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Human Resource Management

Distance Education Anna University





Human Resource Management must take a proactive role in deciding, initiating and implementing change In the context of rapidly changing work environment what must HR managers do to develop key results? What are the influences that impact the organization? What are the implications to the human resource managers?

Learning objectives Understand the effect of culture on human resource practices Appreciate the influence of technology in the workplace Analyze how organizations manage manpower Explain the importance of quality and continuous improvement in the workplace Describe the role of workplace ethics Identify the key roles of the HR manager .

HUMAN RESOURCE MANAGEMENT focuses on all issues related to people concerned with practices involved in the acquisition. development. motivation and maintenance of people .

reflected by the success in goal achievement Efficiency .IMPORTANCE OF HRM people in the organization are instrumental to its success If HRM practices are good.reflected by its ability to achieve the output with very little inputs or resources Survival is dependent on the HR manager s competence to coordinate activities of all people in the organization . organization will be effective and efficient Effectiveness .

Role of Human Resource Managers Maintenance Improving Work Conditions Benefits and Services Safety and Health Employee Relationships Acquisition Human Resource Planning Recruiting Selection Induction and Socialization HRM GOALS Motivation Performance Appraisal Linking Reward to Performance Ensuring Satisfaction Compensation Administration Development Employee Training Management Development Organizational Development Career Development .

1910 1920: Influence of Scientific Management and Industrial Psychology developed as a subject interest to Scientific experiments conducted to understand the influence of work conditions and work groups on productivityproductivity.1946 : Importance of Personnel Management was recognized.Hawthorne study . vague efforts at organizing labor efforts to organize people gained momentum in the beginning of the industrial revolution Mid Years 1900 .EVOLUTION OF HUMAN RESOURCES MANAGEMENT Early years Before the twentieth century.

role-plays.Mid Years . roleand case method .for developing skills of employees and sensitizing employers .Great Depression (1930) 1930) organizations could not maintain the labor employed large-scale retrenchment during the large1940s 1940s ill effects of World War II reflected in HRM practices world over organizations were insensitive to the needs of their employees Started using discussions.

subsistence allowance etc.1970. Workman s compensation Act. educational assistance. Industrial disputes Act. .government intervention enactment of laws and enforcement Factories Act. crèche.19701946.Later years: 1946. Payment of Gratuities Act etc Welfare measures include the need to provide housing facilities. Maternity Benefit Act.

Later years Early 1970s -Personnel Management was redefined in broader terms as Human Resources Management trade unions were most active HR managers needed to take more active part in making the workplace peaceful HR departments were born evolved into a proactive department encouraging welfare and development of employees .

Recent years Most important shift observed since the 1990s .management of human resources is not the exclusive responsibility of the HR department but of all managers Employees of this century are seen as partners in progress rather than resources .

Why this shift to HR? Younger Job Entrants Older Work Population Steady fall in skilled labor WellWell-educated employees More white-collar jobs whiteEntry of Women Equal Opportunities to minorities Business scenario Lifetime Employment Search Cross Cultural Influence Employee Responsiveness .

Key issues in HRM Influence of Culture Technological Impact Impact of Communication On Workplace Dynamics Work Place Ethics Understanding Work Force Diversity Manpower Management Focus on Quality Work Life Balance Knowledge Management Employee Involvement .

Influence of Culture World has become a global village Different countries. different cultures Need to adapt to multi-cultures multiIndian organizations synthesis of East and Western culture .

TECHNOLOGICAL IMPACT Influences observed on Recruitment Selection Training and Development Motivation and Maintenance Human Resource Information System (HRIS) .

Impact Of Communication On Workplace Dynamics Decentralized Workplace Formal to informal communication Developing Tech Savvy Employees .

WORK PLACE ETHICS Ethics prescribes rules or principles that define right and wrong conduct Human Resource Managers must be able to make employees understand the importance of work ethics must ensure that the code of ethics is communicated must ensure that all employees strictly adhere to the code Employee surveillance is an ethical dilemma .

physical abilities. age.WORK FORCE DIVERSITY Heterogeneity in work force Increase in the number of working women .Questions on sexual harassments and glass ceilings within the organization need to be addressed stringently Increase in the representation of the minoritiesminoritiesAffirmative action and inclusive growth policies Prohibition of discrimination on the basis of caste. gender. nationality or religion unless there is a need to Presence of a larger number of elderly people in the workforce employees from different nationalities and multi cultures Emphasis on social equity . race.

MANPOWER MANAGEMENT High Attrition Managing Contingent Workforce Challenges in Employing Contingent Workers Kinds Of Contingent Workforce Part time employees Temporary Employees Contract Workers Balancing Work Force Requirements .

FOCUS ON QUALITY Quality in all aspects product. service. process and people issues TQM Continuous improvement Process re-engineering re- .

WORK LIFE BALANCE Dual career couples Job vs Family FamilyFamily-friendly initiatives .

EMPLOYEE INVOLVEMENT Delegation participative decision-making decisionemphasizing teamwork empowerment .

KNOWLEDGE MANAGEMENT Knowledge based organization Knowledge Workers Knowledge Creation .

experiences and expertise HR practices need to embark on periodical audits to weed out inefficiency and keep the organization focused on quality Technology enables the organization to improve its productivity Knowledge and creativity management are two important issues that the organization must address to stay competitive HR manager has to play a proactive role .SUMMARY Globalization has necessitated human resource managers to change the way they do their work They need to be more responsive to cross cultural issues Employees are an essential constituent of this global village and have different expectations.


skills and abilities required for the position Identify correct number of people to be recruited Choosing the right person through appropriate selection process Ensure timely placement schedules .CHALLENGES FACING HR MANAGERS IN SELECTION ‡ Understand the manpower demand and supply ‡ ‡ ‡ ‡ condition Know the knowledge.

LEARNING OBJECTIVES On completing this unit you must be able to: ‡ Define manpower planning ‡ Make assessment of manpower needs ‡ Match demand and supply of manpower ‡ Know the internal and external sources of manpower ‡ Perform a job analysis ‡ Differentiate job description. job specification and job evaluation ‡ Understand the selection process .

LINK BETWEEN PEOPLE AND COMPETITIVE ADVANTAGE ‡ People are an organization¶s most valuable assets ‡ Intellectual capital rests with people ‡ To accomplish goals adequate people are needed ‡ They must be effective and efficient in task completion ‡ Individual task accomplishment must be linked to organizational goals ‡ Goal accomplishment leads to success ‡ People ensure the competitive edge of an organization .

WHAT IS HUMAN RESOURCE PLANNING? ‡ Human resource planning is the process by which an organization ensures that it has right number and right kinds of people. at the right places. at the right time .

Match this demand and supply . Assess the current status and the future requirement 2.HUMAN RESOURCE PLANNING PROCESS Essentially there are 3 steps: steps: 1. Forecast demand and supply of human resources 3.

ROLE OF HR MANAGERS ‡ Make fairly accurate estimates of human resource needs ‡ Undertake manpower planning as a continuous process ‡ Facilitate planning for future development of the organization .

skills & abilities required for each .ASSESSING CURRENT HUMAN RESOURCES ‡ Perform an internal analysis of the manpower now available ‡ Prepare a comprehensive human resource inventory of people and skills available Assess the jobs available and the knowledge.

Selection 2. Career planning and management .USE OF THE INVENTORY ‡ This inventory is useful in determining the skills ‡ ‡ ‡ that are available Facilitates undertaking of new opportunities by the organization Planning for expansion and developing alternate strategies Tool that enables activities like: like: 1. Transfers & promotions 4. Training&executive development 3.

JOB ANALYSIS ‡ Job analysis defines clearly the jobs within the ‡ ‡ ‡ ‡ ‡ ‡ organization Identifies behaviour needed to perform these jobs Removes tasks that are redundant. small. Identifies new tasks Suggest redesign of jobs Enriches jobs Indicate need for job rotation . duplicated or too small.

How is Job Analysis Done? Information required for job analysis may be obtained by using any of these methods: methods: ‡ Observation method ‡ Diary method Interview method Expert views method  Questionnaire method .

Observation method ‡ The superior or consultant observes the subordinates ‡ These observations are recorded ‡ The person must not know he is being observed .

Diary method ‡ Employees maintain a record in their diaries ‡ Entries provide vital information of work done ‡ Useful to record information about jobs at the top levels .

Interview method ‡ Job incumbents are interviewed ‡ Brings clarity about job ‡ May be used at all levels .

Expert views method ‡ Views of experts in the job are obtained ‡ Provide better understanding of the job Can be used at all levels .

skills and abilities required are obtained Provides a rich source of information . the frequency are considered Knowledge.Questionnaire method ‡ Prepared to facilitate data collection ‡ Job incumbents. supervisors and subordinates ‡ ‡ ‡ ‡ respond Questions are raised to understand the tasks performed Importance of job. time spent.

complete. composite and complete. The purpose is to make the job more interesting and challenging ‡ METHODS USED y y Job Characteristics Model Multi method Job Design Questionnaire .JOB REDESIGN ‡ Ensures reworking on existing jobs to make the job clearly identifiable .

JOB CHARACTERISTICS MODEL ‡ Important approach to redesign ‡ Developed by Hackman and oldham ‡ Improves the performance and satisfaction of employees ‡ Uses the Job Diagnostic Survey which is an instrument with twenty one items with 5 core characteristics .

and abilities complete the job allocated. end. Autonomy: ‡ Autonomy: Indicates the extent to which the job gives freedom and autonomy to the job incumbent Feedback: ‡ Feedback: Indicates the extent to which feedback about performance is given to the job incumbent . ‡ Task significance: significance: Indicates the extent to which the job impacts the jobs or life of other persons. persons. allocated.What are the five core characteristics ? ‡ Skill variety: variety: Indicates extent of use of skills. activities. to ‡ Task identity: identity: Indicates ability to do a clearly identified job from beginning to end.

biological. and perceptual .MULTI METHOD JOB DESIGN QUESTIONNAIRE ‡ This is a forty eight item instrument ‡ The responses help in job redesign and enhance the performance and satisfaction ‡ Evaluates the motivational. mechanistic.motor components of the job .

What are these Components? ‡ Motivational component: component: ‡ These relate to enriching and enlarging jobs to make ‡ ‡ ‡ ‡ ‡ ‡ it intrinsically motivating Mechanistic component: component: Relate to the importance of task specialization and skill simplification in performance Biological component: component: Emphasizes the importance of physical and environmental aspects on job performance Perceptual± Perceptual±motor component: component: Considers the physical and mental capacities in the design of jobs .

JOB ENRICHMENT ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Horizontal job enrichment Jobs at the same level are combined Vertical job enrichment Jobs at different levels are combined Purpose Make the job meaningful and complete Ensures that duplication is avoided Better understanding of job by doing it Prepares the job incumbent for promotion .

JOB ROTATION ‡ The employee is exposed to different jobs ‡ Facilitates learning on the job ‡ Prepares substitutes for an employee when needed ‡ Takes care of possible short term shortage of skill .

JOB ANALYSIS OUTCOMES ‡ Job descriptions ‡ Job specifications ‡ Job evaluation .

and why it is done ‡ Clear description of the job content. environment. duties to be performed . and conditions of employment ‡ Includes the job title. and the distinct features of the job Authority and responsibilities of the jobholder are included .Job Descriptions ‡ Simple written record of what the jobholder does on his job ‡ Shows how it is done.

and abilities needed to do the job effectively .Job specifications ‡ Indicates the minimum qualifications ‡ Identifies the knowledge. skills.

the higher the compensation offered . skills and abilities are grouped ‡ A common compensation is made available to the group ‡ An objective evaluation of the relative value of each job is done ‡ The higher the relative value of the job.Job evaluation ‡ Comparison of jobs is facilitated ‡ Jobs with similar demands in terms of knowledge.

FORECASTING FUTURE REQUIREMENTS ‡ The objectives of the organization point to future human resource requirements ‡ Requirements include an assessment of the number and mix of human resources ‡ Projections on a yearly basis at least for the next five years are desirable .

past trends are used to project the future Expert Committee Experts familiar with employment trends estimate the future needs Correlation HR requirements fluctuate in the same pattern as some other variable ( for eg.demand) eg. Modeling Linear programming . Task analysis Each job is analyzed to determine tasks or duties expected of it ‡ ‡ ‡ .COMPUTING FUTURE DEMANDS ‡ Historical comparison ‡ In this technique. variables. queuing theory consider relationship between number of variables.

CHANGES IN INTERNAL SUPPLY ‡ Is the supply of resources from within the organization The supply may increase or decrease at different time periods .

retirement. layoff. transfers ‡ ‡ ‡ ‡ or individuals rejoining after leave Inflows easy to estimate as the duration is known. sabbatical.What are the reasons for this fluctuation? ‡ Increase in Internal Supply ‡ Increases because of fresh hires. or death Some of these outflows are easy to predict others are not . known. dismissal. Decrease in Internal Supply Due to illness.

CHANGES IN EXTERNAL SUPPLY ‡ The supply of human resources is also affected by external factors ‡ The organization has no control over these factors .

women returning ‡ ‡ ‡ ‡ ‡ after a temporary break. students seeking part time work. repatriates and individuals Decrease in External Supply Migration out of the community Recruitment of erstwhile unemployed elsewhere Death Individuals opting to retire or pursue studies.housewives . . migrants.WHAT FACTORS CAUSE FLUCTUATION IN THE EXTERNAL SUPPLY? ‡ Increase in External Supply ‡ Fresh graduates ‡ New job seekers .

decisions to hire are made Additional requirement could be met through new hires or transfers .MATCHING DEMAND AND SUPPLY ‡ If the demand for manpower increases in the future. or both The purpose is to balance the numbers. skills and quality of manpower Excess of employees on rolls are ascertained It makes it easy to plan the correct use of manpower in the future too . ‡ ‡ ‡ ‡ then.

internal picture. They are: face. organizational policies . Often.CONSTRIANTS ON RECRUITING There are two major constraints that organizations face. applicant.union requirements and. government rules need to be met. picture ‡ The µbest fit¶ applicant may be unwilling to join the organization . These may alter the met. are: ‡ Every recruiter has a picture of the µbest fit¶ applicant. the list of qualified applicants may not suit that picture. In addition sometimes.

MADE. . THE DECISION TO RECRUIT IS MADE.How does the organization recruit in these circumstances? ‡ In the first case the alternate is to recruit the best available candidate In the second case the organization can perhaps do nothing about it ONCE THESE CONSTRAINTS ARE ADDRESSED.

. search.RECRUITING SOURCES ‡ The two choices are: are: ‡ Internal search ‡ External search.

Internal Search ‡ ‡ ‡ ‡ Typically develop employees for higher positions Develops the morale of employees Serves as a training method It is most suited for developing middle and top level managers ‡ Problems with internal sources ‡ May have to sacrifice quality ‡ Does not infuse desired µnew blood´ that is important for encouraging fresh ideas .

very often an external choice may not be right. right. When the person joins the organization his shortcomings are known .External Search ‡ Preferred when desired incumbent is not available ‡ ‡ ‡ ‡ within the organization An individual from the outside may sometimes be a better choice Problems with external sources However.

recruitment .EXTERNAL SOURCES ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Advertisements Employee Referrals Employment Agencies Management consultants Temporary Help Services Educational Institutions Casual or unsolicited applicants Job fairs E.

RECRUITMENT CHALLENGES ‡ ‡ ‡ ‡ ‡ They are : Minority recruitment Equal Employment Opportunity Use of correct selection device Selection of the right candidate .

LEGAL ISSUES ‡ Minority Recruitment ‡ Affirmative action to protect interests of minority in ‡ ‡ ‡ ‡ ‡ recruitment decisions Includes reservation or preferential treatment to the minorities in recruitment Necessitated because of poor representation of the minorities in job postings Equal Employment Opportunity Illegal to discriminate on the basis of caste. Bona fide occupational qualifications may allow discrimination . status. religion. gender or marital status.

.Use Of Correct Selection Device ‡ ‡ ‡ ‡ Must be chosen correctly Test the suitability for the job Be appropriate and relevant Reliable and valid.

‡ The result is a bad reputation. battle.SELECTION OF THE RIGHT CANDIDATE A good selection : ‡ Minimizes the cost of replacement of the candidate ‡ It also eliminates the need for training ‡ The productivity is better A questionable selection: selection: ‡ Engages the organization in legal battle. reputation. .

The organization decides the method preferred by it Thereafter it initiates the selection process The selection process must be completed within the prescribed time This ensures that the incumbent is in position when required ‡ ‡ ‡ ‡ . The final decision is process. approach.Methods of selection ‡ In the first. a candidate who is unsuccessful at any ‡ stage in the selection process is rejected immediately This is the discrete method of selection An alternate is to permit all applicants to go through all steps in the selection process. stages. This is the comprehensive approach. based on the cumulative performance in all the stages.

may force the organization into a shortage. . shortage. Delaying recruitment immediately. The organization must evaluate the payoffs of the trade off and decide. Productivity is affected. affected.CRUX ISSUE y Recruiting early when the supply of manpower is adequate is an avoidable cost to the organization . y However. when supply is inadequate or erratic it is better to recruit immediately.

steps.THE SELECTION PROCESS ‡ A typical selection process consists of seven key ‡ ‡ ‡ ‡ ‡ ‡ ‡ steps. They are: are: Initial screening interview Completion of the application form Employment tests Comprehensive interview Background interview Physical examination Final employment decision .

adaptation.As he continues his career in the organization situation. promoted. career. This process of adaptation is continuous and lasts through out his career.SOCIALIZATION ‡ It is a process of adaptation. face. change his work conditions and consequently his style of work. he may be transferred or promoted. ‡ ‡ . He needs to adapt to a new environment. It may require him to group. new boss. work. Each of these situations brings new challenges which he has to face. ‡ When a new employee enters the organization he faces a ‡ ‡ new situation. new subordinates or new peer group. Socialization influences performance .

ORIENTATION ‡ Orientation is a minor part of the socialization process that a new employee faces ‡ Includes activities involved in familiarizing the new employee with the work place and people ‡ This orientation need not be formal .

Need for Socialization
‡ The socialization process helps the organization ‡ ‡ ‡ ‡ ‡ ‡
to communicate the culture Every organization has its own culture It is distinct from that of any other organization This culture may be communicated through formal written rules and regulations It may also be communicated through informal methods The new employee observes coworkers and slowly imbibes it. Thus, uniformity of behavior is ensured it. It facilitates the development of good interpersonal relationships

y Recruitment facilitates accomplishment of objectives
y Periodic assessment of manpower requirement is necessitated y Critical evaluation of the demand and supply situations is a must y Timing and number of persons to be recruited are other issues y All these come under the purview of manpower planning y Crucial task facing HRM is selection of right candidate for the job y This is possible by ensuring that the right selection device is used y The selection process must be comprehensive and error free y It saves unnecessary expenditure of efforts, time and money efforts, y It also improves satisfaction and productivity

UNIT 111

Substantial corporate investment is in employee T&D Aimed at improving technical and management skills Every employee in the past was exposed to one training during his entire work life Today every employee needs to attend a couple of programs The process of learning extends throughout career. career. The organization and employees feel the need to be current

Continuous learning or life long learning is as essential to the individual employee as the organization to remain competitive. competitive.

After learning this unit you must be able to understand: Need for training. Distinction between training and development. On the job and off the job training techniques. On the job and off the job development techniques. Career development. Dimensions of career. Career management stages. Importance of self development.

they are forced to select people with lower skills yThe skill gap is reduced through training and development yWith experience the employee will fit job requirements yTraining is essential for people at all levels yJobs and job contexts are increasingly complex and changing yEmployees need to adapt quickly .IMPORTANCE OF TRAINING AND DEVELOPMENT yRecruiters search for the employee with the right ability-job fit abilityyHowever.

WHAT IS TRAINING? y Training is confined to operatives y It helps them learn skills required to perform their jobs y Training directed at improving social skills is limited .

WHAT IS THE PURPOSE? y Training is learning aimed at permanent change y Must improve the ability to perform the job assigned y Thrust is on knowledge. skills and abilities y It also involves changing social skills and attitudes y The change is desirable to the organization .

TRAINING METHODS On-theOn-the-job methods Off-theOff-the-job methods .

On-theOn-the-job methods training y The employee observes others at their job y The employee then learns by doing the job y This method is very simple y There is no waste of time on training y The employee is productive even during the training time y However productivity of the employee is low till he gains experience y The cost of errors made during training may be high y Used when short of training personnel and facilities. the costs of errors y This is perhaps one of the most popular methods of . facilities. y With appropriate quality checks.

Off-theOff-the-job methods yTraining is done away workplace y Large number of techniques y Some are very easy and equipment y Some others are complex sophisticated equipments y Wide use from the available use simple and require .

ON-THEON-THE-JOB TRAINING Two popular on the job training techniques are: are: Apprenticeship programs Job Instruction training .

Apprenticeship programs y Learning of skilled trades is facilitated The apprenticeship period usually extends to a year For more complex trades the period may extend longer Governed by the Apprenticeship Act of 1961 The apprentices are usually paid a stipend After apprenticeship they may be absorbed into a regular post y Apprentice trains under the guidance of a superior y Superior imparts knowledge and skills required y Such understudy is useful to learn complex skills It also provides hands on experience on the job y y y y y .

out. are: § Familiarizing the trainee about the job. They are: steps.Job Instruction Training y Developed during the World War II y Facilitates training of operatives by superior y It consists of four steps. § Working on the actual job In case there is a problem a pre -designated superior helps out. job. y Found to improve productivity and reduce risk of rejects y Improves the quality of the output y Used in the manufacturing organizations . it. § Giving key information and clear instructions about doing it. job. § Practice sessions to ensure that the trainee has understood the job.

OFF-THEOFF-THE-JOB TRAINING Four popular off the job training techniques are: are: y y y y Lectures Films Simulation Programmed Instruction .

procedures and methods y Cost effective as a large number can be trained at a time y Often very little interaction from the trainees y Involvement in the learning process may be low y May not give the desired results y Make interesting with the use of audio visual aids y Trainees participation through feedback and .Lectures y Simplest and easiest technique y Useful to impart information about the rules.

Films ‡ Films can be produced in house or bought · · Films can drive home a point better Oral message together with visual effect reinforces learning · Subsequently. discussions may be initiated · Useful when imparting sensitive information. . information.

y Creates an environment similar to that of the workplace y Simulations give a feel of the actual scene. scene. y Trainee is mentally prepared y Simulation techniques include: include: Case exercises
Experimental learning Vestibule training Computer modeling. modeling.

Case exercises
y y y y Comprehensive description of a situation Trainee reads the case thoroughly Identifies the problem and evaluates the alternate courses of action Arrives at a satisfactory solution Hones the analytical, problem solving and decision making skills Used frequently for multi skill development. development.


Experiential learning :
‡ Focus is on learning by doing the exercise
y Learners observe and personally experience the negotiation process y Trainer discusses dos and do nots in the negotiation process y Theoretical concepts are then introduced and explained y Behaviour of the negotiators is critically examined y Recall and analyses reinforces the learning of the concepts better. better.

Vestibule training y T raining is conducted away from the workplace y Learns the job on the equipment that would be used at work y Trainee is familiarized with working on the equipment y Relaxed learning as pressures of the work environment are absent .

modeling. .Complex computer modeling y Computers are used to simulate the work and the environment y Critical job dimension are familiarized y Technique is widely used to train pilots y Risk and costs associated with errors made in real life are avoided y Errors made during the simulation can be corrected y Technique is best where the cost of training on the job is very high y Complex computer modeling is expensive y Use is appropriate only when there is a need for such formal training y Number of trainees must be large enough to justify the costs of modeling.

Programmed Instruction y Uses well structured concise learning material y Prepared as texts or manuals y Learning process is well organized y Logical sequence is adopted y Assimilation of the material is ascertained through responses y Feedback is provided immediately y Helps trainees to know if their responses are correct y Learning may be facilitated through computers y Online courses are provided through intranet y Trainee schedules the learning at an individually desired pace .

EXECUTIVE DEVELOPMENT METHODS May take the form of y y On-theOn-the-job techniques OffOff-the job techniques .

ON THE JOB EXECUTIVE DEVELOPMENT TECHNIQUES ‡ Four popular on the job executive development techniques are: y Coaching y Understudy Assignment y Job Rotation y Committee Assignment .

analyze and suggest methods to improve performance y The manager learns the job by doing it y Directions and feedback given by the coach is immediate and effective y Not all managers are good coaches y Coaching success relies heavily on the ability of the coach ‡ .Coaching y A manager takes an active role in guiding another manager y Coaches observe.

Understudy Assignment y Understudy manager substitutes the experienced manager during his absence y Usually it is for a short period of time y Understudy is able to learn the job while doing it y Errors may be committed during the understudy y Limited use as most decisions are not made solely by the understudy Useful when the superior is willing to encourage the subordinates to grow .

y Horizontal job rotation refers to lateral transfer y Job rotation exposes the manager to new experiences y Monotony is reduced through frequent transfers y There is greater interest to learn and do new jobs y The manager is prepared to assume responsibility y He is also aware of the intricacies and interrelationships of activities .Job Rotation y Job Rotation may be Horizontal or vertical.

Committee Assignment y Provides the manager an opportunity to learn by watching others y Manager is able to analyze organizational problems y Involve himself in managerial decision making y Participation in committees is interesting and a rewarding learning experience .

OFF THE JOB EXECUTIVE DEVELOPMENT ‡ Four popular executive development techniques are : y y y y Lectures Simulation Sensitivity Training RoleRole-plays .

Lectures y Lecture courses facilitate knowledge transfer y Conceptual and analytical abilities are easily developed through this technique y Facilitates face to face interactions between the lecturer and learner y Clarifications are sought and given immediately y Organisations may either provide these courses ³In House´ or ³Off Campus´ y Low learner involvement and consequently low update of knowledge y This can be overcome through interactive sessions .

y However it is expensive to develop business games y Trainees do not take games seriously . complexity.Simulation y Are business games that represent actual business situations y Replicate a wide range of factors that affect the business y Trainees manipulate these factors individually or in a combination y The outcomes would naturally differ y Normally business games are conducted with at least two teams y This builds the spirit of competition and the desire to win y Today computers are used to simulate y This allows for building in a good deal of complexity.

group guides them y The trainer does not directly involve in the process y Encourages the group to express feelings freely and frankly y Group has no leader or specific purpose This would go a long way in improving behaviour .Sensitivity Training y Sensitivity training is also referred to as T-group training y Usually used to develop good interpersonal relations y Behaviour modification is achieved through unstructured group interaction y Trainees work in small groups of ten y Trainer who leads the T.

RoleRole- plays
‡ ‡ ‡ ‡ ‡ ‡ ‡
Used extensively to develop good interpersonal relations The trainees learn by doing They are given a situation in the organizational setting Trainees are assigned roles to enact Participants observe actions and body language of role players Trainer then initiates a discussion Trainees understand acceptable and not acceptable behaviour ‡ Feedback given at the end helps learn correct practices ‡ More effective than traditional methods

‡ ‡ ‡ ‡
· Feedback is obtained from the participants · Participants may appreciate be critical or indifferent to outcome Reactions give some clue about benefits from the training · However, this may be misleading at times · Objective measures must be used to get a correct picture · Objective measures include: include:
§ § § § improvement in productivity quality enhancement desired change in job behavior greater satisfaction · Benefits of training must justify the costs committed

‡ · Must provide value to the organization ‡

Human Resource Managers understand a career as a sequence of job positions occupied by an individual during the course of his work life

WHAT IS CAREER DEVELOPMENT? DEVELOPMENT? Career development looks at the long term career effectiveness and success of employees Can be seen from the perspective of the individual or the organization . Former focuses on facilitating individuals to achieve their career goals Latter focuses on identifying career paths for each job position Both these perspectives have value ‡ Crux issue It is in the interest of the organization to use these approaches together .

USES OF A GOOD CAREER DEVELOPMENT PROGRAM Critical Evaluation of Employee Potential Ensures Needed Talent Retention of Talent Reduces Employee Frustration Work Life Balance Meet External Requirements .

explicit. Which: is dimension.CAREER DIMENSIONS There are two dimensions to a career The first is the external dimension. realistic and objective gives objective progression in a job may be very explicit. The second is the internal dimension. Which: may not be real and is subjective gives subjective progression in job is rather vague .

Why should we distinguish a career based on these two dimensions? ‡ They work differently but both matter ‡ Otherwise it leads to mismatch of human resources ‡ Careers are influenced more by perception than ‡ ‡ reality Organization must look out for appropriate cues Matching individual expectations and organizational realities is crucial to success .

CAREER STAGES The individual s career is made up of stages Usually there are five stages in the career irrespective of the job performed The five stages are : ‡ Exploration ‡ Establishment ‡ Mid-career Mid‡ Late-career Late‡ Decline .

CAREER STAGES MODEL Exploration Establishment Mid-career HIGH Decline P E R F O R M Performanc Gets A Transition e increases first N from school to or begins to job C work decline E LOW 5 75 10 15 20 25 30 35 40 45 Late career Mentorshi p positions Retiremen t 50 55 60 65 70 .

Facilitates clear identification of potential problems and opportunities Employee participation in career decisions ensures their cooperation. Counseling becomes more effective then. then. cooperation. Each model. actions. .MATCHING CAREER DIMENSIONS WITH STAGES The external and internal dimensions of careers are closely linked with the career model. stage is characterized by dominant perceptions and actions.

ENSURING EFFECTIVE CAREER DEVELOPMENT Challenging Initial Jobs Ensure Employee Job Fit Intimate career options Inform Job Postings Assessment Centers Career Counseling Career Development Workshops Continuing Training and Education Periodic Job Changes Sabbaticals .

answers. bad job behaviors. lack of confidence etc.ISSUES TO ADRESS IN SELF DEVELOPMENT Individual employee is responsible for his own career development Perhaps the best thing is to start a job quite early Planning for a career must be done carefully It must have a time frame and alternates that suit your personality . Critically review the skill set you possesses to stay current. Reflect on your experience and performance in the current job Are you better of here? Or was an earlier job better? Be honest about the answers. be. current. Career goals must be realistic. realistic. Undertake self assessment of skills and capabilities Approach a counselor for help if need be. boldly. . etc.ego hassles. Choose a job then spend time to align your individual goals with organizational goals Face the realities of the job market boldly. Avoid problems . personal enmity.

STEPS IN SELF DEVELOPMENT As a first step the person must introspect if he has such a problem Put some extra effort to correct the problem. yoga. Work on your problems. Get professional counselor s help whenever needed Seek organizational intervention when problem is beyond your control Attend workshops on emotional intelligence. problem. meditation etc CRUX ISSUE It is important to manage your self. If you are able to address them then you are well on your way to success .

The mentor is in a position to steer the career of his protégé in the right direction. .MENTORING Employees who reach top jobs invariably have a mentor. It also depend on whether potential. Mentors take keen interest in the development of their protégés They closely observe their protégés. mentor. direction. advice. Mentoring facilitates promotions from within. process. within. The truth is there are few mentors and protégés who are really successful in mentoring process. mentor. criticize and encourage them . guide. the protégé is willing to learn from the mentor. CRUX ISSUE:Mentor protégé relationships ISSUE: depend on the abilities of the mentor to develop his protégés potential.

Survey Feedback Process Consultation Team Building InterInter-group Development . are:.ORGANISATIONAL DEVELOPMENT Organisational Development Techniques that are commonly used are:.

learning. Employees understand the need to continuously acquire new knowledge They willingly share knowledge with other organizational members Learning organizations are adaptable to change. change. organization.LEARNING ORGANISATION A learning organization is one that understands the value of learning. Change is possible because of the open culture This culture is made possible because of good leadership . Learning is facilitated by the organization. advantage. It believes that learning is instrumental to achieving a competitive advantage.

SUMMARY Training is concerned with improving the technical skills Executive development improves managerial and decisional skills There are several on the job and off the job techniques of T&D All employees have to be exposed to some form of T&D It helps employees in their career development The onus of training lies with the organization and the individual employee The concept of life long learning has come to .


Employee s performance = interaction between his abilities and motivation. key skills and abilities may not get desired results Why is it so? Because of lack of motivation. challenge. motivation. Human resource managers find motivating employees a major challenge.INTRODUCTION Every organization aims at having productive employees Even recruits with knowledge. . motivation.

LEARNING OBJECTIVES After learning this unit you must be able to understand the : Relevance of employee motivation Distinction between content and process theories of motivation Implications of the motivation theories Importance of satisfaction in motivating employees Different types of rewards Decisions related to rewards Design of pay structure Legally required and voluntary benefits Other benefits to employees .

A need needs.WHAT IS MOTIVATION? In simple terms. motivation is the willingness to do desired actions that satisfy the individual s needs. indicates an internal state that makes outcomes attractive .

THE MOTIVATION PROCESS Unsatisfied Need Tension Drives Search Behaviour Reduction of Tension Need Satisfaction Goal Achievement .

Motivation Theories Can be broadly classified into: into: Content theories Process theories .

CONTENT THEORY Content theory identifies what causes motivation? The belief is there are clearly identifiable things that can motivate an employee Organization must ascertain and offer them to the employee The employee would be motivated if he values them Good performance is ensured thereby .

MASLOW S HIERARCHY OF NEEDS Self ± Actualization Needs Esteem Needs Social Needs Safety Needs Physiological Needs .

Herzberg¶s Motivation Hygiene Theory MOTIVATION OR INTRINSIC FACTORS y y y y Work Itself Recognition Responsibility Achievement SATISFACTION HYGIENE OR EXTRINSIC FACTORS y y y y Working Conditions Company Policy Supervision Interpersonal Relations DIS SATISFACTION .

to be a member of a group Hygiene Factors Safety Need to feel safe and secure Physiological Need to satisfy physiological requirements Working Conditions Company Policy Supervision Interpersonal Relations .MASLOW AND HERZBERG COMPARISON Maslow¶s Hierarchy of Needs Self-Actualization Need to accomplish all that one is capable of Esteem Need to be worthy and respected Work Itself Recognition Responsibility Achievement A Herzberg¶s Motivation-Hygiene Theory Motivational Factor Social Need for love.

y Suggests that at any point of time. needs.Alderfer s ERG Theory y Reframed Maslow¶s hierarchy of needs of into another model y Also called it the ERG theory y There are three groups of core needs y These needs are the existence. more than one need may be present y If a higher need is unsatisfied then the desire to satisfy a lower need intensifies . relatedness and growth needs.

McGregor s Theory X and Theory Y Manager s view of his subordinates is based on any one of the two assumptions Behavior toward his subordinates in turn is based on the assumptions The first assumption is basically negativenegativeTheory X The second assumption is basically positivepositive.Theory Y. .

will force them to achieve desired goals Employees shirk responsibilities and prefer formal direction .Theory X Employees inherently dislike work Control. responsibility.The average person can learn to accept and even seeks responsibility. Most employees want security and do not have ambition. ambition. Theory Y Employees view work as being as natural as rest or play . .Exercise self-direction & self-control when committed to the selfselfgoals. goals.Both employees and managers are creative . .

The need for achievement: it indicates the achievement: drive to excel. The need for power: it indicates the need power: to make others behave in a particular manner 3. The need for affiliation: it is the desire for affiliation: good interpersonal relationships .McClelland s Achievement. and Affiliation Motives 1. Power. and to achieve in relation to a set of standards 2.

reward allocations and performance .PROCESS THEORY y Process theory identifies how motivation actually takes place y The belief is that there are clearly identifiable steps to motivate an employee y Organization must take initiative to identify and clearly map these steps y It understands the thought process that drive employees to work Has wide implications on job design.


Valence: Denotes the attractiveness of a particular outcome to the employee.Vroom¶s Theory y Motivation can be mathematically defined y Motivation = Valence x Expectancy x Instrumentality Expectancy: Denotes the relationship between effort expended and first level outcomes. Instrumentality: Establishes link between first level outcome and second level outcome .

Porter and Lawler s Theory Value of reward Perceived Equity Intrinsic Rewards Effort Performance (Accomplishment) Extrinsic Rewards Role Perception Perceived effort reward probability Satisfaction Abilities and Traits .

JOB SATISFACTION Job satisfaction of all employees in the organization is desirable as a means to achieve greater productivity .

PRACTICAL APPLICATION OF MOTIVATION y y y y y y y y Job Rotation Work Modules Shorter Work Week Flextime Performance Based Pay Skill Based Pay Flexible benefits Employee involvement Recognition Programs .

REWARDS AND COMPENSATION ADMINISTRATION y Employees get several rewards out of work y When these are valued the employee puts efforts to get them y Individual employees values different rewards y Organizations must understand what rewards their employees value y They must link performance with the rewards y The links must be communicated to the employees y Organization rewards must bring satisfaction .

TYPES OF REWARDS Intrinsic or Extrinsic rewards Financial or Non financial rewards. and Performance based or Membership-based Membershiprewards .

QUALITIES OF EFFECTIVE REWARDS Employee specific Visible Equitable Flexible Cost effective .

CRITERIA FOR REWARDS DISTRIBUTION y Performance y Effort y Seniority y Skills Set y Job Complexity y Discretionary Time .

JOB EVALUATION AND PAY STRUCTURE Compensation administration relies heavily on job evaluation A good job evaluation sets the pace for the establishment of a sound pay structure .

DESIGN OF THE PAY STRUCTURE The data obtained in job evaluation is used to design the pay structure Wage surveys provide information on comparative pay structures Helps to fix wages. etc. draw up wages for new positions. . etc. during high attrition .

‡ INCENTIVE COMPENSATION PLANS y y y Individual Incentives Group Incentives Overall Organizational Incentives .

BENEFITS Legally required benefits  Social Security  Unemployment Compensation  Worker Compensation  Survivor benefits  Retirement benefits  Termination Benefits  Sick leave  Maternity leave .

Drinking water 9.Cleanliness 2. Ventilation and temperature 4. Artificial humidification 6. Disposal of wastes and effluents 3. Lighting 8. Spittoons PROVISIONS OF FACTORIES ACT 1948 Health .1. Overcrowding 7. Dust and fume 5. Latrine and Urinals 10.

Lifting machines. Work on or near machinery in motion 3. chains. ropes and lifting tackle . Striking gear and devices for cutting off power 5. Employment of young persons on dangerous machines 4. Hoists and lifts 9. Fencing of machinery 2. Self-acting machines 6. Prohibition of employment of women and children near cotton-openers 8.SAFETY 1. Casing of new machinery 7.

13.Excessive weights . 17A 17A. etc.Precautions against dangerous fumes.Pressure plant 12. etc. 16. 15. etc. sumps openings in floors. 14. stairs and means of access 13. Precautions in case of fire .Explosive or inflammable dust. etc.Floors.SAFETY 10. gas. 11. 18. 14. Pits. 15. gases.Protection of eyes 16. etc. 12. etc. 10. 18. Precautions regarding the use of portable electric light 17B 17B.Revolving Machinery 11.

2. Creches 6.First-aid appliances First4. 3.WELFARE 1. Facilities for sitting 3. Welfare officers . clothing. Facilities for storing and drying clothing. Rest rooms and Lunch rooms 5. facilities. Shelters. Washing facilities. Canteens 5.

VOLUNTARY BENEFITS Rest periods y Holidays y Vacations y Leaves of Absence y Group Insurance y Medical Facilities y .

OTHER BENEFITS ‡ Social Events ‡ Picnics Leave Travel Concessions Housing Credit Festival Advance Education Facilities Food subsidy Supplies Transportation Creche Help Desks Counseling .

SUMMARY y Organizations world over find motivating their employees a challenge y The content theory helps identify motivators y It provides simple answers to what can motivate employees y Organizations generally take cues from the content theory on motivators y Process theory tells us how motivation works y Must establish links between effort. performance. . rewards and satisfaction.


INTRODUCTION Performance of employees must meet organizational expectations Employee performance must be reviewed periodically Otherwise shortcomings may go unnoticed for too long Communicate in advance frame of reference. time horizon. & process Prompt feedback of appraisal report is desirable Appraisals must be linked with rewards to be given Link with rewards boosts motivation and morale .

procedure. control. evaluation. Distinguish between the different redressal methods. evaluation. Appreciate the need for performance control. Draw up a typical grievance procedure. Explain the different approaches to evaluation. Substantiate the need for performance appraisal. Know common reasons for grievances. . grievances. methods. appraisal.LEARNING OBJECTIVES After learning this unit you must be able to: to: Define performance appraisal. appraisal. Understand the methods of evaluation.

WHAT IS PERFORMANCE APPRAISAL? Assessment of employee performance Identifying gaps in performance Aims at goal accomplishment .

PURPOSES OF PERFORMANCE APPRAISAL Basis for allocating rewards Identifies areas where development is necessitated Criterion to validate selection devices and T&D programs .


appraisals. They are: are: Absolute standards Relative standards and Objectives .APPROACHES TO APPRAISAL Typically. managers use three approaches for conducting performance appraisals.

ABSOLUTE STANDARDS Absolute standards appraise the employee individually Employee s performance is not compared with any other person Common methods under this approach are the: the: Essay appraisal Critical incident appraisal Checklist Graphic rating scale Forced choice and Behaviourally anchored rating scales .

differences in content and bias .Essay Appraisal It is one of the simplest methods of appraisal Describes the employee s strengths. weaknesses. and past performance Indicates the employees potential and suggestions for improvement for the future Strength of the essay appraisal is the ease with which it is done Pitfalls are unstructured nature.

Critical Incident Appraisal Focuses the evaluator s attention on critical or key behaviors Helps understand why some do a job effectively while others do it ineffectively Evaluator notes down what the employee did that was effective or ineffective Specific behaviors are identified for appraisal Does not consider personality traits Behaviorally based appraisal is more valid as it is job related It is more accurate .

Checklist Evaluator prepares a list of behavioral descriptions Checks if all those behaviors apply to the employee Indicates yes or no responses against each item in the checklist Completed checklist is evaluated by the HR department Scoring of the checklist items is based on their importance Final evaluation is returned to the evaluator Giving the feedback to the employee is important .

etc.Graphic Rating Scale Oldest and most popular method of appraisal Used to assess both quantitative and qualitative aspects of work Quantitative aspects include attendance. dependability etc. The rating scale is a useful tool . Qualitative aspects include attitudes. promptness etc. knowledge. cooperation. Not suitable when it is not possible to define a measure in clear behavioral terms. etc. terms.

validated. Identifies which statement best describes the employee Choosing one choice automatically excludes the possibility of the other Right answers are not known to the evaluator To reduce bias.Forced Choice The forced choice appraisal is a type of checklist Evaluator has to choose between two or more statements. the human resource department does the scoring Key is pre validated. statements. Employees with higher scores perform better .

Behaviorally Anchored Rating Scale BARS is a modern day appraisal tool Represent a combination of the critical incident and graphic rating scale methods Evaluator rates the employees on specific job behaviors Does not consider personality traits Ensures reliable and relatively accurate ratings .

and Paired comparison .RELATIVE STANDARDS Individual employee is compared against other employees Some of the popular of the relative methods are: are: Group order ranking Individual ranking.

Group Order Ranking Evaluator groups employees into a particular group Assessment of all the subordinates is done together Grouping may be misleading at times Prevents raters from inflating evaluations .

Individual ranking Evaluator lists the employees in an order from highest to lowest Believes there is only one best employee No two employees get the same rank .

))/2 comparisons Ranks each individual on a one to one basis It is comprehensive.Paired Comparison Considers the total of (n (n-1))/2 (n. comprehensive. Complex if the number of employees is large .

MANAGEMENT BY OBJECTIVES Steps include: include: Goal setting Action planning SelfSelf-control and Periodic reviews .

FACTORS THAT DISTORT APPRAISALS Leniency Error Halo Error Similarity Error Low Differentiation Forcing information to match non performance criteria Inflationary Pressures Inappropriate Substitutes for Performance Low Appraiser Motivation .

IMPROVING PERFORMANCE APPRAISALS Prefer Behaviorally Based Measures Combine Absolute and Relative Standards Encourage Ongoing Feedback Use Multiple Raters Emphasize Selective Rating Use Effective Evaluators Train Evaluators Reward Effective Evaluators .

DISCIPLINE y Employees may create problems in the work place y Such problems affect their performance y Also affects performance of other employees y Would affect the efficiency and effectiveness Disciplinary action is initiated .

TYPES OF DISCIPLINE PROBLEMS y Attendance y Dishonesty y On the job behaviors. and y Undesirable actions outside the organization .

ESTABLISHING A FAIR AND EQUITABLE DISCIPLINARY PROCESS y y y y y y y y y Seriousness of the problem Frequency of occurrence Persistence of the problem Employee s work conduct Extraneous factors Communication of Discipline Related Information Organization s Disciplinary Practices Outcomes of Disciplinary Action Management Conviction .

DISCIPLINARY GUIDELINES y Choose corrective action as against punishment y Disciplinary Action must be Progressive Apply the hot stove when needed .

DISCIPLINARY ACTIONS y Oral Warning y Written warning y Suspension y Demotion y Pay cut Dismissal .

This brings about a better work climate .GRIEVANCE y Is a complaint of one or more workers y Employees have several reasons to feel aggrieved y Occur because of the work. the work conditions and the work relations y Grievance handling depends on : o the style of management o size of the enterprise o education level of the management o size of the enterprise o strength of the union y However small the grouse it must be attended at the very beginning.

WHY DO GRIEVANCES OCCUR? y Work y Work Conditions y Work Safety y Work Health Work Relations .

the supervisor and the worker arrive at an amicable settlement If worker is still unsatisfied matter is taken to higher authorities If this too fails then issue is referred for arbitration .GRIEVANCE PROCEDURE y A typical grievance procedure consists of several y y y y y y distinct steps Settled at any step then no further need to move up First the worker must discuss the matter with his immediate supervisor If it is not settled or if the worker is not satisfied taken to the HOD The HOD.

GRIEVANCE REDRESSAL MACHINERY Grievances may be settled either through empathy or legally .

thrash out the problem and find an amicable solution The idea is to deal with the problem in a humanistic way Avoids the interference of outsiders in the matter Management and workers aim for a winwin situation .Empathy Parties together.

Legally legally solved on the basis of the relevant laws Normally there is a need for third party intervention One party wins over the other Winning depends on which side s action is legally correct .

management and workers .INDUSTRIAL CONFLICT y An unaddressed grievance can manifest into an y y y y industrial conflict Conflict has a larger dimension Can affect several organizations in an industry Industrial conflicts destroy the peace and harmony Intergroup conflict between the owners.

MANIFESTATION OF A CONFLICT y y y y y y y Conflicts lead to strikes and lock outs Strikes and lockouts are dysfunctional Psychologically disturbing May appear that only one party is affected Actually affects both parties Leads to loss of production. Ensure conflicts are resolved amicably Must be done as fast as possible .

overtime payment. union. benefits.CAUSES OF INDUSTRIAL CONFLICT Economic: Dissatisfaction with wages. Political: Ideological differences between parties Psychological: Conflicting demands of workers and peers. Legal :reasons include non-compliance with the laws . and the organization. bonus payments etc.

and Statutory Measures .CONFLICT RESOLUTION MACHINERY y Non statutory methods y Government Machinery.

Code of Discipline Nonstatutory methods Tripartite Machinery Workers Participation in management Measures of conflict resolution Collective Bargaining Government machinery Labour Administration machinery (State and Central schemes) State Acts Statutory Measures Works Committee Conciliation Officers Conciliation ID Act. 1947 Arbitration Board of Conciliation Court of Inquiry MEASURES OF CONFLICT RESOLUTION Adjudication Labour Court Industrial Tribunal National Tribunal .

rewards must be directly linked to the performance of the employee .SUMMARY y Performance evaluation is useful to make several crucial decisions y Evaluations are necessary to know how employee has performed y Relevant to a period of assessment y Helps employee know where he is short of organizational expectations y Corrective action is initiated thereafter y Decisions on training. transfer and rewards are based on it y Ideally. promotion.