Professional Documents
Culture Documents
Term-1, A-4
OBJECTIVE
To prepare the students to understand the changing
environment and its implications for managing the human
resources to achieve competitive advantage and corporate
excellence.
To make the students understand the linkages between
corporate mission, vision, strategies, policies and human
resource management.
To help the students to understand the intricacies of
human resource management and acquire skills in
affectively managing human resources in what ever
functional areas of management they would be engaged
Context
People create excellence. They are the
real assets of an organisation. If treated
well, they can take organisations to
commanding heights. HR Managers need
to balance the aspirations of people with
organisational demands carefully.
Function of HRM
Challenges faced by HR professionals
Meaning
HRM is a Process of bringing people and
organisations together so that the goals of
each are met.
To secure the best from people by winning
their whole hearted co-operation.
It is defined as the art of procuring,
developing and maintaining competent
workforce to achieve the goals of the
Organisation in an effective and efficient
manner
EVOLUTION OF HRM
The commodity concept : Labor considered as a commodity to
brought and sold.
The Factor of Production Concept : Better working conditions and
higher earning
The Paternalistic Concept : Collective Bargaining
Fatherly and Protective Attitude.
Welfare Schemes like Health and housing facilities,
Pension Plans Etc
Dynamics.
Resource : An Asset and an Opportunity
PM
HRM
1. Employment
Contract
go
beyond
2. Guide to
Management Action
Procedures
3. Behavior referent
4. Key relations
Labor Management
Customer
5. Speed of Decision
Slow
Fast
6. Management Role
Transactional
Transformational
Leadership
7. Communication
Indirect
Direct
Business Needs
Dimensions
PM
HRM
8. Priced Management
skills
Negotiation
Facilitation
9. Selection
Separate marginal
tasks
10. Pay
11. Conditions
Separately negotiated
12. Labor
Management
Many
Few
Division of Labor
Team Work
Harmonization
Dimensions
PM
HRM
Reached Temporary
truce
Controlled access to
courses
Learning companies
Personnel
Procedures
Labor is treated as
tool which is
expendable and
replaceable
Interest of the
organization are
uppermost
Mutuality of interests
20. Evolution
Precedes HRM
Latest in the
Evolution of the
subject
Definition
Human
Resource
Management
is
Planning, Organizing, Directing, and
Controlling
of
the
Procurement,
Development, Compensation, Integration,
Maintenance and Separation of Human
Resources to the end that individual
organizational and Social Objectives are
accomplished.
HRM model
Definition
Management
Function
Planning
Organizing
Directing
Controlling
Operative
Functions
Procurement
Development
Compensation
Integration
Maintenance
Separation
To Achieve
Individual
Functional
Organisational
Societal
CHAPTER: 2
1. Define HRP
2. Identify the five steps involved in HRP
3. Identify the employee planning process, delineate
different stages in the process and describe each step.
4. Identify pre requisites for successful planning and list
the various barriers which render planning ineffective.
Manpower Gaps
Supply Forecast
(a). Numbers
(b). Shortages
(c ).External Supply
Manpower Plans
(a). Recruitment and Selection
(b). Training and Development
(c ). Redeployment/ Retrenchmant
(d). Redundancy
(e). Retention/ Internal Mobility
(f). Productivity
Manpower Demand
a.
b.
c.
2.
Manpower Supply
a.
b.
c.
d.
3.
Requirements
a.
b.
c.
Years
1 2 3 4 5
Importance of HRP:
It is to identify
1. Future Personnel needs.
Importance of HRP:
(Contd)
6. Ability to fill key jobs with foreign nationals and the reassignment of employees from within or across national
borders is a major challenge facing international business.
7. Foundation for personnel functions: provides essential
information for designing and implementing personnel
functions such as Recruitment, Promotions, Transfers etc.
8. Increasing investments in HRP because it can increase
value (quality of workforce)
Other benefits:
1. Top Management can take better decision.
2. Better planning of assignment to develop managers can
be done.
If a surplus of employees is
expected
CHAPTER: 3
Information Gathering
This step involves decisions on three issues viz;
1. What type of data is to be collected?
2. What methods are to be employed for data collection.
3. Who should collect the data?
Job Analysis
It involves the identification and precisely
identifying the required tasks, the knowledge and
the skills necessary for performing them and the
conditions under which they must be performed.
Job analysis is the process of studding and
collecting information relating to the operation and
responsibilities of a specific job.
Job Evaluation
Job Specification
Remuneration
Job Analysis
Performance Appraisal
Personnel Information
Safety and Health
Observation
Interviews
Job
Check lists
Questionnaire
Data
Technical
Conference
Diary
Compensation manager
HR/2310
Duties
Working conditions
Report to
Job Specification
Education
Experience
Skill, Knowledge, Abilities
STRATEGIC CHOICES
Strategic Choices
Gather Information
Uses of Job Description and Job Specification
Personnel Planning
Process Information
Performance Appraisal
Hiring
Training and Development
Job Description
Job Specification
Employee Discipline
Work Scheduling
Career Planning
Source: Adapted fro Personnel/Human Resource Management by Leap and Crino, p.121
Human Sources
Job analysts
Job incumbents
Supervisors
Job experts
Source: Cyntia D. Fisher, et. Al., Human Resource Management, Houghton Miffin, 1997, p. 140.
Work Activities
A. Description of work activities (tasks)
1. How is a task performed?
2. Why is a task performed?
3. When is a task performed?
B. Interface with other jobs and equipment
C. Procedures used
D. Behaviours required on the jobs.
E. Physical movements and demands of the jobs.
Continued.
Continued.
Job Design
Job design is an attempt to match the job
requirement, with the capabilities of the job holder.
Job Rotation, Job Enlargement & Job Enrichment
are techniques of Job Design.
Job Characteristics
Psychological Needs
Feedback
Knowledge of Results
Autonomy
Sense of Responsibility,
Self-control, self-esteem
Significance, Identity,
Skill, Variety
Meaningfulness,
Achievement, Variety
Outcomes
Motivation,
Performance,
Satisfaction
with
Job,
Low
Absenteeism, Job
involvement
CHAPTER: 4
5. Types of Interview
6. Barriers to Effective selection
Recruitment
Recruitment is the process of searching for
prospective employees and stimulating and
encouraging them to apply for jobs in an
organisation
Recruitment needs are of three types Planned
Anticipated and
Unexpected
Internal forces
Recruitment Policy
Unemployment rate
HRP
Labour market
Cost
Sons of soil
Image
External Sources
Present employees
Professional or Trade
associations
Employee referral
Former employees
Previous applicants
Blind Ads
Websites
Employment exchanges
Campus recruitment
Walk-in, write-in, talk-in
Consultants, Contractors
Displaced persons
Selection
Selection is the process of choosing the most
suitable persons out of all the applications.
Steps in the Selection Process
Induction/Orientation
Induction is the process of receiving and
welcoming an employee when we first join the
company and giving him the basic information he
needs, to settle down quickly and start work.
Socialization
Its a process through which a new recruit begins
to understand and accept the values, norms,
and beliefs held by others in the organization.
Strategies of socialisation
1.
2.
3.
4.
Formal or Informal
Individual or Group
Fixed or variable time period
Investiture or divestiture
Placement
Placement is the process of assigning a specific job
to each one of the selected candidates
Placement is the determination of the job to which
an accepted candidate is to be assigned, and his
assignment to that job
CHAPTER: 5
TRAINING AND DEVELOPMENT
potential capacities
a) Technological advances.
b) Organisational complexity
c) Organisational tenure
d) Human relations
Training process
1.Determining the need &priorities for training
-organisational analysis
-operational analysis
-man analysis
2.Establishing of training goals.
3.Selecting trainees: 4 considerations
-legal requirements & formalities.
-employee needs & motivation.
-skills obsolescence & retraining.
-multi skilling(self managed teams)
Principles of training
1.
2.
3.
4.
5.
6.
7.
8.
9.
Executive Development
According to Flippo Management development
includes the process by which managers and
executives acquire not only skills and competency in
their present jobs but also capabilities for future
managerial task of increasing difficulty and scope
Executive Development
On-the-job Techniques
Off-the-job Techniques
Coaching
Lectures
Under study
Case Studies
Position Rotation
Group Discussions
Project Assignment
Conferences
Committees
Role Playing
Multiple Management
Management Games
Selected Readings
In basket Exercise
Sensitivity Training
Programmed Instruction
Job rotation
Committee/
multiple mgmt
Lectures
Case study
Role playing
Inbasket exercise
Mgmt games
Sensitivity training
conference
Developing awareness of
oneself & ones impact on
others
Experience
Coaching
Special courses
And lectures
Special Projects
nd task forces
Under Study
Programme
Conferences
Vestibule
training
Commitees
and junior
Boards
Computer
modeling
Case Studies
role
Simulation
playing
Sensitivity
training
Types of Training
1.
2.
3.
4.
5.
Orientation training
Job training
Promotional training
Refresher training
Remedial training
Career Planning
Career is a sequence of positions held by
a person during the course of a life time.
Career Stages
Exploration
Establishment
Mid career
Late career
Decline
Career Development
CHAPTER: 6
Job Evaluation
Aims at finding the relative worth of a Job.
Methods of Job Evaluation
In this session.
Phase I
Phase II
Phase III
Phase IV
Basic definitions
Compensation: Consideration for which labour is
exchanged. Wages & Salaries are compensation paid in
form of cash. It consists of Bonus, Allowance, OT, social
security payment benefits etc.
Basic definitionscontd
Wage rate: Rate of wage of a worker per unit time.
This does not include any allowance or bonuses or
over-time payment etc.
Wage Scale: Wage scale is listing of standard wage
rate in a proper sequence, according to the size of
rate.
External Factors:
Government Legislations
Market Rate
Internal Factors:
Ability to pay
Job Evaluation & PA
The Employee
Age, Qualifications, Promotions, Hazards
involved in the job, Industry involved in the job
Government Legislations
Minimum Wages Act, 1948
Minimum wages to certain sweated and
unorganized sectors covered in the act.
Can be fixed by hour, day, month or any
other longer period.
Subjected to be revised every 5 years.
Government Legislations
The Payment of Wages Act, 1936
Regular payment without any unauthorised deductions to
persons who are employed in any industrial establishment or
factory or railway or by a railway contractor whose monthly
wages are less than Rs 1600/ Permissible deductions to be made from the employees
salary:
Fine
Deductions for absence
Deductions for loss of goods entrusted to worker
House given by employer
Services provided by employer
Advance provided by employer
PF, Insurance etc.
Government Legislations
Payment of Bonus Act, 1945
The important provisions of of the Act are:
60% of the surplus (67% of incase of foreign
companies) should be allocated for the payment
of Bonus.
Salary for the purpose of bonus means Basic
pay+DA
Employees drawing up to Rs 2500/- are eligible
for bonus.
Employees dismissed of fraud, theft are
disqualified for bonus
Minimum of 8.33% or maximum of 20% bonus is
given
Workers are paid on the basis of the time spent on the work
irrespective of the amount of work done. The basis of time
may be hour, day, week or month.
Theory of Wages
Subsistence theory:
Propounded by David Ricardo
Proposes the labourers are paid to enable
them to subsist and perpetuate the race without
increase or diminution
Also known as Iron Law of Wages
Wage Fund theory:
Propounded by Adam Smith
Wage level is a function of surplus available.
Higher the fund, higher the pay, Lower the
fund, Lower the pay
Focus on employer and his capacity to pay
Theory of Wages
Residual Claimant Theory:
Propounded by Francis A. Walker
Land, labour, Capital & entrepreneurship add
value to the product.
Revenue earned is first distributed to land,
capital and entrepreneurship and the remaining
was paid to labour.
Marginal Productivity theory:
Propounded by Phillips Henry Wicksteed and
John Bates Clark
Wage determined by the labour market.
Employer continues to employ as long as the
value addition by the marginal work is more
than the cost.
Pay structure
Basic Pay:
is the basic wage decided with the criteria the skills,
experience needed, difficulty (both physical and
mental) involved, training need, responsibilities
involved and hazardous nature of the job.
Dearness Allowance (DA):
is paid to employees in order to enable them to face
the increasing dearness of essential commodities.
When prices go down DA can always be cut down to
size.
Fringe Benefits
Refers to the extra benefits paid by the
employers.
They are the
compensation.
supplementary
form
of
Hours of Work
Paid Holidays
Shift Premium
Holiday Pay
Paid Vacation
Employee Security
Retrenchment Compensation
Lay Off compensation
Safety measures
Workmens compensation
Health benefits
Counseling
Holiday Home
Education facilities
Transportation
Medical benefits
Pension
ESI
References
www.nytimes.com
CHAPTER: 7
PERFORMANCE APPRAISAL
Definition
Problems of Performance Appraisal
Methods
Performance Appraisal
PA is the process of assessing the performance
and progress of an employee or of a group of
employees and his potential for future
development.
According to Flippo, PA is a systematic, periodic
and an impartial rating of an employees
excellence in matters pertaining to his present job
and his potential for a better job
PERFORMANCE APPRAISAL
Halo Effect
(b)
Stereotyping
(c)
Central Tendency
(d)
Constant Error
(e)
Personal Bias
(f)
2. Lack of Reliability
3. Incompetence
4. Negative Approach
5. Multiple Objectives.
6. Resistance
7. Lack of Knowledge
Essentials of an Effective
Performance Appraisal System
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Mutual Trust
Clear Objectives
Standardisation
Training
Job Relatedness
Documentation
Feedback and Participation
Individual Differences
Post Appraisal Interview
Review and Appeal
MBO Process
1) Set Organisational goals
Goals of the organisation in key areas of performance are laid
down. Goals are defined in clear, precise and measurable terms.
Analysis of internal and external environment of the organisation is
made to set these goals.
2) Defining Performance Targets
Performance standards for each employee are defined.
Responsibilities based on org. charts and job descriptions. Each
subordinate writes down his own performance goals which are
work related and career oriented. Managers also writes down and
discuss them reach an agreement and put the agreed goals in
writing.
Employees at all levels are actively involved in goal setting.
3) Performance Reviews
Frequent performance reviews held and progress is assessed,
weaknesses and constraints are identified.
4) Feedback
Feedback on performance is communicated to the employee so
that he can regulate and improve upon his own performance.
Rewards are decided and new goals and targets are determined
for the next period.
Advantages of MBO
1. Ends-means Chain
Makes goals more explicit & focuses attention on key result
areas.
2. Role Clarity
Helps to avoid role ambiguity & role conflict.
3. Objective appraisal
Objective criteria for evaluating performance.
6. Coordination
Harmony between objectives at different levels
provided a sense of common direction to all.
Limitations of MBO
Difficulty in goal setting
Managers may ignore qualitative goals. Short Term
measure may override Long Term measure. Blue collar
workers are often unable to set their job goals.
Problems of understanding
Lack of Understanding
Lack of top management support & hasty implementation
may also cause failure.
Appraisal Interview
In this Interview feed back on performance is provided. The
rater explains his ratings to the employee and traits taken into
consideration for appraisal.
1. Tell & Sell Interview
The purposes of this interview are
a) To let the employee know how well he is doing.
b) To gain the employees acceptance of the evaluation.
c) To draw up a plan of improvement for him.
2. Tell & Listen Interview
Appraisal of Potential
Appraising potential is different from assessing
performance.
Potential refers to the abilities
present but not currently utilised.
It can be
judged by
a) Reviewing Present Performance
b) Analysing Personality Traits
c) Relooking at Past Experience
d) Considering Agent Qualification
e) Explaining unused knowledge of & skills of an
employee
CHAPTER: 8
COLLECTIVE
BARGAINING,
HEALTH &
SAFETY AND
STRATEGIC
HRM
Agenda
Meaning and Features
Objectives and Types of Bargaining
Process of Collective Bargaining
Collective Bargaining in India
Conditions for Effective Bargaining
Industrial Dispute
MEANING
Its a method by which
trade unions strive
protect and improve
working conditions of
workers.
the
to
the
the
FEATURES
Collective
Strength
Voluntary
Continuous
Dynamic
Power
Relationship
Representation
Flexible
1. Collective
In 2 ways:
2. Strength
Both parties bargain from a position of equal
strength.
3. Voluntary
Both the parties come to negotiating table
voluntarily for resolving several troubling issues.
4. Continuous
It does not commence with negotiations and end
up with an agreement only, it also includes
implementation of the agreement and further
negotiations.
5.
Dynamic
The way agreements are arrived at, the way they are
implemented, the mental make-up of parties involved
keeps changing.
6.
Power relationship
Management tries to retain its control on workplace
matters and unions attempt to strengthen their hold
over workers without any dilution of their powers.
7. Representation
Employers carries out negotiation with the
representatives of unions.
8. Flexible
It has sufficient flexibility because no party can
afford to be inflexible and rigid in such
situation.It is not a one way street but a give and
take process
OBJECTIVES
To settle disputes/conflicts
To protect the interests of workers
To resolve the differences between workers
and management
To avoid third party intervention
TYPES
Conjunctive/Distributive Bargaining
Cooperative Bargaining
Productivity Bargaining
Composite Bargaining
Vs
Collective Bargaining
Negotiation Skills
Settlement of disputes
between two or more parties
wherein all modify their
demands to achieve an
acceptable compromise.
It is a deliberate, explicit
event.
INDUSTRY
COMMITTEES
Engineering
CII
SAIL
TISCO
Railways, Post,Telegraph
Joint Coordination
Committees
Wage boards
Media, sugar
Cement
Cement Industry
Arbitration
Political interference
Attitude of management
Recommendation of National
Commission
Contd.
Workers should be made conscious about their
rights
One union for one plant or industry
Govt. policy should be declared
INDUSTRIAL DISPUTE
It means any dispute or difference between
employers between employers and workmen and
between workmen and workman, which is
connected with employment or non-employment or
terms of employment or with conditions of labour
of any person.
Employee and
Labor Relations
Health, Safety
and Security
W&S
Administration
Job Analysis
HRIS
Equal
Employment
Opportunity
Staffing
3. Fatal or Disability
Accidents
Internal
External
Major
Minor
Fatal
Disability
Temporary
Permanent
Partial
Total
Partial
Total
Safety Process
Strategic
Choices
Development of
Safety Policy
Organisation
of Safety
Strategic
Choices
Development of
Safety Policy
Organisation
of Safety
Cleanliness.
Lighting.
Dust Control
STRATEGIC HRM
A Strategy is a way of doing something It usually
includes the formulation of a goal and set of action
plans for accomplishment of that goal. It is a
process of formulating, implementing and
evaluating business strategies to achieve
organisational objectives.
It is a set of managerial decisions and actions that
determine the long-term performance of a
corporation. It includes environmental scanning,
strategy formulation, strategy implementation and
evaluation and control.
External
Strategy
Formulation
Evaluation and
Control
Programmes
Budget
Procedures
Strategic
Control
Process and
Performance
Corporate Strategy
Formulation
Business Unit
Strategy Formulation
Internal
Strategy
Implementation
Functional Strategy
Formulation
2. Stability strategies
3. Retrenchment strategies
(a) Turnaround
(c) Liquidation
(b) Divestment
Strategy Formulation
Strategies are formulated at three levels:
Corporate level,
Functional level
CHAPTER: 9
ETHICAL ISSUES IN HRM &
HUMAN RESOURCE AUDIT
Performance
appraisal
Race and
disability
Ethical
Issues
Employment
issues
Privacy
issues
Safety and
health
Restructuring
And layoffs
Thank You