Human Resource Management

(HRM)
 Part 6- Maintaining and Retaining Human
Resources
1. Job changes- Transfers, promotions and
Separations
2. Absenteeism and Labor Turnover
3. Employee Health and Safety
4. Employee Welfare (Employee
Benefits)
5. Social Security
6. Discipline and Grievance
6.1. Job changes- Transfers, Promotions and Separations

• The movement of personnel within an

organization can be termed as
promotions, transfers, demotions and
separations.
 6.1. Job changes- Transfers, Promotions and Separations
• Promotion
– Promotion is advancement of an employee to a better job -
better in terms of greater responsibility, more prestige or
status, greater skill and especially increased rate of pay or
salary..
– The upward assignment of an individual in an organizations
hierarchy, accompanied by increased responsibilities,
enhances status and usually with increased income though
not always so.
– Promotion has an in-built motivational value as it elevates
the authority, power and status of an employee within an
organization.
• Seniority vs. Merit in Promotions
 6.1. Job changes- Transfers, Promotions and Separations
• Types of Promotion
– Horizontal promotion: When an employee is shifted in
the same category. Example: A junior clerk promoted to
senior clerk is such an example.
– Vertical Promotion: This is the kind of promotion when an
employee is promoted from a lower category to higher
category involving increase in salary, status, authority and
responsibility. Generally, promotion means „vertical
promotion‟.
– Dry Promotion: When promotion is made without
increase in salary; Such promotion is made either there is
resource/fund crunch in the organization or some
employees hanker more for status or authority than money.
 6.1. Job changes- Transfers, Promotions and Separations
• Promotion
– Merit as a basis of Promotion: skill, knowledge,
ability, efficiency as aptitude as measured from
educational, training and past employment record.
– Seniority as a Basis of Promotion: refers to relative
length of service in the same job and in the same
organization. The logic behind this as a basis of promotion
is that there is a positive correlation between the length of
service in the same job and the amount of knowledge and
the level of skill acquired by an employee is an
organization.
 6.1. Job changes- Transfers, Promotions and Separations
• Purposes of Promotions to:
– Recognize employee‟s performance and commitment
– Motivate him towards better performance;
– Develop competitive spirit among employees for acquiring
knowledge and skills for higher level jobs;
– Retain skilled and talented employees;
– Reduce discontent and unrest;
– To fill up job‟s vacant position that is created due to
retirement, resignation or demise of an employee utilize
more effectively the knowledge and skills of employees;
and
– Attract suitable and competent employees.
 6.1. Job changes- Transfers, Promotions and Separations
• Demotion
– Demotion is a process by which the employee is
downgraded and sent to a lower position from the one he is
holding at present.
– It is one type of internal mobility and opposite of
promotion
– It is the reassignment of a lower level job to an employee
with delegation of responsibilities and authority required to
perform that lower level job and normally with lower level
pay „
– Organizations use demotion less frequently as it affects the
employee‟s career prospects and morale
 6.1. Job changes- Transfers, Promotions and Separations
• Transfer
– A transfer is a change in job assignment. It does not involve
a change in responsibility and status.
– A movement of an employee between equivalent positions
at periodical intervals is called “transfer”.
– A transfer therefore does not involve a change of
responsibility or compensation.
• Transfer Procedures
– Intra-departmental Transfers: from one section to another
in the same department
– Inter-departmental Transfers: from one department to
another within the same organization
– Branch Transfers: from one branch to another or from
head office to branch or from branch to head office.
 6.1. Job changes- Transfers, Promotions and Separations
• Reasons of Transfer:
– Shortage/surplus of employees in one department
– Conflict (incompatibility) between supervisor or co
workers
– To correct initial misplacement decisions
– Change in interests and capabilities of individual
– Productivity of employee has declined due to monotony of
job
– The employee health or age may inhibit him to work
effectively in present job
– Family issues (spouse job)
– Keeping employee motivated and develop knowledge level
of employee.
 6.1. Job changes- Transfers, Promotions and Separations
• Separation
– Separation means termination of service or agreement
with the organization for one or other reason.
• Forms of Separation
– Resignation: A resignation is a voluntary separation.
When a termination is initiated by the employee
him/herself,
– Discharge: A discharge involves permanent separation of
an employee from the organization because of poor
performance, violation of rules or poor code of conduct.
 6.1. Job changes- Transfers, Promotions and Separations
• Forms of Separation
– Retrenchment: is a permanent termination of the services
of an employee for economic reasons in a going concern.
– Layoff: in contrast to dismissals, are terminations,
sometimes temporary, required for business needs unrelated
to worker behavior or performance.
– Golden Handshake: the employees with a certain
minimum service can opt for voluntary retirement and get a
fat lump sum in return.
– Retirement:
 6.2. Absenteeism and Labor Turnover
• Absenteeism
– Absenteeism means unauthorized absence of the worker
from his job or the absence of worker when work is
available.
– In other words, it signifies the absence of an employee
from work when he is scheduled to be at work; it is
unauthorized, unexplained, avoidable band willful absence
from work.
 6.2. Absenteeism and Labor Turnover
• Causes of Absenteeism
– Maladjustment with Factory Conditions
– Social and Religious Functions
– Stress
– Alcoholism and Drug Abuse
– Unsatisfactory Housing Conditions
– Sickness
– Unhealthy Working Conditions
– Absence of Adequate Welfare Facilities
– Managerial Attitude- treatment of in a sub-human
condition.
– Over-identification with Family Affairs – family related
problems
– Desire for Money, Status and Power
 6.2. Absenteeism and Labor Turnover
• Labor Turnover
– Labor turnover, is the rate of change in the number of
employees of a concern during a definite period.
– It is the process in which employees leave an organization
and have to be replaced.
– It is a measure of the extent to which old employees leave
and new employees enter the service of the concern.
– Labor turnover is the cause and effect of instability of
employment, apart from being a measure of the morale and
efficiency or otherwise of workers.
– Labor turnover studies are helpful in indicating that
something is wrong with the organization.
 6.2. Absenteeism and Labor Turnover
• Labor turnover involves costs not only in human
values but also in money. These include:
– Costs incurred in hiring and training each new employee.
– Costs of overtime work required from regular workers in
order to maintain the required
– levels of production until the new employee can do his
share.
– Loss of production in the interval between separation of the
former employee and the time when his replacement is
fully broken in.
– Expense in equipment or facilities not being fully utilized
during the training period.
 6.2. Absenteeism and Labor Turnover
• Labor turnover involves costs not only in human
values but also in money. These include:
– Costs incurred in hiring and training each new employee.
– Costs of overtime work required from regular workers in
order to maintain the required
– levels of production until the new employee can do his
share.
– Loss of production in the interval between separation of the
former employee and the time when his replacement is
fully broken in.
– Expense in equipment or facilities not being fully utilized
during the training period.
 6.2. Absenteeism and Labor Turnover
• Measures to Reduce Labor Turnover
– Increase pay levels to meet competition.
– Introduce procedures for relating rewards to performance.
– Provide better career opportunities.
– Appropriate redressing mechanisms of grievances.
– Increase group cohesiveness through reorganization .
– Improve working conditions,
– Improve recruitment and
– Provide adequate training or adjustment periods when
working conditions change.
 6.3. Employee Health and Safety
• Health at the individual employee level is not just the
absence of illness but also includes positive health or
optimal functioning
• Internal factors in health and safety include:
– Job stress
– Safety
– Diversity and discrimination
– Sexual harassment, violence, and incivility
• Health and safety management includes:
– Identify the hazards
– Control or prevent the hazards
– Identify potential hazards
– Teach employees to do all of the above
 6.3. Employee Health and Safety
• According to ILO/WHO committee on
organizational health, industrial health is:
– The prevention and maintenance of physical, mental and
social well-being of workers in all occupations
– Prevention among workers of ill-health caused by the
working conditions
– Protection of workers in their employment from risks
resulting from factors adverse to health, and
– Placing and maintenance of the worker in an occupational
environment adapted to his physical and psychological
equipment. stress
• Some of the common health issues in an organization:
Smoking; Alcoholism; Drug use; HIV/AIDS
 6.3. Employee Health and Safety
• Five basic principles must govern the safety
program of an organization.
– Factors resulting to accidents have to be traced out,
analyzed and eliminated.
– Identify potential hazards, provide effective safety facilities
and equipment take prompt remedial action.
– The top management must continuously monitor the safety
performance.
– Management and supervision must be fully accountable for
safety performance in the work place.
– All employees should be given thorough training in safe
methods of work and should receive continuing education
and guidance on eliminating safety hazards and on
prevention of accidents
 6.4. Employee Welfare (Employee Benefits)
• Employee Welfare
– Employee welfare means “the efforts to make life worth
living for workmen.”
– Employee welfare is also anything done for the comfort
and improvement, intellectual or social, of the employees
over and above the wages paid which is not a necessity of
the industry.
– Organization should do something for welfare of workers
and public.
• Welfare of employees lead to better work
• Welfare includes physical, moral, mental and emotional well being
of employees
• Welfare of employees (doing well) is responsibility of employer,
government and labor unions
 6.4. Employee Welfare (Employee Benefits)
• Employee welfare depends on overcoming personal crisis,
family problems and work place problems. Removal of these
problems leads to healthy and more productive years of service
to the employees.
• Some Employee Welfare Programs
• Housing, bachelor quarters, family residence
• Roads, lighting, parks, playground
• Schools, nursery
• Markets
• Transport
• Health and Medical Services
• Recreation: games, clubs, cultural programs, festival
celebration
• Community Leadership Development: counseling of elders,
community services for children, youth and women
 6.5. Social Security
• Social security system comprises health and unemployment
insurance, family allowances, provident funds, pensions and
gratuity schemes, and widow„s and survivor„s allowances.
• Social Security provides limited income to retired individuals.
• Social Security
– financed by equal employee and employer contributions,
based on a percentage of earnings
– provides income for retirees, disabled workers and
surviving dependents
– provides some health insurance coverage through Medicare
 6.6. Discipline and Grievance
• Discipline
– Discipline means getting obedience to rules and
regulations of the organization. Discipline is absolutely
essential for the smooth running of business.
– Discipline is the force that prompts an individual or a group
to observe the rules, regulations and procedures which are
deemed to be necessary to the attainment of an objective; it
is force or fear of force which restrain an individual or a
group from doing things which are deemed to be
destructive of group objectives. It is also the exercise of
restraint or the enforcement of penalties for the violation of
group regulations.”
– Discipline refers to the set of actions imposed by an
organization on its employees for failure to follow the
organizations rules, standards or policies.
 6.6. Discipline and Grievance
• Purpose of Discipline
– Correct/improve performance and/or work behavior:
Supervisors have the duty to review and encourage
satisfactory job performance of employees and also have
to address cases of unacceptable personal conduct
– Provide specifics to employee: Discipline procedures
provide a process to address specifics to the employee on
concerns with performance and/or work behavior and what
corrective action or improvement is expected.
– Maintain consistency in the work unit: The process also
help maintain consistency in the work place in the fair and
equal treatment of all employees
– Document: The process provides necessary documentation
to both the employee and management regarding
performance and/or personnel conduct issues.
 6.6. Discipline and Grievance
• Causes Of Discipline Problems
– Causes Related To the Worker
• Illiteracy and low intellectual level of workers.
• Workers personal problems like their fears, hope,
aspirations etc.
• Inborn tendencies of workers to flout rules.
– Causes Related To the Socio-Cultural Factors -
• Misunderstanding and rivalry among workers.
• Discrimination based on caste, color, sex, place in
imposing penalties.
 6.6. Discipline and Grievance
• Causes Of Discipline Problems
– Causes Related To the Work Environment –
• Bad working conditions.
• Defective supervision
• Non-placement of right person on the right job.
– Causes Related To the Management Practices –
• Lack of clarity in rules & regulation as laid out by the
top management.
• Faulty performance appraisal systems leading to
favoritism thereby generating indiscipline.
• Absence of sympathetic and scientific management
 6.6. Discipline and Grievance
• Standardized of Disciplinary Procedure
– Notification
– Reasonable rule
– Investigation before the discipline
– Fair investigation
– Proof of guilt
– Absence of discrimination
– Reasonable penalty
– The right to appeal
 6.6. Discipline and Grievance
• Employee Discipline Approaches:
– Progressive Discipline: steps in progressive
discipline are:
• Verbal Discussion →Verbal Discussion → Written
Assessment →Suspension → Termination
 Positive Discipline
 Employees plays active role in changing own behavior
 Emphasis on change, not punishment
 Management intervenes as more of a counselor
 Focus on learning from past mistakes
 Requires training management and is time consuming
 Positive effects on bottom line
 6.6. Discipline and Grievance
• Grievance
– Grievance can be defined as “...any discontent or
dissatisfaction, whether exposed or not, whether valid or
not, arising out of anything connected with the company
which an employee thinks, believes or even feels to be
unfair, unjust or inequitable.”
– A grievance is usually more formal in character than a
complaint.
– A grievance may be understood as an employee‟s
dissatisfaction or feeling of personal injustice relating to his
or her employment relationship.
– A grievance is generally well- defined in a collective
bargaining agreement.
 6.6. Discipline and Grievance
• Grievance Procedures:
– There are some condition which may give rise to A
grievance are like
• A violation of law,
• A violation of the intent of the parties as stipulated
during contract negotiation ,
• A violation of company rules,
• A change in working conditions or past company
practices and
• A violation of health and /or safety standards.
 6.6. Discipline and Grievance
• Grievance Procedures:
– It is resolved by set procedure :
• How the grievance will be imitated?
• The number of steps in the process.
• Who will represent each party?
• The specified number of working days within
which the grievance must be taken on the next
step in the hearing.
• What is the difference between HRM and PM?
• Why we need HRP?
• What is the difference between selection and
recruitment?
• Define training and development?