HUMAN RESOURCE MANAGEMENT

SYLLABUS

Manpower Planning, Job Analysis, Job Description, Scientific Recruitment and Selection Methods. Motivating Employees  Motivational Strategies, Incentive Scheme, Job-enrichment, Empowerment  Job satisfaction, Morale, Personnel Turnover. Performance Appraisal Systems  MBO Approach, Performance Counseling, Career Planning. Training and Development  Identification or Training Needs, Training Methods, Management Development Programmes.

REFERENCE TEXT

 

Human Resource Management  P. Subba Rao
Personnel Management  C. B. Mammoria Dessler : Human Resource Management (Prentice Hall India) Personnel / Human Resource Management : DeCenzo & Robbins (Prentice Hall India) D. K. Bhattacharya Human Resource Management (Excel)

VSP Rao  Human Resource Management (Excel)
Gomez : Managing Human Resource (Prentice Hall India)

MANPOWER PLANNING & EMPLOYEE RECRUITMENT .

capable of effectively and efficiently completing those tasks that help the organization achieve its overall objectives. .DEFINITION OF MANPOWER PLANNING Process by which an organization ensures that it has the right number & kind of people at the right place and at the right time.

what type of people do we need.MANPOWER PLANNING Company Strategy Job Analysis • Performance Appraisal •Company Databanks • Training •Employee Management and Development What staff do we need to do the job? What staff is available within our organization? Is there a match?? What is the impact on Wage and Salary program If not. and how should we recruit them? .

It is an investigation of duties and responsibilities necessary to do a job Determination of tasks which comprise the job and of skills. knowledge.JOB ANALYSIS    Job analysis is a formal and systematic process used for obtaining information about the job. abilities and responsibilities required of the worker for a successful performance and which differentiates one job from all others. Job Description Job Analysis Job Specification .

USES OF JOB ANALYSIS      Planning Recruitment and Selection Training Performance Appraisal Job Evaluation .

METHODS OF COLLECTING JOB ANALYSIS DATA      Personal Observation Interview of Employee and Supervisors  Put the worker at ease  Make the purpose of interview clear  Phrase question in such a way that the answer will be in YES or NO  Summarize the information obtained before closing the interview Panel of Experts Diary Method Questionnaire Method .

IMPACT OF BEHAVIOURAL FACTORS ON JOB ANALYSIS    Exaggerate the Facts Employee Anxieties Resistance to change .

what are job content. Describes what job is all about. environment and conditions of employment.JOB DESCRIPTION    It defines the purpose and scope of a job. Contents: A job description usually covers the following information:  Designation  Corporate Grade  Reporting To  Position Reporting to this Position Sample Job Description 1 Sample Job Description 2  Qualifications  Experience  Job Summary  Main Responsibilities .

PROBLEMS WITH JOB DESCRIPTION  It is not easy to reduce all the essential components of the job in the form of a clear and precise document. reducing organizational flexibility.   . Job description are sometimes not updated as the job duties change The can limit the scope of activities of the job holder.

JOB SPECIFICATION     Job specification summarizes the characteristics needed for completing a job. It spells out the important attributes of a person in terms of education. skills. experience. Job specifications can be classified into three categories:  Essential Attributes  Desirable Attributes  Contra-Indicators . knowledge and abilities to perform a particular job. This helps the organization to determine what kind of persons are needed to take up specific jobs.

in turn.JOB EVALUATION  Job analysis also helps in finding the relative worth of a job based on criteria such as:    Degree of difficulty in the work Type of work done by the employee Skills and knowledge needed  This. assists in designing proper wage policies. with internal pay equity between jobs. .

IMPORTANCE OF MANPOWER PLANNING  Talent pool Prepare people for future   Smooth transition during expansion Succession Planning Support to overall business strategy   .

PROCESS OF HRP Forecasting the demand for Human Resources • Organisational Decisions • Workforce Factors Supply Forecasting • Internal Labor Supply • External Labour Supply Determining Manpower Gaps and Formulating HR Plans .

FACTORS OF MANPOWER PLANNING Factors in forecasting Personnel Requirements Projected Turnovers (as a result of resignation and terminations) Quality and Nature of your Employees (in relation to what you see as the changing needs of your organisation) The financial resources available to your organisation .

of Employee needed.TECHNIQUES TO DETERMINE NO. OF RECRUITS Study of a firm’s past employment needs over a period of years to predict future needs. . Trend Analysis Ratio Analysis A forecasting technique for determining future needs by using ratios between sales volume and no.

of applicants will be much higher than the demand. . or the no. In such a case the company will find it relatively easier to select new employees from the large no of applicants.RECRUITMENT FROM EXTERNAL RESOURCES • Recruiting new staff from external sources will be influenced by several factors Macro Economic Conditions of a Nation When the economic conditions are relatively difficult. there will usually be an oversupply.

Sector Company It will tend to be easier for company to find and recruit the best people if the company has a good Reputation reputation. .RECRUITMENT FROM EXTERNAL RESOURCES Availability of When the sector is one that is considered as ‘Rare Manpower Sector’. the company will have more difficulty in in Desired recruiting staff for this sector.

RECRUITMENT .

DEFINITION  Recruitment is a process of locating and encouraging potential applicants to apply for existing or anticipated job openings.  Recruitment aims at  Attracting a large no. of qualified applicants who are ready to take up the job if its offered  Offering enough information for unqualified persons to self-select themselves out .

CONSTRAINTS AND CHALLENGES  Poor image  Unattractive jobs Limited budgetary support Restrictive policies of government Compensation not matching as per the industry standard Economic Environment      Social Environment .

METHODS OF RECRUITMENT Methods of Recruitment .

METHODS OF RECRUITMENT Internal Method  Promotions and Transfers  Job Posting  Employee Referrals Direct Method  Campus Recruitment Indirect Method  Advertisement  Private Employment Search firms  Internet Recruitment .

EFFECTIVENESS OF RECRUITMENT PROCESS  Cost per hire Time-lapse between recruitment and placement ratio   Applicant’s performance Turnover  .

SELECTION .

The basic purpose is to choose the individual who can most successfully perform the job.  Selection is the process of picking individuals who have relevant qualifications to fill jobs in an organization.   .DEFINITION  To select means to choose. from the pool of qualified candidates. How well an employee is matched to a job is very important because it directly affects the amount and quality of the employee’s work.

SELECTION PROCESS Selection Interview .

Content Validity: Test that contains fair sample of tasks and skills actually needed for the job.   .BASIC CONCEPT OF SELECTION TEST  The quality of an employee selection test is determined by the three main factors:  Criterion Validity: A type of validity based on showing that scores on the test (predictors) are related to the job performance (criterion). Reliability: The consistency of scores obtained by same person when retested with identical or equivalent test.

Simulation tests Assessment Centre Interview     . interpersonal skills. behavioral pattern. motivation level etc.SELECTION TESTING  Intelligence Test / Aptitude Test Personality Test  Confidence. Emotional balance.

TYPES OF INTERVIEW  Several types of interviews are commonly used depending on the nature and importance of the position to be filled:  Non-directive / Unstructured Interview  Directive / Structured Interview Situational Interview Behavioural Interview – STAR Technique Stress Interview     Panel Interview .

INTERVIEWING MISTAKES      Not asking right question and hence not getting relevant responses Snap Judgments May allow ratings to be influenced by his own likes and dislikes May have forgotten the interview’s content after its conclusion Unduly influenced by person origin. cultural background etc. .

Non verbal behaviour Interviewer behaviour Have been under pressure to hire candidates at short notices .INTERVIEWING MISTAKES       Halo Affect – Positive Horn Affect – Negative Candidate order in which you interview also affects how you rate them.

INDUCTION .

procedures and rules. Objective:  Remove fears  Creates good impression  Acts as a valuable source of information  .MEANING AND OBJECTIVE  Meaning:  Induction means the task of introducing the new employees to the organization and is policies.

benefits. Seating place and relationship with other job Give the company’s manual to the new recruits Company policies. rules and disciplinary procedure Give the details about pay. Idea about work culture Future training opportunities Career Path .INFORMATION TO BE PROVIDED            Explain about the company Show the department Introduce with the colleagues Introduction with the reporting heads Overview of the Job responsibilities. leave. etc. holidays.

PERFORMANCE MANAGEMENT AND APPRAISAL .

PERFORMANCE MANAGEMENT SYSTEM .

WHY PERFORMANCE MANAGEMENT  Clarity of expectation Timely recognition and feedback Enhances employees’ effectiveness by helping to identify their strengths and weaknesses A quality relationship with the line manager where the individual feels that they are listened to and understood as an individual Improves performance and helps in achievement of goal     .

normally including both quantitative and qualitative aspect of the job  How the employee is performing  How the employee can develop others  Planning and organising skills  Initiative  .WHAT IS PERFORMANCE APPRAISAL  Performance Appraisal (PA) refers to all those procedures/tools that are used to evaluate employees  Personality  Performance  Potential of employees PA is the method of evaluating the behaviour of the employees in the workplace.

OBJECTIVE OF PERFORMANCE APPRAISAL  Provide information about performance ranks Provide a basis for promotion and increments. Identify Training and Development needs Counseling Employees     Career planning decisions .

STEPS IN PERFORMANCE APPRAISAL  Define the Job Appraise the performance   Provide feedback .

METHODS OF PERFORMANCE APPRAISAL  Individual Evaluation Method:    Graphic Rating Scale Confidential report Essay evaluation     Critical Incidents 360 Degree Feedback Behaviorally Anchored Rating Scale MBO .

METHODS OF PERFORMANCE APPRAISAL  Multiple Person evaluation Method: Ranking Paired comparison   .

CONFIDENTIAL REPORT

Descriptive report
  

Prepared at the end of the year Prepared by the employee’s immediate supervisor The report highlights the strengths and weaknesses of employees

 

Prepared in Government organizations

Does not offer any feedback to the employee

ESSAY EVALUATION

The rater is asked to express the strong as well as weak points of employee’s behavior

The rater considers the employee’s :

Job knowledge and potential

Understanding of company’s programs, policies,
objectives etc

  

Relation with co-workers and supervisors Planning, organizing and controlling ability Attitude and perception

ESSAY EVALUATION

This method has the following limitations:
   

Highly subjective Supervisor may write biased essay Difficult to find effective writers

A busy appraiser may write the essay hurriedly without assessing properly the actual performance of the worker
If the appraiser takes a long time it becomes uneconomical from the view point of the firm

CRITICAL INCIDENT TECHNIQUE  According to this method the supervisor keeps a log of positive and negative examples (critical incidents) of sub-ordinates’s work – related behaviour  Every six months the performance of the subordinates are discussed periodically  The manager periodically records critical incidents of employee’s behavior .

The recording of incidents may be a chore for the manager concerned who may be too busy or forget to do it. Results in very close supervision which may not be liked by the employee.CRITICAL INCIDENT TECHNIQUE Limitation of this technique are:     Negative incidents may be more noticeable than positive incidents. Supervisors have a tendency to unload a series of complaints about incidents. .

. colleagues. subordinates.360 DEGREE FEEDBACK 360 Degree Feedback is a multi . internal customers and external customers.rater feedback system where an individual is assessed by a number of assessors including his boss.

WHAT IS 360 DF? Feedback collected from Internal Customers “Boss” Peers Self External Customers Team Members .

Definition of parameter and definition of scale both are equally important    . Job Knowledge as a parameter might be rated 1 (poorly informed about work duties) to 5 (has complete mastery of all phases of the job). The appraiser has to rate the appraisee in different parameter on a rating scale.GRAPHIC RATING SCALE  This is the oldest and most widely method used for performance appraisal.

.................. thoroughness and accuracy of work Knowledge of job A clear understanding of the factors connected with the job Unsatisfactory (1) Fair Satisfacto Good Out (2) ry (4) Standi (3) ng (5) Attitude: Exhibits enthusiasm And cooperativeness on the job ................. Department .Graphic Rating Scale Employee Name..... Quantity of work: Volume of work under normal working conditions Quality of work: Neatness.. Job title ....................

.... Job title ............................... Department .  Outstanding: Performance is exceptional in all areas and is recognizable as being far superior to others Very Good: Performance is of high quality and is achieved on a consistent basis Good: Competent and dependable level of performance...Graphic Rating Scale Employee Name. Meets performance standards of the job   .......................

..............Graphic Rating Scale Employee Name... Improvement is necessary.  Improvement Needed: Performance is deficient in certain areas... Department ...... Unsatisfactory: Results are generally unacceptable and require immediate improvement....... Job title .. Not Rated: Not applicable or too soon to rate   .............................

 The critical incidents serve as anchor statements on a scale of ratings.BEHAVIOURALLY ANCHORED RATING SCALE (BARS)  Combination of Rating Scale and Critical Incidents Techniques of employees performance evaluation. .  Rating forms usually contains six to eight specifically defined performance dimensions.

HOW TO CONSTRUCT (BARS)  Emphasis is pinpointed on pooling the thinking of people who will use the scales as both evaluators and evaluees. . relationship with peers. meeting day to day deadline etc.  Step I: Collect ‘Critical Incidents’ from Job Holders & Supervisors.  Step II: Identify performance dimensions – Technical competence. Relationship with customers.

.HOW TO CONSTRUCT (BARS)  Step III: Reallocate Incidents: Another group of participants who also know the job then reallocate the critical incident  Step IV: Scale the Incidents: The second group then Assigns scale values to the incidents.  Step V: Producing final instrument. Choose about six or seven incidents as the dimension’s behavioural anchors.

ADVANTAGES & LIMITATIONS OF BARS     Increased acceptance by supervisors and superiors Job specific Identifies observable and measurable behaviour Reliable and valid method    Lack of ‘result orientation’ Time consuming and expensive to create BARS Several appraisal forms for different types of Job .

RANKING METHOD  Ranking of an employee in a work group is done against that of another employee. It does not tell how much better / worse an employee is when compared to another employee. its is very difficult to compare individuals possessing varied behavioural traits. Employees are ranked according to their relative levels of job performance In practice. No systematic procedure for ranking individuals in the organisation     .

The comparison is done for every trait. Cant be applicable when the group is large. As compared to A B C D E _ + _ _ _ + _ _ + + A B + C _ + D + _ + E _ + _ _ .PAIRED COMPARISON METHOD    Each worker is compared with all the other employees in the group.

 It is a kind of goal setting and appraisal program.  The technique emphasises on setting goals collectively by superior and subordinates. measurable goals with each employee and then periodically discuss the employees’ progress towards these goals.  MBO focuses attention on what must be accomplished (goals) rather than how it is to be accomplished.6. MANAGEMENT BY OBJECTIVES (MBO)  MBO emphasizes to set specific. .

STEPS INVOLVED IN MBO   Set Organisational goals Set Departmental goals     Discuss Departmental goals Define expected results (Set Individual Goals) Performance Reviews Provide feedback .

TYPES OF APPRAISAL INTERVIEW  Satisfactory and Promotable Satisfactory but Not Promotable Unsatisfactory but Correctable Unsatisfactory and Uncorrectable    .

PROVIDING FEEDBACK         Adequate Preparation Talk in terms of objective work data Don’t get personal Encourage the person to talk Don’t tiptoe around Proper Timing Help the appraisee Action Plan .

PROBLEMS WITH PERFORMANCE APPRAISAL   Unclear Standards Judgement Errors  Halo Effect  Horn Effect  Leniency  Central Tendency  Recency Effect Poor appraisal forms Lack of Rater preparedness   .

MANAGING CAREERS OF EMPLOYEES .

EMPLOYEE TYPE  Low potential – Low Performance Low potential – High Performance Low performance – High Potential High performance – High potential    .

establishes action plan to attain specific goals .CAREER PLANNING  Career Planning:  The deliberate process through which employees becomes aware of personal skills. and other characteristics. knowledge. motivations. interests. acquires information about opportunities and choices. identifies career related goals.

MANAGING PROMOTIONS AND TRANSFERS  Decision 1: Is seniority or competence the rule? Decision 2: How should we measure competence? Decision 3: Is the process formal or informal? Decision 4: Vertical. or Other?     Decision 5: Transfers? . Horizontal.

Directly aligned and Linked to career path in the organisation Adds development plan and individual goal setting Matched individual and jobs based on a number of variables Reward for non job related activities as well Compensation and Reward for productivity Benefits . tasks for present and future Provide opportunities for learning and development Rating and / or Rewards Matching organisation’s need with qualified individuals Career Development Focus Adds information about individual interests. Skills required. preferences.CAREER DEVELOPMENT TODAY HR Activity HR Planning Training and Development Performance Appraisal Recruiting Traditional Focus Analysis of Job. likes etc.

ROLES IN CAREER DEVELOPMENT  Individual Manager Organisation   .

skills and values  Seek out career information and resources  Establish goals and career plans  Utilize development opportunities  Talk to manager about your career  Follow through on realistic career plans  .ROLES IN CAREER DEVELOPMENT  Individual: Accept responsibility for your own career  Assess your interest.

ROLES IN CAREER DEVELOPMENT  Manager:  Provide timely performance feedback  Provide support in development Participate in career development discussion  .

ROLES IN CAREER DEVELOPMENT  Organisation:  Provide training and development opportunities  Provide career information and career programs Offer career options  .

INNOVATIVE CORPORATE CAREER DEVELOPMENT INITIATIVES  Provide each employee with an individual budget Offer on-site or online career centers Encourage role reversal Establish a Corporate Campus     Provide career coaches Provide goal setting and career planning workshop  .

TRAINING AND DEVELOPMENT .

skills and attitude can be termed as training .TRAINING Any attempt to change an employees’ current and future performance by changing his knowledge.

problem is out of control of the employee Problem: Lack of Knowledge or Tools Method Training Problem: Bad Fit Method Consider improper placement of employee in the position Low Low High Employee attitude/desire to perform the job .TO TRAIN OR NOT High Problem: Low Motivation Method Assess personal consequences/ rewards system Problem: Systemic Job Knowledge Method Consider system issues.

IMPORTANCE & NEED OF TRAINING  Aids in new entrants attaining role clarity      To bridge gap between skills requirement and skills availability Promotions Improves quality and productivity Meet organizational objectives Improves organizational climate To support personal growth and development .

THEN WHY IS TRAINING OFTEN NEGLECTED? Training time Not knowing exactly what you want your people to do and how Costs Short-term worker Employee turnover .

TRAINING CYCLE Training Need Assessment Evaluation Implementation .

TRAINING NEED ASSESSMENT  Organisational Analysis  Analysis of Organization's Objectives  Resources utilization analysis  Environmental Scanning  Organisational Climate analysis Task or Role Analysis  Performance Standards  The task they have to discharge Person Analysis   .

IMPLEMENTATION  Selecting the Trainees Selecting the Trainer Selecting the Venue Developing Training Program     Required arrangements before the training session .

EVALUATION  Levels of evaluation     How did participants react? What did participants learn? How did participants’ behaviour change? Impact on Business Results? .

COMPENSATION MANAGEMENT .

REMUNERATION MODEL Job Description Job Evaluation Pay Survey Job Hierarchy Pricing Jobs .

OBJECTIVES OF COMPENSATION PLANNING         Internal equity External equity Individual equity Attract talent Retain talent Ensure equity Desired behaviour Control costs .

FACTORS AFFECTING COMPENSATION  Demand and Supply of employable workforce  Labour unions Cost of living Industry standards Ability to pay Job requirements Compensation philosophy of the organisation      .

COMPONENTS OF REMUNERATION  Components of Remuneration are: Salary  Incentives  Fringe benefits  Perquisites  Flexible Benefits  .

gratuity. or occurrence of certain events like medical benefits. accident relief. Fringe benefits: Provided to the employees either having long-term impact like provident fund. pension. Fringe benefits are taxable on the hands of employer    . health and life insurance.COMPONENTS OF REMUNERATION  Salary: Direct remuneration received by employee for his/her job Incentives: Additional payment linked to productivity. achievements of targets or saving costs etc.

  . free residential accommodation. Perquisites are taxable on the hands of employer Flexible Benefits: This type of benefits allows employees to chose benefits that suits their needs. stock options. Such perquisites include company car. etc. paid holiday trips.COMPONENTS OF REMUNERATION  Perquisites: These are normally provided to managerial personnel either to facilitate their job performance or to retain them in the organization. club membership.

INCENTIVE PAYMENTS

Incentives are variable rewards granted to employees according to variations in their performance. Importance  Greater Output  Reduced supervision  High Efficiency  High Motivation Disadvantages  Deteriorated Quality  Jealousy feeling  Unwanted Stock

TYPES OF INCENTIVE SCHEMES

Individual Incentive Schemes Group Incentive Schemes

Company – Wide Incentive Plans

IMPORTANCE

Image Building

Institutional effectiveness
Attract talent
Effective Compensation

Ensure Equity

Legal Compliance

Administrati vely Efficient

Motivate & Retain Staff

Employee Management

Reward Valued Behavior

Non Monetary Rewards Salary Reviews Remuneration Below Market or Above Market Rates Comparable Worth Pay Secrecy .CHALLENGES OF REMUNERATION Skill based Pay Monetary Vs.

COMPENSATION MATRIX HIGH COMPENSATION – LOW COMMITMENT HIGH COMPENSATION – HIGH COMMITMENT Hired Guns LOW COMPENSATION – LOW COMMITMENT Professionals LOW COMPENSATION – HIGH COMMITMENT Workers as commodity Family oriented organization .

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