. c. Some one should have the authority to select.
Secondly. However. only specifications but also with organizational and social environmental 44 . he should give his views to the superior and should avoid involving himself in argument with departmental head on methods of selection. Factors Affecting Selection Decisions in Apparel Industry Organizational and Social Environment. job specification and employee’s specifications before proceeding to the next step of selection. Every organization should finalize the job analysis. may fail as successful employees due to varying organizational specifications and must social match environment. Some candidates who are eminently suitable for the job. If he is not satisfied in this regard. job description. Line executive is ultimately vested with the authority either to accept or to reject a candidate. candidates who can meet job requirements should be made available promptly. with not Hence. (2)Recruitment: Recruitment refers to the process of searching for prospective employees and stimulating them to apply for jobs in an organization. job candidates’ requirements. the personnel officer has a duty to see that the right types of personnel are selected and placement done wisely. Selection Procedure (1)Job Analysis: Job analysis is the basis for selecting the right candidate.personnel department should eliminate all unsuccessful candidates. so that the time of the line executives need not be spent on such people. It is the basis for the remaining techniques of the selection and the latter varies depending upon the former.
physical appearance and other physical requirements etc. 45 . certain required amount of care is to be taken to ensure that the desirable workers are not eliminated. If a candidate satisfied the job requirements regarding most of the areas. The preliminary interviews are short and known as stand-up interviews or sizing-up of the candidates or screening interviews. This interview is also useful to provide the basic information about the company to the candidate. An assistant in the personnel department may conduct this. preliminary interview is useful as a process of eliminating the undesirable and unsuitable candidates. If the information supplied by the candidate is below/above the availability of number of suitable candidates. and salary expected. Thus. experience. The information thus provided by the candidate may be related to the job or personnel specifications regarding education. aptitude towards the job. age. he mat be selected for further process. However.Application Form Personnel background Information: Educational Attainments: Work Experience: Salary: Personal Items: References: Options of Interviews Available for Apparel Industry Preliminary Interview The preliminary interview is to solicit necessary information from the prospective applicants and to assess the applicant’s suitability to the job.
Stress interview must be handled with utmost care and skill. hobbies. criticizing his opinions. critical/problematic areas. place of domicile. methods of doing the job. (d) Panel Interview: Interviewing of candidates by one person may not be effective as he can not judge the 46 . health. (b) Job and probing interview: This interview aims at testing the candidate’s job knowledge about duties. This type of interview is often invalid. etc. extracurricular activities of the applicant. methods of handling those areas etc.Core Interview It is normally the interaction between the candidate and the line executive or experts on various areas of job knowledge. interest. Interviewer tests the candidate by putting him under stress and strain by interrupting the applicant from answering. This interview may take place various forms like: (a) Background information interview: This interview is intended to collect the information which is not available in the application blank and to check that information provided in the application blank regarding education. activities. dislikes. keeping silent for unduly long period after he has finished speaking etc. talent. Stress during the middle portion of the interview gives effective results. asking questions pertaining to unrelated areas. family. as the interviewee’s need for a job. his previous experience in such type of interviews may inhibit his actual behavior under such situations. This interview aims at testing the candidate’s job behavior and level of withstanding during the period of stress and strain. skill. likes. (c) Stress interview.
? Top level selection There are generally two interviews. A panel of experts interviews each candidate. Ltd. This type of interview is known as panel interview. to interview candidates. Middle level selection The selections are generally made on the basis of one interview with the 47 There should be two round of interviews. domination of other experts etc. The first should be a preliminary interview Recommendations . excessive weight age to a particular factor. which is more effective as an expert in relevant areas prepares each candidate. judges his performance individually and prepares a consolidated judgment based on each expert’s judgment and weight age of each factor. Hence. most organizations invite a panel of experts. At what level of the organization? What takes place in Mystic Monk Designs Pvt. It is important to know the human resource management skills of a top-level employee. Experts should be cautioned against over accuracy. department head and the human resource manager of the company. There should be a panel interview. The panels should comprise of general manager. The first interview takes place with the General manager and the second interview takes place with the department head.candidates in different areas/skills owing to lack of knowledge and competence in multiple disciplines and areas. specialized in different areas/fields/disciplines.
The major steps are grouped into four categories. A preliminary interview may be a good option to know about the basic qualification. they are selected on the basis of recommendation made by the employment agencies. who are willing to undertake additional responsibilities . Interview Process Interview is not a single step. (a) Preparation for the interview •Appropriate type of interview •The areas to be tested •Type and number of interviews •Review the information 48 . with the human resource manager of that level and the second should be with the respective department head. technical skills. Lower level selection There are generally no interviews for their selection. employees of the export house. It is a process consisting of several steps. and attitude.respective department head. A list can be maintained for the employees who have future prospects of growth.who are very enthusiastic.
The number of interviewers is to be decided on the basis of number and nature of areas to be covered by the interview. impressions and information collected during the course of interview. 49 . the final decision about the suitability of candidate to the job is made on the basis of the results of all selection techniques. number of candidates interviewing. The evaluation is generally based on the observations. The interviewer has to strike a fine balance between the job requirements and the employee values skills. Evaluation of Interview Results The interviewer/the board of interviewers evaluate (s) the to be interviewed and the time available for candidates strengthens and weaknesses against the job and organizational requirements.(b) Conduct the interview •Open the interview •Get complete and accurate information •Record observations and impressions •Guide the interview •Check the success of the interview c) Close the interview (d) Evaluate interview results A panel of interview is preferable to individual interview. knowledge etc. However. The evaluation may be in descriptive form or grading form or rating form. But the interview results influence the selection decision much more than any other technique.
Candidates are required to give the names of reference in their familiar with the candidate’s academic achievement or from the applicant’s previous employer. benefits provided. In case the reference check is from the previous employer. 50 . The organization sends the appointment orders to the successful candidates either immediately or after sometimes depending upon its time schedule. They are: job title.Reference Checks After completion of the final interview and medical examination. gross emoluments. willingness of the previous employer to employ the candidate again etc. information for the following areas may be obtained. period of employment. who is well versed with the applicant’s job performance. rate of absence. after taking the final decision the organization has to intimate this decision to the successful as well as unsuccessful candidates. job description. The Line manager has to take much care in taking the final decision not only because of economic implications and of the decisions but also because of behavioral and social implications. the personnel department will engage in checking references. pay and allowances. Employment Thus. and sometimes from co-workers. Final Decision by the Line Manager Concerned The Line manager concerned has to make the final decision whether to select or reject a candidate after soliciting the required information through different techniques discussed earlier.
b) Basic conditions of employment-hours of work. Induction “Induction is the process of receiving and welcoming an employee when he first joins a company and giving him the basic information he needs to settle down quickly and happily and start work”. of the company. c) Pay. If the performance is not satisfactory. About the department. handbook. products. decides the final placement after the initial training is over on the basis of candidate’s aptitude and performance during the training/probation period.Placement The organization. growth. holidays. group seminar are used to impart the information to new employees about the environment of the job and the organization in order to make the new employee acquaint himself with the following heads: a. About the company a) History. Lecture. allowances. customers etc. deductions. retirement benefits. 51 . film. About the company’s history. c. About the superiors. Probation period generally ranges between sic months and two years. b. subordinates etc. If the employee’s performance during the probation is satisfactory. organization and management. generally. his services will be regularized and he will be placed permanently on a job. the organization may extend the probation or ask the candidate to quit the job. shift. market.
e) Leaves rule-casual. medical are arrangements. j) Unions. work . r) Various employees. describes in detail the job or work. process of the production. earned-holidays. equipment. p) Traveling and subsistence expenses. n) Social benefits and welfare measures. work-load.d) Sickness rules. o) Telephone calls and correspondence. h) Grievance procedure. information-pay-sick leaves. his position in the departmental 52 organization structure. q) Uniform. safety. place of the employee’s job and its significance in the process of production. l) Health. negotiation channel. vacation. machine g) Disciplinary rules and procedures. i) Career path. k) Education. promotion channel. special. f) Work rule. Then the supervisor concerned introduced the employee to all the employees in the section/unit. About the Department The departmental head concerned introduces the new employee to the important employees and describes briefly about the department and the job.their designations – position in the organization. use of materials. clothing. training and development facilities. m) Canteen and restaurant facilities.
and it saves the time of the supervisor. customers/users of the product/services etc. d. First impression matters a good deal and results in less turnover. Newcomer adjust himself to the work quickly. 53 . assignment.distribution. Advantages of Induction a. shift. quality/standard to be maintained. Develops a sense of belongingness and commitment. c. working hours. Reduces employee dissatisfaction and grievances. b.
activities. his performance needs to be evaluated from time to time. normally including both the quantitative and qualitative aspects of job performance. Advantages of Performance Appraisal: In order to find whether The employee is worthy of continued employment or not Whether he should receive a bonus.PERFORMANCE APPRAISAL Performance appraisal is a method of evaluating the behavior of employees in the workspot. Features of Performance Appraisal: Performance Appraisal is the systematic description of an employee’s job-relevant strengths and weaknesses To find out how well the employee is performing the job and establish a plan of improvement Appraisals are arranged periodically according to a definite plan It is a continuous process in every large scale organization 54 . Performance is always measured in terms of results and not efforts. a pay rise or promotion. results and task direction. When properly conducted performance appraisals not only help the employee know how well he is performing but should also influence the employee’s future level of effort. Performance refers to the degree of accomplishment of the tasks that make up an individual’s job.
Appraisals help diagnose these errors.The major difference between Performance Appraisal and Job Evaluation is that the performance appraisal refers to how well an employee is doing the assigned job. 3. 8. Job Design Errors: Poor performance may be a symptom of illconceived job designs. Training and Development Needs: Poor performance may indicate the need for retraining. 4. 7. Many firms grant part or all of their pay increases and bonuses based upon merit. Likewise. what range of pay should be assigned to the job is determined by Job Evaluation. and. and personnel specialists to intervene with appropriate actions to improve performance. which is determined mostly through performance appraisals. Staffing Process Decisions: Good or bad performance implies strengths or weaknesses in the personnel department’s staffing procedures. 5. Performance Improvement: Performance feedback allows employee. transfers. good performance may indicate untapped potential that should be developed. Career Planning and Development: Performance feedback guides career decisions about specific career paths one should investigate. or other parts of the personnel 55 management information . Often promotions are a reward for past performance. and demotions are usually based on past or anticipated performance. Placement Decisions: Promotions. manager. 6. Information Inaccuracies: Poor performance may indicate errors in job analysis information. therefore. Uses of Performance Appraisals 1. human resource plans. Compensation Adjustment: Performance evaluations help decision-makers determine who should receive pay raises. 2. and how a job is worth to the organization.
training. General practice is that immediate superiors appraise the performance.follows the Supervisor Appraisal System. Reliance on inaccurate information may have led to inappropriate hiring. or counseling decisions. Ltd. direct and control the subordinate continuously. Ltd. 56 .system. transfers and good staffing decisions. The Mystic Monk Designs Pvt. and who observes the employee while performing the job. contents to be appraised. Moreover. Analysis Performance Appraisal is a continuous process in every large scale organization but unfortunately not so structured in Mystic Monk Designs Pvt. which in turn is reviewed by the department head/manager. The supervisors include only the superiors of the employee and the top management. 9. This is because supervisors are responsible for managing their subordinates and they have opportunity to observe. The Human Resource Manager is not even consulted by the top management. The other superiors having knowledge about the work of the employee and other department heads or managers are not included in the Supervisor Appraisal system.the Performance Appraisal by Consultants is the best-suited model: The appraiser may be any person who has thorough knowledge about the job content. Ltd.. they are responsible for successful performance of their subordinates. Recommendation For Mystic Monk Designs Pvt. standards of contents. Feedback to Human Resources: Good/bad performance throughout the organization indicates how well the human resource function is performing. With the company in the expansion mode having two plants and one upcoming there is the need of taking placement decisions like promotions.
Employees use The of top themselves. In this situation. Out of the typical appraisers as is Supervisors. However the top management must be well aware and take help of consultants while keeping employees at middle or top management levels. for Subordinates. they offer an excellent means for conducting evaluation processes in an objective way. consultants are trained and they observe the employee at work for sufficiently long time for the purpose of appraisal. training or development. Performance Appraisal Model for Mystic Monk Designs Pvt.. All assesses get an equal opportunity to show their position talents and capabilities and secure promotion based on merit.The appraiser should be capable of determining what is more important and what is relatively less important. Ltd.Assessment Centre Model In this approach individuals from various departments are brought together to spend two or three days working on an individual or group assignment similar to ones they would be handling when promoted. the company. of service suited best Peers. the 57 . Since evaluators know the position requirements intimately and are trained to perform the evaluation process in an objective manner. Users consultants and Consultants. Observers rank the performance of each and every participant in order of merit. The Consultants are engaged for appraisal when employees or employers do not trust supervisor appraisal and management does not trust the self appraisal or peer appraisal or subordinate appraisal. the management should focus on strategic planning and somehow minor issues for hiring of labor or line managers should be given to the consultant. The assessment centers are basically meant for evaluating the potential of candidates to be considered for promotion. He should prepare reports and make judgments without bias.
Such opportunities. This will also help top management to find out the real talents who can be well utilized in the new plant and can be delegated with higher responsibilities. when created on a regular basis. The centre enables individuals working in low status departments to compete with people from well known departments and enlarge their promotional chances. A considerable amount of research evidence is available to support the contention that people chosen by this method prove better than those chosen by other methods. will go a long way in improving the morale of promising candidates working in less important positions.performance ratings may find favor with majority of the employees. Obtain Top Manageme nt Commitme Design Physical Facilities Conduct Program Do Detailed Job Analysis Select Exercises and Participants Define Dimensions to Be Assessed Design Assessor Training Program Train Assesso rs Provide Feedback Evaluate Participants and Centre Against Job Success Criteria 58 .
Key Elements of Performance Appraisal Human Performance Performance Appraisal Employee Feedback Performance Measure PerformanceRelated Standards Human Resource Decisions Employee Records 59 .
Importance of Training Training is the most important technique of human resource development. environmental stimuli on the inherent. How training benefits the Organization • Leads to improved profitability and/or more positive attitudes toward profit orientation • Improves the job knowledge and skills at all levels of the organization • • • Improves the morale of the workforce Aids in organizational development Provides information for future needs in all areas of the organization 60 . which occurs as a result of the influence of external. Benefits of Training 1. It is defined as the systematic modification of behavior through learning. Organizational efficiency. instruction.TRAINING Meaning It is the set of activities that provide the opportunity to acquire and improve the job related skills. genetic disposition of the individual. progress and development to a greater extent depend on training. and development and planned experience. which occurs as a result of education. Training is learning processlearning is defined as more or less permanent change in behavior. productivity.
Recommendation The need for training is for every organization big or small. no organization establishment.• Creates an appropriate climate for growth. communication 2. The labor is on the contract basis so if they are given any training there is no surety that they will stay forever. There is limited capacity to adjust them in the company. Training is used continuously in every well run Increases job satisfaction and recognition Helps eliminate fear in attempting new tasks . Benefits to the Individual which in Turn Should Benefit The Organization • • Analysis It is observed that employees are given some sort of On-The-Job Training which can not be called as a proper training method. They find the training programs as wastage of time. The reasons behind it are the following: 1. old or newly established should provide training to all employees irrespective of their qualification. Ltd. 2. 3. and suitability for the job etc. Organizational Viability and Transformation Process: In the post quota scenario there is high competition for this export 61 can choose whether or not to train employees. Mystic Monk Designs Pvt. skill. The need for training arises in Mystic Monk Designs Pvt.due to the following reasons: 1. Ltd.conducts no structured training programs for the employees. Thus.
Ltd. 4.e. Job Instruction: This method is also known as training through step by step.: 1.manufacturing of high fashion apparels so if the company does not adapt itself to the changing factors in the environment. The employees in departments like production and quality should be trained about all the processes in the particular departments.. The line manager can teach the assembly line operator and similarly the senior merchandiser may direct the assistant merchandiser. Technological Advances: Every organization in order to survive and to be effective should adopt the latest technology. computerization and automation. 2. Training Methods Recommended For Mystic Monk Designs Pvt. it will lose its market share. 3. Job Rotation: This type of training involves the movement of the trainee from one job to another. and extension in new overseas markets the company must have a structure to train its employees. This method can be beneficial in Mystic Monk Designs Pvt. Ltd. So Mystic Monk Designs Pvt. 3. Adoption of latest technological means and methods will not be complete until they are manned by employees possessing skills to operate them.must take advantage of software like ERPS and should train the employees to enrich them in the areas of changing technical skills and knowledge from time to time. mechanization. Ltd. Organizational Complexity: With the emergence of increased mechanization and with the extension of operations to various regions of the NCR. Under this method the trainer explains the trainee the way of doing the jobs. i. Conference or Discussion: It is an Off-the-Job training method to train the professional and supervisory personnel. job knowledge and skills and allows him to do the job.where people can pose ideas to improve quality and 62 .
Training Aids: Films. It can be a good platform for both merchandising and production personnel to solve problems existing amongst. Stills can be shown to all the employees to improve their personality and working styles. 63 . 4. slides. Projections. Movies.productivity.
The following is the set of criteria.WAGE AND SALARY AND INCENTIVE STRUCTURE OF THE ORGANIZATION The Company Mystic Monk Designs Pvt.based in Gurgaon follow the pay structure broadly on the following occupational groupings: • • • • Managerial and Professional: Top. The wage structure is divided into three components: • • • The basic wage The variable dearness allowance he other allowances and incentives The basic wage of 60%. 25% house rent allowance and 15% of conveyances are provided by the company. concessions and commissions. which the company follows for basic wage as per the Fair Wages Committee (1948) • • • The experience involved The degree of skill The responsibilities undertaken and also 64 . Ltd. prerequisites. middle and junior Technical/supervisory Administrative and clerical Manual (workers): Highly skilled. unskilled By definition the wage means all remuneration (express or implied) capable of being expressed in terms of money including all allowances. The basic wage is fixed as price for labor/services rendered.
ESIS. Conveyance/Transport. 6500 and the ESI given is to those with salary above Rs. These allowances have been recommended by the Fourth Central Pay Commission (1986) and the High Powered Pay Commission (1988). The policies and programs are affected by the theoretical. Cellular phone. and Uniform. employment injury and related matters. The company provides the following allowances: Car. For the Technical and Worker class the technical knowledge is the primary criteria of deciding the payment. public policy. The salaries to all the occupational groupings are paid on the monthly basis. The Provident Fund is given to people with salary below Rs. Provident Fund. They represent a "substantial cost expense to the employer and a cost saving to the employee".7500. and pressure from unions and strongly by legal framework. labour market situation. Social Security Legislation Abided by the Company and Additional Benefits. Family. 65 The key consideration is to attract and retain . The ESIS provides benefits to employees in case of sickness. The additional benefits or Fringe Benefits are the non-wage benefits offered by the company to its employees. The Payment by Results is another system of linking workers' earnings to a measure of performance. Pay and benefit are important elements in Human Resource Management. employees. maternity. This last criterion is for recruiting the Senior Merchandisers and Senior Production Managers.• The salary and incentives provided by the previous company. Medical allowances. Overtime.
Gratuity and Pension are provided by the company. • • Social Security Hazards of Industrial Life: To avoid occupational disease caused by the very fine fibers during cutting of fabric the masks are provided. cellular phone. Methods adopted for fixation of salary Various factors affecting wages/salary level 1 Remuneration in comparable industries 2 Firms ability to pay 3 Cost of living 4 Productivity 5 Union pressure and strategies 6 Government legislations 66 . travel allowance and house rent. • For Senior Merchandiser and the Sr. • For minor accidents there is a clinic in the manufacturing unit and for major accidents the workers are taken to nearby hospital and are given compensation for the loss. Production Manager the company provides car.• Attendance Bonus: to encourage punctuality and reduce absenteeism • Concern for Security: As individual has been progressively replacing Joint Family System with the nuclear family so for old age and other emergencies Provident Fund.
cost of fringe benefit). allowances. Wages have to be fixed-cost of living Productivity The major factor for increase in the productivity is increase in the employee’s satisfaction. Government legislation Minimum Wage Act 1948 provides the following: • • • • • Minimum wages in certain employment Minimum time rate Minimum piece rate Guaranteed time rate Over time rate 67 . The strong financial situation is directly related to the higher wages for the employee Cost of living • Purchasing power maintained at same level. which brings about an increase in their contribution to organization. Total cost of employees (salaries.Firm’s ability to pay • • • • Productivity in organization Expenses industry has to bear Certain trend in price of product/services-charged by industry.
When production is not carried on in a large scale and modern techniques of production are not employed time wage system is not suitable. The wage becomes payable the moment the worker puts in work for a given period of time. it is called time rate wage.• Basic pay and DA (Dearness Allowance) Method adopted for fixation of Salary 1 Time wages Where basic wage is linked to time for which the worker works. Time wage –generally acceptable to trade unions Disadvantage of time wage system 1 Efficiency and payment are not correlated 68 . Observed advantages of using time wage system • • Time wage gives the worker a sense of security Worker can devote themselves to the job with great care and attention. the time generally is a day of eight hrs while for staff it is one month. • When the workers are paid some fixed time rate. If the production is standardized the productivity of individual worker can be measured. they will try to avoid over speeding and consequent damage to the machinery • • It is simple to calculate. In the case of operatives.
Minimum wages are also fixed on bases of minimum requirement of family. In all cases generally a minimum wage is fixed for the lowest category of unskilled work and others are fixed correlating it. basic wages are fixed for every job. skilled etc.2 There is no motivation 3 There will be variation the average cost of production which create difficulties in calculating cost of production 4 Job security offered to the employees may lead to lesser production Components of wages 1 Basic wage 2 Dearness allowance 3 Incentive wages 4 Other allowances Basic wage is dependent on the nature of one’s work if that determine wage fixation: 1 Education 2 Skill 3 Experience 4 Stress strain 5 Hazard The amount of wages has a direct relationship with the stress and strain involved in a job. while in others these are fixed for groups like unskilled. 69 . In some cases. semiskilled.
The basis upon which incentives are determined and the way in which they are administered can have a significant impact upon employee morale and productivity and thus the achievement of the organizational goal. Rewarding for merit not only improves the morale and productivity of the employees but it also helps to retain them in the organization. They just pay bonus to the employees once a year. Ltd. however. For that the piece rate system could work well for the export house. and is one of the main attractions for job seekers. • One of the major requirements of all the export houses is to deliver their goods on time. It can also be a main motivating or de-motivating factor for current employees.ANALYSIS OF THE FLAWS IN THE WAGE AND SALARY STRUCTURE OF MYSTIC MONK DESIGNS PVT. • Employee pay and benefits make up a considerable proportion of most organizations' total costs. Monetary as well as non-monetary rewards are useful for motivating the employees. Some people who are money motivated especially lower level employees. devising and running a reward strategy to attract and retain the right caliber of employees should be one of the most important roles for the HR department. For this they require to produce goods at a faster rate. However the lower level 70 . One of the components of pay is incentives and benefits. As such.. LTD. Incentives attempt to relate rewards directly to performance. Incentives play an important role for motivating an individual to perform his job. Mystic Monk Designs Pvt. monetary incentives can play an important role to increase their efficiency in terms of both quantity and quality. does not follow any incentive plan for its employees.
Those employees who perform their jobs better 71 should receive larger salary . Salaries are also decided according to the demand and supply of the labour in the market. Sometimes internal equity will tell you not to provide an employee with a salary increase. and by paying for performance. They will usually be happy to tell you because they want to have the benefit of your data just as much as you would like theirs. Also. Before fixing the pay rolls it would prove to be beneficial for the company to take these factors into considerations and also compare their salary structure with the other similar organizations. Managing internal equity is more important than external equity. than the salary of a person at another company. the employee will have a better basis for salary comparison because he or she has a better idea of what that employee's job and job performance is. All this creates a much higher potential for morale problems and turnover. In the short run this may be the right answer. but business necessity (the employee is leading a key project and is threatening to leave) may lead you to decide to provide the salary increase. You manage internal equity by paying people within a salary range. An employee is much more likely to know the salary of the person in the office next to him or her. • Link pay with job performance. Suggestive Improvements • Comparing pay to the labor market.workers that are tailors are paid on the monthly basis. But if they are paid on the basis of piece rate the output could be increased. but in the long run it can be costly. • Manage internal equity.
Ltd. Typically the plans can be established with participant involvement and are can be designed for specific also exist. The organization needs to do is establish an adequate performance appraisal system and establish a merit pay system. Gain sharing plans will allow employees to share in productivity gains in accordance with a pre-determined target. Variable pay systems are growing in popularity and can provide an excellent link between pay and job performance. However the company can put an incentive program like paying more to the workers who produce less defected garments. but company-wide programs can 72 .increases than those who do not.doesn’t provide for any incentives. The company can put such plan to improve productivity and efficiency. Also the upper level employees can be given incentive for proper and timely execution of each order. Mystic Monk Designs Pvt. • Giving incentives to improve quality. work groups (production department or merchandising department). • Gain sharing. There are many good examples of merit pay systems in the marketplace ranging from structured to informal.
social. 73 .HUMAN RELATIONS Importance of Understanding Human Relations Every employee is different from other so a manager must understand what causes this difference and how to cope with certain problems created because of the association of all these different individuals. Measures to Maintain Sound Human Relations • Frankness clears the misunderstanding and restores the good relation. • By helping the people perform their duties. • Effective communication improves the relations among people. But do not do this with over ambition. • By developing sensitivity to others’ feelings and an ability to appreciate others’ ideas. • By becoming a good leader the manager can bring cohesion in the group he leads and thus can contribute to the improvement of human relations. psychological wants of the people having relation with an organization which has the objective of increasing productivity”. Human Relations has been rightly defined in the words of Lee. Disputes can be effectively handled only when manager is effective in communication. “human relations are the medium through which both employees and the company mutually cooperate for the maximum satisfaction of the economic. • By praising the subordinates publicly even for the slight improvement.
This knowledge helps the manager to understand that why people react in a certain way. The cause of a person’s action is the result of an interaction between a stimulus and the person’s perception of that stimulus. emotional and social characteristics of a person. It is defined as the degree of readiness of an organization to pursue some designated goal and implies the determination of the nature and locus of the forces. he can be rational in his behavior instead of being emotional. Needs Drives Goals/Incentives 74 . Thus Personality is sum total of all the physical. circumstances that he is in and his earlier experience in life. personality. including the degree of readiness. mental. Motivation Meaning Motivation is derived from the word motive. If the manager understands all these factors. their wants and drives. This perception is determined by his background. Human Behavior Is Caused Every human action has a cause. A motive is an inner state that energizes. activates or moves and directs or channels behavior towards goals. Concept of Personality The behavior of any person partly depends on what he feels and thinks about him and partly on how he views the world and others.Understanding People: In order to understand people one must know the fundamentals of human behavior.
General Motives: These motives are unlearned but not physiologically based. security. Monetary motivation 75 . They include curiosity. Secondary Motives: These are closely tied to the learning concept. Though the company pays well to all its employees meeting their Physiological and Security needs but it need to provide all its employees Acceptance or Affiliation and Esteem Needs (Maslow’s Theory of Hierarchy of Needs). manipulation and activity motives and the affection motive. sleep. affiliation. Recommendation In order to motivate people positively the employees at all the levels of management can be rewarded financially. and avoidance of pain.(Deficiency) drives) (Deficiency with Direction) (Reduction of The Basic Motivation Process Types of Motives Primary Motives: These motives are unlearned and physiologically based. Important among them are: achievement. Analysis In today’s fast paced and cut throat competition world every person is bothered with some kind of depression and frustration. sex. status and immediate feedback. and maternal concern. power. A motive must be learned in order to be included in the secondary classification. They include hunger. Ltd. Being the suppliers of High fashion garments the employees are under constant pressure of meeting the deadlines of shipment.is not deprived of it too. The work culture in Mystic Monk Designs Pvt.
may include different incentives. wage plans. productive bonus schemes etc. The formal channels of communication 2. Information Ownership The organizational communication can be formal or informal. participation in management and social recognition in form of annual family gatherings in the company. 1. Leisker has described four factors that influence the effectiveness of communication. Non monetary motivation may include praise of work. The organizations’ authority structure 3. Organizational Communication Raymond V. Formal communication flows through the authority and responsibility channels of an organization which exists in order to: • • Measure and control outputs To coordinate complex activities in the system and relate the sub system to the total systems • • • To regulate response to external environment Coordinate resource allocations Create a climate within which the organization can adjust its output as it receives. and 4. and process feedback The advantages of formal communication include: 76 . Job specifications. Formal communication is an official communication having official support and sanction.
Such a system also helps in knowing the requirement of candidates at any post. e-mail between the merchandising department. The intra communication is aided by Local Area Network. Ltd. It sometimes spread wrong information and rumours It distorts information It overlooks superiors 77 .• • • Providing correct information Having official support with authority Handling of message efficiently The drawbacks include: • Delay in sending immediate information to official channels • • Absence of immediate feedback Lack of ability to communicate upward Similarly Informal Communication suffers from various drawbacks: • • • Analysis Mystic Monk Designs Pvt. Recommendation There is need to have an Enterprise Resource Planning System to know about the profile of every employee of the company right from gateman to top manager.lacks proper software to integrate the whole value chain right from shop floor to the cabin of the top management.
in addition to the compensation paid in the form of wage or salary. 78 . leave for maternity. Balcher defines these benefits as.FRINGE BENEFITS The term fringe benefits refer to various extra benefits provided to employee. holiday. leave travel pay.” (Though the company offers most of the fringe benefits the following list contains all the fringe benefits that are supposed to be offered by the company: 1. overtime pay. “ those benefits which are provided by an employer to or for the benefit of an employee and which are not in the form of wages. disability allowance. List of Fringe Benefits that should be offered by “Mystic Monk Designs Pvt. jobs to sons/daughter of the employees and the like. salaries and time related payment”. lay-off pay. performance. cost of living bonus. Cockmar. retiring rooms. 2. leave for grievances. For Health Protection: Benefits under this head include accident insurance. technological adjustment pay. “any wage cost not directly connected with the employees’ productive effort. defined fringe benefit as. For Employment Security: Benefits under this head include unemployment insurance. Fringe benefits are those monetary and non9monetary benefits given to the employees during and post-employment period. which are connected with employment but not to the employees’ contribution to the organization. Ltd. leave for negotiation. service or sacrifice”. health insurance. call back pay.
For Old Age and Retirement: 4. d. medical care. e. Extra Pay for Time Worked Payment for Time not Worked: This category includes: a. For Personnel Identification. employees are entitled to lay0off compensation at the rate of 50% of the total of the basic wage and dearness allowance for the period of lay-off except weekly holidays. Hours of work: b.hospitalization. 3. Holiday pay. Employees Security: Physical and job security to the employee should be also provided with a view to promoting security to the employee and his family members: a. Retrenchment Compensation: Industrial disputes Act 1947 provides for the payment of compensation in case of lay-off and retirement. Shift premium. Payment for Time Not Worked. life insurance. 79 . Paid holiday. 6. Lay-off compensation :In case of lat-off. c. sick benefits sick leave etc. Participation and Stimulation: 5. Paid vacation. b.
Voluntary Arrangements: Most of the large organizations provide health services over and above the legal requirement to their employees free of cost by setting up hospitals. d. Sickness benefit. Employees State Insurance Act 1948. These include: i. e. unhealthy working conditions and to protect worker’s capacity. 1923. Consumer societies. c. clinics. provision for the payment of compensation has also been under Workmen’s Compensation Act. dispensaries and homoeopathic dispensaries. Canteens. Disablement benefit. Credit societies. Housing. iv. ii. deals comprehensively about the health benefits to be provide. Welfare and Recreational Facilities: These include a. Workmen’s Compensation: In addition to safety and health measures. clinical and dispensary facilities are provided by organization not only to employees but also to their family members. b. Maternity benefit. Health Benefits: Today various medical services like hospital.Safety and Health: Employee’s safety and health should be taken care of in order to protect the employee against accidents. 80 . Legal aid. iii. Medical benefit.
g. Provident fund. Welfare organization. k. Educational facilities. Employee counseling. Pension. j. c. Transportation. Holiday homes. These benefits include: a. Medical benefit. with a view to create a feeling of security about old age. b. and l. 81 . high living cost and increasing aspirations of the employees and his family members. i. Parties and picnics. Deposit linked insurance. employer provides some benefits to the employees. The saving capacity of the employee is very low due to lower wages. after retirement and during old age. As such. Miscellaneous. h. Old Age Retirement Benefits Industrial life generally breaks family system.f. Gratuity and e. d.
We conclude this report by providing our model of organization structure. There will be all together twelve people working in the human resource department. Human resource department is pervasive at all levels of the organization. There will be four junior human resource managers taking care of all the role and responsibilities in relation to lower level job position and the employees. Human Relations has been rightly defined in the words of Lee, “human relations are the medium through which both employees and the company mutually cooperate for the maximum satisfaction of the economic, social, psychological wants of the people having relation with an organization which has the objective of increasing productivity”.
Such an organization structure will enable “Mystic Monk Designs Pvt. Ltd.” to grow in a very harmonious way.
Management Management •
Human Resource C.B.Gupta Human Resource T.N.Chabra Exporting garments from India by Nair,
Pradeep Kaul and Rajesh. • Martin and Will. • by Mishra and Sanjeev. India’s Garment sector- a policy analysis The Abolition of MFA and its impact by
Newspapers: Economic Times, Times of
India, Hindustan times, Magazines: • • • India Today (May 13, 1995) Export Import Trade Flash (June 1997) Business World.
PROJECT REPORT ON HUMAN RESOURCE PLANNING AND ITS RELATION TO GARMENT MANUFACTURING At
MYSTIC MONK DESIGNS PVT. LTD.
Roll No. K6BBA052
ASIA PACIFIC INSTITUTE OF MANAGEMENT
3 & 4, INSTITUTIONAL AREA, JASOLA VIHAR, NEW DELHI
15. 10. 8. 17. 1 2 3 4 5 6 7 8 15 21 30 42 49 60 66 70 79 88 89 Introduction to Human Resource Management Functions of HRM Job Design Human Resource planning Recruitment Selection Performance appraisal Training Wages and salary and incentive structure of the organization Human Relations Conclusion Bibliography 86 . 3. 19. 5. 11. 7. Introduction Objectives Scope and Limitations Research Methodology Literature Review Company Profile Problem Definition Topics Page No. 4. 6.LIST OF TABLES Sr. 1. 9. 13. 14. 16. 18. no. 2. 12.
ACKNOWLEDGEMENT I have had considerable help and support in making this project report a reality. I must thank the employees of the Mystic Monk Designs Pvt. At the end I would like to thank God who was always there with me & will always be supporting me in our work. Rahul Rajpal (Director). First and foremost a gratitude goes to Mr. who provided me all the guidance and support in realizing the dissertation. Ltd. I am grateful to all those who obliged me with their support and helped me in converting my collection of data and information into a research study. (ADITYA SIKANDER) 87 .
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.