BBA 3rd year
PERSONNEL
MANAGEMENT
(HR)
NOTES
BY -VAIBHAV RAJ
1
BBA IIIrd Yr.
Paper-XI
Personnel Management
1. Nature and Scope of HRD, environment of HRM. Strategic HRM
2. HRM planning, workers participations in management.
3. New Trends in HRD in the light of Globalization
4. Induction Development. training, methods technique and Training &
Development
5. Job Analysis, Job description, performance appraisal, Job evaluation
6. Wage & salary admin, incentives, motivation, benefits
7. Recruitment, Selection, methods of selection, placement
8. Placement and Induction, Transfer and Promotion, Training
9. HRM Audit, nature, scope & approaches Challenges of HRM. Industrial
unrest, role and importance of Trade unions
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
2
BBA IIIrd Yr.
Nature and Scope of
HRD.
Definitions of HRD:
In 1970, Leonard Nadler published his book “Developing Human Resources” in
which he coined the term ‘human resource development’ (HRD). Human resource
refers to the talents and energies of people that are available to an organization as
potential contributors to the creation and realization of the organization’s mission,
vision, values, and goals.
1. According to South Pacific Commission ‘human resource development is
equipping people with relevant skills to have a healthy and satisfying life’
2. According to Watkins, ‘human resource development is fostering long-term
work related learning capacity at individual, group and organizational level’.
3. The American Society for Training and Development defines HRD as follows:
‘human resource development is the process of increasing the capacity of the human
resource through development. It is thus the process of adding value to individuals,
teams or an organization as a human system’.
Nature of HRD:
Following points will explain the nature of human resource
development:
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
3
BBA IIIrd Yr.
(1) System
Composition: HRD is at the centre of Human
Resource System. It relates with imparting learning to the members of
the organisation for development of skills, ability and competency.
HRD is a subsystem closely related with other subsystems in the
organisation, production, marketing, finance etc.
(2)
Continuous Process: HRD is a dynamic and planned
process continuously undertaken for development of personnel’s to
enable them to face multiple challenges while performing in the
organisation. The HRD process differ from organisation to
organisation as per their requirements. The subsystems of HRD are
closely interrelated with economic, social, political and cultural bias.
(3)
Use of Behavioural Sciences: HRD draws heavily
from the behavioural sciences for the development people. It makes
use of principles and concepts of psychology, sociology and
anthropology for planning and implementation of multiple
programmes for individual and group development. Organisational
Development programmes are based on the concepts of behavioural
sciences.
(4)
Quality of Working Life: HRD aimed at improving
quality of working life in the organisation to increase the productivity.
HRD takes care of health and well-being of the employees and their
families by promoting healthy environment at the workplace. It helps
in achieving satisfaction of employees
Human Resource Development:
Features, Scope and Objectives
Human Resource Development: Features, Scope, Objectives
and Functions!
In 1970, Leonard Nadler published his book “Developing Human Resources” in
which he coined the term ‘human resource development’ (HRD). Human resource
refers to the talents and energies of people that are available to an organization as
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
4
BBA IIIrd Yr.
potential contributors to the creation and realization of the organization’s mission,
vision, values, and goals.
Features of HRD:
1. Systematic approach:
HRD is a systematic and planned approach through which the efficiency of
employees is improved. The future goals and objectives are set by the entire
organization, which are well planned at individual and organizational levels.
2. Continuous process:
HRD is a continuous process for the development of all types of skills of employees
such as technical, managerial, behavioural, and conceptual. Till the retirement of an
employee sharpening of all these skills is required.
3. Multi-disciplinary subject:
HRD is a Multi-disciplinary subject which draws inputs from behavioural science,
engineering, commerce, management, economics, medicine, etc.
4. All-pervasive:
HRD is an essential subject everywhere, be it a manufacturing organization or service
sector industry.
5. Techniques:
HRD embodies with techniques and processes such as performance appraisal,
training, management development, career planning, counselling, workers’
participation and quality circles.
Scope of HRD:
Human resource management (HRM) deals with procurement, development,
compensation, maintenance and utilization of human resources. HRD deals with
efficient utilization of human resources and it is a part of HRM.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
5
BBA IIIrd Yr.
Human resource being a systematic process for bringing the
desired changes in the behaviour of employees involves the
following areas:
1. Recruitment and selection of employees for meeting the present and future
requirements of an organization.
2. Performance appraisal of the employees in order to understand their capabilities
and improving them through additional training.
3. Offering the employees’ performance counselling and performance interviews
from the superiors.
4. Career planning and development programmes for the employees.
5. Development of employees through succession planning.
6. Workers’ participation and formation of quality circles.
7. Employee learning through group dynamics and empowerment.
8. Learning through job rotation and job enrichment.
9. Learning through social and religious interactions and programmes.
10. Development of employees through managerial and behavioural skills.
Objectives of HRD:
The prime objective of human resource development is to facilitate an organizational
environment in which the people come first. The other objectives of HRD are as
follows:
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
6
BBA IIIrd Yr.
1. Equity:
Recognizing every employee at par irrespective of caste, creed, religion and language,
can create a very good environment in an organization. HRD must ensure that the
organization creates a culture and provides equal opportunities to all employees in
matters of career planning, promotion, quality of work life, training and
development.
2. Employability:
Employability means the ability, skills, and competencies of an individual to seek
gainful employment anywhere. So, HRD should aim at improving the skills of
employees in order to motivate them to work with effectiveness.
3. Adaptability:
Continuous training that develops the professional skills of employees plays an
important role in HRD. This can help the employees to adapt themselves to
organizational change that takes place on a continuous basis.
HRD Functions:
HRD functions include the following:
1. Employee training and development,
2. Career planning and development,
3. Succession planning,
4. Performance appraisal,
5. Employee’s participation in management,
6. Quality circles,
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
7
BBA IIIrd Yr.
7. Organization change and organization development.
Notes: As per syllabus we got about HRD, but we have to also know
about HRM
HUMAN RESOURCE MANAGEMENT
Introduction: Human Resource Management is a process of bringing people
and organization together so that the goals of each are met. It is the part of the
management process which is concerned with the management of human resources
in an organization. It tries to secure best from the people by winning their whole
hearted co-operation. In short, it may be defines as the art of procurement,
developing and maintaining competent workforce to achieve the goals of an
organization in an effective and efficient manner. Henry Fayol the pioneer in the field
of management state “Take out my building take out my machines and all capital but
leave my men with me, I will become Henry Fayol again”. He highlighted that human
resources in an organization play a crucial role. The human resource refers to the
knowledge, skills, abilities, values, aptitude and beliefs possessed by the workforce in
organization.
DEFINITION: Human Resource Management is the process of recruitment,
selection of employee, providing proper orientation and induction, providing proper
training and the developing skills, assessment of employee (performance of
appraisal), providing proper compensation and benefits, motivating, maintaining
proper relations with labor and with trade unions, maintaining employee’s safety,
welfare and health by complying with labor laws of concern state or country. Many
great scholars had defined human resource management in different ways and with
different words, but the core meaning of the human resource management is how to
manage people or employees in the organization. According to Byars and Rue, “HRM
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
8
BBA IIIrd Yr.
encompasses those activities that are designed to provide for coordinate the human
resources of organizational”. According to Invancevich and Glueck, “HRM is
concerned with the most effective use of people to achieve organizational and
individual goals”. According to Edwin Flippo , HRM as “planning, organizing,
directing, controlling of procurement, development, compensation, integration,
maintenance and separation of human resources to the end that individual,
organizational and social objectives are achieved.” The National Institute of Personal
Management (NIPM) of India has defined human resources – personal management
as “that part of management which is concerned with people at work and with their
relationship within an enterprise. Its aim is to bring together and develop into an
effective organization of the men and women who make up enterprise and having
regard for the well – being of the individuals and of working groups, to enable them
to make their best contribution to its success”.
CONCEPTS OF HRM
Many people find HRM to be an unclear and strange concept. ‘This is not simply
because of having variety of meanings to this term. This confusion is mainly due to
the different interpretations found in articles and books about human resource
management. HRM is the philosophy of people management based on the belief that
human resources are extremely important for sustained business success. An
organization acquires competitive advantage by using its people effectively and
utilizing their expertise to meet clearly defined objectives. HRM is aimed at
recruiting capable, flexible and committed people. Managing and rewarding their
performance and developing key competencies.
OBJECTIVES OF HRM
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
9
BBA IIIrd Yr.
The primary objective of HRM is to ensure the availability of
competent and willing workforce to an organization. The specific
objectives include the following:
a. Human capital: assisting the organization in obtaining the right number and types
of employees to fulfill its strategic and operational goals.
b. To develop organizational climate: Helping to create a climate in which employees
are encouraged to develop and utilize their skills to the fullest and to employ the
skills and abilities of the workforce efficiently.
c. Helping to maintain performance standards and increase productivity through
effective job design; providing adequate orientation, training and development,
providing performance-related feedback; and ensuring effective two-way
communication.
d. To Promote Harmony: Helping to establish and maintain a harmonious
relationship between employer/employee.
e. Helping to create and maintain a safe and healthy work environment.
f. Developing programs to meet the economic, psychological, and social needs of the
employees and helping the organization to retain the productive employees.
g. Ensuring that the organization is in compliance with provincial/territorial and
federal laws affecting the workplace (such as human rights, employment equity,
occupational health and safety, employment standards, and labour relations
legislation) to help the organization to reach its goals.
h. To provide organization with well-trained and well-motivated employees.
i. To increase the employee’s satisfaction and self-actualization.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
10
BBA IIIrd Yr.
j. To develop and maintain the quality of work life.
k. To communicate HR policies to all employees.
l. To help maintain ethical polices and behaviour.
CHARACTERISTICS OF HRM
a. Pervasive Function: HRM is present in all the enterprises.
b. Action-Oriented: Scope of HRM is not only limited to record keeping.
c. People-Oriented: HRM is all about people at work, both as individuals and groups.
d. Development-Oriented: HRM intends to develop the full potential of employees.
e. Integrated Function: Build relations between people working at various levels in
the organization.
f. Comprehensive Function: It covers all the type of personnel.
g. Auxiliary service: It is a staff function (Advice).
h. Inter-Disciplinary Function: Utilizing knowledge and inputs drawn from
psychology, economics etc.
i. Continuous Function: HRM is not a one shot deal.
j. Involves team sprit & team work.
k. Management function.
l. Helps in achieving goals i.e. individual, organizational & social objectives
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
11
BBA IIIrd Yr.
FUNCTIONS OF HRM:
Human Resource Management is a management function concerned with hiring,
motivating, and maintaining workforce in an organisation. Human resource
management deals with issues related to employees such as hiring, training,
development, compensation, motivation, communication, and administration.
Human resource management ensures satisfaction of employees and maximum
contribution of employees to the achievement of organisational objectives. According
to Armstrong (1997), Human Resource Management can be defined as “a strategic
approach to acquiring, developing, managing, motivating and gaining the
commitment of the organization’s key resource – the people who work in and for it.”
Human Resource Management functions can be classified in following three
categories.
1. Managerial Functions
2. Operative Functions
3. Advisory Functions
Managerial Functions: The Managerial Functions of Human Resource
Management are as follows:
1. Human Resource planning in this function of HRM, the number and type of
employees needed to accomplish organisational goals is determined. Research is an
important part of this function, information is collected and analysed to identify
current and future human resource needs and to forecast changing values, attitude,
and behaviour of employees and their impact on organisation.
2. Organising in an organisation tasks are allocated among its members,
relationships are identified, and activities are integrated towards a common
objective. Relationships are established among the employees so that they can
collectively contribute to the attainment of organisation goal.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
12
BBA IIIrd Yr.
3. Directing Activating employees at different level and making them contribute
maximum to the organisation is possible through proper direction and motivation.
Taping the maximum potentialities of the employees is possible through motivation
and command.
4. Controlling after planning, organising, and directing, the actual performance of
employees is checked, verified, and compared with the plans. If the actual
performance is found deviated from the plan, control measures are required to be
taken.
Operative Functions: The Operative Functions of Human Resource
Management are as follows: Recruitment and Selection Recruitment of candidates is
the function preceding the selection, which brings the pool of prospective candidates
for the organisation so that the management can select the right candidate from this
pool.
Job Analysis and Design: Job analysis is the process of describing the nature of a
job and specifying the human requirements like qualification, skills, and work
experience to perform that job. Job design aims at outlining and organising tasks,
duties, and responsibilities into a single unit of work for the achievement of certain
objectives.
Performance Appraisal
Human resource professionals are required to perform this function to ensure that
the performance of employee is at acceptable level.
Training and Development
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
13
BBA IIIrd Yr.
This function of human resource management helps the employees to acquire skills
and knowledge to perform their jobs effectively. Training and development programs
are organised for both new and existing employees. Employees are prepared for
higher level responsibilities through training and development.
Wage and Salary Administration
Human resource management determines what is to be paid for different type of
jobs. Human resource management decides employees’ compensation which
includes - wage administration, salary administration, incentives, bonuses, fringe
benefits, and etc.
Employee Welfare
This function refers to various services, benefits, and facilities that are provided to
employees for their well-being.
Maintenance
Human resource is considered as asset for the organisation. Employee turnover is
not considered good for the organisation. Human resource management always tries
to keep their best performing employees with the organisation.
Labour Relations
This function refers to the interaction of human resource management with
employees who are represented by a trade union. Employees comes together and
forms an union to obtain more voice in decisions affecting wage, benefits, working
condition, etc.
Personnel Research
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
14
BBA IIIrd Yr.
Personnel researches are done by human resource management to gather employees'
opinions on wages and salaries, promotions, working conditions, welfare activities,
leadership, etc. Such researches helps in understanding employees’ satisfaction,
employee’s turnover, employee termination, etc.
Personnel Record
This function involves recording, maintaining, and retrieving employee related
information like - application forms, employment history, working hours, earnings,
employee absents and presents, employee turnover and other data related to
employees.
Advisory Functions:
The Advisory Functions of Human Resource Management are as follows: Human
Resource Management is expert in managing human resources and so can give
advice on matters related to human resources of the organisation. Human Resource
Management can offer advice to:
1. To Top Management: Personnel manager advises the top management in
formulation and evaluation of personnel programs, policies, and procedures.
2. To Departmental Heads: Personnel manager advises the heads of various
departments on matters such as manpower planning, job analysis, job design,
recruitment, selection, placement, training, performance appraisal, etc.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
15
BBA IIIrd Yr.
ENVIRONMENT OF
HRM.
Environment in Human Resource Management: Internal
and External Environment!
What is environment? In simple words, environment comprises all those forces
which have their bearing on the functioning of various activities including human
resource activities. Environment scanning helps HR manger become proactive to the
environment which is characterised by change and intense competition. Human
resource management is performed in two types of environments- internal and
external.
The Human Resource Environment is a part of social environment which includes
the concept, viewpoints, work culture, attitudes, efficiency, skills, productivity,
nature and behaviour of HR, employees’ demand and supply, motivational aspects,
compensation methods and industrial relation concerning of HR practices.
With the growing and integrated role and perception of social and human resource
environmental factors, there is a transformation process was emerged for the last two
decades. The shift from manual process to machinery process, from unskilled
employees to the skilled employees, from manufacturing economy to a service
economy, from machine age to the autocratic age have been accompanied by many
transformations.
– Need to Study HR Environment
Within the globalised economy, there are several significant environmental trends
and changes faced by HR managers and employees that pose major challenges. Here,
there is need to study the HR environment in order to make proper awareness in HR
practices, to raise skills and efficiency, to uplift HR productivity and to overcome the
problems and challenges.
The aspects as well as factors to be responsible to study the human
resource environment are as given here:
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
16
BBA IIIrd Yr.
1. In order to create and develop intellectual capabilities among employees,
there is need to develop the learning and knowledge attitudes among
employees;
2. 2. In order to determine and prepare social values, ethical norms and several
code of conducts within the purview of employees;
3. In order to analyse and implement effectively and perceptively the business
and labour laws and provisions;
4. For strengthen and develop the work plan for productive and constructive
activities by the employees;
5. In order to make congenial and harmonious work-culture at work places,
there is need to analyse all the relevant aspects as arising out of environmental
studies;
6. In order to solve and overcome different societal issues, evils and conflicts,
there is need to analyse the social environment;
7. For managing and organising the mechanical and technological advancement
as well as new and innovative methods at the work place;
8. In order to take sound, rational and comprehensive decision making
invariably relating to HR practices;
9. In order to determine long term strategies for different internal and external
aspects of HRM as well as to develop HR efficacies; and
10. In order to study, analyse and develop the personal skills and efficiency, there
Is a need to study HR environment.
Following are the factors affecting human resource
environment:
Factor # A. External Forces:
These factors exist outside the organization and the organization has least
control over these factors. External environment includes forces like
economic, political, technological, demographic etc. these exert considerable
influence on HRM. Each of these external forces is examined here.
Economic:
Economic forces include growth rate and strategy, industrial production, national
and per capita incomes, money and capital markets, competitions, industrial labour
and globalisation. All these forces have significant influence on wage and salary
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
17
BBA IIIrd Yr.
levels. Growing unemployment and reservation in employment also affect the choice
for recruitment and selection of employees in organisations.
Political:
Political environment covers the impact of political institutions on HRM practices.
For example, democratic political system increases the expectations of workers for
their well-being
The total political environment is composed of three institutions:
Legislature:
This is called Parliament at the central level and Assembly at the state level A
plethora of labour laws are enacted by the legislature to regulate working conditions
and employment relations.
Executive:
It is the Government that implements the law. In other words, the legislature decides
and the executive acts.
Judiciary:
This is like a watchdog above the two. It ensures that both the legislature and the
executive work within the confines of the constitution and also in the overall interest
of the people. These affect, in one way or the other, all HR activities from planning to
placement to training to retention and maintenance.
Technological:
Technology is a systematic application of organised knowledge to practical tasks.
Technological advances affect the HR functions in more than
one way:
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
18
BBA IIIrd Yr.
First; technology makes the job more intellectual or upgraded.
Second, it renders workers dislocated if they do not equip themselves to the job.
Third, job becomes challenging for the employees who cope with the requirements of
technology Fourth, technology reduces human interaction at the work place. Finally
job-holders become highly professionalized and knowledgeable in the job they
perform
.Demographic:
Demographic variables include sex, age, literacy, mobility, etc. Modem work force is
characterized by literate, women and scheduled caste and scheduled tides workers.
Now, workers are called knowledge workers’ and the organisations wherein they
work are called ‘knowledge organisations’.
As such, the traditional line of distinction between manual and non-manual workers
is getting blurred. Employees are demanding parity in remuneration and
responsibility among various categories and levels of employees.
Factor # B. Internal Forces:
The HR activities are also influenced by the internal forces.
Prominent internal forces are:
. Unions:
The firm’s personnel activities are influenced by its own union as well as the unions
of the other firms. A trade union is an association of workers or management formed
to protect their own individual interests. The role of a union is too well known. All
HR activities – recruitment, selection, training, compensation, IR and separations
are carried out in consultation with the trade unions.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
19
BBA IIIrd Yr.
Few organizations are lucky to have one union. Encouraged by ideological rifts and
personal ambitions of leaders the organized labour unions are splitting and there are
multiple unions. The Bokaro Steel Plant has for example 68 unions, and Calcutta
Corporation has 100 of them.
. Organisational Culture and Conflict:
Every organization has its own culture. Organisational culture is the result of all the
organization’s features – its people, successes, and its failures. Organisational culture
shapes the future by reflecting the past. Therefore, it becomes necessary for the HR
specialists to adjust proactively to the culture of the organization. The organizational
culture is shaped by its core values and beliefs.
For example the following cultures were adopted by different organizations:
TATA – Get Best People and Set them Free
L&T – Professional Approach
Reliance Industries – Competitive Spirit
IBM – Service
GM – Product Innovation
There is often conflict between organisational culture and employees’ attitude.
Following dualities are the reasons for conflicts:
(a) Personal Goal vs. Organisational Goals
(b) Personal Ethics vs. Organisational Ethics
(c) Rights vs. Duties
(d) Discipline vs. Autonomy
(e) Self Confidence vs. Arrogance
(f) Short Term vs. Long Term
(g) Leadership vs. Follower ship
(h) Delegation vs. Abdication
(i) Participation vs. Anarchy
(j) Doing vs. Becoming
(k) Feedback vs. Abuse
(l) Cleverness vs. Wisdom
HR department are required to develop and enforce policies in these areas as these
are not the hypothetical conflicts and they occur daily in organizations.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
20
BBA IIIrd Yr.
Professional Bodies:
The impact of the apex body, National Institute of Personnel Management (NIPM),
on HR experts is minimal. The body has not been able to prescribe its accreditation
for the HR manager. In fact the minimum professional qualification for HR
professional is also not defined by it. In spite of all this the role of NIPM in providing
the insights to the HR manager cannot be ignored. For the benefit of HR experts the
NIPM organizes the periodic training programmes, seminars, and conferences.
The code of ethics is also formulated by NIPM and it also offers the post graduate
diploma in personnel management. The code on ethics reminds HR people about
their ethical obligations towards the employees, organization, government,
profession, and society
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
21
BBA IIIrd Yr.
STRATEGIC HRM.
CONCEPT OF STRATEGIC HUMAN RESOURCE
MANAGEMENT
Strategic human resource management is the process of linking the human resource
function with the strategic objectives of the organization to improve performance.
Attracting and keeping talented and skilled employees is one of the most important
challenges organizations face in today’s dynamic business world.
No strategy, no matter how well designed, will work unless the organization has the
right people, with the right skills and behaviours, in the right roles, motivated in the
right way and supported by the right leaders.
Strategic human resource management is the proactive management of people to the
desired value to them. It is designed to help companies better meet the needs of their
employees while promoting company goals.
Definition of Strategic Human Resource Management
Experts define SHRM from a different perspective. Some of the important definitions
are listed below:
“Strategic human resource management means formulating and executing human
resource policies and practices that produce the employee competencies and
behaviours that the company needs to achieve its strategic aims.”- Gary Dessler
“Strategic human resource management is an approach to making decisions on the
intentions and plans of the organization concerning the employment relationship
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
22
BBA IIIrd Yr.
and the organization’s recruitment, training, development, performance
management, and the organization’s strategies, policies, and practices.” – Armstrong
Strategic human resource management (SHRM) is defined as “the pattern of planned
human resource deployments and activities intended to enable an organization to
achieve its goals”. – Wright & McMahan
Strategic human resource management is an approach that relates to decisions about
the nature of employment relationship, recruitment, training, development,
performance management, reward, and employee relations.
Wright and McMahan (1992) defined SHRM as ‘the pattern of planned human
resource deployment and activities intended to enable the firm to achieve its goals’.
Components of Strategic Human Resource Management
This definition implies the following four components of SHRM:
1. It focuses on an organization’s human resources (people) as the primary source of
competitive advantage of the organization.
2. The activities highlight the HR programs, policies, and practices as the means
through which the people of the organization can be deployed to gain competitive
advantage.
3. The pattern and plan imply that there is a fit between HR strategy and the
organization’s business strategy (vertical fit) and between all of the HR activities
(horizontal fit).
4. The people, practices, and planned patterns are all purposeful, that is, directed
towards the achievement of the goals of the organization.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
23
BBA IIIrd Yr.
Characteristics of Strategic Human Resource
Management (SHRM)
1. Recognition of the outside Environment:
Outside environment presents some opportunities and threats to the
organization in the form of• Laws
• Economic conditions
• Social and demographic change
• Domestic and international political forces
• Technology and so on.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
24
BBA IIIrd Yr.
Strategic human resource strategy explicitly recognizes the threats and
opportunities in each area and attempts to capitalize on the opportunities
while minimizing or deflecting the effect of threats.
2. The impact of Competition:
The forces of competition in attracting, rewarding, and using employees have
a major effect on corporate human resource strategy. Forces play out in local,
regional and national labor markets. Labor market dynamics of wage rates,
unemployment rates, working conditions, benefits levels minimum wages
legislation and competition reputation all have an impact on and are affected
by strategic human resource decisions.
3. Long-Range Focus:
A strategic human resource management should be long-range focus cause
this is not easy to change the strategic human resource policy.
4. Choice and Decision-making focus:
In other words, the strategy has a problem solving or problem preventing
focus. Strategy concentrates on the question, “what should the organization
do and why?” this action orientation requires that decisions be made and
carried out.
5. Consideration of all Personnel:
A strategic approach to human resources is concerned with all of the firm’s
employees, not just its hourly or operational personnel. Traditionally, human
resource management focuses on hourly employees, with most clerical
exempt employees also included.
6. Integration with the Corporate Strategy:
Human resource strategy adopted by a firm should be integrated with the
firm’s corporate strategy.
Objectives of SHRM:
1. To focus the HR policies, programmes and practices as the means through which
the people can be deployed to gain better and competitive advantages;
2. To manage and maintain human capital resources, skill, knowledge, efficiency and
intelligence of the employees;
3. To find out the ways and means for effective and efficient utilisation of human
resources;
4. To emphasise that human resources treated as the primary source of competitive
advantages of the organisation;
5. To integrate the HR strategies with the Business strategies for the betterment of
organisation;
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
25
BBA IIIrd Yr.
6. To make an appropriate direction for people, practices and performance towards
the achievements of the goals of the organisation;
7. To develop stable employee relations by way of effective resource utilisation,
optimizing remuneration, better productivity and better work culture; etc.
8. To recognise the needs and customised services of different market segments and
try to fulfil them properly;
9. To make an appropriate ‘cost optimisation’ with increase the efficiency of
resources; and
10. To make an appropriate and feasible plan for change environment
Strategic Perspective in HRM
Traditional V/s. Strategic HRM
Traditional HRM versus SHRM
Strategic human resource management and the traditional HR function differ from
each other in several ways. The major points of differences between the two are;
BASIS
Traditional HRM
SHRM
Responsibility
for HR
programs
Staff personnel in the HR
department
Line managers; all managers
responsible for people are HR
managers
Focus of
activities
Employee relations— ensuring
employee motivation and
productivity, compliance with laws
Partnerships with internal
(employees) and external
(customers, stakeholders, public
interest groups) groups
Role of HR
Reactive and transactional
Proactive and transformational,
change leader
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
26
BBA IIIrd Yr.
Initiative for
change
Slow, piecemeal, and fragmented,
not integrated with larger issues
Fast, flexible, and systemic,
change initiatives implemented
in concert with other HR
systems
Time horizon
Short-term
Consider various time frames as
necessary (short, medium, or
long-term)
Control
Bureaucratic control through rules,
procedures, and policies
Organic control through
flexibility, as few restrictions on
employee behaviour as possible
Job design
Focus on scientific management
principles—the division of labor,
independence, and specialization
Broad job design, flexibility,
teams and groups, and crosstraining
Important
investments
Capital, products, technology, and
finance
People and their knowledge,
skills, and abilities
Accountability
Cost centre.
Investment centre.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
27
BBA IIIrd Yr.
HRM planning.
•
Concept, HRP process, Strategic planning and HR planning, Need
of human resource planning, Human resource information system,
Techniques of forecasting HR demand and supply, Strategic
directions in human resource planning, HRP practices in Nepalese
organizations.
• Human resource planning is the process of forecasting,
development, and controlling human resource in an organization.
•
According to Stone, “Human resource planning is the process by
which an organization attempts to ensure that it has the right
number of qualified people in the right jobs at the right time.”
•
According to Scott, "Human resource planning is the process for
ensuring that the human resource requirements of an organization
are identified and plans are made for satisfying those
requirements.”
Characteristics of Human Resource Planning (HRP)
a. Goal Directed (Achieving employee’s goals as well as overall
organizational goal)
b. Future-oriented (Forecasting future work force)
c. Quantitative and qualitative (Estimating right number of
employees needed with right skills and competencies at right time)
d. System Oriented (Determining future human resources
shortages and surpluses)
e. Time Horizon (HRP can be short i.e. one year or long term i.e.
five year or more)
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
28
BBA IIIrd Yr.
Importance of Human Resource Planning
a. Uncertainty Reduction Globalization, New technology, Org.
restructuring, and workforce diversity produce uncertainties.
Matching demand and supply by determining future shortage and
surpluses of human resources.
b. Objective Focused HR plans are linked to overall corporate plan.
This facilitates better coordination for objective achievement.
c. Environmental Adaptation HR requirements are identified
through Job analysis. Evaluate competencies of current human
resources and updated regularly so as to adjust changing
environmental forces. Presented by: Binod Ghimire
d. Acquisition of Human Resources Facilitates recruitment and
selection of employees. Also supports succession planning.
e. Utilization of Human Resources Right man is made responsible
for right job to ensure their productive utilization. Increase
efficiency.
f. Control of Human Resources HR planning sets standard
according to which quality and quantity of employees are
controlled.
HR Planning Process
•
•
•
•
•
Environmental Analysis
Determining HR objectives and Policies
Human Resource Forecast
Action Plan
Control and Evaluation
A. Environmental Analysis –
It refers to the systematic monitoring of the external forces
influencing the organization. The following forces are essential
for HRP.
 Economic factors, including general and regional
conditions.
 Technological changes
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
29
BBA IIIrd Yr.
 Demographic changes including age, composition and
literacy,
 Political and legislative issues, including laws and
administrative rulings
 Social changes.
By scanning the environment for changes that will affect
an organization, managers can anticipate their impact
and make adjustments early.
B. Determining HR objectives and policies  HR plan is usually derived from the organizational objectives.
Specific requirements in terms of number and characteristics of
employees should be derived from organizational objectives.
 Once the organizational objectives are specified,
communicated and understood by all concerned, the HR
department must specify its objective and policy with regard to
HR utilization in the organization.
C. Human Resource Forecast  Once current human resources are analysed and HR
objectives and policies are determined, the next step is to
demand and supply forecast.
It is to determine future requirement of number of employees,
skill required and the internal and external supply.
D. Action Plan  It is known as manpower planning implementation. HR
implementation requires converting an HR plan into
action.
A series of action are initiated as a part of HR plan
implementation such as recruitment, selection and placement,
socialization, training and development etc.
E. Control and Evaluation  Monitoring and evaluation to ensure that HR planning
matches the HR objective and policies. HR manager
develop certain HR indicators in order to know the
progress of HR management.
Evaluation is also done with respect to employment cost against
the budget and wastage accrued so that corrective action can be
taken in future. (Continuous process, timely feedback).
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
30
BBA IIIrd Yr.
Human Resource Planning – Objectives:
The Main Objectives of HRP are:
(i)
Proper assessment of human resources needs in future.
(ii)
Anticipation of deficient or surplus manpower and taking the corrective
action.
(iii)
To create a highly talented workforce in the organization.
(iv)
To protect the weaker sections of the society.
(v)
To manage the challenges in the organization due to modernization,
restructuring and re-engineering.
(vi)
To facilitate the realization of the organization’s objectives by providing
right number and types of personnel.
(vii)
To reduce the costs associated with personnel by proper planning.
(viii)
To determine the future skill requirements of the organization.
(ix)
To plan careers for individual employee.
(x)
Providing a better view of HR dimensions to top management.
(xi)
Determining the training and development needs of employees.
Human Resource Planning at Different Levels:
Different institutions make HRP at different levels for their own
purposes, of which national level, industry level, unit level,
departmental level and job level are important.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
31
BBA IIIrd Yr.
1. National level – Generally, government at the centre plan for human
resources at the national level. It forecasts the demand for and supply of
human resource, for the entire nation.
2. . Sector level – Manpower requirements for a particular sector like
agricultural sector, industrial sector or tertiary sector are projected based on
the government policy, projected output/operations, etc.
3. Industry level – Manpower needs of a particular industry like cement,
textiles, chemical are predicted taking into account the output/operational
level of that particular industry.
4. Unit level – This covers the estimation of human resource needs of an
organisation or company based on its corporate/business plan.
5. Departmental level – This covers the manpower needs of a particular
department in a company.
6. Job level – Manpower needs of a particular job family within department
like Mechanical Engineer is forecast at this level.
7. Information technology – The impact of information technology on
business activities, human resource requirement and human resource plan is
significant. It requires multi skilled experts, preferably less in number.
Human Resource Planning – Prerequisites:
1. There should be a proper linkage between HR plan and organizational plan.
2. Top management support is essential.
3. Proper balance should be kept between the qualitative and quantitative
approaches to HRP.
4. Involvement of operating managers is necessary.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
32
BBA IIIrd Yr.
5. Proper alignment between short-term HR plans and long-term HR plans
should be there.
Workers
Participation in
Management.
Definition,
Characteristics and Objectives! Definition: Like other behavioural terms,
WPM means different things to different people depending upon their
objectives and expectations. Thus, WPM is an elastic concept. For example,
for management it is a joint consultation prior to decision making, for workers
it means codetermination, for trade unions It is the harbinger of a new order
of social relationship and a new set of power equation within organisations,
while for government it is an association of labour with management without
the final authority or responsibility in decision making.
Let us also go through some important definitions of WPM.
According to Keith Davis, “Workers’ participation refers to the mental and
emotional involvement of a person in a group situation which encourages him
to contribute to group goals and share in responsibility of achieving them”.
In the words of Mehtras “Applied to industry, the concept of participation
means sharing the decision-making power by the rank and file of an industrial
organisation through their representatives, at all the appropriate levels of
management in the entire range of managerial action”.
A clear and more comprehensive definition of WPM is given by the
International Labour Organisation (ILO).
According to the ILO:
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
33
BBA IIIrd Yr.
“Workers’ participation may, broadly be taken to cover all terms of association
of workers and their representatives with the decision-making process,
ranging from exchange of information, consultations, decisions and
negotiations to more institutionalized forms such as the presence of workers’
members on management or supervisory boards or even management by
workers themselves as practised in Yugoslavia”.
In Yugoslavia, WPM is governed by the Law on Workers’ Management of
State Economic Enterprises and Higher Economic Association. The Act
consists of a three-tier participation structure: collective bargaining, workers’
council, and hoard of management.
In fact, the basic reason for differences in perception of WPM is mainly due to
the differential pattern of practices adopted by various countries while
implementing workers’ participation in management.
For example, in Great Britain and Sweden, WPM is in the form of Joint
Consultation through Joint Consultative Committees, Works Committees in
France, Co-determination Committees in West Germany, Joint Work Council
in Belgium, Workers’ Council and Management Board in Yugoslavia and
Union Management Co-operation in USA.
In India, WPM is in the form of, what we call Labour Management
Cooperation and Workers’ Participation in Management. It is implemented
through the agencies like Works Committees, Joint Management Councils
(JMCs) Shop Councils, Unit Councils and Joint Councils. Notwithstanding,
these different forms of WPM differ only in degree, not in nature.
Be the perceptual differences as these may, WPM is a system of
communication and consultation, either formal or informal, by which the
workers of an organisation are kept informed, as and when required, about
the affairs of the undertaking and through which they express their opinion
and contribute to decision-making process of management.
Characteristics:
The following are the main characteristics of WPM:
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
34
BBA IIIrd Yr.
1. Participation implies practices which increase the scope for employees’
share of influence in decision-making process with the assumption of
responsibility.
2. Participation presupposes willing acceptance of responsibility by workers.
3. Workers participate in management not as individuals but as a group
through their representatives.
4. Worker’s participation in management differs from collective bargaining in
the sense that while the former is based on mutual trust, information sharing
and mutual problem solving; the latter is essentially based on power play,
pressure tactics, and negotiations.
5. The basic rationale tor worker’s participation in management is that
workers invest their Iabour and their fates to their place of work. Thus, they
contribute to the outcomes of organization. Hence, they have a legitimate
right to share in decision-making activities of organisation.
Objectives:
The objectives of WPM are closely netted to the ration-able for WPM.
Accordingly, the objectives of WPM vary from country to country depending
on their levels of socio-economic development political philosophies,
industrial relations scenes, and attitude of the working class.
To quote, the objective of WPM is to co-determine at the various levels of
enterprises in Germany, assign the final to workers over all matters relating to
an undertaking in Yugoslavia, promote good communication and
understanding between labour and management on the issues of business
administration and production in Japan, and enable work-force to influence
the working of industries in China, for example.
In India the objective of the government in advocating for workers’
participation in management, as stated in the Industrial Policy Resolution
1956, is a part of its overall endeavour to create a socialist society, wherein the
sharing of a part of the managerial powers by workers is considered necessary.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
35
BBA IIIrd Yr.
The objective of WPM, as envisaged in the Second Five Year Plan
of India is to ensure:
1. Increase in productivity for the benefit of all concerned to an enterprise, i.e.,
the employer, the employees and the community at large.
2. Satisfaction of worker’s urge for self-expression in the matters of enterprise
management.
3 Making employees better understood of their roles in the organisation.
In ultimate sense, the objective of WPM in India is to achieve organizational
effectiveness and the satisfaction of the employees.
Accordingly, the objectives of WPM in India are to:
1. Promote mutual understanding between management and workers, i.e.,
industrial harmony.
2. Establish and encourage good communication system at all levels.
3. Create and promote a sense of belongingness among workers.
4. Help handle resistance to change.
5. Induce a sense among workers to contribute their best for the cause of
organisation.
6. Create a sense of commitment to decisions to which they were a party.
Levels of Participation:
Having known the objectives of WPM, the question then is to what extent
workers can participate in decision-making process. In other words, it is
important to know the extents/levels of co-determination in an organisation.
Viewed from this angle, Mehtras has suggested five levels of workers’
participation ranging from the minimum to the maximum. Since these levels
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
36
BBA IIIrd Yr.
of workers’ influence the process and quality of decision making in an
organisation. We are therefore highlighting here these levels briefly ranking
them from the minimum to the maximum level of participation.
Informative Participation:
This refers to management’s information sharing with workers on such items
those are concerned with workers. Balance Sheet, production, economic
conditions of the plant etc., are the examples of such items. It is important to
note that here workers have no right of close scrutiny of the information
provided and management has its prerogative to make decisions on issues
concerned with workers.
Consultative Participation:
In this type of participation, workers are consulted in those matters which
relate to them. Here, the role of workers is restricted to give their views only.
However the acceptance and no acceptance of these views depends on
management. Nonetheless, it provides an opportunity to the workers to
express their views on matters involving their interest.
Associative Participation:
Here, the role of the workers’ council is not just advisory unlike consultative
participation. In a way, this is an advanced and improved form of consultative
participation. Now, the management is under a moral obligation to
acknowledge, accept and implement the unanimous decision of the council.
Administrative Participation:
In the administrative participation, decisions already taken are implemented
by the workers. Compared to the former three levels of participation, the
degree of sharing authority and responsibility by the workers is definitely
more in this participation.
Decisive Participation:
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
37
BBA IIIrd Yr.
Here, the decisions are taken jointly by the management and the workers of
an organisation. In fact, this is the ultimate level of workers’ participation in
management.
New Trends in HRD
in the light of
Globalization.
Globalization is causing businesses to rethink their human
resources strategies. Organizations can now recruit employees
from all around the world and subsequently are able to sell
products and services across geographic and cultural
boundaries. The effects of globalization on HR have initiated a
number of trends in the workplace.
International Recruitment and Hiring
Globalization allows businesses to recruit and hire employees from all around the
world. This is particularly attract to smaller businesses who, while may not be able
to have more than a few employees, can fill their available positions with the very
best talent, even if that talent doesn't live locally. The HR trend of international
recruitment and hiring is focused on bringing diversity to the organization and it
recognizes that employees from abroad may be able to provide unique perspectives
on customer service, marketing and sales, among other areas of the business.
Progressive Approaches to Benefits and
Compensation
Similar to the trend of recruiting abroad from a diverse pool of applicants is a
progressive approach to providing benefits and compensation to employees.
Federal laws mandate minimum wage and basic employee benefits, however,
globalization has brought new ideas to business owners and managers on how to
reward their employees both as a standard policy and as a reward for hard work.
Taking their cues from abroad, some U.S.-based businesses are now offering
paternity leave, extended holiday time, work-from-home programs and flexible
childcare options for their employees. These approaches to compensation allow
employees to balance their work with their personal life and are aimed to increase
happiness and productivity among the staff.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
38
BBA IIIrd Yr.
Introduction of Social Media
Social media and mobile technologies are a hot trend in HR globalization. Social
and mobile tech enables HR to expand its services by more easily and rapidly
communicating with employees. If the office will be closed for inclement weather,
for instance, HR can send social media messages to let employees know as opposed
to using a phone tree. Social and mobile tech also helps HR to increase the value of
the company by providing the business with employees who are tech savvy and
eager to embrace new ways of doing business.
Professional Development
Professional development training programs have also arisen as a trend in response
to global compensation approaches. Professional development is about providing
employees with opportunities for growth outside the day-to-day routine of the
organization. For example, HR might send employees to training seminars to
sharpen their IT skills for use in global social media campaigns, or customer service
personnel might be sent to language courses to enhance their ability to
communicate with customers who live abroad. Such professional development
programs keep employees motivated and feeling rewarded, and the new skills these
employees learn are put to direct use within the company.
Global Trends That Will Affect Human
Resources
Human resources -- the management of an organization's policies and procedures
relating to its employees -- has historically been seen as a somewhat insular task.
But with the rise of globalization and mass communication, the world is becoming a
smaller place. Businesses, even small ones, are now connected across cultural and
geographic boundaries. As a result, global trends are affecting human resources
management within organizations of all sizes.
Training and Professional Development
One of the emerging trends in global human resources management is diversity
training and cross-cultural professional development. This area of HR includes all
types of learning opportunities and further education programs that an
organization offers to its employees, including sponsoring formal university
coursework, opportunities to attend conferences and networking events and onthe-job training seminars. The purpose of these programs is to encourage
employees to become more diverse both in their skill set (for example, by learning a
new language) and in their core competencies (the ability to understand how
business is done in a foreign country, for instance).
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
39
BBA IIIrd Yr.
Global Recruitment
Organizations are also realizing that the best matches for the jobs within the
company may not necessarily be people living locally. A push toward global
recruitment is replacing the traditional model of employing from within the
community or promoting from within the organization. Global recruitment is
focused on getting the best person in the available position, no matter if that person
lives locally or 5,000 miles away. HR teams adopting this global recruitment trend
value the diversity that non-native or non-local employees can bring to an
organization, and they seek to bring those people on board even if there's an added
cost in terms of applying for visas or relocating families.
Cross-Border Legal Compliance
The effects of globalization on HR have also brought attention to the importance of
cross-border legal compliance. Companies now have the potential to sell products
and services in many different markets through use of the Internet and postal
service. Doing so brings with it added tax, customs and border security concerns to
the human resources division. Selling products overseas may involve the need to
apply for additional permits or to pay tax within a different jurisdiction. Employing
workers in a foreign country will mean that the company has to follow the laws
concerning labor and compensation in that location. All of these cross-border legal
concerns are important for the organization to grasp, because there may be serious
consequences attached to failure to follow the law.
Benefits and Compensation
A final global trend affecting human resources is within the area of benefits and
compensation. While federal laws in the United States mandate the amount of
vacation and sick time employees are allowed, many foreign countries, particularly
in Europe, have much less-stringent rules and grant their employees much more
holiday and family leave time than do traditional American companies. As a result,
some globalized companies are embracing these progressive HR policies on
benefits and compensation and have begun offering things like paternity leave,
extended vacation time and flexible working hours to all of their employees,
including the ones based in the United States.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
40
BBA IIIrd Yr.
NOTE:-According to topic head we got about what trends of HRD in Globalisation is
going on Now, we also have to know about another factors apart from topics in
syllabus.
Impact of Globalization on HRM
Globalization symbolizes free flow of technology and human resources across
national boundaries presenting an ever-changing and competitive business
environment. Globalization is a process that is drawing people together from all
nations of the world into a single community linked by the vast network of
communication technologies. This aspect of globalization has also affected the HRM
in the business world of today. HR managers today not need to rely in a small limited
market to find the right employees needed to meet the global challenge, but today
they can recruit the employees from around the world. The future success of any
organizations relies on the ability to manage a diverse body of talent that can bring
innovative ideas, perspectives and views to their work. Thus, a HR manager needs to
be mindful and may employ a ‘Think Global, Act Local’ approach in most
circumstances. Many local HR managers have to undergo cultural-based Human
Resource Management training to further their abilities to motivate a group of
professional that are highly qualified but culturally diverse. . Furthermore, the HR
professional must assure the local professionals that these foreign talents are not a
threat to their career advancement. In many ways, the effectiveness of workplace
diversity management is dependent on the skilful balancing act of the HR manager.
Global HRM refers to Human Resource Management practices that deal with
managing a diversity of workforce from all around the world.
The impact of globalization on HRM is as follows:
•
Managing Cultural Diversity: Managing different employees from different
cultures in the same organisation is a complex activity. Employees from each country
think differently, perceptions are different towards work culture, the languages
change, vocabulary differs and even non-verbal communications are quite different
from each region. This makes the task of the human resource department
challenging due to globalization.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
41
BBA IIIrd Yr.
•
Managing Expatriates: Preparing the home country employees to work in a
different country is a herculean task. The beliefs, value system, culture, attitude are
diverse in nature. Recruiting, retaining and motivating expatriates have a major
impact on the business. Understanding expatriate’s need is a prime concern for the
human resource team.
•
Difference in the Employment Laws: The employment laws or the labour laws
differ from one country to another. The understanding of not only the monetary
benefits becomes essential but also the non-monetary benefits such as leaves, flexi
timings are important to be included in the human resource policy.
•
Managing Outsourcing of employees: Outsourced employees to manage
business are the big impact of globalization. Managing the BPO, KPO employees
working with a different culture, different language, working in completely opposite
shifts is a new shift in the area of human resources. Managing the expectation of
these employees is a challenge for today’s HR and this challenge is a result of
globalization.
•
Managing virtual employees: Majority of the information technology based
organisations have employees working “on-site” at a client’s location which is
completely new to them. The virtual employees have to be managed, retained and
motivated in a different way unlike the “off-shore” employees. This practice of
managing the virtual employees is a result of organisations going global.
•
Corporate Social Responsibility: Corporate houses actively participating in the
practice of doing for the betterment of the society has emerged from the western
countries. It is one of the ways make the presence felt in the host countries.
Employees are encouraged to participate in such activities which help to reduce
stress working with MNC’s.
•
Coping with flexible working hours: The practice of flexible working hours has
emerged as one of the retention initiative of workforce specially women employees
who can maintain the work life balance. This practice of flexible working hours is
result of working beyond normal time zones. Organisations which have a global
presence need the attention of employees at various time zones which is not possible
for all employees doing a continuous shift. Hence this practice emerged from
globalization and has a positive impact on the HRM practice.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
42
BBA IIIrd Yr.
•
Evolution of more part-time and temporary work (especially among
women, the elderly and students): The concept of part time employment,
contract jobs have emerged from the practice of MNC’s since hundred percent of
workforce on permanent payroll is quite a expensive matter to these organisations.
Majority of large MNC’s in the information technology sector has their employees
under contract employment.
•
Coping up with emerging technologies & quality measures: Every employee
in today’s leading organisation is being trained with the latest technologies especially
with the ERP concept like SAP or PeopleSoft. This step has been taken by MNC’s to
equip the employees with latest technology enabling the employees to cope up with
the changing technology. Certifications like Six Sigma are availed to employees to
manage the business on an international platform.
•
Changing perspective from subordinates to business partners: The shift
has been observed in today’s MNC that culture of subordinates is getting extinct.
Employees have been treated as business partners’ i.e. every employee is responsible
towards the growth of the organisation and considered as a partner in the company.
This impact is the result of globalization.
International Human Resource Management:
Performing the HRM functions across the globe for the organisation.
International human resource management is all about the world wide management
of human resources – Process of sourcing, allocating, and effectively utilising their
skill, knowledge, ideas, plan and perspective in responding to TQM.
The process of procuring, allocating and effectively utilizing human resources in an
international business is called International Human Resource Management or
IHRM. International Human Resource Management is the process of sourcing,
allocating and effectively utilizing human resources in a multinational organization.
Purpose of IHRM:
•
•
To enable the firm
The multinational corporations (MNCs), to be a successful globally
Dimensions of IHRM:
According to P.V. Morgan: IHRM is the interplay among 3 dimensions:
•
•
•
HR Activities
Types of employees
Types of Countries
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
43
BBA IIIrd Yr.
Induction Development.
What is Induction — Meaning
The introduction of new employees into an organisation is important and it demands
special consideration. There is good evidence that the subject seldom receives the
very careful attention that it truly needs by the employing organisation. Analysis of
employee turnover statistics show that a higher employee turnover occurs during the
first years of employment.
Induction or orientation familiarizes the new employee with the organisation, its
mission and goals, culture, systems and procedures and expectations from the
employees.
Orientation or induction is the process of introducing new employees to an
organization, to their specific jobs and departments, and in some instances, to their
community. It also marks the beginning of the process by which employees are
integrated into the organization.
Induction (also known as orientation or indoctrination) is the process of introducing
a new employee to the organization, and the organization to the employee by
providing him relevant information.
An orientation program principally conveys 3 types of
information, namely:
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
44
BBA IIIrd Yr.
(a)
General information about the daily work routine to be followed
(b)
A review of the organization’s history, founders, objectives, operations and
products or services, as well as how the employee’s job contributes to the
organization’s needs.
(c)
A detailed presentation of the organization’s policies, work rules and
employee benefits.
Induction Definitions Provided by Flippo and Michael
Armstrong
According to Edwin B. Flippo, “Induction is the welcoming process to make the
new employee feel at home and generate in him a feeling of belongingness to the
organisation”.
According to Michael Armstrong, “Orientation or induction is the process of
receiving and welcoming an employee when he first joins a company and giving him
the basic information he needs to settle down quickly and happily and start work”.
Concept
Induction, also called orientation, is designed to provide a new employee with the
information she or he needs to function comfortably and effectively in the
organisation. A formal definition of orientation is –
“Orientation is planned induction of the employees to their jobs, their co-workers
and the organisation.” [Robert and John]
Typically, orientation conveys three types of information:
1. General information about the daily work routine.
2. A review of organisation’s objectives, operations, products and services as
well as job content of new employee.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
45
BBA IIIrd Yr.
3. A detailed presentation on organisational policies, work rules, employee
benefits, etc.
Objectives
The objectives of Induction are as follows:
1. To welcome the new employee, relieve his anxieties, and make him feel at
home.
2. To develop a rapport between the company and the new employee and make
him feel part of the organisation as quickly as possible.
3. To inspire the new employee with a good attitude toward the company and his
job.
4. To acquaint new employees with company goals, history, management
traditions, policies, departments, divisions, products, and physical layouts.
5. To communicate to new employees what is expected of them, their
responsibilities, and how they should handle themselves.
6. To present the basic information the employee wants to know: rules and
regulations, benefits, payday, procedures, and general practices.
7. To encourage the new employee to have an inquiring mind, show him how to
learn, and assist him toward ‘a discipline effort in developing additional
knowledge.
8. To provide basic skills, terms, and knowledge of the business world and help
the new employee in human relations.
Need and Importance:
1. Reducing Anxiety of New Employees – An employee’s first impression is
the last impressions. If a new employee is made to feel welcome and comfortable in
the new environment, particularly by his immediate superior and co-workers his
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
46
BBA IIIrd Yr.
anxiety would reduce and he would have the positive attitude towards the
organisation and his job.
2. Reducing Reality Shock – Every employee has some expectations when he
joins his new job and when these expectations do not match with the real situation,
the employee experiences a reality shock. An effective orientation programme helps
in reducing these reality shocks by providing more real expectations to the new
employees.
3. Reduces Employee Turnover – If a new employee gets the impression of
being unwanted or ineffective he may react to these feelings by resigning. Turnover is
generally high during this initial period and the effective orientation in this phase can
reduce this costly reaction.
4. Accommodating Employees – The orientation programme helps the new
employees to accommodate with the existing employees by developing the
understanding on the various aspects relating to the job with which the new
employee is expected to confront.
5. Familiarizing the New Employees – Good orientation saves time
because the employee would become familiar with his work, supervisor, and
co-workers. Explaining the functioning of the organisation and the
department during orientation will save the colleagues’ valuable time later in
explaining the job.
6. Developing Realistic Expectations – Effective orientation develops
realistic expectations by letting the employee know what is expected from him
in terms of values, attitudes, work procedures, norms of behaviour and dress
code. All organisations have their own set of values, beliefs, code of conduct
which expects-their employee to follow. If the new employee learns and
imbibes these during orientation it would be much easier for him to
incorporate them in his work values.
7. Increases Enthusiasm – Through effective orientation the newcomer is
made aware of his job and how his job fits with the total organisation; how he
can contribute to the organisational effectiveness and to whom he may look
for in case of any problem. This creates more loyalty and enthusiasm in the
mind of the newcomer.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
47
BBA IIIrd Yr.
Benefits
In some organizations, a formal employee induction program is almost non-existent
or, when done, is performed in a haphazard manner. This is unfortunate since there
are a number of very practical and cost-effective implications for conducting a wellrun program.
Some of the recognized benefits include:
i. Lower turnover, especially new recruit turnover
ii. Increased productivity
iii. Improved employee morale
iv. Lower recruiting and training costs
v. Facilitation of learning
vi. Reduction of the new employee’s anxiety
vii. Induction helps to build up a two-way channel of communication between
management and workers.
viii. Proper induction facilitates informal relation and team work among employee.
ix. Effective induction helps to integrate the new employee into the organization and
to develop a sense of belonging.
x. Induction helps to develop good relation.
xi. A formal induction program proves that the company is taking interest in getting
him off to good start.
xii. Proper induction reduces employee grievances, absenteeism and labour turnover.
Induction is helpful in supplying information concerning the organization, the job
and employee welfare facilities.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
48
BBA IIIrd Yr.
Major Problems
Following are the problems in the way of effective induction:
1. Lack of Training – The supervisor or immediate boss who provides the
orientation to the new comer may not be trained about the methods of
orientation or sometime the supervisor may not have the enough time to
orient the new comer.
2. Large Information – The new comer is at once provided with the lot of
information about the mission, vision, goals, objectives, organisational
structure, departments, duties, responsibilities etc. that it becomes difficult
for him to understand all such at once.
3. Administrative Work – When an employee joins the firm he has to fulfil many
administrative formalities and at the same time he is provided the orientation
which increases the pressure in the new comer.
4. Initial Jobs – At the initial stage employee is only provided with the manual
jobs that discourages job interest and company loyalty. So, the initial jobs to
the new comer influence to a great extent the interest of the employee in the
organisation.
5. Trial and Error Induction – Employee is provided with the sketchy induction
under the mistaken belief that trial and error method is the best method of
induction. This leads to the increase in confusions and complexities in the
mind of the new comer.
6. Balance in the Different Levels of Orientation – The new comer is forced to
balance between the broad orientation by the HR department and narrow
orientation at the department level.
7. Other Problems –
Some of the other problems in the way of effective orientation
programme are:
(i) Employee is put to job so soon that his mistake can put the company to loss also.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
49
BBA IIIrd Yr.
(ii) Sometimes the newcomers are assigned with the challenging jobs, and their
failure can discourage them to perform further.
(iii) Employee can develop wrong perception when he is asked to perform number of
small jobs because of the short time span spent on the each job.
It is done in order to enjoy the below mentioned benefits:
i.
It enables the new employees to learn their jobs more quickly.
ii.
Creates a sense of belongingness and satisfaction in newcomers
iii.
It reduces employee anxiety, fear, nervousness, absenteeism and
grievances.
iv.
It reduces attrition rate.
v.
It facilitates informal communication and public relations.
vi.
It enables team building and two-way communication.
vii.
It enhances productivity quickly.
viii.
To protect the less aware and illiterate employees from mischievous
people.
ix.
It leads to employee confidence, motivation and morale.
x.
It helps the new entrants to overcome reality shock and to get along with
others.
The induction process
•
Induction need not be a very formal process but it needs to be properly
managed. In many organisations it will be carried out informally by the new
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
50
BBA IIIrd Yr.
starter's manager or supervisor on a day-to-day basis. Nevertheless, having a
structured checklist to follow is useful for both parties. Most induction will
consist of meeting and talking with new colleagues, watching activities and
asking questions. It may be appropriate to provide certain information in
written form; and if
•
The organisation has a company handbook, this can often act as an aide
memoire covering important aspects of the company organisation and how it
functions.
•
If a group of new employees is recruited at the same time, it may make sense
to hold group induction sessions on the common topics to be covered discussion, videos, slide presentations can all add to the effectiveness of the
programme.
•
Even people transferring from one part of the organisation to another need
induction into their new area. Don't assume that they will know the relevant
people or the skills they will need in
•
The new job. However, they may need a more individually tailored induction
programme to meet
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
51
BBA IIIrd Yr.
Training, methods
technique and Training &
Development
➢ Training and development of human resources has evoked a great deal of
interest in recent years. Human resource management has two basic
approaches- a reactive, or problem-solving approach; and a proactive, or
forward-looking approach. Training is used in both. Training is a systematic
process of changing the behaviour, knowledge, and attitudes of present
employees to improve the match between employee characteristics and
employment requirements.
➢ At the time of hiring, no one is perfect and some training and education
becomes a must. No organization has a choice of whether to develop
employees or not; the only choice is that of method. If there is no organized
programme, then development will be mostly self-development while learning
on the job.
➢ In the present day radical changes, organizations are striving hard to maintain
a viable and knowledgeable work force. Obviously, employee training and
development has become not only an activity that is desirable but also an
activity that an organization must commit resources to. Training has become a
big business and getting bigger.
➢ A sad state of affairs is that in spite of good budgets, best intentions, and true
needs, several training programmes fail to achieve lasting results. Nothing can
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
52
BBA IIIrd Yr.
succeed with vague goals. If one doesn’t know where he is going, neither can
he tell if he gets there nor can he tell if he lands somewhere else.
➢ Employee training attempts to improve skills, or add to the existing level of
knowledge so that the employee is better equipped to do his present job, or to
prepare him for a higher position with increased responsibilities. Continuous
growth and development of employees makes an organization viable and it
adapts itself to changing environment.
➢ New problems, new procedures and developments in technology, new
knowledge and job requirements are constantly creating the need for training
– thus making it a continuous process. Coping with the changes essentially
involves increased emphasis on human resources development.
➢ Development of human resources involves acquisition of new abilities with
changed skills, knowledge and attitude of the employee necessary for better
performance. Development includes both training to increase skill in
performing a specific job and education to increase general knowledge of the
total environment.
➢ Thus, training and development activities can become meaningful when
integrated with the overall human resource development strategy of an
organization. They have assumed great importance with the phenomenal and
unprecedented changes in the internal and external environments of today’s
organizations.
➢ Training is supposed to bring about change in the behaviour of employees so
as to enable them to meet the current and future requirements of their tasks
and roles.
➢ Thus, training is concerned with the teaching/learning carried on for the basic
purpose of enabling the employees to acquire and apply the knowledge, skills,
abilities and attitudes needed by that organization.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
53
BBA IIIrd Yr.
– Features
I.
Increases knowledge and skills for doing a particular job- Training bridges
the gap between job needs and employee skills, knowledge and behaviours.
II.
Focuses attention on the current job- It is job specific and provides
employees with specific skills. Training helps employees’ correct
deficiencies in their performance.
III.
Concentrates on individual employees- Training lays emphasis on
changing what employees know, how they work, their attitudes toward
their work or their interactions with their co-workers or supervisors.
IV.
Narrow focus- Tends to be more narrowly focused and oriented toward
short-term performance concerns. It tries to fix current skill deficit. The
goal of training is a fairly quick improvement in workers’ performance. It is
a job specific and individual-oriented effort aimed at improving short term
performance fairly quickly.
V.
V. Relatively permanent change in employee behaviour- Training is
actually a learning experience that seeks a relatively permanent change in
individuals that will improve their ability to perform on the job.
– Needs and Objectives
• Training and development function in an organization has gradually
become a major activity since the continued effectiveness and efficiency
of an organization depends on the ability of its employees to produce at
high levels of efficiency, and keep abreast with their changing job-role
demands
• The objective of training is to develop specific and useful knowledge,
skills and techniques. It is intended to prepare people to carry out
predetermined tasks in well-defined job contexts. Training is basically a
task-oriented activity aimed at improving performance in current or
future jobs.
• As observed by Andrew F. Sikula, the need or the purpose of training is
to ensure increase in productivity; and it is believed that “increased
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
54
BBA IIIrd Yr.
human performance (through instructions), often directly leads to
increased operational productivity and increased company profit”.
Secondly, the purpose of training is improvement of quality since better
informed workers are less likely to make operational mistakes.
• Third purpose of training is human resource planning or adequate
fulfilment of an organization’s future personnel requirements since
“organizational vacancies can more easily be staffed from internal
sources if a company initiates and maintains an adequate instructional
programme for both its nonsupervisory and managerial employees
• Fourth purpose of training is enhancing employee motivation. Fifthly,
improving morale. Sixth purpose is to improve organizational climate
since an endless chain of positive reactions can result from a wellplanned training programme. Seventh purpose is to make possible an
increase in compensation indirectly through opportunities for internal
promotions arising out of better knowledge, understanding and
competence bringing about financial rewards. Eighty, improvement of
health and safety through proper training can be achieved by
prevention of accidents or creation of safer work environment.
• Ninth purpose of training is prevention of obsolescence as it is pointed
out that “Training and development programmes faster the initiative
and creativity of employees and help to prevent manpower
obsolescence due to age, temperament or motivation or the inability of
a person to adapt himself to technological changes”.
• Lastly, personal growth of individual employees resulting from “their
exposure to educational experiences” including an enlightened outlook,
a wider awareness and greater capacities of thought, imagination and
power of analysis and decision-making.
• The ultimate objective of training the employees is improvement in
their performance thereby facilitating achievement of organizational
goals.
Specific objectives of training are:
Specific objectives of training are:
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
55
BBA IIIrd Yr.
(i)
The production of work to require standards of quality,
quantity, cost and time.
(ii)
The development of staff, by skill and knowledge, to meet
the foreseeable needs of the organization, i.e.
a. Higher productivity
b. Increased efficiency in operation
c. A safe and harmonious working environment
Purpose of training-
1. To prepare the employee, both new & old to meet the present as well as the
changing requirements of the jobs & the organisation.
2. To develop the potentialities of people for the next level of job.
3. To ensure smooth & efficient working of a department.
4. To ensure economical output of required quality.
5. To build up a second line of competent officers & prepare them to occupy
more responsible position.
Benefits of training
1. Increased productivity
2. Heightened morale
3. Reduced supervision
4. Reduced accidents
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
56
BBA IIIrd Yr.
5. Increased organizational stability
Resistance to training:
Why do employees resist training?
a) Normally people experience difficulties in learning new skills & knowledge.
Hence, they resist training.
b) The employees feel that management will entrust more work or new kinds
of work which would require additional skills & knowledge. Hence,
employees resist training.
c) Training programme & sessions disturbs the employees from performing
the routine duties & tasks.
d) They are expected to learn more difficult activities & unlearn already
practised skills.
e) They lose their job authority & are expected to learn like students during
their training programme.
Methods of Training •
There are two types of training:
•
On the job training
• Off the job training
• On-the-job Training (OJT) Methods:
– This is the most common method of training in which a trainee is placed on
a specific job and taught the skills and knowledge necessary to perform it.
• The advantages of OJT are as follows:
• 1. On the job method is a flexible method.
• 2. It is a less expensive method.
• 3. The trainee is highly motivated and encouraged to learn.
• 4. Much arrangement for the training is not required.
On-the-job training methods are as follows:
1. Job rotation:
This training method involves movement of trainee from one job to
another gain knowledge and experience from different job assignments.
This method helps the trainee understand the problems of other
employees.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
57
BBA IIIrd Yr.
2. Coaching:
Under this method, the trainee is placed under a particular supervisor who
functions as a coach in training and provides feedback to the trainee.
Sometimes the trainee may not get an opportunity to express his ideas.
3. Job instructions:
Also known as step-by-step training in which the trainer explains the way
of doing the jobs to the trainee and in case of mistakes, corrects the
trainee.
4. Committee assignments:
A group of trainees are asked to solve a given organizational problem by
discussing the problem. This helps to improve team work.
5. Internship training:
Under this method, instructions through theoretical and practical aspects
are provided to the trainees. Usually, students from the engineering and
commerce colleges receive this type of training for a small stipend.
Off-the-job Methods:
On the job training methods have their own limitations, and in order to
have the overall development of employee’s off-the-job training can also be
imparted. The methods of training which are adopted for the development
of employees away from the field of the job are known as off-the-job
methods.
The following are some of the off-the-job techniques:
1. Case study method: Usually case study deals with any problem
confronted by a business which can be solved by an employee. The trainee
is given an opportunity to analyse the case and come out with all possible
solutions. This method can enhance analytic and critical thinking of an
employee.
2. Incident method: Incidents are prepared on the basis of actual
situations which happened in different organizations and each employee in
the training group is asked to make decisions as if it is a real-life situation.
Later on, the entire group discusses the incident and takes decisions
related to the incident on the basis of individual and group decisions.
3. Role play: In this case also a problem situation is simulated asking the
employee to assume the role of a particular person in the situation. The
participant interacts with other participants assuming different roles. The
whole play will be recorded and trainee gets an opportunity to examine
their own performance.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
58
BBA IIIrd Yr.
4. In-basket method: The employees are given information about an
imaginary company, its activities and products, HR employed and all data
related to the firm. The trainee (employee under training) has to make
notes, delegate tasks and prepare schedules within a specified time. This
can develop situational judgments and quick decision making skills of
employees.
5. Business games: According to this method the trainees are divided
into groups and each group has to discuss about various activities and
functions of an imaginary organization. They will discuss and decide about
various subjects like production, promotion, pricing etc. This gives result
in co-operative decision making process.
6. Grid training: It is a continuous and phased programme lasting for six
years. It includes phases of planning development, implementation and
evaluation. The grid takes into consideration parameters like concern for
people and concern for people.
7. Lectures: This will be a suitable method when the numbers of trainees
are quite large. Lectures can be very much helpful in explaining the
concepts and principles very clearly, and face to face interaction is very
much possible.
8. Simulation: Under this method an imaginary situation is created and
trainees are asked to act on it. For e.g., assuming the role of a marketing
manager solving the marketing problems or creating a new strategy etc.
9. Management education: At present universities and management
institutes gives great emphasis on management education. Many
management Institutes provide not only degrees but also hands on
experience having collaboration with business concerns.
9. Conferences: A meeting of several people to discuss any subject is called
conference. Each participant contributes by analyzing and discussing various
issues related to the topic. Everyone can express their own view point.
Identification of training needs:
1. Views of the line manager
2. Performance appraisal
3. Company and departmental plans
4. Views of training manager
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
59
BBA IIIrd Yr.
6. Analysis of job difficulties Here our examination is based on McGhee and
Thayer’s model of training needs identification.
It consists of the following three components:
1. Organisational analysis
2. Task analysis
3. Man analysis
1. Organisational Analysis:
It involves a comprehensive analysis of organisation in terms of its
objectives, resources, resource allocation and utilization, culture,
environment, and so on. Such an analysis would help identify
deficiencies and mechanisms that would be needed to make
adjustments in those identified deficiencies.
Generally, organisational analysis includes the following steps:
(i)
Analysis of Objectives:
Organisational analysis begins with achieving a clear
understanding of both short and long-run goals and also the
order of priorities accorded to various objectives. Long-run
objectives are broken down into specific objectives and
strategies for each of the department/division/unit. Short-run
objectives are constantly in need of adaptation to the changing
environment, both external and internal. However, longrun
goals, if carefully thought out, are expected to be much less
subject to modification. General objectives are also needed to be
translated into specific operational targets.
(ii)
Resource Utilization Analysis:
Once the organisational objectives are analysed, the next step
involved in identifying training needs is to analyse the allocation
of human and other physical resources and evaluate their level
of utilization in meeting operational objectives. In order to
examine the flow of the inputs and outputs of the total system,
various efficiency indices can be developed and used. While
using these efficiency indices, focus should be on the
contribution of human resources in meeting the organisational
goals.
(iii)
Environmental Scanning:
Such an analysis is done to study the organisation as a
subsystem operating in a distinct environment consisting of
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
60
BBA IIIrd Yr.
socio-cultural, economic and political components. This enables
the organisation to identify the environmental factors which the
organisation can influence and the constraints which cannot
control.
(iv)
Organisational climate analysis:
The organisational climate is a reflection of its members’
attitudes towards various aspects of work, supervision, company
procedure and so on. These have own bearing on affecting the
effectiveness of a training programme in the organisation.
2. Task Analysis:
• This is also called job or operational analysis. This involves a detailed
analysis of various components of a job, its various operations, and the
conditions under which it has to be performed. Task analysis will indicate
the skills and training required to perform the job at the required
standard. For almost all jobs have an expected standard of performance. •
If these standards for the performance of the job are known, then it is
possible to know whether the job is being performed at the desired level of
output i.e., standard or not. Knowledge of task as gained through task
analysis will help in understanding what skills, knowledge and attitudes an
employee should have to fulfil the expected performance.
3. Man Analysis: •
This is the third component in identifying employee training needs.
The focus of man analysis as on the individual employee, his skills,
abilities, knowledge and attitude. Of the three analyses, this is more
complex one because of difficulties in assessing human contribution.
• The reason is that the available measures to study man (employee) are
much less objective and suffer from many individual variations. Yet,
data on the relevant aspects such as production, meeting deadlines,
quality of performance, personal data such as work behaviour,
absenteeism, late-coming etc., can be collected through records,
observations, meeting with employee and others who work with him.
Through these, it is possible to get an indication of the training
requirements of an employee. According to Dayal, a detailed study of
jobs and skill analysis is absolutely necessary. The training accordingly
imparted would help the employee adjust to their job requirements.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
61
BBA IIIrd Yr.
Training and Development
Personnel Development could be described as the sum total of the results of the
positive changes taking place in the knowledge, skills, attitudes, relationships and
physical well-being of the employees of an organization.
It involves a process of helping employees of an organization in the acquisition of
new qualities and refinement of existing characteristics that might be required in
their present functions or towards performing roles expected in the future. Employee
development is expected to bring out a sound concept or vision in the employee,
appropriate competence levels to translate the vision into reality, adequate
intensity of keenness as reflected in their commitment levels, a helpful human
network of connections to garner support from, and a culture of performance.
Indicators of personnel development would be reduced errors at work, improved
morale and discipline, and enhanced creativity among employees, greater
productivity, prosperity and satisfaction of all the stakeholders of a human
organization.
Contours of Training and Development
•
Training and Development (T & D) is a planned, continuous effort by
management to improve employees’ competency levels and organizational
performance. Training has a short-term focus as it is designed to provide the
learners who are especially in the managerial cadre with specific concepts,
knowledge, skills and techniques needed for their present jobs. Job related
training is offered at various points in an employee’s tenure with a company,
on technical or mechanical facet of work.
•
Development on the contrary, refers to the attainment of a generic long-term
learning that transcends the present job and applies to a wider life and social
situation. Development refers to learning that is not tied to a particular role
and which implies growth and a better situation. It is often associated with
training outcomes, but it can emerge from any event or experience from which
new knowledge is created and then used to improve situations.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
62
BBA IIIrd Yr.
•
Training is also referred to as a process by which any person designated to be
a trainer imparts new knowledge, sharpens and strengthens skills and
redefines attitudes. Training involves more than just teaching people how to
use tools or complete assigned tasks. Good training seeks to make people
understand what they feel about themselves, about their work and their
contribution to the well-being of those they serve.
•
The basic objective of training is to establish match between employees and
their jobs. This is achieved by helping them to bridge gaps between expected
and actual performance levels. Training has to help to prevent obsolescence of
employees by updating their competencies. Thus, a firm is like an educational
institution and continuous learning becomes an integral part of its vivacity.
•
After the candidates have been selected and placed in appropriate jobs they
usually receive orientation training to help them learn about the company.
This is also known as ‘induction’ and is the first training an employee has to go
through in each organization of his or her employment. However, training in
organizations is an unending process.
•
The training needs of employees get continually assessed based on their own
requests and their superiors’ feedback in the performance appraisal reports.
The top management of an organization would also direct the training
department to prepare the employees to face various organizational changes.
•
In the present context, one may surmise that the individual who feels he is
through learning is through in his job also. Jobs today grow faster than the
people in them. Helping people to keep up with the pace of this growth is the
obligation of training. No program or method would fit all types of needs.
•
Programs and methods should be selected on the basis of how effectively and
efficiently they satisfy personal needs and accomplish the developmental
objectives of managers and the enterprise.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
63
BBA IIIrd Yr.
•
The choice of a method or a mix of method is a function of a number of
considerations such as the nature, size and capabilities of the target group, the
aims of the program, the costs involved and whether the program is to impart
knowledge, skill, techniques or attitudes.
•
The methods could be sub classified into traditional and modern methods, onthe-job and off-the-job methods, instructor-based and self-learning methods,
simulated and real situation based methods. Different combination of
methods would fit into each of the above classifications. Based on the stage of
a job during which the training is provided, the program may be classified as
preparatory training, induction training, mid-term training, refresher
training, and development centres and re-training.
•
Each method of training has its own strengths and weaknesses. A judicious
combination of the following methods alone would help to maximize the
effectiveness of programs
TRAINING AND DEVELOPMENT (T&D) METHODS
Ther e ar e sev er al T& D methods avail ab le. Th e use of a par t icu lar
meth od d epends wh ic h meth od acc o mpl is h es t h e training needs and
objectives. Training methods can be classified into two categories:
I. On-the-Job Methods
This refers to the methods of training in which a person learns a job by
actually doing/performing it. A person works on a job and learns and
develops expertise at the same time.
1. Understudy
In this the employee is trained by his or her supervisor. The trainee is
attached with his or her senior and called understudy or assistant. For
example, a future manager might spend few months as assistant to the
present manager.
2. Job rotation
This refers to shifting/movement of an employee from one job to
another on regular intervals.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
64
BBA IIIrd Yr.
3. Special projects
The trainees' may ask to work on special projects related with
departmental objectives. By this, the trainees will acquire the knowledge of
the assigned work and also learn how to work with others.
4. Experience
It refers to learning by doing. This is one of the oldest methods of on-the-job
training. Although this is very effective method but it also very time consuming and wasteful. Thus it should be followed by other training
methods.
5. Committee assignment
In this, the trainees become members of a commi ttee. The c o m m i t t e e i s
a s s i g n e d a p r o b l e m t o d i s c u s s a n d m a k e recommendations.
6. Coaching
In this, the supervisor or the superior acts as a guide and instructor of
the trainee. This involves extensive demonstration and continuous critical
evaluation and correction.
II. Off-the-Job Methods
These methods require trainees to leave their workplace and concentrate their entire
time towards the training objectives. These days’ off-the-job training methods have
become popular due to limitations of the on-the-job training methods such as
facilities and environment, lack of group discussion and full participation among the
trainees from different disciplines, etc. In the off-thejob methods, the development of
trainees is the primary task rest everything is secondary. Following are the main offthe-job training methods:
1. Special courses and lectures
These are the most traditional and even famous today, method of developing
personnel. Special courses and lectures are either designed by the company itself or
by the management/professional schools. Companies then sponsor their trainees to
attend these courses or lectures. These are the quick and most simple ways to
provide knowledge to a large group of trainees.
2. Conferences and seminars
In this, the participants are required to pool their thoughts, ideas, viewpoints,
suggestions and recommendations. By attending conferences and seminars, trainees
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
65
BBA IIIrd Yr.
try to look at a problem from different angles as the participants are normally from
different fields and sectors.
3. Selected reading
This is the self-improvement training technique. The persons acquire knowledge and
awareness by reading various trade journals and magazines. Most of the companies
have their own libraries. The employees become the members of the professional
associations to keep abreast of latest developments in their respective fields.
4. Case study method
This technique was developed by Harvard Business School, U.S.A. It is used as a
supplement to lecture method. A case is a written record of a real business
situation/problem faced by a company. The case is provided to the trainees for
discussion and analysis. Identification and diagnose of the problem is the aim in case
study method. Alternate courses of action are suggested from participants.
5. Programmed instruction/learning
This is step-by-step self-learning method where the medium may be a textbook,
computer or the internet. This is a systematic method for teaching job skills involving
presenting questions or facts, allowing the person to respond and giving the learner
immediate feedback on the accuracy of his or her answers."
6. Brainstorming
This is creativity-training technique, it helps people to solve problems in a new and
different way. In this technique, the trainees are given the opportunity to generate
ideas openly and without any fear of judgement. Criticism of any idea is not allowed
so as to reduce inhibiting forces. Once a lot of ideas are generated then they are
evaluated for their cost and feasibility.
7. Role-playing
In this method, the trainees are assigned a role, which they have to play in an
artificially created situation. For example, a trainee is asked to play the role of a trade
union leader and another trainee is required to perform the role of a HR manager.
This technique results in better understanding of each other's situation by putting
foot in other's shoes.
8. Vestibule schools
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
66
BBA IIIrd Yr.
Large organisations frequently provide what are described as vestibule schools a
preliminary to actual shop experience. As far as possible, shop conditions are
duplicated, but instruction, not output is major objective." A vestibule school is
operated as a specialised endeavour by the personnel department. This training is
required when the amount of training that has to be done exceeds the capacity of the
line supervisor; a portion of training is evolved from the line and assigned to staff
through a vestibule school." The advantage of a vestibule school is specialisation.
9. Apprenticeship training
This training approach began in the middle Ages when those who wanted to learn
trade skill bound themselves to a master craftsman and worked under his guidance.
Apprenticeship training is a structured process by which people become skilled
workers through a combination of classroom instruction and on-the-job training.
10. In-basket exercise
In this technique, the trainees are provided background information on a simulated
firm and its products, and key personnel. After this, the trainees are provided with
in-basket of memos, letters, reports, requests and other documents related with the
firm. The trainee must make sense out of this mass of paperwork and prepare
memos, make notes and delegate tasks within a limited time period."
11. Business games
Business games involve teams of trainees. The teams discuss and analyse the
problem and arrive at decisions. Generally, issues related with inventories, sales,
R&D, production process, etc. are taken up for consideration.
12. Behaviour modelling
This is structured approach to teach specific supervisory skill. This is based on the
social learning theory in which the trainee is provided with a specific model of
behaviour and is informed in advance of the consequences of engaging in that type of
behaviour.
13. Sensitivity (T-group) training
In this type of training, a small group of trainees consisting of 10 to 12 persons is
formed which meets in an unstructured situation. There is no set agenda or schedule
or plan. The main objectives are more openness with each other, increased listening
skills, trust, support, tolerance and concern for others. The trainers serve a catalytic
role. The group meets in isolation without any formal agenda. There is great focus on
inter-personal behaviour. And, the trainer provides honest but supportive feedback
to members on how they interacted with one another.
14. Multiple management
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
67
BBA IIIrd Yr.
This technique of training was first introduced by McCormick, President of
McCormick & co. of Baltimore in 1932. He gave the idea of establishing a junior
board of directors. Authority is given to the junior board members to discuss any
problem that could be discuss in senior board and give recommendations to the
senior board. Innovative and productive ideas became available for senior board.
Job Analysis,
Job description
Meaning:
Job analysis is a systematic and detailed examination of jobs. It is the process of
collecting information about a job — that is, the knowledge, skills, and the experience
needed to carry out a job effectively. The jobholder is supposed to possess job-related
knowledge useful to carry out the job easily.
In other words, job analysis refers to the anatomy of the job. It is a complete study of
job, embodying every known and determinable factor, including the duties and
responsibilities involved in its performance, the conditions under which the
performance is carried on, the nature of the task, the qualities required in the
worker, and such conditions of employment as pay hour, opportunities and
privileges. It also emphasises the relation of one job to others in the organisation.
Definitions:
(1)
According to Edwin B. Flippo – “Job analysis is the process of
studying and collecting information relating to the operations and
responsibilities of a specific job. The immediate products of this analysis
are job descriptions and job specifications.”
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
68
BBA IIIrd Yr.
(2)
Further, David A. De Cenzo and Stephen P. Robbins has defined
“job analysis is a systematic exploration of the activities within a job. It is a
basic technical procedure, one that is used to define the duties,
responsibilities and accountabilities of a job.”
(3)
Herbert G. Hereman III has said “A job analysis is a collection of tasks
that can be performed by a single employee to contribute to the production
of some product or service provided by the organisation. Each job has
certain ability requirements (as well as certain rewards) associated with it.
It is the process used to identify these requirements.”
Therefore, it can be said safely that “job analysis can be described as a
process of collecting information about a job.”
Concept:
Job analysis is essentially a process of collecting and analysing data relating to a job
in an organization. It refers to a scientific and systematic analysis of a job in order to
obtain all pertinent facts about the job. Job analysis has been defined as “the process
of determining by observing and study the tasks, which comprise the job; the
methods and equipment’s used, and the skills and attitudes required for successful
performance of the job.”
Edwin B. Flippo has defined job analysis as “the process of studying and collecting
information relating to the operations and responsibilities of a specific job. The
immediate products of this analysis are job descriptions and job specifications”.
Job analysis provides the following information about a job:
i. Nature of jobs required in a concern;
ii. Nature of organizational structure;
iii. Type of people required to fit that structure;
iv. The relationship of a job with other jobs in a concern;
v. Kind of qualifications required for a particular job;
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
69
BBA IIIrd Yr.
vi. Provision of physical condition to support the activities of a concern;
vii. Materials, equipment’s and methods used in performing the jobs.
A job analysis provides the following information:
(i)
Job identification- Its title, including its code number;
(ii)
Significant characteristics of a job- Its location, physical setting,
supervision, union jurisdiction, hazards and discomforts;
(iii)
What the typical worker does- Specific operation and tasks that make
up an assignment, their relative timing and importance, their
simplicity, routine or complexity, the responsibility or safety of others
for property, funds, confidence and trust;
(iv)
Which materials and equipment a worker uses- Metals, plastics, grains,
yarns, milling machines, punch presses and micrometres;
(v)
How a job is performed- Nature of operation – lifting, handling,
cleaning, washing, feeding, removing, drilling, driving, setting up and
many others;
(vi)
Required personnel attributes- Experience, training, apprenticeship,
physical strength, co-ordination or dexterity, physical demands, mental
capabilities, aptitudes, social skills;
(vii)
Job relationship- Experience required, opportunities for advancement,
patterns of promotions, essential co-operation, direction, or leadership
from and for a job.
It is obvious from the foregoing that a job analysis is usually a clear
indication of a job description and job specification.
Objectives:
i. Work Simplification:
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
70
BBA IIIrd Yr.
Job analysis provides the information related to job and this data can be used to
make process or job simple. Work simplification means dividing the job into small
parts i.e. different operations in a product line or process which can improve the
production or job performance.
ii. Setting Up of Standards:
Standard means minimum acceptable qualities or results or performance or rewards
regarding a particular job. Job analysis provides the information about the job and
standard of each can be established using this information.
iii. Support to Personnel Activities:
Job analysis provides support to various personnel activities like recruitment,
selection, training and development, wage administration, performance appraisal,
etc.
Purposes:
Management. It is the major input to forecasting future human resource
requirements, job modifications, job evaluation, determination of proper
compensation, and the writing of job evaluation, determination of proper
compensation, and the writing of job descriptions.
It is of fundamental importance to manpower management programmes because of
the wider applicability of its results. The information provided by JA is useful, if not
essential, in almost every phase of employee relations.
1. Organisation and Manpower Planning:
It is helpful in organisation planning, for it defines labour needs in concrete
terms and co-ordinates the activities of the workforce, and clearly divides
duties and responsibilities.
2. Recruitment, Selection:
By indicating the specific requirements of each job (i. e., the skills and
knowledge), it provides a realistic basis for the hiring, training, placement,
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
71
BBA IIIrd Yr.
transfer and promotion of personnel. “Basically, the goal is to match the job
requirements with a worker’s aptitude, abilities and interests. It also helps in
charting the channels of promotion and in showing lateral lines of transfer.
3. Wage and Salary Administration: By indicating the qualifications
required for doing a specified job and the risks and hazards involved in its
performance, it helps in salary and wage administration. Job analysis is used
as a foundation for job evaluation.
4. Job Reengineering: Job analysis provides information which enables us to
change jobs in order to permit their being manned by personnel with specific
characteristics and qualifications.
This takes two forms:
(a)
Industrial engineering activity, which is concerned with operational
analysis, motion study, work simplification methods and improvement in
the place of work and its measurement, and aims at improving efficiency,
reducing unit labour costs, and establishing the production standard which
the employee is expected to meet; and
(b)
Human engineering activity, which takes into consideration human
capabilities, both physical and psychological, and prepares the ground for
complex operations of industrial administration, increased efficiency and
better productivity.
5. Employee Training and Management Development: Job analysis
provides the necessary information to the management of training and
development programmes. It helps to determine the content and subject
matter of in-training courses. It also helps in checking application
information, interviewing, weighing test results, and in checking references.
6. Performance Appraisal: It helps in establishing clear-cut standards which
may be compared with the actual contribution of each individual.
7. Health and Safety: It provides an opportunity for identifying hazardous
conditions and unhealthy environmental factors so that corrective measures
may be taken to minimise and avoid the possibility of accidents.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
72
BBA IIIrd Yr.
In sum, it may be noted that job analysis is a systematic procedure for
securing and reporting the information which defines a specific job. It has
many uses in the management of personnel. It determines the qualifications
required for a job; provides guidance in recruitment and selection; evaluates
current employees for transfer or promotion; and establishes the
requirements for training programmes.
It is used as a foundation for job evaluation and helps in employee
development by means of appraisal and counselling; for establishing
improved methods of analysing problems of health, safety and fatigue; it
functions as a guide in connection with discipline and grievances and as
a basis for transfers, lay-offs and as a basis of comparison of the pay
rates obtaining in other organisations; and it establishes workloads and
job assignments.
It also helps in redesigning the jobs to improve operational performance
or to enrich job content and employee improvement. Managers may
develop ways of giving their employees an increased sense of personnel
accomplishment and control over themselves and their work
Process (How to Conduct Job Analysis?):
How to conduct job analysis? We should perform eight steps as follows for
conducting job analysis.
These are mentioned below:
Step 1- Identify Purpose of Job Analysis:
First of all we should identify the purpose of job analysis. Otherwise we will not be
able to collect all the pertinent information concerning job analysis and job analysis
methods.
Step 2- Selection of Analyst:
We have to choose analyst to whom responsibilities will be assigned for job analysis.
The analysts will be taken from professional human resource, line managers,
incumbents or consultants.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
73
BBA IIIrd Yr.
Step 3- Selection of Method:
We will select representative positions to analyse because it may not be necessary to
analyse all jobs and there may be too many similar jobs to analyse. After selecting
representative jobs we must identify the appropriate method which is the best one in
order to analyse a particular job.
Step 4 -Train the Analyst:
If we use internal analyst then we have to give them appropriate training so that they
can use the selected methods of job analysis in an efficient and effective way.
Step 5- Preparation of Job Analysis:
It includes communicate the project in the organization and preparing the
documentation.
Step 6- Collection of Data:
Job analysts will collect data relating to job activities, employee behaviours, working
conditions, human traits and abilities to perform the job, etc.
Step 7- Review and Verify:
Analysts must verify the collected data to confirm that the information is factually
correct and complete.
Step 8- Develop a Job Description and Job Specification:
Develop a job description and job specification from the job analysis information. A
job description is a written statement that describes the activities and responsibilities
of the job, working conditions, safety and hazards. A job specification summarizes
the personal qualities, traits, skills, and background required for getting the job
done.
Functions:
The job analysis provides the following function:
(1) Job identification- Its title, including its code number.
(2) Significant characteristics of a job- Its location, physical setting, supervision,
union jurisdiction, hazards and discomforts.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
74
BBA IIIrd Yr.
(3) What the typical worker does? This part of information includes specific
operations and tasks to be performed by the typical worker including their relative
timing and importance, their simplicity, routine or complexity, the responsibility for
others, etc.
(4) Job duties- A detailed list of duties along with the probable frequency of
occurrence of each duty.
(5) What materials and equipment the worker uses? Metals, plastics, grains, yarn or
lathes, milling machines testers, punch presses and micrometres.
(6) How a job is performed? Emphasis here is on the nature of operations like lifting,
handling, cleaning, washing, feeding, removing, drilling, driving, setting up and the
like.
(7) Required Personal Attributes – These include experience, training undertaken,
apprenticeship, physical strength, coordination or dexterity, physical demands,
mental capabilities, aptitudes, social skills, etc.
(8) Job Relationship – This includes opportunities for advancement, patterns of
promotions, essential co-operation, etc.
Job analysis also provides the information relating to mental skills, working
conditions, hazards, education, vocational preparation, etc.
Sources of Job Analysis Information:
Information about job analysis may be obtained from three principal sources.
They are:
(a) From the employees who actually perform a job;
(b) From other employees such as supervisors and foremen who watch the workers
while doing a job and thereby acquire knowledge about it; and
(c) From outside observers specially appointed to watch employees performing a job.
Such outside persons are called the trade job analysts. Sometimes, special job
reviewing committees are also established.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
75
BBA IIIrd Yr.
Significance:
1. Facilitates Manpower Planning:
Job analysis is the qualitative aspect of manpower requirements. It determines the
demands of the job in terms of responsibilities and duties and then translates these
demands into skills, qualities and other human attributes.
It determines the quantum of work which an average person can perform on the job
in a day. It facilitates the division of work into different jobs. Thus, it is an essential
element of manpower planning as it matches jobs with men.
2. Helps Recruitment, Selection and Placement:
In order to hire the right person on a job, it is essential to know the requirements of
the job and the qualities of the individual who will perform it. The information
regarding these is procured from job description and job specifications respectively.
These help the management in matching the job requirements as closely as possible
with workers’ aptitudes, abilities, interests, etc. It facilitates the execution of
employment programme.
3. Determines Training and Development Needs:
Job analysis determines the levels of standards of job performance. It helps in
administering the training development programmes. Job descriptions and job
specifications are written documents. If the contents of these two documents are
known to the employees, they will try to acquire the skills and knowledge required to
perform the task assigned to them efficiently.
They may also prepare themselves for the higher post in the light of the job
description and the job specifications. The same information may be used by those
who administer the training and development programmes for determining the
contents and subject matter needed in such programmes.
4. Determines Job Evaluation:
Job evaluation aims at determining the relative worth of the job which helps in
determining the compensation of job. These jobs are evaluated in terms of money.
An accurate and comprehensive set of job descriptions and the job specifications
forms of factual basis for evaluating the worth of the job.
5. Provides Data for Performance Appraisal:
Job analysis data provide a clear-cut standard of performance for every job. The
performance of employee can be appraised objectively with the standard of job
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
76
BBA IIIrd Yr.
performance so established. A supervisor may very easily compare the contribution
of each man with the set standards.
6. Helps Job Designing:
Industrial engineers may use the job analysis information in designing the job
by making the comprehensive study of the job elements. It helps in time and
motion study, work-specifications, methods and workplace improvement and
work-measurement. Human engineering activities such as physical, mental
and psychological actions are studied with the help of job analysis
information.
7. Ensures Safety and Health:
The job analysis process uncovers the hazardous and unhealthy
environmental factors such as heat, noise, fumes, dust, etc. related with the
jobs. The management may take corrective measures to minimize the chances
of risks to ensure safety to workers and avoid unhealthy conditions.
8. Maintains Discipline:
Job analysis provides the information regarding characteristics of various jobs
and the job-holders. It studies the failure of the workman to meet the required
standard of performance. Corrective measures may be taken in time to avoid
untoward situations. In this way it helps in maintaining the discipline in the
industry.
Areas:
Job analysis should collect information on the following areas:
i. Duties and Tasks- The basic unit of a job is the performance of specific tasks and
duties. Information to be collected about these items may include frequency,
duration, effort, skill, complexity, equipment, standards, etc.
ii. Environment- This may have a significant impact on the physical requirements to
be able to perform a job. The work environment may include unpleasant conditions
such as offensive odours and extreme temperatures. There may also be definite risks
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
77
BBA IIIrd Yr.
to the incumbent such as noxious fumes, radioactive substances, hostile and
aggressive people, and dangerous explosives.
iii. Tools and equipment- Some duties and tasks are performed using specific
equipment and tools. Equipment may include protective clothing. These items need
to be specified in job analysis.
iv. Relationships- Supervision given and received, relationships with internal or
external people, etc. have to be detailed in job analysis.
v. Requirements- The knowledge, skills, and abilities (KSA) required to perform the
job must be clearly defined. While an incumbent may have higher KSA than those
required for the job, a job analysis typically only states the minimum requirements to
perform the job.
Advantages:
Job analysis is an important element of human resource management. Most
information can be taken by human resource manager with the help of job analysis.
The main advantages of job analysis are given below:
i. Job analysis helps the personnel manager at the time of recruitment and selection
of right man on right job;
ii. It helps human resource manager to understand extent and scope of training
required in that field;
iii. It helps in evaluating the relative worth of different jobs;
iv. It also helps to chalk out the compensation plans for the employees;
v. It also helps the personnel manager to undertake performance appraisal effectively
in a concern;
vi. Job analysis reveals unhealthy and hazardous environmental and operational
conditions in various jobs;
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
78
BBA IIIrd Yr.
vii. Job analysis provides pertinent information to both management and trade
unions for collective bargaining;
viii. Job analysis provides necessary information for effective human resource
planning.
Job Description
Meaning:
Job description is an informative documentation of the scope, duties, tasks,
responsibilities and working conditions related to the job listing in the organization
through the process of job analysis. Job description also details the skills and
qualifications that an individual applying for the job needs to possess. It basically
gives all the details which might be good for both the company and the applicant so
that both parties are on the same page regarding the job posting. Basically, job
analysis is bifurcated into two components namely job description and job
specification.
The job description is used in the recruitment process to inform the applicants of the
job profile and requirements, and used at the performance management process to
evaluate the employee’s performance against the description.
Importance of Job Description:
•
Job description is the most important thing which a candidate gets about a job
listing.
•
It gives all the relevant and necessary details about a job.
•
The details which can help one decide whether the job is relevant or not.
•
Qualifications, roles, responsibilities etc are included in the job description
document which paints a clear picture of what is expected from the particular
role.
•
It gives an opportunity for a candidate to prepare well for a job interview.
It also helps companies identify all skills required by a right candidate.
Job Description Components:
A Job description will include the following components:
o Roles and responsibilities of the job.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
79
BBA IIIrd Yr.
o Goals of the organization as well the goals to be achieved as a part of
the profile are mentioned in the job description.
o Qualifications in terms of education and work experience required have
to be clearly mentioned.
o Skill sets like leadership, team management, time management,
communication management etc. required to fulfil the job
o Salary range of the job are mentioned in the job description
Job Description Example
A typical job description would have job title followed by summary. After these, there
could be a detailed description of the role.
Education qualifications required are also mostly included along with location.
Job Title
Regional Sales Manager
Location
NY,CA
Job
Description
The RSM would be responsible for the sales of territory assigned. The
territories would be in and around the job location.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
80
BBA IIIrd Yr.
The RSM should be motivated and willing to make decisions on his/her own.
The sales quota and targets would be predefined.
The RSM would be leading the local sales team of approx. 5-6 team size.
(The job description should cover all the details of the job)
Education
Graduate with Business Degree/Diploma
Experience
7-8 years of experience in FMCG Sales
The table above shows a sample job description. Formats for job description may
Vary from company to company but the overall details would be similar.
Steps to Write a Job Description
Companies have to make sure that they write an accurate & comprehensive job
description giving all job-related details. The main steps to write a job description are:
1. Job Title
The first step is to write the job title decided internally for official purposes.
2. Role Summary
The second step is to write the summary about the job role.
3. Duties
The next step involves writing down all the job responsibilities as well as the job
duties which are required with this particular job.
4. Qualifications
The fourth step is to give the basic education qualifications, work experience or other
criteria required for this job role.
5. Role Expectations
This step defines what is required by an employee to be successful.
6. Reporting
The sixth step is to highlight who the reporting manager would be and who would be
the subordinates.
7. Verification
The final step is to get the job description verified by the HR team for any changes,
updates or validations.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
81
BBA IIIrd Yr.
Advantages of Job Description
There are many advantages of having a comprehensive job description given by a
company. Some of the advantages are mentioned below:
1. Helps companies understand the type of candidate they should search for based on
title, position and location
2. Employees are well aware about their job roles & duties
3. Job description helps in understanding the workplace environment, benefits etc.
for a prospective employee
4. Helps in better recruitment & selection
5. Job description clearly highlights all the requirements, objectives & goals that it
wants an employee to perform
➢ Disadvantages of Job Description
Despite being a thorough documentation related to the job, there are certain limitation
of job description:
1. They are time bound and can change with organization structure, industry policies,
company requirements etc.
2. It can only highlight the macro criteria of a job but cannot fully explain the
obstacles, emotional requirements etc. related to the job
3. Incomplete job description lacking quality information can misguide both the HR
manager as well as the employee
Performance Appraisal
Meaning:
After placed and trained as an employee on the job, the next important and essential
step in the management of human resources of an organisation is to evaluate the
performance of an employee on the job. The management must be able to recognize
the level of an employee’s job performance and then they can be rewarded on the
basis of their contributions to organizational goals. It is the process of deciding how
employees do their jobs and if any problems are identified, then immediately steps
are taken to remedy them
A. Monappa and M.S. Saiyadain Douglas Mc Gregor (1957) says – Formal
performance appraisal plans are designed to meet three needs, one of the
organisation and other two of the individual, namely –
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
82
BBA IIIrd Yr.
•
They provide systematic judgments to back up salary increase, transfers,
demotions or terminations.
•
They are means of telling a subordinate how he is doing, and suggesting
needed changes in his behaviour, attitudes, skills or job knowledge. They let
him know ‘where he stands’ with the boss
•
They are used as a base for coaching and counselling the individual by the
superior.
Performance appraisal is the systematic evaluation of employee’s behaviour in the
work place which includes employee’s job performance and his potential for growth
and development.
Actually the performance appraisal is not the evaluation of performance of job but
the evaluation of performance of employee on the job. Its focus is on employee’s
development. The performance appraisal system may be formal or informal. The
formal system is to be fair and objective while informal system is to be subjective and
influenced by personal factors.
Characteristics:
A system which may have the following qualities or characteristics may become sound
appraisal system:
(1) It should be simple and understandable by the employees. Any complications
need to be avoidable.
(2) It should be suitable to be adopted for appraisal at regular intervals because
periodic appraisal enables the employees to improve.
(3) It should create the atmosphere of mutual understanding and confidence.
(4) The system should be capable of giving equitable justice to all employees.
Therefore it should be objective and free from personal bias.
(5) The employees should be taken in confidence while preparing performance
appraisal.
(6) The system should be suitable to the organisation from the points of its structure,
needs and more essentially based on latest development in the area.
(7) It should be able to fulfil the desired purpose by locating potential for promotion,
increments, placements, transfers etc.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
83
BBA IIIrd Yr.
(8) Special training is given to evaluated” for making him more impartial and free
from bias.
(9) Negative appraisal of any employee should be immediately communicated to him
so that he can adopt measures for improvement.
(10) The employee should be allowed to go in appeal in case his performance
appraisal is negative if he is not satisfied. By this the management will win the
confidence of the employees.
(11) The performance appraisal system should not be aimed at harassing the
employees who are vital human resources and play very important role in achieving
organisational goals. On the other hand the top bosses should be made aware that
performance appraisal is aimed at improving performance, organisational
effectiveness and to accomplish organisational goals .
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
84
BBA IIIrd Yr.
Main Objectives:
Performance appraisal plans are designed to meet the needs of the organisation and
the individual. It is viewed as core to good human resource management. According
to Cummings, “the overall objective of performance appraisal is to improve the
efficiency of an enterprise by attempting to mobilize the best possible efforts from
individuals employed in it. Such appraisals achieve four objectives including the
salary reviews, the development and training of individuals, planning job rotation
and assistance promotions.”
The following main objectives of employee performance appraisal are:
•
To identify employee weaknesses and strengths;
•
To identify and meet training needs and aspirations
•
To generate significant, relevant and valid information about employee;
•
To provide inputs to increments of rewards, transfers, promotion and salary
administration.
•
To help in improving employee’s performance if he is not found to be suitable
during the review period;
•
To create a desirable culture and tradition in the organisation;
•
To help in planning career development and human resources planning based
on potentialities.
•
To provide ‘deadlock’ and research data for improving overall human
resources information system.
Process:
Performance appraisal is planned, developed and implemented in the following
manner:
1. Establish Performance Standards:
The performance standards for each and every job should be developed and
discussed with the superiors after thorough analysis of the job. These
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
85
BBA IIIrd Yr.
standards should be clear and not vague. They must be measurable after
certain period.
2. Communicate the Standards:
After setting the performance standards of job, the next activity is to
communicate these standards to all concerned; at least two parties –
(a) appraiser
(b) Appraise.
It is necessary, these standards must be modified. The appraiser must ensure that
the information communicated by him has been received by appraise and
understood clearly. As per opinion De Cenzo and Robbins, “too many jobs have
vague performance standards and the problem is compound when these
standards are set in isolation and do not involve the employee.”
3. Measure Actual Performance:
Now the next activity is to measure actual performance of appraise on the job
after certain period. Generally four common sources are used by appraiser to
measure actual performance, personal observation, statistical reports, oral
reports and written reports.
4. Compare Actual Performance with Standards:
The fourth activity is the comparison of actual performance with standards.
Sometimes actual performance may be better than standards and sometimes
it may go off the track. Any deviations between actual performance and
standard performance may be noted carefully for next activity.
5. Feedback to the Employee:
In this activity the results of stage forth are discussed with employee. The
information which is received by appraise about his assessment has a great
impact on his performance. Communicating poor performance is difficult task
of appraiser.
6. Taking Corrective Action, if Necessary:
This is the final or last activity of the performance appraisal process. In this
stage two types of corrective action may be recommended by the appraiser.
One is positive means salary increase or promotion if actual performance of
appraise is up to the mark and second is negative means coaching and
counselling may be done if the performance is poor. If necessary appraise may
be deputed for formal training courses.
Advantages:
The advantages of the performance appraisal process are as follows-
1. It becomes easier to maintain a record of individual performance over some
time, and this helps the company to make proper evaluations
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
86
BBA IIIrd Yr.
2. The performance appraisal process includes comparative ratings, and this helps
the company to reward its better workers
3. It helps the management to decide about important issues like transfers, raise
and promotions
4. The statistics derived from performance appraisal process helps the company to
screen its recruitment process
5. The performance appraisal process helps the company in identifying the right
talent for specific jobs so that they can place the employees in particular areas
depending on their know-how
6. It becomes easier for a business entity to find those employees who are working
above the set standards and also those who are unable to find their rhythm
7. The performance appraisal process acts as an opportunity for the management
to hold discussions with its employees about their performances
8. It is also an opportunity for the employee to discuss and clarify issues and
expectations with his manager
9. The performance appraisal process determines the effectiveness of a training
period and whether it has proved successful or not
10. The feedback helps the employee to know whether they have completed their
goals or not
11. A performance appraisal process is a motivational tool that can prompt the
employee to make viable changes so that he can do better in the coming days
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
87
BBA IIIrd Yr.
12. It encourages healthy competition between the employees as they try to garner
better scores than their co-workers
Disadvantages:
1. The performance appraisal process is time-consuming as the evaluation process
is an ongoing one
2. If not conducted in an appropriate manner it can prove a negative experience for
the employee
3. As the process is dependent on human assessment, it is subjected to bias and
errors and thus lacks reliability
4. It proves stressful if the results are not in your favour
5. The performance appraisal process should be conducted with the help of predesigned guidelines otherwise it will prove a complete waste of time and effort
Methods:
The different types of performance appraisal methods are as follows-
1. Critical incident method
In this type of performance appraisal, process-specific incidents are identified and
described. It deals in particulars about the time when an employee was at his best and
even when he performed below par.
Facts
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
88
BBA IIIrd Yr.
•
•
•
Performance of every employee is evaluated based on the logs placed in the
evaluation form
The logs are maintained by the manager who is charged to record important
incidents
At the end of a specific term, these recorded logs are used as a basis for
performance evaluation
Limitations
•
•
•
•
The critical appraisal method harps more on negative aspects than the positive
ones
It involves close supervision which the employee may not feel comfortable with
Recording all the incidents diligently of every employee is a chore that the
manager may find tedious and boring
It is a time-consuming process
2. The paired comparison analysis method
There are several relevant options in this paired comparison analysis performance
appraisal method. All the options are set in the form of comparisons with others on
the list, and the calculations are derived after looking at the highest scores.
Facts
•
•
It is easy to choose the necessary option when priorities are not clear
This method is generally used when you do not have objective data at your
fingertips
Limitations
•
The method is not fully accurate
3. Weighted checklist method
In this type of performance appraisal process, the job of an employee is under scrutiny,
and evaluation is based on effective and ineffective behavior of the employee on his
job.
Facts
•
•
The manager who is responsible for the evaluation process can be biased
He has the opportunity to offer biased weights to the questions
Limitations
•
•
It is a time-consuming method as assembling and analyzing a number of
statements takes time
The weighted checklist method is considered expensive
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
89
BBA IIIrd Yr.
4. Essay evaluation method
In the Essay evaluation method, the manager figures out both the strong and
weak behaviour points of an employee.
Facts
•
•
•
It is a non-quantitative technique
It is less structured
It is an open-ended and flexible process
Limitations
•
•
•
•
It is difficult to implement
The Essay evaluation method is considered a time-consuming process
The evaluation is subjective and prone to bias and errors
It is considered uneconomical
5. Graphic rating scales method
In Graphic rating scales method, it is the duty of the management to check on the
performance level of an employee simply.
Facts
•
•
It enables quantitative comparison
It is less time consuming compared to other types of the performance appraisal
process
Limitations
•
Less validity in ratings
6. Management by objectives method
In this type of performance appraisal process, a list of objectives is set up by a manager
to assess the performance of an employee on a regular basis.
Facts
•
•
•
The emphasis is on the future and not on the past, and thus the performance
appraisal process is all about the constructive end
Emphasis is on short-term goals
It is assumed that the employee is the best person to know about himself
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
90
BBA IIIrd Yr.
Limitations
•
•
•
It is not easy to facilitate active participation by every employee
The long-term goals are avoided under this process
Goals remain rigid
7. Behaviourally anchored rating scales method
The Behaviourally anchored rating scales method is considered formatted and is a mix
of critical incident technique and rating scale.
Facts
•
Identifying the effectiveness and ineffectiveness of the performance of an
employee takes time.
Limitations
•
It is difficult to develop
8. 360-degree performance appraisal method
This type of performance appraisal process includes allowing co-workers, peers,
clients, supervisors, and customers to fill out a questionnaire which offers detail about
that particular employee.
Facts
•
•
Improves credibility
Is a correct assessment
Limitations
•
Is time-consuming
9. Performance ranking method
This type of performance appraisal method is used to assess the performance from
highest to lowest levels of an employee.
Facts
•
Comparisons are made between the employees
Limitations
•
There are no set criteria for comparisons
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
91
BBA IIIrd Yr.
10. Forced ranking method
In this type of performance appraisal method, the employees are ranked in terms of
allocations.
Facts
•
•
The process identifies the most and least talented employee in the group
The onus is on sustaining and improving the performance of a team
Limitations
•
•
•
Leads to unhealthy competition
Results in discrimination
Discourage teamwork
Job evaluation.
Meaning:
• Job evaluation – which is an accepted tool in the hands of the personnel
management for avoiding any inconsistency in job rates and for
achieving uniformity in the entire wage structure – is done through
certain processes. The process – elements are its components.
• At the outset, job analysis to secure job date or information is necessary.
For this purpose, job description and job specification are undertaken.
In job description – duties, responsibilities and job conditions are
described and in job specification – human qualities needed for the job
are described.
Definitions:
Wendell French defines Job evaluation as “a process of determining the relative
worth of the various jobs within the organisation so that differential wages may be
paid to jobs of different worth”.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
92
BBA IIIrd Yr.
Kimball and Kimball define job evaluation “as an effort to determine the relative
value of every job in a plant to determine what the fair basic wage for such a job
should be.”
Job evaluation is defined as the systematic process of assessing the value of each job
in relation to other jobs in an organisation. It is intended to provide a rational,
orderly hierarchy of jobs based on their worth to the company by analysing the
difficulty of the work performed and the importance of the work to the organisation.
The factors used to assess a job’s worth are identified, defined, and weighted in the
company’s job evaluation plan.
Important Characteristics:
The main characteristics of job evaluation may be summed up as:
1. It is a method with a systematic approach.
2. It is an analysis of the work involved in its starting point.
3. It is an attempt to determine the requirements of the work involved for any
incumbent.
4. It is a process by which jobs in an organisation are appraised.
5. It is a process of analysing and describing positions, grouping them, and
determining their relative value by comparing the duties of different positions in
terms of their different responsibilities and other requirements.
6. It is a system to deal exclusively with assessment of the job and not concerned with
employees assigned to the job.
7. It is designed only to establish wage differentials and is not concerned with the
absolute wage level.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
93
BBA IIIrd Yr.
Main Objectives:
The objectives of job evaluation are enumerated below:
1. To secure and maintain complete, accurate and impersonal descriptions of each
distinct job or occupation in the entire plant.
2. To provide a standard procedure for determining the relative worth or value of
each job in a plant.
3. To determine a rate of pay for each job which is fair and equitable with relation to
other jobs in the plant, community and industry.
4. To ensure that like wages are paid to all qualified employees on like work.
5. To promote fair and accurate consideration of all employees for advancement and
transfer.
6. To provide a factual basis for the consideration of wage rates for similar jobs both
within the community and within the industry.
7. To provide information for the work organisation, employee’s selection and
training and numerous other important purposes.
Significance:
Job evaluation is a valuable tool that helps in achieving wage rate consistency as well
as developing good industrial relations.
The significance of job evaluation can be determined through the following
points:
i. Taking account of all the factors that are useful in determining wages and salaries
ii. Maintaining harmony between the union and the management
iii. Standardizing the wage determination process
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
94
BBA IIIrd Yr.
iv. Compensating the employees as per the requirements of the job to avoid biasness
and promote equality in payment of wages
v. Minimizing the cost of recruitment
Process of Job Evaluation:
It is a systematic process of evaluating the worth of a job in relation to other jobs in
the organisation. HR has to take initiative in developing and implementing an
appropriate job evaluation programme in consultation with senior managers in the
organisation.
The following factors have to be considered for successful introduction of the
system:
a. The management has to explain the objectives and advantages of the job
evaluation programme and seek the acceptance of employees and the trade union.
b. A committee comprising of HR manager and senior managers are to be formed
and they should receive adequate training well in advance.
c. Selection of the most appropriate job evaluation system.
d. The committee has to decide about the different jobs to be evaluated.
e. Written job analysis document will provide adequate information about each job
and each job has to be thoroughly studied.
f. Grading/classifying the jobs based on relative worth of each job.
g. Explain to the employees the outcome of the job evaluation programme and
Clarify doubts if any.
h. Make changes, if required, based on the feedback.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
95
BBA IIIrd Yr.
i. Prepare a document giving the details of the job evaluation process and the worth
of each job in the organisation for the purpose of salary fixation, recruitment,
selection and promotion.
j. Periodical review to keep it updated.
Limitations:
Following are the limitations of job evaluation:
(1) A job evaluation frequently favours groups different from those which are
favoured by the market. This is evident from the observations of Kerry and Fishers.
They observe, the jobs which tend to rate high as compared with the market are those
of janitor, nurse and typist, while craft rates are relatively low. Weaker groups are
better served by an evaluation plan than by the market; the former places the
emphasis not on force but on enquiry.
(2) Substantial differences exist between factors and the factors emphasised in the
market. These differences are wider in cases in which the average pay offered by a
company is lower than that prevalent in other companies in the same industry or in
the same geographical area.
(3) Though many ways of applying the jobs evaluation technique are available, rapid
changes in technology and in the supply and demand of particular skills have given
rise to problems of adjustment. These need to be probed.
(4) Higher rates of pay for some jobs at the earlier stages than, other jobs or the
evaluation of a higher job higher in the organisational hierarchy at a lower rate than
another job relatively lower in the organisational hierarchy often given rise to human
relations problems/and lead to grievances among those holding these jobs.
(5) Job factors fluctuate because of changes in production technology, information
systems, and division of labour and such other factors. Therefore, the evaluation of a
job today is made on the basis of job factors, and does not reflect the time job value
in future. In other words, continuing attention and frequent evaluation of a job are
essential.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
96
BBA IIIrd Yr.
(6) When job evaluation is applied for the first time in any organisation, it
creates doubts and often fears in the minds of those, whose jobs are being
evaluated. It may also disrupt the existing social and psychological relations
his.
(7) Job evaluation takes a long time to install, requires specialised technical
personnel, and may be costly.
(8) When job evaluation results in substantial changes in the existing wage
structure, the possibility of implementing these changes in a relatively short
period may be restricted by the financial limits within which the firm has to
operate.
(9) A large number of jobs are called red circle jobs. Some of these may be
getting more and others less than the rate determined by job evaluation.
Important Steps Involved:
Job evaluation typically, involves four steps:
1. Job analysis;
2. Job documentation;
3. Job rating using the organisation’s job evaluation plan; and
4. Creating the job hierarchy.
Step # 1. Job Analysis:
Job analysis is the process of collecting and evaluating relevant information about
jobs. The data collected should clarify the nature of the work being performed
(principal tasks, duties, and responsibilities) as well as the level of the work being
performed. Information should include the types and extent of knowledge, skill,
mental and physical efforts required, as well as the conditions under which the work
is typically performed.
Step # 2. Job Documentation:
Job documentation is the process of recording job content information, usually in the
form of a written job description, one of the most important products of job analysis.
Most job description of the duties, examples of work typically performed, and a
statement identifying the knowledge, abilities, skills, and other characteristics
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
97
BBA IIIrd Yr.
(KASOCs) that are required to satisfactorily perform the duties. The ideal job
description for compensation reflects not just information concerning “what” a job
does, but also the “how” and “why” the duties.
Step # 3. Rating the Job:
In the third step, a job’s assigned duties are assessed using the job evaluation plan, or
instrument selected by the organisation.
Discussions about job evaluation approaches focus attention on three
basic models:
a. Job ranking,
b. Job classification, and
c. Point factor plans.
a. Job Ranking:
The oldest, fastest, and simplest method of job evaluation, job ranking
involves ordering jobs from highest to lowest based on some definition of
value or contribution. The job that evaluators believe to be the most valuable is
placed first, the job that evaluators believe to be the least valuable is placed
last and other jobs are ranked in a similar fashion in between, producing a
hierarchy.
Job Classification:
This method was originally developed, and continues to be used by the
government. Within this approach, each job is measured against a pre-existing
set of job classes that have been designed to cover the full range of possible
positions that would be employed by the government. Broad descriptions or
specifications are designed in advance to delineate the characteristics of the
jobs that would be placed within that category, within this method, job
evaluation involves comparing a position with these generic descriptions and
deciding where it fits best; that is, which job level of responsibility assigned to
the job under review.
c. Point Factor Method:
Under a point factor plan, various factors are the basis for determining relative
worth. Factors are the specific characteristics of jobs that will be measured. In
choosing factors, the organisation decides – “what particular job components
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
98
BBA IIIrd Yr.
do we value? What job characteristics will we pay for?” Mental effort,
responsibility, complexity of works physical demands, skill required, and
working conditions are the most common factors. Factors chosen by a
company for use in a job evaluation plan should be for four characteristics.
Step # 4. Creating the Job Hierarchy:
The result of a job evaluation plan is a hierarchical ordering of jobs in terms of
their relative worth to the organisation. Whether it is created by totalling the
points assigned to each position, the resulting top-down list should reflect an
ordering of position that makes sense to and is meaningful for a particular
organisation.
Methods:
Method # 1. Ranking System:
Under this system, all the jobs are arranged or ranked in the order of their
importance from the lowest to the highest or in the reverse order. The jobs can
be rated within the department or a cluster of jobs from different departments
can be considered for rating. Job description may be used for ranking different
jobs.
Method # 2. Job Classification or Grading:
A number of predetermined grades or classifications are determined by a
committee of ratters. The jobs are assigned to the grade or class. After detailed
job analysis, jobs are grouped into various classes or grades which indicate
different pay levels. For each grade/class, there is detailed description so that
the employees assigned to particular grade or class. Grade description is based
on several factors such as education, independent working, knowledge, skills,
attitude, leadership qualities, decision making ability etc.
Method # 3. The Points System:
The Points System is one of the widely used job evaluation plan. The points
system involves identifying a number of job factors and sub-factors and then
determining the degree to which these factors are present in the job. Points are
assigned for each degree of each factor. The number of points for each factor is
added to obtain overall points. The sum of these points gives an index of the
relative importance of the jobs that are rated. Money values are assigned to
each of the jobs, based on the total value of each job.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
99
BBA IIIrd Yr.
Method # 4. The Factor Comparison Method:
Here, the analyst or committee selects some key jobs for which job
descriptions and wage rates are agreed upon and are acceptable to the workers
and management. Each job is ranked several times, once for each of the job
factors selected.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
100
BBA IIIrd Yr.
Wage & salary admin.
Wage and salary administration is a collection of practices and procedures used for
planning and distributing company-wide compensation programs for employees.
These practices include employees at all levels and are usually handled by the
accounting department of a company.
OR
Wage and salary administration is defined as the process by which wage and salary
levels and structures are determined in organisational settings.
Wages are payments for labour services rendered frequency, expressed in hourly
rates, while a salary is a similar payment, expressed in weekly, monthly or annual
rates.
A ‘wage’ (or pay) is the remuneration paid, for the service of labour in production,
periodically to an employee/worker. “Wages” usually refer to the hourly rate or daily
rate paid to such groups as production and maintenance employees (“blue-collar
workers”).
Salary’ normally refers to the weekly or monthly rates paid to clerical, administrative
and professional employees (“white-collar workers”).
Nature:
1. The basic purpose of wage and salary administration is to establish and maintain
an equitable wage and salary structure.
2. It is concerned with the establishment and maintenance of equitable labour cost
structure i.e. an optimal balancing of conflicting personnel interest so that the
satisfaction of the employees and employers is maximised and conflicts are
minimised.
3. The wage and salary administration is concerned with the financial aspects of
needs, motivation and rewards.
4. Employees should be paid according to the requirements of their jobs i.e. highly
skilled jobs are paid more compensation than low skilled jobs.
5. To minimise the chances of favouritism.
Characteristics:
1. Payment of wages is in accordance with the terms of contract between the
employer and the worker.
2. The wages are determined on the basis of time-rate system or piece-rate system.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
101
BBA IIIrd Yr.
3. Wages change with the change in the time spent by the labourer.
4. Wages create utility.
5. Wages may be paid weekly, fortnightly, hourly, or on monthly basis.
6. Wage is the reward paid to the workers for the services rendered by them.
7. Wages can be paid in cash or in kind.
8. All kinds of allowances are included in wages.
Its objectives are:
i. To compare or draft company HR policy
ii. Find out the income level and return ratio of similar industries
iii. To understand wage differentiations
iv. To examine the competitiveness of entry level employees
v. To establish hiring rates favourable to the community
vi. To keep abreast wage and salary rates with production cost
vii. To minimize labour turnover due to pay disparity
Viii. To increase employee’s satisfaction and morale
ix. To learn about the trend of perks and benefits in the market
x. To resolve existing labour problems concerning compensation.
Important Aspects:
Good wage administration should have the following aspects:
i) Wage policies need to be properly made keeping in mind –
a) Interest of management,
b) Interest of employees,
c) Interest of consumers, and
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
102
BBA IIIrd Yr.
d) Community
ii) Difference of pay based on job requirements like skill, effort, responsibility,
working conditions and mental and physical requirements.
iii) Wages and salaries should have parity existing in the labour market.
iv) The payment plan should distinguish between jobs and employees.
v) Wage policies should have clarify, and it should be in written form so as to enable
uniformity and stability.
vi) Wage decisions need to be carried out only against organisation’s well formulated
policies.
vii) Management should ensure that employees are fully aware of the existing wage
policies.
viii) Proper evaluation of wage policies to be carried out as and when it is required
and also to be checked. They need to be adequately amended and updated at regular
intervals.
ix) Performance rating and job description should be periodically checked and
updated for ready reference.
Principles:
Development and administration of sound wages and salary policies are not only
important but also complex managerial functions. The complexities stem from the
fact that on the one hand, a majority of union management problems and disputes
relate to the question of wage payment and on the other, remuneration is often one
of the largest components of the cost of production. Thus, it influences the survival
and growth of an organisation to the greatest extent.
The influence of remuneration over distribution of income, consumption, savings,
employment and prices is also significant. This aspect assumes all the greater
importance in an undeveloped economy like India where it becomes necessary to
take measures for a progressive reduction of the concentration of income and/or to
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
103
BBA IIIrd Yr.
combat inflationary trends. Thus, the wage policy of an organisation should not
become an evil to the economy.
There are several principles of wage and salary plans, policies and practices.
The important among them are:
(i) Wage and salary plans and policies should be sufficiently flexible;
(ii) Job evaluation must be done scientifically;
(iii) Wage and salary administration plans must always be consistent with overall
organisational plans and programmes;
(iv) These plans and programmes should be in conformity with the social and
economic objectives of the country like attainment of equality in income distribution
and controlling inflationary trends;
(v) Both these plans and programmes should be responsive to the changing local and
national conditions; and
(vi) These plans should simplify and expedite other administrative processes.
Steps:
For determining wage rate organization needs to take steps like:
i. Collecting information from other companies in respect of wages paid by them to
their employees (wage survey)
ii. Evaluation of each job (ascertaining worth of each job) of the organization.
iii. Classifying similar jobs into pay grades (establishing pay grades)
iv. Developing wage curve for assigning pay rates to each pay grade.
v. Developing pay-rate level (pay rate ranges) and adjusting pay rates.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
104
BBA IIIrd Yr.
Incentives:
Meaning:
The term incentive is used to describe material and non-material benefits to
employees in addition to their normal salaries for making their best efforts to
promote productivity and efficiency. It may take the form of wage payments related
to employees' performance in addition to the normal salaries given for the standard
work assigned to them. Such incentive plans must have a 'base line' standard so that
performance over and above this standard can be rewarded. These incentive plans
are linked directly or indirectly to standards of productivity or the profitability of the
organisation or to both the criteria.
Definition:
According to Wendell French, the purpose of incentive plans is to increase the
morale and motivation of employees to contribute to the goals of the organisation by
offering financial inducements above and beyond basic wages and salaries.
Megginson defines incentive wages as the extra compensation, paid to an individual,
for all production over a specified magnitude which stems from his/ her exercise of
more than normal skill, effort or concentration when accomplished in a
predetermined way involving standard tools, facilities and materials.
Types:
Incentives can be classified into three categories:
1. Financial incentives:
Some extra cash is offered for extra efficiency. For example, profit sharing plan and
group incentive plans.
2. Non-financial incentives:
When rewards or prizes are provided by the organization to motivate the employees
it is known as non-financial incentives.
3. Monetary and non-monetary incentives:
Many times, employees are rewarded with monetary and non-monetary incentives
that include promotion, seniority, recognition for merits, or even designation as
permanent employee.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
105
BBA IIIrd Yr.
Advantages:
1. Incentive plans motivate workers for higher efficiency and productivity.
2. It can improve the work-flow and work methods.
3. Incentive plans make employees hardworking and innovative.
4. When employees are dedicated, supervision costs can be reduced.
5. The National Commission on Labour says that under our conditions, wage
incentives are the cheapest, quickest, and sure means of increasing productivity.
6. Incentive plans help establish positive response in an organization.
7. It helps workers improve their standard of living.
8. The other benefits offered by incentive plans are reduced turnover, reduced
absenteeism, and reduced lost time.
Disadvantages:
1. Incentive plans can lead to disputes among workers, since some earn more than
others.
2. Hunger for money among the workers forces them to overwork, which may affect
their heath.
3. Some workers may involve in malpractices in order to earn more money.
4. For enhanced incentives, they may sacrifice quality.
5. It also leads to corruption by falsifying the production records.
6. Incentive plans can create tensions among different personnel.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
106
BBA IIIrd Yr.
Motivation:
Definitions
The word Motivation derives from the Latin word “Movere”. The Latin word
“Movere” means “To move”, “To drive” or “To drive forward” etc. Motivation can be
defined as stimulating, inspiring and inducing the employees to perform to their best
capacity. Motivation is a psychological term which means it cannot be forced on
employees. It comes automatically from inside the employees as it is the willingness to
do the work.
Joe Kelly defined Motivation as “Motivation is a process whereby needs instigate
behaviour directed towards the goals that can satisfy those needs.”
According to W. G. Scot, “Motivation means a process of stimulating people to action
to accomplish the desired goals.”
According to Michael J. Jucius, “Motivation is the act of stimulating someone or
oneself to get a desired course of action, to push the right button to get a desired
results.”
Process :
1. Unsatisfied need. Motivation process begins when there is an unsatisfied need in a
human being.
2. Tension. The presence of unsatisfied need gives him tension.
3. Drive. This tension creates an urge of drive in the human being an he starts looking
for various alternatives to satisfy the drive.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
107
BBA IIIrd Yr.
4. Search Behaviour. After searching for alternatives the human being starts behaving
according to chosen option.
5. Satisfied need. After behaving in a particular manner for a long time then he
evaluates that whether the need is satisfied or not.
6. Reduction of tension. After fulfilling the need the human being gets satisfied and
his tension gets reduced.
For example, if an employee develops a need to earn more, this need will make him
restless and he will start thinking how to satisfy his need. To satisfy his need he may
think of working hard in organization and get promotion so he will start working hard.
After sometime he will get incentives or increments or promotion which will satisfy his
need.
But motivation process does not end by satisfaction of one need. After fulfilling one
need another need develops and the same process continues till needs keep emerging
in human beings.
Types:
1. Achievement Motivation: It is the drive to pursue and attain goals. An individual
with achievement motivation wishes to achieve objectives and advance up on the
ladder of success. Here, accomplishment is important for its own shake and not for the
rewards that accompany it. It is similar to ‘Kaizen’ approach of Japanese Management.
2. Affiliation Motivation: It is a drive to relate to people on a social basis. Persons
with affiliation motivation perform work better when they are complimented for their
favourable attitudes and co-operation.
3. Competence Motivation: It is the drive to be good at something, allowing the
individual to perform high quality work. Competence motivated people seek job
mastery, take pride in developing and using their problem-solving skills and strive to
be creative when confronted with obstacles. They learn from their experience.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
108
BBA IIIrd Yr.
4. Power Motivation: It is the drive to influence people and change situations. Power
motivated people wish to create an impact on their organization and are willing to take
risks to do so.
5. Attitude Motivation: Attitude motivation is how people think and feel. It is their
self-confidence, their belief in themselves, their attitude to life. It is how they feel about
the future and how they react to the past.
6. Incentive Motivation: It is where a person or a team reaps a reward from an
activity. It is “You do this and you get that”, attitude. It is the types of awards and prizes
that drive people to work a little harder.
7. Fear Motivation: Fear motivation coercion’s a person to act against will. It is
instantaneous and gets the job done quickly. It is helpful in the short run.
Features:
1. Motivation is a psychological phenomenon. Motivation is an internal feeling
which means it cannot be forced on employees. The internal feelings such as need,
desire, aspirations etc. influence human behaviour to behave in a particular manner.
For example, desire to have a new house, respect and recognition etc.
2. Motivation produces goal directed behaviour. Motivation induces people to
behave in such a manner so that they can achieve their goal. Motivated person need
no supervision or direction. He will always work in desired manner. For example of a
person has a motive to get promotion so he will work efficiently to get promotion.
3. Motivators can be positive as well as negative. To motivate employees
managers use various motivators. Some motivators are positive and some are negative
few examples of positive motivators are promotion, increment, bonus, respect,
recognition etc. if employee does not improve his performance with positive
motivators then manager uses negative motivators such as warning, issue of memo,
demotion, stopping increments etc. sometimes fear of negative motivators also
induces person to behave in a desired manner.
4. Motivation is a complex process. Motivation is a complex and difficult task. In
order to motivate people a manager must understand various types of human need.
Human needs are mental feelings which can be measured accurately. If manager
measures them accurately then also every person uses different approaches to satisfy
his need. Some get satisfied with monetary incentives, some with non-monetary, some
with positive and some with negative motivators. So it is not possible to make
generalization in motivation.
5. Motivation is a dynamic and continuous process. Human beings are everchanging. Human needs are unlimited and go on changing continuously. Satisfaction
of one need gives rise to another so managers have to continuously perform the
function of motivation.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
109
BBA IIIrd Yr.
Importance:
1. Motivation helps to change from negative attitude to positive attitude. Without
motivation the employees try to perform minimum activities in the organization. But
the motivation fills in the desire to perform to their maximum level. All the resources
of the organization are of no use unless and until the employees use these resources.
The motivated employees make best use of the resources.
2. Motivation improves performance level of employees. The motivation improves the
efficiency level of employees which means the employees start performing the job to
the best of their ability with minimum wastage of time and resources because
motivated employees always go for best utilization of resources. The motivation
bridges the gap between the ability to work and willingness always improves
efficiency.
3. Help in achieving the organizational goals. The motivated employees always try to
achieve the organizational goal and contribute their best efforts for the realization of
organizational goal as they know with the achievement of organizational goal only they
can achieve their personal goal. All the employees contribute their efforts in one
direction of accomplishment of goal.
4. Motivation creates supportive work environment. In motivation the relations between
superior and subordinates are always improved. When the employees get their need
satisfied or get the recognition and respect in the organization then they always offer
a supportive hand to superiors. There is more co-operation and co-ordination in the
organization and all the employees work with the team spirit.
5. Motivation helps the managers to introduce changes. The motivated employees show
less resistance in accepting the changes according to changes in the business
environment because they know if the changes are not implements in the organization,
not only the organization will lose by this but the employees also will find it difficult to
get their needs fulfilled. Motivated employees are always supportive and co-operative
in accepting changes in the organization.
6. Reduction in Employee Turnover. The motivation creates confidence in the employees
to get their need satisfied in the organization itself. They always select the alternative
to remain in the organization and increase their earning rather than leaving the
organization and increasing their earnings. With motivation employee turnovers are
less because the satisfied employees never leave the job.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
110
BBA IIIrd Yr.
Advantages:
•
Increase in the efficiency and productivity of employees. Motivation ensures a high
level performance of employees.
•
Better co-operation from employees and cordial labor-management relations.
•
Reduction in the rate of labor absenteeism and turnover.
•
Reduction in the wastage’s and industrial accidents.
•
Improvement in the morale of employees.
•
Quick achievement of business/corporate objectives and favourable corporate image.
Benefits of Wages & Salary Administration.
Some of the Benefits of Wage and Salary Administration are:
1. Attract And Retain The Employees:
If an organisation possesses good wage and salary structure, it will attract and retain
suitable, qualified and experienced personnel.
2. Builds High Morale:
The wage rates established for various categories of jobs should be internally
consistent; it will motivate the employees of the organisation. It will build high
morale of employees and act as an incentive to greater employee productivity and
efficiency.
3. Satisfied Employees:
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
111
BBA IIIrd Yr.
A good wage and salary structure will keep the employees satisfied. There will be
lesser labour turnover, industrial disputes and employee grievances and exigencies.
4. Labour Cost Equitable:
A good wage and salary structure will maintain two types of equitabilities viz. (a)
labour cost equitable and (b) equitable wage and salary structure. Pay according to
the work performed by an employee. If an employee is performing hazardous work
pay him more.
5. No Favouritism/Bias:
If an organisation has definite wage and salary structure, favouritism/bias can be
avoided.
6. Clearly drawn line of promotion:
If a company has good wage and salary structure, it can have a definite sequence of
jobs and clearly drawn line of promotion.
7. Image of Progressive Employer:
A good and definite wage and salary structure would enable the company to project
in the public an image of a progressive employer.
8. Harmonious Industrial Relations:
A good wage and salary structure will serve as a sound basis for collective bargaining
and enable the maintenance of satisfactory union-management and employeemanagement relations.
9. Ensure Minimum Wages:
A good wage and salary structure should also conform to the minimum wage laws.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
112
BBA IIIrd Yr.
Recruitment,
Selection, methods of
selection, placement.
Recruitment:
Recruitment is a process of identifying, screening, shortlisting and hiring potential
resource for filling up the vacant positions in an organization. It is a core function of
Human Resource Management.
Recruitment is the process of choosing the right person for the right position and at
the right time. Recruitment also refers to the process of attracting, selecting, and
appointing potential candidates to meet the organization’s resource requirements.
Importance:
The hiring of the candidates can be done internally i.e., within the organization, or
from external sources. And the process should be performed within a time constraint
and it should be cost effective.
Importance of Recruitment
Recruitment is one of the most fundamental activities of the HR team. If the
recruitment process is efficient, then –
• The organization gets happier and more productive employees
• Attrition rate reduces.
• It builds a good workplace environment with good employee relationships.
• It results in overall growth of the organization.
Here is a list that shows the purpose and importance of Recruitment in an
organization:
• It determines the current and future job requirement.
• It increases the pool of job at the minimal cost.
• It helps in increasing the success rate of selecting the right candidates.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
113
BBA IIIrd Yr.
• It helps in reducing the probability of short term employments.
• It meets the organization’s social and legal obligations with regards to the work
force.
• It helps in identifying the job applicants and selecting the appropriate resources.
• It helps in increasing organizational effectives for a short and long term.
• It helps in evaluating the effectiveness of the various recruitment techniques.
• It attracts and encourages the applicants to apply for the vacancies in an
organization.
• It determines the present futures requirements of the organization and plan
according. • It links the potential employees with the employers.
• It helps in increasing the success ratio of the selection process of prospective
candidates.
• It helps in creating a talent pool of prospective candidates, which enables in
selecting the right candidates for the right job as per the organizational needs.
Factors Affecting Recruitment:
Recruitment is an important function of the Human Resource Management in an
organization, and it is governed by a mixture of various factors. Proactive HR
Professionals should understand these factors influencing the recruitment and take
necessary actions for the betterment of the organization.
When the market condition changes, the organization also needs to monitor these
changes and discover how it affects the resources and analyse these functions for
making recruitment an effective process.
We have Internal Factors as well as External Factors that influence the recruitment
process. In this chapter, we will be discussing these factors in detail.
Internal Factors
Organizations have control over the internal factors that affect their recruitment
functions. The internal factors are:
• Size of organization
• Recruiting policy
• Image of organization
• Image of job
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
114
BBA IIIrd Yr.
Size of Organization
The size of the organization is one of the most important factors affecting the
recruitment process. To expand the business, recruitment planning is mandatory for
hiring more resources, which will be handling the future operations.
Recruiting Policy
Recruitment policy of an organization, i.e., hiring from internal or external sources
of organization is also a factor, which affects the recruitment process. It specifies the
objectives of the recruitment and provides a framework for the implementation of
recruitment programs.
Image of Organization
Organizations having a good positive image in the market can easily attract
competent resources. Maintaining good public relations, providing public services,
etc., definitely helps an organization in enhancing its reputation in the market, and
thereby attract the best possible resources.
Image of Job
Just like the image of organization, the image of a job plays a critical role in
recruitment. Jobs having a positive image in terms of better remuneration,
promotions, recognition, good work environment with career development
opportunities are considered to be the characteristics to attract qualified candidates.
External Factors:
External factors are those that cannot be controlled by an organization. The external
factors that affect the recruitment process include the following:
• Demographic factors –
Demographic factors are related to the attributes of potential employees such as
their age, religion, literacy level, gender, occupation, economic status, etc.
• Labor market –
Labor market controls the demand and supply of labor. For example, if the supply of
people having a specific skill is less than the demand, then the hiring will need more
efforts. On the other hand, if the demand is less than the supply, the hiring will be
relative easier.
• Unemployment rate –
If the unemployment rate is high in a specific area, hiring of resources will be simple
and easier, as the number of applicants is very high. In contrast, if the
unemployment rate is low, then recruiting tends to be very difficult due to less
number of resources.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
115
BBA IIIrd Yr.
• Labor laws –
Labor laws reflect the social and political environment of a market, which are
created by the central and state governments. These laws dictate the compensation,
working environment, safety and health regulations, etc., for different types of
employments. As the government changes, the laws too change.
• Legal considerations –
Job reservations for different castes such as STs, SCs, and OBCs are best examples of
legal considerations. These considerations, passed by government, will have a
positive or negative impact on the recruitment policies of the organizations.
• Competitors –
When organizations in the same industry are competing for the best qualified
resources, there is a need to analyse the competition and offer the resources packages
that are best in terms of industry standards.
Process:
To increase the efficiency of hiring, it is recommended that the HR team of an
organization follows the five best practices (as shown in the following image). These
five practices ensure successful recruitment without any interruptions. In addition,
these practices also ensure consistency and compliance in the recruitment process
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
116
BBA IIIrd Yr.
Recruitment process is the first step in creating a powerful resource base. The
process undergoes a systematic procedure starting from sourcing the resources to
arranging and conducting interviews and finally selecting the right candidates
1. Recruitment Planning
Recruitment planning is the first step of the recruitment process, where the vacant
positions are analysed and described. It includes job specifications and its nature,
experience, qualifications and skills required for the job, etc.
A structured recruitment plan is mandatory to attract potential candidates from a
pool of candidates. The potential candidates should be qualified, experienced with a
capability to take the responsibilities required to achieve the objectives of the
organization.
2. Recruitment Strategy:
Recruitment strategy is the second step of the recruitment process, where a strategy
is prepared for hiring the resources. After completing the preparation of job
descriptions and job specifications, the next step is to decide which strategy to adopt
for recruiting the potential candidates for the organization.
While preparing a recruitment strategy, the HR team considers the following points:
• Make or buy employees
• Types of recruitment
• Geographical area
• Recruitment sources
The development of a recruitment strategy is a long process, but having a right
strategy is mandatory to attract the right candidates. The steps involved in
developing a recruitment strategy include:
• Setting up a board team
• Analysing HR strategy
• Collection of available data
• Analysing the collected data
• Setting the recruitment strategy
3. Searching the Right Candidates:
Searching is the process of recruitment where the resources are sourced depending
upon the requirement of the job. After the recruitment strategy is done, the searching
of candidates will be initialized. This process consists of two steps:
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
117
BBA IIIrd Yr.
• Source activation: Once the line manager verifies and permits the existence of the
vacancy, the search for candidates’ starts.
• Selling: Here, the organization selects the media through which the
communication of vacancies reaches the prospective candidates. Searching involves
attracting the job seekers to the vacancies. The sources are broadly divided into two
categories: Internal Sources and External Sources.
Internal Sources
Internal sources of recruitment refer to hiring employees within the organization
through:
• Promotions
• Transfers
• Former Employees
• Internal Advertisements (Job Posting)
• Employee Referrals
• Previous Applicants
External Sources
External sources of recruitment refer to hiring employees outside the organization
through:
• Direct Recruitment
• Employment Exchanges
• Employment Agencies
• Advertisements
• Professional Associations
• Campus Recruitment
• Word of Mouth
4. Screening/Shortlisting
Screening starts after completion of the process of sourcing the candidates.
Screening is the process of filtering the applications of the candidates for further
selection process.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
118
BBA IIIrd Yr.
Screening is an integral part of recruitment process that helps in removing
unqualified or irrelevant candidates, which were received through sourcing. The
screening process of recruitment consists of three steps:
Reviewing of Resumes and Cover Letters
Reviewing is the first step of screening candidates. In this process, the resumes of
the candidates are reviewed and checked for the candidates’ education, work
experience, and overall background matching the requirement of the job.
While reviewing the resumes, an HR executive must keep the following points in
mind, to ensure better screening of the potential candidates:
• Reason for change of job
• Longevity with each organization
• Long gaps in employment
• Job-hopping
• Lack of career progression
Conducting Telephonic or Video Interview
Conducting telephonic or video interviews is the second step of screening
candidates. In this process, after the resumes are screened, the candidates are
contacted through phone or video by the hiring manager. This screening process has
two outcomes:
• It helps in verifying the candidates, whether they are active and available.
• It also helps in giving a quick insight about the candidate’s attitude, ability to
answer interview questions, and communication skills.
Identifying the top candidates
Identifying the top candidates is the final step of screening the resumes/candidates.
In this process, the cream/top layer of resumes are shortlisted, which makes it easy
for the hiring manager to take a decision. This process has the following three
outcomes:
• Shortlisting 5 to 10 resumes for review by the hiring managers
• Providing insights and recommendations to the hiring manager
• Helps the hiring managers to take a decision in hiring the right candidate
5. Evaluation and Control
Evaluation and control is the last stage in the process of recruitment. In this process,
the effectiveness and the validity of the process and methods are assessed.
Recruitment is a costly process, hence it is important that the performance of the
recruitment process is thoroughly evaluated.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
119
BBA IIIrd Yr.
The costs incurred in the recruitment process are to be evaluated and controlled
effectively. These include the following:
• Salaries to the Recruiters
• Advertisements cost and other costs incurred in recruitment methods, i.e., agency
fees.
• Administrative expenses and Recruitment overheads
• Overtime and Outstanding costs, while the vacancies remain unfilled
• Cost incurred in recruiting suitable candidates for the final selection process
• Time spent by the Management and the Professionals in preparing job description,
job specifications, and conducting interviews.
Finally, the question that is to be asked is, whether the recruitment methods used
are valid or not? And whether the recruitment process itself is effective or not?
Statistical information on the costs incurred for the process of recruitment should be
effective.
Types:
Recruitment is of 2 types:
1.
Internal Recruitment –
It is a recruitment which takes place within the concern or organization.
Internal sources of recruitment are readily available to an organization.
Internal sources are primarily three - Transfers, promotions and Reemployment of ex-employees.
Internal recruitment may lead to increase in employee’s productivity as their
motivation level increases. It also saves time, money and efforts. But a
drawback of internal recruitment is that it refrains the organization from new
blood. Also, not all the manpower requirements can be met through internal
recruitment. Hiring from outside has to be done.
Internal sources are primarily 3 types
a. Transfers - Transfer refers to the process of interchanging from one
job to another without any change in the rank and responsibilities. It
can also be the shifting of employees from one department to another
department or one location to another location, depending upon the
requirement of the position.
b. Promotions (through Internal Job Postings) - Promotion refers
to upgrading the cadre of the employees by evaluating their
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
120
BBA IIIrd Yr.
performance in the organization. It is the process of shifting an
employee from a lower position to a higher position with more
responsibilities, remuneration, facilities, and status. Many
organizations fill the higher vacant positions with the process of
promotions, internally.
c. Re-employment of ex-employees - Re-employment of exemployees is one of the internal sources of recruitment in which
employees can be invited and appointed to fill vacancies in the concern.
There are situations when ex-employees provide unsolicited
applications also.
2.
External Recruitment –
External sources of recruitment have to be solicited from outside the
organization. External sources are external to a concern. But it involves lot of
time and money. The external sources of recruitment include - Employment at
factory gate, advertisements, employment exchanges, employment agencies,
educational institutes, labour contractors, recommendations etc.
a. Employment at Factory Level - This a source of external
recruitment in which the applications for vacancies are presented on
bulletin boards outside the Factory or at the Gate. This kind of
recruitment is applicable generally where factory workers are to be
appointed. There are people who keep on soliciting jobs from one place
to another. These applicants are called as unsolicited applicants. These
types of workers apply on their own for their job. For this kind of
recruitment workers have a tendency to shift from one factory to
another and therefore they are called as “badli” workers.
b. Advertisement - It is an external source which has got an important
place in recruitment procedure. The biggest advantage of
advertisement is that it covers a wide area of market and scattered
applicants can get information from advertisements. Medium used is
Newspapers and Television.
c. Employment Exchanges - There are certain Employment exchanges
which are run by government. Most of the government undertakings
and concerns employ people through such exchanges. Now-a-days
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
121
BBA IIIrd Yr.
recruitment in government agencies has become compulsory through
employment exchange.
d. Employment Agencies - There are certain professional
organizations which look towards recruitment and employment of
people, i.e. these private agencies run by private individuals supply
required manpower to needy concerns.
e. Educational Institutions - There are certain professional
Institutions which serves as an external source for recruiting fresh
graduates from these institutes. This kind of recruitment done through
such educational institutions, is called as Campus Recruitment. They
have special recruitment cells which helps in providing jobs to fresh
candidates.
f. Recommendations - There are certain people who have experience
in a particular area. They enjoy goodwill and a stand in the company.
There are certain vacancies which are filled by recommendations of
such people. The biggest drawback of this source is that the company
has to rely totally on such people which can later on prove to be
inefficient.
g. Labour Contractors - These are the specialist people who supply
manpower to the Factory or Manufacturing plants. Through these
contractors, workers are appointed on contract basis, i.e. for a
particular time period. Under conditions when these contractors leave
the organization, such people who are appointed have to also leave the
concern.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
122
BBA IIIrd Yr.
Selection.
Definition:
Selection is the process of picking or choosing the right candidate, who is most
suitable for a vacant job position in an organization. In others words, selection can
also be explained as the process of interviewing the candidates and evaluating their
qualities, which are required for a specific job and then choosing the suitable
candidate for the position.
The selection of a right applicant for a vacant position will be an asset to the
organization, which will be helping the organization in reaching its objectives.
Different authors define Selection in different ways.
Here is a list of some of the definitions:
• Employee selection is a process of putting a right applicant on a right job.
• Selection of an employee is a process of choosing the applicants, who have the
qualifications to fill the vacant job in an organization.
• Selection is a process of identifying and hiring the applicants for filling the
vacancies in an organization.
• Employee selection is a process of matching organization’s requirements with the
skills and the qualifications of individuals.
A good selection process will ensure that the organization gets the right set of
employees with the right attitude.
Importance:
•
Selection is an important process because hiring good resources can help
increase the overall performance of the organization. In contrast, if there is
bad hire with a bad selection process, then the work will be affected and the
cost incurred for replacing that bad resource will be high.
•
The purpose of selection is to choose the most suitable candidate, who can
meet the requirements of the jobs in an organization, who will be a successful
applicant. For meeting the goals of the organization, it is important to
evaluate various attributes of each candidate such as their qualifications,
skills, experiences, overall attitude, etc. In this process, the most suitable
candidate is picked after the elimination of the candidates, who are not
suitable for the vacant job.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
123
BBA IIIrd Yr.
•
The organization has to follow a proper selection process or procedure, as a
huge amount of money is spent for hiring a right candidate for a position. If a
selection is wrong, then the cost incurred in induction and training the wrong
candidate will be a huge loss to the employer in terms of money, effort, and
also time. Hence, selection is very important and the process should be perfect
for the betterment of the organization.
Advantages:
Advantages of Selection A good selection process offers the following advantages:
• It is cost-effective and reduces a lot of time and effort.
• It helps avoid any biasing while recruiting the right candidate.
• It helps eliminate the candidates who are lacking in knowledge, ability, and
proficiency.
• It provides a guideline to evaluate the candidates further through strict verification
and reference-checking.
• It helps in comparing the different candidates in terms of their capabilities,
knowledge, skills, experience, work attitude, etc.
A good selection process helps in selecting the best candidate for the requirement of
a vacant position in an organization
Steps or Method of Selection:
.Preliminary Interview: The purpose of preliminary interviews is basically to
eliminate unqualified applications based on information supplied in application
forms. The basic objective is to reject misfits. On the other hands preliminary
interviews is often called a courtesy interview and is a good public relations exercise.
Selection Tests: Jobseekers who past the preliminary interviews are called for
tests. There are various types of tests conducted depending upon the jobs and the
company. These tests can be Aptitude Tests, Personality Tests, and Ability Tests and
are conducted to judge how well an individual can perform tasks related to the job.
Besides this there are some other tests also like Interest Tests (activity preferences),
Graphology Test (Handwriting), Medical Tests, Psychometric Tests etc.
Employment Interview: The next step in selection is employment interview.
Here interview is a formal and in-depth conversation between applicant’s
acceptability. It is considered to be an excellent selection device. Interviews can be
One-to-One, Panel Interview, or Sequential Interviews. Besides there can be
Structured and Unstructured interviews, Behavioural Interviews, Stress Interviews.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
124
BBA IIIrd Yr.
Reference & Background Checks: Reference checks and background checks are
conducted to verify the information provided by the candidates. Reference checks
can be through formal letters, telephone conversations. However it is merely a
formality and selections decisions are seldom affected by it.
Selection Decision: After obtaining all the information, the most critical step is
the selection decision is to be made. The final decision has to be made out of
applicants who have passed preliminary interviews, tests, final interviews and
reference checks. The views of line managers are considered generally because it is
the line manager who is responsible for the performance of the new employee.
Physical Examination: After the selection decision is made, the candidate is
required to undergo a physical fitness test. A job offer is often contingent upon the
candidate passing the physical examination.
Job Offer: The next step in selection process is job offer to those applicants who
have crossed all the previous hurdles. It is made by way of letter of appointment.
Final Selection
Placement:
Meaning:
In the words of Pigors and Myers, “Placement is the determination of the job to
which an accepted candidate is to be assigned and his assignment to that job.
It is a matching of what the supervisor has reason to think he can do with the job
demands. It is a matching of what he imposes in strain, working conditions and what
he offers in the form of pay roll, companionship with others, promotional
possibilities etc.”
n the simple words placement is concerned with the sending of newly selected
personnel to some department for work. It is also concerned with the assignment of
authority and responsibility to the new comer in the organisation.
A candidate who passes all the steps in the selection process is then offered the job.
The placement problem arises when the selected candidate comes to the organisation
for joining the job. It is important to see that the right man should be placed on the
right job.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
125
BBA IIIrd Yr.
Importance:
1. If the employees are properly placed, they will enjoy their work and
organisation will not have to suffer the problem of employee turnover.
2. If employees don’t like their work, they start making excuses from the
job and remain absent. Effective placement will keep the absenteeism
rate low.
3. Morale of workers increases because they get the work of their choice, if
correctly placed.
4. Workers will work attentively and safety of workers will be ensured
and lesser accidents will happen.
5. Workers will be satisfied with their jobs and there will be no reasons
for disputes, so human relations will improve.
6. Through proper placement, misfit between the job and person can be
avoided.
7. Efficient and effective performance of individual tasks will ensure the
achievement of organisational goals.
8. Productivity i.e., ratio of output to input increases as wastage and
abnormal losses decrease.
Placement should be done keeping into view the job and social, psychological
& emotional needs of person.
Principles:
(i) Job requirement – Man should be placed on the job according to the requirement
of the job rather than qualification and requirement of the man.
(ii) Qualification – The job offered should match with the qualification possessed by
an employee.
(iii) Information – All the information relating to the job should be given to the
employees along with the prevailing working conditions. They should also be made
known that they have to pay penalty for wrong doing.
(iv) Loyalty and Co-operation – Every effort should be made to develop a sense of
loyalty and co-operation in employees to make them understand their
responsibilities
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
126
BBA IIIrd Yr.
Benefits:
After a candidate has been selected, he should be placed on a suitable job. Placement
is actual posting of an employee to a specific job. It involves assigning duties and
responsibilities to an employee. The organisation normally decides about final
placement after initial training or probation. The supervisor’ of the new recruit takes
decision regarding placement in consultation with senior manager in the
department.
Major benefits of placement are given below:
1. Building support with peers, juniors, seniors in the department within a short
period
2. Able to adjust himself to the new job
3. Avoid mistakes
4. Regular attendance
5. High level of involvement in the job
6. Good performance in the job
Problem Faced:
The personnel manager faces certain problems in placement of new employees
in the jobs for which they have been selected.
These problem are as follows:
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
127
BBA IIIrd Yr.
Problem # 1. Employees Expectations:
What the new employee expects from his job is the first problem in his placement. It
he expects high salary, independent and challenging work but the job offers low
salary, dependent and routine work, the employee finds himself misfit to his job.
Problem # 2. Job Expectations:
Sometimes, the employee’s expectations from his job are more than his abilities or
skills. In such a case, the personnel manager finds the mismatch between the
employee and the job.
Problem # 3. Technological Change:
Sometimes, technological changes bring radical changes in job description and
specifications, resulting in the mismatch between the employee and the job.
Problem # 4. Changes in Organizational Structure:
Some strategic changes like mergers, acquisitions, amalgamations, delayering,
downsizing etc. bring about changes in organizational structure, which in their turn,
bring about changes in the jobs. Such changes are likely to result in misfit between
the employees and the job.
Problem # 5. Social and Psychological Factors:
Some social and psychological factors involved in team work or group formation
result in the mismatch between employees and the jobs.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
128
BBA IIIrd Yr.
UNIT-8
Placement and
Induction, Transfer
and Promotion,
Training
Induction
Meaning:
• A new entrant joins an organisation as a stranger to his co-workers, job and
organisation. This causes the initial anxiety for the new entrant. It culminates
at times to surprise resignation by the new employee.
• Hence, arrangements need to be made to make the integration of the new
employee into the organisation as smooth and as free of anxiety as possible.
Induction helps do so.
• Induction is welcoming a new employee to the organisation. In other words,
it is a well-orchestrated event to socialise the new entrant with the people and
the work environment in a particular organization.
• According to Michael Armstrong “Induction is the process of receiving and
welcoming an employee when he first joins a company and giving him basic
information he needs to settle down quickly and happily and start work”.
Objectives of Induction
• When a new entrant joins an organisation, he/she is an utter stranger to the
co-workers, workplace and work environment. As such, he/she may feel
insecure, shy and nervous. The first few days may be all anxious and
disturbing ones for the new entrant.
• Particularly when a new entrant comes from rural area, he/she finds
himself/herself completely at sea in an industrial town and city. Then,
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
129
BBA IIIrd Yr.
induction helps reduce such anxieties and dispels doubts and nervousness
from the mind of the new entrant.
• Therefore, an induction programme is designed to achieve the following
Objectives:
1. To reduce the initial anxiety all new entrants feel when they join a new
job in a new organisation.
2. To familiarize the new employees with the job, people, work-place,
work environment and the organisation.
3. To facilitate outsider – insider transition in an integrated manner.
4. To reduce exploitation by the unscrupulous co-workers.
5. To reduce the cultural shock faced in the new organisation.
Benefits of Induction :
A formal induction programme may provide the following benefits to the
new comer and the organisation:
1. A well-designed induction programme reduces anxiety, nervousness,
and absenteeism and employee turnover.
2. Induction helps minimize the reality or cultural shock new employees
undergo on joining a new organisation.
3. Effective induction also helps integrate the new employees into the
organisation and fosters the feeling of belongingness to the new
organisation.
4. Induction also binds the newcomer and the present employees in a
team.
• B.P. Billimoria has appreciated the benefits of induction in these words:
“Induction has a greater significance in a developing country like India, where
the percentage of illiteracy is very high. The worker finds himself completely
at sea when by force of circumstances he has to shift from rural surroundings
into an industrial environment. It is no use trying to push a handbook of
certified rules and regulations into his hands and expecting him to turn out
into a loyal and efficient employee. He needs a short and simple induction
conducted by someone who speaks his own language. This will go a long way
in reducing turnover and, above all, in preventing a worker from the
likelihood of falling a prey to subversive elements which thrive on creating
labour unrest by misrepresenting employees to illiterate employees”.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
130
BBA IIIrd Yr.
Why Induction?
Reasons Induction Programs are Essential
1 - Workplace Culture
New employees need to align and be assimilated into your workplace culture.
They need to understand your values and the behaviours that drive those
values.
#2 - Compliance
Educate employees about your company policies on safety, bullying, sexual
harassment, and other critical policies. This will help to protect the business
by preventing incidents and better defending any claim.
#3 – Retention
Inductions programs help employees to adjust to their new role, make a
smoother transition into the business and assimilate into the company
culture. This ultimately helps retention of employees and saves on recruitment
costs and helps employees to feel supported.
#4 - Productivity
Employees learn the right way of doing things from the beginning, instead of
being shown shortcuts or the other
#5 - Saves Time & Money
Saves your business time and money in the long term as a well-developed
induction program can be easily replicated for each new employee (great
systems available to automate) and added to with new information when
necessary.
And a bonus #6 is...Company Reputation
Inductions help to establish a professional impression of the business,
including the way you deliver customer service.
Transfer
Meaning:
• A transfer refers to lateral movement of employees within the same grade,
from one job to another. According to Flippo “a transfer is a change in the job
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
131
BBA IIIrd Yr.
(accompanied by a change in the place of the job) of an employee without a
change in responsibilities or remuneration”.
• Transfer differs from promotion in the sense that the latter involves a change
of job involving increase in salary, authority, status and responsibility, while
all these remain unchanged /stagnant in the case of former. Also, transfers are
frequent and regular whereas promotions are infrequent, if not irregular.
• Transfer may be initiated either by the company or the employee. In
practice, the company may transfer the employee to the place where he/she
can prove more useful and effective. Similarly, employee may initiate transfer
to a location where he/she is likely to enjoy greater satisfaction.
• Transfer could be permanent, temporary or ad hoc to meet emergencies.
Usually, permanent transfers are made due to changes in work load or death,
retirement, resignation, etc. of some employee. As regards temporary transfer,
it arises mainly due to ill health, absenteeism, etc. of some employee.
Need and Purpose of Transfer
• The need for making transfer is left for various reasons as listed below:
• 1. To Meet Organisational Needs:
Changes in technology, volume of production, production schedule, product
line, quality of products, organisational structure, etc. necessitate an
organisation to reassign jobs among employees so that right employee is
placed on the right job.
• 2. To Satisfy Employee Needs:
Employees may request for transfer in order to satisfy their desire to work in a
particular department, place and under some superior. Personal problems of
employee like health, family circumstances, and interpersonal conflicts may
also necessitate transfer.
• 3. To Better Utilize Employee:
When an employee is not performing satisfactorily on one job and
management thinks that his/her capabilities would be utilized better
elsewhere, he/she may be transferred to other job.
• 4. To Make the Employee More Versatile:
In some organisations like banks, employees after working on a job for a
specified period are transferred to other job with a view to widen their
knowledge and skill and also reduce monotony. This is also called ‘job
rotation.
• 5. To Adjust the Workforce:
Work force can be transferred from the departments / plants where there is
less work to the departments/plants where more work is.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
132
BBA IIIrd Yr.
• 6. To Provide Relief:
Transfers may be made to give relief to the employees who are overburdened
or doing hazardous work for long period.
• 7. To Punish Employee
Management may use transfer as an instrument to penalize employees who
are indulged in undesirable activities. As a disciplinary action, employees are
transferred to remote and far-flung areas.
Types of Transfer:
• 1. Production Transfer:
• Such transfers are made when labour requirements in one division or
branch is declining. The surplus employees from such division are transferred
to those divisions or branches where there is shortage of employees. Such
transfers help avoid lay off and stabilize employment.
• 2. Remedial Transfer:
• Such transfers are affected to correct the wrong selection and placement of
employees. A wrongly placed employee is transferred to more suitable job.
Such transfers protect the interest of the employee.
• 3. Replacement Transfer:
• Replacement transfers are similar to production transfers in their inherent,
i.e. to avoid layoffs. Replacement transfers are affected when labour
requirements are declining and are designed to replace a new employee by an
employee who has been in the organisation for a sufficiently long time. The
purpose of these transfers is to retain long service employees in the
organisation and also give them some relief from the heavy pressure of work.
•4.Versatility Transfer:
• These transfers are also known as ‘job rotation’ In such transfers, employees
are made move from one job to another to gain varied and broader experience
of work. It benefits both the employee and organisation. It reduces boredom
and monotony and gives job enrichment to the employee. Also, employees’
versatility can be utilized by the organisation as and when needed.
• 5. Shift Transfers:
• These transfers are affected in the organisations where work progresses for
24 hours or in shifts. Employees are transferred from one shift to another
usually on the basis of mutual understanding and convenience.
• 6. Penalty Transfer:
• Management may use transfer as an instrument to penalize employees’
involved in undesirable activities in the organisation. Employee transfer from
one’s place of convenience to a far-flung and remote area is considered as a
penalty to the employee. Demot
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
133
BBA IIIrd Yr.
Promotion
Meaning:
• Promotion is vertical movement of an employee within the organisation. In other
words, promotion refers to the upward movement of an employee from one job to
another higher one, with increase in salary, status and responsibilities.
• Promotion may be temporary or permanent, depending upon the needs of the
organisation.
• There can be ‘dry promotion’ also where an employee is assigned to a higher level
job without increase in pay.
• Promotion has an in-built motivational value as it elevates the authority, power and
status of an employee within an organisation. It is considered good personnel policy
to fill vacancies in a higher job through promotions from within because such
promotions provide an inducement and motivation to the employees and also
remove feelings of stagnation-and frustration
Types of Promotion:
• Promotion given to employees in an organisation can be classified into
three types:
• 1. Horizontal promotion: When an employee is shifted in the same category, it
is called ‘horizontal promotion’. A junior clerk promoted to senior clerk is such an
example. It is important to note that such promotion may take place when an
employee shifts within the same department, from one department to other or from
one plant to another plant.
• 2. Vertical Promotion: This is the kind of promotion when an employee is
promoted from a lower category to higher category involving increase in salary,
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
134
BBA IIIrd Yr.
status, authority and responsibility. Generally, promotion means ‘vertical
promotion’.
• 3. Dry Promotion: When promotion is made without increase in salary, it is
called ‘dry promotion’. For example, a lower level manager is promoted to senior
level manager without increase in salary or pay. Such promotion is made either there
is resource/fund crunch in the organisation or some employees hanker more for
status or authority than money
Purpose of Promotion:
1. To recognize an employee’s skill and knowledge and utilize it to improve the
organisational effectiveness.
2. To reward and motivate employees to higher productivity.
3. To develop competitive spirit and inculcate the zeal in the employees to acquire
skill, knowledge etc.
4. To promote employees satisfaction and boost their morale.
5. To build loyalty among the employees toward organisation.
6. To promote good human relations.
7. To increase sense of belongingness.
8. To retain skilled and talented people.
9. To attract trained, competent and hardworking people.
10. To impress the other employees that opportunities are available to them too if
they also perform well.
Promotion Policy:
• The following characteristics make a promotion policy as sound and good
policy:
• 1. It must provide equal opportunities for promotion across the jobs, departments,
and regions.
• 2. It must be applied uniformly to all employees irrespective of their background.
• 3. It must be fair and impartial
• 4. The basis of promotion must be clearly specified and made known to the
employees.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
135
BBA IIIrd Yr.
• 5. It must be correlated with career planning. Both quick (bunching) and delayed
promotions must be avoided as these ultimately adversely affect the organisational
effectiveness.
• 6. Appropriate authority must be entrusted with the task of making final decision.
• 7. Promotion must be made on trial basis. The progress of the employee must be
monitored. In case, the promoted employee does not make the required progress,
provision must be there in the promotion policy to revert him/her to the former post.
• 8. The policy must be good blending of promotions made from both inside and
outside the organisation.
Bases of Promotion:
• Promotion is made either on the basis of seniority or on the basis of merit or both.
Normally, management of any organization prefers merit. But the trade unions and
workers favor seniority. Seniority means the length of service put in by an employee
in the working organization Merit, on the other hand, means the qualification which
an employee possess.
• Advantages of Promotion based on Seniority
• 1. Seniority is an objective basis for promotion and so each employee is sure of
getting promotion.
• 2. It develops a sense of loyalty among the employees and the morale of the
employees will be higher.
• 3. It limits the scope for favoritism, casteism, nepotism, etc.
• 4. It avoids disputes among employees regarding promotion.
• 5. It encourages the employees to work hard and efficiently.
• 6. If seniority is accepted as the basis for promotion, management can’t abuse their
privilege of selecting the best man
• Disadvantages of Seniority based promotion
• 1. Since the employees are sure of getting promotion, it makes them lethargic in
performing their duties.
• 2. New brilliant employees will be left with no motivating factor for improving their
performance, if eligibility for better jobs depends just upon their length of service.
This leads to greater labour turnover. As a result, overall production of the concern
will be very much affected.
• 3. Talented and average workers are considered alike. Promotion is made by giving
weightage only to seniority, and efficiency of the workers is not at all considered.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
136
BBA IIIrd Yr.
• Advantages of Promotion based on Merit
• 1. Since efficiency and talents are rewarded, it encourages the employees to
increase their knowledge in maintaining a high level of productivity.
• 2. It helps in putting the most productive and competent person for specialized
jobs.
• 3. New employees are also encouraged to improve their performance as promotion
is made on the basis of competence, capability and efficiency.
• 4. It results in overall improvement of the organization.
• Disadvantages of Merit based promotion
• 1. It may result in partiality, nepotism, favoritism, casteism, etc., by the
management.
• 2. Senior employees in the organization may become unsatisfied and they may
indulge in certain activities that may lead to industrial unrest, strikes, lockouts, etc.
• 3. Merit as a basis of promotion is normally opposed by workers and their
representatives. They give more importance to the seniority factor.
• 4. Promotion of employees on the basis of merit requires proper method of
performance appraisal or merit rating. But, normally formulation of correct method
of performance appraisal may not be done.
Training
Discussed above:
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
137
BBA IIIrd Yr.
UNIT- 9
HRM Audit, nature,
scope & approaches
Challenges of HRM.
Industrial unrest, role
and importance of
Trade unions.
Meaning:
•
The term audit is normally associated with financial accounting and refers to
the official examination and verification of a company’s financial and
accounting records. HR audit is a similar concept in the field of Human
Resource Management.
•
HR audit involves examining and reviewing the organization’s existing
policies, procedures and practices regarding recruitment and selection,
orientation and placement, training and development, job analysis and design,
job evaluation, compensation, morale and motivation, employee health and
safety, social welfare, industrial relations, etc.
•
According to Eric Flamholtz, “Human Resource Audit is a systematic
assessment of the strengths, limitations, and developmental needs of its
existing human resources in the context of organizational performance.”
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
138
BBA IIIrd Yr.
•
Normally, in an organization, not all HR policies are formal and written; there
are many informal policies, not officially documented. The HR audit involves
the review of all the HR policies, procedures and practices currently adopted
by the organization, irrespective of whether they are formal or informal.
Definition:
•
Human Resource Audit is an examination and verification of personnel
related accounts and records; it increases the effectiveness of the design and
implementation of HR policies and programmes; and it is an important
approach to human resource planning.
•
“HR audit is a tool to measure an employer’s compliance with its legal
obligations in managing its workforce and chart any corrective actions that
might be needed” – Stephen F.Ruffino
•
“HR audit is an examination of the human resources policies, practices, and
systems of a firm (or division) to eliminate deficiencies and improve ways to
achieve goals” – Schwind, Das and Wagar
Human Resource Audit – Objectives
HR audit is a comprehensive analysis of HR functions, systems, policies and
procedures of an organization.
The major objectives of HR audit are as follows:
1 To conduct an independent, objective, systematic and critical examination of HR
functions of an organization.
2. To assess the general environment and performance efficiency in HR department.
3. To check for any deviations from standards and devise appropriate strategies and
corrective actions in HR related areas.
4. To check for alignment of HR functions and organization’s overall practices and
procedures.
5. To measure statutory compliances of HR activities as per law and other relevant
agencies.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
139
BBA IIIrd Yr.
6. To explore the areas for saving personnel costs and expenses.
7. To provide feedback on better areas of performance and areas that needs
improvement.
8. To identify HR areas that requires research and development inputs.
9. To recognize better performance of HR personnel through rewards.
Human Resource Audit – Nature
The nature of Human Resource Audit has been discuss in the followings:
i. Human Resource Audit, generally, gives feedback about HR functions not only to
operating mangers, but also to HR department.
(ii) Basically, audit is an overall quality control and check the HR activities in a
public organisation.
(iii) Human Resource Audit also helps clarify organisational and management goals.
(iv) It is used as a tool for review of the effectiveness of human resource practices.
(v) It also helps the management of the organisation to evaluate how well its policies
are going and identifies trouble areas that require particular attention.
K. Aswathappa has explained ten benefits resulting from Human Resource audit.
These are:
(1) Clarification of the HR department duties and responsibilities.
(2) Ensuring timely compliance with legal requirements.
(3) Creation of increased acceptance of the necessary changes in the HR department.
(4) Stimulation of uniformity of HR policies and practices.
(5) Encouragement of greater responsibility and professionalism among members of
the HR department
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
140
BBA IIIrd Yr.
(6) Identification of the contributions of the HR department to the organisation.
(7) Improvement of the professional image of the HR department.
(8) Finding solution of critical personal problems.
(9) Reduction of HR costs through more effective personnel procedures.
(10) Also review of the department information system.
Human Resource Audit – Need
According to Yoder, the need for personnel audit is largely influenced by several
conditions.
Some of these are:
a. The Number of Employees- Very small units, because of the very small
number of persons they employ, require comparatively little in the way
of a formal audit.
b. Organisational Structure- Continuing feedback is facilitated if an
organisation has a personnel department.
c. Communication and Feedback- An effective two-way communications
system often reduces the need for a formal audit.
d. Location and Dispersion- The need for a formal audit is directly related
to the number of isolated plants.
e. Status of an Industrial Relations Manager- If he participates in the top
management plans, reports, discussions and decisions, the need for a
formal audit may be less frequently felt.
f. Administrative Style- The greater the delegation of authority and
decentralisation of power, the greater the value of a regular and formal
audit.
Human Resource Management Audit – Scope
Organizational practices regarding the subject matters of HRM audit may vary.
However, a comprehensive scope of HRM audit includes all aspects of
HRM which are as follows:
1. HR strategies and policies,
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
141
BBA IIIrd Yr.
2. HRM functions,
3. HR compliance, and
4. HR climate.
1. HR Strategies and Policies:
The starting point of HRM audit should be an evaluation of HR strategies and
policies and the way these are in tune with those of the organization. For formulating
HR strategies and policies, it is essential that the objectives of HRM functions are
clearly defined. The audit may evaluate the extent to which various HR strategies and
policies have been formulated and what their qualities are.
Various HR strategies and policies may be audited by evaluating their:
i. Consistency with the organizational objectives, strategies, and policies;
ii. Consistency with the environment;
iii. Appropriateness in the light of organizational resources;
iv. Appropriateness in the light of time horizon; and
v. Workability.
2. HRM Functions:
The major thrust of HRM audit is on evaluation and review of various HRM
functions relating to acquiring and employing human resources, developing human
resources, compensation management, integration and maintenance of human
resources, and industrial relations.
The audit should measure and evaluate these functions in the following
context:
i. The type of HRM functions performed;
ii. The degree to which these functions are related to HRM objectives; and
iii. The degree to which these functions are performed effectively.
3. HR Compliance:
HR compliance refers to the adherence to various HR strategies and policies by line
managers and adherence to legal requirements.
In this context, evaluation revolves around the following:
i. The extent to which line personnel adhere to various HR policies in dealing with
personnel working under them; and
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
142
BBA IIIrd Yr.
ii. The extent to which there is compliance with the legal requirements as provided
under various legal Acts relevant for management of human resources.
4. HR Climate:
Quality of HR climate has important impact on motivation, job satisfaction, morale,
and performance of human resources.
HR climate can be evaluated by various outcomes which are as follows:
i. Degree of employee turnover,
ii. Degree of employee absenteeism,
iii. Degree of accidents,
iv. Status of grievances and disciplinary actions, and
v. Findings of attitude and morale surveys.
Human Resource Audit – Importance
In modern times, personnel and industrial relations audits have been widely
accepted as tools with which managers can control the programmes and practices of
the personnel and industrial relations department.
The importance of personnel audit has increased in recent years because
of the following reasons:
a. A change in managerial philosophy and theory, as a result of which a management
now feels that employees’ participation in the activities of an organisation, and their
identification with it, have a tremendous influence on the working of that
organisation.
b. The changing role of the government, which intervenes more often and more
extensively now, to control manpower management by an organisation with a view to
protecting the interests of the employees, providing them with better working
conditions and ensuring their economic security.
c. The increasing role played by trade unions and their strength, as a result of which
they often question managerial competence in industrial relation
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
143
BBA IIIrd Yr.
d. The rising wages, changes in the skills of technical and professional workers, and
the increasing expenditure incurred on the industrial relations department — these
are the factors which have influenced and encouraged the trend in favour of a
personnel audit.
Human Resource Audit – Process
1. Determining the Scope and Type of Audit:
Since HR is a very wide field, the company may either choose to conduct a
comprehensive review of all HR functions or it may decide to review a few specific areas
as it deems necessary. For example, a company may choose to review only the policies
and procedures related to recruitment, selection and orientation policies.
2. Determining the Audit Method:
HR audits are usually conducted by using a questionnaire that elicits information about
the relevant HR areas. The audit may also be conducted by interviewing managers and
employees of the HR department to analyze how well they have understood the
company’s policies and how efficiently these policies are being implemented. When
using a questionnaire, care should be taken to design it in such a way that it elicits all
necessary information regarding the areas to be audited.
3. Data Collection:
This step includes the actual process of collecting data about the organization and its HR
practices. Information is collected by using the questionnaire and by interviewing
relevant HR personnel about the HR procedures and policies being used in the company.
4. Setting the Standards:
To assess the efficiency of HR functions, the information collected has to be compared
with some pre-determined standards. These standards have to be pre-set and any
acceptable level of discrepancies should be specified clearly. Comparing the actual
results with the standards will give an idea about the efficiency with which the HR
functions are being performed.
5. Feedback about the Results:
After collecting information and comparing the results, the audit team summarises the
findings and provides feedback to the company’s HR personnel and senior management
in the form of an audit report.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
144
BBA IIIrd Yr.
The results of the audit should be discussed with the employees of the HR department so
that they are made aware of the present condition of the HR functions in the company.
Discussion with employees will also throw up new ideas for improving the policies and
procedures in future.
6. Develop Action Plans:
Once the results of the audit are out, this information should be used for improving the
working of the HR department. The findings of the audit should be categorised
according to order of importance: high, medium and low. The organization should
examine the areas of weaknesses as revealed by the audit and find ways to overcome
them. Conducting HR audit would serve no practical purpose if no actions are taken.
ROLE AND IMPORTANCE OF TRADE
UNION.
Meaning and Definition of Trade Union:
A trade union is an association of workers formed with the object of improving the
conditions of workers. It is formed for protecting the interests of workers. Workers
have little bargaining capacity when they are unorganized. In fact, trade union
movement began against the exploitation of workers by certain managements under
the capitalist system.
The trade union has been defined by different authors as follows:
(1) Webb:
Trade union may be defined as “a continuous association of wage earners for the
purposes of maintaining or improving the conditions of their working lives.”
(2) Lester:
“A trade union is an association of employees designed primarily to maintain or
improve the condition of employment of its members.”
(3) Indian Trade Union Act 1926:
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
145
BBA IIIrd Yr.
“Any combination whether temporary or permanent formed primarily for the
purpose of regulating the relations between the workmen and employers”.
Objectives of Trade Union:
The following are the objectives of trade union:
(1) To improve the economic lot of workers by securing them better wages.
(2) To secure for workers better working conditions.
(3) To secure bonus for the workers from the profits of the enterprise/organization.
(4) To ensure stable employment for workers and resist the schemes of management
which reduce employment opportunities.
(5) To provide legal assistance to workers in connection with disputes regarding work
and payment of wages.
(6) To protect the jobs of labour against retrenchment and layoff etc.
(7) To ensure that workers get as per rules provident fund, pension and other
benefits.
(8) To secure for the workers better safety and health welfare schemes.
(9) To secure workers participation in management.
(10) To inculcate discipline, self-respect and dignity among workers.
(11) To ensure opportunities for promotion and training.
(12) To secure organizational efficiency and high productivity.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
146
BBA IIIrd Yr.
(13) To generate a committed industrial work force for improving productivity of the
system.
Functions of Trade Unions:
(1) Collective bargaining with the management for securing better work
environment for the workers/ employees.
(2) Providing security to the workers and keeping check over the hiring and firing of
workers.
(3) Helping the management in redressal of grievances of workers at appropriate
level.
(4) If any dispute/matter remains unsettled referring the matter for arbitration.
ADVERTISEMENTS:
(5) To negotiate with management certain matters like hours of work, fringe benefits,
wages and medical facilities and other welfare schemes.
(6) To develop cooperation with employers.
(7) To arouse public opinion in favour of labour/workers.
Benefits of Trade Union:
Workers join trade union because of a number of reasons as given below:
1. A worker feels very weak when he is alone. Union provides him an opportunity to
achieve his objectives with the support of his fellow colleagues.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
147
BBA IIIrd Yr.
2. Union protects the economic interest of the workers and ensures a reasonable
wage rates and wage plans for them.
3. Union helps the workers in getting certain amenities for them in addition to higher
wages.
4. Union also provides in certain cases cash assistance at the time of sickness or some
other emergencies.
5. Union organize negotiation between workers and management and are
instruments for settlement of disputes.
6. Trade union is also beneficial to employer as it organizes the workers under one
banner and encourages them follow to peaceful means for getting their demands
accepted.
7. Trade union imparts self-confidence to the workers and they feel that they are an
important part of the organization.
8. It provides for promotion and training and also helps the workers to go to higher
positions.
9. It ensures stable employment for the workers and opposes the motive of
management to replace the workers by automatic machines.
10. Workers get an opportunity to take part in the management and oppose any
decision which adversely effects them.
Growth and Origin of Trade Union in India
The first factories Act was passed in the year 1881 by virtue of recommendation of
Bombay factory recommendation in the year 1985.The workers of the Bombay textile
industry demanded that the working hour should be reduced, weekly holidays and
compensation in case of injuries suffered by the workmen. Bombay mills hand
association is first union established for workers by N.lokhande in the year 1890.
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
148
BBA IIIrd Yr.
Several Labour movements started after the outbreak of worldwar one. The
miserable social and economic condition of the people at that time triggered the
labour movement. Formation of ILO (international labour organization) leads to
formation of trade unions .Ahmadabad labor textile association was formed under
the guidance of Mahatma Gandhi principle of nonviolence.
AITUC (All India Trade Union Congress)
All India trade union congress is formed in the year 1920 for the purpose of selecting
the delegates for ILO, first meeting of AITUC was held in Bombay under the
president ship of Lala Lajpat Rai in the year 1920 AIRF (All India Railways man
Federation) was formed in 1922 , all the union consisting and compromising of
railway workmen were made part of it and affiliated to it. AITUC witnessed the split
because some members were in support of the war and other were not in support of
the war, later group is separated as an organization under the leadership of congress
leaders resulted in the formation of Indian National Trade Union Congress (INTUC)
.Socialists also got themselves separated from the AITUC which resulted in the
formation of Hind Mazdoor sabha in the year 1948. Therefore the splits and
detachment can be observed resulting in creation of separate trade unions.[21]
There were three kinds of unions on the basis of structure it consists of1. Industrial union
2. Craft union
3. General union
Crafts union consists and comprises of earning of wage from the single occupation, it
includes all the workmen working for single craft even of different industries ,An
Industrial union is formed by virtue of actions of industry not because of similar
crafts or works, General union consists the workmen of various crafts and industries.
In India formation of trade union takes place mainly because of industrial decisions
reason of which can be reduced importance of craftsmen after industrialization and
availability of large unskilled labour.
The four major organization serving as union for workmen are INTUC,
AITUC ,HMS ,UTUC
INTUC
The formation is lead by congress leaders, all the unions affiliated to INTUC should
go for arbitration for the dispute once all other remedies are exhausted.
HMS (HIND MAZDOOR SABHA)
It was formed by those who neither became part of AITUC, INTUC in Calcutta in the
year 1951 following the socialist principle.[22]
UTUC (United Trade Union Congress)
It was formed in the year 1949 and mainly operated in west Bengal and Kerala. Apart
from these four trade unions there are other trade unions working in various
industries not affiliated to any central organization. Indian trade unions have now
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
149
BBA IIIrd Yr.
recognized by law and given legal status and becomes the permanent attribute
industrial society influencing policy making and decision of employers by virtue of
negotiation over interests between workman and employer.
Structure of Unions
The term ˜structure of unions alludes to the premise on which unions are structured
or organized (i.e. whether they are arranged on the basis of regional or craft or
industrial) and to the model whereby the plant unions are linked to regional level or
national level federations or unions. These two aspects of the unions will be
examined separately.[23]
Trade unions are classified into three categories:
•
•
•
Craft union
Industrial unions
General unions
A craft union can be defined as an association of wage earners engaged in a single
occupation. It may cover all workers engaged in a particular craft irrespective of the
industries in which they are employed. Thus, electrician or mechanics though
working in different industries may form a union of their own.
For example, The International Wood Carvers Association and the Indian Pilots
Guild. Industrial Unions are organized on the basis of industry, for example, if the
workers of a cotton textile factory decide to form a union of workers of different
crafts, the union will be called an industrial union. General unions are not so popular
in India and it covers workers employed in different industries and crafts. In India,
even though trade unions are largely organized by industry, craft unions are also
emerging here and there. The predominance of industrial unions can be partly due to
the conditions not favoring the growth of craft and general unions and partly due to
environmental support to industrial unions.
The specific reasons may be listed below:
•
•
With the advent of industrialization in India, the importance of Indian
craftsmen reduced, thus bypassing the merchant craftsmen stage of
capitalism, technological development went straight from agriculture to
factory stage. As a result, craftsmen reduced significantly. The reduced
importance of craftsmen coupled with large population of unskilled workers
led to the growth of industrial unions.[24]
Another factor behind growth of industrial unions can be higher wages of
skilled workers. During the early days of union growth, the skilled workers
used to enjoy higher rates of wages due to their relative scarcity. They,
therefore, took no interested in unionism. This lack of interest on their part
plus the predominance of unskilled workers favored union growth on
industrial rather than craft lines.[25]
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
150
BBA IIIrd Yr.
•
Industrial unions also flourished because of the influence of outsiders. As
trade union was a movement started by outsiders, they were interested in
labor class as a whole and not just a section of it. Industrial unions bring more
workers within its fold than craft unions, as a result outsiders gave more
attention to the formation of industrial unions.[26]
(8) Problem faced by Trade Unions in India
The condition of trade unions in India is not very sound and this is mainly because of
the fact that trade unions suffer from many problems. A brief account of them is
given below:
(A) Uneven Growth: Trade union activities are concentrated in large scale
industries and that too in regard of manual labor only and mainly in bigger industrial
centre, there are hardly any trade union activities in small scale enterprises, domestic
and agricultural labour. The degree of unionism varies a lot from industry to
industry, thus touching only a portion of the working class in India.[28]
(B) Low Membership: Even though, the number of trade unions has increased
considerably in India but this has been followed by the declining membership per
union. The average number of members per union was about 3,500 in 1927-28. It
reduced to about 1,400 in 1946-47 and again to as low as a figure of 675 in 1985-86
and 659 in 2000-01. This indicates the emergence of small scale trade unions.[29]
(C) Multiplicity of Unions: Another problem faced by the growth of trade unions
is that of multiplicity of unions. There may exist many trade unions in the same
establishment. The existence of large number of trade unions can be attributed to the
fact that The Trade Unions Act, 1926 permits any association of seven workers to be
registered as a union, and confers upon it certain rights. Many a time, it is contended
that multiplicity of unions is because of outside leaders, but more pertinent point is
that they are able to work because law permits and gives sanctity to the small
unions.[30]
(D) Inter Union Rivalry: Unions try to play down each other in a bid to gain
greater influence among workers. In the process they do more harm than good to the
cause of unionism as a whole. Employers are given an opportunity to play unions
against each other. They can refuse to bargain on the contention that there is not true
representative union. Besides this, the workers own solidarity is lost. Employers are
able to take advantage of in fighting between workers groups.[31]
(E) Weak Financial Position: The financial position is very low as their average
yearly income is very low and inadequate. The subscription rates are very low due to
multiplicity of unions, unions interested in increasing their membership keep the
subscription rates very low resulting inadequacy of funds with the unions. Another
important reason for the weak financial position of unions is that large amounts of
subscription dues remain unpaid by the workers. The name of constant defaulters
continuously appears on the registers on most of the unions. They are neither
expelled nor cease to be members ipso facto according to the union rules.[32]
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ
151
BBA IIIrd Yr.
(F) Lack of Public Support: The trade unions frequently resort to strike and
protest in order to make their demands meet. As a result, inconvenience is caused to
public. This is the public support or sympathy is almost negligible.[33]
PERSONNEL MANAGEMENT (HR)
ALL TOPICS GIVEN IN SYLLABUS ARE FULLY DISCUSSED IN THIS NOTES
BY -VAIBHAV RAJ