CHAPTER -- 1

THE STRATEGIC ROLE OF HUMAN RESOURCE MANAGEMENT

LEARNING OBJECTIVES
What HRM is and how it relates to the management process? Why HRM important to all Managers? Challenges of HRM? Organization of HR department How HRM differ from PM? Qualities of HR Manager Responsibilities of HR Department

What is HRM?
Human Resource Management is the process of acquiring, training, appraising and compensating employees, and attending to their labor relations, health and safety, and fairness concerns.

TOPICS INCLUDED
Conducting job analysis Planning for human resource Recruiting candidates for jobs Selecting job candidates Orienting and training new employees Managing wages and salaries Providing incentives and benefits

TOPICS INCLUDED(Cont.)
Appraising performance Communicating (counseling, disciplining) Training and developing managers Building employee commitment Employee health and safety Handling grievances and labor relations

Why HRM important to all Managers?

You dont want to: Hire the wrong person for the job Experience high turnover Find your people not doing the best Waste time with useless interviews Have your company taken to court because of discriminatory actions

Why HRM important(Cont.)

Have your company cited under safety laws for unsafe practices Have some employees think their salaries are unfair and inequitable to others Allow a lack of training to undermine effectiveness Commit any unfair labor practices

CHALLENGES OF H R M
Changing mix of workforce Changing personal values of the workforce Changing expectations of employees Changing levels of productivity Changing demands of Government and Society Bringing organizational effectiveness in a competitive environment

Internal

External

HRM

How HRM relates to Management Process?

Planning: Determining personnel program in advance Organizing: Designing the structure of relationships Directing: Getting people to work willingly and effectively Controlling: Regulating activities in advance with personnel plan Staffing: Obtaining proper kind and number of personnel Evaluation: Appraising the performance of the employees

How HRM relates(Conti.)

Development: Increase of skill through training necessary for performance Compensation: Adequate and equitable remuneration of personnel Integration: Reconciliation of individual and organizational interests Maintenance: Maintaining the effective workforce Separation: Retiring or discharging an employee

How HRM differ from PM

PM Written contract Defined rules Procedural Practices Monitoring Labor Mgmt HRM Beyond contract Do away with rules Business needs Values/mission Nurturing Customer Mgmt

How HRM differ.contd.

PM Piecemeal initiative Slow decision Indirect communication Fixed grades Many job categories Division of labor Treated as tool HRM Integrated Fast decisions Direct Performance related Few Team-work Treated as an asset

HRM- Its all about Results

For many years it has been said that capital is the bottleneck for a developing industry. I dont think this any longer holds true. I think its the workforce and a companys inability to recruit and maintain a good work force that does constitute the bottleneck. F.K.Foulkes

Organization of HR Department
Largely depends on:

Scale of operations
Attitude of Top Management Manufacturing or Service Organizations

GM/HR Manager

Manager Personnel

Manager Administration Appraisal

Manager HRD

Manager IR

Training and development Transport Legal

PR

Canteen

Medical

Welfare

Human Resource Planning

Hiring

Grievance Handling

Compensation

Qualities of HR Manager
Fairness and firmness Tact and resourcefulness Sympathy and coordination Empathetic approach Knowledge of labour laws Broad social outlook Competence in profession Academic qualifications

Responsibilities of HR Department

Human Resource Planning Job Analysis Recruitment Selection Placement Training and development Remuneration Motivation Participative management Communication Safety and health Welfare

Responsibilities of HR ..Contd.

Promotions Industrial relations Trade unionism Disputes and their settlement Ethical issues in HRM Future of HRM International HRM Personnel records Personnel research

Responsibilities of HR .Contd.
Job evaluation Induction/orientation Counselling Attitude surveys Suggestion systems Performance appraisal system Pay roll processing Office maintenance services

Competency Model-HR Professionals

Business
Mission Oriented Strategic Planner Systems Innovator Understand Team Behavior

Competency Model-HR Professionals

Leader
Take Risks Ethical Decisive Develops Staff Create Trust

Competency Model-HR Professionals

HR Expert
Knows HR Principles Customer Oriented Applies Business Procedures Manages Resources Uses HR Tools

Staff Managers HRM Jobs

Line authority ( directing people in his/her own department, and the service dept. plant cafeteria) Implied Authority ( by virtue of knowledge of others and access to top management) Functional Control ( authority exerted as coordinator of HR activities)

Staff Managers HRM (Conti.)

Employee advocacy ( responsibility for defining how management should be treating employees, make sure employees have the mechanisms required to contest unfair practices, and represent the interests of employees within the framework of its primary obligation to senior management.

Strategic Planning and Trends

Strategy: The companys long-term plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantages.

Levels of Strategic Planning

Corporate level: Identifies the portfolio of businesses that comprise the organization, and the ways in which these businesses relate to one another Business level: Identifies how its managers will build and strengthen that businesss long-term competitive position in the marketplace

Levels of strategic(contd.)

Functional level: Identify the basic courses of action that each of the departments will pursue in order to help the business attain its competitive goals

Basic Strategic Trends

Globalization: Putting production facilities anywhere in the world, where most advantageous. Technological advances: Enables companies to be to be more competitive. The nature of work: Knowledge intensive jobs increasing e.g. computers,telecommunications, biotechnology etc. The workforce: Increasing diversity in workforce.

Basic Strategic Trends

Globalization: Putting production facilities anywhere in the world, where most advantageous. Technological advances: Enables companies to be more competitive. The nature of work: Knowledge intensive jobs increasing e.g. computers,telecommunications, biotechnology etc. The workforce: Increasing diversity in workforce.

Consequences of these basic trends

Leads to : Uncertainty, Turbulence, Rapid change, Mergers, Joint ventures, More consumer choices, Record number of business failures, More uncertainty for Managers. Companies must be: Fast, Responsive, Cost effective, Flat organizations, Quality conscious, Decentralized, Boundary less, Human capital oriented, Values and vision oriented, Team based

HR evolving role
From Protector and Screener To Strategic Partner and Change Agent

Strategic HRM
Clarifying the business strategy Realign the HR functions and key people practices Create needed competencies and behaviors Realization of business strategies and results Evaluate and refine

Strategic HRM(contd.)

Strategic human resource management: Linking HRM with strategic goals and objectives to improve business performance and develop organizational cultures fostering innovation and flexibility.

HR means performance
Can HR have a measurable impact on a companys bottom line? Better HRM translates into improved employee attitudes and motivation Well run HR programs drive employee commitment

Is there a One Best HR Way?

Follow a companys operating and strategic initiatives All companies can benefit from - Profit sharing programs - Results oriented appraisals - Employment security - Foster informal relationships - Develop global executives

CHAPTER 2

JOB ANALYSIS

LEARNING OBJECTIVES
Understand job analysis and how its used Methods of collecting job analysis information Write job descriptions Write job specifications How job analysis is done in practice

Job Analysis
It is a prelude to Recruitment and selection Job analysis is the procedure for determining the duties and skills requirements of a job and the kind of person who should be hired for it. Immediate products of this analysis are job descriptions and job specifications.

Steps in Job Analysis

Collecting and recording job information Checking job information for accuracy Writing job descriptions based on the information Using information to determine skills, abilities and knowledge required Updating the information from time to time

What information do I collect?

Work activities Human behavior Machines, tools, equipment and work aids Performance standards Job context Human requirements

Work activities
Cleaning Selling Teaching Painting How, why and when the activities are performed

Human Behavior
Sensing Communicating Deciding Writing Job demands Lifting, walking, Jumping jacks?

Machine, tools, equipment, work aids

Products made Materials processed Knowledge Services

Performance standards

Information about jobs performance in terms of quantity or quality levels of each job duty needed to appraise employees

Job Context
Working conditions (Physical) Schedule (work) Organizational context ( Reporting relationship) Social context ( Number of people with whom the employee would normally interact)

Human Requirements
Job related knowledge and skills Education, Training, Work experience Personal attributes Aptitudes, Physical characteristics, Personality, Interests

Uses of Job Analysis Information

Validation of hiring procedures Determining Job Description and Job Specification of various positions Recruitment and selection decisions Performance Appraisals Job Evaluation- Wage and salary decisions Training Requirements Induction Job reengineering

Methods of collecting Job Analysis Information

The interview Questionnaire Observation Employee diary/ logs Quantitative techniques Multiple sources of information

Collecting Job Analysis Information

Joint effort between HR, the worker and the supervisor Subject Matter Experts

The Interview: Widely used

Individual interviews with each employee Group interviews with groups of employees who have the same job Interviews with one or more supervisors who know the job

Interview Guidelines
The job analyst and supervisor should identify the workers who know the job best and would be objective Establish a rapport with the interviewee Follow a structured guide or checklist Ask a worker to list duties in order of importance and frequency of occurrence Review and verify data

How to conduct a questionnaire session

Use a specific questionnaire Establish rapport Follow a structured approach List duties in order of importance or frequency of occurrence Review and verify the data

Observation
Observation may be combined with interviewing Take complete notes Talk with the person being observed explain what is happening and why Ask questions

Diaries and Logs

Self-reporting Remembering what was done earlier Can use dictating machines and pagers Time consumed for each activity

Quantitative Job Analysis Techniques

Position Analysis Questionnaire: used to collect quantifiable data concerning the duties and responsibilities of various jobs Functional Job Analysis: method of classifying jobs taking into account the extent to which instructions,reasoning , judgment, mathematical and verbal ability are necessary for performing job tasks

Writing Job descriptions

Job identification Job summary Relationships Responsibilities and duties Standards of performance Working conditions and physical environment

Job Identification
Title Date Approvals (who approved the description) Supervisors title Salary Grade level

Job Summary
General nature Major functions or activities Include general statements ( performs other assignments as required

Responsibilities and Duties

Examples: - Establishes marketing goals to ensure share of market - Maintain balanced and controlled inventories Defines the limits of job holders authority: Purchasing authority,discipline, hiring

Standards of PerformanceExample
Duty: Meeting daily production schedule Work group produces no fewer than 426 units per working day Next workstation rejects no more than an average of 2% of units Weekly overtime does not exceed an average of 5%

Working Conditions and Environment

Working condition involved on the job Noise level Hazardous conditions Heat

WRITING JOB SPECIFICATIONS

What human traits and experience are required to do the job well ? - Specifications for trained versus untrained personnel - Specifications based on judgment - Specifications based on physical efforts - Specifications on communication skills - Specifications on education and experience

Job Related Behavior

Industriousness Thoroughness Schedule flexibility Attendance Off-task behavior Unruliness

Statistics and Job Analysis

Analyze job Select personal traits Test Measure subsequent job performance Statistically analyze relationship between trait and performance (e.g. height, intelligence, finger dexterity, supervisors ratings.

Job Analysis- a Practical Approach

Decide on a plan Develop an organization chart Use a job analysis questionnaire Obtain lists of jobs duties Compile the jobs human elements Complete your job description

Step 1: Decide on a plan

Broad outline What do you expect your sales revenue to be next year? What products will you emphasize? Internally, what will expand, reduce, consolidate or grow What new positions will you need?

Step 2: Develop an Organization Chart

Show who reports to the president and to each of his subordinates. Complete the chart by showing who reports to each of the other managers and supervisors.

Step 3: Use a Job Analysis Questionnaire

Job Analysis Job Title: Description of the job: Tasks Tools Standard for Used Performance Conditions for Performance

Step 3: Continued
Content Analysis Subject Area Title: Content Description and Relevant Definitions: Tasks Tools Standard for Conditions for Used Performance Performance

Step 4, 5, 6
Step 4: Obtain the list of Job duties,e.g. find the duties of a retail salesperson Step 5: Compile the jobs human requirements Step 6: Complete your Job description

Specialized to Enlarged Jobs

Job Enlargement: Increasing the number of same-level activities they perform. Job Rotation: Systematically moving from one job to another. Job Enrichment: Redesigning the jobs to experience more responsibility, achievement, growth and recognition.

Trends- How Organization are responding

The boundary less organization: Widespread use of teams from different departments. Re-engineering Broad banding job descriptions Performance-based job descriptions Empowered employees Skills matrices

CHAPTER 3
HUMAN RESOURCE PLANNING AND RECRUITMENT & SELECTION

LEARNING OBJECTIVES
Techniques used in employment planning and forecasting Sources of Recruitment Advantages and disadvantage of sources of recruitment How prospective employees make choices Develop a help wanted ad Developing and using application forms

Human Resource Planning

It is the process of deciding what positions the organization will have to fill, and how to fill them. It ensures the right numbers, and the right kinds of people, in the right places at the right time doing things for which they are economically most useful.

Importance of HR planning

Determining future HR Needs Coping with changes Creating highly talented work force Determination of investments in HR Overcome resistance to change Better view of HR dimensions of business decisions Manpower cost control with advance planning

Factors affecting HRP

Type and strategy of organization Organizational growth Environmental uncertainties Time horizon Quality of HR forecasting information Nature of jobs being filled Outsourcing the work

Pre-requisites for successful HR planning

Top management support Personnel records must be up to date and readily available Planning period to be long enough to allow remedial action Plans to be based on skill levels rather than aggregate

How to forecast Personnel needs

Projected turnover ( resignations ) Quality and skills of employees in relation to changing needs of the organization Strategic decisions to upgrade quality,and service of products or enter new markets Technological and other changes Financial resources available

Methods to predict Personnel needs

Trend Analysis: Study of a firms past employment needs over a period of years to predict future needs Ratio Analysis: Determining future staff needs by using ratios between, e.g. sales volume and number of employees needed

Methods to predict(cont.)
The Scatter plot: A graphical method used to help identify the relationship between two variables e.g. size of hospital and number of nurses required. Computerized forecast: Determination of future staff needs by projecting sales, volume of production, and personnel required to maintain this volume of output using software packages.

Methods to predict(Cont.)

Managerial Judgment: It plays a big role. Using your judgment help you modify the forecast based on factors e.g. projected turnover or a desire to enter new markets- you believe will be important. Forecasting the supply of inside candidates: - Qualifications inventories, personnel replacement charts, position replacement card.

Methods to predict(Conti.)

Forecasting the supply of outside candidates: - Anticipate the availability of outside candidates - General economic conditions and expected unemployment rate - Availability of potential candidates in specific occupations - Increased competition in certain occupations

RECRUITMENT

It is the process of finding and attracting capable and suitable applicants for employment. It is creating a pool of applicants from which new employees are selected.

PURPOSE OF RECRUITMENT
Increase the pool of job candidates at minimum cost Help increase the success rate of the selection process Applicants meet organization requirements Preparing potential job applicants for future needs

Factors influencing recruitment

External factors - Supply and demand - Unemployment rate - Labour market - Political and social - Sons o soil - Image

Factors influencing ..Contd..

Internal factors - Recruitment policy - Human resource planning - Size of the firm - Cost - Growth and expansion

SOURCES OF RECRUITMENT

INTERNAL : - Promotions from within - Job posting ( publicizing the open job) - Former employees - Succession planning - Employee referrals - Data bank

SOURCES (Conti.)

EXTERNAL: - Advertisement - Employment Agencies - Campus recruitment - Walk-ins - Internet - Competitors - Professional Associations

Advantages and disadvantages of sources of Recruitment

Internal : - Advantage: low cost, knowledge about the candidates, enhancement of motivation - Disadvantage: morale of those not selected, current work may suffer External: - Advantage: benefits of new skills, resentment avoided, compliance with policy

Advantages(Conti.)

External : - Disadvantage: Motivation denied to present employees - It is costly. - Adjustment of new employees take longer time

How prospective employees make choices

Objective factors: - Pay, benefits, location, Opportunity for growth, nature of work learning opportunity Critical contact factors: - Behavior of recruiter, efficiency in processing paper work, physical facility Subjective factors: - Image created, personal and emotional choices

Develop an ad
Selection of best medium: - Type of newspapers, magazines, internet Constructing the Ad: - Attract attention, develop interest, create desire by spotlighting jobs interest factors, ad must prompt action

Developing and Using application forms

Application Forms: The form that provides information on education, prior work record, and skills of an applicant. Purpose of application form: - Gives information about education and experience.

Developing(Contd..)
-Help draw conclusions about the applicants previous progress and growth - Draw tentative conclusions regarding the applicants stability - Use the data to predict the success of an applicant on the job as compared to others

Contents of the Application Form

Personal History: - Name, address, education, marital status, languages known, address to notify in emergency, membership in professional bodies, Physical health, Housing, legal conviction

Contents(Contd.)

Employment History: - Organizations worked, designations, types of responsibilities handled, reporting relationships, levels, remunerations and benefits, specific achievements, reasons of leaving the organizations, Which organization you enjoyed the most and why?

Contents(Contd.)

Specific questions: - Describe in brief why do you think you are suitable to this position. - What are your strengths and weaknesses, which will help or hinder in performing the job? - What are your achievements, which you are proud of.

Contents(Contd)

Personal Declaration: - Disability - Police conviction - Taking part in political party affairs - Authenticity of information given in the form - Signature and date - Names and addresses of references

CHAPTER 4
TESTING AND SELECTION

LEARNING OBJECTIVES

Understand the selection process Difference between recruitment and selection Methods of Selection Testing reliability and validity Method of validating the test Types of tests to be used in selection Interview Techniques and factors affecting it Guideline for more effective interviewer

Selection

Choosing the right candidate from the pool of potential candidates

Difference between Recruitment And Selection

Recruitment Creating pool of potential candidates Organization sells itself to potential candidates Selection - Choosing one from the pool - Candidates sell themselves to the organization

Difference(Contd..)

Positive process

- Negative process

Increasing the pool - Selection starts only of additional after recruitment is manpower is over

Methods of selection
Application

blank Group discussion Interview Psychological test

STEPS IN RECRUITMENT AND SELECTION PROCESS

Step-1- Employment planning and forecasting Step-2- Recruiting builds pool of candidates Step-3- Candidates complete application form Step-4- Selection tools like tests screen out most applicants Step-5- Supervisors and others interview final candidates to make final choice

Why selection is important?

Employees with right skills and attributes will do a better job in the company It is costly to recruit and hire employees There are legal implications of incompetent hiring e.g. law protects the employees more while firing, criminal background people can cause lot of damage to the organization.

METHODS OF SELECTION
Application Blank Group discussion Testing Interviewing

Application Blank
Carefully scrutinizing all information supplied by the candidate and look for unexplained gaps in education/ employment Carefully checking references Collecting sufficient information for making decision Rejecting applicants making false statements of material facts

Group discussion
Factors assessed through GD: Communication ability Logical thinking Ability to analyze Leadership & initiative Ability to work in Team Listening ability

Testing
It is the use of various tools and techniques to select the right candidate for the job. Generally these tests are used as screening device. It is objective standard method of measuring various aspects of persons personality and behavior.

VALIDITY CONCEPT OF TESTING

Validity: - The accuracy with which a test measures what it purports to measure or fulfills the function it was designed to fill. The types of validity - Criterion validity: A type of validity based on showing that scores on the test (predictors) are related to job performance(criterion)

Validity.(Contd.)

Content validity: - A test that is content valid is the one that contains a fair sample of the tasks and skills actually needed for the job in question. A data entry test used to hire a data entry clerk is an example.

Reliability concept of testing

Reliability: - The consistency of scores obtained by the same person when retested with the identical or equivalent tests. How to test Reliability: - Test Retest method: Does the same test given to the same person result in the same test outcome?

Reliability(Contd.)

Internal consistency: - This is another measure of determining reliability. For example, you have a test of vocational interests with 10 items. You administer it and then statistically analyze the degree to which responses to these 10 items vary together. This is also called as an internal comparison estimate.This is another reason why you find repetitive questions in some tests.

TYPES OF TESTS

Tests of Cognitive abilities: - Intelligence Tests: Tests of general intellectual abilities. They measure range of abilities e.g. memory, vocabulary, verbal fluency and numerical ability. - Specific cognitive abilities: such as inductive and deductive reasoning, verbal comprehension. These are also called Aptitude tests,e.g. test of mechanical comprehension.

Types.(Contd.)

Tests of Motor and Physical Abilities: - It measures motor abilities such as finger dexterity, manual dexterity, and reaction time. It measures the speed and accuracy of simple judgment as well as the speed of finger, hand and arm movements.Physical abilities such as lifting weights, life guards.

Types(Contd.)

Measuring Personality and interests: - It measure factors e.g. introversionextroversion, emotional stability, attitudes. Methods used could be direct or projective. Interest inventories compare your interests with those of people in various occupations. People will do better jobs in which they are interested, hence useful tool in selection.

Types(Contd..)

Achievement Tests: - Achievement tests measure what a person has learned. Most of the tests you take in college are achievement tests. They measure your job knowledge in the area of studies.

Types(Contd.)

Work sampling for employee selection: - A testing method based on measuring performance on actual basic job tasks. It measures actual on-the-job tasks, so it is harder for applicants to fake answers.The basic procedure is to choose several tasks crucial to performing the job and to test applicants on samples of each.

Types(Contd.)

Management assessment centers: - It is two-to three-day simulation in which 10 to 12 candidates perform realistic management tasks under the observation of experts to appraise leadership potential. Typical simulated exercises include Inbasket, leaderless group discussion, management games, individual presentations.

Other Steps in Selection Techniques

Background investigations are effective because they verify factual information and may uncover unknown aspects of the applicant not specified in the application forms. This could be even criminal records.The investigations have to be done very carefully.

CHAPTER - 5
INTERVIEWING TECHNIQUE FOR SELECTION

Learning Objectives
Understand the interview technique? Main types of selection interviews Factors that affect the usefulness of interviews Explain and illustrate each guideline for being a more effective interviewer Effectively interview a job candidate

What is Interview?
An interview is a procedure designed to obtain information from a person, face to face, through oral responses to oral inquiries A selection interview is a selection procedure designed to predict future job performance on the basis of applicants oral responses to oral inquiries

Types of Interview

Unstructured or nondirective interview: - There is generally no set format to follow, so the interview can take various directions. The interviewer pursues the points of interest as they come up in response to questions. This type of interview could be described as little more than a general conversation.

Types(Contd.)

Structured or directive interview: - An interview following a set sequence of questions.The questions and acceptable responses are specified in advance and the responses are rated for appropriateness of content. All interviewers generally ask all applicants the same questions, hence more reliable and valid.

Types(Contd.)

Situational interview: - A series of job-related questions that focus on how the candidate would behave in a given situation. Interviewees are asked to describe how they would react to a hypothetical situation e.g. a supervisory candidates is asked how he will react if his subordinates comes late on three days.

Types(Contd.)

Behavioral interviews: - A series of job-related questions that focus on how they reacted to actual situations in the past. The behavioral questions like, tell me about a time you were speaking with an irate person, and how you turned the situation around.

Types(Contd.)

Job related interviews: - A series of job-related questions that focus on relevant past job-related behaviors.The questions here do not revolve around hypothetical situations. Instead, the interviewer asks job-related questions in order to draw conclusions about the ability to handle various aspects of the job.

Types.(Contd.)

Stress interview: - An interview in which the applicant is made uncomfortable by a series of often rude questions. This technique helps identify hypersensitive applicants and those with low or high stress tolerance.The interviewer probe for weaknesses, to get the candidate lose his/her composure.

Are Interviews Useful?

Help to obtain and verify facts about candidates Interviews are good predictor of performance of candidates Help in assessing experience and ability Help in understanding the traits of personality of the candidates

What Can Undermine Success in an Interview?

First impressions (jump to conclusions) Misunderstanding the job (lack of clarity) Candidate-Order (Contrast) error (just average look better than earlier unfavorable) Nonverbal Behavior of candidates (minimal eye contact, low energy level, and low voice modulation may not get selected)

What can undermine(Contd.)

Effect of personal characteristics- gender, attractiveness, race Interviewer Behavior: ( lack of skills in interviewing e.g. talking too much or too less, unprofessionally probing for hidden meaning, dominating too much, mirror image error, not able to control talkative candidate)

How to Conduct an Interview

Do interview in a quiet room with no interruptions Review resume and make notes Know the duties of the job Focus questions on skills that are a must Dont make snap judgments Put the interviewee at ease

How to Conduct(Contd.)

Begin interview with an ice breaker Follow your list of questions Ask open end questions Ask for examples Show interest in him/ her till the end Leave time to answer questions End on a positive note Inform as to when he/she will hear decision from you

Specific factors to probe in the Interview

Knowledge and experience - basic know-how to perform, experience absolutely necessary, and unusual energy demands on the job. Motivation - essential goals or aspirations should have,anything person should not dislike, what person like doing to enjoy this job.

Specific factors.(Contd.)
Intellect - complex problems person must solve, specific intellectual aptitudes required Personality - critical personality qualities needed for success, kind of interpersonal behavior required in the job up the line, peer level, down the line, and with customers.

Find A Match
Follow the plan Probe the four factors Summarize the strengths and weaknesses Draw conclusions Compare with the job description Is he/she likely to stay?