SUBJECT CODE: MB0043 SUBJECT NAME: HUMAN RESOURCE MANAGEMENT

ASSIGNMENT 1:

1. Write down the difference between Personnel management and Human Resource management. Personnel management is regarded to be more administrative in nature. Personnel management basically deals with the employees, their payroll and employment laws. On the other hand, Human Resources Management deals with the management of the work force, and contributes to an organizations success. Human Resources Management is spoken about in a much broader sense than Personnel Management. It has been said that Human Resource management incorporates and develops personnel management skills. It is Human Resources Management that develops a team of employees for an organization. Personnel management can be considered as reactive, in the sense that it provides concerns and demands as they are presented. On the contrary, Human resources Management can be stated to be proactive, as it pertains to the continuous development of policies and functions for improving a companys workforce. Whereas personnel management is independent from an organization, the Human Resources Management is an integral part of a company or an organization. One can also come across differences in motivational aspects. While Personnel management tends to motivate the employees with compensations, rewards and bonuses, Human Resources Management tends to provide motivation through human resources, effective strategies for facing challenges, work groups, and job creativity.

Personnel management focuses on administrating people. On the contrary, the prime focus of Human Resources Development is to build a dynamic culture. We can thus summarize the main points of difference as follows: 1. Personnel management deals with employees, their payroll and employment laws. On the other hand, Human Resources Management deals with the management of the work force, and contributes to an organizations success. 2. Human Resource management basically deals with developing personnel management skills. It is Human Resources Management that develops a team of employees for an organization. 3. While Personnel management is considered to be reactive, Human Resources Management is stated to be proactive. 4. Personnel management focuses on administrating people or employees. On the other hand, the prime focus of Human Resources Development is to build a dynamic culture. 5. Personnel management is independent from an organization. On the contrary, Human Resources Management forms an integral part of a company or an organization.

2. Write a note on scope of HR in India. In India the owner manager/government/public sector manager was an industry icon and a national hero of sorts. The Personnel Management practices were dominant of the brick-andmotor industry. Though the approach was largely welfare oriented and reactive in nature it served effectively for the large PSU organizations that built the countrys foundation. Its only in the past 10-12 years with the immense growth on account of the IT industry that winds of change began to blow. It was largely the advent of the Information Technology era in India that brought with it the western management practices. MNCs (multinational companies) started up their operations in India. The FDI (foreign direct investment) went up steeply as the world saw the potential in the countrys human resources. India became a preferred location for MNCs primarily from the USA, followed by other developed countries.

This gave birth to a new generation of management as well as HRM practices. New hiring methods, new ways of paying salaries, new employment terms and most importantly increased focus on individual performance and outcomes. There was emphasis on deliverables and linking individual and team performance to business results and success. Given the highly educated workforce there was a de-emphasis in the role of the trade unions. The era of the trade union dominance gave way to the new order of individual negotiated salaries and terms and clearly performance linked assessment systems. Another transformation that the Indian workplace witnessed was the focus on ethics and ethical practices in doing business. It was only fair to expect that with the weak legal system, it needed the support of the government policies and the corporate policies to beat the corruption that existed. This has significantly contributed to India emerging as a preferred destination for doing business. All of this has yielded to give way to the birth of the professional manager Professional managers today are a critical and essential part of the Indian corporate. The professional manager brought about a shift in the culture from a highly authoritarian approach of getting work done, to a more collaborative and participative approach. The entrepreneurs who earlier operated in a secure, sheltered market and hardly face challenges, were challenged by the globalization that swept in with the liberalization policies and measure brought in by the Indian government late 1995 and onwards. Despite the challenges, the Indian employee and his manager evolved. Together they stepped up to face the challenge head-on and to win not only in India but also globally. The levers of (a) low cost, (b) highly skilled, and (c) English as the medium of education and it being the corporate-language: were the key drivers that enabled the flow of global business to India. There was exponential growth in employment both directly (jobs in the international and domestic companies) as well as indirectly (as support industries like transport, catering and ancillary industries). The simultaneous investment of the government in building the necessary infrastructure did its share of providing impetus towards creating more jobs for the people of the country. Hence, human relations movement in India has evolved very differently as compared to what we see in the developed economies of the USA and the UK. What is currently acting as a limitation is the enhanced awareness on the need for research based HRM practices. While there is a lot of work happening in the Indian education system to promote this, it is going to take a

while before it can create a distinct body of knowledge that is referenceable. For now the industry relies on emulating westerns HR practices and customizing on a as-needed basis for the Indian corporation. For the rest the industry forums and consortiums like the NASSCOM act as a hub bringing together organizations on a regular basis to discuss challenges and share best practices and identify ways and means o overcome them together. So far this has been successful and working to the advantage of the Indian corporate. Leading MNC research and consulting firms like Mercer and Hewitt too contribute to the industry through carrying out research and sharing reports on a regular basis. The approach however remains analytical and less prescriptive.

3. Explain the critical steps in Human Resource Planning system. The critical steps that are part of the above system are as follows: A. Purpose of Human Resource Planning: Human Resource Planning fulfils individual as well as organizational goals. What it essentially amounts to is striking a balance between the future human resources needs and the future enterprise needs. And this is done with the clear objective of maximizing the future return on investment in human resources. And this objective may be laid down for a short-term (i.e. for one year). B. Estimating/Forecasting the future Manpower Requirements: the first step in the process is to arrive at the desired organizational structure at a given point in time. Mapping this structure with the existing structure helps in identifying the gap in resources requirement. The number and type of employees needed have to be determined. In addition to the structure there are a number of external factors that affect this determination. They include business forecasts, competitor strategy, expansion plans, product /skills mix changes, profit/revenue growth projections, in addition to management philosophy and government policies. This step also includes an analysis of the external labour/talent environment, its demographics, demand/supply of the required talent, and cost considerations. C. Auditing Human Resources: Once the future human resource needs are estimated, the next step is to determine the present supply of manpower resources. This is done through what is

called Skills Inventory. A skills inventory contains data about each employees skills, abilities, work preferences and other items of information which indicate his worth to the company. Skills inventory are also referred to as competency dictionaries. This information is usually retained as part of the performance management system with the HR department. This step in the HRP system helps identify the existing profile of the manpower and its efficiency. It helps highlight where the organization is vs. where it ought to be. The step concludes with identifying clear gaps in the skills/ manpower mix required to meet the upcoming business objectives. D. Job Analysis: After having decided how many persons would be needed, it is necessary to prepare a job analysis. The recorded details of training, skills, qualification, abilities, experience and responsibilities, etc. as needed for a job are studied. Job analysis includes the preparation of job descriptions and job specifications. E. Developing a Human Resource Plan: This step refers t the development and implementation of the human resource plan, which consists in finding out the sources of labour supply with a view to making an effective use of these sources. Some important considerations at this point are: Specific roles/disciplines being hired for, of them which roles are pivotal for the business Competencies and capabilities needed Manager vs. employee hiring Hire internally vs. External sourcing Planning for new skills through training existing staff vs. hiring new teams In case of surpluses, planning for redeployment/ reduction in workforce as required Succession planning for key positions in the company

4. With Reference to compensation and salary system what are the systems that are helpful to raise the effectiveness of employees? Compensation/ salary systems are designed to ensure that employees are rewarded appropriately depending on what they do and the skills and knowledge (intellect) required for

doing a specific job. It must therefore provide for the following key factors in order to be effective: Signal to the employee the major objectives of the organizations- therefore it must link to the overall goals and objectives of the company. For example if doing a quality job is critical for the company its compensation system has to ensure that this is adequately rewarded. On the other hand if a company values productivity and units produces, the compensation system would be designed such that productivity is rewarded. Attract and retain the talent an organization needs the need to benchmark salaries to the prevalent market standard for that job / skill so that the company is able to attract the right talent. If a enterprises pays a salary lower that what the market does for that job/responsibilities, the probability that suitable candidates would take the job offer and join the company. Even if they do join subsequently when they find that the market pays more for that job they would quickly find a more remunerative job and leave the company. Motivate employees to perform effectively as discussed at the outset, money is a key motivator and it often might be the only motivator for most employees, therefore ensuring that compensation is appropriately disbursed need to be taken care of while designing the compensation system. Jobs in the brick and motor, production setups would focus on higher incentive policies that would motivate the employee to produce more while the base-salary would be low. Create the type of culture the company seeks to engender compensation systems play a critical role as sponsors for the organizations culture. A performance driven culture would build compensation policies that clearly and significantly reward performance. A company that rewards loyalty would reward employees who stay longer in the company with significantly better incentive programs. Hence we see how compensation systems are reflective of the organizations over all philosophy of what its goals and objectives are and how this can be linked to salary payout.

5. What is competency? How it can be linked to the HR system? In competency based human resource system, skills management supported by the right training and development programs play a prime role in driving employee productivity. If an organization has chosen this method, it means that it begins at the recruitment stage. The competencies required for the vacant positions are identified. The interview questions are based on the requirements of each job. Further, one needs to enhance and update the competencies of serving employees. By taking these actions, one can increase employee value as a very important asset. Management is defined as 'achieving results through others (people).' This gives emphasis on the jobs in the organization and the employees who carry out these jobs. They prefer concentrating on the recruitment activity and managing competencies required to perform the jobs. They believe organizations that implement competency based human resource management can respond quickly to changes. The former method concentrates on people management. The latter gives priority to managing competencies.

Types of Competencies: A competency based human resource system approach requires effective talent management in the following areas: Functional Competencies: These are the competencies required to perform the duties and responsibilities for each and every position. It is clear that these competencies vary from job to job. Behavioral Competencies: These are the types of behaviors that employees demonstrate, showing that they have the required skills and knowledge. These competencies enable employees to perform their jobs well. Core Competencies:

These are competencies that run across functions and levels. These competencies are common for all positions. Such competencies can improve the competitive advantage of your organization. Examples of behavioral competencies: communication and motivation abilities leadership skills teamwork; decision making ability analytical ability adaptability

Core competencies are normally selected from the most important functional and behavioral competencies such as: leadership change management skill people-skill development ability strategic planning ability employee recruitment, motivation and retention skills

It is clear that competency based human resource system is based on the selection and management of the right competencies. And ensuring that employees including new employees possess those competencies. Employee effectiveness is measured against the standards relevant to the industry in which the organization is engaged in. What is lacking is referred to as a 'competency gap.' The objective is to address the competency gap or gaps by providing the right training and development programs. Competency Based Human Resource System and Competency-Based Training In competency based human resource management, the emphasis is on behavioral approach and

performance. It is closely connected to HR talent management. Here, 'HR' refers to every member of the entire workforce, not just people in Human Resource departments. Competency based training is training intended to improve employee competence or to equip them with new competencies required in the effective performance of jobs. This includes the needs of the organization as it responds to changes in a dynamic environment. It is a continuous activity. This is vital in maintaining an organization's competitive edge. Training can improve competence required by people at the various levels in the organization's hierarchy and every area of tactical and operational activities, such as: individual employees in their personal mastery of their time, their jobs and relationships heads of Unit especially in intra-group management team leaders in inter-group management departmental and business unit heads in the functional management of their respective area of operations senior management especially the CEO in the industry's management especially effective leadership skills heads of global organizations in global and diversity management

Competence and Service Excellence: Competent people assist an organization in attaining service excellence. Excellent service is a pre-condition for organizational success and success means positive financial outcomes and / or organizational survival. A competency based human resource system is considered as one of the approaches in human resource management.

[Link] Learning is an organization that wants to revise the HR policies. It has conducted a survey and the results of the survey indicated that there is employee unrest, tardiness, absenteeism, more grievances. This all clearly indicates low morale. Suggest the measures that can be taken to improve employee morale.

Morale boosters can take the form of recognition, compensation, special perks or simply terminating employees. Here are 11 low cost morale boosters: Welcome ideas: Employee morale improves when the staff feel that they are valued. Share and implement their innovations and ideas. Keep Score: Mount a large score board in the office to recognize top performers and to motivate those on the bottom of the list. Inspect: The old management adage, inspect what you expect is true. Companies with a lack of focus can confuse staff and lead to less morale. Thank You Notes: Send a special thank you letter to you staffs family or spouse, praising their good work and efforts. Huddle: Have a daily morning huddle to highlights tasks for the day and to cheer yesterdays wins. Open Up: Provide an open forum or one-on-one time to allow employees to express their concerns and feelings can be an easy means to boost morale. Have Fun: Special events and outside work activities can take the pressure off the day-to-day grind in the office. Show Charity: Get your staff involved in a bigger cause to help them see there is more to life than work. Add Perks: Use low cost perks such as a Foosball table in the lunch room. Fire Staff: Sometimes the root cause of low employee morale can be a staff member whose negativity brings down the group. Even a top performer can bring down staff behind your back. Measure it: Keep tabs on the levels of morale in your business by regularly measuring employee satisfaction. The backbone of business success resides in the productivity and output of your employees. Those companies who remain vigilant to the signs of low morale and who focus on improving morale can thwart off the impact of a low morale workplace. Managers are often concerned with employee morale and finding ways to improve it. According to an article on the Entrepreneur website, morale in the workplace is the final result of factors present in the work environment including salary, working conditions, status and job satisfaction. Employers may notice symptoms of low morale, such as apathy, low productivity,

decreased quality and more absenteeism. To combat low employee morale, employers must be willing to make lasting, positive changes. Listen to Employee Concerns

If you detect employee morale is slipping, try talking about it with individual workers. If employees are willing to be open and share their concerns, ask them for their ideas to improve the work environment. If the workforce greets your inquiries with suspicion, consider asking them to complete an anonymous job satisfaction questionnaire. Give Employees Clear Expectations

If workers do not understand the expectations of their job, morale will suffer. Make sure that training materials and job descriptions are up-to-date and accurate. Try to give employees plenty of advance notice regarding changes in policy or work volume that will affect them. Set Mutually Acceptable Goals

Morale should start to rise if employees are working toward goals they helped set. Give every employee the opportunity to participate in setting work-related goals. Find out if they need additional training or resources to be successful, and encourage them in their efforts. Provide Feedback

Take the time to let employees know how they are doing. If they are under performing, find out if they need more training or have personal problems that are affect their work. Be sure to recognize exceptional performance and show your appreciation. Show Concern

Spend a few moments each day speaking individually to employees. Speak to them by name and ask them how things are going. Show genuine concern if employees share problems or struggles. Be Persistent in Efforts

Turning around low employee morale does not happen overnight. In fact, a short lived, halfhearted effort to improve the work environment will likely make things worse.