Management of Human Resources MS 02 Dr.

Onkar Nath

UNIT 1 The changing Social Context and Emerging Issues HRM is concerned with the most effective use of people to achieve organizational and individual goals. It is a way of managing people at work, so that they give their best to the organization. A new mandate for Human resources HR should become partner Become an expert Become a champion for employees Become agent of continuous transformation

Why HRM Matters now more than ever Globalization Profitability through growth Technology Intellectual capital Change, change and more change

The Changing Role of HRM Managing human resources in the emerging scenario Borderless world Diversity Knowledge power Human resources are heterogeneous Human beings behave in widely different and complicated ways Modern employees are better educated A human being himself determines what he contributes

The Challenges of Human Resources Management Pervasive force Action oriented Individually oriented People oriented Development oriented Integrating mechanism Comprehensive function Auxiliary service Inter-disciplinary function Continuous function

Managing Talent: the new avatar of HR manager Talent Management: new vistas

HRM in India The Dynamics of Personnel/HRM Changing role of HR in view of social factors

External factors Technological factors Economic challenges Political factors Social factors Local and Governmental issues Unions Employers demands Workforce diversity

Internal Factors Mission Policies Organizational culture Organizational structure HR systems

Young Inexperienced

Old Difficult

Impulsive
Inpatient Unethical/ not always ethically conscious Selfish Manipulative

Traditional
Go by the rule book Workaholic Inflexible Prefer safe, steady work environments, less risky activities

Women at work Womens emancipation Growing economic needs Greater equality of sexes Increased literacy rate Suitability for certain soft jobs

Changes in Employee Role and their Values Level of education

Faddism in western management and its implications for Indian Managers

Guidelines for better HRM Develop People Grooming Future Talent Employees Development Build Employee Communities Turn Managers into Coaches

UNIT 2 The Concepts and Functions of HRM

Concepts of HRM

Traditional Personnel Function TPF is an independent function There are several sub-functions under TPF The main task is to respond effectively to demands Main responsibility for their personnel matters The main responsibilities relate to salary and job administration and management of people and their development The attention is on personnel administration and management Personnel system and procedures should be designed to achieve maximum efficiency People in the organization are motivated mainly by salary and rewards

Human Resource Development HRD is a sub-system of a larger system HRD is an organic whole: All the parts are interlinked The main task is to develop enabling capabilities All managers share the responsibility of HR functions The responsibilities relate to HRS, people, systems, and the process of the total organization The major attention is on developing people and their competencies HR systems and procedures should be designed on the basis of process values to reduce human wastage People are primarily motivated by challenges and opportunities for development and creativity

HRM Objectives and Functions HRM Objectives Supporting Functions

Societal Objectives

Legal compliance, Benefits, Union-Management relations

HR planning, Employee relations, Selection, Training and Development, Appraisal, Placement, Assessment Appraisal, Placement, Assessment Training and Development, Appraisal, Placement, Compensation, Assessment

Organizational Objectives

Functional Objectives

Personal Objectives

UNIT 3 Structuring HRM

Evolution of HRM The commodity concept The factor of production concept The paternalistic concept The humanitarian concept The behavioural human resource concept The emerging concept

Importance of HRM Significance for an Enterprise Professional significance Social significance National significance

Scope of HRM The labour or Personnel aspect The welfare aspect The industrial relations aspect

Perspective of HRM Historical perspective on HRM Recent trends Environmental perspective Organizations as Open Systems Buffering Strategies as an Organizational response Strategic perspective on HRM Political perspective on HRM Interpersonal perspective on HRM Transactional scope Transactional representation Transactional process Evaluation perspective on HRM Personal Audits and Utility Analysis

Components of HRM HR Organization HR Planning HR Systems Recruitment management Information management Training management Performance management Reward management Career management Health and safety management Culture management

Human Resource Development : HRD as systems depends upon The work it self which generates a higher degree of responsibility for the employees The individuals personal and professional growth The improved quality output as a result of increased responsibility The organization as an open system

Human Resource Relationship Human Resource Utilisation Human Resource Accounting Human resource Audit

UNIT 4
Job Analysis and Job Design What it takes to do a job

What an individual brings to the job, and

What the gaps (learning and development needs) are Purpose of Job Analysis The focus of job analysis: Positions and Jobs The importance of job analysis

Methods of job analysis Functional job analysis Critical incident technique Job elements approach Barely acceptable Superior Trouble Practical

Position Analysis Questionnaire (PAQ)

Physical abilities requirements approach

Job description and job specification Recruitment and selection Training Job evaluation Performance appraisal Organization planning

Techniques of collecting information for job analysis

Questionnaire Interview Effects of work flow on people Initiation of action

Systems design for better teamwork

Control of red tape

Different work systems Product and functional work systems Labour pools Assembly lines

The current picture The single-job competency approach The multiple job approach

UNIT 5 Human Resource Planning Objective of HRP Ensure optimum utilization of human resources currently employed Assess or forecast future requirements Cope up with changing scenario Attaching with business plans of organization Anticipate redundancies

Provide basis for human resources development (HRD), and

Assist in productivity bargaining

Benefits of HRP
Create reservoir of talent Preparation for future HR needs

Promote employees in a systematic manner

Provide basis for HRD Help in career and succession planning

Need for HRP at Macro level

Employment-unemployment situation Technological changes

Organizational changes
Demographic changes Skill shortages Governmental influences Legislative controls

Impact or pressure groups

Systems concept Lead time

Levels of HRP
National level Sector levels

Industry level
Unit level

Process of HRP
Analyzing organizational plans Human resource demand forecasting

Demand forecast
Manpower gaps Supply forecast

Techniques of HR demand forecast

Managerial judgment Work-study method

Ratio-trend analysis
Mathematical models

Factors affecting HR demand forecasting

Employment trends Replacement needs

Productivity
Absenteeism, and Expansion and growth

Problems in HRP process

Inaccuracy Employee resistance

Uncertainties
Inefficient information system Time and expense

Guidelines for making HRP effective

Tailormade Appropriate time

Adequate organization
Top management support Participation Information system Balanced focus

UNIT 6 Attracting the Talent: Recruitment, Selection, Outsourcing

The process of Recruitment

Preparation for recruitment Physical specifications Mental specifications Emotional and social specifications

Behavioral specifications

Sources of Manpower Internal sources External sources It should have dependencies on: Effect of the policy on the attitude and actions of all employees The level of specialization required of employees The degree of emphasis on participation by employees at all levels The need for and availability of originality and initiative within the organization Acceptance of seniority principle

Methods of Recruitment
Direct methods Schools and Colleges

Employees contact with the public

Manned exhibits Waiting list

Indirect methods

Methods of Recruitment (Contd.)

Third-party methods
Private employment agencies State or public employment agencies Executive search agencies Indoctrination seminars for College Professors Friends and relatives of present employees Trade unions Professional societies

Temporary help agencies

Casual labour sources Deputation

Selection The selection process Initial screening or preliminary interview Application scrutiny Selection of tests Purpose of test

Types of tests
Achievement or intelligence tests Aptitude or potential ability test Personality test Interest test

Achievement or Intelligence Tests Test for measuring job knowledge Work sample tests Aptitude or Potential Ability Tests Mental tests Mechanical aptitude tests Psychomotor or skill tests Personality Tests Objective tests Projective tests Situation tests Interest Tests Limitation of selection tests Precautions in using selection tests

Interview
Types of Interview Informal interview

Formal interview
Planned interview Patterned interview Non-directive interview Depth interview Stress interview Group interview Panel interview

Interview rating
Physical make-up Attainments

Intelligence
Special aptitudes Interests Disposition circumstances

Pseudo-scientific methods of selection

Phrenology Physiognomy

Graphology

Physical examination
Reference checks Final decision

Placement
Induction General orientation by the staff Specific orientation by the job supervisor Follow-up orientation by either the personnel department or the supervisor

Outsourcing
Specialized knowledge Size does matter

Maturity makes it easy

Road map for successful outsourcing Reorient, you must Entrepreneurial culture

UNIT 7
Socialization, Mobility and Separation Individual and the organization: the process of integration Self-image membership Interactions between individual and organization

Never the total person

Never the total organization Status and socialization

Socialization factors in organizational socialization

Influence of subcultures relevance for gender and minority issues Cross-cultural comparisons Importance of initial job socialization The organization sizing up the individual

Matching of individual and organization

People do change organization

Improving the socialization process

The individual perspective realistic career planning

Organizational perspective initial socialization

Concepts of mobility Purpose of mobility To improve organizational effectiveness To maximize employee efficiency To cope with changes in operation To ensure discipline

Promotion
Purpose and advantages of promotion Types of promotion

Multiple chain promotion

Up or out promotion Dry promotion

Promotion programme and procedure Formulation of promotion policy Promotion channels Promotion appraisals Centralise records Bases of promotion Seniority as a basis Merit as a basis Seniority-cum-merit as basis

Promotion practice I India Demotion Causes of demotion Adverse business conditions Incompetency of the employee Technological change Disciplinary measures Demotion policy 1958 (Yoder, Heneman, Turnbull, and Stone)

Transfer Purpose of transfer Types of transfer Productions transfers Replacement transfers Versality transfers Personnel or remedial transfers Shift transfers Transfer Policy

Separations Resignation Compulsory retirement Premature retirement Voluntary retirement Dismissal Suspension Retrenchment Layoff

UNIT 8 Competency Mapping

Competency Approach to Job Analysis Use of Competency Approach in an Organization Benefits of the Competency Approach Competency Mapping Conduct a job analysis by asking incumbents to complete a Position Information Questionnaire (PIQ) Using the results of job analysis, a competency based job description is developed With a competency based job description, mapping the competencies can be done To identify what competencies individuals need additional development or training

Methods of competency mapping Assessment centre Group discussion Positive Task Roles Initiator Information seeker Information giver Opinion seeker Opinion giver Clarifier Summariser Positive Maintenance Roles Social supporter Harmonizer Tension reliever Energiser Compromiser Gatekeeper In tray Interview simulation / Role play Case Studies / analysis exercises

Methods of competency mapping Critical Incident Technique Gathering facts Content analysis Creating feedback Interview Technique Questionnaire Common metric questionnaire (CMQ) Functional Job Analysis Multiple Occupational Systems Analysis Inventory (MOSIAC) USA Occupational Analysis Inventory Position Analysis Questionnaire (PAQ) Work Profiling System (WPS) Psychometric Tests Aptitude Test Achievement Test

UNIT 9 Performance Planning and Review

What is performance? What is Appraisal? Goals of Performance Appraisal Objectives of Performance Appraisal The Performance Appraisal Process Establishment of performance standard Communication of performance expectations Measurement of performance Comparison of Actual performance with standards Corrective action

Benefits of Performance Appraisal For the organization For the appraiser For the appraisee

Performance Appraisal Methods Critical incident method Checklist Graphic rating scale Forced choice method Behaviourally anchored rating scales Group order ranking Individual ranking Paired comparison Management by objective (MBO) 360 degree appraisal

Features of 360 degree appraisal Improved feedback from more sources Team development Personal and organizational performance development Reduced discrimination risk Improved customer service Training needs assessment Benefits of 360 degree appraisal To the individual To the team To the organization

Performance consulting Problems in performance appraisal Leniency error Halo effect Similarity error Low appraiser motivation Central tendency Recency vs primacy effect

Effective Performance Appraisal Behaviourally based measures Ongoing feedback Peer evaluation

UNIT 10
Potential Appraisal, Assessment Centres and Career and Succession Planning Potential Appraisal Indicators of Potential A sense of reality

Imagination
Power of analysis Breadth of vision Persuasiveness

Assessment Centres
Job Analysis Behavioural Classification

Assessment Techniques
Multiple Assessments Simulation Assessor Assessor Training

Recording Behaviour
Reports Data Integration

Use of Assessment Centre

Recruitment and Promotion Early Identification of Personnel

Diagnosis of Training and Development Needs

Organizational Planning

Assessment Centres and Development Centres

Difference between Assessment and Development Centres

One for selection and one for development

Career Planning Career Anchors

Managerial Competence
Functional Competence Security

Creativity
Autonomy and independence Technological Competence

Career Planning Process Analysis of the characteristic of the renewal and incentives Analyze the characteristic of the hopes and aspirations Mechanism for identifying congruence Alternative strategies Reviewing career plans

Succession Planning Superannuating Resignation Promotion Diversification Creation of new position

UNIT 11
HR Measurement and Audit HR Audit

Benefits of HR Audit
Scope of HR Audit Procerement function Development function Compensation function

Maintenance function
Integration function

Audit reports Audit process Benchmarking Internal benchmarking External benchmarking HR Accounting Objective of HR accounting Advantages of HR accounting

Limitations of HR accounting

HRIS
Recruitment information Personnel information

Manpower planning information

Training information Health information system Appraisal information Payroll system Personnel statistics system

Designing HRIS
Preliminary system analysis System design

System engineering
System testing and implementation System monitoring and evaluation

Human Resource Research

Comparative approach Outside authority approach

Statistical approach
Compliance approach MBO approach Research Methods Interviews

Questionnaires
Secondary sources of data

UNIT 12
Human Resource Development System The Development dimensions of the personnel function

Analyzing role
Matching the role and the person Developing the persons in the role

Developing the role for the person

Developing equitability Developing self-renewing capability Coping with collective power

Developing self-renewing capability

Communication and development of culture Downward communication

Diffusion of routine information

Diffusion of procedural information Socialization Job-related information Feedback on individual performance

Employee development

Developing self-renewing capability (Contd)

Upward communication Management control Feedback Problem solving and involvement Horizontal communication Experience sharing Problem solving Coordination External communication Image building Credibility building Influencing

Developing self-renewing capability (Contd)

Organizational culture Strong corporate identity

Developing important values

Building healthy traditions and practices

Principles in designing HRD system

Focus of the system Focus on enabling capabilities

Balancing adaptation and change in the organizational culture

Attention to contextual factors

Building linkages with other functions

Balancing specialization and diffusion of the function

Structure of the system

Establishing the identity of HRD Ensuring respectability for the function

Balancing differentiation and integration

Establishing linkage mechanisms Developing monitoring

Functioning of the system

Building feedback and reinforcing mechanisms Balancing quantitative and qualitative decisions

Balancing internal and external expertise

Planning for the evolution of the HRD Geographical phasing Vertical phasing Functional phasing

Sophisticated phasing
Changing boundaries of HRD

UNIT 13
Training Needs and benefits of training

Organizing training programmes

Performance review reports Potential appraisal Job rotation Continuing education

Methods of training
Analysis of an activity Analysis of problems

Analysis of behaviour
Analysis of an organization Appraisal of performance Training for different employees On-the-job training

Off-the-job or classroom training

Evaluation of training

Retraining
Issues in training The present status of training

Making training a strategic function

Training role Research role Consulting role Change management role Translating business strategy into training terms Working more closely with line managers Towards learning organization

UNIT 14

Mentoring and professional coaching

Conditions for employee development
The individual should be interested in developing himself The individual should know the areas of his potential development The individual should make a clear choice about the direction in which he would like to grow and develop He should be able to identify opportunities for development within and outside the organization He should identify mechanisms of using opportunities and get the support he needs from his superiors and the organization He should make efforts to develop He should take outside help to periodically review his progress A positive emotional and professional climate should be created in the work place for the employee to progress and review himself

The objective of performance coaching

Individual-level review General improvement

Improved performance
Potential development of the employee Feedback to groups or teams

Conditions for effective coaching

General climate of openness and mutuality General helpful and empathic attitude of management

Uninhibited participation by the subordinates in the review process

Dialogic relationship in goal setting and performance review Focus on work-oriented behaviour Focus on work-related problems and difficulties

Avoidance of discussion of salary and other rewards

Unit 15
Building roles and teams

Office (Position)

Role

It is based on power relationship It is on mutuality

Has related privileges Has related obligations

Is usually hierarchical
Is created by others

Is non-hierarchical
Is created by others and role occupants

Is part of the structure Is evaluative

Is part of the dynamics Is descriptive

Role System
Developing roles : role efficacy Dimension 1 : role making
Self-role integration Proactive Creativity Conformation

Dimension 2 : role centering

Centrality Influence Personal growth

Dimension 3 : role linking

Inter-role linkage Helping relationship superordination

Team Development
Awareness Conflict

Cooperation
Productivity Separation

Making team effective

Johari window approach Role negotiation approach

Behaviour modification approach

Simulation approach Action research approach Appreciative enquiry approach

Steps for team building

Projection in the future Linkage with individual goals

Force field analysis

Strengthen positive forces Reducing negative forces monitoring

UNIT 16
Laws Covering Wages, Welfare and Benefits The Payment of Wages Act, 1936

Objective of Act
Applicability Wage payment Deductions of wages Obligation of employer's

Obligation of employees

The minimum Wages Act 1948

Objective of the Act Applicability

Fixing of minimum rates of wages

Registers, notices, abstract and returns Offence and penalties

The Payment of Bonus Act, 1965

Objective of the Act Calculation of bonus

Eligibility of bonus
Amount of bonus Time limit for payment of bonus Claim for bonus Mode of payment

Exemption
Obligations of employers

The equal remuneration Act, 1976 Objective of the Act Equal remuneration Administration Exemption

Statutory Social Security Benefits

UNIT 17
Compensation Strategy, Structure, Composition Compensation Issues

Compensation function
Compensation policies and objectives Compensation administration Compensation determinants Product market Labour market

Compensation survey Compensation structure Job evaluation system Pay Equity Executive compensation Compensation trends

Wage structure in India

Basic Wage Dearness Allowance

Overtime payment
Annual bonus Incentive systems Fringe Benefits

UNIT 18
Reward Management Motivational Aspects

Reward Systems
Motivate employees to perform effectively Motivate employees to join the organization Motivate employees to come to work, and Motivate individuals by indicating their position in the organization structure

Incentives and Rewards

Competence-Related Pay Skill-ased Pay

Team-Based Rewards
Profit Sharing Gain Sharing Stock Option Merit Pay

Employee Ownership
Employee Benefits

Incentives and Rewards Employee Benefits Statutory and voluntary benefits Flexible benefits Trends in employee benefits Less attention to tax avoidance Greater simplification of benefit package More attention to individual needs

Great emphasis on individual choice

A move towards cash rather than benefits in kinds Greater concentration on assessing the cost/effectiveness of total benefits package More attention to communicating the benefits package

UNIT 19
Regulatory Mechanisms in Industrial Relations Statutory Machinery

What is an Industrial dispute

The industrial Dispute Act, 1947 Works Committee Conciliation Officer Board of Conciliation Court of Enquiry Voluntary Arbitration Adjudication Labour courts Industrial Tribunals National tribunals Grievance Settlement Authority Welfare Officer Standing Orders Central and State Industrial Relations Machinery Other Preventive Measures

Voluntary Machinery

Code of Discipline, 1958

Code of conduct Tripartite Bodies Indian Labour Conference Tanding Labour Committee

Industrial Committees, and

Tripartite Committee on International Labour Organization Conventions

Formation of joint consultative machinery

Collective bargaining Workers participation in Management scheme

Mediation and Litigations

Limitations of Litigation Advantages of mediation

Lok Adalats Development of Lok Adalats Lok Adalats as a body to conduct mediation Lok adalats and the Industrial Disputes Act, 1947

UNIT 20

Dealing with Unions and Associations

Formative stages of trade unions Forms of trade unions Classical Neo-classical

Revolutionary
Functions of trade unions Militant or protective or intra-mutual functions

Fraternal or extramural functions

Political functions Social functions

Objective of trade unions

Wages and salaries Working conditions

Discipline
Personnel policies Welfare Employee-employer relation Negotiating machinery

Safeguarding organizational health and the interest of the industry

Role of Trade Unions

Sectional bargainer Class bargainer

Agents of state
Partners in social control Enemies of economic systems Business oriental role Unions as change agent

Classification of trade unions Classification based on ideology Revolutionary unions Reformist or welfare unions Uplift unions Classification based on trade Classification based on agreement Closed shop Union shop Preferential shop Maintenance shop Agency shop Open shop

Theories of trade unionism

Political revolutionary theory of labour movement or Marx and Engles Webbs theory of Industrial Democracy Coles theory of union control of industry Commons environment theory

Mitchells economic protection theory of trade unionism

Simons theory of monopolistic, anti-democratic trade unionism Perlmans theory of the scarcity Conciousness of manual workers Hoxies functional classification of unionism Tannenbaums theory of man vs machine

Growth of trade union movement and membership in India

Early period Modest beginning All India Trade Union Congress Period of splits and mergers

Indian National Trade Union Congress

Other central Unions Present position

Trade Union Act, 1926

Recognition of trade union Election by secret ballot

Check-off method
Verification Rule of thumb

Rights of recognized Unions

Problems confronting unions and measures to strengthen trade union movement in India
Measures to strengthen trade union movement in India

United Labour Front

Efficient Leadership Membership Fees White-colour and managerial trade unions Employers Association

Local Organizations
Regional Organizations Central Organizations

Different EOs in India

AIOE EFI

IOE
SCOPE CIE

UNIT 21
Industrial Democracy Empowerment

Quality Circle
Workers Participation in Management Collective bargaining Works councils Joint management councils and committees

Board representation
Workers ownership of enterprise

Forms of workers participation in management in different countries General meeting

Supervisory board
Board management Works council Evaluation of workers participation in management Measures for effective workers participation in management

Managerial attitude
Union co-operation Meaning participation Workers attitude

UNIT 22
Grievance Handling and Discipline Dissatisfaction, complaint and grievance Forms of grievance Factual Imaginary Disguised Causes of grievance Economic Work environment Supervision Work group Miscellaneous

Aspects of grievance
Organizational aspects Informational aspects

Human aspects
Effects of grievance On production On the employees On the managers

Discovery of grievance
Observation Grievance procedure

Gripe boxes
Open door policy Exit interview Opinion survey

Grievance procedure
Intermediate stage Organizational level

Third-party mediation

Steps in grievance handling

Acknowledgement of dissatisfaction Define the problem

Get the facts

Analyze and decide Follow up

Key factors of a good grievance handling procedure

Fairness
Facilities for representation Procedural steps Promptness Essential pre-requisite of a grievance handling procedure Conformity with statutory procedure Un-ambiguity Simplicity

Promptness
Training Follow up

Discipline
Disciplinary procedure Legal procedure relating to discharge or dismissal (under industrial dispute act, 1947) Sec II A