You are on page 1of 188

HUMAN RESOURCE

MANAGEMENT

A RE
IV H
V S H
R A
SOU D OR E
, I N
I M C
CH

SOURAV SHIVHARE {CHIMC, INDORE}


Why Human Factor is More Important?
• Japan had emerged as wonder Nation of last century

• 5 ‘M’ Assets

• Akio Morita - Employees are the most valuable part of Co.

• Organisations exist for the people

• HR is most complex and unpredictable in its behavior

• This is the only resource which appreciates in its value with the passage of time.

• Human resources are unique in character and are heterogeneous

SOURAV SHIVHARE {CHIMC, INDORE}


HRM vis-à-vis Culture
The culture of an organisation is made up of traditions, values,
habits and patterns of relationships at work

• Corporate Mission/philosophy and strategic plan gives birth to


culture

• HR Planning defines culture

• Recruitment and selection process locate the barriers of the


culture

• Training & Development helps in instilling the culture

SOURAV SHIVHARE {CHIMC, INDORE}


HRM vis-à-vis Culture ….

• Goal Setting and appraisals make the culture effective

• Reward Management reinforces the culture

• Succession Planning helps in maintaining the

culture

Global Focus … Integrate HR functions with Industrial Relations to


achieve excellence & develop organisational citizenship

SOURAV SHIVHARE {CHIMC, INDORE}


Concept of HRM and Defining
According to NIPM –
HRM is that part of Management which is concerned
with –
people at work and
their relationships within Organisation.
It seeks to bring together people, enabling each to
make his own best contribution to success both as
an individual and as a member of a working group.

SOURAV SHIVHARE {CHIMC, INDORE}


Defining HRM
HRM is –
Planning, Organising, Directing & Controlling
ofProcurement, Development, Compensation,
Integration, Maintenance & Separation Of Human
Resources with the aim that Individual,
Organisational & Social Objectives are
accomplished (Flippo)

SOURAV SHIVHARE {CHIMC, INDORE}


Objectives and scope of HRM
• To provide well trained & well motivated employees
• To utilise skills & knowledge of employees effectively and
efficiently
• To enhance job satisfaction of employees
• To maintain high morale and better human relations
• To provide opportunities for training and advancement
• To develop and maintain a quality of work life
• To establish and maintain productive self-respecting
working relationships
• To satisfy individual needs & group goals
SOURAV SHIVHARE {CHIMC, INDORE}
Features of HRM
• Comprehensive Function
• People-Oriented
• Action Oriented
• Individual Oriented
• Development Oriented
• Pervasive Function
• Continuous Function
SOURAV SHIVHARE {CHIMC, INDORE}
Cont..
• Interdisciplinary
• Nervous system.
• Young discipline
• Future-oriented
• Challenging Function
• Science as well an Art
• Staff function

SOURAV SHIVHARE {CHIMC, INDORE}


HRM as Major System

Administrative
Development Preventive
Sub System Sub System Sub System

SOURAV SHIVHARE {CHIMC, INDORE}


HRM as Major System….

Administrative Sub-System
1. Recruitment

2. Induction

3. Placement

4. Working Conditions

5. Wages & Salary


Administration
SOURAV SHIVHARE {CHIMC, INDORE}
HRM as Major System….
Developmental Sub-System

1. Manpower Planning

2. Performance Appraisal

3. Staff Welfare

4. Training & Development

5. Career Planning

6. Organisational Development
SOURAV SHIVHARE {CHIMC, INDORE}
HRM as Major System….

Preventive Sub-System
1. Grievance Redressal

2. Discipline

3. Industrial Relations

SOURAV SHIVHARE {CHIMC, INDORE}


EVOLOUTION OF HRM:
( Indian Context)

Beginning of 20th Century - Jobbers

1931 - Labour Welfare Officer

After Independence – Personnel Manger

Shifted concern for welfare to higher


efficiency

1970 - HRM

1980 - New Technologies


HRM Challenges & HRD

1990 - Human Values & Productivity

Human Capital
SOURAV SHIVHARE {CHIMC, INDORE}
Personnel to HRM

PERSONNEL HRM
• Part of HRM • Larger System
• Coping Role – Reactive • Proactive
• Maintenance &
Administrative Function
• Plus Developmental
• Routine Function
• Strategic

SOURAV SHIVHARE {CHIMC, INDORE}


Personnel to HRM…

PERSONNEL HRM

• Integrated
• Inverted Orientation
• Treated as part of the system:
• Employees treated as Nuts & Mutual Respect, Trust, Goals,
Bolts which can be replaced Rewards Responsibilities
• Procedures designed to reduce
human wastages
• Procedures designed to
achieve maximum efficiency

SOURAV SHIVHARE {CHIMC, INDORE}


HRM – ASTD MODEL
1. H.R. Planning
2. Personnel Research & Information System
3. Selection & Staffing
4. Training & Development
5. Compensation/Benefits
6. Organisation & Development
7. Organisation/Job Design
8. Employee Assistance
9. Union/Labour Relations
SOURAV SHIVHARE {CHIMC, INDORE}
HRM – ASTD MODEL …..

HR AREAS : OUTPUT

• QWL (Quality of Work Life)


• Productivity
• Readiness for Change

SOURAV SHIVHARE {CHIMC, INDORE}


Functions of HRM

• I. Managerial • II. Operative Functions:


Functions: • a. Procurement
• b. Development
• a. Planning
• c. Compensation
• b. Organizing • d. Integration

• C. Directing • e. Maintenance
• f. Separation
• d. Controlling.

SOURAV SHIVHARE {CHIMC, INDORE}


Roles & Responsibilities of HRM
1. As a Specialist
Facilitator
Should be considered as a source of help
2. As an Information Source
Record Keeper & Researcher
3. As a Change Agent
Policy Announcements
4. As a Controller
Partner in Top Management
5. As a Liaison Man
Cross functional effectiveness
6. As a House Keeper
7. As a Fire-Fighter
Shock Absorber
Trouble Shooter
SOURAV SHIVHARE {CHIMC, INDORE}
Strategic Role of HR
1. Recruiting experienced, talented persons
well in advance from campus & market both
2. Improved planning of assignments
3. Improved analysis & control of HR related
costs
4. Stability & Mobility of workforce employed
5. Organisational Effectiveness
6. Untapped Potential of HR

SOURAV SHIVHARE {CHIMC, INDORE}


Organisation Structure of HR Dept..
Chief Manager, HR

Employ HRD CompenIR Employee Comm


M ment sation welfare on
Plannin OrientatiJob Advisor Welfare Securi
O
g on Evalua ty
Recruit Train Salary Labour Counse Centr
O ment Law al
ing ling Esta.
Placem Apprais Fringe Comm.Dev HR
O
ent al benef. elopment Audit
SOURAV SHIVHARE {CHIMC, INDORE}
HR Deptt. In Line Organisation
Human Resource Manager

Employment Training Wage & Welfare


Officer Salary
Officer Officer Officer

Clerk Clerk Clerk Clerk

Unity of Command:: Every


SOURAVEmployee
SHIVHARE is accountable
{CHIMC, INDORE}to one superior
HR Deptt. In Functional Organisation

Human Resource Manager

Employment Training Wage & Welfare


Officer Salary
Officer Officer Officer

Clerk Clerk Clerk Clerk

Every employee reports to several functional heads. Expert Advice is available;


SOURAV SHIVHARE {CHIMC, INDORE}
Line of Authority not clear. Co-ordination & control hampered.
HR Deptt. In Line & Staff Organisation

Human Resource Manager

Employment Training Wage & Welfare


Officer Salary
Officer Officer Officer
-------

Clerk Clerk Clerk Clerk

Line Relationship ____________


Staff RelationshipSOURAV SHIVHARE {CHIMC, INDORE}
--------------------
HR Deptt. (Divisional Structure)
Human Resource Manager

Human Human Human Human


Resource Resource Resource Resource
Officer Officer Officer Officer

(Northern (Southern (Eastern (Western


Division) Division) Division) Division)

• Performance of divisions can be compared


SOURAV SHIVHARE {CHIMC, INDORE}

Matrix Structure

General Manager

Production Finance Human Resource

Project A
Manager

Project B
Manager

SOURAV SHIVHARE {CHIMC, INDORE}


Recruitment
• What is Recruitment?
• What is Procurement?
• The Difference Between Recruitment and
Selection and Placement.
• Why Recruitment is more important for an
organization?

• How not to recruit employees in the


organization?
• General Factors affecting Recruitment:
SOURAV SHIVHARE {CHIMC, INDORE}
RECRUITMENT
• It is the process of attracting the potential
employees of the organisation.
• It is a positive process
• The purpose is to have right kind of
people, who meet the criteria laid down
in job specification.

SOURAV SHIVHARE {CHIMC, INDORE}


OBJECTIVES OF Recruitment

• To meet the most ideal source of recruitment


• Should be cost effective
• Fair & Accurate information to potential
employees
• Should conform to changing needs of the
organisation.
SOURAV SHIVHARE {CHIMC, INDORE}
Factors affecting Recruitment
• Size of the Orgn.
• Employment conditions around
• Working Conditions
• Salary & Perks offered
• Stage of the Orgn.

SOURAV SHIVHARE {CHIMC, INDORE}


The sources of Recruitment
• INTERNAL • EXTERNAL SOURCES
SOURCES • 1. Press Advertisements
• 2. Educational Institutions
• 1. Transfers
• 3.Placement Agencies
• 2. Promotions • 4.Employment Exchanges
• 5.Labour Contractors
• 6.Unsolicited Applicants
• 7.Recommendations
• 8.Recruitment at Factory gate
SOURAV SHIVHARE {CHIMC, INDORE}
• 9. Online
Techniques of Recruitment
1. Direct: Employee Contacts, Manned Exhibits,
Waiting Lists, Scouting (Traveling recruiters)
2. Indirect: Advertisement in Newspapers,
journals, radio, television: When recruiters want
to reach large target group
3. Third Party: Various recruitment agencies,
employment exchanges, trade unions, labour
contractors.
4 Internet: 25% of Net users search for jobs on
Internet
SOURAV SHIVHARE {CHIMC, INDORE}
Recruitment Process
• Steps in Recruitment Process:
• 1. Requisitions for recruitment from other department
• 2. Locating and Developing the sources of Required number
and type of employees
• 3. Identifying the prospective employees with required
characteristics
• 4. Communicating the information about the organization, the
job and the terms of conditions of service.
• 5. Encourage the identified candidates to apply for jobs
In the organization.
• 6. Evaluating the effectiveness of recruitment process.

SOURAV SHIVHARE {CHIMC, INDORE}


What is Selection?
• Selection is the process of choosing the most suitable
persons out of all the applicants.
• Selection is a process of matching the qualifications of
applicants with the job requirements.
• It is the process of weeding out unsuitable candidates
and finally identify the most suitable candidate.
• The purpose of Selection is to pick up the right
person for every job.
• Selection is negative process as it rejects a large
number of unsuitable applicants from the pool.
SOURAV SHIVHARE {CHIMC, INDORE}
Selection Process…
• 1. Initial Screening
• 2. Application Blank
• 3. Selection Test
• 4. Employment Interview
• 5.Medical Examination
• 6.Reference Checks
• 7. Final Approval
SOURAV SHIVHARE {CHIMC, INDORE}
Application Blank

1. Identifying Information
2. Personal Information
3. Physical Characteristics
4. Family Background
5. Education: Academic, Technical, Professional
6. Experience
7. References
8. Miscellaneous – Extra Curricular, hobbies, membership of
professional bodies etc.

SOURAV SHIVHARE {CHIMC, INDORE}


Methods of Selection
• (a) Tests:
• 3. Personality Tests:
• 1. Aptitude Tests:
– Objective test
– Mental or Intelligence test
– Projective test
– Mechanical test
– Situation test
• 2. Achievement Tests:
• 4. Interest Tests:
- Job Knowledge test
• Continued…
- Work sample test

SOURAV SHIVHARE {CHIMC, INDORE}


Methods of Selection (continued)
(b) Interviews
1. Informal Interview
2. Formal Interview
3. Structured Interview
4. Non-Directed or Unstructured Interview
5. Depth Interview
6. Group Interview
7. Stress Interview
8. Panel or Board Interview
SOURAV SHIVHARE {CHIMC, INDORE}
Induction/Orientation
• Definition: “Orientation or induction
is the process of receiving and
welcoming an employee when he first
joins a company and giving in the
basic information he needs to settle
down quickly and happily and start
work”.

SOURAV SHIVHARE {CHIMC, INDORE}


Objectives of an Orientation/Induction
program
• To help the new comer to overcome his shyness
• To build new employee’s confidence
• To develop the new entrants a sense of belonging and
loyalty
• To foster a close and cordial relationship…
• To prevent false impression and negative attitude of the
new employees
• To give the new comers necessary information like
canteen, locker room. Rest periods and leave rules etc…
SOURAV SHIVHARE {CHIMC, INDORE}
Advantages of an Orientation/Induction
program
• It helps to build two way communication
• It facilitates informal relations and team work
• Induction is helpful in supplying information
about the organisation, job, and welfare of
employees
• Proper Induction will reduce employees
grievances, absenteeism and labour turnover
• Induction helps to develop good public relations
and improve the overall morale of employees
• An Induction programme proves that the
company is taking a sincere interest in getting
him off to a good start
SOURAV SHIVHARE {CHIMC, INDORE}
Contents of an Induction programme:

• Brief history and operations of the company.


• Products and services of the company.
• The company’s organization structure.
• Location of departments and employee facilities.
• Policies and procedures of the company.
• Rules, regulations and daily work routines.
• Grievance procedures.
• SOURAV SHIVHARE {CHIMC, INDORE}
Contents of an Induction programme:……….

• Safety measures
• Standing orders and disciplinary procedures
• Terms and conditions of service including wages,
working hours, over time, holidays etc.
• Suggestion schemes
• Benefits and services for employees.
• Opportunities for training
• Career Path, Promotion, Transfer etc.
SOURAV SHIVHARE {CHIMC, INDORE}
Induction Program:

3 STEPS:
1. General Orientation
2. Specific Orientation
3. Follow up Orientation

SOURAV SHIVHARE {CHIMC, INDORE}


Placement
It is the process of assigning a specific job to each
of selected candidates
Personality – job fit
Proper placement helps to :
• Improve Morale
• Reduce turnover
• Reduce Absenteeism
• Job Satisfaction
• Psychological adjustment
SOURAV SHIVHARE {CHIMC, INDORE}
Socialisation

It is the process of adaptation.


It is the process by which new employees learn and
inculcate norms and values of an organisation
Induction is the part of Socialisation
Induction is confined to new recruits, whereas
Socialisation also covers cases of Transfers and
Promotion

SOURAV SHIVHARE {CHIMC, INDORE}


Human Resource Policies
Essentials of sound HR Policy :
1. In writing
2. Clarity
3. Contributing to Organisational Objectives
4. Stable & Long Lasting
5. Flexible
6. Interest of all
7. Just, fair & equitable
8. Sense of Security
9. Delegation of Authority
10. Teamwork & Loyalty
11. Prompt Decision Making
SOURAV SHIVHARE {CHIMC, INDORE}
Human Resource Policies
TYPES:
Source
1. Originated 2.Appealed 3.Imposed
Scope
1. General 2. Specific
Form
1. Written 2. Implied

SOURAV SHIVHARE {CHIMC, INDORE}


Human Resource Policies

FORMULATION :
1. Need Identification
2. Collecting Information
3. Examining
4. Approval
5. Communicating
6. Evaluating
SOURAV SHIVHARE {CHIMC, INDORE}
PROMOTION

• Advancement to higher post


• Upward Movement in hierarchy
• More responsibilities
• Higher Status
• Better Salary
• DRY promotion
SOURAV SHIVHARE {CHIMC, INDORE}
PROMOTION POLICY
• Every Organisation should have well
established Promotion Policy.
• In writing and communicated to all
• Uniform in all the Departments. Ratio of
Internal promotion & external promotion should
be the same
• Due weightage to seniority, merit & future
potential. SOURAV SHIVHARE {CHIMC, INDORE}
PROMOTION POLICY
• Fixation of Responsibility Centre to take
decisions on promotions.
• Provision for appeal and review
• Counseling to rejected candidates
• Fair; impartial
• Consistent
SOURAV SHIVHARE {CHIMC, INDORE}
BASES OF PROMOTION

• Seniority
• Merit
• Merit-cum-seniority

SOURAV SHIVHARE {CHIMC, INDORE}


Transfer
A transfer refers to a horizontal or lateral
movement of an employee from one job to another
in the same organization without any significant
changes in status and pay.

It has been defined as “ lateral shift causing movement of


individuals from one position to another usually without
involving any marked change in duties, responsibilities,
skills needed or compensation”

SOURAV SHIVHARE {CHIMC, INDORE}


Need and purpose of Transfers
• 1. To meet organizational needs
• 2. To satisfy employee Needs
• 3. To better utilize Employees
• 4. To make the Employee More versatile
• 5. To adjust the work force
• 6. To Punish Employees

SOURAV SHIVHARE {CHIMC, INDORE}


Types of Transfers
• 1. Production Transfer
• 2. Versatility Transfer
• 4. Remedial Transfer
• 5. Shift Transfer

SOURAV SHIVHARE {CHIMC, INDORE}


Demotion
• Demotion implies the assignment of an
employee to a job of lower rank with lower
pay. It refers to downward movement of an
employee in the organizational hierarchy with
lower status and lower salary.
• It is downgrading process and a serious type
of Punishment, hence it should be used
tactfully and only when it is absolutely
necessary.
SOURAV SHIVHARE {CHIMC, INDORE}
Need for Demotion:
Why and When
• 1. Adverse Business Conditions
• 2. Incompetence
• 3. Technological Change
• 4. Disciplinary Measure.
SOURAV SHIVHARE {CHIMC, INDORE}
HUMAN RESOURCE PLANNING

ASSIGNMENT:
What do you understand by HR
Planning?
Discuss the various steps involved in
effective HR Planning.

SOURAV SHIVHARE {CHIMC, INDORE}


HUMAN RESOURCE PLANNING
• Definition:
1. Comprehensive Definition:
It is the process by which management
determines how an organisation should
move from its current manpower position to
its desired manpower position. Through it,
management strives to have the right
number and the right kind of people at the
right places, at the right time, doing things
which result in both the organisation, and
the individual receiving, maximum long-
range benefit”
2. HRP is concerned with the flow of people
into, through & out of an organisation.
SOURAV SHIVHARE {CHIMC, INDORE}
Objectives of HRP
• To ensure optimum • To estimate cost of HR and
use of existing HR Housing needs of
• To forecast future
Employees
requirements for HR • To meet the needs of
• To provide control Expansion and
measures Diversification programmes
• To link HRP with • To assess shortage and
Organisational surplus of HR
Planning
• To determine levels of
Recruitment and
Training SOURAV SHIVHARE {CHIMC, INDORE}
Need and Importance of HRP
• To carry on its work and to achieve • HRP is useful in
its objectives anticipating Cost of HR
which facilitates budgeting
• HRP identifies gaps easier
• There is need to replace • HRP facilitates Career and
employees succession planning
• HRP facilitates expansion and • HRP helps in planning for
growth physical facilities like
• HRP helpful in effective utilization canteen staff quarters etc
of HR and Technology

SOURAV SHIVHARE {CHIMC, INDORE}


Why HRP gained so much
focus in recent times…
• Employment situation • Lead time
• Technological Changes
• Hiring costs
• Organizational Changes
• Increased Mobility
• Demographic Changes
• Shortage of Skills
• Legislative Controls
• Pressure Groups
• Systems Concepts
SOURAV SHIVHARE {CHIMC, INDORE}
Process of HRP
• 1. Analyzing Organizational Plans
• 2. Forecasting Demand for HR
• 3. Forecasting supply of HR
• 4. Estimating Manpower Gaps
• 5. Action Planning
• 6. Monitoring and Control
SOURAV SHIVHARE {CHIMC, INDORE}
Process of HRP
I. Collect Information:
(A) From External Environment:
1. Economy – General & Specific
2. Technology
3. Competition
4. Labour Market
5. Demographic & Social Trends
6. Govt. Regulations
(B) From Inside the Organization:
1. Strategy
2. Business Plans
3. Current HR
4. RateSOURAV
of Turnover & Mobility
SHIVHARE {CHIMC, INDORE}
Process of HRP …..
II. Forecast Demand for Human Resources:
(A) Short & Long Run
(B) Aggregate or Individual Positions
III. Forecast Supply of Human Resources:
(A) Internal Supply
(B) External Supply
IV. Plan & Conduct Needed Programs
(A) Increase or Reduce Work Force Size
(B) Change Skill Mix – Composition
(C) Develop Managerial Succession Plan
(D) Develop Career Plans
V. Feedback on Planning Process
Was the Forecast accurate?
Did the programs meet the needs?

SOURAV SHIVHARE {CHIMC, INDORE}


Job Design
• It is the process of deciding contents of a task in terms of duties &
responsibilities

• Methods/techniques to be used in carrying out task


Job Design integrates –
Work Content
Rewards
Qualifications required

• Employee Needs
Organisation Needs

SOURAV SHIVHARE {CHIMC, INDORE}


Job Design …..
Job Characterstics :
1. Skill Variety
2. Task Identity
3. Task Significance
4. Autonomy
5. Feedback
SOURAV SHIVHARE {CHIMC, INDORE}
Job Design ……

Techniques
Of Job Design

Job Rotation Job Enlargement Job Enrichment

SOURAV SHIVHARE {CHIMC, INDORE}


1. Job Rotation
Shifting from one job to another.
Level does not change
Benefits: Individual
• Broadens the knowledge & skills.
• Variety of work
• Improves self image
Negative: Not much impact on employee enthusiasm and efficiency

SOURAV SHIVHARE {CHIMC, INDORE}


2.. Job Enlargement:

• Expanding the Number of Tasks or


Duties
• Horizontal expansion
• One set of task is added to another
• It is resisted by employees

SOURAV SHIVHARE {CHIMC, INDORE}


3. Job Enrichment
• Vertical expansion
• More decision taking
• Empowerment
Positive:
Increased motivation
Job satisfaction
Reduced absenteeism
Self esteem, Intrinsic reward
Negative:
If there is no urge of employee to take more responsibility
• If employee is lazy; desired outcome will not be there
• Increased cost of implementation
• It is intrinsic reward, but must be supported by extrinsic reward

SOURAV SHIVHARE {CHIMC, INDORE}


Assignments
• 1.What are the challenges of HR Executives in
the present day business scenario?
• 2. State essential qualities of Successful HR Manager?
• 3. Draw an organizational chart of an MNC known to
you and state whether HR function line or Staff
function.

SOURAV SHIVHARE {CHIMC, INDORE}


Further Readings

• 1. Human Resource Management –


Dr. C.B. Gupta – Sultan Chand & Sons Pub.
• 2. Human Resource Management – S.S.
Khanka – S. Chand Pub.
• Personnel Management & Industrial Relations
– P.C. Tripathi Himalaya Pub.
SOURAV SHIVHARE {CHIMC, INDORE}
Job Analysis
• Job analysis is a formal and detailed study of
jobs
• It refers to a scientific and systematic analysis
of a job in order to obtain all pertinent facts
about the job
• It is essentially a process of collecting and
analyzing all pertinent data relating to a job

SOURAV SHIVHARE {CHIMC, INDORE}


Objectives of Job Analysis
• Job design
• Work Standards
• Recruitment
• Selection
• Training
• Performance appraisal
• Job evaluation
• Safety SOURAV SHIVHARE {CHIMC, INDORE}
Benefits of Job Analysis
• 1. Human Resource • 7. Career Path
Planning planning
• 2. Recruitment and • 8. Job Design
Selection
• 4. Placement and
• 9. Job Evaluation
Orientation
• 10 Labour Relation
• 5. Training and
Development • 11. Employee
Counselling
• 6. Performance Appraisal
• 12. Health and Safety

SOURAV SHIVHARE {CHIMC, INDORE}


The process of Job Analysis
• 1. Organisational • 5. Understand Job
Analysis Design
• 2. Organising Job • 6. Collection of
Analysis Programme Data
• 3. Deciding the uses • 7. Developing a Job
of Job Analysis Description
Information
• 8. Preparing a Job
• 4. Selecting
Representative Jobs Specification
for analysis
SOURAV SHIVHARE {CHIMC, INDORE}
Techniques of Job Analysis
• 1. Job Performance
• 2. Personal Observation
• 3. Interview
• 4. Questionnaire
• 5. Critical Incidents
• 6. Log Records

SOURAV SHIVHARE {CHIMC, INDORE}


Contents of Job Description

It is an organised, factual statement of the duties &


responsibilities of a specific Job.
It tells what is to be done, how it is done & why
• Job Identification
• Job Summary
• Job Duties
• Supervision
• Relationship with other jobs
• Machine, Tools & Equipments
• SOURAV SHIVHARE {CHIMC, INDORE}
Working Conditions
Contents of Job Specification

It is a statement of minimum acceptable human qualities


necessary to perform a job. It is an important tool
in the selection process & evaluation.
• Educational Requirement
• Experience
• Specific knowledge/Skill Requirement
• Personality Requirement
• Responsibility
SOURAV SHIVHARE {CHIMC, INDORE}
Difference between Job Description and
Job Specification

• Job Description is a • Job specification is a


functional description of statement of the minimum
what the job entails. And acceptable human qualities
define the purpose and required for the proper
scope of a job. It is a performance of a job.
written record it contains
title, location, duties, • It includes physical,
responsibilities, working mental, social,
conditions, hazards and psychological and
relationship with other jobs. behavioral characteristics
of a person

SOURAV SHIVHARE {CHIMC, INDORE}


ASSIGNMENT

Design an attractive advertisement


clipping -
for the position, you want to achieve
in life
(Both Job Description, Job
Specification)

SOURAV SHIVHARE {CHIMC, INDORE}


Job Evaluation
• According to BIM, Job evaluation is “the
process of analysis and assessment of jobs
to ascertain reliably their relative worth
using the assessment as the basis for a
balanced wage structure”
• Job evaluation begins with job analysis and
ends up with the classification of jobs
according to their worth. A job cannot be
evaluated unless and until it is analyzed.
SOURAV SHIVHARE {CHIMC, INDORE}
Objectives of Job evaluation
• 1. To Determine equitable wage differentials between different jobs in the
organization
• 2. To eliminate wage inequities
• 3.To develop a consistent wage policy
• 4. To provide a framework for periodic review and revision of wages
• 5.To provide a basis for wage negotiations
• 6. To enable management to gauge and control the payroll costs
• 7. To minimize wage descriptions on the basis of age, sex, caste, region,
religion , creed etc

SOURAV SHIVHARE {CHIMC, INDORE}


Methods of Job Evaluation
• Job Evaluation can be classified in to two categories
• 1. Non-quantitative methods:
– a. Ranking or Job Comparison
– b. Grading or Job Classification
• 2. Quantitative methods:
– a. Point Rating
– B. Factor Comparison

SOURAV SHIVHARE {CHIMC, INDORE}


Job Evaluation
CONCLUDING POINTS:
1. Job Evaluation is a systematic method that
gives accurate & equitable results.
2. Regional & Environmental Factors should be
taken into consideration.
3. J.E. is the largest area, where differences arise.
4. Need of acceptance and understanding on the
part of Managers & Union Members/employees
5. Constant check of job descriptions and review is
required.
6. Grievance Committee should be set up to deal
with Job Evaluation & Wage Structure
SOURAV SHIVHARE {CHIMC, INDORE}
grievances.
Employer Investment on People
• A country can develop only when its human
resources are developed through health,
nutrition, education, training and research. At
the Organisational level, employee training
and executive development are main areas of
human resource development.
• The subtle differences between Training,
Development and Education
SOURAV SHIVHARE {CHIMC, INDORE}
Why Training is needed?
• To familiarize the employee with the company’s culture
• To increase the employee’s quantity and quality of output
• To enable the employee to do new jobs and prevent his old
skills become obsolete
• To prepare the employee for promotion to higher jobs
• To reduce supervision, wastage and accidents
• To build second line workers

SOURAV SHIVHARE {CHIMC, INDORE}


Importance of Training
• 1. Higher productivity
• 2. Better quality of work
• 3. Less learning period
• 4. Cost Reduction
• 5. Reduced supervision
• 6. Low accident rate
• 7. High morale
• 8. Personal Growth
SOURAV SHIVHARE {CHIMC, INDORE}
Benefits of Training
• 1. Self Confidence
• 2. Higher Earnings
• 3. Safety
• 4. Adaptability
• 5. Promotion
• 6. New Skills

SOURAV SHIVHARE {CHIMC, INDORE}


Determining Training Needs
Gap between Existing & Required Competencies
1. Organisational Analysis
a) Analysis of Objectives
b) Resource Utilization
c) Organisation Climate Analysis
2. Environment Scanning
3. Individual Need Analysis
4. Views from Top Management

SOURAV SHIVHARE {CHIMC, INDORE}


Management Development Prog.
• One Position to another vertically
• Induction at the time of promotion/probation
• Developing Managers for handling problems due to
increased business, size & complexity of
organisation, increased responsibility, decision
taking, risk taking
• To understand problems of Ecology (Pollution)
Ergonomics (Working Environment)
Anthropology
• HR Problems, Managing IR Problems
SOURAV SHIVHARE {CHIMC, INDORE}
• Broaden the outlook
TYPES OF TRAINING

1. Orientation Training
2. Job Training
3. Safety Training
4. Promotional Training
5. Refresher Training
6. Remedial Training

SOURAV SHIVHARE {CHIMC, INDORE}


Training & Mgmt. Dev. Program

• TRAINING • Mgmt. Dev. Program

1 Operating Level 1. Top & Middle


Management Level
2. Long Term Process
2. Short Term Process
3. Conceptual & Functional
3. Technical Knowledge Knowledge
4. Existing Job – Reactive 4. Future Needs – Proactive
5. One Shot Affair 5. Continuous Process
6. Specific job related 6. Overall perspective
Attitudinal
Total Personality

SOURAV SHIVHARE {CHIMC, INDORE}


Methods of Training
• ON-THE-JOB • OFF-THE-JOB
1. OJT 1. Lectures
2. Demonstration & 2. Conference
Examples
3. Seminar or Team
3. Apprenticeship Discussion
4. Case Discussion
5. Role Playing
6. Vestibule Training

SOURAV SHIVHARE {CHIMC, INDORE}


Management Development Programs
• ON-THE-JOB • OFF-THE-JOB
1. Case Method
1. Coaching
2. Group discussion
2. Understudy 3. Management Games
3. Project Assignment 4. In-Basket Exercise
5. Sensitivity Training
4. Junior Board of
Management 6. Transaction Analysis
7. Lectures
8. Simulation
9. Conference
10. Seminar or Team Discussion

SOURAV SHIVHARE {CHIMC, INDORE}


Designing a Training Programme
Commitment of Top Management to
employee training.

Training Policy:
• Company’s intention
• To guide the design & implementation
• To identify the critical areas
• To provide appropriate opportunities
SOURAV SHIVHARE {CHIMC, INDORE}
Designing a Training Programme

A sound Trg. Policy needs to address:

• The results expected to be achieved


• The responsibility for trg. Function
• The priorities for Trg
• The type of Training required
• The time and place of training
• The payment to trainees
• The outside agencies to be associated
SOURAV SHIVHARE {CHIMC, INDORE}
Designing a Training Programme
1. Responsibility for Training:
To be shared amongst Deptts.
(a) Top Management
(b) HRD
© The Line Supervisor
(d) The employees
2. Selecting & Motivating the Target
Group:
3. Preparing the Trainers
SOURAV SHIVHARE {CHIMC, INDORE}
Designing a Training Programme
4. Developing Training Package
Content
Appropriate Method
Time Period
Budget
Detailed Syllabus
Support Material; Aids
5. Presentation
Trainer tells about why part,
Procedure
Repetition by trainee
6. Performance Tryout
7 Follow up SOURAV SHIVHARE {CHIMC, INDORE}
Steps in Training Programme
• 1. Identifying Training Needs- Present
Performance – Desired Performance
(Accepted Level of Performance)
• 2. Setting Training Objectives and Policy
• 3.Designing Training Programme
• 4. Conducting the Training
• 5. Follow up and Evaluation
SOURAV SHIVHARE {CHIMC, INDORE}
Evaluation of Training
• Evaluation Criteria:
According to Hamblin -
(i) Reactions
(ii) Learning
(iii) Behavior
(iv) Results
• Methods of Evaluation:
1) Opinion & Judgments of trainers, superiors & Peers
2) Evaluation Form by Trainees
3) Questionnaire
4) Oral & Written Tests
5) Structured Interviews with trainees
SOURAV SHIVHARE {CHIMC, INDORE}
Evaluation of Training

• 6. Comparing Trainees Performance – Before & After


Training
• 7. Studying profiles and career development charts of
trainees
• 8. Measuring levels of productivity, wastage, costs,
absenteeism and employee turnover after training
• 9. Trainees comments and reactions during the training
period
• 10. Cost benefitSOURAV
analysis of the
SHIVHARE training
{CHIMC, INDORE} programme.
Evaluation of Training
1. Pre-Training/Post-Training Questionnaire
2. Feedback from participants and their suggestions
3. Feedback from Supervisors after 6 months
4. Feedback from Participants after 6 months
5. Third Party Evaluation
6. Corporate Overall productivity/Organisational
Effectiveness
SOURAV SHIVHARE {CHIMC, INDORE}
Principles of Training
1. Clear Objectives
2. Training Policy
3. Motivation
4. Reinforcement
5. Organised Material
6. Learning Periods
7. Preparing the Instructors
8. Feedback
9. Practice
10. Appropriate Techniques
SOURAV SHIVHARE {CHIMC, INDORE}
Assignments
• 1. State essential qualities of Successful Recruitment
Advertisement. And also state how will you spell out
Job specification and job description briefly in the AD
itself.
2. How will you carry out training need analysis for a
medium sized organization?
3. If you are HR Executive of an MNC, How will you
retain employees in your organization?

SOURAV SHIVHARE {CHIMC, INDORE}


Separations
• Separation of an employee takes place when his
service agreement with the organisation come to an
end. It may occur due to resignation, death,
dismissal and layoff. Following are various forms of
separations.
• Retirement
• Resignation
• Retrenchment
• Dismissal
• Lay off
SOURAV SHIVHARE {CHIMC, INDORE}
Turnover
• Internal Mobility: When one person shifts from
one place to another in the same organisation

• Labour Turnover: When a person moves from


one Organisation to another

• Migration: When a person or a group of people


leave one region & settle in another region.

SOURAV SHIVHARE {CHIMC, INDORE}


Reasons for Labour Turnover
• Voluntary Retirement
• Deaths
• Retirement
• Disability, Dismissal or Resignation
• Lay-off & Retrenchment
• Friction with superior staff
• Dissatisfaction with working conditions
• Low Remuneration
• Lack of Promotional Avenues
• Expansion with modernisation
• Housing, commutation problem etc.
SOURAV SHIVHARE {CHIMC, INDORE}
• Seasonal Nature of Industries
Higher Rate of Turnover :
Consequences -
Turnover is very high, where HR Policies are
not properly planned.
1. Loss in production & quality of product
2. Low Morale of employees
3. Increased cost of recruitment, selection &
training
4. Reduces commitment of workers
5. Bad Image of the Organisation
SOURAV SHIVHARE {CHIMC, INDORE}
Separation …. Contd.

Retirement

Compulsory Premature Voluntary

SOURAV SHIVHARE {CHIMC, INDORE}


Voluntary Retirement
• When VRS can take place ?
• Golden Handshake
• Time saving method of trimming excess staff
• Response to VRS is mixed
• Good Responses:
Hindustan Ciba Geigy, Glaxo India, Siemens
TISCO – earmarked 100 crores; Staff cut: 68,000
to 55,000
• Total Failure in HLL
• BHEL – Lukewarm Response
• Banks:

SOURAV SHIVHARE {CHIMC, INDORE}


VRS in SAIL
• Most Successful
• It shed 18000 workers
• STEPS:

Minimum Age Limit


Line Managers to identify VRS candidates
Attractive compensation plan
Secured co-operation from Union
SOURAV SHIVHARE {CHIMC, INDORE}
Lay - Off
• Means temporary separation of an employee from the pay-roll of
organisation.

• Lay off may be for a definite period or indefinite period also.

• The relationship between employer and employee does not come


to an end but is merely suspended during the period of lay-off.

• REASONS for Lay-off: Sect.2(kkk) of Ind. Dispute Act,47:


1. Shortage of coal, power or raw materials
2. Accumulation of stock
3. Break-down of machinery or any other reason

SOURAV SHIVHARE {CHIMC, INDORE}


Lay – Off ….
• According to Section 25 (c) –
A laid-off worker is entitled to compensation equal to 50% of
Basic + DA during laid-off period. Following conditions need
to be satisfied :
1. He should not be a Badli or Casual Worker (Daily Wages)
2. His name must be on pay-roll
3. Must have completed > I year of continuous service
4. He is required to present at least once in a day.
(No compensation during strike or slow-down)

SOURAV SHIVHARE {CHIMC, INDORE}


Retrenchment
Permanent termination of an employee for economic
reasons. An employee should be retrenched without
humiliation and ill feeling
Conditions: (Ind. Dispute Act 1947)
• One Month notice in writing indicating reasons for
retrenchment
• The worker employed last must be terminated first
• Provision for preference in future employment to
retrenched worker.
• If workers are > 100, three months notice is required.

SOURAV SHIVHARE {CHIMC, INDORE}


Discharge (or Dismissal)
It is terminating the services of an employee by way of
punishment for misconduct or unsatisfactory performance.
Reasons for Discharge:
1. Excessive Absenteeism
2. False statement of qualification at the time of employment
3. Theft of Co.’s property
4. Serious Misconduct : It includes –
• Willful violation of rules and regulations
• Indiscipline
• Insubordination
• Dishonesty

SOURAV SHIVHARE {CHIMC, INDORE}


Discharge (or Dismissal)….
• Discharge is a drastic step..It should be
resorted with great care.
• It should be supported by a just and
sufficient cause
• Should be resorted as a last step
• Employee must be given a chance to
explain his conduct
• Principle of Natural Justice should be
followed i.e. punishment should not be out
or proportion to the offence.
SOURAV SHIVHARE {CHIMC, INDORE}
Wage and Salary Administration
(WASA)
• Objectives of WASA:
• 1. To establish a fair and equitable remuneration
• 2. To attract competent personnel
• 3. To retain the present employees
• 4. To improve productivity
• 5. To control Costs
• 6. To improve union management relations
• 7. To improve the public image of the company
SOURAV SHIVHARE {CHIMC, INDORE}
Essentials of sound wage
and Salary structure
• 1. Internal Equity
• 2.External Competitiveness
• 3. Built in incentive
• 4. Link with productivity
• 5. Maintain Real Wages
• 6. Increments
SOURAV SHIVHARE {CHIMC, INDORE}
General and Individual
• Individual Factors
• General Factors
Factors affecting Wages
• 1. Demand for and Supply• 1. Employee’s Age and work
of labour Experience
• 2. Ability to pay • 2. Educational Qualification
• 3. Labour Unions • 3. Promotion possibilities
• 4. Cost of Living • 4.Hazards involved in the job
• 5. Prevailing wage rates • 5. Stability of Employment
• 6. Job Requirements • 6.Demand for the product
• 7. Productivity • 7.Industry’s role in the economy
• 8. State Regulation • 8.Potentials of an employee

SOURAV SHIVHARE {CHIMC, INDORE}


Methods of Wage Payment

• 1. Time Wage system


• 2. Piece Wage system

SOURAV SHIVHARE {CHIMC, INDORE}


Comparison betn. Time Wage & Piece Wage System

Basis of Time Wage Piece Wage


Comparison System System
1. Basis of Time spent on job No. of Units
Payment produced
2. Nature of Minim. Payment toNo Guarantee of
Payment every worker Min. Payment
3. Link with Wages not directly Wages directly
Productivity linked linked
4. Quality of work High Low
5. Cost of Low High
Maintenance
SOURAV SHIVHARE {CHIMC, INDORE}
Comparison betn. Time Wage & Piece Wage System

Basis of Time Wage Piece Wage


Comparison System System
6. Need for close High Low
supervision

7. Attitude of Trade Unions Trade Unions


Trade Union support it dislike it

SOURAV SHIVHARE {CHIMC, INDORE}


Balance or Debt Method
This method is a combination of Time &
Piece System. The Worker is
guaranteed a Time Rate with an
alternative Piece Rate.
If the wages calculated at piece wages
exceed the time wages, the worker
gets CREDIT; On the other hand, if
time wages exceed piece wages, the
worker is paid time wages and the
deficit is carried forward as DEBIT to
be reconserved in future
SOURAV SHIVHARE {CHIMC, INDORE}
Balance or Debt Method
E.g.: Time Rate – Rs.250 per week
Piece Rate – Rs. 2 per unit
The wages of a worker, who produces 150,
100, 125 units respectively in 3 weeks will be

Week calculated
Piece Timeas follows:
Credit Debit Balance
wage Wage (Rs.) (Rs.) (Rs.)

First 300 (150 250 50 Nil 50


x2)

Second 200 (100 250 - 50 Nil


x 2)

Third 250 (125 250 Nil Nil Nil


x 2) SOURAV SHIVHARE {CHIMC, INDORE}
Process of Wage Determination
• Job Analysis
• Job Evaluation
• Wage Survey
• Wage Structure
• Wage Administration Rules
• Employee Appraisal
SOURAV SHIVHARE {CHIMC, INDORE}
Assignments
• 1.What are the Precautions a manager should have
while go for Demotion of an employee?
• 2. Determining Wage structure is a cumbersome process
and it requires lot more knowledge and thinking- discuss
• 3. If you are an owner of the production unit of a retail
product which method would you adopt for payment of
wages?

SOURAV SHIVHARE {CHIMC, INDORE}


Industrial Relations
• Industrial Relations are exercises in organizational
relations between functional interest groups.
• According to ILO, IR comprise relationships
between the State on the one hand and the
employers’ and organizations on the other and the
occupational organizations themselves.
• It means Collective relationship between
management, employees and government in any
industrial or non-industrial organization
SOURAV SHIVHARE {CHIMC, INDORE}
Objectives and Importance of IR
• To Develop and maintain harmonious relationship
between management and labour
• To safeguard the interests of labour
• To establish and maintain industrial Democracy
• To avoid all form of industrial conflict so as to ensure
industrial peace
• To raise productivity and reduce high labour turnover
• To bring about Government control over such industrial
units
• To ensure a healthy and balanced social order through
recognition of human rights by way of trade unionism
SOURAV SHIVHARE {CHIMC, INDORE}
Causes and Effects of
poor Industrial Relations
• Economic Causes • Multiplier Effects
• Organizational Causes • Fall in normal Tempo
• Psychological Causes
• Resistance to Change
• Social Causes
• Frustration and Social
• Political Causes cost

SOURAV SHIVHARE {CHIMC, INDORE}


Remedies to Improve
Industrial Relations
• General Guidelines:
• 1. Sound personnel polices
• 2.Constructive Attitudes
• 3. Collective Bargaining
• 4. Participative Management
• 5. Responsible Unions
• 6. Employee Welfare
• 7. Effective Grievance Procedure
SOURAV SHIVHARE {CHIMC, INDORE}
Remedies to Improve
Industrial Relations

• Specific Guidelines:
• Both Management and Union should Develop trust and positive attitude
towards each other.
• All basic policies and procedures Relating to Industrial Relations should
be clear to every body in the organization and the Union Leaders
• The personnel manager should remove any distrust by convincing the
union of the company’s integrity and his own sincerity and Honesty.
• Management should encourage right kind of Union Leadership
• After the settlement is reached should be properly administered.

SOURAV SHIVHARE {CHIMC, INDORE}


Meaning and Definition
of Grievances
• Broadly speaking Grievance means any real or
imaginary feeling of dissatisfaction and injustice
which an employee has about his employment
relationship.
• According to Michael J Jucious, “ a grievance is
any discontent or dissatisfaction, whether
expressed or not, whether valid or not, arising out
of anything connected with the company that an
employee thinks, believes or even feels, is
unfair,unjust or inequitable”
SOURAV SHIVHARE {CHIMC, INDORE}
Causes of Grievances
• 1. Grievances arising out of Working
Conditions
• 2. Grievances arising from
Management policy
• 3. Grievances arising from Alleged
violation of certain statutes…
• 4. Grievances arising out of Personal
Maladjustment
SOURAV SHIVHARE {CHIMC, INDORE}
Working Conditions:
1. Poor physical conditions of work place

2. Tight production standards


3. Non availability of proper tools and equipments
4. Unplanned changes in schedules & procedures
5. Poor relationship with supervisor
Management Policy :
1. Wage Rates
2. Overtime & Incentive Schemes
3. Transfers, promotions, Demotion
4. Penalties for misconduct
5. Lack of opportunities for career growth
SOURAV SHIVHARE {CHIMC, INDORE}
Alleged violation of :
1. Co. Rules & Regulations
2. Collective Bargaining Agreement
3. Central or State Laws
4. Responsibilities of Management

Personal Maladjustment :
1. Over-ambition
2. Excessive Self-Esteem

SOURAV SHIVHARE {CHIMC, INDORE}


Understanding Employee
Grievances
• 1. Exit Interview • Effects of Grievances
• Indiscipline
• 2. Opinion Surveys • Low morale and decreased
productivity
• 3. Gripe Boxes • High Absenteeism and turnover
• Loss of faith in management
• 4. Open Door Policy • Increase in accidents
• Formation of cliques
• Lowering of public image of the
organization

SOURAV SHIVHARE {CHIMC, INDORE}


Standard Grievance Procedure
(ILC)
• Follow only standard procedure ( a
voluntary Grievance procedure) in
pursuance to the Code of Discipline
adopted in the 16th session Indian Labour
Conference in 1958. It contains Five
successive time bound steps each leading
to the next in case the aggrieved employee
prefers an appeal.
SOURAV SHIVHARE {CHIMC, INDORE}
• Model Grievance Procedure
1. Aggrieved Nominated officer 48 hours
employee

2. Employee with HOD 3 days


Departmental
Representative
3. If not satisfied with Grievance Committee Management within 7
the answer days; To employee
within 3 days

4. If committee fails to Appeal for revision to 7 days to


take Management communicate
decision/employee
not satisfied
5. If still employee Voluntary Arbitration Within a week
unsatisfied

SOURAV SHIVHARE {CHIMC, INDORE}


Essentials of Sound Grievance Procedure
• 1. Legal Sanctity
• 2. Acceptability
• 3. Promptness
• 4. Simplicity
• 5. Training
• 6.Follow-up

SOURAV SHIVHARE {CHIMC, INDORE}


Meaning and Definition of
Performance Appraisal
• Performance appraisal or performance evaluation
is the process of assessing the performance and
progress of an employee or of a group of
employees on a given job and his potential for
future development.
• According to Flippo, “ Performance appraisal is
the systematic, periodic and an impartial rating of
an employee’s excellence in matters pertaining to
his present job and his potential for a better job”

SOURAV SHIVHARE {CHIMC, INDORE}


Objectives of Performance
Appraisal
• It promotes a process of introspection
• It provides Personnel Inventory/Skill Inventory
• It is an aid to promotions
• It provides linkages with other systems such as
Transfer, Training, Placement, Increments etc.
• It provides counseling & motivation to employees

SOURAV SHIVHARE {CHIMC, INDORE}


Scenario of Performance
Appraisal in India
• Singer Co. - Monthly Review System
• Asian Paints - Thrice a year
• ABB - Group Performance as well
as Individual Performance
• Maruti - Mid Term Dialogue
• Nationalised Banks - Annual
• TCS - Dissent is noted & appraisals
reconsidered
SOURAV SHIVHARE {CHIMC, INDORE}
The process of Performance Appraisal
• 1. Establishing Performance Standards
• 2. Communicating the Standards
• 3. Measuring Performance
• 4. Comparing actual performance
with the Standards

• 5. Discussing the Appraisal


• 6. Taking Corrective Actions

SOURAV SHIVHARE {CHIMC, INDORE}


Methods of Performance Appraisal
• Traditional Methods: • Modern Methods:
• 1. Confidential Report
• 1. Assessment Centre
• 2. Free Form or Essay
• 3. Straight Ranking
• 2. Appraisal through
MBO.
• 4. Paired Comparisons
• 5. Forced Distribution
• 6. Graphic Rating Scales
• 7. Checklist Method

SOURAV SHIVHARE {CHIMC, INDORE}


Essentials of an Effective Appraisal
System
1. Mutual Trust 6.Documentation
2.Clear Objectives
7. Feedback and
3.Standardization Participation
4.Training 8. Individual differences
5.Job Relatedness
9. Post appraisal Interview
10. Review and Appeal

SOURAV SHIVHARE {CHIMC, INDORE}


PITFALLS in P.A.System
• Halo Effect
• Spill – Over Effect
• Central Tendency
• Constant Error
• Personal Bais
• Benchmarking Self
SOURAV SHIVHARE {CHIMC, INDORE}
Making Performance Appraisal
Effective

• Purpose – Development
• Objectivity should anchor in subjectivity
• Emphasis should be shifted from appraisal to
analysis
• Setting Targets (KRAs)
Dialogue , Feedback, Feedback Counseling
• MBO Technique – Bottom up Approach
• Seminar for training appraisers
• Multiple Appraisers – Judgmental/subjectivity
• Pitfalls to be SOURAV
taken care of
SHIVHARE {CHIMC, INDORE}
Introduction to Career Planning
• It is matching long term requirements of the
• individual and the organisation
It includes training, min. years of service –various positions.
It is described as devising an organized system of Career
movement and growth opportunities from the point of entry
of an individual to the point of retirement
It is a management technique of mapping out the entire career
of young employees in higher skilled, supervisory and
managerial positions
Process of Career Planning….
• STEPS:
I. Identifying Individual Needs & Aspirations:
Most individuals do not have clear idea about these.
Human Resource Inventory of Organisation &
employee potential are ascertained:
It will reveal the age, qualifications, experience &
aptitude of present employees.
Identify the employees having potential for climbing
up.
It will reveal 3 categories of employees:
Process of Career Planning….
1. Employees fit and willing to take up higher
responsibilities
2. Employees having potential and willingness to take up
higher responsibilities, but require more training and
experience
3. Employees having potential but lack the interest or
desire.
II. Analysing Career Opportunities:
Career paths for each position
Career demands in terms of knowledge, skill, experience,
aptitude
Long Term & Short Term Career goals
Process of Career Planning….
At a particular level, there may be direct recruits as well
as older persons (Promotees)
Age balancing in each group
III. Identifying Match & Mismatch
IV. Formulating & Implementing Strategies:
• Changes in the career system by creating new
career paths
• Changing employee needs and aspirations by
scaling down or creating new aspirations
• Seeking new basis of integration through problem
solving, negotiations & Compromises
• Training & Development of people
Process of Career Planning….
V. Reviewing Career Plans:
Whether plans are contributing to effective utilisation of HR.
Questions may be asked:
• Was the employee classification correct?
• Job description proper?
• Unsuitability of any employee?
• Future manpower projects valid?
• Team doing well as a whole ?
• Training & Development Programmes adequately
designed ?
Answers to above questions through brainstorming sessions.
Surveys
Making Career Plan Success:
• What makes a career planning a success ?
1. Top Management Support:
It needs strong conviction of Top Management
2. Expansion: Business Enterprise must be expanding
3. Clear Goals: Organization must have clear corporate
goals for 5-10-15 years
4. Motivated Staff: For motivated, hard working
employees, environment need to be created by
organisation.
5. Proper Selection: Selection of right man for right job
Making Career Plan Success:

• What makes career planning a success .....


(Contd)
6 Maintenance of Proper Age Balance
7. Avoidance of Career Stress/ Burn outs
8. Fair promotion policy + systematic training
9. Internal publicity – wide publicity: Employees
should know – what prospects are available to
them
10. Continuity
Limitations of Career Planning
• It is not suitable for small organisation.
• It is not suitable for flat organisation
• It is not an effective technique for shop-floor
employees
• Political Intervention, Nepotism and
favouratism
• Family Organisations
• Opposition of trade unions for merit promotions
• May not be effective due to longer period – say
a decade
Some Career Planning Terms:
Career: A career is all the jobs that one hold during
one’s working life
Career Path: Sequential pattern of jobs
Career Goals: These are benchmarks along one’s
career path
Career Planning: It is the process by which one
selects career goals and the path of these goals
Career Development: The Personal movements an
individual makes to achieve his career plan.
Career Paths for various types of jobs:
1) Unskilled Worker -> Semi Skilled -> Skilled ->
Highly skilled - > Foreman
2) Junior Clerk -> Senior Clerk-> Assistant ->
Section Officer -> HOD
3) Supervisor -> Assistant Manager -> Dy.
Manager -> Manager -> Manager -> GM
4) Lecturer -> Senior Lecturer -> Reader ->
Professor -> Head/Dean -> Director -> VC
Succession Planning

Z : GM
A-0
- HR
B-0
C-2

A: DGM - Trg B : DGM - IR C: DGM : HR


D–1 F - 0 H - 1
E- 2 G - 1 I- 1

• For Higher Positions; For Critical Positions


• Preparing people for higher positions;
SecondLine;SOURAV SHIVHARE {CHIMC, INDORE}
Current Trends & Future Implications
for HRM
• Breakdown in IR
• Statutory Requirement
• Positionwise:
Nair - Chief of SAIL
H.R.Alwa - CMD of Hindustan Photo Films
Narayan Shetty – Head, Karnataka Telecom
Vikas Deshmukh – Head, Tata Elxsi
Kalpana Morparia – ED, ICICI Bank
C.K. Prahlad
N. Waghul
SOURAV SHIVHARE {CHIMC, INDORE}
Current Trends & Future Implications for
HRM…..Contd..
1. Increased Concern for HRM
20 years ago
Next 5 years – HR As route to the top
2. Termination as a Threat
Burden of proving poor performance
Career Development & Planning
3. Creation of a Bimodal Workforce
2 large groups
Professors / Business People
MBBS

SOURAV SHIVHARE {CHIMC, INDORE}


Current Trends & Future Implications
for HRM…. (Contd….)
4. Management’s move to make their
organisation ‘Lean & Thin’
Employees insecured
Commitment & Loyalty suffering
Forced Retirements
5. Dual Career Couples
6. Benefits & Health
7. Working at Home
Close Supervision
New Monitoring Techniques
Virtual Organisations

SOURAV SHIVHARE {CHIMC, INDORE}


Current Trends & Future Implications for HRM …(contd..)
8. Ergonomics
Matching environment to employee
Open Offices/cabins
Paperless Offices
Micro-films
9. Decline of Unions
Constructive Role
10. Quality Management Principles
Customer Focused Organisation
Leadership
Continual Improvement
Systems Approach
Factual approach to decision making
Mutually beneficial supplier-vendor relationship
SOURAV SHIVHARE {CHIMC, INDORE}
Current Trends & Future Implications
for HRM …(contd..)
11. Future Models
Shamrock Organisation
Federal Organisation
Triple I Organisation
12. Six Sigma
Improvement of Process
Improvement of Product & Services
Improvement in Investor Relationship
Improvement in Designing
Improvement in Supplier Relationship
Improvement in Training & Relationship

SOURAV SHIVHARE {CHIMC, INDORE}


Current Trends & Future Implications
for HRM …(contd..)
12. Innovation & Creativity
Implementation of ideas
13. Core Competency Theory

14. Knowledge Management

SOURAV SHIVHARE {CHIMC, INDORE}


Current Trends & Future Implications for HRM …(contd..)
Conclusion:
No one can predict the future.. The environment is more dynamic than
the past. Future with exciting challenges & opportunities. Focus
will be on following areas:
• HRD to become integral part of business
• Empowerment of employees
• Productivity through team-work
• Flatter/matrix organisational structures
• People sensitive management styles & practices
• Diverse work force – their management
• Efficient use of IT

SOURAV SHIVHARE {CHIMC, INDORE}


Current Trends & Future Implications for HRM …(contd..)
Conclusion:
• Strengthening Organisational communication
• Greater focus on man-machine interface
• Employee involvement
• Performance oriented growth
• Feedback & counseling
• Human Capital management
• Contract employees/package system.

SOURAV SHIVHARE {CHIMC, INDORE}


Workers’ Participation in Management
• According Keith Davis Participation refers to
“the mental and emotional involvement of a
person in a group situation which encourages him
to contribute to group goals and share in the
responsibility of achieving them”
• It is a process by which authority and
responsibility of managing industry are shared
with workers
• In Yugoslavia it is called self-management
• In Germany it is known as Co-determination
SOURAV SHIVHARE {CHIMC, INDORE}
In the words of Mehtras, “ the concept of
participation as a principle of democratic
administration in an industry implies a
share by rank and file in the decision-
making process of an industrial
organization through their representatives
at all the appropriate levels of
management in the entire range of
managerial action”
SOURAV SHIVHARE {CHIMC, INDORE}
Objectives of Workers
participation in management
• 1. Democratic right to
influence the managerial
1. Economic decisions
objective • 2. Raise worker’ level of
motivation and
2. Social commitment
Objective • 3.Cross-fertilisation and
speedy communication of
3.Psychological ideas
Objective • Foster better co-operation
between labour and
management.
SOURAV SHIVHARE {CHIMC, INDORE}
Importance of Workers’
Participation in Management
1. Mutual Understanding
2. Higher Productivity
3. Industrial Harmony
4. Industrial Democracy
5. Less Resistance to change
6. Creativity and Innovation

SOURAV SHIVHARE {CHIMC, INDORE}


Levels/Degrees of Participation
1. Communication
2. Consultation
3. Codetermination
4. Self-Management

SOURAV SHIVHARE {CHIMC, INDORE}


Forms of Workers’ Participation in
Management

1. Suggestion Scheme
2. Works committees
3. Joint Management Councils
4. Worker Directors
5. Co-Partnership
SOURAV SHIVHARE {CHIMC, INDORE}
Assignments
• 1. Why Workers Participation in
management is a desperate failure in India?
Suggest some measures for making
participation successful.
• 2. Write an essay on 360 degree Performance
appraisal system which prevails in the most
successful Organizations.
• 3. “Performance appraisals are mere paper
tigers, if you wish to grab incentive please your
boss” – Pass a Critical comment on it.
SOURAV SHIVHARE {CHIMC, INDORE}
What Is Strategic Management?
• Strategic Management
– The ongoing process companies use to form a vision,
analyze their external environment and their internal
environment, and select one or more strategies to use
to create value for customers and other stakeholders,
especially shareholders
• Vision
– Contains at least two components—a mission that
describes the firm’s DNA and the “picture” of the firm
as it hopes to exist in a future time period.

SOURAV SHIVHARE {CHIMC, INDORE}


Parts of Strategic Management

• Strategy
– An action plan designed to move an organization
toward achievement of its vision
• Mission
– Defines the firm’s core intent and the business or
businesses in which it intends to operate

SOURAV SHIVHARE {CHIMC, INDORE}


What Is Strategic Management?
• Strategic Management
– The ongoing process companies use to form a vision,
analyze their external environment and their internal
environment, and select one or more strategies to use
to create value for customers and other stakeholders,
especially shareholders
• Vision
– Contains at least two components—a mission that
describes the firm’s DNA and the “picture” of the firm
as it hopes to exist in a future time period.

SOURAV SHIVHARE {CHIMC, INDORE}


Parts of Strategic Management

• Strategy
– An action plan designed to move an organization
toward achievement of its vision
• Mission
– Defines the firm’s core intent and the business or
businesses in which it intends to operate

SOURAV SHIVHARE {CHIMC, INDORE}


The Strategic Environment
• Internal Environment
– The set of conditions (such as strengths,
resources and capabilities, and so forth)
inside the firm affecting the choice and
use of strategies
• External Environment
– A set of conditions outside the firm that
affect the firm’s performance

SOURAV SHIVHARE {CHIMC, INDORE}


Key Characteristics of Strategic
Management
• Strategic management is:
• Performance oriented
• Ongoing in nature
• Dynamic rather than static
• Oriented to the present and the future
• Concerned with conditions both outside and inside the firm
• Concerned with performing well and satisfying stakeholders

SOURAV SHIVHARE {CHIMC, INDORE}


The Three Parts of the Strategic
Management Process

1. Strategic leaders form a firm’s vision and mission.


2. Firms analyze their external environment and their internal
environment.
3. Firms choose and implement a strategy that to creates
unique mix of value for customers and satisfies other
stakeholders.
– Strategy implementation—the set of actions firms
take to use a strategy after it has been selected.

SOURAV SHIVHARE {CHIMC, INDORE}



Vision and
Vision Statements
Mission Statements
• McDonald’s
To give each customer, every time, an experience that sets new standards
in value, service, friendliness, and quality.
• NASDAQ
To build the world’s first truly global securities market . . . A worldwide
market of markets built on a worldwide network of networks . . . linking
pools of liquidity and connecting investors from all over the world . . .
assuring the best possible price for securities at the lowest possible cost.
• Petsmart
To be the premier organization in nurturing and enriching the bond
between people and animals.
• Wachovia
Wachovia’s vision is to be the best, most trusted and admired financial
services company.

SOURAV SHIVHARE {CHIMC, INDORE}


Mission statements contd…
• Mission Statements
• Bristol-Myers Squibb
Our mission is to extend and enhance human life by providing the
highest-quality pharmaceuticals and health care products.
• GlaxoSmithKline
GSK’s mission is to improve the quality of human life by enabling
people to do more, feel better and live longer.
• Merck
The mission of Merck is to provide society with superior products and
services by developing innovations and solutions that improve the
quality of life and satisfy customer needs, and to provide employees
with meaningful work and advancement opportunities, and investors
with a superior rate of return.
• Wipro
The mission is to be a full-service, global outsourcing company.

SOURAV SHIVHARE {CHIMC, INDORE}


Presentations by students:
MBA II (B) – 27, 28, 29 July 2009
• Human Resource Planning: Defining &
Objectives
• HRP: Steps : Collecting information:
External Environment
Internal Environment
Forecast Demand for HR
Forecast Supply of HR
Succession Planning
Career Planning
SOURAV SHIVHARE {CHIMC, INDORE}
Presentations by students:
MBA II (A) – 30, 31 July & 1 Aug 2009
1. Human Resource Planning: Defining &
Objectives
HRP: Steps : Collecting information:
2. External Environment
3. Internal Environment
4. Forecast Demand for HR
5. Forecast Supply of HR
6. Succession Planning
7. Career Planning
SOURAV SHIVHARE {CHIMC, INDORE}