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DIAGNOSIS & BENCHMARKING

By Sumalatha

Diagnosis Definition Human resource management is a series for decisions that affect the relationship between employees and employers. . it affects many organizations and is intended to influence the effectiveness of employees and employers.

Diagnostic Process Assess human resource conditions Set human resource objectives EFFICIENCY Choose and apply human resource activities Planning Staffing Evaluate results EXTERNAL CONDITIONS Economic conditions Government regulations Unions ORGANIZATIONAL CONDITIONS Nature of the organization Nature of the work EMPLOYEE CONDITIONS Abilities Motivation Interests Efficiency Equity Organization Employee EQUITY Organization Employee Development Employee Union Relations Compensation .

They force to adopt sound human resource policies. including human resource activities.  Union: They are formed to protect the labour rights. technology.Assess Human Resource Conditions EXTERNAL CONDITIONS Economic conditions: It has a direct influence on the operations of the organization. objectives. and culture. Government regulations: Human resource laws and regulations have become increasingly important to employers. financial situation. Motivation and interest . Nature of the work :The difference in the work require designing and choosing different human resource management systems EMPLOYEE CONDITIONS Ability. ORGANIZATIONAL CONDITIONS Nature of the organization: it is made up of strategies.

. Efficient organization maximize output while minimizing input Employee efficiency = labour cost per unit revenue per unit EQUITY Organization: equity refers to the perceived fairness of both the procedures used to make human resource and ultimate decisions themselves. E.g. hiring.Set Human Resource Objectives EFFICIENCY Organization: Efficiency is a comparison between inputs and outputs.: Promotions. layoffs etc.

.Choose and Apply Human Resource Activities  Planning: activities focus on how an organization should move from its current human resource condition to achieve its human resource objectives.  Compensation: includes the rewards and returns for employees expertise and services.  Development: Employee development and training activities are among the most common and costly methods of achieving human resource objective.  Staffing: activities determine the composition of an organizations human resources.

Evaluate Results  Identifying the contributions of sound human resource management requires evaluation of results  Evaluation is driven by the objectives established in two phases that is efficiency and equity .

typically in the same industry or with comparable organizations that are considered to be best in class .BENCHMARKING Definition A comparison with selected performance indicators from different organizations.

 Competitive benchmarking: is conducted against external competitors in the same market  Generic HR benchmarking: involves the comparison of HR process that are the same regardless of industry .Types of Benchmarking  Internal benchmarking: occurs when a firm compares practices in one part of the organization against those in other internal units.

CASE STUDY .

most of the managers have been performing various functions of the bank decided to employ candidates with MBA (Marketing) qualifications as Marketing Executives in 1986. But the top management ignored the opposition of the mangers and employed MBA (Marketing) candidates as Marketing Executives. Thus. with their long experience. MBAs joined the bank in 1987 and assumed the responsibilities of purchasing of deposits. The managers of the bank protested against the management’s decisions saying that they could perform. selling advances and recovery of advances. Most of the employees joined as clerks with matriculation qualification in 1950s and in 1960s became the branch managers and Regional managers by 1988.South Indian Bank South Indian bank was instituted in 1950. the marketing functions more efficiently than MBAs. .

was asked to find out the reasons for the declining performance.South Indian Bank The performance of the bank was poor during 1987 and 1988 especially in areas like deposit mobilization (by 30%) sanctioning of advances (by 40%). The newly employed Marketing Executives felt that the old managers would not accept new ideas proposed by them. besides other department of the bank. Both felt that there were no special interactions between the two groups. . whereas the old managers opined that the Marketing executives. The personnel department. thought very high of themselves and did not allow themselves to share others experience and ideas.

Questions  Do you think that the performance of the Marketing Executives has fallen?  What is the problem in this case ?  What do you recommend to solve the problem? .

Thank you .