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THANKS TO THE FEEDBACK GENEROUSLY FORWARDED BY THE PROFESSORS OF INSTITUTE, & STUDENTS, - I HAVE LITERALLY CARRIED OUT A RADICAL APPROACH TO GIVE A REFRESHINGLY FRESH LOOK TO THE CONTENTS OF THE HUMAN RESOURCE MANAGEMENT FROM THE ANCIENT ERA TO ITS PRESENT AVATAR. I TOOK ALL THE NECESSARY STEPS TO PREPARE THIS PROJECT & TO MAKE IT WORTH FOR THE FUTURE.I HEREBY DECLARE THAT ALL THE ASPECTS COVERED IN THIS PROJECT ARE TRUE TO THE BEST OF MY KNOWLEDGE. I WANT TO GIVE MY HEARTHFULLY THANKXS TO SIR. N.L . BHARTI FOR PROVIDING ME A CLEAR IDEA REGARDING THE CREATION OF THE PROJECT. (RAVI PRATAP SINGH)
NATURE OF HRM 9. JOB ROTATION. TEAM EFFECTIVENESS 14. FORCES CHANGING HRM 11. EVALUTION OF HRM METHODS (A) TRADITIONAL HRM (B) STRATEGIC HRM (C) TRADITIONAL VS STRATEGIC HRM 12. BIBLIOGRAPHY 26. CONCLUSION 25.INDEX 1. HUMAN RESOURCE PLANNING 15. MOTIVATION 18. HRM IMPLEMENTATION ACTIVITIES 8. FUNCTIONS OF HRM 7. DIFFERENCE BETWEEN PERSONNEL MANAGEMENT & HRM 5.RM 2. HRM IN THE NEW MILLENNIUM 22. THANKYOU . HRP SYSTEM 16. JOB ENRICHMENT 19. INTRODUCTION OF H. OBJECTIVES OF HRM 6. SHIFT FROM TRADITIONAL TO NEW HRM 21. DIFFICULTIES FACED BY HRM IN INDIAN ECONOMY 23. ORGANISATIONAL STRUCTURE 20. DEFINITION OF HRM 4. CASE STUDY 24. JOB DESIGN. PERFORMANCE APPRAISAL 17. EVOLUTION OF THE HRM 3. HUMAN RESOURCE DEVELOPMENT 13. FOCUS OF HRM 10.
Further. Early human resource management. The main aim behind these programs was to assist immigrants in learning English and acquiring ho using and medical care. and evaluation. these techniques used to promote supervisory training to ensure an increase in productivity. Also. As such. recruitment and management of the recruited individuals gained vitality. And turns out it was not Donald Trump who started "the apprentice" system.More advanced HRM functions were developed as early as 1000 and 2000 B. implementation. there was a blaring need for Hu man Resource Management.To achieve equilibrium between employer and employee goals and needs. especially at a time when the world has become a global village and economies are in a state of flux. this led them to recruit a lot of people. the Chinese are known to be the first to use employee screening techniques. dynamic and challenging task. Mechanisms were developed for t he selection of tribal leaders. Consequently.C. This led to the HR department being more capable of . in general. Again. With the advent of "labour unions" in the 1790's.INTRODUCTION OF HRM Human resources are the most valuable and unique assets of an organization. employee satisfaction. HRM departments focus on these three general functio ns or activities: planning. and compliance with employment-related laws. the power in the hands of the employees multiplied considerably and increased at a rapid pace by the 1800s and furthermore in the 1900s. The successful management of an organization's human resources is an exciting. way back in 1115 B.With the Industrial Revolution. ages before the medieval times. to create employment for all the immigrants. It aimed at helping immigrants in the process of adjusting to their jobs and to an "American" life. HRM encompasses efforts to promote personal development. the industrial revolution brought in maddening amounts of immigration. This led them to require an extremely wellorganized structure.C. came the conversion of the US economy from agriculture-based to industry-based. followed a social welfare approach. More so. They were the Greek and Babylonian civilizations. EVOLUTION OF HRM Key principles and practices associated with HRM date back to the beginning of mankind. The goal of HRM is to maximize the productivity of an organization by optimizing the effectiveness of its employees while simultaneously improving the work life of employees and treating employees as valuable resources.
In the 1960s and 1970s the federal government furthered the HRM movement with a battery of regulations created to enforce fair treatment of workers. In 1902 National Cash Register formed a similar department to handle worker grievances. training. National Cash Register followed suit in 1902 by forming a separate department to handle employee grievances. began to emphasize personal development and improved working conditions as a means of motivating employees. and other related issues. virtually all medium -sized and large companies and institutions had some type of HRM program in place to handle recruitment. influenced by the famous Hawthorne productivity studies and similar research. wage management and other employee -related functions. Personnel Managers started seeing more sunshine since the Wagner's Act (aka National Labor Relations Act) in 1935. Furthermore. wage administration. These re gulations created an entirely new legal role for HRM professionals. the fact that it was the HR department that got the management and the labor unions to come on common grounds. record keeping. The other would be Frederick W. and many other functions that would later be relegated to HRM departments at most large B. That shift became especially pronounced after World War II. record keeping. the Employee Retirement Income Security Act of 1974 (ERISA). when a shortage of skilled labor forced companies to pay more attention to workers' needs. Because of these acts. companies began placing greater emphasis on HRM in order to avoid lawsuits for violating this legislation. thanks to the Hawthorne studies around the 1930s to 1940s.F. during the 1970s. The two feats that were quintessential to the importance of HR were. HRM's importance . They basically worked on getting the management to see things from the labor perspective and grant them medical and educational benefits. There was a shift in focus from worker's efficiency to efficiency through work satisfaction. such as the Equal Pay Act of 1963.politics and diplomacy. Employers. HRM gained status as a recognized profession with the advent of human resource programs in colleges. Taylor's (1856-1915) Scientific Management.F. Goodrich Company in 1900. Goodrich Company were the pioneers in designing a corporate employee department to address the concerns of the employees in 1900. During the 1930s and 1940s the general focus of HRM changed from a focus on worker efficiency and skills to employee satisfaction. regulatory compliance. dismissal. This book had tremendous impact on attaining better productivity from low-level production workers. The first corporate employment department designed to address employee concerns was created by the B. and the Occupational Safety and Health Act of 1970. the Civil Rights Act of 1964. By the end of the 1970s.
maintenance and separation of human resources to the end that individual. directing and controlling of the procurement. fired. DEFINITION OF HRM Definition 1 ± Integration ³HRM is a series of integrated decisions that form the employment relationships. Other factors contributing to the importance of HRM during the 1980s and 1990s were increasing education levels. or social action. corporate restructuring (including reductions in middle management . . more women in the workforce. Shifting demographics forced changes in the way workers were hired. integration. required t e skills of HRM professionals to adapt organi ational structures to a new generation of workers wit different attitudes about aut orit and conformit . and new federal and state regulations. for example. and managed. organi ational and social objectives are accomplished. Core elements of HRM y People: Organi ations mean people. Since every organi ation is made up of people. slower domestic market growth. health. train and develop members for an organi ation. motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organi ation are essential to achieving organi ational objectives.´ Definition 3 ± Applicability ³HRM planning.´ Definition 2 ± Influencing ³HRM is concerned with the people dimensions in management. C anging workforce values. developing their skills. MEANING OF HRM HRM is management function that helps managers to recruit. organi ing. development. compensation. Obviously HRM is concerned with the people¶s dimensions in organi ations. acquiring their services. select. greater international competition. education. their quality contributes to the ability of the organi ations and the employees to achieve their objectives. business. recreational. This is true. It is the people who staff and manage organi ations. growth of service and whitecollar jobs. regardless of the type of the organi ation ± government.continued to grow during t e 1980s for several reasons.
Well. 1. performance management. y Influence: Decisions must influence the effectiveness of organization resulting into betterment of services to customers in the form of high quality products supplied at reasonable cost. y Integration & Consistency: Decisions regarding people must be integrated and consistent. Appropriate human resources assure an organization that the right number and kind of people are available at the right time and place so that organizational needs can be met. there are many experts who have come up with many differences between the two. such as education. maintaining and remunerating employees in organizations. change management and taking care of exits from the company to round off the activities. This approach focuses on the objectives and outcomes of the HRM . developing. The fancy word for ³people. It is the process of managing people in organizations in a structured and thorough manner. recreation and the like. It is the management of people in organizations from a macro perspective i. pay anand perks setting and management.´ The human resources department within an organization.e.y Manage ment: HRM involves application of management functions and principles for acquisitioning. Human Resources are Personnel pool available to an organization. years ago known as the ³personnel department. This is the traditional definition of HRM which leads some experts to define it as a modern version of the Personnel Management function that was used earlier. managing people in the form of a collective relationship between management and employees. HRM is a much broader term as compared to Personnel management. health. These experts say that the two terms ± HRM and Personnel management ± have no difference in their meaning. retention of people. Definition2. and can be used interchangeably. The most important resources in any organization are its human resources. This covers the fields of staffing (hiring people). DIFFERENCE BETWEEN PERSONNEL MANAGEMENT & HRM Some experts says that there are no basic differences betwe en Human Resource Management and Personnel management.´ manages the administrative aspects of the employees. the difference between the two can be described by the following definitions: Defintion 1. y Applicability: HRM principles are applicable to business as well as non business organizations too.
Payroll. No wonder that some MNC¶s (Multinationals) call the HR managers as People Managers. In fact. The key difference is HRM in recent times is about fulfilling management objectives of providing and deploying people an d a greater emphasis on planning. and Retention etc. the HR manager or the people manager is no longer seen as someone who takes care of the activities described in the traditional way. What this means is that the HR function in contemporary organizations is concerned with the notions of people enabling. Whatever the definition we use the answer to the question as to ³what is HRM?´ is that it is all about people in organizations.function. Soci t l O j ctiv : To be ethically and socially responsible to the needs and challenges of the society while minimizing the negative impact of such demands upon the organization . Instead. In the 21st century organizations. 4. most organizations have different departments dealing with Staffing. people development and a focus on making the ³employment relationship´ fulfilling for both the management and employees. 3. 2. Functional O j ctiv : To maintain department¶s contribution and level of services at a level appropriate to the organization¶s needs. Personal O jectives: . People Enablers and the practice as people management. These two definitions emphasize the difference between Personnel Management and human resource management . OBJECTIVES OF HRM 1. the HR manager is responsible for managing employee expectations vis -à-vis the management objectives and reconciling both to ensure employee fulfilment and realization of management objectives. HRM is only means to achieve to assist the organization with its primary objectives. monitoring and control. O iz tional O j ctiv : To recognize the role of HRM in bringing about organizational effectiveness.Personnel management is essentially ³workforce´ centered whereas human resource management is ³resource´ centred.
To assist employees in achieving their personal goals. . at least in so far as these goals enhance the individual¶s contribution to the organi ation. Human resource or manpower planning. Human Resource Management undertakes the following activities: 1. This is necessary to maintain employee performance and satisfaction for the purpose of maintaining. retaining and motivating the employees in the organi ation. HRM Objectives Social Objectives (3) Supporti HRM Functions Legal Compliance Benefits Organi ational Objectives (7) Union Management Relations Human Resource Planning Employee Relations Recruitment & Selection Training & Development Performance Appraisals Placement & Orientation Functional Objectives (3) Employee Assessment Performance Appraisals Placement & Orientation Personal Objectives (5) Employee Assessment Training & Development Performance Appraisals Placement & Orientation Compensation Employee Assessment HRM FUNCTIONS In order to achieve the above objectives.
8. 17. Forecasting manpower needs etc. Taking corrective steps such as transfer from one job to another. 15. 3. Job Rotation. 4. Training and development of employees. . Aiding in the self-development of employees at all levels. Developing and maintaining motivation for workers by providing incentives. 11. union demands and other personnel benefits. Recruitment. 10. selection and placement of personnel. Quality Circle. labor market conditions. Organizing: Organi ing manpower and material resources by creating authorities and responsibilities for the achievement of organi ational goals and objectives. 16. Managerial Functions of HRM 1. 7. Social security and welfare of employees. Reviewing and auditing man¬power management in the organi ation 14. Collective bargaining. Potential Appraisal. 6. Planning: Plan and research about wage trends. 5. Setting general and specific management policy for organi ational relationship. Feedback Counseling.2. 2. Organi ation development and Quality of Working Life. contract negotiation and grievance handling. Role Analysis for job occupants. 9. Appraisal of performance of employees. Staffing the organi ation. 12. Remuneration of employees. 13.
ACQUISITION. 5. Staffing: Recruitment & Selection 4. Directing: Issuance of orders and instructions. death. HRM IMPLEMENTATION ACTI ITIES To fulfill their basic role and achieve their goals. HRM professionals and departments engage in a variety of activities in order to execute their human resource plans. development. and maintenance. Maintenance: Sustaining and improving working conditions. lay offs. Recruitment and Selection. Procurement: Planning. terminations. Development: Training. Operational Functions of HRM 1. each of which includes related legal responsibilities: acquisition. medical sickness etc. Observations and comparisons of deviations. 3. 2. 4. Compensation: Wage and Salary determination and administration Integration: Integration of human resources with organi ation. . Controlling: Regulating personnel activities and policies according to plans. HRM implementation activities fall into four functional groups. providing guidance and motivation of employees to follow the path laid-down. employee communication 6. Career planning and counseling. 5.3. Induction and Placement. Development. compensation. retentions. Separations: Managing separations caused by resignations.
Acquisition duties consist of human resource planning for employees. which includes activities related to analyzing employment needs. building skill inventories. The HRM training and education role may encompass a wide variety of tasks. The second major HRM function. Training and de elopment activities include the determination. Orientation programs. Preventing a high turnover rate among younger recruits. and analysis of educat ional programs. statistical analysis. The basic goal of appraisal is to provide feedback to employees concerning their performance. which can reduce unnecessary employment costs and liabilities and increase employee morale that would otherwise suffer in the event of lay-offs. COMPENSATION. mentoring. correct weaknesses. Sustaining stable workforce levels during ups and downs in output. depending on the type and extent of different programs. This feedback allows them to evaluate the appropriateness of their behavior in the eyes of their coworkers and managers. are usually necessary to acclimate new hires to the company. design. and new skills programs. and improve their contribution. Reducing problems associated with replacing key decision makers in the event of an unexpected absence. HRM professionals must devise uniform appraisal standard s. execution. human resource development. and then evaluate and follow up on the effectiveness of performance reviews. . determining the necessary skills for positions. develop review techniques. for example. Four specific goals of effective human resource planning are: 1. job rotation. DEVELOPMENT. These tasks may be accomplished using such tools and techniques as questionnaires. and designing career path charts. Making it possible for financial resource managers to efficiently plan departmental budgets. train managers to administer the appraisals. Training initiatives may include apprenticeship. In any case. 4. 2. the HRM professional ideally is aware of the fundamentals of learning and motivation. identifying job and industry trends. 3. interviews. and must carefully design effective training and development programs that benefit the overall organization as well as the individual. internship. and forecasting future employment levels and skill requirements. refers to performance appraisal and training activities.
handling grievances related to misconduct such as theft or sexual harassment. encompasses HRM activities related to employee benefits. and health benefits. They are also typically charged with desig ning detailed procedures to document and handle injuries. HRM managers must learn how to create compensation equity within the organization that doesn't hamper morale and that provides sufficient financial motivation. developing policies to accept and handle worker grievances. and worker management relations. The fourth principal HRM function. HRM managers must work to minimize the company's exposure to risk by implementing preventive safety and training programs. and legal services. recreational activities. for instance. This is often successfully accomplished with performance based incentives. satisfaction. Maintenance tasks related to worker-management relations primarily entail: working with labor unions. their aim is to establish wage and salary levels that maximize the company's investment in relation to its goals. In particular. and devising systems to foster cooperation. To successfully administer a benefits program. The three major categories of benefits managed by HRM managers are: employee services. vacations. retirement. and other all owed absences. effective HRM managers also design programs that reward employees by meeting their emotional needs. such as health insurance and free parking. retirement investment plans. and from state workers' compensation and federal En ironmental Protection Agency laws. HRM professionals need to understand tax incentives. . safety and health. and administering programs to enhance communication and cooperation. Employee benefits are non -incentive-oriented compensation. such as recognition for good work. holidays. and purchasing power derived from a large base of employees. HRM professionals are typically charged with developing wage and salary systems that accomplish specific organizational objectives. Besides financial compensation and fringe benefits. and insurance. and are often used to transfer nontaxed compensation to employees. such as employee retention. MAINTENANCE. refers to HRM duties related to paying employees and providing incentives for them. quality. Activities in this arena include contract negotiation. and motivation. the third major HRM function. Ultimately. maintenance of human resources. Human resource maintenance activities related to safety and health usually entail compliance with federal laws that protect employees from hazards in the workplace.Compensation. Regulations emanate from the federal Occupational Safety and Health Administration. such as purchasing plans.
both as individuals and groups. It is all about people at work. It encourages employees to give their best to the organization. identifies seven underlying assumptions that provide a foundation and direction for HRM. It tries to build and maintain cordial relations between people working at various levels in the organization. The various features of HRM include: It is pervasive in nature as it is present in all enterprises. . financial resources. it must have employees who will help it attain them. HRM is a tool used to try to make optimum use of human resources. THE FOCUS OF HRM Businesses and organizations rely on three major resources: physical resources. credit. suggesting that companies recognize and value individual contributions. and to comply with government mandates. Towards this end. In its broadest sense. It tries to help employees develop their potential fully. Wayne Pace. Second is that employees are resources who can learn new skills and ideas and can be trained to occupy new positions in the organization. to foster individual development. and debt. It is a multidisciplinary activity. economics. and that employees have a right to safe. Larger organizations typically have an HRM department and its primary objective is making company goals compatible with employee goals insofar as possible. In practice. A fourth assumption is the need for continuous learning. talents and skills must be continually refined in the long-term interests of the organization. etc. writing in Human Resource Development. utilizing knowledge and inputs drawn from psychology. such as materials and equipment. It helps an organization meet its goals in the future by providing for competent and well-motivated employees. clean. including cash. First is the acknowledgment of individual worth. HRM refers to the management of all decisions within an organization that are related to people. Its focus is on results rather than on rules. Third is that quality of work lif e is a legitimate concern. It tries to put people on assigned jobs in order to produce good results. Hence. R. and pleasant surroundings. however. and human resources or workers.NATURE OF HRM Human Resource Management is a p rocess of bringing people and organizations together so that the goals of each are met. for a company to attain its goals.
A third change factor was accelerating market globali ation. training and development. Therefore. The first key force. Personnel aspect This is concerned with manpower planning. A second important change affecting HRM was new organizational structures that began to emerge during the 1980s and continued through the 1990s. hierarchical organizational structures in favor of flatter. FORCES CHANGING HRM In the 1990s several forces were shaping the broad field of HRM. Because many companies began expanding their operations and diversifying their products and services. which implies that humans have a right to be satisfied by their work and that employers have a responsibility and profit motivation to try to match a worker's skills with his or her job. placement. often at diminished levels of compensation. The seventh and final assumption is that HRM encompasses a much broader scope than technical training²employees need to know more than the requirements of a specific task in order to make their maximum contribution. selection. the central decision-making system failed to respond quickly enough to managers' needs and concer ns. since these technologies helped blur the lines between work time and personal time by enabling employees to work at home. Sixth is employee satisfaction. which was increasing competition and demanding greater performance out of workers. computers and networking systems. transfer. fewer managers were involved in the decision -making process and companies were adopting more of a team approach to management. layoff and retrenchment. companies started scrapping traditional. Satellite communications. HRM professionals began adopting "management by objective" approaches to human resources instead of the traditional "management by sight" method. fax machines. new technologies²particularly information technology ²brought about the decentralization of communications and the shake -up of existing paradigms of human interaction and organizational theory. . Consequently. and other devices were facilitating rapid change. promotion. decentralized management systems. SCOPE OF HRM The scope of HRM is very wide: 1. recruitment.A fifth assumption supporting the existence of an organized HRM within a company or institution is that opportunities are constantly changing and companies need methods to facilitate continual worker adaptation. Moreover.
etc. The authors of Human Resources Management posit four factors. 3. housing. impro ve performance." that should be used to determine whether or not an HRM department or individual program is succeeding: commitment. Welfare aspectIt deals with working conditions and amenities such as canteens. settlement of disputes. medical assistance. collective bargaining. productivity etc. and optimize cooperation among individuals and groups. rest and lunch rooms. advanced data gathering and statistical analysis techniques to test the success of their initiatives. health and safety. The evaluation of HRM methods and programs should include both internal and external assessments. the HRM manager asks to what extent do policies enhance the commitment of people to the organization? Commitment is necessary to cultivate loyalty. Industrial relations aspect This covers union-management relations. In testing commitment. etc. Larger human resource departments often use detailed. whereas external evaluations focus on the overall benefits of HRM methods in achieving company goals. 2. creches. the "four Cs. transport. recreation facilities. joint consultation. The results can then be used to adjust HRM programs or even to make organizational changes. competence. Internal evaluations focus on the costs versus the benefits of HRM methods. cost -effectiveness.remuneration. education. EVALUATION OF HRM METHODS One of the most critical aspects of HRM is evaluating HRM methods and measuring their results. grievance and disciplinary procedures. . incentives. and congruence.
several simple observations can be made that provide insight into the general effectiveness of a company's human resources. The laws and court rulings can be categorized by their affect on the four primary HRM functional areas: acquisition. pay. Other measures of HRM success include employee complaint and customer satisfaction statistics. The most important piece of HRM legislation. and often document. development. LEGAL INFLUENCES The field of HRM is greatly influenced and shaped by state and federal employment legislation. the third factor. and develop employees: cost-effectiveness. analysis of congruence helps to determine how HRM policies create and maintain cooperation between different groups within and outside the organization. These acts made illegal the discrimination against employees or potential recruits for reasons of race. benefits. and independent quality ratings. and virtually all other activities and responsibilities related to HRM. Finally. r eligion. It forces employers to achieve. the average speed at which job vacancies are filled is an indicator of whether or not the organization has acquired the necessary talents and competencies. absenteeism. and provides for civil penalties in the event of discrimination. In addition to advanced data gathering and analysis techniques. including the Ci il Rights Act of 1991. benefits. The 1964 act established the Equal Employment Opportunity Commission (EEOC) to enforce the act. and labor/management disputes. In addition. measures the fiscal proficiency of given policies in terms of wages. and managers and subordinates. one of the most important responsibilities of HRM professionals lies in compliance with regulations aimed at HRM departments. and national origin. Possible penalties include forcing an organization to implement . compensation. companies also must assess the effectiveness of HRM programs by their impact on overall business success. and maintenance. is Title VII of the Civil Rights Act of 1964 and subsequent amendments. health insurance and workers' compensation claims. employees and their families. most of which is designed to protect workers from abuse by their employers. Indeed. such as manufacturing or product breakthroughs. color. sex. including diffe rent departments. the number of significant innovations made each year. Furthermore.Competence refers to the extent to which HRM policies attract. which affec ts all of the functional areas. turnover. suggest HRM's success at fostering an environment that rewards new ideas and is amenable to change. fairness related to hiring. keep. Besides evaluating these internal aspects of HRM programs. training.
the Buckley Amendment of 1974 requires certain institutions to make records available to individuals and to receive permission before releasing those records to third parties. The Walsh Healy Public Contracts Act of 1936 ensures that employees working as contractors for the federal government will be compensated fairly. Importantly. requires the payment of minimum wages to nonfederal employees. the Fair Labor Standards Act of 1938 mandates employer compliance with restrictions related to minimum wages. are the civil rights act. and mandates equal pay for equal work with few exceptions. Perhaps the most regulated realm of the HRM field is maintenance (or benefits). the Revenue Act of 1978. safety and health. is the Equal Pay Act of 1963. as employers who turn down applicants for credit reasons must provide the sources of the information that shaped their decision. 1976. a law affecting acquisition. rewards. the equal pay act. The sweeping act has ballooned to include thousands of regulations backed by civil and criminal penalties. or resource planning and selection. In addition to the civil rights acts. or appraisal. or equal pay for unequal jobs of equal value or worth. training. which was strengthened by amendments in the early 1990s. and the age discrimination in employment act. In addition. or face potentially significant penalties. and employee/management relations. Similarly. and development. and 1986. Subsequent court rulings augmented the act by promoting the concept ofcomparable worth. including jail time and fines for . and the Tax Equity and Fiscal Responsibility Act of 1982. The net result of the all encompassing civil rights acts is that HRM departments must carefully desi gn and document numerous procedures to ensure compliance. which established the Occupational Safety and Health Administration. The major laws affecting HRM development.an affirmative action program to actively recruit and promote minorities that are underrepresented in a company's workforce or management. Other major laws affecting rewards include: the Tax Reform Acts of 1969. That act was designed to force employers to provide safe and healthy work environments and to make organizations liable for workers' safety. or salary administration and incentive systems. The important Age Discrimination in Employment Act of 1967. essentially protects workers 40 years of age and older from discrimination. however. the Economic Recovery Tax Act of 1981. This act forbids wage or salary discrimination based on sex. and workplace safety. Chief among regulations in this arena is the Occupational Safety and Heal th Act of 1970. HRM reward programs must comply with a plethora of detailed legislation. overtime provisions. child labor. for instance. All of those laws also affected the third HRM activity. The Davis -Bacon Act of 1931. The Fair Credit Reporting Act also affects acquisition activities.
training procedures. Other important laws related to HRM maintenance include: the NorrisLaguardia Act of 1932. Role of HR Managers (Today) 1.company executives. Mediator: Playing the role of a peacemaker during disputes. Also of import are state workers' compensation laws. and the Landrum-Griffin Act of 1959. conflicts between individuals and groups and management. Compensation. (B). 3. physical and career problems. Training & Development and Industrial Relations. Personnel Procedures: Relating to manpower planning procedures. which require employers to make provisions to pay for work-related injuries. performance appraisal procedures. Service Role: Personnel function provides services that need to be carried out by full time specialists. and employment procedures. which will ensure that agreed policies are implemented. Social Responsibility. 2. industrial relations procedures and health and safety procedures. It provides guidance to managers. Advisory Role: HRM advises management on the solutions to any problems affecting people. ROLE OF HRM 1. and is a chief source of regulation for HRM departments. Counselor: Consultations to employees about marital. Personnel Policies: Organi ation Structure. Employment Terms & Conditions. health. personnel policies and procedures. Humanitarian Role: Reminding moral and ethical obligations to employees 2. The Wagner Act of 1935 is the main piece of legislation governing union/management relations. Functional Role: The personnel function interprets and helps to communicate personnel policies. the Taft-Hartley Act of 1947. Career & Promotion. compensation procedures. recruitment and selection procedures. and forces HRM managers to create and document safety procedures and programs that reduce a company's liability. These services constitute the main activities carried out by personnel departments and involve the implementation of the policies and procedures described above. (A). mental. . 3. management development procedures. the Social Security Act of 1935.
2. and departmental expansions and reductions and (b) factors in the environment su ch as the labor market. Problem Solver: Solving problems of overall human resource management and long-term organizational planning.The HRM process includes seven basic activities: 1.4. Protection and enhancement of human and non -human resources Finding the best way of using people to accomplish organizational goals Improve organizational performance Integration of techniques of information technology with the human resources Utilizing behavioral scientists in the best way for his people Meeting challenges of increasing organizational effectiveness Managing diverse workforce. 2. Change Agent: Introducing and implementing institutional changes and installing organizational development programs 7. 5. 6. such as current and expected skill needs. The HRM process is an ongoing procedure that tries to keep the organization supplied with the right people in the right positions. 4. 6. Role of HR Managers (Future) 1. vacancies. The use of computers to build and maintain information about all employees has enabled organizations to be much more efficient in their planning of human resources. 5. Management of Manpower Resources: Broadly concerned with leadership both in the group and individual relationships and labor -management relations. It is accomplished through analysis of (a) internal factors. when they are needed. 7. the company may need more or fewer employees and managers from time to time. Spokesman: To represent of the company because he has better overall picture of his company¶s operations.Human resources planning is designed to ensure t hat personnel needs will be constantly and appropriately met. 3. The HRM function is especially important given the current trend toward downsizing. HRM managers advise line mangers throughout the organization. Candidates are usually located through newspaper and . Recruitment is concerned with developing a pool of job candidat es in line with the human resources plan. T RADITIONAL HRM HRM is a staff function. Furthermore.
Performance appraisal compares an individual¶s job performance to standards or objectives developed for the individual¶s position. interviews. 4. development programs are designed to prepare employees for promotion. New comers are introduced to their colleagues. word of mouth. demotions. Selection involves using application forms. 5. STRATEGIC HUMAN RESOURCES MANAGEMENT .professional journal advertisements. and visits to college and university campuses. Promotions. and informed about the organization¶s culture policies and expectations regarding employee behavior. and separations reflect an employee¶s value to the organization. resumes. acquainted with their responsibilities. transfers. 3. Socialization (orientation) is designed to help the selected individua ls fit smoothly into the organization. and reference checks to evaluate and screen job candidates for the managers who will ultimately select and hire a candidate. Training is designed to improve skills in the present job. Training and development both aim to increase employees¶ abilities to contribute to organizational effectiveness. 6. employment agencies. employment and skills tests. 7.
Business Unit Level and Functional Level. o attempts to link Human Resource activities with competency based performance measures attempts to link Human Resource activities with business surpluses or profit o . quality. It can be done at Corporate level. En ironmental Scanning: Analyze the Opportunities and Threats in External Environment 2. Approaches of the SHRM. It includes the formulation of goals and set of action plans for accomplishment of that goal. Evaluation & Control: Ensure the organizational objectives are met. strategy implementation and evaluation and control.Strategy: ³Strategy is a way of doing something. It includes environmental scanning.´ Steps in Strategic Management: 1. commitment and matching resources to future need. It is concerned with longer -term people issues and macroconcerns about structure. Definition of Strategic Management: - ³Strategic Management is that set of managerial decisions and actions that determine the long-term performance of a corporation. Strategy Implementation: Implement the Strategies 4. 3.´ Strategic Management: ³A Process of formulating. implementing and evaluating business strategies to achieve organizational objectives is called Strategic Management´ . strategy formulation. values. Strategy Formulation: Formulate Strategies to match Strengths and Weaknesses. Strategic HRM can be regarded as a general approach to the strategic management of human resources in accordance with the intentions of the organisation on the future direction it wants to take. culture.
money and the resources. 8. Other major barriers are summarized as follows: 1. 7. 5. The main reason is a lack of growth strategy or failure to implement one. 7. To recruit. The first one is the human factor. Identifying and analyzing external opportunities and threats that may be crucial to the company's success.These to approaches indicate two factors in an organisational setting. retain and motivate people. their performance and competency and the later is the business surplus. Interdepartmental conflict. 2. To supply competitive intelligence that may be useful in the strategic planning process. 3. To supply information regarding the company's internal strengths and weaknesses. Provides a clear business strategy and vision for the future. 3. Benefits of SHRM 1. Plans that integrate internal resource with external requirements. An approach of people concern is based on the belief that human reso urces are uniquely important in sustained business success. drawing on their expertise and ingenuity to meet clearly defined objectives. Inducing the vision and mission of the change effort. An organization gains competitive advantage by using its people effectively. . 2. To meet the expectations of the customers effectively. 5. To develop and retain of highly competent people. The commitment of the entire senior management team. 9. Integration of the business surplus to the human competency and performance required adequate strategies. To ensure business surplus thorough comopetency Barriers of SHRM Barriers to successful SHRM implementation are complex. 6. 10. 4. The statusquo approach of employees. High resistance due to lack of cooperation from the bottom line. Limited time. To ensure that people development issues are addressed systematically. 6. 4. To ensure high productivity.
Unique HR capabilities serve as a driving force in strategy formulation. Details regarding advanced incentive plans used by competitors. 15. 16.8. 10. Resistance that comes through the legitimate labour institutions. Vulnerability to legislative changes. elicit information about customer complaints. 9. It is important to remember t hat linking strategy and HRM effectively requires more than selection from a series of practice choices. Ramifications for power relations. 18. Role in Strategy Implementation: HRM supplies the company with a competent and willing workforce for executing strategies. Fear of incomopetency of senior level managers to take up strategic steps. Improper strategic assignments and leadership conflict over authority. TRADITIONAL VS STRATEGIC HRM Point distinction Focus of Traditional HR Strategic HR relations Partnerships with internal and external customers Employee Role of HR Transactional change follower Transformational change leader and respondent and initiator. 11. More diverse. The challenge is to develop a configuration of HR practice choices that help implement the organization¶s strategy and enhance its competitiveness. Economic and market pressures influenced the adoption of strategic HRM. 14. information about pending legislation etc. opinion survey data from employees. outward looking approach. 17. 13. can be provided by HRM. Diverse work-force with competitive skill sets. 12. Rapid structural changes. ROLE OF HRM IN STRATEGIC MANAGEMENT Role in Strategy Formulation: HRM is in a unique position to supply competitive intelligence that may be useful in strategy formulation. . Presence of an active labour u nion. Fear towards victimisation in the wake of failtures.
Initiatives Slow. medium and long (as required Organic flexible whatever is necessary to succeed Broad flexible cross training teams People knowledge Control Bureaucratic roles. HR Lin managers. nee d structures are organized along five dimensions people seek growth etc) is poor and . independence specialization Capital products. a satisfied need activates movement to a new need level. It is small wonder that the theory has received wide recognition particularly among practicing managers. policies procedures Tight division of labor. reactive fragmented Fast proactive and integrated Time horizon Short term Short .Despite the societal popularity. This can be attributed to the theory¶s intuitive logic and ease of understanding. Maslow¶s model has been criticized on several grounds: It is an unstable theory: Empirical support to Maslow¶s propositions (unsatisfied needs motivate. Job design Key investments Accountability Cost center Investment center Responsibility for Staff specialists. Research in under developed countries indicated the fact that workers give top priority to lower order needs a d expect managers to take care of these. It helps to explain why people behave differently why some needs are motivating up to stage what factors need to be looked into by managers when they want to inspire their subordinates etc. HRM THEORY: Maslow¶s model provides a rich and comprehensive view of human needs. Proposition such as: a satisfied need is not a motivator of behavior lower order have to be met first before trying to fulfill higher order needs¶ have found universal acceptance .
Thus.Also. and musicians often discount physiological and love needs in favor of self fulfillment needs.inadequate. may be hungry and at the same time need friendship and association. Maslow¶s proposition that one need is satisfied at one time is not correct. An individual¶s behavior at any time is guided by multiplicity of mot ives though one of them may be most powerful. It is also doubtful whether gratification one need automatically activates the next need in the hierarch y . singers. The classification scheme is somewhat superfluous: It is not correct to fit needs into neat water tight compartments. Definition 2: Bring possibility of performance and growth . what does dominance of a given need mean? What is the time span for the unfolding of the hierarchy ? etc. the need hierarchy may not follow the sequence postulated by Maslow. It is difficult to interpret and operate its concepts. Sometimes all needs simultaneously operate w ithin an individual. mental and emotional capacities of individuals for productive work. Maslow¶s theory fails to explain this phenomenon of multiple motivations HUMAN RESOURCE DEVELOPMENT Definition 1: Organizing and enhancing capacities to produce. For example. The models are based more on wishes of what man should be rather than what is actually is. A person for example. HRD is a process of organizing and enhancing the physical. The chain of causation in the hierarchy is also put to attack: There is no definite evidence that one need has been gratified. Creative people like painters. its strength diminishes.
TEAM EFFECTI ENESS A team is defined as a reasonably small group of people. trust. Change Management: Manage change properly and become an effective change agent rather than being a victim of change itself. Proactive HRD Strategies for long term planning and growth In today¶s fast changing.HRD means to bring about the possibility of performance improvement and individual growth. skills and capabilities for better performance and higher productivity. Activities directed to competence building: HRD activities need to be geared up and directed at improving personal competence and productive potentialities of manpower resources. which encourage values of openness. who bring to the table a set of complementary and appropriate skills. alues: Adopt proactive HRD measures. skills and attitudes necessary for productive efforts. and who hold themselves mutually accountable for achieving a clear and identifiable set of goals. autonomy. Using HRD strategies maximi ations of efficiency and productivity could be achieved through qualitative growth of people with capabilities and potentialities to grow and develop. What do we mean by team effectiveness? . Human resource development is a process to help people to acquire competencies and to increase their knowledge. HRD is always a function of proper utili ation of creative opportunities and available environment through acquisition of knowledge. challenging and competitive environment HRD has to take a proactive approach that is to seek preventive care in human relations. Maximize productivity and efficiency: Through qualitative growth of people with capabilities and potentialities to grow and develop thrive to maximi e productivity and efficiency of the organi ation. Following strategic choices can be considered which would help today¶s organi ations to survive and grow. proactivity and experimentation.
y The job should provide the team with an opportunity for self-regulation. It should not be torn apart by dissension. the team has likely been effective. These skills include technical.y A team can be considered to be effective if their output is judged to meet or exceed the expectations of the people who receive the output. The team must work hard. problem solving and interpersonal skills. y When challenging goals are set the team will mobili ze its efforts to find innovative ways to achieve feats that may have been considered impossible. It should affect others in the organization or impact on the external customer. y The second criteria.The team must have the right mix of skills to bring to the table. . They should decide how the work is to be done. Providing a challenging job is the most important motivator to sustain group effort. effectiveness is judged by whe ther the team feels satisfied with its efforts. The following factors contribute to hard work. What then are the factors that contribute towards an effective team? There are three areas of group behavior that must be addressed for teams to be effective. y The task itself should be seen as being worthwhile. It needs to be a whole piece of work with a clear and visible outcome so that people can feel a sense of ownership. The team must be able to develop appropriate approaches to problem solving. is that the team should still be able function effectively after they have completed their task. If the team members are pleased with their efforts. This depends on developing a plan of attack and using appropriate techniques for analysis. if time spent away from their normal work has been worth the effort. skill development and effective problem solving strategies: The task itself should be motivating.. which are clearly defined. if the experience has been a good one. Producing a quality output is not enough to judge the effectiveness of the team. The team needs challenging goals. Meaningful feedback should be provided on the how well the team is performing. y The outcome of the task should be perceived as being important to other people's lives. y Finally.
For teams who are trying to improve a process that cuts across department boundaries. y Whatever form the reward takes. Sheer numbers may weigh the solution towards the dominant group. y Rewards merely reinforce these conditions for fostering group e ffort. . Goals need to be challenging. y In the case of permanent work teams it is likely that team members will no t have all the task relevant skills at the onset. y The team needs to buy in to the goals. This means avoiding having a preponderance of skills and experience in one specialized area. y The members of the team need to have problem solving and decision -making skills as well as technical skills. each function should be represented. One should achieve a balance of skills.y Goals provide a sense of direction to the team so that when conflict occu rs it is possible to channel the conflict more constructively by returning to the goals for direction. when there has been a group effort. but not impossible to achieve. They also need to be measurable so that progress towards achieving them can be monitored and results confirmed. y The right mix of skills should be brought to the task at hand. One should avoid the destructive effect of trying to single out individuals from the group. training and coaching should be provided. it is likely that people will not have a good grasp of t he techniques related to problem analysis and solution. Providing relevant training then makes up any shortfall in skills. It is also a question of carefully reviewing the job to determine what relevant skills is required and selecting staff so that the team has the right balance. y Technical skills are required. it is important that group effort be recognized. They will need to develop broader skills for the new job. To ensure that this is done. The team should have the right mix of skills. When a business is making its first venture into team based work. They must have the opportunity to buy in and commit to achieving the goals. When the group is new. y The rewards need to suit the personal characteristics of the people on the team. it is likely that members will bring narrow skills learned in their old roles. Rewards are important.
This will ensure that the work is done well and done on time. When their task is completed the team is disbanded and members go back to their normal organisational duties. people are passive. know what resources it has available and the limits. y There are two important issues facing these teams. Over a period of time staff will become experienced in problem solving techniques and the organization will develop a repertoire of skills among the staff so this training will not always be necessary. Listening is much more than being quiet when some else is talking. using an analytical approach. One is the problem solving team. From the perspective of organisational improvement we are interested in three types of teams. another is the work team and then there is the senior management team. y Interpersonal skills are also important. y At the beginning of the team project it is important to develop a code of conduct for meetings. One is getting started and the other is handing over the recommendations for implementation. It must then develop a problem -solving plan.y These relevant skills must be acquired. The team must develop effective problem sol ving strategies. Many people do not speak to the point but ramble on or go off at a tangent. not pulling rank over other members. based on the approach suggested in the section on continuous improvement. y For the team to be able to develop an appropriate strategy. so it will be necessary to provide training. y The most critical rules pertain to attendance. y When this does not happen. Their skills and knowledge are not utilized and they waste their time. planning the work and sharing work assignments. open discussion. and understand the expectations. Most people do not take criticism well and tend to be defensive about their own opinions.Problem solving teams are set up with a clearly defined task to investigate a problem and recommend a solution. This is not as obvious as it may sound. Special teams have special issues . Active listening is required. The team needs to agree on a set of rules to ensure that their efforts are purposeful and that all members contribute to the work. Agree on a code of conduct. The key to . Sometimes the same team will go on to implement the solution. Most people do not listen well. it must have a clear definition of the problem.
getting started is to ensure that the team is committed to achieving an agreed set of goals. which is to control a set of activities that make up a discrete operation in the overall business process. y Work teams are different in that they are a fixed part of the organization.´ MEANING / PURPOSE OF HRP . HUMAN RESOURCE PLANNING ( H R P ) Definition 1: .Right numbers. The implementers must be brought into the solution stage so that they develop a sense of ownership towards the solution and buy into it. Whatever approach is used one should remember that the idea is to implement a solution and not to produce a report.Translation of objectives into HR numbers ³HRP is a process of translating organizational objectives and plans into the number of workers needed to meet those objectives. it must be planned.´ Definition 3: . at the right time. Supply=Demand ³HRP includes estimation of how many qualified people are necessary to carry out the assigned activities. Organization Objectives ³HRP is a Process. by which an organization ensures that it has the right number and kind of people at the right place.Need. y Implementation is important. if anything. Goals serve to focus the team's effort. and what. They have an ongoing function. must be done to ensure personnel supply equals personnel demand at the appropriate point in the future. capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives. They need to focus on the critical factors in their process and to control these factors to ensure a quality product.´ Definition 2: . The best way to do this is to have the problem solving team do the implementation. Capability. It will not just happen. how many people will be available. Another approach is to phase the implementers into the team so that the y membership changes prior to the implementation. Availability.
Further technology changes would further upgrade or degrade jobs and create manpower shortages. HRP plays an important role to predict the right size of manpower in the organization. y HRP is important because without a clear -cut manpower planning. skills demands and number of human resources required. Creating highly talented personnel: Since jobs are becoming highly intellectual and incumbents getting vastly professionalized. the need for HRP . physically handicapped. technology. children of socially oppressed and backward classes who enjoy a certain percentage of employments notwithstanding the constitutional provisions of equal opportunity for all. products and government regulations. estimation of a organization¶s human resource need is reduced to mere guesswork. it is important to plan your man power in advance. In these situations only accurate human resource planning can help to meet the resource requirements. NEED & IMPORTANCE OF HRP Forecast future personnel needs: To avoid the situations of surplus or deficiency of manpower in future. Further HRP is also an answer to the problems of succession planning. that the company can initiate and plan the recru itment and selection process. y HRP is a sub-system in the total organizational planning. y HRP facilitates the realization of the company¶s objectives by providing right type and right number of personnel. Such changes generate changes in job content. markets. y It is only after HRP is done. With growing trends towards global operations. For this purpose a proper forecasting of futures business needs helps you to ascertain our future manpower needs. From this angle. HRP helps prevent shortages of labor caused by attritions.y In simple words HRP is understood as the process of forecasting an organization¶s future demand for and supply of the right type of people in the right numbers. International strategies: International expansion strategies largely depend upon effective HRP. Cope with change: HRP enables an enterprise to cope with changes in competitive forces. Protection of weaker sections: A well-conceived personnel planning would also help to protect the interests of the SC/ST.
Here HRP becomes very important and needs the resources to be planned carefully. loyalty and dedication making it more difficult to assume that organi ation can move its employees everywhere. It is important that employees are used effectively throughout their careers. 3. HRP SYSTEM HRP System as such includes following elements or sets for planning Overall Organi ation Objectives Business Environment Forecasting Manpower Needs Assessing Manpower Supply . Other benefits: Following are the other benefits of HRP. Increasing investments in HR: Another importance is the investment that an organi ation makes in human capital.further becomes more important as the need to integrate HRP more closely into the organi ation keeps growing. 4. training and development etc. self evaluation. 2. Upper management has a better view of HR dimensions of business Management can anticipate imbalances before they become unmanageable and expensive. 5. 6. 1. selection. This is also because the process of meeting staffing needs from foreign countries grows in a complex manner. Because human assets can increase the organi ation value tremendously as opposed to physical assets Resistance to change & move: The growing resistance towards change and move. personnel development. More time is provided to locate talent Better opportunities exists to include women and minorities in future growth plans Better planning of assignments to develop managers Major and successful demands on local labor markets can be made. Foundation of personnel functions: HRP provides essential information for designing and implementing personnel functions such as recruitment.
Business Environment Organization Objectives & Goals Manpower Supply Assessment Manpower Forecast Manpower Programming Manpower Implementation Control & Manpower Evaluation Surplus Manpower Shortage of Manpower HRP PROCESS Organizational Objectives & Policies: The objectives of HR plan must be derived from organi ational objectives like specific requirements of numbers and characteristics of employees etc. Specific policies need to be formulated to address the following decisions. y y y y Internal Hiring or External Hiring? Training & Development plans Union Constraints Job enrichment issues . HRP needs to sub-serve the overall objectives by ensuring availability and utili ation of human resources.Matching Manpower Demand-Supply factors Based on these elements we can draw ³HRP System Architecture´ as under.
Demand forecasting should be based on following factors.y Rightsizing organization y Automation needs y Continuous availability of adaptive and flexible workforce Manpower Demand Forecasting: - It is the process of estimating the future quantity and quality of people required. Internal Factors: y y y y y Budget constraints Production levels New products and services Organizational structure Employee separation External Factors: - y y y y y Competition environment Economic climate Laws and regulatory bodies Technology changes Social Factors Manpower Forecasting Techniques: Management Judgment: In this techniques managers across all the levels decide the forecast on their own judgment. divisions and top management can conclude on final numbers of manpowe r required. Ration-Trend Analysis: This technique involves studying past ratios. Work Study Techniques: It is possible when work measurement to calculate the length of operations and the amount of manpower required. and forecasting future ratios making some allowance for changes in the organization or its methods. The starting point can be . This can be bottom-up or top-down approach and judgments can be reviewed across departments.
followed by standard hours. and HRP experts normally act as intermediaries. Estimate probable transitions. Manpower Supply Forecasting: - This process measures the number of people likely to be available from within and outside the organization after making allowance for absenteeism. Supply Analysis covers: Existing Human Resources: HR Audits facilitate analysis of existing employees with skills and abilities. Flow Models: This technique involves the flow of following components. The existing employees can be categorized as skills inventories (non-managers) and managerial inventories (managers) Skill inventory would include the following. summarizes various responses and report the findings back to experts.production budget. man -hours required etc could be computed. wastages. internal movements and promotions. output per hour. changes in hours and other conditions of work. Delphi Techniques: This technique solicits estimates from a group of experts. Count annual movements. Determine the time required. y y y y y y y y Personal data Skills Special Qualifications Salary Job History Company data Capabilities Special preferences Management inventories would include the following y y y Work History Strengths Weaknesses . Here demand is a function of replacing those who make a transition. Establish categories.
resignations. Of separations p. separations. New experiences Replenish lost personnel Organizational growth Diversification Recruitment & Selection: Employees are hired against the job vacancies.a. A formal selection board is established to interview and select the best of the candidates for the required vacancies. existing staff etc.) y Turnover rate (No. The programs also cover the . For this internal and external sources of manpower are utilized. X 100) y Conditions of work (working hours. overtime. absences) y Productivity level y Job movements (Job rotations or cross functional utilizations) External Supply: - External sources are required for following reasons y y y y y New blood. etc. Based on the manpower demand and supply forecasts made. / Average employees p. Training and Development: The training and development program is charted out to cover the number of trainees.) y Absenteeism (leaves. Finally the selected employees also need to be placed on proper jobs. hiring of employee s is initiated based on supply forecasts.y y y y y y Promotion Potential Career Goals Personal Data Number and Types of Subordinates Total Budget Managed Previous Management Duties Internal Supply: Internal supply techniques help to assess the following y Inflows and outflows (transfers.a. promotions. retirements etc.
can do this. Most successful programs seem to include top managements involvement and commitment. which will enable achievements to be monitored against the plan. formal performance assessment and potential assessment and written development pla ns for individuals. A typical succession planning involves following activities. These plans may simply be reports on the numbers employed. For these identifying and managing redundancies is very essential. New skills are to be imparted to existing staff when technology changes or product line discontinued. frequency of training and development programs and budget allocation. providing green pastures et c. Using compensation plans. Employees need to be redeployed to other departments where they could be gainfully employed. Methods of managerial succession plans may vary. Retraining and Redeployment. high-level review of succession plans.identification of resource personnel for conducting deve lopment program. avoiding conflicts. Managerial Succession Planning. performance appraisals. The HR Plan should include budgets. which would reduce avoidable separations of employees. Retention Plan: Retention plans cover actions. targets and standards. SUCCESSION PLANNING . y y y y y y y y Analysis of demand for managers and professionals Audit of existing executives Projection of future likely supply from internal and external sources Individual career path planning Career counseling Accelerated promotions Performance related training and development Strategic recruitment Control & Evaluation of HRP: - HR Plan must also clarify responsibilities for control and establish reporting procedures. recruited against targets etc. Downsi ing plans: Where there is surplus workforce trimming of labor force will be necessary.
6. 3. The immediate products of this analysis are µJob Description¶ and µJob Specifications¶. Succession planning focuses on identification of vacancies and locating the probable successor CAREER PLANNING Career planning is the process or activities offered by the organi zation to individuals to identify strengths.´ JOB ANALYSIS Definition 1: (Process of Collecting Information) ³Job Analysis is a process of studying and collecting information relating to operations and responsibilities of a specific job. The focus is not more on career development but it is more towards what kind of person is required to fill the future vacancy. Objectives of Career Planning 1. 5. weaknesses.Succession planning is the process or activities connected with the succession of persons to fill key positions in the organization hierarchy as vacancies arise. 2. . JOB: JOB ANALYSIS ³Job is a µgroup of tasks to be performed everyday.´ Definition 2: (Systematic Exploration of Activities) . Build commitment in the individual Develop long-range perspective Reduce personal turnover expenses Lessen employee obsolescence Ensure organizational effectiveness Allow individual to achieve personal and work related goals. specific goals and jobs they would like to occupy. The focus of attention is towards µwhich¶ person the succession planning is needed. 4.Career planning is a process of integrating the employees¶ needs and aspirations with organizational requirements.
y Job Description y Job Specification As a result Job analysis involves the following steps in a logical order. Remuneration: Performance Appraisal: Personnel Information: Safety & Health:. Job Analysis is a process used to identify these requirements. knowledge. Checking the job information for accuracy 3. Collecting and recording job information 2.³Job Analysis is a systematic exploration of activities within a job. abilities and activities required 4. It is a basic technical procedure that is used to define duties and responsibilities and accountabilities of the job. Updating and upgrading this information PURPOSE OF JOB ANALYSIS: y y y y y y y y Human Resource Planning (HRP): Recruitment & Selection: Training & Development: Job Evaluation. Each job has certain ability requirements (as well as certain rewards) associated with it. Writing job description based on information collected to determine the skills. .´ Definition 3: (Identifying Job Requirements) ³Job is a collection of tasks that can be performed by a single employee to contribute to the production of some product or service. provided by the organization.´ MEANING OF JOB ANALYSIS Job Analysis is a process of collecting information about a job. Steps of Job Analysis 1. The process of job analysis results into two sets of data.
Past-oriented and future-oriented Job Analysis: For rapidly changing organization more future oriented approach would be desired. for new organization New Job is created Changes in Job. If the purpose is just clarification the details required would be less. However more future oriented analysis may be derived based on past data. Technology and Processes Deficiencies and Disparities in Job New compensation plan is introduced Updating and upgrading is required. Timing and frequency of Job Analysis: When do you do Job Analysis? y y y y y y Initial stage.PROCESS OF JOB ANALYSIS Process 1: Strategic Choices Process 2: Collecting Information Process 3: Processing Information Process 4: Job Description Process 5: Job Specification Strategic Choices: - Extent of involvement of employees: Extent of employee involvement is a debatable point. . Too less involvement leads to suspicion about the motives behind the job. If the purpo se were for training programs or assessing the worth of job. Level of details of job analysis: The nature of jobs being analyzed determines the level of details in job analysis. Besides it may also lead to inaccurate information. levels of details required would be great. For traditional organizations past oriented analysis would be required. Hence extent of involvement depends on the needs of the organization and employee. Too much involvement may result in bias in favor of a job in terms of inflating duties and responsibilities.
Material s. Non-Human Sources Existing job descriptions specifications Human Sources and Job Analysis Job Incumbents Equipment maintenance record s Supervisors Equipment design blueprints Job Experts Architectural blueprints of work area Films of employee working Training manuals and materials Magazines. Services) y Job Context (Physical. Work schedule) y Personal Requirement (Skills. Organizational. literatures Collecting Information: - Information collection is done on the basis of following 3 parameters Types of Data for Job Analysis: y Work Activities (Tasks details) y Interface with other jobs and equipments (Procedures. Behaviors.Sources of Job Data: For job analysis number of human and non -human sources is available besides jobholder himself. Training. Following can be sources of data available for job analysis. newspapers. Tools. Equipments and Work Aids (List. Experience) Methods of Data Collection: y y y y y Observation Interview Questionnaires Checklists Technical Conference . Education. Products. Movements) y Machines. Social.
However the accuracy of information leaves much to be desired. It can be Structured or Unstructured Interview. The analysts must be fully trained observers. Interview: In this analyst interviews the jobholders. managers name. but is also time consuming a nd inapplicable to jobs involving mental activities and unobservable job cycles. It is useful in large number of staffs and less time consuming. jobholder¶s name. Plus there is also a problem of bias. reporting staff. METHODS OF DATA COLLECTION: Observation: Job Analyst carefully observes the jobholder and records the information in terms of what. . description of job. his supervisors to elicit information. Questionnaires: A standard questionnaire is given to jobholder about his job. It is a simple and accurate method. how the job is done and how much time is taken. which can be filled and given back to supervisors or job analysts. so that it would be useful in various personnel functions. The questionnaire may contain job title. Specifically job related data would be useful to prepare job description and specifications. Checklists: It is more similar to questionnaire but the response sheet contains fewer subjective judgments and tends to be either yes or no variety. which form the next two processes of job analysis. list of main duties and responsibilities etc. Again this is also a time consuming method in case of large organizations. Preparation of checklist is a challenging job itself.y Diary Methods Who to Collect Data? y Trained Job Analysts y Supervisors y Job Incumbents Processing Information: - Once the job information is collected it needs to be processed.
Quantitative Methods of Job Data Collection: Position Analysis Questionnaire (PAQ): - PAQ is a highly specialized instrument for analyzing any job in terms of employee activities. containing 208 elements relating to managerial responsibilities.Technical Conference: Here a conference of supervisors is used. 3. restrictions and other position characteristics These 208 elements are grouped under 13 categories. Functional Job Analysis: - . demand. 5. 6. Management Position Description Questionnaire (MPDQ): - Highly structured questionnaire. 2. The PAQ contains 194 job elements on which job is created depending on the degree to which an element is present. This analysis provides a comparison of a specific job with other job classifications. However this method lacks accuracy. 1. U ± Usability / Use of Job I ± Importance of Job T ± Time P ± Possibility of Occurrence of Job A ± Applicability of Job S ± Specialty Tasks of Job The primary advantage of PAQ is that it can be used to analyze almost every job. PAQ and MPDQ yield standardized information about the worker and the job. particularly for selection and remuneration purposes. Diary Methods: In this method jobholder is required to note down their activities day by day in their diary. 4. If done faithfully this technique is accurate and eliminates errors caused by memory lapses etc. The analysts initiate the discussions providing job details. However PAQ needs to be completed by trained job analysts only rather than incumbents. These elements are grouped together into 6 categories.
6. Up to date Proper Job Title Comprehensive Job Summary Clear duties and responsibilities Easily understandable State job requirements Specify reporting relationships Showcase degrees of difficulties Indicates opportunities for career development . tools and materials Work conditions Work hazards Definition of unusual terms Format of Job Description y y y y y y Job Title Region/Location Department Reporting to (Operational and Managerial) Objective Principal duties and responsibilities Features of Good Job Description 1.It is a worker oriented job analytical approach. 4. 6. 7. 2. and responsibilities involved in a job. which attempts to describe the whole person on the job. 9. 7. tasks. Job Identification Job Summary Job Duties and Responsibilities Supervision specification Machines. 8. 4. JOB DESCRIPTION ³Job Description implies objective listing of the job title. 5. 2. 5.´ Contents of Job Description 1. 3. 8. 3.
5. 4. 3. Clearly remuneration must be based on the relative worth of each job. Ignoring this basic principle results in inequitable compensation. Job evaluation is a process of analyzing and assessing the various jobs systematically to ascertain their relative worth in an organization. 2.10. Relative worth is determined mainly on the basis of job description and job specification only. Offer bird¶s-eye-view of primary responsibilities JOB SPECIFICATIONS ³Job Specification involves listing of employee qualifications. Employees need to be compensated depending on the grades of jobs which they occupy. skills and abilities required to meet the job description. Job Evaluation helps to determine wages and salary grades for all jobs. bonus and other benefits. Remuneration also involves fringe benefits. A perception of inequity is a sure way of de -motivating an employee.´ Contents of Job Specifications 1. These specifications are needed to do job satisfactorily. Physical Characteristics Psychological characteristics Personal characteristics Responsibilities Demographic features Further the job specifications can be divided into three broad categories Essential Attributes Desirable Attributes Contra-Indicators ± indicators hampering the success of job JOB EVALUATION Job Evaluation involves determination of relative worth of each job for the purpose of establishing wage and salary differentials. Process of Job Evaluation: .
b. Defining objectives of job evaluation Identify jobs to be evaluated (Benchmark jobs or all jobs) Who should evaluate job? What training do the evaluators need? How much time involved? What are the criteria for evaluation? Methods of evaluation to be used Wage Survey Employee Classification Establishing wage and salary differentials. Job is not broken down into factors etc. the rewards and qualifications required including skills. c. The worth of the job is then taken by adding together all the point values. 4. 2. rewards and qualification ³Job Design integrates work content (tasks. d. JOB DESIGN The Logical Sequence to Job Analysis is Job Design. responsibilities and other characteristics. relationships). a. Factor Comparison Method: The important factors are selected which can be assumed to be common to all jobs. Each of these factors are then ranked with other jobs. e. 3. f. knowledge and abilities for each job in a way that meets the needs of employees and the organization.1.´ . Non-Analytical Methods y Ranking Method: Jobs are ranked on the basis of its title or contents. In this method it is important to form a grade description to cover discernible differences in skills. y Job Grading Method: It is based on the job as a whole and the differentiation is made on the basis of job classes and grades. Definition 1: Integration of work. Methods of Job Evaluation Analytical Methods y Point Ranking Methods : Different factors are selected for different jobs with accompanying differences in degrees and points. functions.
To be more specific. repetitive work processes.Steps in Job Design: - 1. predetermining tools and techniques. restricting interaction amongst employees. few skills requirement. Combination of Tasks into Specific Jobs to be assigned to indivi duals Factors affecting Job Design: Organi ational factors: y y y y Characteristics of Tasks (Planning. Specification of Individual Tasks 2. Specification of Methods of Tasks Performance 3. Job Rotation: When incumbents become bore of routine jobs. Execution and Controlling of Task) Work Flow (Process Sequences) Ergonomics (Time & Motion Study) Work Practices (Set of ways of performing tasks) Environmental Factors: y Employee Abilities and Availability y Social and Cultural Expectations Behavioral Elements: y y y y Feedback Autonomy Use of Abilities Variety TECHNIQUES OF JOB DESIGN: Work Simplification: Job is simplified or specialized. The job is broken down into small parts and each part is assigned to an individual. Work simplification is used when jobs are not specialized. working only on one part of a product. work simplification is mechanical pacing of work. but the incumbents shift from one job to . job rotation is an answer to it. Here jobs remain unchanged.
another. On the positive side, it increases the intrinsic reward potential of a job because of different skills and abilities needed to perform it.
Job Enlargement: It means expanding the number of tasks, or duties assigned to a given job. Job enlargement is naturally opposite to work simplification. Adding more tasks or duties to a job does not mean that new s kills and abilities are needed. There is only horizontal expansion. It is with same skills taking additional responsibilities like extending working hours etc. Job Enrichment: Job enrichment is improvisation of both tasks efficiency and human satisfaction by building into people¶s jobs, quite specifically, greater scope for personal achievement and recognition, more challenging and responsible work and more opportunity for individual advancement and growth. Benefits of Job enrichment
1. It benefits employee and organization in terms of increased motivation, performance, satisfaction, job involvement and reduced absenteeism. 2. Additional features in job meet certain psychological needs of jobholders due to skill variety, identity, significance of job etc. 3. It also adds to employee self-esteem and self-control. 4. Job enrichment gives status to jobholder and acts as a strong satisfier in one¶s life. 5. Job enrichment stimulates improvements in other areas of organization. 6. Empowerment is a by-product of job enrichment. It means passing on more authority and responsibility.
Demerits of Job Enrichment
1. Lazy employees may not be able to take additional responsibilities and power. It won¶t fetch the desired results for an employee who is not attentive towards his job. 2. Unions resistance, increased cost of design and implementation and limited research on long term effect of job enrichment are some of the other demerits. 3. Job enrichment itself might not be a great motivator since it is job-intrinsic factor. As per the two-factor motivation theory, job enrichment is not enough. It should be preceded by hygienic factors etc. 4. Job enrichment assumes that workers want more responsibilities and those workers who are motivated by less responsibility, job enrichment surely de-motivates them
5. Workers participation may affect the enrichment process itself. 6. Change is difficult to implement and is always resisted as job enrichment brings in a changes the responsibility.
DESIGNING JOBS ± MOTIVATING JOBS
The concept of motivating jobs relates to Job design. Job design affects employee productivity, motivation and satisfaction. Job design is a conscious effort to organize tasks, duties and responsibilities into a unit of work to achieve certain objectives.
Job satisfaction is the result of various attitudes possessed by an employee towards his job, related factors and life in general. The attitudes related to job may be wages, supervision, steadiness, working conditions, advancement opportunities, recognitions, fair evaluation of work, social relations on job, prompt settlement of grievances etc. Components of Job Satisfaction Personal factors: Sex, Dependents, Age, Timings, Intelligence, Education and Personality. Job inherent factors: Type of work, Skills, Occupational status, Geography, Size of plant Management controlled factors: Security, Payment, Fringe benefits, Advancement opportunities and Working conditions, Co-workers, Responsibilities, Supervision
Definition 1: Measuring and quantifying activities"A measurement technique for the quantitative analysis of non-repetitive or irregularly occurring activity." Meaning of Work Sampling Work sampling is based on the theory that the percentage of the number of observations on a particular activity is a reliable measure of the percentage of the total actual time spent on that activity.Work sampling operates by an observer taking a series of random observations on a
particular "thing" of interest (machine, operating room, dock, etc.) to observe its "state" (working, idle, sleeping, empty, etc.). When enough samples are taken, an analysis of the observations yields a statistically valid indication of the states for each thing analyzed. Assume, for example, that you wish to determine the proportion of time a factory operator is working or idle. Also assume that 200 random observations were made of the operator and during 24 of these he or she was observed to be idle. Therefore, you find that the individual is working 176/200 = 88% of the time.
Advantages of Work Sampling It is relatively inexpensive to use and extremely helpful in providing a deeper understanding of all types of operations. When properly used, it can help pinpoint those areas, which should be analyzed in, further detail and can serve as a measure of the progress being made in improving operations .Questions of work sampling study y What is our equipment/asset utilization? y When we are not adding value to the product, how are we spending our time? y How are our inter-dependent systems performing? y Where should we focus our continuous improvement activities? Distinction between Work sampling and "Time Studies"
Work sampling is lower cost because it uses random samples instead of continuous observations. y Many operators or machines can be studied by a single observer y Work sampling can span several days or weeks, thus minimizing the effects of day to day load or equipment variati ons y Work Sampling tends to minimize operator behavior modification during observation. y Work Sampling, in general, does not require a trained time -study analyst to take the observations. Also, stopwatches or other timing devices are not required. Many studies make use of off-shift technicians or operators to take the observations.
RECRUITMENT & SELECTION
RECRUITMENT Definition Of Recruitment: Finding and Attracting Applications
PURPOSE AND IMPORTANCE OF RECRUITMENT: - 1. Help increase success rate of selection process by reducing number of under qualified or over-qualified applications. Though theoretically recruitment process is said to end with the receipt of applications. The Process begins when new recruits are sought and ends when their applications are submitted. FACTORS GOVERNING RECRUITMENT External Factors: y y y y y Demand and Supply (Specific Skills) Unemployment Rate (Area-wise) Labor Market Conditions Political and Legal Environment (Reservations.³Recruitment is the Process of finding and attracting capable applicants for employment. applicants. Increase the pool of job candidates at minimum cost 3. Identify and prepare potential job applicants Evaluate effectiveness of various recruitment techniques and sources for job 7. Labor laws) Image Internal Factors y Recruitment Policy (Internal Hiring or External Hiring?) .´ MEANING OF RECRUITMENT: Recruitment is understood as the process of searching for and obtaining applicants for jobs. 5. The result is a pool of application from which new employees are selected. from among them the right people can be selected. Reduce the probability that job applicants once selected would leave shortly 4. in practice the activity extends to the screening of applications so as to eliminate those who are not qualified for the job. Meet legal and social obligations 6. Determine the present and future requirements in conjunction with personnel planning and job analysis activitie s 2.
y y y y
Human Resource Planning (Planning of resources required) Size of the Organization (Bigger the size lesser the recruitment problems) Cost Growth and Expansion Plans
RECRUITMENT PROCESS Recruitment Planning y y
Number of contacts Types of contacts
Recruitment Strategy Development y
Make or Buy Employees y Technological Sophistication y Where to look y How to look
Internal Recruitment (Source 1) y y y y y y
Present employees Employee referrals Transfers & Promotions Former Employees Previous Applicants Evaluation of Internal Recruitment
External Recruitment (Source 2)
y y y y y y y y y
Professionals or Trade Associations Advertisements Employment Exchanges Campus Recruitment Walk-ins Interviews Consultants Contractors Displaced Persons Radio & Television
y Acquisitions & Mergers y Competitors y Evaluation of External Recruitment Searching y Source activation y Selling y Screening of Applications Evaluation and Cost Control y y y y y y y
Salary Cost Management & Professional Time spent Advertisement Cost Producing Supporting literature Recruitment Overheads and Expenses Cost of Overtime and Outsourcing Consultant¶s fees
Evaluation of Recruitment Process
y y y y y y
Return rate of applications sent out Suitable Candidates for selection Retention and Performance of selected candidates Recruitment Cost Time lapsed data Image projection
1. 2. 3.
INTERNAL RECRUITMENT Advantages Disadvantages Less Costly 1. Old concept of doing things Candidates already oriented 2. It abets raiding towards organization 3. Candidates current work may be Organizations have better affected knowledge about internal 4. Politics play greater roles candidates 5. Morale problem for those not promoted. Employee morale and motivation is
E TERNAL RECRUITMENT Advantages Disadvantages Benefits of new skills and talents 1. Better morale and motivation associated Benefits of new experiences with internal recruiting is denied Compliance with reservation policy 2. It is costly method becomes easy 3. Chances of creeping in false positive Scope for resentment, jealousies, and false negative errors and heartburn are avoided. 4. Adjustment of new employees takes longer time.
1. 2. 3. 4.
Selection is the process of picking up individuals (out of the pool of job applicants) with requisite qualifications and competence to fill jobs in the organization. A formal definition of Selection is as under
Definition of Selection: Process of differentiating
³Selection is the process of differentiating between applicants in order to identify and hire those with a greater likelihood of success in a job.´
DIFFERENCE BETWEEN RECRUITMENT AND SELECTION: Recruitment 1. Recruitment refers to the process of identifying and encouraging prospective employees to apply for jobs. 2. Recruitment is said to be positive in its approach as it seeks to attract as many candidates as possible. Selection 1. Selection is concerned with picking up the right candidates from a pool of applicants. 2. Selection on the other hand is negative in its application in as much as it seeks to eliminate as many unqualified applicants as possible in order to identify the right candidates.
PROCESS / STEPS IN SELECTION
Stress Interviews. the most critical step is the selection decision is to be made. tests. Panel Interview. Selection Tests: Jobseekers who past the preliminary interviews are called for tests. Preliminary Interview: The purpose of preliminary interviews is basically to eliminate unqualified applications based on information supplied in application forms. Job Offer: The next step in selection process is job offer to those applicants who have crossed all the previous hurdles. On the other hands preliminary interviews is often called a courtesy interview and is a good public relations exercise. . Besides this there are some other tests also like Interest Tests (activity preferences). and Ability Tests and are conducted to judge how well an individual can perform tasks related to the job. There are various types of tests conducted depending upon the jobs and the company. 3. Medical Tests. The views of line managers are considered generally because it is the line manager who is responsible for the performance of the new employee. 6. or Sequential Interviews. Selection Decision: After obtaining all the information. 8. Psychometric Tests etc. 2. containing written contractual terms of employment etc. Contract of Employment: After the job offer is made and candidates accept the offer. Personality Tests. A job offer is often contingent upon the candidate passing the physical examination. telephone conversations. the candidate is required to undergo a physical fitness test. Interviews can be One-to-One. However it is merely a formality and selections decisions are seldom affect ed by it. It is considered to be an excellent selection device.1. 4. The final decision has to be made out of applicants who have passed preliminary interviews. It is made by way of lett er of appointment. The basic objective is to reject misfits. These tests can be Aptitude Tests. Behavioral Interviews. Reference checks can be through formal letters. Besides there can be Structured and Unstructured interviews. Physical Examination: After the selection decision is made. Employment Interview: The next step in selection is employment interview. Here interview is a formal and in-depth conversation between applicant¶s acceptability. 7. Graphology Test (Handwriting). 5. final interviews and reference checks. Reference & Background Checks: Reference checks and background checks are conducted to verify the information provided by the candidates. certain documents need to be executed by the employer and the candidate. Here is a need to prepare a formal contract of employment.
´ MEANING OF TRAINING & DEVELOPMENT: - The need for Training and Development is determined by the employee¶s performance deficiency. 5. computed as follows. Detailed job descriptions and job specifications prepared in advance and endorsed by personnel and line management 2. 3. Our limited perceptual ability is obviously a stumbling block to the objective and rational selection of people. 2. relatives. Reliability: A reliable test may fail to predict job performance with precision. Help the appointed candidate to succeed by training and management development BARRIERS TO EFFECTIVE SELECTION: - 1. Training & Development Need = Standard Performance ± Actual Performance . friends and peers to select particular candidate are also barriers to selection. Involve line managers at all stages 6. Trained the selectors 3. region. 4. Attempt to validate the procedure 7.ESSENTIALS OF A GOOD SELECTION PRACTICE 1. race or gender etc. Perception: We all perceive the world differently. Fairness: Barriers of fairness includes discrimination against religion. Determine aids to be used for selection process 4. Pressure: Pressure brought on selectors by politicians. However it does not predict the job success accurately. bureaucrats. usually by changing the employee¶s attitude or increasing his or her skills and knowledge. Check competence of recruitment consultants before retention 5. TRAINING & DEVELOPMENT Definition of Training & Development: Improve performance ³Training & Development is any attempt to improve current or future employee performance by increasing an employee¶s ability to perform through learning. Validity: A test that has been validated can differentiate between the employees who can perform well and those who will not.
Distinction between Training and Education Training Application oriented Education Theoretical Orientation Job experience Specific Task in mind Narrow Perspective Training is Job Specific Classroom learning Covers general concepts Has Broad Perspective Education is no bar Difference between Training and Development Training Training is skills focused Development Development is creating learning abilities Development is not education dependent Development depends on personal drive and ambition Development is voluntary Development is a broader concept focused on personality development Development includes training wherever necessary Development aims at overall personal effectiveness including job efficiencies Training is presumed to have a formal education Training needs depend upon lack or deficiency in skills Trainings are generally need based Training is a narrower concept focused on job related skills Training may not include development Training is aimed at improving job related efficiency and performance Importance of Training & Development y y y y Helps remove performance deficiencies in employees Greater stability.We can make a distinction among Training. flexibility and capacity for growth in an organization Accidents. scraps and damages to machinery can be avoided Serves as effective source of recruitment . Development and Educ ation.
y It is an investment in HR with a promise of better returns in future y Reduces dissatisfaction. complaints and turnover of employees Need of Training Individual level y y y y Diagnosis of present problems and future cha llenges Improve individual performance or fix up performance deficiency Improve skills or knowledge or any other problem To anticipate future skill-needs and prepare employee to handle more challenging tasks y To prepare for possible job transfers Group level y To face any change in organization strategy at group levels y When new products and services are launched y To avoid scraps and accident rates Methods of Training On the Job Trainings: These methods are generally applied on the workplace while employees is actually working. absenteeism. Following are the on-the-job methods. Advantages of On-the-Job Training: It is directly in the context of job It is often informal It is most effective because it is learning by experience It is least expensive Trainees are highly motivated It is free from artificial classroom situations Disadvantages of On-the-Job Training: .
Job Instruction: It may consist an instruction or directions to perform a particular task or a function. Off the Job Trainings: These are used away from work places while employees are not working like classroom trainings. Advantages of Off-the-Job Training: Trainers are usually experienced enough to train It is systematically organized Efficiently created programs may add lot of value Disadvantages of Off-the-Job Training: . Apprenticeships: Generally fresh graduates are put under the experienced employee to learn the functions of job. Interdepartmental coordination can be improved. usually employees are put on different jobs turn by turn where they learn all sorts of jobs of various departments. Job Rotation: In this method. seminars etc. Disadvantage ± It may become too much for an employee to learn. instills team spirit. It may be in the form of orders or steps to perform a task. Employees basic talents may remain under utilized. 3.Trainer may not be experienced enough to train It is not systematically organized Poorly conducted programs may create safety hazards On the Job Training Methods 1. It may consist a part of their educational courses. 4. It is not focused on employees own job responsibilities. Following are the off -the-job methods. 2. Internships and Assistantships: An intern or an assistants are recruited to perform a specific time-bound jobs or projects during their education. The objective is to give a comprehensive awareness about the jobs of different departments. Job Coaching: An experienced employee can give a verbal presentation to explain the nitty-gritty¶s of the job. 5. Advantage ± employee gets to know how his own and other departments also function.
2. Classroom Lectures Audio-Visual Simulation Case Studies Sensitivity Trainings. 4. 4. 7. b.It is not directly in the context of job It is often formal It is not based on experience It is least expensive Trainees may not be highly motivated It is more artificial in nature Off the Job Training Methods 1. 3. 6. Programmed Instructions Computer Aided Instructions Laboratory Training Barriers to Effective Training: 1. 5. 2. 4. Management Commitment Training & Business Strategies Integration Comprehensive and Systematic Approach Continuous and Ongoing approach . a. Lack of Management commitment Inadequate Training budget Education degrees lack skills Large scale poaching of trained staff Non-coordination from workers due to downsizing trends Employers and B Schools operating distantly Unions influence How To Make Training Effective? 1. 5. c. 3. 3. 2.
Individual or Group 3. Daily Work Routine Organization Profile Importance of Jobs to the organization Detailed Orientation Presentations Purpose of Orientation 1. To make new employees feel at home in new environment To remove their anxiety about new workplace To remove their inadequacies about new peers To remove worries about their job performance To provide them job information. 2. Promoting Learning as Fundamental Value 6. 2. their co-workers and the organization per se.´ Orientation conveys 4 types of information: 1. 3.5. Creations of effective training evaluation system INDUCTION & ORIENATION Definition 1: Planned Introduction ³It is a Planned Introduction of employees to their jobs. 3. environment Types of Orientation Programs 1. Prepare for receiving new employee Determine information new employee wants to know Determine how to present information Completion of Paperwork What is the difference between induction and orientation? . 4. 4. Serial or Disjunctive Prerequisites of Effective Orientation Program 1. 5. Formal or Informal 2. 4. 3. 2.
continues through the selection process and i s not complete until the new team member is comfortable as a full contributor to the organization's goals. which cannot wait . Reengineering TQM (Total Quality Management) Continuous Change Fixing and Improving Mostly focused on µAs-Is¶ Systems indispensable Bottom to Top Re engineering Radical and One time Change Redesigning Mostly focused on µwhat can be?¶ Top to Bottom .they vary according to your situation. We only employ new people one at a time . or handled as participant in an outside program. Perhaps a buddy system on the job may be the best way to deal with these. Other subjects may be incorporated with refresher training for current staff.where the facilities are.Induction referred to formal training programs that an employee had to complete before they could start work Orientation was the informal information giving that made the recruit aware of the comfort issues . what time lunch is and so forth.How long should the induction process take? It starts when the job ad is written. Perhaps some can wait until there are groups of people who have started in the last few months Change Management Structural Changes Authority Coordination Centralization Technological Changes Processes Methods Equipments People Changes Attitudes Expectations Behaviors TQM V/s.how can we induct them? There are some issues.
"8Evolutionary (Planned) Change versus Revolutionary Action Creating Change for Improvement and Competitive Advantage Change creates opportunities. in many types and shapes. Very successful ones anticipate it." 5 Innovation redefines growth opportunities." It's all around you. but only for those who recognize and seize it. or the Business Space. the world is a different place than it was yesterday. The strategic selection of the best strategic positioning in the playing field. "You have to find subtle ways to introduce change. seizing the second. Successful firms recognize c hange. "At certain points.What is creativity? Combining new ideas in unique ways or associating ideas in unusual ways What is innovation? Turning creative ideas into useful products. the difference becomes material. You can bring it about yourself or it can come in ways Why Change Management? True success and long-term prosperity in the new world depends on your ability to adapt to different and constantly changing conditions. "Seeing is the first step. and continuously innovating is the third. new concepts. Successful change efforts are those where the choices both are internally consistent and fit key external and situational variables." 4 . and give feedback to people so that they can accept and grow with it. Today. services or methods of operations 3 Sets of variable simulate innovation Structural Changes Cultural Changes Human Resources Changes Change Defined "Change is the window through which the future enters your life. your firm must take is complicated by the fact that the characteristics of the Business Space change over time.
´ Meaning of Performance Appraisals Performance Appraisals is the assessment of individual¶s performance in a systematic way. to regard it as possible. Reasons and Measures of future performance ³It is formal. judgment. co-operation. organization and society all benefits. The ability to anticipate is one of the key ingredients of efficient speed and change management. initiative. Assessment should be confined to past as well as potential performance also. supervision. Performance Appraisals and Job Ana lysis Relationship Job Analysis Performance Standards Performance Appraisals job Describe the job Describe the work and Translate ." 7 PERFORMANCE APPRAISALS Definition 1: Systematic Evaluation ³It is a systematic evaluation of an individual with respect to performance on the job and individual¶s potential for development. structured system of measuring. evaluating job related behaviors and outcomes to discover reasons of performance and how to perform effectively in future so that employee. leadership abilities.Anticipating Change There is big difference between anticipating and guessing. dependability. Anticipation means expecting. It is a developmental tool used for all round development of the employee and the organization. "Being able to anticipate that which is likely to occur in the next few mo nths and the next few years is enough to give you an edge over 99% of the population who simply go along with whatever happens.´ Definition 2: Formal System. being aware of something in advance. quality and quantity of output. versatility and health. The second definition is more focused on behaviors as a part of assessment because behaviors do affect job results. The performance is measured against such factors as job knowledge.
personnel requirement requirements into levels relevant strengths and of a particular job. of acceptable or weaknesses of each unacceptable individual. performance 4 Goals of Performance Appraisals General Goals Developmental Use Specific Goals Individual needs Performance feedback Transfers and Placements Strengths and Development needs Salary Promotion Retention / Termination Recognition Lay offs Poor Performers identification HR Planning Training Needs Organizational Goal achievements Goal Identification HR Systems Evaluation Reinforcement of needs Validation Research organizational Administrative Decisions / Uses Organizational Maintenance Documentation .
human and computer assistance Difference between Traditional and Modern (Systems) approach to Appraisals Categories Guiding Values Traditional Appraisals Leadership Styles Frequency Formalities Rewards Modern. Evaluative Facilitative. Organizational TECHNIQUES / METHODS OF PERFORMANCE APPRAISALS Numerous methods have been devised to measure the quantity and quality of performance appraisals. Broadly all methods of appraisals can be divided into two different categories. 2. 5. 3.For HR Decisions Legal Requirements Performance Appraisal Process 1. Systems Appraisals Individualistic. Coaching Occasional Frequent High Low Individualistic Grouped. Control Systematic. oriented. Each of the methods is effective for some purposes for some organizations only. Objectives definition of appraisal Job expectations establishment Design an appraisal program Appraise the performance Performance Interviews Use data for appropriate purposes Identify opportunities variables Using social processes. Documentary Developmental. None should be dismissed or accepted as appropriate except as they relate to the particular needs of the organization or an employee. 7. 6. 8. y y Past Oriented Methods Future Oriented Methods . 4. Problem solving Directional. physical processes.
Past Oriented Methods 1. Forced Distribution Method: here employees are clustered around a high point on a rating scale. Advantages ± Evaluations are based on actual job behaviors. feedback may be too much and may appear to be punishment. The total numerical scores are computed and final conclusions are derived. standardization. 6. feedback is easy. initiative. Advantages ± helps overcome rating errors. Each scales ranges from excellent to poor. use of improper weighs by HR. ratings are supported by descriptions. reduces recency biases. unrealistic. output. The rater is forced to make a choice. Advantages ± Absence of personal biases because of forced choice. checklist of statements of traits of employee in the form of Yes or No based questions is prepared. Behaviorally Anchored Rating Scales: statements of effective and ineffective behaviors determine the points. ease of administration. Forced Choice Method: The series of statements arranged in the blocks of two or more are given and the rater indicates which stateme nt is true or false. HR department does actual assessment. low cost. Disadvantages ± Suffers from distortions inherent in most rating techniques. no formal training required. Supervisors as and when they occur record such incidents. 4. Advantages ± Eliminates Disadvantages ± Assumption of normal distribution. chances of subordinate improvement are high. Rating Scales: Rating scales consists of several numerical scales representing job related performance criterions such as dependability. Disadvantages ± Negative incidents can be prioritized. Advantages ± Adaptability. Disadvantages ± Statements may be wrongly framed. Rater is compelled to distribute the employees on all points on the scale. 5. Advantages ± economy. forgettin g incidents. Disadvantages ± Raters biases. Critical Incidents Method: The approach is focused on certain critical behaviors of employee that makes all the difference in the performance. attitude etc. The rater is supposed to say. . large number of employees covered. does not allow rater to give relative ratings 3. limited training required. errors of central tendency. Here the rater only does the reporting or checking and HR department does the actual evaluation. which behavior describes the employee performance. easy to use. They are said to be behaviorally anchored. Disadvantages ± Rater¶s biases 2. It is assumed that the performance is conformed to normal distribution. overly close supervision. every type of job can be evaluated. attendance. Checklist: Under this method.
Confidential Records: Mostly used by government departments. attendance. Comparative Evaluation Method (Ranking & Paired Comparisons): These are collection of different methods that compare performance with that of other coworkers. reasoning ability. 9. The usual techniques used may be ranking methods and paired comparison method.7. Feedback to the assessee is given only in case of an adverse entry. initiative. Cost Accounting Method: Here performance is evaluated from the monetary returns yields to his or her organization. Field Review Method: This is an appraisal done by someone outside employees¶ own department usually from corporate or HR department. 10. Advantage ± It is extremely useful in filing information gaps about the employees that often occur in a better-structured checklist. technical ability. . 8. Essay Method: In this method the rater writes down the employee description in detail within a number of broad categories like. existing capabilities and quali fications of performing jobs. Advantages ± Useful for managerial level promotions. Cost to keep employee. Performance Tests & Observations: This is based on the test of knowledge or skills. originality and resourcefulness etc. leadership. overall impression of performance. strengths and weaknesses and training needs of the employee. and benefit the organization derives is ascertained. self expression. Hence it is more dependent upon cost and benefit analysis. however its application in industry is not ruled out. team work. Disadvantages ± It its highly dependent upon the writing skills of rater and most of them are not good writers. 12. Observation of actual behaviors not possible. Disadvantages ± Outsider is generally not familiar with employees work environment. 11. Here the report is given in the form of Annual Confidentiality Report (ACR) and may record ratings with respect to following items. They may get confused success depends on the memory power of raters. when comparable information is needed. promoteability of employee. The tests may be written or an actual presentation of skills. Disadvantages ± Tests may suffer if costs of test development or administration are high. Disadvantage is that it is highly subjective and ratings can be manipulated because the evaluations are linked to HR actions like promotions etc. Tests must be reliable and validated to be useful. Advantage ± Tests may be apt to measure potential more than actual performance. The system is highly secretive and confidential.
ratings strongly influenced by assessee¶s inter-personal skills. allocation of merit pay may result in setting short-term goals rather than important and long-term goals etc. role playing and other similar activities which require same attributes for successful performance in actual job. and discussion with supervisors and review of other evaluations 3. Assessment Centers: Assessees are requested to participate in in-basket exercises. administrative ability. y Paired Comparison Methods: In this method each employee is rated with another employee in the form of pairs. persuasive abili ty. y y y y Establish goals and desired outcomes for each subordinate Setting performance standards Comparison of actual goals with goals attained by the employee Establish new goals and new strategies for goals not achieved in previous year. Psychological Appraisals: These appraisals are more directed to assess employees potential for future performance rather than the past one. decision making. creativity and mental alertness etc. planning and organizational ability. It is done in the form of in depth interviews. 2. sensitivity to feelings. communicating ability. Disadvantages ± Not applicable to all jobs. energy level. psychological tests. MBO process goes as under.y Ranking Methods: Superior ranks his worker based on merit. Advantage ± It is more useful for managerial positions. psychologists. computer simulations. self confidence. resistance to stress. However how best and why best are not elaborated in this method. The characteristics assessed in assessment center can be assertiveness. from best to worst. Disadvantages ± Costs of employees traveling and lodging. N x (N-1) / 2 Future Oriented Methods 1. It is easy to administer and explanation. Solid performers may feel . The number of comparisons may be calculated with the help of a formula as under. Management By Objectives: It means management by objectives and the performance is rated against the achievement of object ives stated by the management. work groups.
Also reliability. Advantages ± well-conducted assessment center can achieve better forecasts of future performance and progress than other methods of appraisals. 360-Degree Feedback: It is a technique which is systematic collection of performance data on an individual group. The tests also make sure that the wrong pe ople are not hired or promoted. 4. team members. In fact anyone who has useful information on how an employee does a job may be one of the appraisers. content validity and predictive ability are said to be high in assessment centers. peers and self. derived from a number of stakeholders lik e immediate supervisors. Feedback Mechanism: Performance evaluation is the central mechanism that not only provides feedback to individuals but also aids in the assessment of the progress of organization as a whole. Finally it clearly defines the criteria for selection and promotion.. Analy ers: They operate in two type of product domain markets. Consistency between strategy and job behavior: Performance appraisal not only is a means of knowing if the employee behavior is consistent with the overall strategies focus but also a way of bringing to the fore any negative consequence of the strategy . Without appraisals managers of any firm can only guess as to whether or not employees are working towards realization of the organization goals. Besides encouraging high level of performance. and determining employee needs for development. organizations can be grouped under 3 different categories as defenders. prospectors and analyzers.suffocated in simulated situations. From the strategic management point of views. the evaluation system is useful in identifying employees with potential. Defenders: They have narrow and stable product market domain Prospectors: They continuously search for new products and op portunities. Those who are not selected for this also may get affected. customers. rewarding them equitably. However performance appraisal systems has strategic importance in three different ways. Organi ational Support Factors for Performance Appraisal Systems Performance appraisal serves many organizational objectives and goals.
Should be based on job analysis 7. INCENTI ES BASED COMPENSATION Incentives are monetary benefits paid to workmen in recognition of their outstanding performance. Consistent Documentations maintained No room for discrimination based on cast. region 10. leniency. Use of relevant rating tools or methods 6. Consistency between alues and Job Behavior link: Performance evaluation is a mechanism to reinforce values and culture of the organi ation. The audit may include one division or entire company. Basis of HR Audit . etc. Use of objectively verifiable data 8. Uniformity of appraisals 3.± behavior fit. race. severity etc. They are defined as variable rewards granted according to variations in the achievement of specific results. It gives feedback about HR functions to operating managers and HR specialists. Thus the performance appraisal system is an important mechanism to elicit feedback on the consistency of the strategy ± behavior link. HUMAN RESOURCE AUDIT Nature of HR Audit HR Audit is a tool for evaluating the personnel activities of an organi ation. creed. It also shows how well managers are meeting HR duties. Essentials of a Good Performance Appraisal System: 1. Defined performance standards 4. Another importance is to align appraisal with organi ational culture. religion.Thus the purpose of performance evaluation is to make sure that employee¶s goals. Trained Raters 5. employees behavior and feedback of information about performance are all linked to the corporate strategy. 9. Avoid rating problems like halo effect. central tendency. Standardi ed Performance Appraisal System 2.
Finding critical personnel problems 7. Job Satisfaction Survey 8. Job Analysis 7. y Human Resource Function Audit y Managerial Compliance Audit y Human Resource Climate Audit Employee Turnover .(Personnel Research) 1. Based on this HR audit can be spread across following four different categories. A thorough review of HR information systems Scope and Types of HR Audit HR Audit must cover the activities of the department and extend beyond because the people problems are not confined to HR department alone. Creation of increased acceptance of changes in HR department 10. Clarification of HR duties and responsibilities 5. Wage Surveys 2. Ensuring timely compliance with legal requirements 8. Identification of contributions of HR department 2. Industrial settlements 6. High accident frequency surveys Benefits of HR Audit 1. Reduction of HR costs through more effective personnel procedures 9. Improvement of professional image of HR department 3. Training efforts effectiveness 4. Supervisor¶s effectiveness 5. Employee needs survey 9. Encouragement of greater responsibility and professionalism among HR members 4. Recruitment Sources effectiveness 3. Stimulation of uniformity of HR policies and practices 6. Attitude Surveys 10.
P = f (A x M) Definition 1: Choices among voluntary activities A process governing choices made by persons or lower organisms among alternative forms of voluntary activity Definition 2: Arouse enthusiasm to pursue A result of internal and external processes to the individual that arouse enthusiasm and persistence to pursue a certain course of action Definition 3: Need that activates behavior A process that starts with a physiological deficiency or need that activates behavior or a drive that is aimed at a goal or an incentive.Absenteeism Accidents Attitude Surveys y HR . 5. 2.Corporate Strategy Audit Approaches to HR Audit 1. 4. 3. Comparative Approach (Benchmarking with another company) Outside Authority Approach (Outside consultants¶ standards) Statistical Approach (Statistical measures and tools) Compliance Approach (Legal and company policies) Management By Objectives Approach (Goals & Objectives based) MOTIVATION Performance is a function of ability and motivation. Motivation Process (6 Steps) . Meaning of Motivation Motivation is a set of forces that cause people to behave in certain ways.
2. not seen Dynamic nature of human needs Objectives of Motivation High productivity Increase quality consciousness Stimulate participation at work Theories of Motivation Early Theories Scientific Management: Motivation by scientific management is associated with F. Taylor said that people are . 4.W. 3. Taylor¶s techniques of scientific management. Individual Needs Search for ways to satisfy needs Goal & Objectives directed Increased performance Receiving rewards or punishment Reassessment of needs Criticality of Motivation to Managers Importance of Motivation y y y y y y Motivation helps employees find new ways of doing a job Motivation makes employees quality conscious Motivation increases productivity very high Motivation stimulates both participation and production at work Motivation comprehends jobs related behaviors Motivation increases attention towards human resources along with physical resources Challenges of Motivation y y y y Diverse and changing workforce Rightsizing. 6. Downsizing. Pay-for-Performance strategies Motives can only be inferred. Hire-n-Fire.1. 5.
Frustration at higher level need may lead to regression at lower level need. only stressed on monetary needs.primarily motivated by economic rewards and will take direction if offered an opportunity to improve their economic positions. Porter¶s Performance and Satisfaction Model) Reinforcement categories ERG Theory (Alderfer): Existence ± Relatedness ± Growth ERG theory emphasizes more on three broad needs that is existence. Adam¶s Equity. Greater importance was given to informal gr oups. . However too much reliance on social contacts to improve productivity was a major drawback. it is less restrictive and limiting. Based on this Taylor described following arguments y Physical work could be scientifically studied to determine optimal method of performance of a job y Workers could be more efficient by telling them how they were to do a job y Workers would accept the above prescription if paid on differentiated piecework basis y Disadvantages ± Dehumanized workers. the individual¶s desire to increase lower level needs takes place. Thus ERG theory contains frustration-regression dimension. relatedness and growth. Advantages ± More consistent with our knowledge of differences among people. Alderfer¶s ERG. Achievement Motivation Theory) Process Theories (Vroom¶s expectancy. treated them as mere factors of production. Herzberg¶s 2-factors. it is a valid version of need hierarchy. ERG theory further states that when a higher level need is frustrating. Its hypothesis is that there may be more than one need operating at the same time. ignored human needs Human Relations Model: Elton Mayo¶s human relations model stressed on social contacts as motivational factor. Contemporary Theories Content Theories (Maslow¶s Need Hierarchy.
voluntary cooperation Morale is attitudes of individuals and groups towards their work environment and towards voluntary cooperation to the full extent of their ability in the best possible interest of the organization. responsibility. status. recognition. it focuses more on job satisfaction not on motivation. reliability questioned. Advantages ± tremendous impact on stimulating thought on motivation at work. job context factors.Disadvantages ± No clear-cut guideline of individual behavior patterns. Definition 2: Attitudes. job design techniqu e of job enrichment is contribution of herzberg. Disadvantages ± Limited by its methodology. double dimensions of two factors are easy to interpret and understand. increased understanding of role of motivation. inconsistent with previous research. Distinction between Morale and Motivation: Morale Motivation . too early to pass a judgment on the overall validity of the theory. willingness Morale is a mental condition or attitude of individual and groups. advancement and growth. administration and working conditions. specific attention to improve motivational levels. Hygiene factors deal with external factors like company policy. Motivators are generally achievement. attitude. which are related to job satisfaction. security and interpersonal relations. no overall m easure of satisfaction utilized. salary. which determines their willingness to co-operate. Two-Factor Theory (Her berg) Fredrick Herzberg states that the motivation concept is generally driven by two factors of motivators of job satisfactions and hygiene factors about job dissatisfaction. MORALE Definition 1: Mental condition. supervision. productivity factor ignored. These factors are known as hygiene factors or job dissatisfiers. the work itself.
Morale reflects Motivation. y Motivation & Loyalty: Personnel policies help build employee motivation and loyalty. Motivation moves person to action. Importance of Personnel Policy Personnel policy is very important for an organization since it gives several benefits for managing your human resources effectively. It mobilizes sentiments. Motivation is a potential to develop morale. y Basic Needs: Personnel policy helps the management to think deeply about basic needs of organization and the employees. It mobilizes energy. 2. It is a statement of intentions committing the management to a general course of action. 4. attitudes and sentiments that contribute towards general satisfaction at workplace. y Fair Play & Justice: Personnel policies reflect established principles of fair play and justice. Composite of feelings. y Growth: Personnel policies help people grow within the organization. y Minimi e Favoritism: Personnel policies help minimize favoritism and discrimination y Continuous action : Personnel policies ensure continuous action even if top management is changed. y Consistent Treatment: Personnel policies ensure consistent treatment of all personnel throughout the organization. PERSONNEL POLICIES A Policy is a Plan of Action. 4. A Function of drives and needs. 2. A Function of freedom or restraint towards some goal. 5. In the light of these benefits listed below we would be able to understand the relative importance of Personnel policy. 3. These policies promote stability. . 3. 1. A Process of stimulating individuals into action to accomplish desired goals. y Standard of Performance: Personnel policies serve as a standard of performance.1.
worker¶s participation in management means associating representatives of workers at every stage of decision-making. Empowered Teams 11. decisions and negotiations to more institutionalized forms such as the presence of the workers¶ members on management or supervisory boards or even management by workers themselves. Joint Councils 6.Representatives of workers from workers themselves 4. Methods of Workers¶ Participation in Management 1. Definition 1: Association of Workers in decision-making process Workers¶ participation may be taken to cover all terms of association of workers and their representatives with the decision -making process. Suggestion Schemes 9. consultations.Outside trade union participation should be avoided . Quality Circles 10. Complete Control 4. Total Quality Management 12. Board Level 2.Free flow of information and communication 3. Ownership 3. Financial Participation Prerequisites of Successful Participation 1. This amounts to the workers having a share in the reaching of final managerial decisions in an enterprise. Job Enlargement and Enrichment 8.Clearly defined and complementary Objectives 2. ranging from exchange of information. Participative management is considered as a process by which the worker¶s share in decision -making extends beyond the decisions that are implicit in the specific content of the jobs they do.WORKERS¶ PARTICIPATION IN MANAGEMENT Broadly. Collective Bargaining 7. Staff Councils 5.
coal. job satisfaction and cooperation improves Reduced conflicts and stress More commitment to goals Less resistance to change Less labor problems Better quality suggestions expected ORGANIZATIONAL DOWNSIZING Downsizing necessarily means reducing work force to an optimal level depending upon the business conditions and organizational needs. It is not a termination of service.5. It is a termination for reasons other than disciplinary actions. But employee should have completed at least one year of complete serv ice in order to receive compensation. breakdown of machinery.Association at all levels of decision-making Benefits of Participation 1. Lay Offs Lay of is inability of the employer to provide employment to workers due to circumstances beyond his control such as shortage of power. If notice and compensation are not given. the worker will not be called as retrenched. Retrenchment: It means termination of service. It should not be overstaffed and or understaffed. 5. 7. 2. 3. expiry and termination of contract or prolonged illness. Lay off compensation can be claimed as a statutory right by the worker if he has completed .No threat by participation 7. 8. Retrenchment compensation and notice for retrenchment are only pre-conditions for retrenchment and not a right. Gives identity to an employee Motivates employee Self-esteem. There are broadly following method used to downsize the workforce as mentioned below. retirement or superannuating. It is said that an organization should be rightly staffed ie. natural calamity etc. Compensation is payable for 15 days wages for every completed year of service besides one month¶s notice or pay in lieu of notice.Workers¶ education and training 6. 6. 4. which a retrenched worker can claim.
further thinking.one year of continuous service or has worked for 240 days on the surface or 190 days underground in 12 calendar months. An organizatio n chart displays the organizational structure and shows job titles. Formal Organisation The intentional structure of roles in a formally organised enterprise is a f ormal organisation It should have an attribute of flexibility. Formalization is an important aspect of structure. and coordinated. The formal organization can be seen and represented in chart form. a discussion board for further modifications without affecting the actual changes. lines of authority. Compensation payable is half of the wages. and goals are clearly stated. procedures. and relationships between departments. . Voluntary Retirement Schemes VRS are announced when there is a huge pool of old aged manpower occupying senior positions amounting to surplus. MEANING OF ORGANIZATION STRUCTURE Organizational structure is the formal decision -making framework by which job tasks are divided. Many organizations are providing liberal incentives to leave before age of superannuating.It is a blue print or a basis for proper conceptualization. Organisation Charts: The organization charts are the sample and an understandable way showing the formal organization structure-It gives a clear overview of the shape and structure of an organization. grouped. In a group functioning the individual effort will have to be chanelize through the group leader and has to be f or the organization¶s good. room for discretion and the recognition of individual talents and the capacities.It is an order and the design of an organization captured in a visual form. It is the extent to which the units of the organization are explicitly defined and its policies. It is the official organizational structure conceived and built by top management. VRS in other words is a retirement before the age of retirement.
Pontiac. In a conglomerate organization. For example. In a functional organi ation . A central headquarters. Organic Structure On the other hand. Matrix Structure In a matrix organization. General Motors' divisions include Chevrolet. A weakness however. divisions may be unrelated. authority is determined by the relationships between group functions and activities. Matrix structures utilize functional and divisional chains of command simultaneously in the same part of the organization. commonly for one -of-a-kind projects. and to solve a difficult problem. teams are formed and team members report to two or more managers. coordinates and controls the activities. Divisional Structure In a divisional organi ation .Informal Structure The informal organization is the network. Divisional structures are made up of self -contained strategic business units that each produces a single product. and provides support services between divisions. It is the personal and social relationships that arise spontaneously as people associate with one another in the work environment. to ensure the continuing success of a product to which several departments directly contribute. the organic structure is more flexible. of social interactions among its employees. It is used to develop a new product. Organic organizations have a flat structure with only one or two levels of management. Functional departments accomplish division goals. Oldsmobile. Functional Structure Functions or divisions arrange traditional organizations. The purpose of this structure is to create independent small businesses or enterprises that can rapidly respond to customers' needs or changes in the business environment. corporate divisions operate as relatively autonomous businesses under the larger corporate umbrella. a matrix organization is formed that allows the organization to take advantage of new opportunities. and less concerned with a clearly defined structure. Flat organi ations emphasize a decentralized approach to management that encourage high employee in volvement in decisions. By superimposing a project structure upon the functional structure. . is the tendency to duplicate activities among div isions. The organic organization is open to the environment in order to capitalize upon new opportunities. and Cadillac. more adaptable to a participative form of management. unrelated to the firm's formal authority structure. The supervisor tends to have a more personal relationship wi th his or her employees. focusing or results.
Planning alerts the company to the types it will need in the short medium and long run. At the society level: Society. developing right attitudes towards the job and the company promoting team spirit among employees and developing loyalty and commitment through appropriate reward schemes. proper attitudes and appropriate values help the nation to get ahead and compete with the best in the world leading to better standard SHIFT IN HR MANAGEMENT IN INDIA Emerging role of human resorce management can be differentiated from the traditional form by following point: TRADITIONAL HR PRACTICE EMERGING HR PRACTICE Administrative role Reactive Separate mission isolated from Company Strategic role Proactive Key part of organisational mission . as a wh ole is the major beneficiary of good human resources practices 6. People with right skills. 2) Scarce talents are put to best use. 5. 1)Employment opportunities multiply. 1) Good human resource practices can help in attracting and retaining the best people in the organization. At the individual level: Effective management of human resources helps employees thus: 4. physical and financial resources in a better way. 3) It allows people to work with diligence and commitment. 1) it promotes team work and team spirit among employees.IMPORTANCE OF HRM 1. 3. 2) it helps in training people for challenging roles. Companies that pay and treat people well always race ahead of others and deliver excellent results 7. At the national level: Effective use of human resources helps in exploitation of natural. At the enterprise levels: 2. 2) It offers excellent growth opportunities to people who have the potential to rise.
In the 21st century HRM will be influenced by following factors. Opportunity and comprehensive framework should be provided for full expression of employees' talents and manifest potentialities. . 3. New skills required. which will work as various issues affecting its strategy: Si e of the workforce. Human Resource Management: Futuristic ision On the basis of the various issues and challenges the following suggestions will be of much help to the philosophy of HRM with regard to its futuristic vision: 1. 5. singled out for praise. There should be a properly defined recruitment policy in the organi ation that should give its focus on professional aspect and merit based selection. peers. For performance appraisal of the employee¶s emphasis should be given to 360 degree feedback which is based on the review by superiors.Production focus Functional Organisation Individuals encouraged. subordinates as well as self-review.functional teams. 4. teamwork People as key investment/assets HRM IN NEW MILLENNIUM Human Resource Management: Major Influencing Factors. Impact of new economic policy. Rising employees' expectations Drastic changes in the technology as well as Life-style changes. Culture prevailing in the organi ation etc. Lean and mean organi ations. rewards People as expenses Service focus Process-based Organisation Cross. Environmental challenges. In every decision-making process there should be given proper weightage to the aspect that employees are involved wherever possible. Networking skills of the organi ations should be developed internally and externally as well as hori ontally and vertically. Composition of workforce. 2. It will ultimately lead to sense of team spirit. Political ideology of the Govern¬ment. Downsi ing and rightsi ing of the organi ations. team-work and inter-team collaboration.
6.Reorganization relates to mergers and acquisitions. All the above fu turistic visions coupled with strategic goals and objectives should be based on 3 H's of Heart. languages. take over. 7. 10. it will ensure effective utilization of resources and will lead towards continuous improvement in all spheres and activities of the organization. For proper utilization of manpower in the organization the concept of six sigma of improving productivity should be intermingled in the HRM strategy. To conclude Human Resource Management should be linked with strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility. it will conform to customer's needs and expectations. it is difficult to imagine circumstances that pose a greater . work ethics and more.Growing internationalization of business has its impact on HRM in terms of problems of unfamiliar laws. think by Head and implement by Hand. decreased hierarchies. Globali ation: . creating of highly involved workforce. internal restructuring of organizations. avoiding discrimination and biases and identifying performance threshold. 11. Corporate Re-organi ations: . TQM will cover all employees at all levels. management styles. It should not be confined to organizational aspects only but the environmental changes of political. 2. HR managers have a challenge to deal with more functions. Head and Hand i. 8. practices. attitudes. 360 degree feedback will further lead to increased focus on customer services . economic and social considerations should also be taken into account. more heterogeneous functions and more involvement in employee¶s personal life. CHALLENGES OF HRM IN INDIAN ECONOMY or CHALLENGES OF MODERN MANAGEMENT 1.e. competitions. we should feel by Heart. 9.. The capacities of the employees should be assessed through potential appraisal for performing new roles and responsibilities. joint ventures. The career of the employees should be planned in such a way that individualizing process and socializing process come together for fusion process and career planning should constitute the pa rt of human resource planning. More emphasis should be given to Total Quality Management. There should be focus on job rotation so that vision and knowled ge of the employees are broadened as well as potentialities of the employees are increased for future job prospects. In these situations.
and discover new methods of hiring.The basic challenge to HRM comes from the changing character of competitions. The competition is not between individual firms but between constellations of firm. New Organi ational forms: . The trade union membership has fallen drastically worldwide and the future of labor movement is in danger. Hence it is a challenge for HRM to redesign the profile of workers. The challenge for HRM is to cope with the implications of these newly networked relations more and more.In today¶s dynamic world. insecurities and fears during these dynamic trends. Renewed People Focus: . These dynamic workforces have their own implications for HR managers and from HRM point of view is a true challenge to handle. uncertainties. The challenge before HRM is to adopt a proactive industrial relations approach which should enable HR specialist to look into challenges unfolding in the future and to be prepared to convert them into opportunities. working mothers. rather employees are demanding empow erment and equality with management. employee expectations and attitudes have also transformed. more educated and aware workers etc. which highly depend upon a regular exchange of people and information. The structure. even unions have understood that strikes and militancy have lost their relevance and unions are greatly affected by it. large chun k of young blood between age old superannuating employees. and remunerations are not much attractive today. These relationships give birth to completely new forms of organizational structure. Major companies are operating through a complex web of strategic alliances. strategy. in place of more comfortable hierarchical relationships that existed within the organizations for ages in the past. forgings with lo cal suppliers. 5. 4. The challenge of HR manager is to focus on people and make them justifiable and sustainable.Changes in workforce are largely reflected by dual career couples. Traditional allurements like job security. It is a challenge to manage employees¶ anxiety. 7.With the changes in workforce demographics. Changing Demographics of Workforce: . house. training. 3. . systems approach which worked in post war era is no more relevant in today¶s economic environment which is characterized by over capacities and intense competition. remunerating and motivating employees. New Industrial Relations Approach: .challenge for HRM than reorganizations itself. 6.The need of today¶s world and business is the people¶s approach. etc. Changed employee expectations: .
The dramatic increase of women workers.8. Contribution to the success of organi ations: . free dom given to managers is grossly misused to get rid of talented and hard working juniors.The biggest challenge to an HR manager is to make all employees contribute to the success of the organization in an ethical and socially responsible way. minorities and other backward communities in the wor kforce has resulted in the need for organizations to reexamine their policies. 10. 9.Managers are unique tribe in any society. They demand decision -making. Managing the Managers: . The challenge of HRM is how to manage this tribe? How to make them realize that the freedom given to them is to enable them make quick decisions in the interest of the organization and not to resort to witch-hunting. In the name of global competition. practices and values. and operational freedom. Weaker Society interests: . Because society¶s well being to a large extent depends on its organizations. .Another challenge for HRM is to protect the interest of weaker sections of society. productivity and quality the interests of the society around should not be sacrificed. However in the post liberalization era. It is a challenge of today¶s HR managers to see that these weaker sections are neither denied their rightful jobs nor are discriminated against while in service. they believe they are class apart. bossism.
Migration of legacy data My Solution for the above case Infosys delivered a global consolidated system enabling the client to align their HR strategy with business objectives: y Created a global platform ± HR. Canada and Mexico affiliates 2. payroll and benefits processes were consolidated across all North American affiliates .000 employees. Creating a common platform ± consolidate HR. the client wanted a robust. with operations across the United States. Organi ation change management y Architecture/Technology 1. Canada and Mexico and over 25. unified HRMS system HR processes and technology were non-standard with variations across affiliates Manual procedures and disparate data sources led to inefficient processes and low productivity y y Challenges y Business/Process 1.CASE STUDY Global Automotive Manufacturer Transforms HR Processes The Client The client is a leading global automotive OEM headquartered in Japan. payroll and benefits processes across seven US. affiliate-specific locali ation 3. Consolidation of multiple applications and establishing an integrated platform 2. Global processes vs. Business Need y As a part of its global workforce integration program.
com 2. payroll.S RAO. Case studies of HRM. www. and benefits administration into a single consolidated system Managed inter-affiliate transfers more efficiently Reduced annual maintenance costs Better managed inter-company operations y y y REFRENCES 1. termination.8) environment Provided a way out of the existing HR legacy systems Benefits y y y y Reduced HR operations costs and improved productivity Improved global decision-making by enhancing reporting capabilities Instituted employee self-service processes payroll Integrated recruitment. HUMAN RESOUCE MANGEMENT TEXT & CASES BY .google.3 to v8. 3.y y Upgraded PeopleSoft (v8. .
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