Managing people

Introduction to HRM
HRM is a managerial utilization of the efforts, knowledge, capabilities and committed
behaviors of people.HRM is a process of acquiring, retaining and terminating of employees
to achieve its goals
HRM is the efficient and effective utilization of human resources to achieve goals of an
organization.
HRM is a function performed in organization that facilitate the most effective use of people
to achieve organizational and individual goals
Human Resource Management is an integrated approach to the employment,
development and well-being of the people working in organization. (Michael Armstrong,
2009)
Human Resource Management is concerned with all aspects of how people are employed
and managed in organization
Synonyms for HRM-

 Employment Management
 Personnel Management
 People Management
 Human Capital Management
 Strategic Human Resources Management
 Talent Management
Special characteristics of HR
• It is active and living
• It has ability to think, feel and react
• It can influence on determining its pay
• It can organize
• Its behavior is complex and may be unpredictable
• It has creativity and innovation, which cannot be found in other resources.
• It makes decisions in respect of all other resources

The purpose of HRM

To generate and retain an appropriate and contended workforce that give the maximum
individual contribution to organizational success

Goals and objectives of HRM

• Support the organization in achieving its objectives by developing and implementing
HR strategies that are integrated with the business strategy.
• Contribute to the development of a high-performance culture
• Ensure that the organization has the talented, skilled and engaged people it needs

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 • Create a positive employment relationship between management and employees
and a climate of mutual trust
• To ensure the legal compliance

Hard HRM and soft HRM

• Hard HRM- The hard one emphasize the quantitative. Calculative and business
strategic aspects of managing HR in as rational a way as for any other economic
factor.
• Soft HRM- There should be a clear integration between corporate goals and
employee values, belief and behaviors.

Functions of HRM
There is a series of functions to be followed in order to accomplish the goals and the
objectives of HRM. This series of functions includes:
1. Job Design
2. Job Analysis
3. HR Planning
4. Recruitment
5. Selection
6. Hiring
7. Induction
8. Job Evaluation
9. Salary Administration
10. Incentive & Welfare
11. Training &Development
12. Performance Management
13. Administration of Grievances
14. Disciplinary procedure
15. Industrial Relations
16. Industrial Law

Job Design
The function of arranging tasks, duties and responsibilities into an organizational unit of
work.
Job Analysis
The function of investigating systematically jobs and job holder characteristics in order
to create a collection of job information.
Human Power Planning
The process of determining future employee needs and deciding steps or strategies to
achieve those needs.

Recruitment
The process of finding and attracting qualified people to apply for employment.
Selection

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 The process of making the choice of the most appropriate persons from the pool of
applicants recruited to fill the relevant job vacancies.
Hiring
The process of appointing the persons selected to the posts/ jobs which are vacant.
Induction
The function that systematically and formerly introduces the new employees to the
organization.
Performance Evaluation
The function that measures degree of effectiveness and efficiency of employees in
performing their jobs.

Training and Development

The process of improving current and future employee performance by increasing
employees’ competencies through acquisition of knowledge, skills and attitudes.

Pay Management
The process of development, implementation and maintenance of a base pay system
which adheres to external equity, internal equity and absolute equity.
Welfare Management
The group of activities involved in the development, implementation and on-going
maintenance of a fair and effective system of facilities and comforts to enhance
standard of living of employees.
Management of Incentives
The process of development, implementation and maintenance of a fair and adequate
system of incentives.
Employee Movements
The function that deals with promotions, transfers, layoffs etc in the right ways at the
right times.
Health and Safety Management
The group of activities involved in creating, improving and maintaining total health and
safety of employees.
Discipline Management
The group of activities involved in planning and
controlling behaviour of employees in compliance with established rules and regulations.

Grievance Handling
The function that identifies and solves discontents arising from feelings of injustice felt by
employees in connection with work environments.
Labour Relations
Management of all interactions which occur between management and trade unions.

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Importance of HRM
The above discussion indicates five reasons of why HRM is of very importance for an
organization.
• Human resources are the most important resource that managers utilize to achieve
goals of an organization.
• Quality of other functional fields of management heavily depends on quality of HRM
in an organization
• HRM is a vital responsibility of every manager in an organization.
• HRM contributes to organizational success and then societal (Public) success.
• Management of employees is more difficult than managing other resources.

Line managers HRM responsibilities

• Placing the right person on the right job
• Starting new employees in the organization (orientation)
• Training employees for jobs new to them
• Improving the job performance of each person
• Gaining creative cooperation and developing smooth working relationships
• Interpreting the firm’s policies and procedures
• Controlling labor costs
• Developing the abilities of each person
• Creating and maintaining department morale
• Protecting employees’ health and physical condition

Signs of bad HRM

• Hire the wrong person for the job
• Experience high turnover
• Have your people not doing their best
• Waste time with useless interviews
• Have your company in court because of discriminatory actions
• Have your company receive penalties for unsafe practices?
• Have some employees think their salaries are unfair and inequitable relative to
others in the organization
• Allow a lack of training to undermine your department’s effectiveness
• Commit any unfair labor practices

Functions of HRM
• A line function
The HR manager directs the activities of the people in his or her own department and in
related service areas (like the plant cafeteria). Line managers act as the liaison between the
company and the employee. They are often used to relay information – good or bad – to
their teams. If the information is HRM related, line managers will work with HRM to ensure
that announcements are handled appropriately and carried out at the right time.
• A coordinative function
HR managers also coordinate personnel activities, a duty often referred to as functional
control. The human resource manager also coordinates personnel activities, a duty often

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referred to as functional authority. Here he or she ensures that line managers are
implementing the firm's human resource policies and practices.
• Staff (assist and advise) functions
Assisting and advising line managers is the heart of the HR manager’s job. staffing, is the
management function devoted to acquiring, training, appraising, and compensating
employees.

Job designing
What is a job
• The result of breaking the primary organizational work into individual assignment.
• Jobs are basic building blocks of the organization.
• An organizational unit of work is a job that is composed of three main components
task, duties and responsibilities.
• Task is a series of motion and is a distinct identifiable small activity
• Duty is a series of tasks and is a large work segment.
• Responsibility is the obligation of performing the entrusted tasks and duties
successfully

Job design
Job design can be defined as the function of arranging tasks, duties and responsibilities into
an organizational unit of work for the purpose of accomplishing a certain objective.
Job design is a creation of jobs which individuals in the organization have to perform.
Elements of job design
• Efficiency elements
• Behavioral elements
• Elements which lead to minimize time, effort, and cost which are needed to perform
a particular job
• Elements which lead employee satisfaction. Specifically focus on motivation &
development

Efficiency elements
Division of labour- Breaking jobs into their smallest component parts and employing
separate/different persons to do each part separately
Standardisation-The “one best way to” do a certain job/task/duty with a more simplicity
and at a lower cost is discovered through work study and then, having accepted it every
person follows
Specialization- An employee’s concentration on one particular type of work so that the
employee acquires an expertise in that type of work

Behavioral elements (job characteristic model)

Skill Variety - The extent to which the job requires use of different skills.

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Task Identity - The extent to which the job involves doing some complete piece of work

Task Significance- The extent to which the job has an impact on other people’s work

Autonomy- The degree of independence and freedom the job holder has

Feedback – The extent to which clear information of results in respect of individual

efficiency and effectiveness is provided

Difference between efficiency elements and behavioral elements

Efficiency elements
Greater Specialization
Less Variety
Less Task Identity
Low Task Significance
Minimum Autonomy

Behavioral elements
More Variety
More task identity
High task significance
More autonomy
More feedback

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 Techniques of job designing

• Scientific Technique

Basic objective of this technique is to maximize the organizational productivity by

maximizing employee efficiency. This results in a more specialized job that has a shorter job
cycle, which is the required time to complete every duty in the job for once.

This is a technique derived from the scientific management school of thought, focusing on
maximizing organizational productivity through employee efficiency. Under this technique, a
job is comprised of a limited number of distinct duties, creating a more specialized job.

• Job Enlargement

Increasing the scope of a job by including a new related duty/duties in addition to the
current duties involved is job enlargement. The definition of job enlargement is adding
additional activities within the same level to an existing role. This means that a person will
do more, different activities in their current job. For example, an employee who will now
also manage her own planning where this was formerly done by her manager. The main
objective of job enlargement is to increase the working employees' flexibility, thus
providing them greater exposure to a variety of new activities.
 Ex; Example of adding smaller tasks to help a team member improve their skills. ...
 Example of using horizontal job enlargement. ...
 Example of using training. ...
 Increased team member engagement. ...
 Work flexibility. ...
 Positive challenges. ...
 Training opportunities. ...
 Development of soft skills.

• Job Enrichment

Increasing the depth of a job by expanding authority and responsibility for planning, doing
and controlling the job is job enrichment. Job enrichment is a process that is characterized
by adding dimensions to existing jobs to make them more motivating. Examples of job
enrichment include adding extra tasks (also called job enlargement), increasing skill variety,
adding meaning to jobs, creating autonomy, and giving feedback. Job enrichment is a
strategy used to motivate employees by giving them increased responsibility and variety in
their jobs.
Some examples of job enrichment include:
 Giving more autonomy.
 Trying out new ways to do the same tasks.
 Trying out completely new tasks (sometimes also called job enlargement)
 Adding more variety to everyday tasks.

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 • Job Rotation

Job rotation is shifting an employee from one particular job to another without limiting the
employee to do a particular job only. Job rotation is the systematic movement of employees
from one job to another within the organization to achieve various human resources
objectives such as orienting new employees, training employees, enhancing career
development, and preventing job boredom or burnout. When an employee works across
different departments or job profiles after a specific time interval, it qualifies as job
rotation

• Professional Techniques

Designing job according to a certain accepted profession is professional technique.

Professional strategies are techniques for achieving individual performance and career
goals. These include areas such as leadership, decision making, problem solving, influencing,
motivation and navigating office politics that are often a strategic challenge for a career.

• Group Techniques

Job is designed so that a group of individuals can perform it. Result is a collective job rather
than an individual job

What is job analysis?

• Collection of data concerning a job
• Systematic analysis
• Identifies characteristics of the job and behaviors
• Ascertains characteristics of the job holder such as qualities and qualifications
required to carryout the job
Job analysis is an analytical exercise which provides the information needed by the
organization for them to develop Job Description and Job Specification
Nature of job analysis
• Provides a lot of information to management and organizational tasks
• Obtains the service of a job analyst
• HR managers play a key role in job analysis
The uses of jo analysis
Human Resource Planning
• Identify skills required for jobs
• Compare current skills with future needs
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Recruitment
• To determine employee specification
• To determine employee salaries
• To prepare advertisements
Selection
• Applicant’s qualifications for selection
Induction
• To inform employee job responsibilities
Training and development
To determine training objectives and training content

Performance evaluation
• To set performance goals
Wage and salary administration
• To evaluate jobs in order to determine salaries
Health and safety
• To identify hazards
• To take preventive actions
Process of job analysis
• Acquire a general familiarity with the organization
• Identify and select job/s to be Analyzed
• Develop Check List
• Collect Data
• Apply JA Data
• Evaluate JA Effort
Acquire a general familiarity with the organization
Vision/Mission/Objectives Strategies/Structure/Resources/Good & Services } Strategic
plans/Annual reports/Organizational Charts/Process Charts
Identify and select job/s to be Analyzed
 Payroll records
 Organization Charts
 Previous Job Analysis records

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  Telephone Directories
 Discussion
Develop check list
 Identification data
 Duties & responsibilities
 Human Characteristics
 Working conditions
 Health & safety Condition
 Performance standards
 Other job related Features

Job analysis check list

(1) Job identification

a. What is the job title? Are there any other titles?
b. Where is the location of the job? (department, section, unit)
c. What superior do you report?
d. Who report to you? what are the nature of their jobs and job objectives?
e. What is the next higher job by rank?
f. What is the next immediate lower job by rank?
(2) Job summary
a. What is the general purpose of the job?
b. What is done and how it’s done?
(3) Duties
a. What are the primary duties of the job? What is the proportion of each primary duty
involves?
b. What are the duties and the portions of time each involves?
c. How can duties be classified as daily, weekly, periodic or irregular, etc.?
(4) Responsibilities
Does the job involve responsibility for the following and to what extent (very, high,
high, moderate, low, or very low)?
a. Work of others
b. Health and safety of others
c. Material usage
d. Use of equipment and tools
e. Protection of equipment
f. Protection of material
g. Assisting trainees
h. Financial resources

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i. Others (to be specified)
j. Others (to be specified)
(5) Supervision
a. Does the job need any supervision?
b. What is the extend of the supervision needed (very high, high, moderate, low or very
low)
c. Who gives the supervision?
(6) Interrelationship
a. In order to perform the duties of the job, does it require maintaining
interrelationships with other departments, sections, units or people?
b. What are they? To what extent ( very high, high, moderate, low or very low)

(7) Education
a. What is the education that is essential to perform the duties and responsibilities?
b. What is the desired education?
(8) Experience
a. Is experience needed or not? Why?
b. What are the capacity/nature and amount of experience (years) essentially needed?
c. What are the desired capacity / nature and amount of experience?
(9) Training
a. Can training be substituted for experience? Why? If yes, how?
b. What are the nature and duration of training needed?
(10) Special skills (mental and physical)
a. Of the following, which ones are needed and how important (very important,
important, or unimportant) are they?
 Visioning - hearing
 Predicting – lifting
 Analyzing - smelling
 Synthesizing- touching
 Conceptualizing – tasting
 Operationalizing - talking
(11) Working conditions
a. What are the working hours?
b. What are the physical conditions? (dust, humidity, etc.) under which the duties of
the job performed?
c. Are there unusual conditions/ psychological demands connected with the job?
d. Is any travelling involved? What is it?
e. Are there shifts of working? What are they?
(12) health and safety hazards
a. what are the health and safety hazards (accidents, deceases, stress, low quality of
work life etc., possible causes)? Associated with this job?
b. Is any health and safety training?
c. Are special safety equipment and tools requirement?
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 (13) Performance standards
a. How is the performance of the job measured?
b. What are the criteria that can be used to evaluate performance of the job?
c. Are there objective criteria and subjective criteria?
d. How cab data be collected regarding criteria?
(14) others
what are the other characteristics to be mentioned especially relevant to the job?

Date collections methods

 Questionnaires
 Interviews
 Participation
 Observation
 Past JA reports
 Research documents
Observation
A job analyst observes an employee and records all his performed and non-performed task,
fulfilled and un-fulfilled responsibilities and duties, methods, ways and skills used by him or
her to perform various duties and his or her mental or emotional ability to handle
challenges and risks.
Interview
In this method, an employee is interviewed so that he or she comes up with their own
working styles, problems faced by them, use of particular skills and techniques while
performing their job and insecurities and fears about their careers
Questionnaire
Another commonly used job analysis method is getting the questionnaires filled from
employees, their superiors and managers. However, this method also suffers from personal
biasness. A great care should be takes while framing questions for different grades of
employees.
Job Description
Written statement of what the worker does, how he or she does it, and what the job’s
working conditions are.
Job identification, Job summary, Responsibilities and duties, Working conditions, job
specification
Job Specification
It shows what kind of person to recruit and for what qualities that person should be tested

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It may be a section of the job description or a separate document entirely.
It consists of education, experience, training, Physical skills, Communication skills

HR planning and recruitment

Human resource planning?
Human Resource planning may be defined as an attempt to forecast how many and what
kind of employees will be required in the future.
Human resource planning is a technique company uses to balance its flow of employees
and prevent situations such as team member shortages or surpluses. This also ensures that
the business has the right people with the appropriate skills and ability to build a strong
workforce.
Process of HR planning.
01. Forecast future demand for HR
02. Estimate HR supply
03. Compare forecast demands with estimated supply
04. Decide strategies to be taken
05. Feedback
Forecast future demand for HR
• Determine how many and what type of people are needed.
• When forecasting future demand for human resources, consideration of factors
affecting demand of human resources needs to be done.
HR demanding factors
• Demand for the product and services
• Expansion
• Diversification
• Growth
• Retirements
• Resignations
• Terminations
• Death
Forecast future demand for HR
Forecasting Techniques
Informal Forecast
This is the easiest way of forecasting future demand for human resources. Under this
technique, future demand for human resources is determined without a systematic base
and it is done quickly and randomly.

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 • Future demand for human resources is determined without a systematic base and it
is done quickly and randomly.
• Accuracy is low/Good only for small organizations
Formal Expert Survey
• Systematically future demand for human resource is estimated by conducting a
survey among experts.
• Accurate level is high

A set of questions for an expert survey

1. Is there a significant increase for the goods or services being produced by your
department? If so, do you need to increase employees? What types of employees?
How many?
2. Do you have new plans to expand or close or reduce your business? As a result what
type of employees do you need to increase of reduce? How many?
3. Do you have plan to introduce new technologies to do your business?
4. Are there employees who are supposed to retire within the next year or coming two
years?
5. Are there employees who expect to resign?

Supply forecasting survey

Supply forecasting means to make an estimation of supply of human resources taking into
consideration the analysis of current human resources inventory and future availability.
For forecasting supply of human resource, we need to consider internal and external supply.
Analysis of HR supply and demand
Decide strategies
IF Labor shortage,
• Provide over time
• Promote current employees
• to new positions
• Provide training and development
• Capital Substitution
• Hire casual/ part time / contract basis employees
• Hire new permanent employees
IF Labor surplus
• Restricted hiring
• Transfer them to other areas
• Provide VRS (voluntary retirement scheme)
• Reduced hours
• Early retirement
• Layoffs
• Company expansion

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Partial replacement chart
Replacement charts are a forecasting technique used in succession planning to help
companies visualize key job roles, current employees and existing and future
vacancies. Positions are mapped alongside information such as potential replacements,
gender and promotion potential.
A tool used in leadership succession planning, which shows current and potential
future vacancies in particular roles. This helps the business visually identify gaps or
future gaps in the workforce.

Replacement summary
Replacement charts are a forecasting technique used in succession planning to help
companies visualize key job roles, current employees and existing and future vacancies.
Positions are mapped alongside information such as potential replacements, gender and
promotion potential.
Staffing table
Staffing tables are graphic representations of all organizational jobs, along with the
numbers of employees currently occupying those jobs and future (monthly or yearly)
employment requirements, which can be derived from demand forecasts.
SUMMARY IN HR
• Since it is important to have the right people in the right jobs at the right time,
human resource planning is the process to achieve that.
• What the organization will do is assess the current capabilities of its employees,
determine what it will need in the future, and design a program to meet those
needs.
• Depending on the organization’s objectives and strategies, demand for human
resources is contingent upon demand for the organization’s products or services and
on the levels of productivity.
• After estimating total revenue, management can estimate the number and kinds of
human resources needed to obtain those revenues.
• After it has assessed current capabilities and future needs, management can
estimate future human resources shortages and over-staffing.
• Then, it can develop a program to match these estimates with forecasts of future
labour supply.

Recruitment

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Recruitment is the process of actively seeking out, finding and hiring candidates for a
specific position or job. The recruitment definition includes the entire hiring process, from
inception to the individual recruit's integration into the company.
What is called recruitment process?
1. Identifying jib vacancies
2. Ascertains job requirements
3. Consider factors affecting recruitment
4. Prepare job applications
5. Select the method of recruitment
6. Implementation
7. Evaluation of recruitment effort
Job vacancies
job vacancy means a workplace (position) for filling of which (for occupying the position)
an employer is looking for a suitable employee.
Ascertains job requirements
From job analysis information
• Job Specification
It shows what kind of person to recruit and for what qualities that person should be tested.
A job specification is an official document which describes the duties, required knowledge,
skills and abilities, and minimum qualifications of State jobs.
The benefits of a job specification include: Clearly state essential skills – A job description
tells candidates the purpose of job duties, and a job specification tells candidates the
specific skills, relevant experience, and specific qualifications required to perform the job
and meet business requirements.
• Job Description
Written statement of what the worker actually does, how he or she does it, and what the
job’s working conditions are.

Consider factors affecting recruitment

• Goals and Strategies
• Organization Policies and Practices
• Organizational Image

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 • Unions/ Employees
• Nature of the Task
• Government requirements and regulation
• Location of the Organization
• Composition of the labor force
• Cost
Prepare job applications form
• This step may not be applicable to all the jobs.
• It can be standard one or self-prepared
Sources of Recruitment /Organizational Policy /Select the method of recruitment
Internal Policy
• Simple word of mouth
• Job Posting & Bidding (Notice Board, Newsletters or Organizational Magazine)
• Skill Inventories & management Inventories
• Intranet
• Promotion
• Transfers
• Memo
What are the advantages and disadvantages of Internal Policy?
External Sources
• Pre applications (Walks- ins and Write- ins)
• Past employees
• Job Agencies
• Advertisement (open or blind Advertisement)
• Recommendations of Friends
• College and University Recruiting
• Gazette
• Internet
• Executive and Professional search firms (head hunters)
• Career fairs

What are the advantages and disadvantages of External Policy?

Implementation
Implementation of the Recruitment Plan
Publish the advertisement and acquire the Applications

What is Evaluation of recruitment effort?

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 A comprehensive evaluation of recruitment strategy allows organizations to identify internal
capability and gaps, employee commitment levels and the corresponding cost effectiveness
of that strategy. It provides a basis for improving the recruitment process for future use.

The uses of job analysis

Human Resource Planning
• Identify skills required for jobs
• Compare current skills with future needs
Recruitment
• To determine employee specification
• To determine employee salaries
• To prepare advertisements

Selection
Process by which an organization chooses from a list of screened applicants, the person or
persons who best meet the selection criteria for the position available
Selection is part of the recruitment process concerned with deciding which applicants or
candidates should be appointed to jobs.

What are the 7 steps in the selection process?

What is the selection process?
 Application.
 Screening & pre-selection.
 Interview.
 Assessment.
 References and background check.
 Decision.
 Job offer & contract.
What are the 5 stages of the selection process?
The selection process consists of five distinct aspects:
 Criteria development. ...
 Application and résumé review. ...
 Interviewing. ...
 Test administration. ...
 Making the offer.

Processing applications

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When the vacancy or vacancies have been advertised and a fair number of replies received,
the typical sequence of steps required to process applications is as follows
• List the applications (reject, hold, interview).
• Send a standard acknowledgement letter to each applicant unless an instant decision
can be made to interview or reject
• Compare the applications with the key criteria in the person specification
• Scrutinize the possible again to draw up a short-list.
Selection methods
• Interview
• Employment Test
• Background investigation
• Medical examination
• Practical exam/ test
• Assessment center
01. Interviews
Interview is the oldest and most widely used method
The style of the interview will be direct, based on a question-and-answer session
Aims at obtaining information from a person through oral responses to oral inquiries
Individual interviews can be divided into two.
i. Number of participants in the interview
- Individual INTERVIEW
An individual interview is an interview which consists of one interviewer and one
interviewee.
- Panel interview
An individual interview is an interview which consists of one interviewer and one
interviewee.
ii. Nature of the questions asked at the interview
- Structured interview
A structured interview is an interview that includes a predetermined set of questions that is
address to each applicant.
• Easily compare multiple job candidates
• Prepare and avoid missed opportunities
• Reduce biased opinions of potential candidates
• Conduct faster job interviews

- Unstructured interview
An unstructured interview is an interview that does not have a predetermined set of that is
address to each applicant. Different questions are asked from applicants depending on their
background and responses
• Dive into deeper discussions
• Adapt to changing topics
• Improvise relevant interview questions
- Mixed interview

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A mixed interview is a blend of structured and unstructured questions. This type of
interview can be applied for recruitment.
- Problem solving interview
A problem-solving interview contains a set of problems that the applicant will have to face
actually or may have to face on the job if he or she selected to that job.

- Stress interview
A stress interview is an interviewing style that companies use to gauge a candidate's
response to stress. The idea is that it'll give the hiring team an idea of how you'll respond
when juggling various high-priority tasks, dealing with challenging clients, or facing a difficult
co-worker or manager.

Employment test
An employment test is an examination specially held to assess the degree of the suitability
of the job applicant for the job vacancy.
Eg: Intelligent test
Aptitude test

Background investigation
Background investigation is a special investigation to reveal real background of the job
applicant. The main purpose is to know what type of the person, the applicant was.

Medical examination
• Medical examination is a special test focusing on the physical fitness of the job
applicant.
• It examines job applicant’s health and physical abilities.
• It tries to determine whether the job applicant is in a sound healthy state in order to
perform successfully task, duties and responsibilities of the relevant job.
• This examination should be done by a recognized medical doctor

Assessment center
An assessment center is a relatively new method of selection and it is used to mainly for
managerial selection.

Hiring

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Hiring process

Preparation of appointment letter

• The HRM department should prepare a letter of appointment that contains terms
and conditions of employment and give it to every job candidate who has been
selected for a certain post.
• It is important to have separate appointment letter format for permanent,
temporary and casual employees as terms and conditions differ from the status of
the employment.
• Letter of appointment, according to the
• SHOP AND OFFICE ACT- Act No. 19 of 1954
• Appointment letter must be Issued at the recruitment
• Second copy kept at office after signed by the employee

Content of an appointment letter

• Name of the employee
• Designation and the nature of the appointment
• Date on which the appointment take effect
• Basic remuneration & Other payment
• Probation Period
• Normal working hours
• Leave entitlement
• Overtime rate payable
• Provisions of medical or insurance by the employer
Notification of appointee
• Decision of selection and appointment is to be notified to the successful applicants
by the relevant authorized manager on behalf of the organization.
• Generally, at this level relevant letter of appointment is issued.

Follow-up

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 • Follow-up means an attempt to ensure whether the appointees accept the job offers
or reject.
• All the appointees might not be able to accept the job offers.

Entering to the contract of Employment

After the appointee has entered into the contract of employment, he/she becomes really a
new employee to the organization.
Probationary period
Probationary period is a certain period of time during which a new employee, who was
hired for a permanent post, works for an organization.
Introduction
A procedure for providing new employees with basic background information about the
firm.
Induction is the function of HRM that systematically and formally introduces new employees
to the organization, the jobs, the work groups to which they will belong and the work
environment where they will work.
Information for induction
• A Brief introduction of the Company
• Basic condition of employment
• Financial Benefits
• Leave
• Company rules
• Disciplinary procedure
• Grievance's procedures
• Promotion Procedures
• Health & Safety
Stages of induction
• General orientation/ induction
• Departmental orientation/induction
• Specific job orientation / induction
Benefits of employee orientation
• Help to get familiarized of the organization and to develop positive attitudes
• Reduce employee turnover
• Help employees to perform
• Support employee to be a part of the team
• Build up confidence
• Increase recognition.

Training and development

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  Measurable changes in knowledge, skills and the attitude of employees for doing a
particular job.
 T & D is a formal process of changing employee behaviour and motivation in a way
that will enhance employee job performance.
 It is HRM function that formally and systematically provides new learning to increase
employees’ capabilities so as to increase their current job performance and future
job performance as well.
Relationship between T&D and organizational performance

Importance of T&D
 Increase knowledge, skills attitudes of employees
 Increased quality and quantity of work performance
 Decrease accidents
 Decrease costs
 Decrease absenteeism and turnover rates
 Increase job satisfaction
 Reduced wastage
 Increase production level of the company

Model of Training

Phase 01 – needs assessment

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  A need assessment is a systematic attempt to determine actual needs which require
training and development intervention by the organization.
 A gap between knowledge, skills, and attitudes required in a job, and the knowledge,
skills, and attitudes of the person carrying out the job”

Sources of training needs

 New Recruitment
 Promotions
 Transfers
 Performance Appraisal
 Grievances
 New Positions
 Special assignments/ New Services/Projects
 Job Rotation Programs
 New Facilities
 Restructuring
Need assessment for training

Need assessment for training

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Organizational Analysis
 the appropriateness of training, given the business strategy
 resources available for training
 support by managers and peers for training
Task Analysis
 identifying the important tasks and knowledge, skill, and behaviors that need to be
emphasized in training for employees to complete their tasks
Person Analysis
Determining whether performance deficiencies result from a lack of knowledge, skill, or
ability (a training issue) or from a motivational or work design problem
• Identifying who needs training
• Determining employees’ readiness for training

Phase 2 – design the training

 Training Manager can design the training program after analyzing of training needs
Important facts
 What are we trying to achieve in this program?
 What content is required to achieve these aims?
 What learning methods should we employ?
 Who are the target groups?
 Who should conduct the training?
 Where and when should the training take place?
 How should we evaluate the success of the program?

Phase 3 – implementation
Decide on Training Methods and Techniques
 Method is a strategy or technique that is employed to deliver a particular topic or
module
 Variety in methods and techniques increases the interest and effectiveness
 Encourage active participation

Decide on training methods and techniques

01. On the Job Training
Employees are given hands-on experience with instructions from their supervisor
• Experience
• Job instructions
• Counseling
• Delegation
• Job Rotation
02. Off the Job Training
• Employees are provided training, which is away from their usual workplace

03. Lectures

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• Lectures usually take place in a classroom format.
• It seems the only advantage to a lecture is the ability to get a huge amount of
information to a lot of people in a short amount of time.
• It has been said to be the least effective of all training methods.
04. Group Discussions
• These most likely take place in a classroom where a group of people discusses issues.
• For example, if an unfamiliar program is to be implemented, a group discussion on
the new program would allow employees to ask questions and provide ideas on how
the program would work best.
• A better form of training than lectures, it allows all trainees to discuss issues
concerning the new program. It also enables every attendee to voice different ideas
and bounce them off one another.
05. Role-Playing
• Role-playing allows employees to act out issues that could occur in the workplace.
• Key skills often touched upon are negotiating and teamwork.
• A role play could take place between two people simulating an issue that could arise
in the workplace.
• This could occur with a group of people split into pairs, or whereby two people role-
play in front of the classroom.
• Role-playing can be effective in connecting theory and practice but may not be
popular with people who don't feel comfortable performing in front of a group of
people.
06. Management Games
• Management games simulate real-life issues faced in the workplace.
• They attract all types of trainees including active, practical and reflective employees.
Some examples of management games could include:
• Computer simulations of business situations that managers 'play'.
• Board games that simulate a business situation.
• Games surrounding thought and creativity - to help managers find creative ways to
solve problems in the workplace, or to implement innovative ideas.

07. Films & Videos

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 • Films and videos can be used on their own or in conjunction with other training
methods.
• To be truly effective, training films and videos should be geared towards a specific
objective.
• Only if they are produced effectively, will they keep the trainees’ attention. They are
also effective in stimulating discussion on specific issues after the film or video is
finished.
• Films and videos are good training tools but have some of the same disadvantages as
a lecture - i.e., no interaction from the trainees.
08. Case Studies
• Case studies provide trainees with a chance to analyze and discuss real workplace
issues.
• They develop analytical and problem-solving skills, and provide practical illustrations
of principle or theory.
• They can also build a strong sense of teamwork as teams struggle together to make
sense of a case.
09. Vestibule training
• Training takes place in the simulated environment
10. Induction training
11. Projects/ Assignments
12. self-Study
13. E-Learning
14. Outward Bound Training

Phase 04 – evaluating training programs

Evaluation means “to assess the value or worth of something”
Training-Level Criteria
Reactions Criteria:
how much did the trainee like the program?
how much do they think they learned?
Learning Criteria: what did the person learn? Exams
Performance Level Criteria
Behavior Criteria
concern the trainee’s behaviors on the job that might have been due to training. Do they do
what they were taught?
Results Criteria
Did the training increase efficiency?

Rewards management

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What are the rewards
• Pay
• Well-being
• Incentives
Pay management
What is pay management?
HRM function that deals with development, implementation and maintenance of a base pay
system that is fair.
Base pay refers to the basic wage or salary paid to the employees and does not include
allowances and other payments.
Objective of pay management
• To attract suitably qualified persons to the organization
• To retain the most appropriate or more appropriate employees within the
organization
• To motivate employees
• To comply with legal requirements
Equity issue in pay management
• Primary Equity
Degree to which pay is capable of meeting the primary needs of employees
(Food/water/Clothes/Shelter)
• Internal Equity
Degree to which the pay is related to the relative worth of jobs. Similar pay for similar jobs
• External Equity
Degree to which pay received by an employee in an organization is related to pays received
by similar employees in other organizations
• Input Equity
Degree to which the pay is received by the particular employee is related to his/her inputs
used to perform the job duties

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Dealing with equity issues
• Salary surveys
• To monitor and maintain external equity.
• Job analysis and job evaluation
• To maintain internal equity,
• Performance appraisal and incentive pay
• To maintain individual equity.
• Communications, grievance mechanisms, and employees’ participation
• To help ensure that employees view the pay process as transparent and fair.

Factors affecting pay

• Government Legal Requirements
• Trade Unions
• Cost of Living
• Demand and Supply
• Productivity
• Financial Ability
• Competitive Pays
Employee well-being
What is well –being management?
Providing facilities and comforts to employees of an organization so that they will be able to
lead a better level of living

Types of well-being services

• Medical services
• Food services
• Housing services
• Transport facilities
• Recreational and social services
• Advances and loan services.

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Types of welfare services
• Funeral services
• Thrift and saving services
• Educational services
• Time off services
Incentive management
• An incentive is a special reward that drives an employee to perform beyond the
normal level of performance.
• Management of Incentives can be defined as the process of development,
implementation and maintenance of a fair and adequate system of incentives.
Importance of incentive management
• Incentives focus on employee efforts on specific performance targets. They provide
real motivation that produces important employee and organizational gains.
• Incentive payouts are variable costs linked to the achievement of results. Base
salaries are fixed costs largely unrelated to output.
• Incentives foster teamwork and unit cohesiveness when payments to individuals are
based on team results.
• Incentives are a way to distribute success among those responsible for producing
that success.
• Incentives are means to reward or attract top performers when salary budgets are
low.
Types of incentive management
Individual
• Piece work
• Standard hour plan
• Bonuses
• Merit pay
• Lump-sum merit pay
• Nonmonetary incentives
• Sales incentives
Team
• Team incentive plan
• Gain sharing Incentive plans
Organizational

• Profit sharing
• Stock options
• Employee stock ownership plan

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Grievances handling
Grievance handling is an important component of Human Resource Management.
Problems are often aggravated in most organizations as a result of ineffective grievance
handling.

• The Managers from the supervisory level to the senior management level should
have sound knowledge of grievance handling
• And other related areas such as counselling, interpersonal relations, negotiating
skills, and effective communication skills if they are to become effective managers,
who keep looking at achieving organizational objectives.
Importance of grievance handling

Grievance of one employee

Grievance of Group of employees

Negative attitude towards management

Industrial Dispute

Impairment of organizational success and progress of success

What is grievance?
1. Any real or imagined feeling of personal injustice that an employee has concerning
his/her employment relationship.
2. Grievance is a complaint of one or more workers in respect of wages, allowances,
condition of works, leave, transfer, promotion, seniority, job assignment and termination of
services.
3. A discontent of a person arising out of feeling dissatisfaction, disappointment, or distress.
4. “An employee’s dissatisfaction or feeling of personal injustice in relation to his or her
employment”
- Mondy and Noe, 2005
5. “Complaint made by an employee about wages, conditions of employment or actions of
management”
- Cole,1997

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Expressed or not expressed grievances
A grievance could either be expressed or not expressed.
1) An expressed grievance
Is made out of a feeling, idea, or thought that there is an injustice, ill-treatment, or
harassment to him or to her within the scope of employment.
2) A non- expressed grievance
Grievances that are not properly communicated to the management fall into the category
of not expressed grievance.
Features of Not Expressed Grievances
• Negative attitudes
• Irresponsibility
• Late arrival to work
• Absenteeism
• Early departure from work
• Negligence
• Lack of cooperation
• Insubordination
• Anger/disputes
Reasons for grievances
• Not having proper HR
• Causes relating to job
• Lack of communication
• Personal problem
• Lack of right knowledge, skills and attitudes of immediate supervisor
01. Causes relating to the job
• Wrong placements of jobs
• Lack of adequate training
• Lack of supervision
• Lack of orientation
• some other similar reasons
This will result in dissatisfaction in the employee and create grievances
02. not having proper HR
• Employees’ Salaries
• Incentives
• Promotions
• Transfers
• Lay off
• Professional training and development
• Leave
• Discipline
• Recruitment and Selection

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 03. Lack of communication
• Lack of Communication is the main reason for unfound dissatisfaction
• Employees like to know relevant information.
• Employees should be made aware of management decisions and actions
• Encouraging effective communication in the organization by eliminating various
barriers to communication will definitely enhance the employer-employee
relationship while creating a conducive environment to minimize employee
grievances

04. Lack of right knowledge, skills, and attitudes of immediate supervisor

• A healthy relationship between the immediate supervisor and his/her subordinates
is very important to a conflict-free environment in the organization.
• Every supervisor has to be thoroughly familiar with the job-related technical
knowledge and skills to guide his subordinates when necessary.

05. Personal problems

• The cost of living is rising
• Traffic conditions create anxiety about arriving at work on time
• Sending children on time to school
• Getting leave to take sick children to doctors
• Getting leave to take medical treatment for employee illnesses
• The problem of finding servants
• Security of houses
How to understand and prevent grievances?
It is said that prevention is always better than treatment.
Hence it is advisable to prevent the birth and growth of a grievance rather than finding
solutions for it afterward.
Following are some of the understanding and prevention methods;
• Exit Interviews
• Attitude Surveys
• Complaint Boxes
• Observation
Exit Interview / Interviews at the time of leaving employment
When employees leave the company due to frustration, the discussions and interviews
have with them will provide an opportunity to unearth the root causes of their grievances
and prevent similar situations in the future.
Attitude Surveys
From time to time attitude surveys could be conducted within employees by way of
questionnaires and discussions. The information and data collected will help to find out
whether there are grievances and the reasons for them.
. Complaint Boxes
To place boxes to receive complaints from employees. The objective of this process is only
to obtain complaints and not suggestions
. Observations
The manager can observe directly or indirectly the behavior of the subordinates to find out
whether there are unusual ones

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Methods of handling grievances
01. Open door policy
02. Grievances committee
03. Counselling
04.Quasi method- Quasi-experimental methods are research designs that that aim to
identify the impact of a particular intervention, program or event (a "treatment") by
comparing treated units (households, groups, villages, schools, firms, etc.) to control
units.

Principles of grievance handling

• Treat all grievances as important
• Obtain all the relevant Information
• Discuss
• Active Listening
• Build trust
• Accept mistake
• Utilize the authority wisely
• Give the decision promptly

Employee discipline management

• Behaving in accordance with accepted norms, rules, and regulations.

• A condition in the organization when employees conduct themselves in accordance
with the organization’s rules and standards of acceptable behavior

Disciplinary procedure

• Formal procedure for improving performance/ behavior.

• These result in a series of warnings, verbal and written, to ensure compliance with
the organization’s rules, penalties for misconduct, and poor performance, including
dismissal.

Importance of discipline mgmt.

• To reduce conflicts and confusions

• To control and manage human resources in an orderly manner

• To ensure the employee’s behavior in accordance with performance standards, rules

and regulations of the organization

• To achieve organizational goals and objectives

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What is misconduct?

• It is a violation of discipline.

• Going against the accepted norms, behavior rules are a violation of discipline.

• Misconduct is an act, which is inconsistent with the fulfillment of express or

implied conditions of the contract of employment.
• Damaging Company property
• Dishonesty
• Theft
• Fight
• Discourtesy
• Sleeping while on duty
• Strike – related activity
• Sexual Harassment
• Negligence
• Disrespect for superior
• Refusal to accept transfer
• Intoxication and alcoholism
• High wastage
• Safety rule violation

Types of discipline
1. Preventive Discipline
2. Corrective Discipline
3. Progressive Discipline
4. Positive Discipline
Preventive discipline
• The objective of preventive discipline is to prevent indiscipline occurring in
companies by encouraging employees to follow the orderly behavior expected by
the company.
• Preventive discipline will create and encourage self-discipline among employees.
• Preventive discipline is an action to encourage employees to follow standards and
rules so that breaches do not occur. The basic objective is to encourage employees’
self-discipline.
• A self-disciplined employee has the following characteristics;
- Accept the rules
- Respect the rules
- Observes the rules by him/her self willingly
- Needs no one else to direct or supervise him/ her to adhere to rules

This can be achieved through;

• Proper communication of policies, rules, and regulations of the company;
• necessary training on job performance;
• counseling;
• mentoring;
• advising.

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Corrective discipline
• The objective of corrective discipline is to correct employees when rule violation
occurs at workplaces.
• Generally, the means of correcting misconduct is punishment.
Disciplinary actions available to a company
• Verbal warning
• Written warning
• Fine
• Suspension with or without pay
• Pay cut
• Reduction/ denial of bonus or other benefits
• Delay in increments/ deny increment
• Demotion
• Transfer
• Dismissal

Progressive discipline
• Progressive discipline progresses from the least severe to the most severe in terms
of disciplinary actions. The objective of PD is to give an opportunity to an offender to
correct his or her behavior before more severe penalties are inflicted. (Suspension)
• Progressive discipline can also be identified as a type of corrective discipline, where
employees are given opportunities to correct their behavior, before the final act of
punishment; i.e. termination of services.
• Progressive discipline means that there are stronger penalties for repeated offences.

• The purpose is to give an employee an opportunity for self correction before more
serious penalties are applied.

• A Typical Progressive Discipline Program

Time of Violation Penalty

First Informal talk

Second Verbal warning

Third Written warning with a record in

Fourth One week suspension from wor

Fifth Suspension for one month witho

Sixth Demotion

Seventh Dismissal

• Rule: Every worker must not leave workplace during work time without permission
of his/ her superior in- charge

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 Positive discipline

• Positive discipline can be identified as another aspect of preventive discipline which

also encourages self-discipline.

• A discipline procedure that encourages employees to monitor their own behavior

and assumes responsibility for their behavior.

Hot stove rule in corrective discipline

Discipline Administration should have similar characteristics as when a person touches hot-
stove For effective and fair administration of corrective discipline, it would be advantageous
for the management to follow the “hot stove rule’.

01. Warning - When the staff is warned with rules they know, if they violate the rules they will be
punished.
• As you get close to a hot stove it conveys warning of danger (burning) through the heat it
emits. Hence, people can avoid being burnt by avoiding getting close to the hot stove.
Similarly, companies should provide sufficient warning of penalties for undesirable
behaviour. A company can provide warning of penalties for indiscipline to employees by,
• Having proper policies, rules and regulations,
• Effectively communicating them to employees, and
• Setting examples through taking proper action for misconduct of employees fairly

t
02. Immediacy - here should not be a considerable time gap between the violation of rules
and punishment
• If you touch a hot stove you get burned immediately. Likewise, disciplinary action
against misconduct should be taken immediately.
• Such immediate action will communicate clearly the reasons for disciplinary action to
the wrong-doer as well as to other employees.

03. Consistency –it should be consistent

• People who touch the hot stove with the same force, with the same number of fingers,
for the same period of time, will get burned to the same extent.

• Equally, similar offenses should warrant similarly disciplinary action by the company.

• However, this does not mean you must always give the same punishment for all
similar misconducts.

• Consistency rather means a comparable employee in terms of work record and length
of service should get similarly punishments for similarly acts of indiscipline

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04. Impersonality- Without considering the category of the employee status, social
background whoever violate rules should be punished
• Whoever touches a hot stove will get burned irrespective of the person’s gender,
religion, nationality, designation, power or age.
• Similarly, whoever violates the company’s expected orderly behaviour should be dealt
with equally.

Guideline for Fair and Proper Management of Discipline

• Develop rules and regulations that are fair and necessary

• Properly communicate the rules, regulations and policies of the organizations to

employees

• Sufficiently communicate the disciplinary procedure to employees

• Educate and train supervisors and managers about the disciplinary procedure of the
organizations and fair and proper handling of disciplinary problems

Importance of maintaining discipline in organizations

• Help to carry out day to day functions of the organization smoothly

• Increase the efficiency of the workforce as they adhere to the various policies, rules,
and regulations of the company.

• Save money spend on disciplinary action, court cases, labour tribunal, sabotage, etc.
that rise due to disciplinary matters

• Improve employer-employee relationship

• Ensure safe, peaceful, and orderly work environment

• Maintain industrial peace, as there are fewer problems in organizations

• Leads to the goodwill of an organization

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Employee health and safety management
Employee health
A state complete physical, mental and social well-being and not merely the absence of
disease or infirmity”
(Defined by, WHO)
Categorization of employee health
• Physical health – absence of physical diseases
• Mental health- absence of mental diseases
Employee health for employee performance

Employee Good Health

Good Mental Ability Good Physical Ability

Correct Decision and good Flexibility, adaptability, doing the

Behaviour right thing

\employee safety
• Employee’s Freedom from risk or danger in his working place”. Protection of the
physical health of an employee
Who is responsible for health and safety?
Generally
• All employees are responsible for a safe working environment
• HR Management is responsible for providing:
• working conditions on health & safety,
• Safe equipment
• Training
Physical and mental hazards
Three Types of Hazards,
1. Occupational Accident
2. Occupational Illness
3. Organizational Stress

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01. Occupational accidents
• Mechanical/machine injuries
• Electrocution- Electrical injuries
• Blind
• Disablement, partial or total disablement
• Hard of hearing /deaf
• Accidental falls- falling from heights
• Death

02. Occupational illnesses

• Cancer
• Asthma
• Lead poisoning
• Childlessness
• Skin diseases
• Eye/nose/throat irritation

03. Organizational stress

• Confusion
• Negligence
• job dissatisfaction
symptoms of poor health and safety
• Absenteeism
• Accidents
• High turnover
• Low efficiency
• Low productivity
• Job dissatisfaction
• Occupational diseases
Employee health and safety administration
• Washing facilities- taps/showers/cleaning on a daily basis
• Work uniforms – suitable material /changing rooms/lockers
• Place for meals- meal rooms/canteens/sanitation/waste disposal
• First aid facilities – adequate quantity of work force/ keys to be places in strategic
locations under the supervisions of a responsible officer
• Toilets – water supply/sanitation/privacy/cleanliness
• Medical facilities- quality of care/ in-house doctor/visiting doctor/ qualified nurses
• Provide training – enhance employee’s knowledge, skill and attitude on health and
safety / provide regular training on H&S
• Safety equipment – shoes/gloves/helmet/ eye protection

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