Module- I Personal MGT /S Human resource MGT
Human resource management
According to Edwin B Flippo “HRM is the
planning, organizing, directing and controlling of
the procurement, development, compensation,
integration, maintenance and reproduction of
human resources to the end that individual,
organizational and social objectives are
accomplished”
Features of HRM
• Management function • Action oriented
• Comprehensive function • Individual
consideration • Continuous function
• Development of human resource • Pervasive in
nature • Achievement of objectives • Human
behaviour New discipline
Scope of HRM
• Human resource planning • Job analysis and
design • Recruitment and selection • Placement
and orientation • Training and development
• Performance appraisal and Job evaluation
• Employees remuneration • Motivation
• Communication • Human welfare • Industrial
relations
Objectives of HRM
Δ General objectives
• Optimum individual development.• Creation of
good human relationship.• Molding human
resource to achieve maximum production.
Δ Specific objectives
• Selection of right individual to right job.
• Provision for training facilities.• Provision for
orientation to new employees.• Provision for
better working condition.• Provision for fair
wages, salary and other benefits.• Provision for
retirement benefits.• Maintain good relation with
trade union.
Functions of HRM
Δ Managerial functions
• Planning • Organizing • Directing • Coordinating
Δ Controlling functions
• Procurement • Training and development
• Compensation • Integration • Maintenance
• Welfare activities • Personal records
Need and Importance of HRM
• It provides manpower.• It improves employees
innovation and creativity.• It ensure better
standard of living to employees. • It generate
employment opportunities. • It facilitate
organizational success. • It facilitate growth of
entrepreneurship
Evolution of HRM
Δ Period of industrial revolution • Convert
agricultural economy to industrial based one.
Emergence of personal management.• A
department was set up for workers.• Labour
union (1970) • History of modern personal mgt
began with the name of Robert Owen.
Δ Post industrial revolution
• Scientific management • Industrial psychology
• Hawthorne studies • Human relation movement
Approaches to HRM
Δ Behavioral approach
According to this approach employees are
human beings and they have motivations and
aspirations. The behaviour of employees varies
with working condition, job description,
amenities of work etc.
Δ Scientific management approach
F.W Tylor suggested this approaches to work
and employees. This approach makes HRM as a
systematic function based on scientific studies.
Δ System approach
According to this approach, HRM is considered
as a major system and which consist of number
of subsystem. Every function under HRM is
considered as subsystem like, HR planning,
recruitment, selection, placement, induction etc.
Δ Human resource approach
This approach assumes people as resources or
investments. These resources are to be
developed maintained and carefully utilized for
the mutual benefits of employees and mgt
Personal management
According to French Wendell “Personal
management is the recruitment, selection,
development, utilization of an accommodation
to human resources by organization”
Characteristics of personal management
• Management of human resources • Concerned
with employees • Continuous in nature • Goal
oriented • Formulation of personal policies •
Ensure social, economic and individual
satisfaction • Creation of congenial atmosphere
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Module- II Module- III
Personal Human resource Job analysis Selection
management management Job analysis is the process of studying and Selection is the process of choosing of
Employee oriented Resource oriented. collecting information relating to the operation appropriate persons from all the applicants.
Speed of decision High speed in and responsibilities of a specific job. According to Dale Yoder “ selection is the
making is low decision making Job analysis process process in which candidates are divided into two
PM precedes HRM It is emerged late •Collection of actual informations •Preparation of classes those who are to be offered employment
1970s job description • Preparation of job specification and those who are not”.
Reactive to change Proactive tochange • Report preparation. • Approval of the report. Selection procedures
in organization in organization Methods used in job analysis • Receipt & Scrutiny of application • Preliminary
Short term Long term • Questionnaire • Cheque list • Interview Interview • Blank application form • Tests
perspective perspective • Observation • Participation • Technical • Interview• Checking reference • Approval of
Traditionalapproach Modern approach conference • Dairy • Records supervisor • Medical examination • Finalselection
Job description INTERVIEW
Routine function Strategic function.
It is a written statement defining the purpose and It is the face to face talk between employer and
Strategic human resource management (SHRM)
scope of a job. It describe title, location duties applicant. It is done mainly to know the
It is the branch of HRM. It is the process of
and responsibilities of the job. personality, manners, alertness, traits etc.
linking the human resource function with the
Content of job description Types of interview
strategic objectives of the organisation in order
• Name of the job • Summary of the job • Job • formal interview • Informal interview • Patterned
to improve performance.
location • Duties and responsibilities • Degree of interview•Non directive interview•Depth interview
Strategic HRM V/S Traditional HRM
supervision • Relation with other jobs • Physical •Group interview•Board interview•Walk interview
Strategic HRM Traditional HRM
condition • Details of materials, equipments and • Campus interview • Exit interview
It is concerned with It is concerned with
tools Difference between recruitment and selection
all employees and operational and
Job specification Recruitment selection
managers clerical employees.
Job specification is a statement of minimum Method ofpersonal Procedures for
It is concerned with It is concerned with acceptable human qualities necessary to placement personalplacement
strategic operational issues. perform a job properly. Process of inviting Process of
objectives Job design application from elimination
It involved in It makes Job design is the process of deciding on the candidates
making ongoing operational contents of the job in terms of duties and Process searching Create contractual
strategic decisions decisions only responsibilities. prospective relationship
It participate in It is involved in Methods of job design employees and between employer
formulating overall operational Δ Job rotations:- It simply means shifting an stimulating them to and employees
strategic plan. planning employee from one job to another without any apply for the job
It has high status It has medium change in the nature of job. Purpose is tocreate Aims at elimination
and authority. status and Δ Job simplifications:- It is the process of largenumber of of unsuitable
authority removing tasks from existing roles to make them applicants candidates
It is fully integrated It is not fully more focused.
Simple process Complex process
with other integrated withother Δ Job enlargement:- It means more tasks and
PLACEMENT
organizational organizational duties are added in a job for widening the scope
Placement means posting an employee after
function functions. of the job.
selection to a particular position.
Electronic human resource management (E- Δ Job enrichment:- It is a process that is
According to Dale Yoder “placement meansThe
HRM) characterized by adding dimensions to existing
determination of the job to which an accepted
E-HRM is the integration of all human resource jobs to make them more motivating.
candidate is to be assigned to that job”
system and activities using the web based Job evaluation
INDUCTION / ORIENTATION
technologies. Job evaluation is a systematic and orderly
Induction is a process of inducing an employee
Features of E-HRM process of measuring the worth of a job in
into the social set up of his work. It is process of
• It facilitate handling of large volume of data. relation to other jobs.
an introducing an employee about the rules and
• Reporting and analyzing of data are done easily Methods of job evaluation
regulations, policies and working conditions of
and quickly • it facilitate standardization and Δ Qualitative method
the organization etc.
automation of HR process•It is a safe and secure • Ranking or job comparison method
Objectives of Induction
system of maintaining employee information. • It • Job grading method
• To familiarize the new employees with the
replaces conventional paper and file system of Δ Quantitative method
surroundings, rules and regulations of the
HRM. •It offer transparent services toemployees. • Point system • Factor comparison
organization.• To create a sense of belonging to
• It provides better working conditions. Human resource planning (HRP)
the organization among new employees.• To
Advantages of E-HRM It is a systematic planning to achieve optimum
build self confidence• To help the new comer to
• It reduce cost of administration of HR use of an organizations human resource. It is
overcome shyness and fear• To create a close
department. •It simplify the operations of HR also called manpower planning.
relationship between existing employees and
department. • It create moresatisfied employees. Need and importance of HRP
new.• To provide information about cafeteria,
• It increases corporate image. • It promotes • Expansion of plant • Retirement vacancies
toilets, rest rooms etc.
better employer-employee relationship • It offer • Reduction in labour turnover • Reduction in
Transfers
transparent services to employees. • It is less labour cost • Uninterrupted production
Transfer involves shifting an employee from one
costly and efficient •It uses uniform standardized • Introduction of fresh blood in the organisation
job to another without change in his status,
practices in HR activities. • It provides favorable • Determination of shortage or surplus of staffs
position, responsibility and compensation.
work environment in the organisation. • Effective employer-employee relationship
Transfer can be done on the basis of request
Disadvantages of E-HRM Manpower forecasting
made by the employee or it is done by the
• It require huge implantation and maintenance Estimating the future quantity and quality of the
company itself.
cost. • It is not much affordable to small people required to a specific job is called
Types of transfer
organisations. • It is difficult to get employees manpower forecasting.
• Production transfer • Replacement transfer
cooperation and support •There are more Recruitment
Shift transfer • Remedial transfer • Rotation
chances of errors and omissions •There is a It is the process of finding apt candidates and
transfer
chance of losing security and privacy informations applies for jobs in the organisation.
Promotion
• It reduces human relations in the organizations. Sources of recruitment
Promotion is the changing an employee from
Types of E-HRM Δ Internal sources
lower position to higher position. It changes the
1. Operational E-HRM •Transfer•Promotion•Demotion•Present employes
responsibility, position, remuneration, authority
It is concerned with implementation of electronic Δ External sources
etc.
human resource management in the operational • Advertisement • Employment exchange
Demotion
or administrative areas. Activities of operational • recruitment • Labour contractors
It is just of opposite of promotion. Shifting an
E-HRM •E-recruitment •E-selection •E-employee • Labour union • Gate hiring • Private agencies
employee from higher level position to lower
profile •E-training •E-performance management Merits of internal recruitment
position. It can be defined asdowngrading an
•E- compensation •E-grievance redressal • Economical • Save time • Motivates employees
employee by reducing the responsibility, salary,
2. Relational E-HRM • Self-development • Accurate source
authority and status.
It is designed to manage and sustain relationship Demerits of internal recruitment
Bench marking training
with employees by improving HR services • Limited opinions • Lack of originality • Reduces
Under bench marking measures, HR professional
differently. Objectives of relational E-HRM productivity
collect data relate with training of the
• It build better employer- employee relationship Merits of external recruitment
organization and compare it with data on training
and trust. • It enable employee empowerment • Wider options • Fresh talent • Organizational
with another organization.
and recognition.• It provides accurate and growth • Fair and impartial employees
comprehensive employee data•It faster processing Demerits of external recruitment
3.Transformational E-HRM • Expensive • Time consuming • Lack of
It is concerned with the use of information cooperation • Employee dissatisfaction
technology in areas like employee development, Modern trends and techniques in recruitment
employee motivation, knowledge management, • Knowledge based recruitment • Online
employee reorientation etc. recruitment • Outsourcing • Poaching
TRAINING
Training is the process of increasing knowledge
and skills for doing a particular job. It is a
systematic programme of the organization
which aims at increasing the aptitudes, skills and
abilities of the workers to perform specific job.
Need for training
• Newly appointed persons • Existing
experienced employees • Environmental
changesInternal mobility • Problems related with
production • Technological changes
Importance and advantages of training
• Increase in efficiency and productivity
• Elimination of wastages • Less learning cost
and period • Less supervision • Higher employee
morale • Reduction in employee grievances
• Reduction in breakdowns and accidents
• Reduction in labour turnover and absenteeism
• Personnel development • Better organization
climate
Advantages training to employees
• Enhance self confidence • Can perform the
work properly • Can handle machines safely
• Enables to adopt new assignments • Obtain
promotion quickly
Training process
• Assessment of training needs • Training
objectives • Designing training policy • Designing
training programme • Fixing the responsibility of
training • Selection of trainees • Preparation of
training •Designing the training course • Rules for
conducting training • Presentation • Examination
of the performance • Follow up
Module- IV
Performance appraisal
It is a systematic and objective evaluation of
behaviour of employees to measure the
quantitative and qualitative aspects of workdone
Need and importance of performance appraisal
• Development and training needs of employees.
• Helps to improve performance. • Helps to take
personnel decisions • Creation of competitive
spirit. • Helps to develop confidence among
employees. • Identify strength and weakness.
• Aids to personnel research. • Inspiration
•Systematic evaluation • Feedback
Objectives of performance appraisal
• To ascertain the performance of employees.
•To identify weakness of employees. • To identify
needs for training. • To collect information
related to employees. • To determine salary
increment or promotion. • To reward the
employees with better remuneration.
Performance appraisal process
• Determining objectives • Establishing
performance standard or criteria
• Communicating standards • Measuring
performance • Comparing the actual
performance with standard • Discussion
• Corrective action
Methods of performance appraisal
Δ Traditional methods
• Ranking method • Paired comparison method •
Grading method • Graphic rating scale • Check
list method • Forced distribution method
• incidental appraisal • Field review method
• Confidential report • Essay appraisal method
• Group appraisal
Δ Modern methods
• Assessment center •Behavioral anchored rating
scales (BARS) • Human resource accounting
methods • Management by objectives (MBO)
Problems/Limitations of performance appraisal
• Inconsistent ratings • Psychological barriers
• Halo effects • Horn effect
Halo effects
It is a tendency for positive impressions of a
person, company, brand or product in one area to
positively influence ones opinion or feelings in
other areas.
Career development
It is a formal, organized and planned effort by an
organization to achieve a balance between
individual career needs and organizational work
force requirements.
Advantages/ Uses of career development
• It helps the organisation in finding right talents.
•it helps the employees to make self assessment
• It achieve the personal and organizational goal.
• It make the employee more flexible to choose
different jobs. • It makes the employee more
skilled and empowered.• it ensures job security.
• It enhance quality of work life. • It ensure
maximum job satisfaction.
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MBO (Management by Objectives)
It is a managerial system that aims to improve
organizational performance by clearly defining
the objectives.
Features of MBO
• Focused on goals and achievement. • It gives
emphasis on effective performance. • Periodic
review of performance. • Universally applicable.
• It provides guidelines for appropriate systems,
procedure etc…
Benefits of MBO
• Subordinates participate and cooperate in
setting goals. • Systematic evaluation of the
performance. • It provides definite performance
standards. • Delegation of authority is done.
• It is a tool for organisation control.
• It encourages motivation. • It envisages
planning. • Periodic review of performance.
Weakness or Limitations of MBO
• It is a time-consuming process. • It is costly.
• Difficult in setting objectives. • It creates
frustration among managers. • More emphasis
on short term objectives.
Process of MBO
• Setting of objectives. • Development of action
plans. • Periodic review. • Performance appraisal.
Career planning
It means planning done by a person in terms of
making a career choice, advancing in that career
and making a shift from the present career.
Features of career planning
• It is a process of developing human resources.
• It is an important part of human resource
planning. • It is a continuous process •It integrate
and personal needs•its individual responsibility
Objectives of career planning
• To attract talented employees in the
organization. • To find out career suitable to the
person. • To choose right person in the right job.
• To increase efficiency and productity of
organisation. • To maintain a stable work force.
• To help the organization in the succession
planning. • To achieve improvement in moral and
motivation of employees.
Methods of career planning
• Discussion with experts • Career planning
materials • Performance appraisal system
• Workshops • Personal development plans
Advantages of career planning
• It enable organisation to attract better talents.
• It attain greater productivity through better
performance • It motivate employees to work
hard.• It helps the organization in succession
planning. • It reduces employees turnover.
• It helps individual growth and development.
• It improves employee morale and motivation.
• it builds employee loyalty.
Module- V&VI
TIME WAGE SYSTEM
Under this system, wages or salaries are paid
according to the time spent on the given job.
This system give more importance to quality
rather than quantity.
Merits of time wage system
• Simple to understand • Helps to maintain
quality of product • Job safety • Trade union
accept this • Protect workers from fatigue & over
work • good relation with management • Save
machines from overload • Guarantee fixedwages
Demerits
• No distinction between efficient & inefficient
workers • Continuous supervision is required
• Difficult to measure labour cost
PIECE WAGE SYSTEM
Under this method wages are paid according to
the quantity produced by the employees. so it is
productivity based.
Merits of piece wage system
• Simple to understand • More quantity
• Strict supervision is not required • Cost per unit
can easily be calculated • Reduce cost of
production • Management can distinguish
between efficient & inefficient workers
Demerits
• Reduce quality • Minimum wage are not
guaranteed • Chance for machine breakdown
• Promotes jealousy or suspicion
Total quality management (TQM)
TQM is an approach that seeks to improve
quality and performance which will meet
customer expectations. It is called participative
because it is a formal programme involving every
employee in the organization.
LABOUR PARTICIPATION IN MANAGEMENT
Workers’ participation in management implies
mental and emotional involvement of workers in
the management of an Organization. It is
considered as a mechanism where workers have
a chance in the decision making.
Importance of workers participation in mgt
•Reduction in industrial unrest • Mutual
understanding • Higher productivity • Integration
between workers and management • Overall
growth • Enhance the responsibility • Enhance
initiation • Industrial democracy • resistance to
change
PUNISHMENT
The act of discipline attract various
punishments. Punishment should be given
according to the nature of offence. If offence is
minor, minor punishment is given. If offence is
serious one, the employees are punished with
demotion, dismissal etc.
Minor punishment
• Oral warning • written warning • loss of
privileges – stops certain privileges enjoyed by
him in the organization • fines
Major Punishments
• withholding increment • suspension • demotion
• discharge of duties• dismissal
DISCIPLINE
Problems with employees may arise from time
to time even in best managed organizations.
Occasionally management may force to take
disciplinary action against employees or deal
with their grievances once the ways of
preventing problems is exhausted.
Approaches to discipline
• Traditional approach • approach • Judicial
approach • Human relation approach • Human
resource approach • Leadership approach
• discipline approach
Essentials of a good disciplinary system
• Proper knowledge of rules • Quick action
• Fair action • Well defined procedure
• Constructive approach- action should be taken
tactfully • Review- follow up
FRINGE BENEFITS
Benefits given to employees in addition to
their normal wages and allowances are called
fringe benefits. It may be in the forms of holiday
with pay, low cost meals, low rent house etc.
Features of fringe benefits
• Additional wages to regular wages • Motivate
employees • Monetary value can be ascertained
• Increase standard of living of people • Generally
not pre-determined.
HOT STOVE RULE
This rule is actually based on a person touching
a hot stove. This rule provides four discipline
basics. Think about deciding to touch or not to
touch a hot stove.
• The stove provides a warning
• The stove is consistent
• The stove burns immediately
• The stove is impersonal
The importance of hot stove rule is that there is
immediate action taken for a negative or wring
decision made by the employee. In order to be
productive, management must take immediate
disciplinary action.