Human Resource Management

Human Resource Management Authored By: MBA 2021-2022 Accounting And Information Systems 1|HRM University Of Rajshahi Human Resource Management “Dedicated to Our Beloved Parents and Honorable Teachers” Compiled By MBA 2021-2022 Batch Accounting and Information Systems University of Rajshahi Supervised By Prof. Dr. Main Uddin Accounting and Information Systems University of Rajshahi Edited By Nazmul Hasan Kowshik Paul Jannatul Ferdousy Supty 2|HRM Group Name Group-1 SI. No 01 02 03 04 05 06 07 08 09 10 11 Name Kowshik Paul (Group Leader) Belayet Hossain Abdur Rahim Rakibul Islam M shahed Zaman Tanvir Alam Noor Mohammad Md Emran Hossen Rifat Hossain Mithu Chowdhury Tanjir Hossen ID 1810633101 1810833132 1810933106 1811133143 1810133164 1811033126 1810233214 1810533184 1811033152 1810833225 1810333203 Group-2 Sl. No 01 02 03 04 05 06 07 08 09 10 11 Name Noman Hossain (Group Leader) Md. Rojyb Omar Asif Md. Mohibulla Bhuiyan Mahmudul Hasan Md. Mizanur Rahman Md Simul Reja Md. Toufiq Ul Haque Tuhin Md. Thohidul Islam Md. Rokib Uddin Md. Akramul Hossain Mulla Md. Hassan ID 1810633175 1810533127 1810233167 1810633130 1810733176 1810433158 1711033110 1810933196 1810133124 1811133156 1810133213 Group-3 Sl. No 01 02 03 04 05 06 07 08 09 10 Name Nasrin Jahan Asha Asma khatun. Umme Salma Setu. Nusrat Jahan Ema. Rabeya Sultana Kumari Supriya Adhikary. Bristy Roy. Tamanna Khatun. Zannatul Ferdous. Farhana Afrose Munmun. ID 1812033102 1812033114 1812433118 1812033134 1812033163 1812433166 1812033181 1712433131 1712433162 1712033209 Group-4 Sl. No 3|HRM Name ID 1 2 3 4 5 6 7 8 9 10 Jannatul Ferdousy Supty (Leader) Rupa Mst. Rejeona Khanom Tanzima Nasrin Rukaiya Israt Jahan sarna Afren Akter Homayra Nushrat jahan kheya Afsara Maliha Tanjid Laskar Psyche 1812433211 1812533183 1812033191 1812033218 1812033224 1812233154 1812033195 1812333165 1812233104 1812133142 Group-5 Sl. No 1 2 3 4 5 6 7 8 9 10 11 12 Name Md Bazlu Rahman (Group Leader) Hasan Ahmmed Al Eyamin Khan Antar Md Hasibul Hasan Md.Abdul Awal Md Parvez Zaman Samir Sheikh Mohammad Abeer Hasan Md Sabbir Sheikh Ahbab Ahmed Sifat Ratan Chakma Kader Gazi ID 1810433206 1810633205 1810433116 1810533202 1810433145 1810933162 1810633220 1810533110 1810733210 1810933212 1810433221 1810233200 Group-6 Sl. No 01 02 03 04 05 06 07 08 09 10 11 Name Md. Shamim Hossain (L) Nazmul Hasan Redoan Hossain Abdulla All Hasan Kazi Mahin Mia Mossayeb Hossain Md. Sharif Ullah Rabbi Md. Wakil Shakil Ahmed Mosayeab Hossain Md. Saidur Rahman ID 1810633113 1811033109 1811033182 1810633172 1810133179 1711133111 1811133186 1810133137 1811133171 1711133111 1810633160 Group-7 Sl. No 01 02 03 04 05 06 4|HRM Name Munni Akter (Team Leader) Jannatul Moua Pegion Ayesha Yasmin Esha Monalisa Ayesha Siddiqa Sadia Kakoli Nondi ID 1812333115 1812133103 1812433121 1812333198 1812133192 1812533208 07 08 09 10 11 Soma Biswas Somaia Akter Anwara Khatun Shamsad Laisa Afrin Moutusi Basak Trishna 1812133219 1812533119 1812533177 1812233194 1812433199 Group-8 Sl. No 1 2 3 4 5 6 7 8 9 10 Name ID Md. Abdullah Al-Rafi Rakibul Islam Rahad Shatirtho Sarker Kabbya Das Papon (L) Md. Parvez Hossain Parvez Hossain Prince Mahmud Zibryl Saimum Nur Salam Md. Rashed Rahman 1811033139 1611133207 1810833207 1811133204 1810333111 1811133129 1810733193 1811033201 1810733122 1810333185 Group-9 Sl. No 01 02 03 04 05 06 07 08 09 10 11 12 Name Pritul Saha © Md. Mobasher Ali Md. Sagor Ali Md. Sojib Ali Md.Hredoy Sheikh Md. Hasan Ali Md. Sozib Hossain Md. Munsur Hossen Md. Selim Mia Md. Alamin Fakir Shohag Mia Md. Arman Shaikh ID 1810433188 1810733148 1810133107 1811133217 1810733105 1810833159 1810833146 1810633120 1811033215 1810233151 1810633190 1810933178 Group-10 Sl. No 01 02 03 04 05 06 07 08 09 10 5|HRM Name DIPONCOR KARMOKAR TARUP SARKAR MD. SAGOUR HOSSAIN ISMAIL HOSSAIN MD. NAYEEM HASAN MD. SAZZAD HOSSAINKHUKON MD. MIRAN SARKAR MD. SHAHIN ISLAM MD. MEHEDI HASSAN IMAMUL HOSSEN ID 1810933123 1810233125 1810833189 1810433131 1810433173 1811033168 1810833117 1810533140 1810333128 1810533153 11 MD. ROXY HOSSAIN 1710533105 Group-11 Sl. No 01 02 03 04 05 06 07 08 09 10 11 12 6|HRM Name Bappi Hosen (Chief) Md. Emran Hasan Emon Md. Abdullah Abdur Rahman Molla Sajib Miah Mahin Rubel Abul Kasem Mohammad Shamim Md. Mehedi Hasan Sajib Oli Ahmed Md. Ginnat Ali Md. Nasir ID 1810533169 1810733161 1810633157 1810933149 1810133150 1810933136 1810333155 1810233108 1810733135 1810233138 1810633147 1810333170 Brief Contents SL No. Chapter 1 Contents Introduction to Human Resource Management Page 13-29 Introduction Historical Development of HRM Definition of HRM Characteristics of HRM Importance of HRM Phases of HRM Importance of HR managers in organizations Three distinct functions of HRM-Approaches of international HRM Difference Between HRM and personnel Management Importance of external and internal factors of HRM Challenges of HRM Competitive advantage of HRM in modern times HRM Case-Study 1 Solution for HRM Case Study 1 HRM Case Study 2 Solution for HRM Case Study 2 Chapter 2 Environment for Human Resource Management 30-43 Introduction Meaning of Environment Environment of HRM Factors of environmental analysis of HR planning Impact of internal environmental factors on HRM with the reference to Bangladesh Impact of external environmental factors on HRM with the reference to Bangladesh Environmental barriers in Bangladesh Overcoming environmental barriers Meaning of Global Environment Impact of globalization on HRM How does technology affect HR functions Role of Human Resource in Environment Scanning Case Study Chapter 03 Human Resource Planning Definition of Human Recourse Planning Benefits of Human Resources Planning. Human Resource Planning Method-. Components of Human Resource Planning. Pattern of Human Recourse Planning in Bangladeshi Organizations. Human Recourses Planning Model in Bangladesh. Limitations of Human Resource Planning in Bangladesh. Improvement of Human Resource Planning System in Bangladesh. 7|HRM 43-60 Steps or Stages of Human Resource Planning. Integrating Approach to Human Resource PlanningQuestions. Chapter 04 Job Analysis 61-72 Meaning of Job Analysis. Elements of Job Analysis. Features of Job Analysis. Purpose of Job Analysis. Information Collection for Job Analysis. Job Description. Job Specification. Uses of Job Analysis Information in Bangladesh. Steps in Job Analysis. Preliminary Considerations. Requirement of Job Analysis in Bangladesh. Reviewing and Revision Job Facts. Designing a Custom-Made Job Analysis Questionnaire. Guidelines for Designing a Questionnaire. Guidelines for Conducting a Job Analysis Interview. Methods of Job Analysis. Benefit of Job Analysis Questions. Chapter 05 Human Resource Planning 73-86 Introduction. Definition of job Description. Features of Job Description. Aspects of Job. Information used in Describing Jobs. Ways of Describing Job Facts. Guidelines for Job Description. Meaning of Job Specification. Qualities of an Employee for Job Specification in Bangladesh. Job Description and Job Specification Practices. Clinical Research. Radio Jobs. Television Jobs Questions. Chapter 06 Recruitment of Human Resources Definition of Recruitment. Sources of Recruitment. Table of sources details. Advantages of Internal sources. Disadvantages of Internal Sources. Advantages of External sources. Disadvantages of External Sources. Benefits of External Recruitment. Causes of recruiting Experienced managers. Steps in Recruitment. The process or model of recruitment Limitations of recruitment in Bangladesh. Steps to be followed for getting a job in Bangladesh. Related Previous questions. 8|HRM 87-98 Chapter 07 Selection of Human Resources 99-110 Definition of Selection. Deference between Recruitment and Selection. Process of Selection. Components of Selection. Definitions of Test. Types of Test. BPSC Selection Process. Definition of Interview. Types of interviews. Suggestions to make the effective interview. Guidelines to be followed for becoming an effective Interview. Advice to interviewers. Interview question from the employers. Related Previous questions Chapter 08 Promotion, Demotion and Transfer 111-124 Introduction Principles of Promotion Objective of Promotion Merits of Job Promotion in Organization Consideration of promotion in organization Types of Promotion Difference Between Internal and External Promotion Definition of Demotion Demotion Policy Causes of Demotion Effects of Demotion Employee Transfer Reasons for Employee Transfer Types of Employee Transfers Difference Between Transfer and Promotion Dismissal or Discharge Reasons of Discharge Relations between Promotion and Morale Previous Year Questions Chapter 9 Orientation and Socialization Preface of orientation Steps of orientation Contents of orientation of an organization The objectives of orientation in an organization The advantages of an orientation program in an organization Factors of successful orientation program in Bangladesh Supervisors’ role in the orientation of new employees Socialization Process of Socialization Assumptions of employee socialization Objectives of Socialization Types of Socialization Questions 9|HRM 125-134 Chapter 10 Training and Development 135-147 Introduction Definition Distinction Between Training and Development Objectives of Training Benefits of Training and Development Important Training and development Institutes in Bangladesh Model of Training- Training Methods Training aids and equipment in Bangladesh Performance evaluation of training and development institutes in Bangladesh Inputs in Training & Development Case study Previous Year Questions. Chapter 11 Job Evaluation 148-158 Introduction to Job Evaluation Some definitions of Job Evaluation Objectives of Job Evaluation Job Evaluation Benefits Principles of job evaluation Difference between Job analysis and job evaluation Steps of job evaluation Reasons for Job Evaluation Purposes Limitations or disadvantages of Job Evaluation Methods of Job Evaluation CASE STUDY ANALYSIS Previous Questions. Chapter 10 Career planning and Development Definition of career Definition of career planning Benefit of career planning Guidelines for career planning Career planning process Jobs and career in hrm Definition of career development Career development in individual perspectives Career development in an organizational perspective Difference between individual and organizational career Benefits of organizational career Purposes of career development Functions of individuals career development Organizational career development Challenges in organizational career development Corporate career development initiative Factors influencing career development Managing career Problems of career planning & development Benefits of career planning & development Career development stages Guidelines for effective career development 10 | H R M 159-173 Previous questions Chapter 13 Performance Appraisal 174-196 Chapter Prelude Learning Objectives Introduction Definition of Performance Appraisal Objectives of Performance Appraisal Benefits of Performance Appraisal Performance Appraisal Process Types of performance appraisals Common problems in performance appraisal Responsible Person for Conducting Performance Appraisals Results Of Using Computer Monitoring Performance Elevating Performance Appraisal: A Symphony of Improvement Tips for a Successful Performance Appraisal in Bangladesh Methods of Performance Appraisal Performance appraisal of Grameen Phone (BD) Appraisal Process Timeline Who Are Appraised Performance Appraisal Unveiled: A Glimpse into Grameenphone’s Evaluation Landscape Performance criteria and their measurement Performance Measurement Performance Rating Appendix – 1 Appendix – 2 Previous Questions Chapter 14 Compensation 197-211 Compensation Philosophy and Strategy Job Analysis and Evaluation Compensation as per IAS and IFRS Compensation Structures Importance of sound wage structure in Bangladesh Legal and Regulatory Compliance Performance Management and Compensation Problems of compensation Previous Question and Solutions Chapter 15 Human Resource Benefits Introduction: International Perspectives on Human Resource Management Definition of Benefits Types of Benefits Skill-Based Pay and Job-Based Pay Forms of Benefits and Services in Bangladesh Objectives of Benefits for Employees and Managers in Bangladesh Future Benefit Plans for Employees in Bangladesh Examples of Fringe Benefits in Bangladesh Principles for Employee Benefits Administration Principles of Fringe Benefits in Bangladesh 11 | H R M 212-222 Employee Engagement and Recognition Programs Family-Centric Benefits and Work-Life Chapter 16 Managing Health, Safety & Stress 223-234 Importance of industrial health Symptoms of inadequate industrial health Provisions regarding the health of industrial workers in Bangladesh Provisions regarding the safety of the workers in Bangladesh Objectives of safety and health program Welfare of industrial workers in Bangladesh Problems of safety and health of industrial employees Means to overcome the safety and healthy problems of industrial workers in Bangladesh Definition of Stress Level of Stress Causes of Stress Consequences of Stress Stress reduction techniques Level of Stress Causes of Stress Consequences of Stress Stress reduction techniques Maintaining healthy work environment Steps in developing a safety and health program Approaches to stress management Case study Chapter 17 Human Resource Information Systems Introduction: Benefits of HRIS Key HRIS Functions Features of Human Resource Information Systems Components of HRIS(Human Resource Information Systems) Components of HRIS(Human Resource Information Systems) Why do HRIS fail? Human Resource Information Systems Models Steps in HRIS Implementation Factors to Consider When Selecting an HRIS Future of HRIS Technology Challenges of HRIS Previous Questions 12 | H R M 235-247 CHAPTER 1 Introduction to Human Resource Management Introduction Men, materials, machines, and money are considered the main factors of production. Out of all these factors, men are considered an important factor. It is very difficult to handle the other factors of production without the efficient use of human resources. Several terms have been used by various management thinkers to represent human resources. These include ‘personnel’, ‘people at work’, ‘manpower’, ‘staff’, and ’employees. Whatever may be the term used, the human resource of any organization consists of all individuals engaged in any of the organizational activities at all levels. The importance of human factors can be judged from the point that some people consider management and personnel/human resource management as the same thing. Lawrence A. Appley observed that “Management and personnel administration are the same. They should never be separated. Management is personnel administration”. Of all the tasks of management, managing the human component is the central and most important task, because all else depends on how well it is done. With the increase in number of employees in an organization, greater emphasis is being placed on personnel management and also on the adoption of standardized procedures and compensation plans. The personnel department helps management in using and developing appropriate manpower to achieve organizational goals. Human resource management is responsible for how people are treated in organizations. It is responsible for bringing people into the organization, helping them perform their work, compensating them for their labor, and solving problems that arise. Human Resource Management (HRM) is a critical function within organizations that focuses on managing the most valuable asset: the people who work within the organization. It is a multidisciplinary field that encompasses various aspects of managing human capital, including recruitment, selection, training, performance management, compensation, and employee relations. The role of HRM has evolved significantly over the years, transforming from a traditional administrative function to a strategic partner in driving organizational success. HRM is fundamental to the success of any organization, irrespective of its size or industry. It plays a crucial role in not only attracting and retaining top talent but also in ensuring the development and well-being of employees. The dynamics of the global business landscape, the rise of technology, changing workforce demographics, and evolving laws and regulations have all contributed to the evolving nature of HRM. In recent years, HRM has become more strategic and intertwined with the overall business strategy. HR professionals are increasingly involved in decision-making processes that influence the direction of the organization. They contribute to strategic planning, aligning HR initiatives with business goals, and forecasting future workforce needs to ensure the organization has the right talent in place to meet its objectives. The emergence of technological advancements has also significantly impacted HRM. Automation, data analytics, and the use of HR software have streamlined various HR processes, making them more efficient and data-driven. This allows HR professionals to make informed decisions based on real-time data analysis, leading to better workforce management and strategic planning. Historical Development of HRM: 13 | H R M The historical development of Human Resource Management (HRM) spans centuries and has evolved significantly over time. Here's a concise overview of its key stages: Pre-Industrial Revolution (18th century and earlier): Before the industrial era, labor was primarily agricultural, and there wasn't a formal HR function. Work was largely based on apprenticeships, family businesses, and guilds. Industrial Revolution (18th-19th century): With the onset of industrialization, factories emerged, and the workforce expanded. This period saw the formation of personnel departments, mainly dealing with administrative tasks like payroll, hiring, and compliance. Early 20th Century: The early 1900s witnessed a focus on labor unions, collective bargaining, and employment laws. Scientific Management theories by Frederick Taylor emerged, emphasizing efficiency and productivity, influencing work practices and management approaches. Interwar Period (1918-1939): The rise of human relations movements, influenced by researchers like Elton Mayo, shifted the focus from mere efficiency to the psychological and social aspects of work. The Hawthorne Studies highlighted the importance of human factors in productivity. Post-World War II (1940s-1950s): The 1940s saw the emergence of personnel management as a recognized discipline. Companies increasingly focused on employee welfare, benefits, and labor relations. The emphasis was on formalizing HR processes and complying with labor laws. 1960s-1970s: The civil rights movement and anti-discrimination laws in the United States prompted the development of equal employment opportunity (EEO) policies, leading to diversity initiatives in the workplace. This period also marked the rise of training and development programs. 1980s-1990s: Strategic Human Resource Management gained traction. HRM became more integrated with business strategies and started contributing to organizational goals. Technology began influencing HR processes with the advent of HRIS (Human Resource Information Systems). 21st Century: The early 2000s saw a shift towards talent management, focusing on acquiring, developing, and retaining top talent. HR evolved to become a strategic partner in organizations, emphasizing workforce planning, analytics, and employee engagement. Current Trends (up to 2023): HRM continued to evolve with the digital transformation, the rise of remote work, emphasis on diversity and inclusion, increased focus on employee well-being, and the integration of AI and data analytics for HR functions. Throughout its history, HRM has transformed from a primarily administrative function to a strategic partner within organizations, recognizing the value of human capital and its impact on business success. The field continually adapts to social, technological, and economic changes to meet the evolving needs of the workforce and the organizations they serve. Definition of Human Resource Management: 14 | H R M Human Resource Management (HRM) is the strategic and comprehensive approach to managing an organization's most valuable asset: its people. It encompasses the functions and activities designed to maximize employee performance in service of an organization's objectives. HRM involves a wide range of responsibilities, including but not limited to: Recruitment and selection: Attracting, hiring, and onboarding suitable candidates. Training and development: Providing resources and opportunities for employees to enhance their skills and knowledge. Performance management: Evaluating and managing employee performance to ensure alignment with organizational goals. Compensation and benefits: Designing and administering fair and competitive compensation and benefit packages. Employee relations: Creating and maintaining a positive and productive work environment, handling grievances, and fostering good relationships between employees and the organization. Legal compliance: Ensuring adherence to labor laws and regulations in all employmentrelated practices. Strategic planning: Aligning HR practices with the overall goals and objectives of the organization Human Resource management has been defined as a process of acquisition, development, motivation, maintenance & and utilization of manpower in an organization to achieve predetermined goals. Human Resource Management is related to a few aspects of Human Resources working in the organization. Human Resource Management has been defined in many ways by different authors. These definitions are given below: 1. Ricky W. Griffin: Human Resource Management is the set of organizational activities directed at attracting, developing, and maintaining an effective workforce. 2. Gray Dessler: The policies and practices involved in carrying out the people or resource aspects of a management position including recruiting, screening, training, rewarding, and appraising. 3. Milkovich & Boudreau: Human Resource Management is a series of decisions that affect the relationship between employees and employers; it affects many constituencies and is intended to influence the effectiveness of employees and employers. 4. Dale Yoder: Human resource management is the provision of leadership and direction of people in their working or employment relationship. The field of HRM has evolved to become more strategic and people-oriented, aiming not only to manage administrative tasks but also to contribute significantly to an organization's success by focusing on the development and utilization of human capital. Characteristics of HRM Human Resource Management (HRM) encompasses a wide range of activities related to managing an organization's workforce. Some of the key characteristics of HRM include: 1. People-centric: HRM is focused on managing and developing an organization's most valuable asset – its employees. 15 | H R M 2. Strategic Function: HRM plays a strategic role in aligning human capital with organizational goals and objectives. 3. Continuous Process: It involves ongoing activities such as recruitment, training, performance appraisal, and employee development. 4. Legal Compliance: HRM must adhere to labor laws and regulations, ensuring fair treatment and compliance with employment-related laws. 5. Employee Welfare: HRM addresses employee well-being, safety, and job satisfaction, promoting a positive work environment. 6. Recruitment and Selection: HRM is responsible for attracting, hiring, and retaining qualified individuals to fill job positions. 7. Training and Development: It focuses on improving employee skills and knowledge through training and development programs. 8. Performance Management: HRM assesses and manages employee performance through methods like appraisals and feedback. 9. Compensation and Benefits: HRM designs competitive and fair compensation packages, including salaries, benefits, and incentives. 10. Employee Relations: It manages employee-employer relationships, addressing grievances and promoting a harmonious workplace. 11. Diversity and Inclusion: HRM fosters diversity and inclusion within the workforce, promoting equal opportunities for all. 12. Talent Management: It identifies and nurtures high-potential employees for leadership roles. 13. Technology Integration: HRM increasingly relies on HR software and technology to streamline processes and data management. 14. Adaptability: HRM must evolve to meet changing workforce and organizational needs. 15. Data-driven: Utilizes data and analytics to make informed decisions about workforce planning and development. These characteristics collectively contribute to the effective management of an organization's human resources, helping it achieve its g Importance of Human resource management Human resource management (HRM) is crucial for organizations for several reasons: Talent Acquisition: HRM is responsible for recruiting, selecting, and hiring the right individuals for the organization. It ensures that the workforce is skilled, diverse, and aligned with the company's goals. Employee Development: HRM oversees training and development programs. Investing in employees' skills and knowledge enhances their performance and job satisfaction, ultimately benefiting the organization. Performance Management: HRM designs and implements performance appraisal systems, providing feedback and setting goals for employees, thus improving productivity and overall performance. 16 | H R M Employee Engagement and Retention: Maintaining a positive work environment, fostering a healthy culture, and addressing employee needs and concerns are essential functions of HRM. Engaged employees are more likely to stay with the company, reducing turnover. Legal Compliance: HRM ensures that the organization adheres to labor laws and regulations, minimizing legal risks associated with employment-related issues. Conflict Resolution: HRM deals with conflicts and disputes within the workplace, mediating between employees and ensuring a harmonious work environment. Strategic Planning: HRM contributes to the company's strategic planning by forecasting workforce needs, succession planning, and aligning HR practices with organizational objectives. Cost Management: Efficient HR practices help in managing costs related to recruitment, training, turnover, and other HR activities. Organizational Culture: HRM plays a significant role in shaping and fostering the company's culture, which impacts overall performance and employee satisfaction. Adaptability and Change Management: HRM assists in managing change within the organization by facilitating the process of adaptation and promoting a culture that is open to innovation and improvement. Ultimately, effective human resource management contributes significantly to an organization's success by ensuring that the right people with the right skills are in the right positions, and by fostering an environment that allows both employees and the organization to grow and thrive. Phases of Human Resource Management Human Resource Management (HRM) involves several phases or stages that are integral to the effective management of an organization's workforce. These phases generally encompass various HR activities and functions. Here are the key phases of HRM: Planning Phase: HR Planning: This phase involves forecasting future workforce needs based on an organization's strategic goals. It includes analyzing the current workforce, identifying gaps, and planning for recruitment, training, and succession. Acquisition Phase: Recruitment and Selection: In this phase, HR conducts activities to attract, identify, and hire the right candidates for job positions. This involves job analysis, creating job descriptions, advertising roles, screening applications, conducting interviews, and selecting suitable candidates. Development Phase: Training and Development: This phase focuses on improving employee skills, knowledge, and abilities through various training programs, workshops, mentoring, and on-the-job learning opportunities. Retention Phase: Performance Management: This stage involves setting performance expectations, monitoring employee performance, providing feedback, and evaluating their contributions to the organization. It can also include performance appraisals and goal setting. 17 | H R M Compensation and Benefits: Managing employee compensation, rewards, benefits, and incentives to ensure employees feel valued and fairly compensated for their work. Maintenance Phase: Employee Relations: Handling and managing relationships between employees and the organization. This involves conflict resolution, addressing grievances, and maintaining a positive work environment. Separation Phase: Termination and Transition: Managing employee exits, which can include voluntary resignations, retirements, or involuntary terminations. This phase involves conducting exit interviews, handling legal formalities, and ensuring a smooth transition. Evaluation Phase: HR Metrics and Analytics: Evaluating the effectiveness of HR processes and strategies using key performance indicators (KPIs) and data analytics. This phase aims to assess the impact of HR practices on the organization's performance and make data-driven decisions for improvement. These phases are interconnected and ongoing, with HR professionals continuously involved in various activities throughout the employment lifecycle to ensure effective management of the organization's human capital. Importance of HR managers in organizations Human Resource Management (HRM) is critically important in organizations for several reasons: Strategy management: This is an important aspect of any organization and plays a vital role in human resource management. HR managers manage strategies to ensure the organization reaches its business goals, as well as contribute significantly to the corporate decision-making process, which includes assessments for current employees and predictions for future ones based on business demands. Benefits analysis: HR managers work towards reducing costs, such as with recruitment and retention. HR professionals are trained to conduct efficient negotiations with potential and existing employees, as well as being well-versed with employee benefits that are likely to attract quality candidates and retain the existing workforce. Training and development: Since HR managers contribute significantly to the training and development of programmers, they also play a pivotal role in strengthening employeremployee relationships. This contributes to the growth of employees within the company, hence enhancing employee satisfaction and productivity. Interactivity among employees: HR managers are responsible for conducting activities, events, and celebrations in the organization which gives way to team-building opportunities. Moreover, it enhances interactivity within employees and instills a sense of trust and respect among peers. Conflict management: The department to go to when any kind of professional conflict arises between employees is HR. They ensure that issues and conflicts are resolved effectively, approaching the problem with an unbiased attitude and encouraging effective communication to reach a solution. In addition, they help employees understand various ways of developing 18 | H R M effective work relationships and the importance of not letting personal judgment affect their behavior. Establishing a healthy work culture: A healthy work culture is pivotal in bringing out the best in employees. HR managers contribute significantly to setting up a healthy and friendly work culture, which further translates into better productivity among employees. Compliance: HR professionals work towards making the organization compliant with employment laws, as well as maintaining records of hiring processes and applicants’ logs. In summary, HRM is essential for creating and maintaining a motivated, skilled, and wellmanaged workforce, which is crucial for an organization's overall success and competitiveness in today's dynamic business environment. Three distinct functions of HRM Human Resource Management (HRM) serves various functions within an organization, with three distinct functions being: 1. Recruitment and Selection: • Recruitment involves identifying and attracting potential candidates to fill job vacancies in the organization. • Selection involves assessing and choosing the most suitable candidates for specific roles. • HRM designs recruitment strategies, conducts interviews, and administers assessments to ensure that the organization has a qualified and diverse workforce. 2. Training and Development: • HRM is responsible for identifying the training and development needs of employees and providing the necessary programs and resources. • Training enhances employees' skills and knowledge, making them more effective in their roles. • Development focuses on preparing employees for future responsibilities and leadership roles within the organization, contributing to long-term growth and success. 3. Employee Relations and Engagement: • HRM fosters positive employee relations by mediating and resolving conflicts, promoting open communication, and ensuring fair treatment. • Employee engagement initiatives are designed to boost morale, job satisfaction, and overall well-being, leading to higher productivity and lower turnover. • HRM also manages compensation, benefits, and performance evaluations to recognize and reward employees for their contributions. These three functions of HRM are essential for attracting, developing, and retaining a talented workforce while maintaining a harmonious and productive work environment within the organization. Describe the approaches of international HRM International Human Resource Management (IHRM) is the process of managing human resources in a global context. It involves addressing the unique challenges and opportunities 19 | H R M that arise when an organization operates across national boundaries. There are several approaches to IHRM, each with its focus and strategies. These approaches help organizations effectively manage their global workforce. The main approaches to international HRM are: 1. Ethnocentric Approach: - This approach is often used by organizations that primarily hire and promote employees from the parent country (the home country). - Key positions and decision-making roles are typically reserved for expatriates from the parent country. - This approach is suitable for maintaining centralized control and ensuring that the organization's values and practices are consistent across all locations. - However, it can lead to cultural insensitivity and a lack of adaptation to local conditions. 2. Polycentric Approach: - In the polycentric approach, organizations recruit and promote host-country nationals to manage operations in their respective countries. - The parent company plays a limited role in the management of foreign subsidiaries, allowing for local autonomy. - This approach can enhance local responsiveness and adaptability but may lead to a lack of integration and coordination across the organization. 3. Geocentric Approach: - The geocentric approach takes a global perspective and focuses on selecting the best individuals for key positions, regardless of their nationality. - It aims to create a globally integrated workforce, with a mix of expatriates and hostcountry nationals at various levels of the organization. - This approach can be highly effective in terms of utilizing the most talented individuals but can be challenging to implement due to immigration and work permit regulations and the need for cross-cultural training. 4. Regiocentric Approach: - The egocentric approach considers specific geographic regions as distinct units for HR management. - Instead of focusing solely on global or local approaches, organizations adopt regionspecific HR strategies. - This approach allows for a balance between standardization and localization by grouping similar countries or regions. 5. Global Integration Approach: - This approach emphasizes the need for global consistency and standardization in HR policies and practices. - It seeks to create a uniform corporate culture and ensure that HR practices are the same across all subsidiaries. - This approach is suitable for organizations aiming to project a unified image and achieve economies of scale. 6. Local Differentiation Approach: - In contrast to the global integration approach, the local differentiation approach recognizes the significance of local variations in HR practices. - It allows subsidiaries to adapt HR policies to the local environment, taking into account cultural, legal, and economic differences. 7. Transnational Approach: - The transnational approach combines elements of both global integration and local 20 | H R M differentiation. - It seeks to balance the need for global consistency with the necessity of local responsiveness. - This approach is often considered the most complex and challenging to implement, requiring a fine balance between central control and local autonomy. The choice of the IHRM approach depends on the organization's goals, the nature of its global operations, and the level of coordination and integration required to be successful in the international marketplace. Many organizations adopt a hybrid approach that combines elements of several of these approaches to meet their specific needs. Difference Between HRM and personnel Management Human Resource Management (HRM) and Personnel Management are two approaches to managing an organization's workforce. While they share some similarities, they have distinct differences in terms of their philosophy, focus, and practices. Importance of external and internal factors of HRM The importance of external factors in Human Resource Management (HRM) lies in their capacity to shape HR strategies in response to economic conditions, labor market dynamics, regulatory requirements, and societal norms. These external factors can significantly impact an organization's competitiveness, talent acquisition, and legal compliance. Internal factors, on the other hand, are crucial for maintaining a healthy organizational culture, aligning HRM with business objectives, optimizing the workforce, and managing employee relations effectively. They play a pivotal role in fostering a positive work environment, ensuring leadership effectiveness, and tailoring HR practices to the unique needs of the organization. 21 | H R M Balancing both external and internal factors is essential for HR professionals to design and implement HR strategies that drive organizational success and maintain a motivated and productive workforce. Failure to address these factors can lead to talent shortages, legal issues, and diminished organizational performance. The Importance of Internal Factors in HRM: 1. Organizational Culture: An organization's culture shapes HRM practices. A culture that values innovation, risk-taking, or work-life balance will have corresponding HR policies. Aligning HR practices with the prevailing culture helps maintain consistency and fosters a positive work environment. 2. Leadership and Management: Effective leadership is fundamental to HRM success. Leadership sets the tone for employee engagement, work ethics, and organizational values. HR professionals work closely with leadership to ensure their strategies are aligned with the company's vision. 3. Business Strategy: HRM must be closely aligned with the organization's strategic objectives. Understanding the business strategy is crucial for HR professionals to design and implement practices that support these goals. For example, if an organization aims for rapid expansion, HR may focus on aggressive recruitment and training programs. 4. Workforce: The skills, abilities, and needs of an organization's workforce are central to HRM. HR must ensure the right people with the right skills are in the right positions. Understanding the composition of the workforce helps HR design effective talent management strategies, including recruitment, training, and development. 5. Organizational Structure: An organization's structure, including its size, hierarchy, and departmental arrangement, impacts HR practices. It influences decisions related to reporting structures, decision-making processes, and the delegation of HR responsibilities. 6. Employee Relations: The quality of employee-employer relationships and the presence of labor unions significantly affect HRM. HR professionals must manage relationships, resolve conflicts, and, when applicable, engage in negotiations with labor unions to maintain a harmonious work environment. 7. Compensation and Benefits: The organization's financial health and budget constraints influence decisions about employee compensation and benefits packages. HR professionals must balance competitive compensation with cost control to attract and retain top talent. Balancing these external and internal factors is essential for effective HRM. Failure to adapt to these factors can lead to talent shortages, legal issues, poor employee morale, and reduced competitiveness in the market. To achieve success, HR professionals must continuously monitor and adapt their practices to align with the ever-changing external and internal HRM landscape. The Importance of External Factors in HRM: 1. Market and Economic Conditions: External economic conditions significantly influence HRM. During periods of economic growth, organizations may focus on talent acquisition, expansion, and workforce development. In contrast, during economic downturns or recessions, cost control, layoffs, and talent retention become central to HRM. 22 | H R M 2. Regulatory Environment: Legal and regulatory factors play a vital role in HRM. Compliance with labor laws, employment regulations, and industry-specific requirements is crucial. Failure to adhere to these regulations can lead to legal issues, fines, or even damage to the organization's reputation. 3. Labor Market: The external labor market's dynamics affect HRM strategies. Factors like talent availability, skill shortages, and competition for the best candidates shape an organization's approach to recruitment, compensation, and employee retention. 4. Technological Advancements: Technology continues to transform HRM. Automation, HR software, and data analytics enable more efficient HR processes, such as recruitment, payroll management, and employee performance evaluations. HR professionals must stay abreast of these technological advancements to remain competitive. 5. Cultural and Societal Norms: The external cultural and societal context has a direct impact on HRM. Diversity and inclusion initiatives, workplace expectations, and social values influence HR policies and practices. Organizations must adapt to these external cultural shifts to foster an inclusive and equitable work environment. 6. Globalization: In an increasingly globalized world, many organizations have a presence in multiple countries. Managing a diverse, culturally different workforce introduces complexities that require specialized HRM strategies. Understanding global labor laws, cultural differences, and international HR practices is crucial. 7. Political and Environmental Factors: Political stability, government policies, and environmental concerns influence HRM. Organizations may need to adapt their practices to align with sustainability initiatives, promote diversity and inclusion, and navigate geopolitical challenges that impact their workforce. Human Resource Management (HRM) in Bangladesh faces several challenges and problems, which can hinder its effectiveness in organizations. Some of the key issues include: 1. Lack of skilled HR professionals: Many organizations in Bangladesh struggle to find and retain qualified HR professionals who have the necessary skills and knowledge to effectively manage human resources. This leads to a gap in HR expertise. 2. Inadequate training and development: HRM often lacks the necessary investment in training and development programs for employees. This results in a workforce that may not be fully equipped to meet the changing demands of the job market. 3. Labor laws and regulations: The complex and frequently changing labor laws and regulations in Bangladesh can make it challenging for HR professionals to navigate and ensure compliance, which can lead to legal issues and disputes. 4. Lack of awareness about HRM: In many organizations, especially smaller ones, there is a lack of awareness about the importance of HRM and its role in strategic decision-making. HR is often viewed as an administrative function rather than a strategic one. 5. Employee turnover: High turnover rates can be a significant problem in some industries in Bangladesh, leading to increased recruitment and training costs. Retaining and engaging employees can be difficult due to various factors, including job dissatisfaction and limited growth opportunities. 23 | H R M 6. Gender inequality: Gender discrimination and unequal opportunities for women in the workplace continue to be challenges in Bangladesh. HRM needs to address these issues and promote diversity and inclusion. 7. Lack of performance management systems: Many organizations lack effective performance management systems, making it difficult to assess employee performance, provide feedback, and align individual goals with organizational objectives. 8. Compensation and benefits issues: Some organizations struggle with designing fair and competitive compensation and benefits packages, which can lead to dissatisfaction among employees and difficulty in attracting top talent. 9. Political instability: Bangladesh has faced political instability and frequent strikes, which can disrupt business operations and have a direct impact on HR management. 10. Cultural and generational differences: Managing a diverse workforce with varying cultural and generational backgrounds can be a challenge. HR needs to adapt to these differences and promote an inclusive work environment. 11. Lack of technological infrastructure: In some cases, HR processes and functions in Bangladesh are still paper-based, which can be time-consuming and prone to errors. The adoption of HR technology and software is relatively low. 12. Limited employee engagement: Building a culture of employee engagement can be a challenge, as many organizations struggle to motivate and involve their employees in decisionmaking and problem-solving processes. Addressing these HRM challenges in Bangladesh requires a comprehensive approach that includes better education and training for HR professionals, improved compliance with labor laws, a focus on gender equality, and investments in technology and development programs for employees. Competitive advantage of HRM in modern times Human Resource Management (HRM) plays a crucial role in creating and sustaining a competitive advantage for organizations in modern times. Here are some ways in which HRM can provide a competitive edge: 1. Talent acquisition and retention: Identifying, attracting, and retaining top talent is a key source of competitive advantage. Effective HRM practices, such as robust recruitment, onboarding, and talent development programs, can help organizations secure the best employees and reduce turnover. 2. Employee engagement and productivity: Engaged and motivated employees are more productive and innovative. HRM can create a work environment that fosters engagement through initiatives like employee recognition, feedback mechanisms, and a supportive company culture. 3. Skill development and training: In rapidly changing industries, HRM can support the continuous development of employee skills. Training and development programs help employees stay updated with the latest technologies and trends, enhancing an organization's ability to adapt and innovate. 4. Diversity and inclusion: Embracing diversity and inclusion in the workplace can improve problem-solving, creativity, and decision-making. HRM can develop strategies to promote diversity and create an inclusive culture, which can be a competitive advantage in a globalized world. 24 | H R M 5. Compensation and benefits: Offering competitive compensation and benefits packages can attract and retain top talent. HRM can design reward systems that align with organizational goals while providing fair and attractive remuneration to employees. 6. Performance management: Effective performance management systems ensure that employees are aligned with organizational objectives, providing clear expectations and feedback. HRM can help in setting performance standards and facilitating regular performance reviews. 7. Leadership development: Developing effective leaders is critical for any organization. HRM can identify and nurture leadership potential, ensuring a strong leadership pipeline that can drive the company's success. 8. Change management: Adapting to changes in the business environment is essential for staying competitive. HRM can facilitate change management initiatives, helping employees embrace and navigate organizational transformations effectively. 9. Employee well-being and work-life balance: HRM practices that focus on employee wellbeing, mental health, and work-life balance can result in a happier and more productive workforce. A content and healthy workforce is more likely to contribute to an organization's success 10. Data analytics: HRM can leverage data and analytics to make informed decisions about workforce planning, talent acquisition, and employee performance. Data-driven HR strategies can help organizations stay ahead of the competition. 11. Strategic workforce planning: HRM can align human capital strategies with overall business strategies. Understanding the future workforce needs and having a plan in place can give an organization a competitive edge. 12. Employer branding: A positive employer brand can attract top talent and enhance an organization's reputation. HRM can play a pivotal role in building and promoting the employer brand through various initiatives. In modern times, HRM is not just about administrative tasks but is increasingly seen as a strategic partner in achieving organizational goals. The ability to attract, develop, and retain a talented and engaged workforce is a critical component of gaining a competitive advantage in a rapidly changing and globalized business environment. HRM Case Study 1 Harsha and Franklin both of them are postgraduates in management under different streams from the same B-School. Both of them have been close to each other since their college days and the same friendship continues in the organization too as they are placed in the same company, Hy-tech Technology Solutions. Harsha was placed in the HR department as an employee counselor and Franklin was in the finance department as a key finance executive. As per the grade is concerned both are at the same level but when responsibility is concerned Franklin is holding more responsibility being in core finance. By nature, Harsha is friendly in nature and ready to help the needy. Franklin is silent in nature ready to help if approached personally and always a bit egoistic in nature. They have completed 4 years in the organization. And management is very much satisfied with both of them as they are equally talented and constant performers. Harsha felt that nowadays Franklin was not like he used to be in the past. She noticed some behavioral changes in him. During general conversations, she feels that Franklin is taunting 25 | H R M her that she is famous among the employees in the organization, on the other hand, he is not even recognized by fellow employees. One morning Mr. Mehta General Manager of Hy-tech Technology Solutions shocked while going through the mail received from Franklin about his resignation. Mr. Mehta called Harsha immediately and discussed the same as she is close to Franklin. By hearing the news Harsha was stunned and said that she did not know this before she also revealed her current experience with him. Mr. Mehta who does not want to lose both of them promised her that he would handle this and he wouldn’t allow Franklin to resign. In the afternoon Mr. Metha took Franklin to the Canteen to make him comfortable after some general discussion he started on the issue. Franklin, after some hesitation, opened his thinking in front of Mr. Mehta. The problem of Franklin is 1) when he comes alone to the canteen the people from others don’t even recognize him but if he is accompanied by Harsha he gets well-treated by others. 2) one day Both of them entered the company together the security at the gate wished them but the next day when he came alone the same security did not do so. 3) Even in meetings held in the office, the points raised by Harsha will get more value so many times he keeps silent in the meeting. It happens to Franklin that he has to face such degradation in each day of work which disturbs him. Franklin also questioned that ” Harsha and myself have the same qualification, from the same institute, passed out in the same year both with first class. We have the same number of experiences in this organization. Moreover, my responsibilities are more valuable than those of Harsha. After all these things if I am been ignored or unrecognized by my fellow employees my ego does not allow me to continue here”. By listening to this statement Mr.Metha felt that it is not going to be very difficult to stop his resignation. Mr. Mehta explained to Franklin the reasons for such partial behavior of the employees. After listening to Mr. Mehta Franklin said sorry for his reaction and was ready to take back his resignation. And he called Harsha and spoke with them like before. Questions for HRM Case Studies: Case Study 1 Find the reason that Mr. Mehta would have given to Franklin: Solution for HRM Case Study 1 Mr. Mehta listening to this case understood the situation and realized the reason behind the partial response given by the employees towards Franklin and Harsha. As Franklin said both Harsha and Franklin passed out from the same college in the same year. Both of them joined the company together both have the same experience. Even performance-wise, both stand at the same level i.e. both are constant performers and good performers. Franklin analyzed all the above-said similarities between him and Harsha. He also stated that he holds more responsibility than that of Harsha. One thing Franklin did not notice or analyze is the job profile of Harsha. Franklin indeed holds more responsibility than Harsha but when it comes to direct interaction with employees Harsha wins the employees’ attention in this aspect. Harsha being a counsellor in HR faces the employees every day. She developed good rapport among the employees due to her friendly nature. She is always remembered by the employees whenever they face any problem as she gives good counseling and most of the time she suggests the best solutions for such issues. 26 | H R M Franklin though holding a key position in finance his profile does not allow him to interact with the employees. Though he has a helping tendency he does so only when someone approaches him personally. As the employees of other departments do not have any relation with him they never approach him for help. Mr. Mehta having a good experience understood these things when Franklin explained his problems one by one. Later he relates each situation, explained by Franklin with the abovementioned reasons, and made Franklin understand the reality. Mr. Mehta said that the security at the gate or the employees in the canteen who recognized Harsha and not Franklin would have interacted with her during counseling or approached her for any issues. As usual, she would have counseled well or solved their issues that is the reason why they treat her and wish her well whenever they meet her. When it comes to the case of Franklin they would have hardly met him or interacted with him. When it comes to the point that even in-office meetings, Harsha, points are valued so Franklin keeps mum. For this, Mr. Mehta replied that the points put forward by her would be related to employees or from the employees’ point of view which the management wants to know so they give value to her points. As quoted by Fraklin, one or two such incidents keep silent in the meeting. He never attempted to raise some suggestions so management does not have any option to listen to that suggestion. After listening to all the explanations given by Mr. Mehta Franklin realized his mistake and felt proud of the Rapport developed by Harsha among the employees. He said to Mr. Mehta that he would take back his resignation. And rushed to Harsha to make an apology and to meet her as a friend in his college days. HRM Case Study 2 Background of the case study AutoSpare Public Ltd is an Age-old automobile industry involved in the manufacturing of engine Spare parts. They are highly valued among the customers as they are a monopoly in some of their parts. Most of the Indian Automobile leaders are the customers of Auto Spare to name a few TATA, Force Motors, M&M Cummins, etc. Auto Spare has 3 manufacturing Units and all of them are situated in 3 various places in Southern India the management is been done from one of the Manufacturing plants located in Chennai. As most of the customers are located in the Northern and western regions of the country the marketing managers are spread in those places convenient to meet the customer. Only the VP of Marketing and GM Marketing are working from the head office. They act as a link between the company and the marketing people as they communicate the targets to the marketing people and submit the reports, sent by those people, to the higher authorities. Mr.More, Mr.Mehta, and Mr.Rajesh are the marketing team looking after the western region, from where a greater number of customers are operating. The Job profile of these people includes getting monthly requirements from the clients, mailing the same to the respective departments, looking after the supply whether the goods are reaching the customers as per schedule, and attending to the customers in case of any quality issue regarding auto spare parts. And sending the weekly report consisting of reports in detail about all the above-said things to the VP & GM Marketing. In recent days the western region of Autospare is facing a different problem. Even though there is a slag in the Automobile industry being a monopoly Autospare doesn’t face a problem as it gets a continuous schedule to supply from the customers. But the marketing department finds it very difficult to get the material from the plant and supply it to the needy customers. Most of the time it happens that the production itself was supposed to be stopped due to the non-availability of materials from Autospare. 27 | H R M The marketing team has to attend to quality issues at least thrice a week. They have sent several reports regarding these issues but all in the vein, no improvement from the production side. The marketing executives were losing their good terms with the customers. Slowly the customers started to develop other sources for the parts manufactured by Autospare Pub Ltd. Still, they are finding it difficult to develop such sources as the raw material required is unique. In this situation, the CEO of Autospare visited the customers of the western region. Almost all the customers highlighted the quality as the main issue. And most of them also stated that Autospare fails to supply the products as per schedule most of the time. As soon as he returned to head office he sent a mail to all the marketing executives in the western region claiming that:“The executives failed to maintain their rapport with that of customers. The sales in the western region are not up to the mark due to the irresponsive nature of the marketing department. Failed to check whether the schedule is met or not. All the employees in the marketing department of the Western region including the territory head, along with GM and VP must give a detailed explanation about the issue.” He also demanded a detailed report, from the Production VP, regarding the Production and dispatch of products along with schedules received by the production department from the Marketing Department. He also instructed the HR Head to investigate the issue and submit the report and also suggest a reporting model that would avoid such an issue later. Questions on this HRM case study 1. Who is at fault in this case CEO or VP of GM Marketing or Production Department or marketing people in the western region? Justify your answer. ( can make necessary assumptions if required) 2. Consider yourself as one of the marketing executives from the western region and frame a report as demanded by the CEO ( can make necessary assumptions if required) 3. If you are the HR Head how will you proceed with the investigation? what will be the reporting model that you will suggest to the CEO? Solution 1. Who is at fault in this case CEO or VP of GM Marketing or Production Department or marketing people in the western region? Justify your answer. ( can make necessary assumptions if required) By analyzing the case it is given that the Marketing department of the western region has sent several reports all in vain. Hence the fault, in this case, is on the CEO only. we can quote two major reasons for this a) If the marketing department has sent several reports it is the duty of the CEO to take action against these reports and give directions for rectifying actions b) the customer has highlighted the quality issue as the main issue. Even after that, the CEO didn’t consider it as a problem. Hence CEO is at fault (assumptions: VP GM has reported the reports sent from the western region to the CEO) 2. Consider yourself as one of the marketing executives from the western region and frame a report as demanded by the CEO (can make necessary assumptions if required) Considering myself as a marketing executive I will frame a report lighting the following points: 28 | H R M Number of earlier reports sent to the head office Number of quality issues faced during last month from each customer Number of times the company failed to supply the materials to the customers on time How frequently does the western region keep updating the schedule to the production department (You can add other details which you feel relevant to the case) 3. If you are the HR Head how will you proceed with the investigation? what will be the reporting model that you will suggest to the CEO? Being Head of HR I will investigate in the following manner: with Western region marketing people- To understand the real problem. Will intimate them to submit a report on the same With VP and GM Marketing: To understand their communication and reporting patterns. Whether they comminate with all departments and the CEO properly and timely With the production department: How they process the communication received from the marketing department. Is there a quality issue that exists? The report model will be like: The communication flow needs to be regularised. Both the marketing department and Production department must submit a weekly report and monthly report and the same needs to be addressed to the CEO also. A review meeting must be held specifically to address the quality and supply issues. The report of the same must be sent to the CEO. The solution to this HRM case study will be published on 28 April 2020. Stay tuned. This is all about an HRM case study with a solution. 29 | H R M Chapter 2 Environment for Human Resource Management Introduction Meaning of Environment The term "environment" refers to the surroundings or conditions in which a person, animal, plant, or organism lives and operates. It encompasses everything that surrounds and influences an individual or a system, including physical, biological, social, cultural, and economic factors. The environment can be broadly categorized into two main types: 1. Natural Environment: This includes the physical components of the environment that are not created by humans, such as landforms, climate, air, water, soil, and ecosystems. It encompasses the natural world and its various elements. 2. Built Environment: This consists of the human-made or constructed elements of the environment, such as buildings, roads, cities, infrastructure, and other human-designed and built structures. It is the result of human activities and urban development. The environment is a critical concept in various fields, including ecology, biology, environmental science, and social sciences, as it plays a crucial role in shaping the quality of life, ecosystems, and the health and well-being of living organisms. Issues related to the environment, such as pollution, conservation, sustainability, and climate change, are of global concern and have a significant impact on the planet and its inhabitants. What do you mean by environment of HRM? The term "environment of HRM" in the context of Human Resource Management (HRM) refers to the external factors and conditions that influence and impact how an organization manages its human resources. This environment includes various elements such as: 1. Legal and Regulatory Environment: Laws and regulations related to labor, employment, discrimination, and workplace safety that HR departments must adhere to. 2. Economic Environment: Economic conditions, labor market trends, and the availability of financial resources, which affect an organization's HR decisions, like hiring, compensation, and benefits. 3. Social and Cultural Environment: Societal norms, values, and cultural factors that can influence HR policies, diversity, and inclusion efforts. 4. Technological Environment: Advancements in technology that impact HR practices, such as the use of HR software for recruitment, training, and performance management. 5. Political Environment: Government policies and political stability that can influence labor laws and regulations. 6. Global Environment: The globalization of business, which may require HR to manage a diverse and global workforce, considering issues like international labor laws and cultural differences. 7. Competitive Environment: The competitive landscape in the industry, which can affect talent acquisition, retention, and compensation strategies. 30 | H R M 8. Demographic Environment: The composition and characteristics of the workforce, including factors like generational differences and the aging workforce. Understanding and adapting to this environment is crucial for HR professionals to make informed decisions and strategies that align with the organization's goals and the broader external factors impacting their workforce. Factors of environmental analysis of HR planning Environmental analysis in Human Resource (HR) planning involves a systematic assessment of the internal and external factors that can influence an organization's HR strategies and decisions. This analysis is crucial for effective workforce management, ensuring that HR practices align with an ever-changing business environment. Here, we delve into the factors to consider when conducting environmental analysis for HR planning. External Factors: 1. Economic Conditions: • Labor Market Conditions: Understanding the supply and demand for labor in the external job market is essential. This insight helps HR professionals identify talent availability, skill shortages, and wage trends. • Economic Trends: Monitoring economic indicators, such as inflation, unemployment rates, and GDP growth, is critical. Economic fluctuations can impact budget constraints and labor costs, which in turn affect HR planning decisions. 2. Legal and Regulatory Factors: • Labor Laws: Staying informed about evolving labor laws and regulations is imperative. Compliance with local, national, and international employment laws is necessary to avoid legal issues and penalties. • Industry-Specific Regulations: Depending on the industry, there may be specific regulations or certifications that HR must be aware of and adhere to. 3. Technological Advancements: • HR Technology: Continuous monitoring of advancements in HR technology, such as HR software, data analytics, and automation, is essential. Adopting relevant technologies can streamline HR processes and improve decisionmaking. • Digital Transformation: The impact of digital transformation on job roles and skill requirements must be considered. This may necessitate changes in recruitment strategies and the development of digital literacy among employees. 4. Social and Cultural Factors: 31 | H R M • Diversity and Inclusion Trends: Understanding societal norms and trends related to diversity and inclusion is crucial. HR must design practices that promote equity, foster inclusion, and meet evolving expectations for a diverse workforce. • Employee Expectations: The workforce's expectations are continually evolving. HR professionals need to be aware of and adapt to changes in employee expectations, such as a greater emphasis on work-life balance and flexibility. 5. Political and Environmental Factors: • Government Policies: The political environment can affect HR practices, including immigration laws, taxation, and trade policies. Political stability is also a key factor, as instability can disrupt workforce planning. • Environmental Sustainability: The importance of sustainability and corporate social responsibility is on the rise. HR professionals should recognize the impact of environmental considerations on HR practices and initiatives, such as eco-friendly workplace policies. 6. Competitive Landscape: • Industry Competitors: Competitor analysis is crucial. HR professionals need to understand the HR strategies and talent practices of their competitors to identify opportunities for improvement or differentiation. • Market Trends: Staying informed about industry trends and labor market benchmarks is essential. This information helps organizations adjust their recruitment and retention strategies to remain competitive. Internal Factors: 1. Organizational Culture and Leadership: • Culture Assessment: Assessing the current organizational culture is vital to ensure it aligns with the organization's mission and values. HR plays a significant role in shaping and maintaining this culture. • Leadership Effectiveness: Effective leadership is fundamental to HR planning. HR professionals must evaluate the leadership team's ability to drive HR strategies, promote a positive work environment, and lead by example. 2. Business Strategy: • Strategic Alignment: HR planning must align with the overall business strategy. Understanding the organization's mission, vision, and strategic objectives is crucial for HR professionals to design and implement practices that support these goals. For example, if the business strategy involves rapid expansion, HR may need to focus on aggressive recruitment and training programs. 3. Workforce Analysis: • Skill Gaps: Identifying gaps in the current workforce's skills and competencies is essential. This information informs HR's training and development initiatives and helps ensure that the organization has the right talent in place. • Demographics: Understanding the demographics of the workforce, including age, gender, and diversity, is crucial. This information guides HR in tailoring programs and benefits to meet the unique needs of their employees. 4. Organizational Structure: 32 | H R M • Hierarchy and Reporting: The organization's structure has implications for HR practices. HR professionals must understand how HR functions are distributed within the organization and how reporting lines are structured. • Decentralization vs. Centralization: Deciding whether HR functions should be centralized or decentralized within the organization is a critical decision that impacts HR planning. 5. Employee Relations: • Workplace Climate: The workplace climate significantly affects employee satisfaction and engagement levels. HR professionals should assess workplace conditions, identify potential issues or conflicts, and work to maintain a positive work environment. • Union Presence: In cases where labor unions are present, HR must navigate labor-management relations, collective bargaining agreements, and employee representation effectively. 6. Compensation and Benefits: • Financial Health: An organization's financial health directly impacts HR's ability to design competitive compensation and benefits packages. HR professionals must balance the desire for competitive compensation with the financial realities of the organization. • Market Benchmarking: Comparing the organization's compensation packages to industry standards and competitors helps HR determine whether they are offering a competitive and attractive package to current and potential employees. Environmental analysis is an ongoing and dynamic process. HR professionals must continuously monitor and adapt their HR practices to ensure that they align with the everchanging internal and external factors. By considering these factors in HR planning, organizations can make informed decisions, design effective HR strategies, and maintain a motivated and productive workforce that contributes to the achievement of the organization's goals. Impact of internal environmental factors on HRM with the reference to Bangladesh The internal environment of an organization can indeed have a profound impact on Human Resource Management (HRM). This is true not only in Bangladesh but also in organizations worldwide. In the context of Bangladesh, several factors within the internal environment can significantly influence HRM practices and outcomes: 1. Organizational Culture: The culture of an organization plays a crucial role in shaping HRM practices. In Bangladesh, the organizational culture can be influenced by various factors such as the dominant religion (Islam) and cultural norms. HRM practices need to align with these cultural values and traditions, affecting issues like dress code, gender relations, and work-life balance. 2. Management Style: The leadership and management style within a Bangladeshi organization can greatly impact HRM. A hierarchical and autocratic management style might lead to centralized decision-making in HR matters, while a more participative and democratic approach can foster employee involvement in HR decisions. 3. Labor Relations: The nature of labor relations and the presence of labor unions can significantly affect HRM practices. In Bangladesh, labor unions are active in some industries. HR professionals must navigate these relationships to maintain a harmonious workplace and address labor issues. 4. Legal and Regulatory Framework: Bangladesh has specific labor laws and regulations that govern HRM practices. HR professionals must stay updated on labor laws, employment contracts, and dispute resolution mechanisms to ensure compliance and avoid legal issues. 33 | H R M 5. Workforce Composition: The composition of the workforce in Bangladesh, including factors like age, gender, education, and skills, can influence HRM strategies. HR professionals must design recruitment, training, and development programs that cater to the specific characteristics of the Bangladeshi workforce. 6. Economic Conditions: The economic environment in Bangladesh can affect HRM in terms of compensation and benefits. Economic factors like inflation, exchange rates, and wage trends can impact HRM decisions related to salaries, incentives, and benefits. 7.Technology and Infrastructure: The level of technological advancement and infrastructure in Bangladesh can impact HRM practices. Organizations need to adapt to the available technology for tasks like recruitment, training, and performance management. 8. Employee Engagement and Motivation: The internal work environment, including factors like job satisfaction, employee morale, and motivation, can be influenced by various HRM practices, such as recognition and rewards programs, performance appraisals, and career development opportunities. 9. Training and Development: The internal environment should support continuous learning and development opportunities for employees. The availability of training resources and a culture of learning within the organization can impact HRM's effectiveness. 10. Work-Life Balance: Employee well-being and work-life balance are increasingly important in HRM. The internal environment should support policies and practices that promote a healthy work-life balance for employees in Bangladesh. In summary, the internal environment within an organization in Bangladesh, as in any other country, has a profound impact on HRM practices. HR professionals need to be aware of and adapt to these internal factors to effectively manage human resources, align HR strategies with the organization's goals, and create a positive workplace culture that fosters productivity and employee satisfaction. External Environmental Influence of HRM The external environment has a significant influence on Human Resource Management (HRM) practices in organizations. These external factors can shape HRM strategies and impact how HR professionals manage the workforce. Here are some of the key external environmental influences on HRM: 1. Economic Conditions: Labor Market Conditions: The state of the economy can affect the availability of talent, wage levels, and competition for skilled employees. In times of economic growth, attracting and retaining talent may be more challenging, while in economic downturns, cost-cutting and layoffs might be necessary. 2. Legal and Regulatory Environment: Labor Laws: Government regulations, including labor laws, workplace safety standards, and employment-related legislation, can significantly impact HRM practices. Compliance with these regulations is crucial to avoid legal issues and penalties. 3. Technological Advancements: Automation and AI: Technological innovations can lead to changes in job roles and skills requirements. HRM must adapt by providing training and development opportunities to keep the workforce up-to-date. 4. Cultural and Social Factors: Diversity and Inclusion: Changing societal attitudes toward diversity and inclusion require HRM to develop strategies for promoting diversity in the workplace and ensuring fair treatment of all employees. 34 | H R M 5. Globalization: International Expansion: Organizations operating in a global context need to consider HRM practices that accommodate a diverse and multicultural workforce. They must also navigate international labor laws and practices. 6. Competitive Environment: Talent Acquisition and Retention: A competitive business environment can create a war for talent. HRM must develop strategies to attract, retain, and develop the best employees to maintain a competitive edge. 7. Political Environment: Government Policies: Changes in government policies, such as immigration regulations and trade agreements, can impact HRM, especially in industries that rely on immigrant labor or have global supply chains. 8. Demographic Changes: Aging Workforce: An aging population can lead to a higher percentage of older employees in the workforce, which may necessitate adjustments in HRM practices, including retirement planning and succession planning. 9. Environmental Sustainability: Environmental Initiatives: Increasing awareness of environmental sustainability may lead to HRM practices focused on promoting sustainability, such as green HRM, which considers the environmental impact of HR practices. 10. Public Perception and Reputation: Social Responsibility: Negative publicity related to HRM practices, such as unethical labor practices or workplace harassment, can harm an organization's reputation and impact its ability to attract and retain talent. 11. Health and Pandemics: Health and Safety Regulations: Health crises like the COVID-19 pandemic have required organizations to implement new health and safety measures, affecting HRM practices related to remote work, employee well-being, and crisis management. 12. Technological Risks: Data Privacy: The risk of data breaches and privacy concerns has led to increased attention on HRM's handling of sensitive employee data. These external environmental influences on HRM require HR professionals to be agile and adaptable. They must continually monitor these factors, anticipate changes, and adjust HR strategies and policies accordingly. A flexible and forward-thinking HRM approach is essential to effectively respond to external environmental changes and support the organization's success. Environmental barriers in Bangladesh Human Resource Management (HRM) environmental barriers in Bangladesh can include a range of challenges and issues related to managing the workforce within the context of the country's specific economic, social, and cultural environment. Some of the environmental barriers that HRM professionals and organizations in Bangladesh might encounter include: 1. Labor Laws and Regulations: The complex and frequently changing labor laws and regulations in Bangladesh can pose a challenge for HRM. Ensuring compliance with these laws and handling issues related to labor unions and workers' rights can be demanding. 2. Cultural Diversity: Bangladesh is a diverse country with multiple ethnic groups and languages. HRM needs to address cultural diversity and promote inclusion to ensure a harmonious workplace. 3. High Population Density: Bangladesh has one of the world's highest population densities, which can lead to challenges in talent management, recruitment, and providing suitable working conditions. 4. Labor Unrest: Labor unrest, strikes, and worker protests are not uncommon in Bangladesh. Managing employee grievances and maintaining labor relations can be a significant challenge for HRM. 35 | H R M 5. Skill Shortages: There may be shortages of skilled labor in certain industries. HRM must focus on training and development programs to bridge skill gaps. 6. Compensation and Benefits: Establishing competitive and equitable compensation and benefits packages can be challenging, especially in a country with varying living standards. 7. Political and Economic Instability: Bangladesh has experienced political and economic instability at times. These uncertainties can impact HRM planning and operations. 8. Limited Access to Technology: In some areas of the country, limited access to advanced technology and resources can affect HRM practices, including recruitment, training, and performance management. 9. Gender Inequality: Gender inequality remains a concern in Bangladesh. HRM needs to address this issue and promote gender diversity and equality in the workplace. 10. Environmental Factors: Bangladesh is prone to natural disasters, including floods and cyclones. HRM may need to develop contingency plans to address the impact of such events on the workforce and business operations. 11. Global Supply Chain Issues: Many industries in Bangladesh are connected to global supply chains. HRM needs to navigate challenges related to international regulations, labor standards, and geopolitical factors. To address these environmental barriers, HRM professionals in Bangladesh should stay informed about changes in laws and regulations, develop effective labor relations strategies, invest in employee training and development, and work on building a diverse and inclusive workplace culture. Adapting HRM practices to the local context while aligning with global best practices can help organizations overcome these challenges and effectively manage their workforce in Bangladesh. Overcoming environmental barriers Overcoming environmental barriers in Human Resource Management (HRM) in Bangladesh requires a proactive and strategic approach. Here are some strategies to address and mitigate these challenges: 1. Compliance and Legal Expertise: HR professionals should invest in a strong understanding of labor laws and regulations in Bangladesh. They should also stay updated on any changes in legislation. Legal compliance is crucial to avoid legal disputes and penalties. 2. Effective Labor Relations: Establishing and maintaining good relations with labor unions and workers is essential. Open communication channels, negotiation skills, and dispute resolution mechanisms can help prevent labor unrest. 3. Cultural Sensitivity and Inclusion: HR should promote a culture of inclusivity and diversity. Cultural sensitivity training and awareness programs can help employees from different backgrounds work together harmoniously. 4. Skills Development: Address skill shortages through training and development programs. Collaborate with educational institutions to ensure that graduates are better aligned with industry requirements. 5. Competitive Compensation and Benefits: HR should conduct regular market surveys to ensure that the compensation and benefits packages offered are competitive and fair. Incentive programs and recognition initiatives can also motivate employees. 36 | H R M 6. Political and Economic Risk Mitigation: While it's challenging to control political and economic factors, HR can develop contingency plans to mitigate risks associated with instability. Diversifying business interests or markets may help spread risk. 7. Technology Adoption: Invest in technology to streamline HR processes and improve efficiency. This can include HR management software for recruitment, payroll, and performance management. Online training platforms can also help bridge skill gaps. 8. Gender Equality Initiatives: Implement policies and programs that promote gender equality, equal pay, and a safe working environment. Support women's leadership and empowerment within the organization. 9. Disaster Preparedness: Develop and regularly update disaster recovery and business continuity plans. These plans should outline how HR will ensure the safety and well-being of employees during natural disasters. 10. Global Supply Chain Management: Collaborate with other departments, such as procurement and operations, to ensure that the workforce is aligned with global supply chain needs. This may involve cross-functional training and communication. 11. Employee Welfare Programs: Implement employee welfare programs to support the well-being of employees, particularly in challenging environments. This can include health and safety initiatives, counseling services, and employee assistance programs. 12. Government and Industry Associations: Join and actively participate in government and industry associations related to HR and labor management. These organizations can provide valuable resources, networking opportunities, and advocacy for HR issues. Overcoming environmental barriers in HRM in Bangladesh is an ongoing process that requires adaptability, strong leadership, and a commitment to the well-being and development of the workforce. By addressing these challenges strategically, organizations can create a more stable and productive work environment in Bangladesh. Meaning of Global Environment The term "global environment" refers to the overall ecological, physical, economic, social, and cultural conditions and factors that exist and interact on a worldwide or global scale. It encompasses the entire planet and all the interconnected systems, processes, and influences that affect life on Earth. Understanding the global environment is essential for addressing various challenges and opportunities that transcend national boundaries. Issues such as climate change, international trade, global health crises, and environmental conservation require coordinated efforts and cooperation on a global scale. Analyzing and managing the global environment is a multidisciplinary endeavor that involves various fields, including environmental science, economics, politics, sociology, and international relations. Impact of globalization on HRM Globalization has had a significant impact on Human Resource Management (HRM) in various ways, transforming the role and functions of HR departments in organizations. Here are some key impacts of globalization on HRM: 37 | H R M 1. Diverse workforce: Globalization has led to increased cultural and demographic diversity within the workforce. HRM must manage and promote diversity and inclusion, ensuring that employees from different backgrounds can work effectively together. 2. Talent acquisition: Organizations often seek talent on a global scale. HRM is responsible for recruiting and onboarding employees from different countries and cultural backgrounds, which involves dealing with immigration and work permit issues. 3. Cross-border employment regulations: Globalization necessitates a thorough understanding of employment laws and regulations in various countries. HRM must ensure compliance with local labor laws, international labor standards, and global HR best practices. 4. Global mobility and expatriate management: Organizations may send employees on international assignments. HRM must manage the relocation, compensation, benefits, and cultural adaptation of expatriates, as well as ensure their successful repatriation. 5. Language and communication: Effective communication is critical in a globalized workforce. HRM may need to address language barriers and promote cross-cultural communication training and programs. 6. Compensation and benefits: HRM must design global compensation and benefits packages that align with local market conditions while maintaining equity across borders. 7. Virtual teams and remote work: Globalization has led to the rise of virtual teams and remote work. HRM must develop policies, technologies, and practices that support remote employees and ensure their productivity and engagement. 8. Cross-cultural training and development: HRM plays a role in providing cross-cultural training and development programs for employees to help them adapt to different cultural norms and work effectively in a global context. 9. Global HR policies and practices: Organizations need to develop consistent HR policies and practices that can be applied globally. HRM must ensure that these policies adhere to both local laws and international HR standards. 10. Global HR technology: HR technology and software must be capable of supporting global HR functions, including payroll, benefits administration, and workforce analytics. This technology enables centralized control and reporting on a global scale. 11. Compliance and ethical considerations: HRM must be vigilant about compliance with international labor standards, ethical labor practices, and corporate social responsibility, as violations can harm an organization's reputation and financial performance. 12. Cross-border mergers and acquisitions: HRM often plays a crucial role in managing the integration of human resources during mergers and acquisitions involving international entities. 13. Workforce planning and skills development: HRM needs to consider global workforce planning, including the identification of skills gaps and strategies for developing a globally competitive workforce. 14. Political and economic stability: Globalization exposes organizations to geopolitical risks and economic fluctuations. HRM must navigate these challenges while ensuring the wellbeing and job security of the workforce. In summary, globalization has made HRM more complex and challenging, requiring HR professionals to adapt to a rapidly changing environment and develop global competencies. The ability to manage a diverse, globally dispersed workforce while complying with local and international regulations is crucial for organizations seeking to thrive in a globalized economy. 38 | H R M How does technology affect HR functions Technology has a profound impact on various HR functions, transforming the way human resources are managed and enhancing efficiency, decision-making, and employee engagement. Here are some ways in which technology affects HR functions: 1. Recruitment and Talent Acquisition: • Online job portals, social media platforms, and applicant tracking systems (ATS) have made it easier to source and screen candidates. • AI and machine learning algorithms can analyze resumes and match candidates to job requirements more efficiently. • Video interviews and virtual job fairs have become common, reducing the need for in-person interviews. 2. Onboarding and Training: • Learning management systems (LMS) and e-learning platforms enable employees to access training materials and courses remotely. • Gamification and virtual reality can make training more engaging and effective. • Electronic onboarding forms and digital signatures simplify the onboarding process. 3. Performance Management: • HR technology allows for continuous performance feedback through real-time communication and feedback tools. • Performance analytics and data-driven insights help in identifying areas for improvement and employee development. • 360-degree feedback and peer reviews can be facilitated electronically. 4. Employee Engagement and Communication: • Employee engagement platforms and intranet systems provide a space for employees to connect, share information, and provide feedback. • Mobile apps and communication tools facilitate real-time communication between employees and HR. • Employee surveys and sentiment analysis tools help gauge employee satisfaction and sentiment. 5. HR Analytics and Data-Driven Decision-Making: • HR analytics software enables HR professionals to collect and analyze data related to employee performance, turnover, and engagement. • Predictive analytics can help forecast future HR needs and make data-driven decisions. • Dashboards and reporting tools provide clear visualizations of HR metrics and key performance indicators. 6. Benefits and Compensation Management: • 39 | H R M Software systems streamline benefits enrollment and management, allowing employees to customize their benefit packages. • Compensation analysis tools help HR professionals ensure competitive and fair compensation practices. • Payroll processing is automated, reducing errors and improving efficiency. 7. Workforce Planning and Succession Management: • Talent management software helps organizations identify high-potential employees and develop succession plans. • Workforce planning tools assist in aligning HR strategies with overall business goals. • Scenario modeling and workforce analytics guide long-term HR planning. 8. Employee Self-Service: • Employee self-service portals allow employees to access their HR-related information, update personal details, request time off, and view pay stubs. • This reduces the administrative burden on HR professionals and empowers employees to manage their own HR transactions. 9. Compliance and Record-Keeping: • HR technology aids in maintaining compliance with labor laws and regulations by automating record-keeping and reporting. • Data security measures protect sensitive employee information and ensure GDPR or other data privacy regulations are followed. 10. Remote Work and Flexibility: • Technology tools enable remote work arrangements, supporting flexible work schedules and work-from-home options. • Collaboration platforms and project management tools assist in managing remote teams effectively. In summary, technology has revolutionized HR functions by automating processes, improving decision-making through data analysis, enhancing employee experiences, and enabling HR professionals to focus on strategic aspects of human resource management. To maximize the benefits of technology, HR departments need to stay updated on the latest advancements and adapt their practices accordingly. Meaning of environmental scanning Environmental scanning is a process of systematically analyzing and interpreting information about the external environment of an organization to identify opportunities, threats, trends, and other factors that can impact the organization’s current and future strategies. It is a crucial part of the business process as it helps organizations to stay ahead of the competition and minimize the risk of business loss. Environmental scanning involves collecting, evaluating, and delivering information about the internal and external environment of an organization. The collected information is then analyzed to detect opportunities, threats, trends, important lessons, and weaknesses that can impact the organization’s current and future strategies. The following are some of the efforts made by organizations to perform environmental scanning: 40 | H R M ➢ Performing market research and studying the data collected from the research process to make plans for future actions. ➢ Comparing the performance of competitor companies to learn about their strategies and business ideas. ➢ Learning from the executives of the organization. ➢ Analyzing and making decisions based on demographic data. ➢ Collecting information from articles, web pages, journals, magazines, and newspapers, etc. Environmental scanning plays an important role in the business process of an organization. By performing environmental analysis, organizations can learn about the strengths, opportunities, and threats lurking around the industry 1. Having knowledge about all these things, organizations can take decisions regarding their business and reform their business strategies. Role of Human Resource in Environment Scanning The Human Resources (HR) department plays a significant role in environmental scanning as part of its broader responsibilities in strategic planning, organizational development, and talent management. HR professionals can contribute to environmental scanning in the following ways: 1. Identifying Talent Needs: HR teams need to stay informed about external factors that may impact the organization's talent needs. For example, changes in industry trends, technological advancements, or new regulations can affect the skills and competencies required. HR can proactively identify these shifts and collaborate with other departments to plan for talent acquisition, development, or restructuring accordingly. 2. Monitoring Labor Market Trends: HR professionals should keep an eye on labor market trends, including labor shortages, emerging skills, and changes in compensation and benefits in their industry and region. This information is vital for adjusting recruitment strategies and ensuring competitive compensation packages. 3. Compliance and Regulatory Changes: HR is responsible for ensuring the organization complies with labor laws and regulations. Staying informed about legislative changes at the local, national, and international levels is crucial. HR can work to align the organization's policies and practices with evolving legal requirements. 4. Employee Relations and Cultural Shifts: HR is on the front lines of employee relations and can detect shifts in employee attitudes, values, and expectations. Changes in the external environment, such as cultural shifts or social movements, can impact the organization's culture and the way employees engage with their work. HR can use this information to develop strategies for maintaining a positive work environment. 5. Technological Advancements: HR plays a role in adapting to technological changes and leveraging them to improve HR functions. For example, adopting new recruitment technologies or digital learning platforms can enhance HR's effectiveness in talent acquisition and development. 6. Globalization and Diversity: As organizations become more global, HR needs to understand and navigate the challenges and opportunities that come with a diverse and global workforce. HR can develop strategies for cross-cultural collaboration, diversity and inclusion initiatives, and talent management across borders. 7. Environmental Sustainability: Increasingly, environmental sustainability is a concern for organizations. HR can contribute by promoting environmentally responsible 41 | H R M practices within the workplace, addressing sustainability in HR policies, and aligning employee engagement with the organization's environmental goals. 8. Competitive Talent Intelligence: HR can gather intelligence on competitors' talent management strategies and practices. Understanding how other organizations are approaching talent acquisition, retention, and development can inform HR's own strategies. 9. Strategic Planning: HR should actively participate in the organization's strategic planning process. Environmental scanning informs the development of the organization's strategic objectives, and HR plays a role in aligning its practices with these objectives. By actively engaging in environmental scanning, HR professionals can help ensure that the organization's workforce remains adaptable and responsive to the changing external environment. This involvement not only enhances the organization's ability to attract and retain top talent but also contributes to its overall strategic success and long-term sustainability. 42 | H R M Chapter 03 Human Resource Planning Chapter Outline Definition of Human Recourse Planning-Benefits of Human Resources Planning-Human Resource Planning Method-Components of Human Resource Planning-Pattern of Human Recourse Planning in Bangladeshi Organizations-Human Recourses Planning Model in Bangladesh-Limitations of Human Resource Planning in Bangladesh-Improvement of Human Resource Planning System in Bangladesh-Steps or Stages of Human Resource Planning-Integrating Approach to Human Resource Planning-Questions. Learning Objectives After completing this chapter, you should be able to: Define human resource planning. State the human resource planning method. Discuss the elements of human resource planning. Identify the pattern of human resource planning in Bangladesh. Discuss the techniques of crafting human resource planning. State the steps or stages of human resource planning ir Bangladesh. Definition of Human Resource Planning Human Resource Planning (HRP) is the process of forecasting the future human resource requirements of the organization and determining as to how the existing human resource capacity of the organization can be utilized to fulfill these requirements. It, thus, focuses on the basic economic concept of demand and supply in context to the human resource capacity of the organization. 43 | H R M Human Resource Planning is a process of deciding in advance what is to be done in future regarding human resources of an organization. It deals with the activities and steps to be taken in regard to demand for and supply of human resources as well as their proper utilization. Human Resource Planning includes the determination of existing human resource needs and finding out the ways of procuring the human resource to be needed for the organization. That is Human Resource Planning is a blue'-print of existing human resources and required number of human resources in future. Human resource planning is the sum total of the plan formulated for the recruiting, screening, compensation, training, job designing, and work rules of an organization's human resources. It is a process deigned to translate the corporate plans and objective into future quantitative and qualitative employment requirement, together with plans to fulfill that requirement. However, definitions of human resource planning given by some authors are as follows: 1. Robbins defines HRP as "The process by which an organization ensures that it has the right number and kind of people at the places, at the right time, capable of effectively and efficiently completing these tasks that will help the organization achieve its overall objectives". 2. According to Tripathi "Human resource planning may be defined as a strategy for the procurement, development, allocation, and utilization of an enterprise's human resources'". 3. HRP has also been defined by Cascio as follows "Human resource planning broadly is an effort to anticipate future business and environmental demands on the organization and to meet the human resource requirements dictated by these conditions". 4. According to William F, Glueck, "Human resource planning is the process by which management attempts to provide adequate human resources to achieve organization objectives". It then translates the organization's objectives and plans into number of people, needed to meet those activities. Through planning, management. makes a balance between demand for and supply of right number and kind's people at the right time. It is a supply and demand calculation. Manpower is an asset; it is asset which appreciates-which grows over day by day. Machines depreciate as time goes on. By consulting the above definitions, we can get some elements of HRP. These elements are listed in the following points: 1. Establishing and recognizing the future job requirements 2. Identifying deficiency in terms of quantity 3. Identifying deficiency in terms of quality and specification 4. Identifying the sources of right type of man 5. Developing the available manpower and 6. Ensuring the effective utilization of work force A manpower plan must be a set of two plans: a manpower demand plan and nanpower supply plan. Why Adopt HR Policies Every organization should have human resource policies as they ensure the following benefits. ▪ Thoughts of management: The work involved in formulating human resource policies requires that the management give deep thought to the basic needs of both the organization and the employees the management must examine its basic convictions as well as give full consideration to the prevailing practices in other organizations. 44 | H R M ▪ ▪ ▪ ▪ ▪ Consistent treatment: Established human resource, policies censure consistent treatment of all human resource throughout the organization. Therefore, favoritism and discrimination are minimized. Continuity of action: Continuity of action is assured even though top management human resource change. The manager of a company may possess a very sound human resource management philosophy. The tenure of office of any manger is finite. But the organization continues. Policies promote stability. Standard of performance: Human resource policies serve as a standard of performance. Actual results can be compared with the policy to determine how well the members of the organization are living up to the professed intentions. Employee motivation: Sound human resource policies help build employee motivation and loyalty. This especially true where the policies reflect established principles of fair play and justice and where they help people grow within the organization. Resolving conflict: Sound human resource policies help resolve intrapersonal, interpersonal and inter group conflicts. Benefits of Human Resources Planning By formulating a well-conceived HRP, some benefits can be accrued by the organization as well as by the human resource management. These benefits can be summarized in the following points: 1. Better view of business decision: Upper management has a better view of the human resource dimensions of business decisions. 2. Minimum cost: HR costs may be lower because management can anticipate imbalances before they become unmanageable and expensive. 3. Anticipated talent: More time is available to locate talent because needs are anticipated and identified before the actual staffing is required. 4. Management development: Proper HRP can ensure the development of managers through proper training programs. 5. Information base: HRP helps in expanding the human resource management information base to assist other human resource activities and other organizational units. 6. Technological change: Rapid technological changes make human resource planning more important as the demand for new 'skills is increasing. 7. Reduction of wastage: Proper manpower policy will reduce wastage rate. There are two types of wastage - a. voluntary (marriage, pregnancy, immigration, early retirement) and incidental (death, retirement and dismissal). 8. Corporate asset: Manpower planning stresses the value of human resources as corporate assets. 9. Gradual growth: Interest in manpower planning is increasing because the size of the organization is gradually increasing. If human resource manager makes a good plan all activities are expected to. be performed timely and properly and then organization may be benefited in many ways. Human Resource Planning Method There are four methods of formulating human resource planning. These methods are used to determine the requirements of personnel. By using these methods, human resource planning manager can formulate an effective human resource plan for the organization. 1. Annual estimate of expected vacancies: By using this method requirements of human resource for the whole year can be estimated. Thus, organization can also make necessary arrangement for procuring suitable human resources. 45 | H R M 2. Long range estimate of expected vacancies: This method helps the human resource manager to make a long-range estimate of human resources for the next few years (usually for more than 3 years). 3. Man specification- requirements: By resorting the third-method of human resources planning, human resources needs can be specified for the departments. Not only can that human resource with specific qualification also be identified by this method. 4. Job requirements: Every job requires separate type of human resource for pron. functioning. This method helps HRP unit/manager in determining job requirement for the organization. Human resource manager will examine the organizational structure regularly to anticipate its manpower requirements. A job analysis must be made to know the requirements of particular job. Components of Human Resources Planning Human resource planning has several components., Anthony and his associates have identified three components of HRP. These components can help the human resource planner to know the nature of economic forces available in the business and industrial arena, latest position of demand and supply of labor in the market and lastly possibility fl skills change and shortage or surplus of human resources. In the following paragraph these three components are briefly discussed: 1. Economic forces 2. The labor market 3. Skill change and human resources shortage • • • Economic forces: National employment and economic policy, planning influence human resource planning, National economic policy planning set the stage for national policy in training and education and level of economic activity through monetary and fiscal policy. The labor market: Labor market is the pool of qualified applicants from which ả company can line. The relationship between organizations goes requirements and the available pool of skills and abilities is typically viewed by manager is as sequential process whereby the organization first establishes the best goes structure in terms of job content and task assignments determine each goes worth in the production process and proceed to hire develop is a resource that retch this requirement. Skill changes and personnel shortage: Changes in the labor market have led in skill shortages as well as oversupply, When the human resources educational skill min differ significantly from one skill required by employers, personnel shortage develop. Employers have to be open but cannot find people with the skill needed Many people who want goes are not hired because they do not have skill demanded. Human Resource Planning Model Human Resources planning organizations are more or less formulated up to the mark. They do not usually follow the model of process developed in the foreign countries. Human resource planning model can be proposed for Bangladeshi organizations, which can be glanced in following diagram: Mission Mission Objectives & Goal Policy & Strategy Organization Strucgture 46 | H R M Man Power Follow up Figure: 3.1: Proposed human resource planning model in Bangladesh The steps of the process are briefly explained below: 1. Mission: Every organization should set its mission to improve the human resource planning systems in Bangladesh. 2. Objectives & Goal: After setting the mission, objectives and goal must be established reasonably to reach the mission. 3. Strategy: Some action steps for the fulfillment should be undertaken in order to make the organization goal oriented. 4. Structure: A structural design showing the functional relationship of executive and employees in the organization should be made. 5. People: A group of people should be deployed for implementing the strategy and achieving the goal. 6. Follow up: This is the last stage of human resources planning system in Bangladesh. In this stage manpower activities should be properly supervised and followed up in accordance with the mission established. This stage can further help in re-designing the organizational mission. 7. Limitations of Human Resource Planning in Bangladesh Human resource planning in Bangladesh, like in many other countries, has its limitations. Some of the key limitations include: 1. Data Availability: Accurate and up-to-date data on the labor market, workforce skills, and employment trends are often lacking. This makes it challenging to create effective HR plans. 2. Economic Instability: Bangladesh's economy can be subject to volatility, which can affect the demand for labor and the ability to implement long-term HR plans effectively. 3. Educational Disparities: There are disparities in the quality of education and access to training and skills development. This can result in a workforce that may not meet the demands of modern industries. 4. Informal Labor Market: A significant portion of the labor force in Bangladesh is engaged in the informal sector, making it difficult to monitor and plan for these workers effectively. 5. Rapid Population Growth: Bangladesh has a high population growth rate, which can strain the job market and make long-term HR planning more complex. 6. Lack of Coordination: Coordination between government policies, educational institutions, and the private sector may be lacking, leading to a mismatch between the skills taught and the skills needed in the job market. 7. Technological Changes: Rapid technological advancements can quickly render certain skills obsolete, making it challenging to keep HR plans up to date. 8. Regulatory Challenges: Complex labor laws and regulations can pose challenges for HR planning, especially for businesses looking to expand and hire more employees. To overcome these limitations, it's essential for policymakers, businesses, and educational institutions to work together to improve data collection, address educational disparities, and create more flexible and adaptive HR planning strategies. Improvement of human resource planning system in Bangladesh 47 | H R M Improving the human resource planning system in Bangladesh involves addressing various aspects such as technology, data management, policy frameworks, and skill development. Here are some key recommendations: Integration of Technology: ● HR Information Systems (HRIS): Implement a robust HRIS to streamline data management, automate routine tasks, and provide real-time insights into workforce dynamics. ● Cloud-Based Solutions: Consider moving HR systems to the cloud for accessibility, scalability, and data security. This can enhance collaboration and ensure the availability of information from anywhere. Data Analytics and Reporting: ● Predictive Analytics: Use predictive analytics to forecast future workforce needs based on historical data, market trends, and organizational growth plans. ● Customized Reporting: Develop customized reports to track key HR metrics, including employee turnover, skill gaps, and succession planning. Training and Development: ● Skill Mapping: Conduct regular skill assessments to identify gaps in employee skills. Use this information for targeted training programs to enhance the overall skill set of the workforce. ● Digital Learning Platforms: Implement digital learning platforms to provide employees with continuous learning opportunities, fostering a culture of skill development. Talent Acquisition and Recruitment: ● Social Media and Online Platforms: Leverage social media and online platforms for recruitment to tap into a wider pool of talent. ● Automated Recruitment Processes: Implement automation in recruitment processes, such as resume screening and interview scheduling, to save time and resources. Succession Planning: ● Identification of High Potentials: Implement a succession planning program to identify and nurture high-potential employees for leadership roles. ● Cross-Training: Facilitate cross-training programs to ensure that multiple employees are capable of handling critical roles within the organization. Employee Engagement and Retention: ● Feedback Mechanisms: Establish regular feedback mechanisms to understand employee concerns and satisfaction levels. ● Recognition Programs: Implement employee recognition programs to acknowledge and reward outstanding performance, fostering a positive work environment. Legal Compliance and Policy Framework: ● Regular Updates: Keep HR policies updated in accordance with the evolving labor laws and regulations. ● Ethical Practices: Ensure ethical practices in HR processes, promoting transparency and fairness. Collaboration with Educational Institutions: ● Industry-Academia Collaboration: Foster collaboration with educational institutions to align academic programs with industry requirements, ensuring a better match between education and employment. Continuous Monitoring and Evaluation: ● Key Performance Indicators (KPIs): Define and monitor KPIs to assess the effectiveness of the HR planning system continuously. 48 | H R M ● Feedback Loops: Establish feedback loops with employees and managers to refine processes based on real-time input. Cybersecurity Measures: ● Data Security Protocols: Implement robust cybersecurity measures to protect sensitive HR data from unauthorized access or breaches. By addressing these aspects, Bangladesh can enhance its human resource planning system, fostering a skilled, engaged, and adaptable workforce that aligns with the demands of a dynamic and evolving global economy. Steps or stages of human resource planning Human resource planning is a systematic process that involves forecasting an organization's future human resource needs and ensuring that it has the right people in the right positions at the right time. The process generally includes the following steps: Environmental Analysis: ● Internal Analysis: Assess the current workforce, including skills, experience, and capabilities. ● External Analysis: Evaluate external factors that may impact human resources, such as industry trends, economic conditions, and labor market conditions. Forecasting Demand: ● Quantitative Methods: Use statistical techniques to predict future workforce needs based on historical data and trends. ● Qualitative Methods: Gather expert opinions and insights to supplement quantitative data and account for factors that may not be easily quantifiable. Forecasting Supply: ● Internal Supply: Assess the availability of talent within the organization, considering promotions, transfers, retirements, and other internal movements. ● External Supply: Evaluate the availability of external talent through factors like the labor market, educational institutions, and demographics. Gap Analysis: ● Compare the forecasted demand with the projected supply to identify any gaps or surpluses in the workforce. ● Determine the types and quantities of skills that will be needed in the future. Action Planning: ● Develop strategies to address the identified gaps, such as recruitment, training, development, or restructuring. ● Consider alternative solutions, such as outsourcing or technological solutions, if appropriate. Implementation: ● Put the action plans into motion by executing recruitment, training, or other HR initiatives. ● Monitor progress and make adjustments as needed. Monitoring and Control: ● Regularly review and update the human resource plan to ensure its relevance in the dynamic business environment. ● Monitor key metrics and indicators to assess the effectiveness of the human resource planning efforts. Feedback and Adjustment: ● Gather feedback from employees, managers, and other stakeholders. ● Adjust the human resource plan based on feedback and changing organizational needs. Legal and Ethical Considerations: 49 | H R M Ensure that all human resource planning activities comply with relevant laws and ethical standards. ● Consider diversity and inclusion principles in workforce planning. Documentation and Reporting: Keep records of the entire human resource planning process, including assumptions, data sources, and decisions made. Provide regular reports to management and stakeholders on the status and outcomes of human resource planning efforts. ● ● ● By following these steps, organizations can align their workforce with business goals anticipate future challenges, and ensure they have the right talent to drive success Integrating approach to human resource objectives An integrating approach to human resource objectives involves aligning HR strategies and activities with overall organizational goals to ensure that the human capital contributes effectively to the achievement of those goals. This approach recognizes the interconnectedness of various HR functions and aims to create a cohesive and synergistic HR system. Here are key elements of an integrating approach to human resource objectives: Strategic Alignment: ● Organizational Strategy: Understand the overall business strategy and objectives. HR objectives should be directly linked to these organizational goals. ● HR Strategy: Develop a comprehensive HR strategy that supports and complements the organizational strategy. This may involve workforce planning, talent management, and employee development strategies. Talent Management: ● Recruitment and Selection: Ensure that recruitment efforts target individuals with skills and competencies that align with organizational needs. ● Training and Development: Provide training programs that enhance employees' skills and capabilities, directly contributing to organizational objectives. ● Succession Planning: Identify and develop internal talent to fill key positions as part of long-term organizational planning. Performance Management: ● Goal Alignment: Connect individual and team goals with organizational objectives. This ensures that employees' efforts contribute directly to the achievement of broader goals. ● Feedback and Recognition: Regularly provide feedback on performance, recognizing and rewarding achievements that contribute to organizational success. Employee Engagement: ● Communication: Foster open communication channels to ensure employees understand the organization's objectives and their role in achieving them. ● Well-being Programs: Implement initiatives that support employee well-being, contributing to a positive work environment and increased productivity. HR Technology: ● Integrated Systems: Implement HR technology solutions that integrate various HR functions (e.g., recruitment, performance management, and learning management systems) for streamlined processes and better data analytics. 50 | H R M ● Data-Driven Decision Making: Leverage HR analytics to make informed decisions about talent acquisition, employee development, and workforce planning. Change Management: ● Adaptability: Build a culture that embraces change, enabling the organization and its employees to respond effectively to shifts in strategy or the business environment. ● Communication and Training: Support employees through change with clear communication, training programs, and resources. Legal Compliance: ● HR Policies and Procedures: Ensure that HR policies and procedures are aligned with legal requirements, industry standards, and organizational objectives. Continuous Improvement: ● Feedback Mechanisms: Establish mechanisms for feedback from employees, managers, and other stakeholders to continuously improve HR processes and initiatives. ● Monitoring and Evaluation: Regularly monitor and evaluate the effectiveness of HR programs in contributing to organizational objectives. An integrating approach to human resource objectives involves a holistic perspective, recognizing that effective people management is integral to overall organizational success. It requires collaboration across departments and a commitment to continuous improvement in HR practice HRM Policy of ABC Limited Human Resource Policy of ABC Limited is as follows: ● ● ● ● ● ● ● ● ● ● ● ● Understand employees' role. Have the necessary empowerment. Take responsibility. Develop employees' competency: knowledge, skills and ability. Clearly defined objectives for both the individual and the work team shall be the cornerstone of our activities. Respect for, and confidence in the individual shall characterize our work environment. This must be safe and stimulating. The local unions shall be natural co-operation partners. Each manager at ABC shall continually develop his/her management skills and leadership so as to be able to assume full responsibility for the employees. Planning discussions shall be held at least once a year with each individual employee. The goal of our learning organization is to achieve a continuous development of competence, internal mobility as well as employee development and to provide career opportunities consistent with abilities. Ethics, equal opportunities and an open and honest exchange of thoughts and ideas are the cornerstone of our actions. The implementation of the human resource policy is a strategic issue in which we must all participate. A few specific human resource policies are: ● Policy of hiring people with due respect to factors like reservation, sex, marital status, and the like. 51 | H R M ● ● Policy on terms and conditions of employment- compensation policy and methods, hours of work, overtime, promotion, transfer, lay-off, and the like. Policy with regard to medical assistance- sickness benefits, ESI and company medical benefits. Employee retention plan Developing an effective employee retention plan is crucial for organizations to retain top talent and maintain a stable workforce. Here's a comprehensive guide for creating an employee retention plan in the context of human resource planning: Conduct a Retention Analysis: ● Identify key positions and critical skills. ● Analyze turnover rates and patterns. ● Identify reasons for employee departures through exit interviews and surveys. Competitive Compensation and Benefits: ● Ensure salaries are competitive within the industry. ● Offer a comprehensive benefits package, including health insurance, retirement plans, and other perks. Career Development Opportunities: ● Implement a clear career path for employees. ● Provide training programs and continuous learning opportunities. ● Offer mentorship and coaching programs. Work-Life Balance: ● Promote a healthy work-life balance. ● Provide flexible work hours and remote work options when possible. ● Encourage the use of vacation days and time off. Recognition and Rewards: ● Establish a recognition program to acknowledge and reward achievements. ● Offer performance-based incentives. ● Celebrate milestones and anniversaries. Healthy Work Environment: ● Foster a positive workplace culture. ● Address workplace conflicts promptly. ● Encourage open communication and feedback. Employee Engagement: ● Conduct regular employee engagement surveys. ● Act on survey feedback to improve the workplace. ● Create opportunities for social interactions and team-building. Communication Strategies: ● Keep employees informed about organizational goals and changes. ● Provide regular updates on their performance and contribution. 52 | H R M ● Encourage an open-door policy for addressing concerns. Employee Assistance Programs (EAP): ● Offer EAP services to support employees' mental and emotional well-being. ● Provide resources for managing stress and work-related challenges. Retention Bonuses and Incentives: ● Consider retention bonuses for employees with specific skills or tenure. ● Design incentive programs tied to long-term commitment. Succession Planning: ● Develop a robust succession plan for key positions. ● Identify and groom potential internal candidates for leadership roles. Regular Performance Reviews: ● Conduct regular performance reviews and set clear performance expectations. ● Provide constructive feedback and development plans. Exit Interviews and Feedback Loop: ● Conduct thorough exit interviews to understand the reasons behind departures. ● Use feedback to make improvements in retention strategies. Diversity and Inclusion: ● Foster a diverse and inclusive workplace. ● Promote equal opportunities and fair treatment. Technology and Tools: ● Provide employees with the necessary tools and technology to perform their jobs efficiently. ● Invest in modern HR technology to streamline processes. Continuous Monitoring and Adjustments: ● Regularly monitor turnover rates and other key metrics. ● Adjust retention strategies based on changing organizational needs and feedback. Legal Compliance: ● Ensure all retention strategies comply with labor laws and regulations. By integrating these elements into your human resource planning, you can create a holistic employee retention plan that addresses various aspects of the employee experience and contributes to long-term organizational success. Regularly reassess and adjust the plan to adapt to changing circumstances and employee needs. Downsizing Plan Where there is surplus workforce, trimming of labor force will be necessary. Trimming or downsizing plan shall indicate the followings: 53 | H R M 1. Who is to be made redundant and where and when. 2. Plans for re-development or re-training, where this has not been cornered in the redevelopment plan; 3. Steps to be taken to help redundant employees find new jobs; 4. Policy for declaring redundancies and making redundancy payments; and 5. Program for consulting with unions or staff associations and informing those affected. Another method of dealing with surplus labor is to retain all employees but reduce the work hour (thus realize payroll savings), perhaps to a four-day, 32-hour work week. In this way a company can spread a 20 per cent decrease in demand (and in pay) equitably across the whole workforce, rather than keep 80 percent of the employees full-time and lay-off 20 per cent of them. Downsizing plans in selected firms ● ● ● ● ● ● ● ● ● ● Japan Airlines has plans to cut 4,200 jobs. Ford Motor has plans to cut 2,000 jobs initially. 20,000 jobs to go at Chrysler. P & Q has plans to reduce some 9,600 jobs. Indian Hotel Company (managing the Taj Group of Hotels) is going to cut its manpower strength by 1,100 employees. Nationalized banks together have cut as many as 90,000 jobs. Fiat India has plans to reduce its workforce by 20-25 per cent. SAIL has trimmed its workforces by cutting 19,600 jobs. Nearly 7,000 employees at Motorola will lose their jobs. 25 per cent of the jobs at Hyundai elect to be cut. Managerial succession planning Managerial succession planning is a crucial aspect of human resource management (HRM) that involves identifying and developing potential candidates to fill key leadership positions within an organization. Succession planning ensures a smooth transition of leadership and helps in maintaining organizational continuity. Here are key elements and considerations for managerial succession planning in HRM: Identification of Key Positions: ● Begin by identifying critical positions within the organization that require effective leadership. ● Focus on positions that are crucial for the organization's strategic objectives and long-term success. Talent Assessment: ● Evaluate current employees to identify individuals with high potential for leadership roles. ● Assess both current performance and future potential through methods such as performance appraisals, competency assessments, and leadership potential evaluations. Developmental Opportunities: ● Provide developmental opportunities to individuals identified as high-potential candidates. ● Offer training programs, mentorship, coaching, and job rotations to enhance their skills and prepare them for future leadership roles. Leadership Development Programs: ● Implement leadership development programs tailored to the organization's needs. 54 | H R M ● These programs can include workshops, seminars, and courses focused on leadership skills, strategic thinking, decision-making, and other competencies essential for managerial roles. Succession Planning Committee: ● Establish a succession planning committee responsible for overseeing the process. ● This committee should include key stakeholders from various departments to ensure a comprehensive approach to succession planning. Career Pathing: ● Clearly define career paths within the organization to help employees understand the progression of roles and responsibilities. ● Communicate these paths to employees and provide guidance on the skills and experiences needed for advancement. Performance Management: ● Integrate succession planning into the performance management system. ● Link performance evaluations with potential for advancement, and use this information to guide decisions about promotions and developmental opportunities. Monitoring and Adjusting: ● Regularly review and update the succession plan to align with changes in the organization's strategy, structure, or leadership needs. ● Ensure that the plan remains flexible and responsive to the evolving business environment. Communication: ● Communicate the importance of succession planning to employees at all levels. ● Transparency about the process and criteria for advancement can motivate employees to actively participate in their own career development. Emergency Succession Planning: ● Develop plans for unexpected departures of key leaders to ensure minimal disruption to operations. ● Identify backup successors and ensure they are adequately prepared to step into leadership roles if needed. Effective managerial succession planning is not a one-time event but an ongoing process that adapts to changing organizational needs. By investing in the development of future leaders, organizations can ensure a robust leadership pipeline and long-term sustainability. Human resource planning of babylon Group, Bangladesh If an organization is to achieve its goals, it needs inputs: financial resources (such as money and credit), physical resources (such as building and equipment) and the main is people. Too often, managers forget about the important third factor, the people variable is to the success of an organization. Human resource planning is one of the most important elements in a successful HRM program. Specifically, human resource planning is the process by which an organization ensures that it has the right number and the right kinds of people at the right places, at the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives. Human resource planning then translates the organization's objectives and plans in to the number of workers needed to meet these objectives. Without clear - cut planning, estimation of an organization's human resource need is reduced to mere guesswork. For manpower planning demand and supply forecast is a very 55 | H R M important element. The personal demand forecast only provides half the staffing equation by answering the question "how many employees will be needed?" Next supply must be forecasted However, before determining how many outside candidates to hire, we must forecast how many candidates for our projected job openings will come from of within our organizations from the existing ranks. Like any other garments factory, BABYLON Group determined the positions to be filled in this organization, the duties of these positions and characteristics of people who should be hired for them on the basis of industrial practices, i.e. What is being done in the similar type of firms. But the basic factor in Manpower Planning is the demand for product the company is undertaking to produce. Thus, they project the sales first. Then volume of production to meet this? sales requirements is determined. Finally, the employees need to maintain this volume of output. The organization does not prepare any formal written human resource planning. The board of directors set the monthly & annual sales target in relation to their objectives. Then each department makes an informal estimate of how many people they would require. Administration department has no function in this regard. In addition to production or sales demand, they also consider some other factors: Projected migration rate: Job turnover is termed as migration in garments sector. The management estimates about projected migration rate of the factory to decide about employee needs. Quality and nature factory of employees: Women workers are suitable for the type of work in a garments factory like BABYLON Group. There are some male workers also but the ratio of male workers is limited to only 30% of workers. According to the usual practice in the garment industry most of the workers in BABYLON Group are young. The average in female workers is 20 years and male workers are 23 years. For preferring female workers for this type of business operation, BABYLON Group has also some industry specific reasons: ● ● ● A large pool of cheap labor from this category Comparatively lower migration rate (job turnover) of female workers Greater job satisfaction level among this group. As per legal restriction on employment of children BABYLON GROUP did not employ a child below the age of eighteen. Absenteeism rates: In garment factories, the absenteeism rate of workers is very high and frequent due to their poor life structure. Epcot International estimates absenteeism rate of workers at 2.5%. Formal selection process The formal selection process in human resource management involves a series of steps designed to identify and choose the most qualified candidates for a specific job within an organization. This process aims to match the skills, qualifications, and characteristics of candidates with the requirements of the job. Here is a general overview of the formal selection process: Job Analysis: 56 | H R M ● Define the job requirements, responsibilities, and qualifications. ● Identify the skills, knowledge, and abilities necessary for success in the role. Job Posting and Recruitment: ● Advertise the job opening internally and/or externally. ● Use various recruitment channels to attract a diverse pool of candidates. Application Screening: ● Review resumes and applications to shortlist candidates. ● Eliminate those who do not meet the minimum qualifications. Initial Contact: ● Reach out to shortlisted candidates to confirm their interest and availability. ● Provide information about the organization and the job. Testing and Assessment: ● Administer relevant tests or assessments to evaluate specific skills or aptitudes. ● Examples include cognitive tests, personality assessments, or job-related skills tests. Interviewing: ● Conduct interviews to assess candidates' suitability for the job. ● Use a mix of behavioral, situational, and competency-based questions. ● Involve multiple interviewers if necessary. Background Checks: ● Verify the accuracy of the information provided by candidates. ● Check employment history, educational qualifications, and other relevant details. Reference Checks: ● Contact provided references to gather insights into the candidate's past performance and work behavior. Final Interview: ● Conduct a final interview with key decision-makers or senior management. ● Discuss any outstanding concerns and evaluate cultural fit. Job Offer: ● Extend a formal job offer to the selected candidate. ● Outline terms of employment, including salary, benefits, and other relevant details. Negotiation and Acceptance: ● Negotiate terms if necessary, such as salary, start date, or other conditions. ● Once an agreement is reached, obtain the candidate's formal acceptance. Onboarding: ● Welcome the new employee and provide orientation. ● Ensure a smooth transition into the organization. Throughout the selection process, it's essential to adhere to legal and ethical standards, treating all candidates fairly and without discrimination. Additionally, organizations may tailor this process to fit their specific needs and industry requirements. Human resource planning of an organization Human Resource Planning (HRP) is a strategic process that involves identifying an organization's current and future human resource needs, and developing plans to meet those needs. It is a crucial aspect of overall organizational planning and aims to ensure that the right people with the right skills are in the right place at the right time. Here are the key steps and considerations in human resource planning: 57 | H R M 1. Environmental Analysis: ● Internal Analysis: Assess the current workforce, skills, and capabilities within the organization. ● External Analysis: Consider factors such as economic conditions, labor market trends, technology changes, and legislative issues that may impact the workforce. 2. Forecasting Demand: ● Quantitative Methods: Use historical data, trend analysis, and statistical models to predict future workforce needs. ● Qualitative Methods: Gather insights from managers, industry experts, and employees regarding future workforce requirements. 3. Forecasting Supply: ● Evaluate the current workforce's skills, age distribution, turnover rates, and potential internal candidates for key positions. ● Consider external factors like the availability of skilled labor in the market. 4. Gap Analysis: ● Compare the forecasted demand and supply to identify gaps in the organization's workforce. ● Determine the type and magnitude of the gaps, such as skill shortages or surplus. 5. Developing Strategies: ● Recruitment and Talent Acquisition: Plan for hiring or developing the required skills through recruitment, training, or talent acquisition. ● Succession Planning: Identify and groom internal talent for key positions to ensure a smooth transition. ● Training and Development: Implement programs to enhance the skills and competencies of the existing workforce. 6. Implementation: ● Execute the strategies outlined in the planning phase. ● Monitor progress and make adjustments as needed. 7. Monitoring and Evaluation: ● Regularly assess the effectiveness of HR strategies in meeting organizational goals. ● Adjust plans based on changes in the internal and external environment. 8. Legal and Ethical Considerations: ● Ensure compliance with labor laws, regulations, and ethical standards in all HR planning activities. ● Consider diversity and inclusion in workforce planning. 9. Technology Integration: ● Leverage technology for data analytics, workforce management systems, and other tools to enhance the efficiency of the planning process. 10. Flexibility and Adaptability: 58 | H R M ● Human resource plans should be flexible enough to adapt to unforeseen changes in the business environment. 11. Communication: ● Ensure effective communication of the HR plans to all stakeholders, including employees, managers, and executives. 12. Global Considerations: ● If the organization operates globally, consider cultural, legal, and other differences in workforce planning. Effective human resource planning is an ongoing process that requires collaboration between HR professionals and other departments within the organization. It plays a critical role in aligning the workforce with the strategic goals of the organization and ensuring long-term success. Case Study-1 Finding People Who Are Passionate About What They Do Trilogy Software, Inc., of Austin. Texas, is one of the fastest growing software companies in the industry, with current earnings in the $100-million to $200-million range. It prides itself on its unique and unorthodox culture. Many of its approaches to business practice are unusual, but in Trilogy's fast-changing and highly competitive environment they seem to work. There is no dress code and employees make their own hours, often very long. They tend to socialize together (the average age is 26), both in the office's well-stocked kitchen and on company-sponsored events and trips to places like local dance clubs and retreats in Las Vegas and Hawaii. An in-house jargon has developed, and the shared history of the eightyear-old firm has taken on the status of legend. Responsibility is heavy and comes early, with a "just do it now" attitude that dispenses with long apprenticeships. New recruits are given a few weeks of intensive training, known as Trilogy University and described by participants as "more like boot camp than business school." Information is delivered as if with "a fire hose," and new employees are expected to commit their expertise and vitality to everything they do. Jeff Daniel, director of college recruiting and only 28 himself, admits the intense and unconventional firm is not the employer for everybody. But it's definitely and environment where people who are passionate about what they do can thrive." The firm employs about 700 such passionate people. Trilogy's managers know the rapid growth they seek depends on having a staff of the best people they can find, quickly gained and given broad responsibility and freedom as soon as possible. Founder and CEO Joe Liemandt says, "At a software company, people are everything. You can't build the next great software company, which is what we're trying to do here, unless you're totally committed to that. Of course, the leaders and every company say, 'People are everything.' But they don't act in it. Trilogy makes finding the rights people a companywide mission; Recruiters actively pursue the freshest if least experienced people in the job market, scouring college career fairs and computer science departments for talented overachievers with ambition and entrepreneurial instincts. Top managers conduct the first rounds of interviews, letting prospects know they will be pushed to achieve but will be well rewarded. Employees take top recruits and their significant others out on the town when they fly into Austin for the standard three-day 59 | H R M preliminary visit. A typical day might begin will grueling interviews but ends with mountain biking, Roller Blading, or laser tag. Liemandt has been known to fly out to meet and woo hot prospects who couldn't make the trip. In one recent year, Trilogy reviewed 15,000 resumes, conducted 4,000 on-campus interviews, flew 850 prospects in for interviews, and hired 262 college graduates, who account for over a third of its current employees. The cost per hire was $13,000; Jeff Daniel believes it was worth every penny. Questions: 1. Identify some of the established recruiting techniques that underlie Trilogy's unconventional approach to attracting talent. 2. What particular elements of Trilogy's culture most likely appeal to the kind of employees it seeks? How does convey those elements to job prospects? 3. Would Trilogy be an appealing employer for you? Why or why not? If not, what would it take for you to accept a job offer from Trilogy? 4. What suggestions would you make to Trilogy for improving their recruiting processes? 60 | H R M Chapter 04 Job Analysis Chapter Outline Meaning of Job Analysis-Elements of Job Analysis-Features of Job Analysis-Purpose of Job AnalysisInformation Collection for Job Analysis-Job Description -Job Specification-Uses of Job Analysis Information in Bangladesh-Steps in Job Analysis- Preliminary Considerations-Requirement of Job Analysis in Bangladesh Reviewing and Revision Job Facts-Designing a Custom-Made Job Analysis Questionnaire- Guidelines for Designing a Questionnaire-Guidelines for Conducting a Job Analysis Interview-Performance-Appraisal-Methods of Job Analysis-Benefit of Job Analysis Questions Learning Objectives After completing this chapter, you should be able to: Define job analysis. Discuss the features of job analysis State methods of job analysis information. Mention the uses of job analysis information. Identify the contents of job analysis. Discuss the job analysis procedures in Bangladesh. Job Analysis Job analysis is the process of gathering and analyzing information about the content and the human requirements of jobs, as well as the context in which jobs are performed. This process is used to determine placement of jobs. Under NU Values the decision-making in this area is shared by units and Human Resources. Specific internal approval processes will be determined by the unit's organizational leadership. 61 | H R M Job analysis defines the organization of jobs within a job family. It allows units to identify paths of job progression for employees interested in improving their opportunities for career advancement and increasing compensation. A relative value is placed on the differing factors described in the Zone Placement Matrix. All new and existing positions will be assigned to a job family and zone using the job analysis process. This process is designed to place positions into families and zones based upon assigned duties, qualifications and competencies as measured by the five criteria found in the Zone Placement Matrix. Organizational unit leaders are encouraged to consult with Human Resources for guidance at any step in the job analysis process. Job analysis is a systematic process of collecting the information on nature of a job, qualities and qualifications required to a job, physical and mental capabilities to require to a job, duties and responsibilities, physical and mental effort required to perform a job, necessary skills required to perform a job, working conditions and environment for a job, in order to describe job description and job specification, for recruitment and selection of employee, improve job satisfaction, employee safety and to build up employee motivation etc. Elements of Job Analysis Elements of job analysis refer to the key components or pieces of information that are gathered and analyzed during the job analysis process. These components include the job title, job summary, job duties, knowledge, skills, and abilities (KSAs), education and experience, physical demands, work environment, equipment used, relationships with others, and performance standards. These components provide a comprehensive understanding of the job, including its requirements, responsibilities, context, and outcomes. The components of job analysis are used to create accurate and up-to-date job descriptions and job specifications, which are important for various HR functions such as recruitment, selection, training, performance management, and compensation. The job analysis process may vary depending on the organization’s needs, but the components provide a structured framework for gathering and analyzing information about the job. 1. Job Description It is an important document. It is descriptive in nature. It is useful to identify a job for consideration by job analysis. Important questions to be answered through the job description are: • What should be done? • Why it should be done? • Where it should be done? There is no universal format of writing job descriptions. According to Ghorpade, the following information is common in most of the job descriptions. • Job title: title of the job and other identifying information such as wages, salaries, other benefits • Summary: a summary is written in one or two lines that describe what outputs are expected from job incumbents. • Equipment: a clear statement of tools, equipment, and other information required to perform job effectively. 62 | H R M • Environment: a clear description of the working conditions of the job, the location and other characteristics of work environment such as hazards, noise, temperature, cleanliness etc. • Activities: a description about the job duties, responsibilities, and expected behavior on the job. A description of social interactions associated with the job such as the size of a workgroup, interpersonal interaction on the job is made. Job analyst writes job description in consultations with the workers and supervisors. After writing draft job description, comments and criticism are invited to improve its content. The final draft is then prepared. Job description is written either by making a personal observation or using a questionnaire to collect relevant information from supervisors and workers. Job descriptions should be reviewed from time to time. 2. Job Specifications It is also known as man or employee specifications is prepared on the basis of the job specifications. It specifies the qualities required in a job incumbent for the effective performance of the job. Basic contents of a job analysis specification are as follows: • Personal characteristics such as education, job experience, age, sex, and extra cocurricular activities. • Physical characteristics such as height, weight, chest, vision, hearing, health, voice poise, and hand and foot coordination, (for specific positions only). • Mental characteristics such as general intelligence, memory, judgment, foresight, ability to concentrate, etc. • Social and psychological characteristics such as emotional ability, flexibility, manners, drive, conversational ability, interpersonal ability, attitude, values, creativity, etc. Various contents of a job analysis specification can be prescribed in three terms: • essential qualities which a person must possess • desirable qualities which a person may possess • contra-indicators which are likely to become a handicap to a successful job • performance 3. Job evaluation It is a process of determining the relative worth of a job. It is a process that is helpful even for framing compensation plans by the personnel manager. Job evaluation as a process is advantageous to a company in many ways: • Reduction in inequalities in salary structure – It is found that people and their motivation is dependent upon how well they are being paid. Therefore the main objective of job evaluation is to have external and internal consistency in salary structure so that inequalities in salaries are reduced. • Specialization – Because of the division of labor and thereby specialization, a large number of enterprises have got a hundred jobs and many employees to perform them. Therefore, an attempt should be made to define a job and thereby fix salaries for it. This is possible only through job evaluation. 63 | H R M • Helps in the selection of employees – The job evaluation information can be helpful at the time of selection of candidates. The factors that are determined for job evaluation can be taken into account while selecting the employees. • The harmonious relationship between employees and manager – Through job evaluation, harmonious and congenial relations can be maintained between employees and management so that all kinds of salary controversies can be minimized. • Standardization – The process of determining the salary differentials for different jobs become standardized through job evaluation. This helps in bringing uniformity into the salary structure. • The relevance of new jobs – Through job evaluation, one can understand the relative value of new jobs in a concern. Features of Job Analysis Job analysis is the procedure through which you determine the duties of these positions and the characteristics of the people to hire for them. The features are as follows – Work activities: Collection of information about the job’s actual work activities, such as clearing, selling, teaching, or painting. Human behaviors: The specialist may also collect information about human behavior like sensing, communicating, deciding, and writing. Machine, tools, and equipment: The category includes information regarding tools used, materials processed, knowledge dealt with or applied and services rendered. Performance standards: The employer may also want information about the job’s performance standards. Job context: Job context includes here is information about such matters as physical working conditions, work schedule, and the organizational and social context, for instance, the number of people with whom the employee would normally interact. Human requirement: This includes information regarding the job’s human requirements, such as job-related knowledge or skill and required personal attributed. Contents of Job Analysis 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 micrometers. 64 | H R M (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, coordination 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. Purpose of Job Analysis Job Analysis plays an important role in recruitment and selection, job evaluation, job designing, deciding compensation and benefits packages, performance appraisal, analyzing training and development needs, assessing the worth of a job and increasing personnel as well as organizational productivity ▪ ▪ ▪ ▪ Recruitment and Selection: Job Analysis helps in determining what kind of person is required to perform a particular job. It points out the educational qualifications, level of experience and technical, physical, emotional and personal skills required to carry out a job in desired fashion. The objective is to fit a right person at a right place. Performance Analysis: Job analysis is done to check if goals and objectives of a particular job are met or not. It helps in deciding the performance standards, evaluation criteria and individual’s output. On this basis, the overall performance of an employee is measured and he or she is appraised accordingly. Training and Development: Job Analysis can be used to assess the training and development needs of employees. The difference between the expected and actual output determines the level of training that need to be imparted to employees. It also helps in deciding the training content, tools and equipment’s to be used to conduct training and methods of training. Compensation Management: Of course, job analysis plays a vital role in deciding the pay packages and extra perks and benefits and fixed and variable incentives of employees. After all, the pay package depends on the position, job title and duties and responsibilities involved in a job. The process guides HR managers in deciding the worth of an employee for a particular job opening. 65 | H R M ▪ Job Designing and Redesigning: The main purpose of job analysis is to streamline the human efforts and get the best possible output. It helps in designing, redesigning, enriching, evaluating and also cutting back and adding the extra responsibilities in a particular job. This is done to enhance the employee satisfaction while increasing the human output. Therefore, job analysis is one of the most important functions of an HR manager or department. This helps in fitting the right kind of talent at the right place and at the right time. Information Collection for job analysis The key types of information collected during a job analysis include: 1. Job Description: Job title and department. Job summary or overview. Reporting relationships (supervisor, subordinates). Duties and tasks performed. Responsibilities and objectives. Equipment and tools used. 2. Job Specifications: Qualifications (education, experience, certifications). Skills and competencies required. Physical requirements (if applicable). Mental and emotional demands (if applicable). 3. Performance Standards: Key performance indicators (KPIs). Performance expectations. Quality and quantity standards. 4. Working Conditions: Environmental factors (e.g., temperature, noise). Work hours (e.g., shift work, overtime). Physical location (e.g., office, field, remote). 5. Relationships: Interactions with colleagues, clients, or customers. Team dynamics and collaboration. 6. Training and Development Needs: Skills or knowledge gaps. Training requirements for the job. 7. Job context: How the job fits into the organization's structure. Purpose and importance within the company. 8. Career: A career represents a sequence of positions jobs or occupations that a person has over his or her working life 9. Job History: Collecting this information helps organizations define job roles, recruit the right candidates, establish fair compensation, create effective training programs, and ensure legal compliance. The specific information collected can vary depending on the organization's needs and the complexity of the job in question. Uses of job analysis information in Bangladesh Job analysis information serves various purposes in human resource management and organizational development. Some of the key uses include: 1. Job Description and Specification: Job analysis helps in creating accurate job descriptions and specifications, outlining the tasks, responsibilities, qualifications, and skills required for a specific position. 2. Recruitment and Selection: It aids in identifying the right candidates for a job by providing a clear understanding of what the job entails. This is crucial for effective recruitment and selection processes. 3. Performance Appraisal: Job analysis data can be used to establish performance standards and expectations for employees. It provides a basis for evaluating employees' job performance. 4. Training and Development: It helps in designing training programs that address the specific skills and knowledge required for a job. This ensures that employees are adequately prepared for their roles. 66 | H R M 5. Compensation and Benefits: Job analysis information is used to determine the relative value of different jobs within an organization, which is crucial for setting fair and competitive compensation and benefits packages. 6. Workforce Planning: It supports workforce planning by identifying current and future staffing needs and aligning them with organizational goals. Steps in job analysis Steps in job analysis can be present graphically 1.Determine the purpose: The first decision human resource managers typically make is the purpose for conducting a job analysis. Has the company been experiencing rapid growth or downsizing and, thus, found the need to add to, delete from, or change the current job in any way? Has a manager taken place? Are employees’ salaries equitable analysis? The purpose for conducting a job analysis should be explicit and tied to the overall strategy of the firm in order to increase the likelihood of a successful job analysis 2. Identify the jobs: The second task managers typically undertake is deciding which jobs need to be analyzed. if a formal job analysis has never been performed, then this task is easy to analyze all of the jobs, if however, the organization has undergone any changes that have affected only certain jobs or new jobs have been added, then managers must pinpoint the exact jobs to be analyzed. Also. existing jobs that have a high turnover rate may benefit from a job analysis. the turnover rate may indicate that the job has grown too complex and may need to be modified 3. Explain the process: The purpose of conducting a job analysis should not kept from employees and managers. They should be informed of who conducting the analysis, why the job analysis is needed, whom to contact if they have questions or concerns, the schedule or timetable of events, and their role in the job analysis 4. Determine data collection method collect job analysis information: The 4th step consists of actually collecting the job formation. Managers must decide which method or combination of methods will be used and how to collect the information. Once this has been determined managers must make sure that the information collected is complete. if additional information is required for purposes of clarification, it is best to go back immediately and gather it while the job analysis issues are still salient to employees. 5. Process the information: Once the job analysis information has been collected, it is important to place it into a form that will be useful to managers and human resource departments 6. Review and update information: The final step is actually an ongoing phenomenon. Given that organizations are dynamic, jobs seldom go unchanged for very long. managers and personnel specialists need to review job descriptions and specifications frequently. Preliminary considerations for job analysis: Job Analysis is a crucial process for organizations to understand and define the various aspects of a job, including its requirements, responsibilities, and competencies. It is vital in 67 | H R M informing recruitment, training, performance management, and compensation decisions. Here are some preliminary considerations to keep in mind when conducting a job analysis: 1. Purpose and Scope: Clearly define the purpose and scope of the job analysis. Identify whether it will cover a specific role, department, or the entire organization. 2. Stakeholder Involvement: Involve key stakeholders, including managers, employees, and HR professionals, in the job analysis process. Their input is valuable in understanding the job's intricacies and ensuring accuracy. 3. Method Selection: Decide on the appropriate method(s) for job analysis. Common methods include interviews, observation, questionnaires, and task analysis. Choose a combination of methods that best suit the job and organization's context. 4. Data Collection: Gather relevant data about the job. This may include job descriptions, performance evaluations, training materials, and organizational charts. Additionally, collect qualitative data from incumbents and supervisors to gain a comprehensive understanding of the job. 5. Job Description: Develop a clear and concise job description that outlines the job title, summary, duties and responsibilities, required qualifications, and reporting relationships. This document serves as a foundation for the analysis. 6. Task Identification: Identify the core tasks and activities performed in the job and their frequency. This helps determine the job's primary focus and provides insight into the knowledge, skills, and abilities required. 7. Competency Assessment: Determine the competencies and behaviors necessary for effective job performance. These may include technical skills, problem-solving abilities, communication, teamwork, and leadership qualities. 8. Job Requirements: Evaluate the physical, mental, and emotional demands of the job, as well as any environmental conditions or hazards involved. This information is essential for ensuring appropriate candidate selection and determining any workplace accommodations needed. 9. Job Relationships: Examine how the job interacts with other positions within the organization, including supervisors, subordinates, colleagues, and external stakeholders. This analysis helps identify crucial working relationships and communication channels. 10. Documentation and Validation: Document the findings of the job analysis in a clear and organized manner. Share the analysis with relevant stakeholders for feedback and validation. This step ensures accuracy and enhances the credibility of the results. By considering these preliminary factors, organizations can conduct a comprehensive job analysis that provides a solid foundation for various HR processes and helps align job roles with organizational goals and strategies. Requirements of Job Analysis: In organizations, some requirements to be met for successful job analysis. These requirements can be fulfilled from the very beginning by the top management. The entire requirements are of three main categories. These are discussed in the following pages: 1.Formulating the job analysis program: Formulating the job analysis program and developing a budget require that those involved in analysis activities give intense thought to 68 | H R M what must be done. In developing an action plan, specific activities and methodologies will be identified. The following four planning steps are helpful in performing a successful job analysis; a) Determine the organizational use of job content and other related date. b) Learn about the structure, operations, and jobs of the organization. (c) Identify and select methods for collecting job content data and other related facts. d) Schedule the necessary and logical work steps. 2. Gaining employee acceptance and cooperation: To help the analyst gain acceptance in the workplace. The manager in the particular job area should introduce the analyst to the workplace supervisor and the incumbent and request one of them to take the analyst on a tour of the work area. Positive acceptance depends on the worker's trust in the motives of the analyst. 3. Collecting and describing job data: This situation has led to considerable misunderstanding, which is a problem not only for the newcomer trying to develop skills in this area, but also for experienced practitioners, consultants and researchers. To establish a sound basis for understanding the processes and methods developed in this topic commonly used words are as follow: a) Activity b) Major activity or responsibility c) Function d) Element e) Task f) Duty g) Essential job function h) Competency Methods of Job Analysis These methods may be used by any organization for analyzing job. But all the methods a not used in an organization. It depends on the specific organization. The different methods exist that may be used individually or in combination are as follows: 1. Review: Under this method, employee clarified jobs are reviewed. The purpose is to ensure that classification is done properly. If it is seen that classification has not been made properly, the analyst provides suggestions to the management to do appropriate in future. 2. Expert panels: Experts on different jobs are dependable source of information related to jobs. Under this method of job analysis, a panel of experts is preferred and interviewed whenever necessary. Their opinion may help the analyst to analyze jobs correctly. 3. Task inventories: In an organization a number of tasks is performed. These tics are listed under this method of job analyses. The analyst may select tome important and representative tasks for analysis. This can save money, times and effort. 69 | H R M 4. Checklist: Under this method of job analyses some characteristics or criteria selected and a checklist is prepared. After that these characteristics may be distributed points depending on the degree of selected employees. Only common characteristics are given points. 5.Open-ended question: This is another accepted method of job analyses. In this method, some questions are set and respondent employees are asked to respond multi-dimensional responses come in this method and these tabulation and analyses become difficult on the part of analyst. 6. Incumbent work logs: This is the last method of job analysis. Employees work logs are collected and necessary information are taken from the log analysis. Analyst should be properly trained up for using this method successfully. The information available in the logbook is dependable and can dealt, be with confidence. 7. Individual interview method: The individual interview method assembles a team of job incumbents for extensive individual interviews. The results of these interviews are combined into a single job analysis. 8. Group interview: The group interview method is similar to the individual interview method except that job incumbents are interviewed simultaneously. 9. Structured question method: A specifically designed questionnaire on which employees rate tasks they perform in their jobs. 10. Observation method: A job analysis technique in which date is gathered by watching employees work directly or review films of workers on the job. The observation method provides firsthand information. 11. Diary method: A job analysis method requiring job incumbents to record their daily activities. 12. Technical conference method: A job analysis technique that involves extensive input from the employee's supervisor. The method that you may use in Job Analysis will depend on practical concerns such as type of job, number of jobs, number of incumbents, and location of jobs. Areas for Collecting Job Analysis Information Job Analysis should collect information from the following areas: 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. 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 odors and temperature extremes. There may also be definite risks to the incumbent such as noxious fumes, radioactive substances, hostile and aggressive people, and dangerous explosives. 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 a Job Analysis. Relationships: Supervision given and received. Relationships with internal or external people may be of image help. 70 | H R M Requirements: The knowledge, skills, and abilities (KSA's) required performing the job. While an incumbent may have higher KSA's than those required for the job. A Job Analysis typically only states the minimum requirements to perform the job. Here is what we offer to our clients: For our successful job analysis in the organizations in Bangladesh we can offer the following things to be used, these offers can be classified into eight categories. These are as follows: 1. Third party survey administration to ensure employee confidentiality and anonymity 2. A team of professionals with a wealth of HR experience to work you throw the complete employee survey process. 3. A comprehensive employee survey report offering policy options, best practices and program alternatives. 4. An employees survey product customized with your input and designed for your business. 5. Comprehensive data to allow benchmarking. 6. Feedback sessions to explain and interpret the survey results. 7. Superior customer service 8. Quick turnaround time of employee survey results. Benefits of Job Analysis: Some major benefits can be accrued to the human resource management as well as organization and employees through job analysis. These benefits are following major categories. Of course, may vary from one organization to another organization 1. 2. 3. 4. 5. 6. 7. 8. 9. 71 | H R M Reduces turnover Identifies organization-wide strengths Identifies organization-wide issues and solicits ideas for collective action Gathers objective data from which management may develop a meaningful dialogue. Established benchmark data to evaluate future improvements. Comments executives to process that brings them to employees Provides Employees with a state in their employer’s success. Attracts job candidates. Helps to align compensation and benefits program to more effectively meet the needs of both employees and Management. A case study A Trading assistant's job: Based on view of that what is happening in Fortunate Financial Service Limited (FFSL). Mr. Rahman, the branch manager of corporate office concluded that one of the first things he had to attend involved in developing job analysis for his online trading assistants. The daily turnover of the FFSL's branch in the area has been going UP steadily in the recent times. Thanks to the stock market Agiotage in January 2016. It has reached an all-time high of 69 crores. To in cash opportunities presented by the FFSL had recruited 5 additional assistants, all young graduates with cover 2-year experience in stock market operations taking total number of assistants to 12. Two supervisors have also been appointed about 6 months back to oversee trading arrangements and back-office operations. The branch allows trading in stock belonging to Dhaka Stock Exchange and Chittagong Stock Exchange. Each assistant had to look after the recruitment of more than 30 clients on daily basis. In recent times face the number of problems on settlement day. The Problems discussed with the management: • • Clearly define the role and responsibility of trading assistant and supervisors Assess the net worth of a client carefully before enrolling him as a member. Set trading limits clearly and circulates these to assistant daily. • On the settlement day ask the client to pay or square up • Collect amount from clients on a daily basis whenever they exceed limits. • Make the entire group responsible, whenever they alert clients to exceeds limits. The question is, how we can conduct the job analysis in the above case? 72 | H R M Chapter 05 Human Resource Planning Chapter Outline Introduction-Job Description-Features of Job Description-Aspects of Job-Information used in Describing Jobs-Ways of Describing Job Facts-Guidelines for Job Description- Meaning of Job Specification-Qualities of an Employee for Job. Specification in Bangladesh-Job Description and Job Specification Practices-Clinical Research-Radio Jobs-Television Jobs Questions. Learning Objectives After completing this chapter, you should be able to: Define job description. State the elements/forces of job description. Identify the aspects of job description. State the guidelines of job description. Know the meaning of job specification. Know the qualities of an employee for job specification. State job description practices in the organization. Meaning of Job Description One of the most important outputs of job analysis is the job description. The job description comes in a wide variety of forms, but whatever the form. it attempts to provide what its title states-statements of facts that describe the job. In most cases, however, job analysis data are revived, edited and then formative into the job description. A job description is a written statement of what the jobholder does, how it is done, and why it is done. It should accurately portray job content, environment and conditions of employment. A common format for a job description includes the job title, the duties to be distinguishing characteristics of the job, and 73 | H R M the authority and responsibilities of the description as follows: jobholder. Many authors have defined job 1. According to Gary Dessler: Job description is a list of a job duties, responsibilities, reporting relationships, working conditions, and supervisory responsibilities. 2. DeCenzo and Robbins have defined, “A job description is a written statement a what the job holder does, how it is done, under what conditions it is done and conditions of employment. It should accurately portray job content, environment and conditions of employment". 3. Edwin B. Flippo has defined, "A job description is an organized, factual statement of the duties and responsibilities of specific job. In brief it should tell what is to be done, How it is done, and why it is done? A job description is a written statement of what the job holder actually does, how he or she does it, and under what conditions the job is performed. This information is in turn used to write a job specification that lists the knowledge, abilities, and skills needed to perform the job satisfactorily. Features of Job Description There are some features of job description. The presence of these features makes the job description program a success. On the other hand, absence of these features job description program may not serve its purpose as per desire. Therefore, the person concerned should be very careful in describing jobs. Some important features are listed below: 1. Title of job 2. Alternative title 3. Name of the department 4. Name of the sub department 5. Name of the branch 6. Brief description of work 7. Limitations of jobs responsibilities 8. Training activities 9. Relationship between jobs 10. Supervisory facilities 11. Working conditions 12. Concept about the jobs 13. Physical and mental abilities 14. Remuneration 15. Methods of job comparison. Aspects of Job Description Before learning how to write a job description, it is crucial to understand the meanings and differences of the following six words: 1. 2. 3. 4. 5. 6. Position Job Class Class-series Family Occupation Steps of Job Description There is no standard format we use in writing a job description, but most normal descriptions contain sections on: 74 | H R M 1. 2. 3. 4. 5. 6. 7. 8. Job identification Job summary Relationships Responsibilities and duties Authority Standard of performance Working conditions Accountability. These points are briefly discussed below: 1. Job identification: The job identification section contains several types of information. These are summarized as follows: a) The job title specifies the title of the job, such as supervisor of data processing operations, sales manager, or inventory control clerk. It lists titles for thousands of jobs. b) The job status section permits quick identification of the exempt or nonexempt status of the jobs. c) The job code permits easy referencing of all jobs. Each job in the organization Should be identified with a code; these codes represent important characteristics of the job, such as the wage class to which it belongs. d) The date refers to the date of the job description which was actually written. e) Written by indicating the person who wrote it. f) There is also space to indicate who approved the description and a space that shows the location of the job in term of its plants/division and department/section. g) The immediate supervisor's title is also shown in the identification section as is information regarding the job's salary and/or pay scale. h) The such a space grade/level indicates the grade or level of the job if there is category, for example, affirm may classify programmers as programmer Il programmer Ill and so on. i) Finally, the pay range space provides for the specific pay or pay range of the job 2. Job summary: The job summary describes the general nature of the job, listing only its major functions or activities. Thus, the supervisor of data processing "directs the operation of all data processing, data control, and data preparation requirements". For the job of material manager, the summary might state that the materials manager purchases economically, regulates deliveries of, stores and distributes all material necessary on the production line". 3. Relationships: The relationships statement shows the jobholder's relationship with others inside and outside the organization. 4. Responsibilities and duties: This section presents a detailed list of the job's actual responsibilities and duties. Each of the job's major duties should be listed separately, and described in a few sentences. For instance, they select duty, trains, and develop subordinate personnel defined further. Typical duties for other jobs might include maintaining balanced and controlled inventories, making accurate postings to accounts payable, maintaining favorable purchase price variances and repairing production Iine tools and equipment. 5. Authority: This section defines the limits of the jobholder' s authority., including his or her decision-making authority, direct supervision of other personnel and budgetary limitations. 6. Standard of performance: Some job descriptions also contain standards of performance section. This state the standards of the employee, which is expected to achieve in each of the job description's main duties and responsibilities. 75 | H R M 7. Working conditions and physical environment: The job description will also list the general working conditions involved in the job. These might include things like noise level, hazardous conditions or heat. 8. Accountability: The accountability section of a job description briefly describes the major results achieve with the satisfactory performance. It acts as a guide for the goal setting process that intergrades job requirements with job holder contribution. Planning, Operations and Control The following are instruments for setting performance standard of the job description: 1. a) b) c) d) e) 2. a) b) c) d) 3. a) b) c) Planning: It includes some elements are as follows: Organization design Staffing levels Career ladders and career path Job design Pay system design Operations: It includes the following aspects: Recruiting and screening Hiring, placement and orientation Development procedure Training and development Control: It includes the components are as follows: Performance standards Legal requirements Collective bargaining. Information Used in Describing Jobs Although it does not often appear, a section entitled conditions of employment may be added to a job description. a) b) c) d) Conditions of employment Environmental condition Reasonable accommodation Comparing conditions of employment Ways of Describing Job Facts There are some ways of describing jobs in the organizational enterprises in Bangladesh. These ways can be discussed below: 1. Position description: Under this method, positions of employees are described and their activities are identified. Executives who are placed at the higher positions and employees who are placed at the lower position are also identified. 2. Class Description: Under the way different hierarchies are described. By this description, the higher positions and their duties/responsibilities. Resorting this way, the describer also identifies similarly lower positions. 3. Standing operating procedures: What types of operations are going on in the organization can be described with this way. Among these operations a limited number of operational procedures are identified as standards. Guidelines for Job Description 76 | H R M D. J. Cherrington has identified six guidelines for job description. These are also known hints for job description. If all these guidelines are followed, job description may be concluded successfully. These guidelines are shortly discussed below: 1. 2. 3. 4. 5. 6. Be clear Indicate scope Be specific Show supervisory responsibilities Be brief Recheck Meaning of Job Specification The specification takes the job description and answers the question, what human traits and experience are required to do this job well. It shows what kind of person to recruit and for what qualities that person should be tested. The job specification may be a separate section on the job description or a separate document entirely; often it is presented on the back of the job description. The following authors have defined Job specification: 1. DeCenzo and Robbins: "The job specification states the minimum acceptable human qualifications that the incumbent must possess to perform the job successfully" 2. According to Edwin B. Flippo: "A job specification is a statement of minimum acceptable human qualities necessary to perform a job properly". 3. M. Ataur Rahman: "Job specification is set of physical and mental qualities and skills and experience of an employee which are required for the performance of assignments for the satisfaction of organization and individuals". 4. Centro: "Job specification is defined as the characteristics of the individual who should be hired to perform a specific task or job" The section on job specifications provides information to determine the worth of a job. physical emotional conditions under which the incumbent must work. The design of the This section defines the knowledge and skills demands make on the incumbent and the job specification section and the information it provides relates to the kind of job of the job descriptions when an organization uses a compassable factor-based job evaluation plan. Job Description and Job Specification Practices 1. Position: Software Developer Job Description: A software developer is responsible for designing, coding, and testing software applications. They collaborate with the development team to create high-quality, efficient code that meets project requirements. Job Specification: Bachelor's degree in computer science or a related field. Proficiency in programming languages such as Java, Python, or C++. Strong problem-solving and analytical skills. Knowledge of software development methodologies. Excellent communication and teamwork skills. 2. Position: Registered Nurse Job Description: 77 | H R M A registered nurse provides patient care, administers medications, and assists with medical procedures. They monitor patients' conditions, collaborate with doctors, and ensure a high standard of healthcare. Job Specification: Bachelor of Science in Nursing (BSN) or Associate Degree in Nursing (ADN). State nursing license. Strong clinical skills and knowledge of medical procedures. Compassion and excellent communication skills. Ability to work in a fast-paced and high-stress environment. 3. Position: Marketing Manager Job Description: A marketing manager develops and implements marketing strategies to promote products or services. They oversee marketing campaigns, analyze market trends, and manage a marketing team. Job Specification: Bachelor's degree in marketing, business, or a related field. Proven experience in marketing and team leadership. Strong analytical and strategic thinking skills. Excellent communication and negotiation abilities. Proficiency in digital marketing tools and techniques. 4. Position: Financial Analyst Job Description: A financial analyst evaluates financial data, prepares reports, and makes recommendations for investment decisions. They analyze market trends, assess risk, and help organizations make sound financial choices. Job Specification: Bachelor's degree in finance, economics, or a related field. Strong quantitative and analytical skills. Proficiency in financial modeling and data analysis. Attention to detail and accuracy. Knowledge of financial software and tools. 5. Position: Elementary School Teacher Job Description: An elementary school teacher educates young students in various subjects, including mathematics, language arts, and science. They create lesson plans, assess student progress, and foster a positive learning environment. Job Specification: Bachelor's degree in education or a relevant field. Teaching certification. Patience, creativity, and strong classroom management skills. Effective communication and interpersonal abilities. Knowledge of curriculum development and student assessment. 6. Position: Human Resources Specialist Job Description: A human resources specialist handles various HR functions, such as recruitment, employee relations, and benefits administration. They assist in maintaining a productive and harmonious work environment Job Specification: Bachelor's degree in human resources or a related field. Knowledge of employment laws and regulations. Strong interpersonal and problem-solving skills. Ability to maintain confidentiality and handle sensitive information. Proficiency in HR software and tools. 7. Position: Graphic Designer 78 | H R M Job Description: A graphic designer creates visual content for print and digital media. They develop graphics, layouts, and branding materials, ensuring they align with the organization's brand identity. Job Specification: Bachelor's degree in graphic design or a related field. Proficiency in graphic design software (e.g., Adobe Creative Suite). Creativity and strong visual communication skills. Attention to detail and the ability to meet deadlines. Knowledge of design principles and trends. 8. Position: Sales Representative Job Description: A sales representative promotes and sells products or services to customers. They identify potential leads, build client relationships, and meet or exceed sales targets. Job Specification: High school diploma or equivalent (some positions may require a bachelor's degree). Strong sales and negotiation skills. Excellent communication and interpersonal abilities. Goaloriented and self-motivated. Knowledge of the product or service being sold. 9. Position: Mechanical Engineer Job Description: A mechanical engineer designs, tests, and develops mechanical systems and products. They collaborate with multidisciplinary teams to create innovative solutions. Job Specification: Bachelor's degree in mechanical engineering or a related field. Proficiency in CAD software and engineering principles. Strong problem-solving and analytical skills. Ability to work in a team and communicate technical concepts. Knowledge of industry standards and regulations. 10. Position: Customer Service Representative Job Description: A customer service representative assists customers with inquiries, issues, and product support. They provide excellent service, resolve complaints, and maintain a positive customer experience. Job Specification: High school diploma or equivalent (some positions may require a bachelor's degree). Strong communication and problem-solving skills. Patience and empathy when dealing with customers. Proficiency in customer service software and tools. Ability to handle high call volumes and stressful situations. 11. Position: Project Manager Job Description: A project manager oversees and coordinates projects from initiation to completion. They set goals, allocate resources, and ensure that projects are delivered on time and within budget. Job Specification: Bachelor's degree in project management or a related field. PMP (Project Management Professional) certification is a plus. Strong leadership and organizational skills. Effective communication and negotiation abilities. Proficiency in project management software. 12. Position: Data Analyst Job Description: 79 | H R M A data analyst collects, analyzes, and interprets data to help organizations make informed decisions. They use statistical techniques and data visualization tools to present findings. Job Specification: Bachelor's degree in data science, statistics, or a related field. Proficiency in data analysis tools like Excel, R, or Python. Strong analytical and problem-solving skills. Attention to detail and accuracy. Excellent communication and data presentation abilities. 13. Position: Electrician Job Description: An electrician installs, maintains, and repairs electrical systems and equipment. They follow safety guidelines and adhere to electrical codes and regulations. Job Specification: Vocational training or an apprenticeship program. State electrician's license. Strong technical skills and knowledge of electrical systems. Safety-conscious and attention to detail. Physical stamina and dexterity. 14. Position: Social Media Manager Job Description: A social media manager is responsible for creating and executing social media strategies. They manage social media accounts, create content, and engage with the online community. Job Specification: Bachelor's degree in marketing, communications, or a related field. Proficiency in social media platforms and analytics. Creative content creation and marketing skills. Strong writing and communication skills. Knowledge of social media trends and best practices 15. Position: Restaurant Manager Job Description: A restaurant manager oversees daily operations, including staff management, customer service, and inventory control. They ensure the restaurant runs efficiently and maintains highquality service. Job Specification: Bachelor's degree in hospitality or a related field (or equivalent experience). Proven experience in the restaurant industry. Leadership and interpersonal skills. Ability to handle high-pressure situations. Knowledge of food safety regulations. 16. Position: Environmental Scientist Job Description: An environmental scientist studies and analyzes the environment and its impact on human health and ecosystems. They conduct research, collect samples, and assess environmental data. Job Specification: Bachelor's degree in environmental science or a related field. Strong research and data analysis skills. Knowledge of environmental regulations and impact assessments. Excellent written and oral communication. 17. Position: Accountant Job Description: An accountant prepares and maintains financial records, analyzes financial data, and ensures compliance with accounting standards. They assist in budgeting and financial reporting Job Specification: 80 | H R M Bachelor's degree in accounting or finance. CPA (Certified Public Accountant) or similar certification is a plus. Strong mathematical and analytical skills. Attention to detail and accuracy. Knowledge of accounting software and regulations. 18. Position: Graphic Design Intern Job Description: A graphic design intern assists the design team in creating visual content and gaining practical experience in graphic design techniques and tools Job Specification: Pursuing a degree in graphic design or a related field. Basic knowledge of graphic design software. Creativity and a passion for design. Strong communication and teamwork skills. Willingness to learn and take direction. 19. Position: Security Officer Job Description: A security officer monitors and enforces security measures to protect people and property. They patrol areas, screen visitors, and respond to security incidents. Job Specification: High school diploma or equivalent. Training in security procedures and protocols. Strong observation and problem-solving skills. Excellent communication and conflict resolution abilities. Physical fitness and the ability to work various shifts. 20. Position: Content Writer Job Description: A content writer creates written content for websites, blogs, and marketing materials. They conduct research, write engaging content, and adhere to SEO guidelines. Job Specification: Bachelor's degree in English, journalism, or a related field. Strong writing and editing skills. Research and SEO knowledge. Creativity and ability to meet deadlines. Portfolio of writing samples. 21. Position: Production Supervisor Job Description: A production supervisor oversees the manufacturing process, ensuring that production targets are met. They manage production staff, monitor equipment, and maintain a safe and efficient production environment. Job Specification: Bachelor's degree in industrial engineering or a related field (or equivalent experience). Proven experience in production or manufacturing. Strong leadership and problem-solving skills. Knowledge of production processes and quality control. Understanding of safety regulations. 22. Position: Quality Control Inspector Job Description: A quality control inspector examines products and materials to ensure they meet quality standards and specifications. They identify defects and work to improve product quality. Job Specification: 81 | H R M High school diploma or equivalent (some positions may require a technical degree). Strong attention to detail and keen observation skills. Knowledge of quality control techniques and tools. Ability to use measurement instruments. Communication and reporting skills. 23. Position: Machine Operator Job Description: A machine operator operates machinery and equipment in the production process. They monitor machine performance, perform routine maintenance, and troubleshoot issues. Job Specification: High school diploma or equivalent. Training in machine operation and safety. Mechanical aptitude and technical skills. Ability to follow instructions and work with precision. Physical stamina and attention to detail. 24. Position: Materials Manager Job Description: A materials manager oversees the procurement and management of materials, ensuring the production process has the necessary resources. They optimize inventory levels and supplier relationships. Job Specification: Bachelor's degree in supply chain management or a related field. Proven experience in materials management. Analytical and negotiation skills. Knowledge of inventory control and procurement strategies. Familiarity with supply chain software. 25. Position: Production Planner Job Description: A production planner schedules production activities, coordinates resources, and ensures efficient workflow. They work to meet production targets while minimizing waste. Job Specification: Bachelor's degree in operations management or a related field. Strong organizational and time-management skills. Analytical and problem-solving abilities. Knowledge of production planning software and lean principles. Effective communication and teamwork skills. 26. Position: Maintenance Technician Job Description: A maintenance technician performs routine maintenance and repairs on machinery and equipment in the production facility. They ensure that all equipment runs smoothly. Job Specification: Vocational training or certification in maintenance. Technical skills in electrical, mechanical, or HVAC systems. Troubleshooting and problem-solving abilities. Attention to detail and safety consciousness. Ability to work independently and in a team. 27. Position: Production Engineer Job Description: A production engineer optimizes production processes, designs workflows, and implements improvements to increase efficiency and product quality. Job Specification: Bachelor's degree in industrial engineering or a related field. Strong problem-solving and process optimization skills. Knowledge of Lean Manufacturing principles. Proficiency in CAD software and production analysis tools. Communication and project management skills. 82 | H R M 28. Position: Assembly Line Worker Job Description: An assembly line worker is responsible for assembling and inspecting products on a production line. They follow assembly instructions, maintain production speed, and ensure product quality. Job Specification: High school diploma or equivalent. Manual dexterity and attention to detail. Ability to work in a repetitive assembly environment. Teamwork and communication skills. Willingness to follow safety guidelines. 29. Position: Warehouse Manager Job Description: A warehouse manager oversees the storage and distribution of raw materials and finished products. They manage warehouse staff, maintain inventory accuracy, and ensure efficient logistics. Job Specification: Bachelor's degree in logistics, supply chain management, or a related field. Proven experience in warehouse management. Strong leadership and organizational skills. Knowledge of warehouse software and inventory control. Ability to optimize logistics and distribution. 30. Position: CNC Machinist Job Description: A CNC (Computer Numerical Control) machinist operates and sets up CNC machines to produce precision parts and components. They read blueprints and ensure accurate machining. Job Specification: Vocational training or certification in CNC machining. Proficiency in CNC programming and operation. Mechanical and technical skills. Ability to interpret technical drawings. Attention to detail and quality control. Case Study-1 THE BRAZILIAN SUBSIDIARY A large,well-known Canadian company had fully depreciated the equipment used to make specialized automobile components for North American automobile producers. Although the equipment had been well-maintained and worked well, it required considerable hands- on labor to use. The result was high labor costs that made the company's brake assemblies, axle mounts, and related products unprofitable. A decision was made to replace the equipment with 83 | H R M more highly automated, numerically-controlled machine tools. Since the economic value of the old equipment exceeded it value as scrap, the equipment was shipped to the company's Brazilian operations where labor costs were considerably lower. Upon arrival and set up of a new facility, the company received numerous profitable orders from Brazil's rapidly growing áutomobile industry. Though the labor hours per product remained about the labor hours per product remained about the same, the lower Brazilian labor rates allowed the new facility to be profitable. Soon a second shift. was added, and problems began. The equipment experienced growing “downtime” because of machine failures. Quality- particularly on part dimensions- declined dramatically. At a staff meeting the Brazilian plant manager met with his staff, including several industrial engineers who had been trained in Canada and the United States. The engineers argued that the problems were almost certainly caused by maintenance since the machinery had worked well in Canada and initially in Brazil. The HR director agreed that maintenance on the old machinery was probably involved, but also noted that may of the“on-machine” instructions and maintenance manuals had not been translated into Portuguese. He also observed that the problems began after the second shift was hired. Questions: 1. From the discussion of job-analysis information and job design in this chapter, what actions would you recommend to the HR department? 2. Given the problems associated with the second shift, what difference would you look for between first-shift and second-shift workers? 3. Since the Canadian workers had considerable experience with the equipment and the workers (particularly on the second shift) in Brazil had little, what implications do you see for job design? Source: K Aswathappa, “Human Resource and Personnel Management”,Delhi. 3 A Case Study 2 ENRICHING JOBS AT STANDARD DECOY Standard Decoy in Witchell, Maine, has been making traditional wooden hunting decoys since 1927.Cyrus Witchell began the business by carving a couple of ducks a day by hand. Demand and competition have long since driven the company to use modern machinery and assembly line techniques, and they now turn out two hundred ducks daily even on the slowest days. When Steward Alcom, Cyrus Witchell's grandson, took over the business, he knew things needed to change. Output had not fallen, and the company was surviving financially despite competition from what he called “plastic ducks” form the Far East. But Alcom noticed that the productivity per worker had stayed the same for ten years, even during the period since the company had bought the last equipment. While touring the plant, he noticed many employees yawning, and he found himself doing the same. No one quit. No one complained. They all gave him a smile when he walked by. But no one seemed extend with the work. Alcom decided to undertake a survey. He appointed a respected worker at each step in the production process to ask each of his or her co-worker’s questions and to fil in response sheets. One conclusion emerged from the survey. The "fine-tuners" as Alcom thought of them, 84 | H R M were the most content ones. That is, those who used fine tools and brushes to get the ducks' heads, expressions, and feathers just right seemed to enjoy their work most. In contrast, the people who planned and cut the wood into blocks, rough-cut the body shapes, spray-painted the body color, and applied the varnish were all pretty bored. Alcom had heard about a technique called "Job rotation’ “and decided to try it out. He gave all workers a taste of the “fun” jobs. He asked for volunteers to exchange jobs for one morning a week. The fine-tuners were skeptical, and the other workers were only slightly more enthusiastic. The whole programmed fund out to be a disaster. Even with guidance, the planers and the spray-painters could not master the higher-precision techniques, and the finetuners seemed to give them only limited assistance. After one trial week, Alcom gave up. During a lunch break that Friday, Alcom was wandering outside around the plant bemoaning his failure. Then he noticed one of the rough cutters, Al Price, whiting at something with an ordinary. pocket knife. It turned out to be a block of wood that he had cut incorrectly and normally would have thrown in the scrap heap. But as Price said “it kinds of looked like a duck, in an odd way." And he had started whiting on it in spare moments. Alcom liked what he saw and asked Priced if they would be willing to sell him the duck when he got through with it. Price looked surprised, but he agreed. The following week, Alcom noticed that Price had finished the whiting and was getting one of the fine-tuners to help him paint the duck in a way that made it look even odder. When it was finished Alcom offered it to one of his regular customers, who took a look at it and said, “you’ve got this handmade?" and asked if he could order a gross. By the middle of the next month, Alcom's Odd Ducks’ program was in full swing. Workers were still responsible for producing the usual number of conventional ducks, but they were allowed to use company tools and materials any time they wanted to work on their own projects. There were no quotas or expectations for the Odd Ducks. Some employees worked on for weeks. Others collaborated and produced one or two a day. Some wouldn't sell their ducks but created them to practice their skills and brought them home to display on their mantels. Those who would sell them kept half the selling price. That price usually did not amount of more than their regular hourly wage, but no one seemed to care about the precise amount of income. The response to the Odd Duck program was so great that Alcom put up a bulletin board he called “Odd Letters”, as a place to post appreciative notes from customers. Most of the customers, it seemed, had no interest in hunting but just liked to have the ducks around. And when Alcom learned that some of his customers were in turn selling the ducks as “Cyrus Witchell’s Olde Time Odd Ducks,” he did not complain. Questions: 1. How did the “Odd Ducks” program enrich the jobs at Standard Decoy? 2. What motivated workers to participate in marking the Odd Ducks? Source: K Aswathappa,“Human Resource and Personnel Management”, Delhi Case Study 85 | H R M LORENZO AND TEXAS AIR Frank Lorenzo battled to keep his airline safe in the air and financially viable. Lorenzo faced intense competition on most route systems severe problems with Eastern’s strong unions and poor image. Texas Air typified the upheaval and change that can occur in a firm as it battles to meet new challenge. The now defunct Texas Air formed as a result of Frank Lorenzo taking a fairly small airline, Texas international, to the big time through a series of aggressive mergers and acquisitions during the mid- 198Os. Lorenzo acquired Continental, People Express, Eastern, and Jet Capital Corporation (a holding company) as a result of deregulated environment for air transport. Fares and routes were deregulated and thrown open to competition. The result was drastic cuts in air fares, increases in air—passenger traffic and routes, intense competition among carriers, and the creation of many new airlines. In addition, large airlines have attempted to become larger in the market place in order to have the power to acquire turning gates, agreements with travel agents, and stronger promotion. Aggressive promotion techniques, such as frequent flyer programs, have proliferated throughout the industry. Questions: 1. What parts of external environment change the most for Texas Air? How did they change? 2. How would you judge whether Texas Air new HR policies under deregulation were effective? What crieteria would you use and Why? 86 | H R M CHAPTER 6 Recruitment of Human Resources Definition: Recruitment is the basis of searching for prospective employees and stimulating them to apply for job in the organization. Recruitment in HRM is a systematic process for Hiring Talent. It starts from identifying, attracting, screening, short-listing interviewing, selecting and finally hiring the most potential candidate for filling up the vacant job vacancies in an organization. Recruitment actually means a way to search the future employees of the organization and stimulate qualified people to apply for the job. It helps to create a pool of job seekers and improve the scope of recruitment of better employee. Recruitment activity brings together the people who are qualified and looking for job and the organizations which are searching for prospect employees. The properly executed recruitment process leads to joining and selection of suitable manpower in the organization. Recruitment Definition by eminent Authors. Here are some popular definitions of recruitment given by eminent authors: Dr. Ataur Rahman, “Recruitment is a process of accumulation of human resources for the vacant positions of the organization. It is an initial step of the system. It includes requisition of manpower and at last submission of the application by the job seeker. Edwin Flippo, “Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization”. DeCenzo and Robbins, “It is the process to discover potential candidates for future actual or anticipated job vacancies. Another perspective is that it is a linking activity which brings together organizations those with jobs to fill and people those are seeking jobs”. Plumbley, “It is a process to match the capacities of candidates with the demands of the organization. The inclination of qualified candidates should also match with the rewards and benefits the organizations are willing to provide in the job”. Dale Yoder, “Recruitment is a process to discover the sources of manpower to meet the requirement of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient working force”. Kempner, “Recruitment is identified as a first step of the process which persists with selection and ends with the joining of the suitable candidate in the organization”. Joseph J. Famularo, “However, the act of hiring a man carries with it the presumption that he will stay with the company-that sooner or later his ability to perform his work, his capacity for job growth, and his ability to get along in the group in which he works will become matters of first importance”. Recruitment means searching finding and recruiting the best talent for an open job vacancy within the organization in specific time and cost. In any business organization, employees are always considered to be their biggest asset and People Management is the most important function managed by their HRM Department. The primary job of Human Resource Management (HRM) Team is to keep building the pool of Human Capital for the organization which can result into selection of right candidate for right job. Recruitment aims for choosing and hiring the right the person for the right Job at the right time. The Human Resource 87 | H R M Management Department often considers two major sources of recruitment namely internal and external source of recruitment. The purpose of recruitment process is to gather information about the talented and qualified individuals who might be interested to work for the organization in an effective way. From the above discussion we can say that the recruitment is the process of identifying and attracting the qualified people to fill vacant position in an organization. Recruitment is defined as a process of discovering reliable sources of contacting desirable employees which meets the staffing requirements of the organization. Through recruitment process the organization can attract the adequate number of manpower to facilitate the effective selection process and joining of efficient work force. Sources of Recruitment The searching of suitable candidates and informing them about the openings in the enterprise is the most important aspect of recruitment process. The candidates may be available inside or outside the organization. Basically, there are five sources of recruitment such as: 1.Internal Sources. 2.External Sources. 3.Employee Referrals/Recommendations. 4.Alternatives to Recruitment. 5.Cyberspace Recruiting. Here we discuss about most two important sources in details as follows. Internal Sources: Internal Sources Best employees can be found within the organization. When a vacancy arises in the organization, it may be given to an employee who is already on the pay-roll. Internal sources include promotion, transfer and in certain cases demotion. When a higher post is given to a deserving employee, it motivates all other employees of the organization to work hard. The employees can be informed of such a vacancy by internal advertisement. Methods of Internal Sources The Internal Sources are Given Below: 1. Transfers: Transfer involves shifting of persons from present jobs to other similar jobs. These do not involve any change in rank, responsibility or prestige. The numbers of persons do not increase with transfers. 2. Promotions: Promotions refer to shifting of persons to positions carrying better prestige, higher responsibilities and more pay. The higher positions falling vacant may be filled up from within the organization. A promotion does not increase the number of persons in the organization. A person going to get a higher position will vacate his present position. Promotion will motivate employees to improve their performance so that they can also get promotion. 3. Present Employees: The present employees of a concern are informed about likely vacant positions. The employees recommend their relations or persons intimately known to them. Management is relieved of looking out prospective candidates. The persons recommended by the employees may be generally suitable for the jobs because they know the requirements of various positions. The existing employees take full responsibility of those recommended by them and also ensure of their proper behavior and performance. 88 | H R M Advantages of internal sources: There are many advantages of internal sources, some are given below, 1. Reduce risk of bad hiring Internal recruiting can save you for at least you know your candidate from before. You know how hardworking they are if they can handle the pressure of the new position. Trusting someone you know is better than trusting a stranger. 2. Boost employee morale: When you consider assigning the existing employee’s heavier duties, it will boost their morale after finding your faith in them. For this productivity will be increased. 3. Give growth opportunities to your employees: When an organization provides growth opportunities, many suitable candidates stick to the organization for a long time. It will reduce the companies’ turnover rates and add to increased employee retention rates. 4. Provide job security to your employees: When you carry out internal recruitment, this will help reduce the stress of losing a job. Instead, employees will feel more secure with internal recruiting. 5. Reduced time to hiring: At the time of internal recruitment invest of more time of monitoring the recruiting background checks, interviews are not needed. So, it reduces the time to hiring. 6. Reduced cost of hiring: Time is a cost you can save by internal recruitment. In addition, other monetary costs also come with recruitment that you can save. These include paying recruiting agencies, conducting interviews, forming tests, buying AI Recruiting Software, paying for ads, and much more. 7. Talented ex- employees can serve you again: For any reason or a better opportunity, if your current employees leave today, your internal recruiting can bring them back in the future. 8. Greater cultural compatibility An existing employee serving for quite some time can be a great cultural fit if they perform well on the job. Sometimes, external hiring of a top-notch employee can be a failure just because the employee is not able to adjust to the organization. 9. Training will be easier in internal recruiting Training an internal employee is comparatively easy and more cost-effective than training someone new. 10. Attracting more talents outside When you are famous for giving opportunities to your existing employees, more talented candidates would want to be a part of your organization 89 | H R M Disadvantage of internal source of recruitment: There are many disadvantages of internal sources, some are given below, 1.Reduced pool of applicants: you have many potential candidates who know your business, they may not be the best choice for every role. For example, if you have created a new position, your existing employee base may not have the necessary skill set to take on the role. If you choose only to recruit internally, you may miss out on hiring employees who bring new skills and ideas to the organization that could benefit your business. 2.Workplace resentment: Internal recruitment can boost morale and loyalty; however, on the flip side, it can cause resentment if an employee isn’t hired for a position they wanted, 3.Leaving a gap in the workforce: Moving an employee from one department to another will create a gap that needs to be filled. 4.Limit innovation When you hire from within, you risk everyone becoming too comfortable with how things are done, creating a stagnant culture. Being an internal employee makes it more difficult to spot areas that need improvement. External Sources of Recruitment: External recruitment refers to an organization seeking to fill an open position with someone who does not work at the company. Recruiters or hiring managers use external sources to find available candidates. External recruitment is the opposite of internal recruitment, which means filling available positions with people who already work at your company. External recruits who bring a fresh perspective and new ideas to your organization are sometimes essential to move a business forward. Some sources are given below, 1. Job Search Sites: These may be free or paid services that allow you to post your open jobs and review candidates' resumes in one location. 2. Social Media: You can advertise an open position on your company's social media accounts. 3. Industry Organizations: Consider posting job openings on industry websites and in professional publications. 4. Networking Events: You can request to advertise your job opening at industry networking events by giving a short presentation or handing out flyers. 5. Company Websites: Add a careers section to your website with current available positions. 6.Referrals from Employees: Ask employees to reach out to qualified friends and family members. 7. Job Fairs: Attend job fairs at colleges and community centers to search for job candidates. 90 | H R M 8. College Career Centers: Develop relationships with your area's universities, and alert them when you have open positions. 9.Advertisements: Consider advertising in local newspapers or through targeted online campaigns. Advantages of external sources: 1. Increased chances: If the company enters a selection procedure with external recruitment, then there are increased chances of finding a suitable candidate for the job. This increased chance provides better availability of skilled and qualified employees for the company. 2. Fresher skill and input: When a company goes with an external recruitment method, there is a quite better possibility of finding and identifying a fresher candidate who is capable of delivering new skills and inputs for the betterment of the company. 3. Qualified candidates: With external recruitment advertising, the company can find a variety of qualified candidates for the post offered. And eventually, this process helps to identify the best candidates in a lot of skilled candidates. 4. Better competition: In the external recruitment process, there will be a chance of facing better competition in terms of hiring new talent. 5. Generation of creative ideas: Most probably when the company is in need of those candidates who can provide creative ideas for the growth of the company, then the company needs to go with an external recruitment process for the overall development of the company. 6. Lesser internal politics: In the external recruitment process, there is a very less possibility that the candidate might face internal politics of existing candidates. 7. Better growth: When a company selects a candidate with high potential, then there is a higher possibility of the overall growth of the company. The employees within the organization also broaden their capacity and may try to match with the new talent. 8. Competitive spirit: When employees are recruited through external recruitment, a competitive spirit increase in the organization amongst the employees. Disadvantages of external recruitment: 1. A limited understanding of the company: 91 | H R M When a candidate is selected from an external recruitment process, there is a possibility that the candidate might have less chance of understanding the environment of the company. 2. Higher risk: There is a possibility that the candidate selected for the post is not worthy of the position offered and he/she can take advantage of their position in the company. 3. Time-consuming: The main disadvantages of external recruitment are that it is time-consuming as most of the companies post an advertisement for their company recruitment drive. 4. High costs: the company needs to provide intense training for the candidates, need to select better pay scale, which bit costly for the company. 5. Issues of Maladjustment: There are a number of possible ways where the new employee recruited may not adjust to the new environment. Recruitment: Its Purpose and Importance. There is quite a bit of detail involved in the recruitment process. Effective recruitment processes are vital to acquiring new talent and maintaining business continuity. 1. Helps Analyze current & future requirements An organization’s recruitment process helps it assess its current and future staffing needs. To determine how many recruits are needed, it conducts a methodical examination of company operations. 2. Prevents disruption of business activities As a result of the recruitment process, the daily activities of your organization will run smoothly. The organization provides businesses with all the human resources they need for a variety of job positions on a regular basis. To meet the needs of the organization, recruitment processes select candidates from a variety of backgrounds. 3. Increases the success rate of hiring In this way, the company’s selecting process can be stimulated to increase its success rate. All job applications are analysed to reduce the frequency of unqualified and exaggerated applicants. The recruitment process advances only qualified applicants to the next stage. 92 | H R M 4. Access to wider Talent pool In recruitment, the objective is to create a large pool of qualified candidates from which the most qualified candidate can be chosen. In this way, big groups of individuals are attracted to a company and encouraged to apply for open positions. 5. A cost-effective solution Ensures that total costs and time spent on employee recruitment are minimized. An organized and systematic recruitment process involves giving a detailed description of a job opening to a large number of people. When a job description is good, a large number of people can be recruited at a low cost. 6. Enhances the credibility of the organization Recruiting effectively enhances the reputation of a business organization. In addition to assessing job openings’ validity, it reflects the company’s professionalism and authenticity. In order to increase the trust of job applicants, a company organization must adopt a good application method. Your company will then be able to attract highly qualified candidates. How does human resource management benefit from recruitment? Recruiting employees is extremely important in human resources management because it ensures that employees who wish to join the company are a perfect fit, as well as demonstrating the professionalism of the entire organization from the very beginning when a prospective employee wishes to join the organization. In addition, recruitment is important for gaining skilled employees, ensuring a cultural fit, saving time and money, and improving employee satisfaction. • Hire skilled employees It is the responsibility of HR managers to ensure that skilled employees are recruited throughout the recruitment process. As a result, businesses will acquire employees with skills perfectly suited to their current needs. Additionally, by recruiting new employees, organizations can acquire skills that do not exist within the company. For human resource management to thrive, recruitment is critical, as it allows them to find talent that will be extremely beneficial to the entire organization. Through effective recruitment processes, HR departments can achieve high productivity levels to achieve desired outcomes and work effectively towards goals by acquiring skills necessary to fill roles in teams. • Ensures cultural fit By ensuring that employees are culturally compatible with the organization throughout the recruitment process, managers are able to hire the right employees. The HR professional can ensure and test whether employees will fit into the organization’s culture throughout the recruitment and selection process. If HR deems it necessary, they might not hire an 93 | H R M employee used to a culture based on reliance upon oneself if the company culture is based on teamwork and employees working together. Consequently, HR managers must know their recruitment objective and strive to hire employees who will effectively fit into the organization’s culture. In the same way, many HR professionals have thought about describing the organization’s culture within the job description, so that prospective employees can determine if their culture fits with the organization’s. • Time and money are saved HR Managers can effectively save time and money for their organizations through the recruitment process. In this case, HR managers will ensure that they are hiring the right employee who is best suited to meet the organization’s objectives throughout the hiring process so that if an employee does not meet expectations, they will not have to waste both time and money looking for another employee. This will be accomplished by selecting an employee who has, if not all, at least most, of the skills expected for the job. HR managers can also reduce the cost of training employees this way, because employees who already possess certain skills do not need extensive paid training. HR managers will also save time and money by not having to train employees repeatedly if one does not fit the job. • Enhances employee satisfaction Employee satisfaction can be significantly improved by improving the recruitment process. HR managers must ensure that the entire recruitment process is as easy and interesting for the prospective employee as possible so that future onboarding employees are delighted with the organization. By offering an outstanding recruitment process, HR managers can fulfill the employee value proposition (EVP) fully. Moreover, highly skilled employees can significantly increase the satisfaction of other employees when they join and are extremely helpful to teams and other individuals. Additionally, when employees undergo a unique recruitment process that ensures to motivate employees when they enter the organization because of potential development opportunities, a major increase in employee satisfaction can be seen when employees receive what they expect. • Maintains a positive image of the brand Last but not least, HR managers should pay attention to recruitment so that they can maintain and create a positive brand image. The recruitment process influences employees who are learning about the company and have a positive perception of it through meetings they have in interviews. Positive interviews conducted by HR managers will not negatively impact the business’s brand image. It creates a sense that an organization is a great place to work when the recruitment process is positive. Maintaining a positive recruitment process is essential to creating a positive brand perception for HR professionals. Causes of Recruiting Experienced Manager: 94 | H R M Three Reasons Why Your Hiring Manager Experience Should Be a Priority. Hiring managers are the most critical piece in a successful talent strategy, even in a candidate-driven market. There are three realities in today’s business environment that make your hiring manager experience so important. 1. It’s a tough labor market. A Korn Ferry study warns that by 2030, the global talent shortage affecting us today will have reached 85 million people. Companies across all industries are feeling the weight of that already, but no one more so than your hiring managers. They’re left trying to deliver exceptional results with lean teams and lingering, open positions. Many businesses turn to an RPO (Recruitment Process Outsourcing) to find them talent, but the deeper value lies in their strategic consultation services. RPO providers have an expertlevel view of the market landscape, including current supply and demand levels, that helps you develop a sourcing and recruiting strategy that aligns to it. Using a data-driven approach, RPO providers can advise businesses on everything from the right roles to target to appropriate compensation. 2. Not all managers are great at hiring. While it’s already difficult to find qualified candidates, what makes matters worse is when top talent is hired and the role ends up not being a good fit. A study found that 48% of employees have left a job because it didn’t meet their expectations. And, that number jumps to 73% for Generation Z (ages 18-24). One reason for this is because not all managers make great hiring managers. While they may be experts in their fields and effective team leaders, their hiring experience isn’t considered when they’re promoted to managers. And, if they don’t know exactly who they’re looking for or aren’t great interviewers, you run a greater risk of having turnover and retention challenges. An RPO provider can provide important guidance here. They can walk managers through their needs, from determining the roles to fill to the criteria and skill sets needed for candidates to be successful on their teams. RPO providers can even offer training and oneon-one coaching for hiring managers, helping them develop the right interviewing and communication skills to drive better results. 3. The administrative burden is high. There are many, many steps that happen between posting an open position and that first day on the job. While your hiring managers care about the process, they’re also tasked with keeping their team running – while short-staffed – during that search for the newest employee. Your internal recruiters do their best to keep the process moving forward, but often rely on hiring managers to help do so when their own plates are full of open requisitions across the company. Hiring managers often share the responsibility of managing the candidate experience as well. RPO providers offer a big value add here. They’re experienced communicators who know how to seamlessly drive the process forward. And, using proven practices, they balance the hiring manager and candidate experiences to keep both informed from start to finish. RPOs handle everything from proactively providing status updates to hiring managers to closing the loop with de-selected candidates in meaningful ways that protect the employer brand. 95 | H R M A great hiring manager experience means more than happy managers. It means better, faster hires, a better candidate experience and a stronger employer brand. All of these benefits prove the real value of focusing on your hiring managers first. There are some additional causes of recruiting experienced managers and that’s are – 1. Company Knowledge: The experienced employees have enough knowledge about the different jobs. Thus, they can work efficiently and effectively. 2. Knowledge about personal traits: An experienced person has knowledge about his/her personal traits and qualities for working in any difficult situation. 3. Training facilities: Experienced personnel have proper training about work in an organization. So, they are usually preferred. 4. Systems of work: An experienced employee knows about the system of work in any situation and can also train others. 5. Readiness to take pressure: An experienced person easily takes pressure in any place, any moment. 6. Quick achievement of goal: An experienced person can achieve organizational goal through the use of his/her experience. Steps in Recruitment: An organization can be followed various steps to recruit qualified employees for the achievement of objectives. The steps are as follows: 1. Assessment of the job: Proper assessment of the job is the first move of recruitment of employees. Nature of work, qualities of the required employees, starting time of work etc, are to be assessed for a job. 2. Requisition: After assessment, candidate seeking department communicate with top management about requisition of new employees. Top management analysis the proposal and if it is seen reasonable and acceptable then they give order for advertisement. 3. Inviting Application: After getting the order the next step is attracting applicants through advertisement. It includes important details about the job and employees like name of position, qualities required for the job, salary etc. 4.Receiving Application: Through the advertisement, company asked potential job candidates to submit their resume and other documents. Candidates apply for their positions and assigned department receive the application. 5.Spot Interview: In urgent situation, some organizations need manpower immediately for operating plans and strategies. For this purpose, they visit the sources of manpower’s and recruit on the spot. 96 | H R M Process of Recruitment Recruitment process is the first step in creating a powerful resource base. It is a process of identifying the jobs vacancy, analyzing the job recruitments, balancing between supply and demand of human resources, reviewing applications, shortlisting and close with the selection. The components of recruitment process are as follows: 1.Human resource planning: HRP is the continuous process of systematic planning to achieve optimum use of an organization’s most valuable asset-quality employees. It ensures the best fit between employees and jobs while avoiding manpower shortages or surpluses. 2.Job Analysis: It is the process of gathering and analyzing information about the content and the human requirements of jobs, as well as, the context in which jobs are performed. 3.Nature of Job: For both employer and employee the idea about the nature of job is important. It is also important for making the process successful. 4.Filling the Job: Employer identifies the vacant positions of present and near future and then recruit employees. 5.Recruitment: Sources of recruitment is the main focus in this phase. Employees can be recruited from both internal and external sources. 6.Pool of qualified applicants: As job market is competitive many applicants also there. Company would select best qualified employees for their job. But in some cases, company can select semi qualified employees. 7.Selection: Recruitment process end with the part of selection. It is the process of choosing employees to fill specific jobs within an organization. This process typically includes reviewing applications or resumes, interviewing candidates, and making a final decision. This discussion gives clear idea about recruitment process. Any HRM can make this process successfully, if all these aspects are considered. Limitations of recruitment in Bangladesh The recruitment process followed by the organizations has some Limitations. These are discussed below: 1.Absence of established rules: In Bangladeshi organizations there is hardly any rule of recruitment, that's why irregular adoption of unfair means, taking barriers in the name of donations. 2.Absence of accountability: Accountability and transparency are almost absent in the organizations. 3.Absence of service rules: there are almost no service rules regarding recruitment and selection. As a result, human resources are deprived. 97 | H R M 4. Shortage of efficient human resource management: In Bangladesh skilled experienced and efficient are very rare. Some effective human resources are not properly selected and placed at the right positions. 5. Minimum pay scale: pay scale other fringe and employee benefits are not satisfactory to the employees and this is the cause of low productivity and job satisfaction. 6. Rare recruitment: Recruitment is rarely happened in the public organizations of Bangladesh. For this type of scarce delayed recruitment process we suffer from heavy candidate jam in every recruitment effort. Steps to be followed for getting a job in Bangladesh: Some steps are supposed to be followed by the potential job candidates of Bangladesh for getting employments. These steps are classified into the following types: 1.Submission of application 2.Persuasion 3.Getting reference 4.Support from the mentors 5.Preparing for recruitment test 6.Sitting for recruitment test 7.Preparing for interview 8.Attending the interview board 9.Collecting medical fitness certificate 10.Collecting police verification report by the authority 11.Posting Related Previous Year Questions: a. Distinguish between recruiting and selection. b. Mention the internal and external sources of recruiting with their comparative merits and demerits. c. What do you mean by r-recruiting? How it is conducted? d. Discuss the factors affecting recruitment. e. Define recruitment. Discuss in short, the sources of recruitment. f. Point out the limitations of internal sources of recruitment. g. What are the various sources of recruitment? h. Discuss the condition favoring recruitment from internal sources. i. Which should be the best sources of recruitment discuss. j. Name and describe the main sources of inside and outside candidates. 98 | H R M CHAPTER: 7 Selection of Human Resources Definition of Selection: Selection is the second stage of the recruitment and selection process. It may be defined as the process of choosing the best one from among the number of candidates. It is the process of picking or choosing the right candidate, who is most suitable for a vacant job position in an organization. A number of authors have been defined selection as follows: 1. Dale Yoder: “Selection is the process by which candidates for employment are divided into two classes those who will be offered employment and those who will not”. 2. M.J. Jucious: “The selection procedure is the system of functions and devices adopted in a given company for the purpose of ascertaining whether or not candidate process the qualifications called for by a specific job”. 3. Heinz Weihrich and Harold Koontz: “Selection is the process of choosing from the candidates, from within the organization or from outside, the most suitable person for the current position or for the future positions”. 4. DeCenzo and Robbins: “Selection activities follow a standard pattern, beginning with an initial screening interview and concluding with the final employment decision.” 5. Terrie Nolinske: “Selection is the process of making a hire or no-hire decision regarding each applicant for a job”. However, we can define selection as a multi-stages process selecting the suitable candidates for the sought or advertised vacant position of the organization. Distinction between Recruitment and Selection There are some points of distinction between recruitment and selection. These points of distinction are shown in the following table: Points of Distinction 1. Meaning 2. Process 3. Time 4. Method 99 | H R M Recruitment Selection It is a process of finding and attracting qualified applicants for the job. It is the initial process. It is a process of short-listing candidates, assembling and their final hiring decisions. It is the final process. It begins when new recruits are sought and ends when their applications are received. It is an economical method. It begins after the applications are received and ends when hiring decisions is made. It is an expensive method. 5. Level 6. Come and bye 7. Approach Generally lower-level managers deals with recruitment process. This process invites the applicants by saying “come”. The process of recruitment is positive approach. Mid and top level managers deal with selection process. This process tells ‘bye’ to most of the applicants. The process of selection is negative approach. Process of Selection The selection process can be defined as the process of selection and shortlisting of the right candidates with the necessary qualifications and skill set to fill the vacancies in an organization. The selection process varies from industry to industry, company to company and even amongst departments of the same company. There are eight steps in selection process. Such as: 1. Preliminary Interview: The preliminary interview is also called as a screening interview wherein those candidates are eliminated from the further selection process who do not meet the minimum eligibility criteria as required by the organization. Here, the individuals are checked for their academic qualifications, skill sets, family backgrounds and their interest in working with the firm. The preliminary interview is less formal and is basically done to weed out the unsuitable candidates very much before proceeding with a full-fledged selection process. 2. Receiving Applications: Once the individual qualifies the preliminary interview, he is required to fill in the application form in the prescribed format. This application contains the candidate data such as age, qualification, experience, etc. This information helps the interviewer to get the fair idea about the candidate and formulate questions to get more information about him. 3. Screening Applications: Once the applications are received, these are screened by the screening committee, who then prepare a list of those applicants whom they find suitable for the interviews. The shortlisting criteria could be the age, sex, qualification, experience of an individual. Once the list is prepared, the qualified candidates are called for the interview either through a registered mail or e-mails. 4. Employee Test: In order to check the mental ability and skill set of an individual, several tests are conducted. Such as intelligence tests, aptitude tests, interest tests, psychological tests, personality tests, etc. These tests are conducted to judge the suitability of the candidate for the job. 5. Employment Interview: The one-on-one session with the candidate is conducted to gain more insights about him. Here, the interviewer asks questions from the applicant to discover more about him and to give him the accurate picture of the kind of a job he is required to perform. Also, the briefing of certain organizational policies is done, which is crucial in the performance of the job. Through an interview, it is easier for the employee to understand the candidate’s expectations from the job and also his communication skills along with the confidence level can be checked at this stage. 6. Checking References: The firms usually ask for the references from the candidate to cross check the authenticity of the information provided by him. These references could be forming the education institute from where the candidate has completed his studies or from his previous employment where he was formerly engaged. These 100 | H R M references are checked to know the conduct and behavior of an individual and also his potential of learning new jobs. 7. Medical Examination: Here the physical and mental fitness of the candidate are checked to ensure that he is capable of performing the job. In some organizations, the medical examination is done at the very beginning of the selection process while in some cases it is done after the final selection. Thus, this stage is not rigid and can take place anywhere in the process. The medical examination is an important step in the selection process as it helps in ascertaining the applicant’s physical ability to fulfill the job requirements. 8. Final Selection: Finally, the candidate who qualifies all the rounds of a selection process is given the appointment letter to join the firm. Thus, the selection is complex and a lengthy process as it involves several stages than an individual has to qualify before getting finally selected for the job. Key Components of Selection These components are the essence which can either make the process successful. 1. Deciding on terms of appointment A. Terms of appointment: After deciding the grade and rank of the staff required, and the timing concerned, the department should consider what are the most appropriate terms of appointment would be. Considering the nature of the duties to be performed and the overall manpower deployment of the department, the terms of appointment can he offered are - Permanent, Agreement or Temporary based. B. Flexibility: To minimize recruitment difficulties as well as attract and retain the best people, there are flexibilities, which include recruitment overseas, offer of agreement terms, lowering entry qualifications and granting incremental credit for experience. C. During probation: Probation is a serious process which provides regular feedback on performance and assesses suitability for employment in the civil service. staff is introduced to the mission, objectives and values of the civil service and their departments D. On-the-job training: staff should be exposed to the different duties required for their rank. In this way they can learn the skills expected of them and managers Can verify their long-term suitability: 2. Probation Supervision and guidance: staff should receive close and sympathetic supervision and guidance to enable problems and difficulties to be identified early and timely counselling or other action to be taken. Newly joined staff must be told the length of their probationary period, which varies with the requirements of each grade. Confirmation is the step whereby a member of staff on probation is found suitable for the job and employed on permanent and pensionable terms. 3. The selection process: Selection is the process of choosing from the candidates, from within the organizations, or from outside, the most suitable person for the current position or for the future positions. Organizations differ as to the complexity of their selection systems 4. Application blanks and resumes: Application blank usually include information regarding the name and address of the applicant, work history, education, training, skills, and reference. Examining resumes and application blank usually do the initial screening of potential employees. 101 | H R M 5. References: Most organizations ask an applicant for a list of references to include previous supervisors or coworkers. Since the employee generates this list of references, these individuals will most likely present a positive image of applicant. Letter of recommendation are also considered a type of reference. 6. Reliability and validity in Testing: Test reliability means that the test is consistent in its measurement. Two common types of reliability are discussed: Stability and Internal consistency. Both stability and consistency rely on a correlation coefficient as the index for reliability 7. Validity in testing: Especially if a test is valid, it accurately and consistently measures what it aims to measure. A test must be reliable if it is valid but the reliability of a test does not ensure validity. Thus, a test might accurately and consistently measure "something" but if the human resource managers do not know what that ""something" is, the test is reliable but not valid. 8. Temporary employees: The best way to utilize temporary employees is to have them fill short-term work requirements. Managerial and technical workers have become available through temporary agencies. 9. Employee leasing: Firms can lease employees for long-term or indefinite time periods from companies who specialize in providing workers to client firms. The leasing company maintains the ability to hire and fire employees, is responsible for paying the employees and providing benefits. 10. Independent contractors: Hiring independent contractors is one of the oldest most long-standing methods of filling contingent personnel requirements. Many companies, for example, currently hire independent contractors for maintenance or security work. 11. Socialization and orientation: The socialization and orientation of an employee can be critical to the employee’s acceptance of his or her new role and subsequent performance. This process ensures that employee commitment will be increased and that decisions regarding recruitment and selection are crucial for effective organizational performance Definition of Test Test may be defined as a systemic procedure for forecasting the attitude or behaviour of an individual by sampling it on the basis of his relations to a particular situation, real or artificial. In simple words, testing is the practice of administering written, oral or other test as a means of determining the suitability or desirability of the potential employees. Testing is used at key checkpoints in the overall selection process to determine whether objectives are being met. Candidates whose application show up a certain standard i.e., reveal some amounts of suitability are then asked to go through some tests. Types of Tests for Selecting Candidate To select people, following tests are conducted in different organizations both public and private in Bangladesh. It does not mean that all tests are followed in one organization rather a number of tests are followed at different times depending on the number of recruits, time available, cost and the like. A few tests are discussed below: 1. Written test: Written tests historically have served as significant input into the selection decisions. There has been renewed interest in written tests, since those that have been validated can aid significantly in the acquisition of efficient and effective workers. 102 | H R M 2. Achievement test: It is known by the test whether they are capable enough to achieve the organizational target. 3. Intelligent test: The employee's intelligence level (reasoning, verbal, number, memory) is determined here. 4. Performance test: Whether the employee perform well or not that can be measured with this test method. 5. Honesty or polygraph Test: The use of lie detector for verifying information on the application form can only be used for specific jobs, such as police officer or federal agents. 6. Aptitude test: Whether the employee is interested in the job or not and learning capacity can be determined by this test. 7. Psychological test: The psychology of the employee is determined. Through this test. All the employees may not have favourable psychological support for the job. 8. suggest the degree of energy, inhibitions and spontaneity to be found in the writer, disclosing Graphology (handwriting analysis) Test: It has been said that an individual's handwriting can idiosyncrasies and elements of balance and control from which many personality characteristics can be inferred. 9. Physical test: To identify the physical eligibility to perform the assigned duties. 10. Personality test: Through this test talkative, reliability, self-confident, relationship etc are determined. It's also a psychology test. Recruitment and Selection by Bangladesh Service Commission (BPSC) Public Service Commission of Bangladesh is a constitutional body. Recruitment and selection in the public service commission of Bangladesh (PSC) of Bangladesh is a long process. The process consists of ten stages and only these stages are shown below: 1. Receiving Application 2. Preliminary Test 3. Written Test 4. Viva or Interview 5. Conditional Job Offer 6. Reference Check 7. Police Verification 8. Medical Examination 9. Final Job Offer 10. Posting From the above stages, it can be seen that invitation of application in the first stage and posting is the last stage of the recruitment and selection process. Between these two extremes, there are a number of stages of recruitment and selection process with the provision of screening rejection of candidates. In the private organizations, public service commission driven recruitment process in not followed. They have their own recruitment and selection process. Definition of Interview A formal meeting in which one or more person’s question, consult, or evaluate another person. For example: a job interview. 103 | H R M Types of Interviews Screening: A preliminary interview either in person or by phone in which a company representative determines whether you have the basic qualifications to warrant a subsequent interview. ➢ Traditional: The traditional job interview uses broad-based questions such as, "Why do you want to work for this company?" and "Tell me about your strengths and weaknesses." Employers are looking for the answers to three questions: does the job-seeker have the skills and abilities to perform the job; does the job-seeker possess the enthusiasm and work ethic that the employer expects; and will the jobseeker be a team player and fit into the organization. ➢ Structured Interview: The interviewer explores certain predetermined areas using questions established prior to the interview. The interviewer has a written description of the experience, skills, and personality traits of an “ideal” candidate. Your experience and skills are compared to specific job tasks. This type of interview is very common and most traditional interviews are based on this format. ➢ Unstructured Interview: Although the interviewer is given a written description of the “ideal” candidate, in the unstructured interview, the interviewer is not given instructions on what specific areas to cover. This type of interview will usually feel more like a conversation where the interviewer and candidate take turns asking questions and providing information. ➢ ➢ Behavioral: The behavioral job interview is based on the theory that past performance is the best indicator of future behavior, and uses questions that probe specific past behaviors, such as: "Tell me about a time where you confronted an unexpected problem," "Tell me about an experience when you failed to achieve a goal," and "Give me a specific example of a time when you managed several projects at once." Job-seekers need to prepare for these interviews by recalling scenarios that fit the various types of behavioral interviewing questions. Expect interviewers to have several follow-up questions and probe for details that explore all aspects of a given situation or experience. Recent college grads with little work experience should focus on class projects and group situations that might lend themselves to these types of questions. Internship and volunteer work also might provide examples you could use. Job-seekers should frame their answers based on a four-part outline: (1) describe the situation, (2) discuss the actions you took, (3) relate the outcomes, and (4) specify what you learned from it. ➢ Group or Panel: Two or more company representatives may interview you simultaneously. Sometimes, one of the interviewers is designated to ask “stress” questions to see how you respond under pressure. A variation of this format is for two or more company representatives to interview a group of candidates at the same time. ➢ Case: The case interview is one in which you are introduced to a business dilemma facing a particular company. You are asked to analyze the situation, identify key business issues, and discuss how you would address the problems involved. Case interviews are designed to scrutinize the skills that are especially important in management consulting and related fields: quantitative skills, analytical skills, problem-solving ability, communications skills, creativity, flexibility, the ability to think quickly under pressure, listening skills, business acumen, keen insight, interpersonal skills, the ability to synthesize findings, professional demeanor, and powers of persuasion. 104 | H R M ➢ Situational: In situational interviewing, job-seekers are asked to respond to a specific situation they may face on the job, and some aspects of it are similar to behavioral interviews. These types of questions are designed to draw out more of your analytical and problem-solving skills, as well as how you handle problems with short notice and minimal preparation. ➢ Stress: The stress interviewing technique is typically used only for positions in which the job-seeker will be facing stress on the job, and the interviewer wants to see how well you can handle the pressure. The key to surviving stress interviews is to remain calm, keep a sense of humor, and avoid getting angry or defensive. The interviewer may try to stress you in one of several ways, such as asking four or five questions in a row, acting rude or sarcastic, disagreeing with you, or simply keeping you waiting for a long period. Don’t take any of these actions personally. Simply stick to your agenda and showcase your skills and accomplishments calmly. Better, try taking back control of the interview by ignoring the stress. ➢ STAR: Companies use the STAR (Scenario/Topic, Action, Result) approach to evaluate candidates on their communication and analytical skills, as well as their judgment. Reviewing and evaluating past decisions and performances are paramount in this type of interview. When answering a question posed by an interviewer, you must assess the interviewer’s goal in asking the question and answer accordingly. By using the STAR formula, you will be able to provide important information to the emp 105 | H R M Suggestion for Making an Interview Effective Here are key suggestions to conduct effective interviews: 1. Align on Job Needs: To ensure an effective interview process, managers should collaborate with HR to meticulously outline and align on the specific job requirements, delineating essential skills, competencies, and the role's nuances. This alignment forms the cornerstone, guiding the development of a clear, detailed job description that encapsulates the technical and soft skills necessary for success in the role. Consistent communication and mutual understanding between the manager and HR regarding these job needs enable the creation of tailored interview questions and evaluation criteria. This synergy ensures that the interview process accurately identifies candidates who not only meet the role's demands but also align with the company's goals and culture. 2. Structured Interviews: Structured interviews involve predetermined sets of questions designed to elicit specific information, uniformly applied to all candidates. These standardized queries are tailored to assess competencies, skills, and behavioral patterns crucial for the role. By employing a consistent structure, managers can effectively compare candidates based on the same criteria, promoting fair evaluations. The predefined questions delve into a candidate's experiences, problem-solving abilities, and suitability for the position. This method allows for a systematic and objective assessment, enabling a clearer understanding of each candidate's qualifications and ensuring a more equitable and insightful selection process while minimizing bias in the evaluation. 3. Behavioral Questions: Behavioral questions in interviews are designed to unveil a candidate's past behavior in various work-related situations. These queries focus on specific instances or scenarios to assess how a candidate has handled challenges, conflicts, or achievements in previous roles. By exploring a candidate's past experiences, actions taken, and the results achieved, these questions provide valuable insights into their problemsolving abilities, decision-making skills, and interpersonal dynamics. Managers utilize these inquiries to predict a candidate's potential performance and behavior in similar circumstances within the new role, facilitating a deeper understanding of their approach to work and their alignment with the company's needs. 4. Case Studies or Simulations: Case studies or simulations within the interview process simulate real-world scenarios or tasks relevant to the job role. These practical exercises allow candidates to showcase their skills, problem-solving abilities, and decision-making in a controlled environment. By presenting a scenario or task reflective of the job, managers can directly observe a candidate's approach, creativity, and expertise in handling specific challenges or assignments. This hands-on evaluation provides a more accurate assessment of a candidate's abilities, supplementing the information gathered from traditional interview questions. It aids in identifying the best-suited candidate who not only possesses the required skills but also demonstrates practical application and proficiency in a given scenario. 5. Cultural Fit Assessment: Cultural fit assessment in interviews involves evaluating a candidate's alignment with the company's values, mission, and work environment. Through targeted questions, interactions, or observations, managers gauge a candidate's attitudes, behaviors, and working style. This assessment aims to ensure that a prospective employee not only possesses the necessary skills but also shares and embodies the company's ethos, contributing positively to the team dynamics and organizational culture. It helps in determining if the candidate will adapt well, collaborate effectively, and thrive within the existing work environment, fostering a cohesive and harmonious integration of the individual within the company's culture and values. 106 | H R M 6. Engage the Team: Engaging the team in the interview process allows for varied perspectives and collective insights. Involving potential colleagues or team members in candidate assessments provides a holistic evaluation, as different team members offer diverse viewpoints and expertise. This participatory approach fosters team buy-in and helps in evaluating not only a candidate's qualifications but also their compatibility with the team's dynamics. It also offers candidates a chance to interact with potential future colleagues, giving a glimpse into the team's culture and work environment. Ultimately, this collaborative evaluation aids in making a more informed decision about the candidate's fit within the team and the broader organizational context. 7. Provide Clarity: Providing clarity during the interview process involves offering comprehensive information about the job role, the company's vision, and growth opportunities. Clear communication ensures that candidates gain a thorough understanding of the position's responsibilities, expectations, and the organization's values. Articulating the company's mission and future prospects helps candidates make informed decisions about their alignment with the company. This transparency establishes realistic expectations, fostering a more honest and well-informed dialogue between the candidate and the company, ensuring a better mutual fit and a clearer path towards shared success. 8. Timely Feedback: Timely feedback post-interview is crucial for both candidates and the hiring process. It involves providing constructive insights promptly to HR or the recruitment team. This allows candidates to understand their performance and areas for improvement, enhancing their overall experience. Swift feedback also expedites the decision-making process, enabling HR to move forward efficiently. Additionally, it reflects positively on the company, demonstrating respect for candidates' time and effort. Clear and prompt communication, whether it's an offer, further interviews, or constructive feedback, contributes to a smoother, more respectful, and productive hiring process. By implementing these strategies, managers can conduct effective interviews that not only assess a candidate's skills and abilities but also evaluate their fit within the team and the organization. Guidelines to Be Followed to Become an Effective Interviewer The best interviewers make interviews feel like conversations instead of interrogations, and they work to develop rapport with candidates to help them feel comfortable opening up and sharing information about themselves. Let’s go over how to do this. 1. Prepare Well: Preparing well for an interview involves thorough research on the company and role, understanding the job description, and familiarizing yourself with the candidate's background. Study the candidate's resume, cover letter, and portfolio, if available, to formulate insightful and relevant questions. Anticipate potential queries from the candidate and have suitable responses ready. Ensure you are well-versed with the company's mission, values, recent news, and industry trends. Practicing active listening, understanding the job requirements, and having a clear strategy for the interview will aid in conducting a comprehensive and productive session. This preparation fosters a professional and engaging atmosphere, benefitting both interviewer and interviewee. 2. Approach Methodically: Approaching an interview methodically involves structuring the process with a clear plan. Outline the sequence of the interview, including introductions, specific stages (e.g., skills assessment, behavioral questions), and a defined closing. Allocate time wisely for each section to ensure a comprehensive assessment within the scheduled timeframe. Consider employing a consistent evaluation framework for all candidates. Establish rapport with a welcoming introduction, transition smoothly through various segments, and allow time for candidate inquiries. This structured approach ensures 107 | H R M fairness, consistency, and an organized flow, enabling both interviewer and interviewee to navigate the process effectively and confidently. 3. Choose Questions Wisely: Choosing questions wisely involves crafting open-ended inquiries that elicit comprehensive insights beyond surface-level responses. Mix behavioral and situational questions to gauge a candidate's past experiences and their problem-solving abilities. Tailor questions to the role, emphasizing technical skills, cultural fit, and behavioral traits. Avoid yes/no queries and prioritize those that prompt elaboration and examples. Incorporate hypothetical scenarios to assess how the candidate might handle specific challenges. Balancing diverse question types helps paint a holistic picture of the candidate's competencies, personality, and suitability for the role, aiding in a more thorough and insightful assessment during the interview. 4. Have an Interview Structure: Creating an interview structure involves a clear outline that organizes the process into distinct sections. Begin with introductions to establish rapport, followed by skill-based, behavioral, and situational questions, allowing the candidate to showcase expertise and problem-solving abilities. Incorporate moments for the candidate to ask questions about the role or company. Conclude with a summary and information about the next steps. This organized approach ensures a consistent evaluation of all candidates, streamlines the interview process, and offers a clear path for both the interviewer and interviewee, fostering a productive and fair assessment environment. 5. Take Notes and Listen Carefully: Taking notes and active listening are pivotal during an interview. Engage in attentive listening, focusing on the candidate's responses, body language, and tone to grasp nuances. Concurrently, jot down key points, notable examples, and relevant details. This aids in recalling crucial information for assessing candidate suitability. Avoid distractions, maintain eye contact, and use non-verbal cues to convey attentiveness. Notes serve as valuable references for post-interview reflections and discussions. This dual approach of listening intently while documenting essential details ensures a comprehensive understanding of the candidate's qualifications, allowing for a fair and informed assessment. 6. Improve Judgment: Improving judgment in interviews involves ongoing refinement of evaluation criteria. Reflect on past decisions and adjust assessment methods based on their outcomes. Incorporate feedback and learning from diverse interviews to enhance judgment accuracy. Develop a keen awareness of personal biases and actively work to mitigate them. Regularly update and adapt the interview process to align with evolving job requirements and industry trends. Embrace continuous learning and professional development to refine evaluation skills. This iterative approach, coupled with a commitment to self-awareness and adaptability, fosters more informed and effective judgment, contributing to better candidate selection and a more successful interviewing process. Additionally, being mindful of biases, treating candidates respectfully, and providing clear information about the job and company are crucial for effective interviewing. Advice to Interviewers For the sake of a successful interview program, the interviewer should do something. Similarly, he should not do same acts. From the table as shown gives him/her some guidelines in this regard: Do's Plan the interview 108 | H R M Don'ts Start the interview unprepared Establish an easy and informal relationship Encourage the candidate to talk Cover the ground as planned Problem where necessary Analyze career and interests to reveal strengths weaknesses, patterns of behavior Maintain control over the direction and time taken for the interview Plunge too quickly into demanding questions Ask leading questions Jump to conclusions on inadequate evidences Pay too much attention to isolated strengths or weaknesses Allow the candidate to gloss over important facts Talk too much Interview Questions from the Employer: Regarding Personal Information 1. 2. 3. 4. 5. 6. Describe about yourself. What is your name? What is the name of your home district? Have any political vision? May I see your resume? What can I do for you? Regarding Motivation 7. Is your present employer aware of your interest in a job change? 8. Why do you want to change your job? 9. What cost you to enter your job field? 10. Why do you want to change your field of work? 11. What is the ideal job for you? Regarding Education 12. Describe your educational qualifications. 13. Why did you choose your major? 14. What was the condition of your result? 15. What extracurricular activities did you take part in? 16. What honors did you earn? 17. What were your average grades? Regarding Experience 18. Why should I hire you? 19. How do you fit the requirements for this job? 20. Who has exercised greatest influence on you? How? 21. What is your greatest strength or limitations for this job? 22. Which supervisor did you like best and why? 23. What kind of people appeal most or least to you as work associates? 24. What equipment can you work on? Regarding Pay 25. What do you require? 26. What is the minimum pay you will accept? 27. What is your pay record for last five years? 28. Why do you believe you are qualified so much more? 109 | H R M 29. We can’t pay the salary you ask for. 30. Would you be willing to start lower and work towards that figure? 31. What do you expect to be earning five years from now? Related Previous Year Questions a. What are the different steps in selection procedure? b. Bring out the barriers of effective selection. How can you overcome them? c. Discuss the purposes and procedures of E- selection. d. What is collection validation? e. What do you mean by scrutiny and screening in selection? f. What sectors make cause the selection program ineffective? g. State the selection process showing the flow chart locating the elimination Stages. h. Explain the types of psychological test commonly used in selection process. i. How would you go about validating a selection test? j. How would employees react if they think that selection process in the organization is unfair? k. Give a pictorial representation of the selection process followed by Bangladesh Public Service Commission. l. Mention some guidelines for effective interviewing 110 | H R M Chapter 8 Promotion, Demotion and Transfer Learning Objectives: • • • • • • • • Define human resources promotion and Demotion The basic principles of promotion Objectives of promotion Classification of promotion State the merits of promotion in an organisation Identify the causes of demotion in an organisation Determination the objectives or purpose of transfer State the problems facing by an employee after demotion in an organisation of Bangladesh 1. Introduction Promotion in human resources management refers to the process of advancing an employee from their current position to a higher-level role within the organization. This elevation is typically accompanied by increased responsibilities, challenges, and often an augmented level of compensation. The aim of promotion is to recognize and reward an employee's performance, skills, and potential while fostering career development and engagement within the organization. Gary Dessler: Gary Dessler defines promotion as "the advancement of an employee to a better job in terms of greater responsibility, more prestige or status, greater skill, and especially, increased rate of pay or salary." Wayne Cascio: Wayne Cascio characterizes promotion as "the transfer of an employee to a job that pays more money or that has more responsibility." Dale Yoder: Dale Yoder states that promotion is "the shift of an employee to a position carrying higher pay, a higher level of responsibility, or both." Edwin B. Flippo: Edwin B. Flippo describes promotion as "the upward reassignment of an individual in an organization’s hierarchy, accompanied by increased responsibilities, enhanced status, and usually with increased income." Moreover promotion Includes, ● ● ● Recognition and Reward: Promotion serves as a tangible recognition of an employee's contributions and performance. It is a way for organizations to reward individuals who have demonstrated excellence in their current roles. Motivation and Morale: The prospect of advancement encourages employees to excel in their work, fostering a positive work environment and boosting overall morale. It provides a clear career path, motivating employees to invest in their professional development. Talent Retention: Promotion is a critical tool for retaining top talent. Employees are more likely to stay with an organization that values their contributions and provides opportunities for growth and advancement. 111 | H R M ● ● ● Skill Development: Moving into higher roles often requires the acquisition of new skills and knowledge. Promotion, therefore, contributes to the continuous development of an employee's skill set, making them more versatile and valuable to the organization. Succession Planning: Promotion is linked to succession planning, ensuring that there is a pool of qualified individuals ready to take on leadership roles as they become available. It is a strategic approach to building a strong and capable workforce. Performance Evaluation: The promotion process is closely tied to performance evaluations. Employees are typically promoted based on their demonstrated abilities, achievements, and potential to take on additional responsibilities. In conclusion, promotion in human resources management is a dynamic process that goes beyond simple career advancement. It plays a pivotal role in recognizing and cultivating talent, motivating employees, and ensuring the long-term success and sustainability of an organization. 2. Principles of Promotion The need for principles of promotion is needed because opportunities for promotions are limited. A good number of employees cannot get any promotion and happen to retire from the same class in which they had started their career. It is essential to secure the morale of the service that the employees who are not given promotion should be made to feel that their exclusion from promotion is not arbitrary. Hence there arises the importance of principles of promotion. There are two main principles of promotion. They are seniority principle and merit principle. A. The Seniority Principle This is the oldest principle and is still valid today. The seniority principle means that the length of service is the criterion upon which promotion is made. According to this principle, the employee who has longer service to his credit would be entitled to get promotion. However, determination of seniority is not a simple affair. A public servant of a higher grade is senior to those who are in lower grade. Similarly, an employee of a higher class, though getting actually less pay is senior to an employee of a lower lass getting more pay. Advantages 1. It is an objective criterion. So, it cannot be misused. 2. Senior man is more experienced. Experience should be a qualification for higher post. 3. It is a fair and just basis of promotion because everybody gets an opportunity for promotion. 4. Interference by politicians can be avoided. 5. It boosts the morale of the employees as they are sure of promotion at their turn. 6. It leads to automatic promotion. 7. The principle of seniority is simple. Disadvantages 1. It does not lead to the selection of the best. There is no guarantee that the senior man is more competent than the junior. 2. It does not ensure that every officer will get a higher post and hold it for a reasonable period. 112 | H R M 3. If seniority alone is the basis of promotion, employees would not make any effort for selfimprovement. 4. For the organization as a whole the system may prove to be dangerous because the senior may not necessarily be efficient or intelligent. B. Merit principle Merit principle means that promotion would be made on the basis of qualifications and achievements of the employee irrespective of the high length of service. The most meritorious or best – qualified persons would be promoted. It provides due incentive to the efficient and hardworking employees. Since it boosts the general morale the employees it increases the efficiency of the department. Generally speaking, there are three methods of judging the merits of the candidates. They are personal judgment of the Head of the Department, Promotional Examinations and Service Ratings. i. Personal judgment of the Head of Department The Head of Department is the right person to judge the merit of the employees as he maintains close contact with them. This system has the advantage of being both simple and comprehensive. But this system can work only in small organizations. Moreover, this system is highly subjective and may be subject to favoritism and personal considerations. In order to avoid this defect, it is suggested that promotion of the employees should be placed in the hands of a board, organized in each service. ii. Promotional examination Promotion may also be made on the basis of a written examination. This written examination may be an open competition or a limited competition or merely a pass examination. In the open competition system, any one-off, whether within the service or outside the service can compete for the post. This system is justified on the ground that it widens the range of selection and new blood, and fresh ideas can be injected to the department. Under the limited competition system, examination is limited to the employees who are already in service. This is also known as closed system. This system is preferred by employees in the lower grades. Besides examination, in this system, an equal weight is given to the confidential report of the employees also. In the pass examination system, the candidate has just to pass the examination and only such candidates will be promoted. This system is followed in India in junior clerical, typist, steno, and other mechanical jobs. iii. Service Ratings Under this system the qualifications of the employees for promotion are determined on the basis of service records. This is also called efficiency rating. Maintenance of service records of the employees enables the promotion making authority to gather the necessary data on the basis of which efficiency may be evaluated. In the U S A, efficiency rating has been made a very elaborate affair. Thus, it is difficult to pass a judgment on either seniority or merit as a principle of promotion. Both have their own merits and defects. Anyway, the authorities on the subject have come to the mutual agreement that, 1. In promotion to higher post, merit alone should be the only consideration. 2. In promotion to middle posts merit should be the primary consideration and seniority should be the secondary consideration. 3. In promotion to the lower posts of a routine nature only seniority should be Considered. 113 | H R M 3. Objective of Promotion. The objectives of promotion in human resources management are multi-faceted and align with the overall goals of the organization. Here are key objectives of promotion: 1. Recognition and Reward: ● Objective: To recognize and reward employees for their outstanding performance, dedication, and contributions to the organization. ● Rationale: Recognition through promotion reinforces positive behavior, motivating employees to continue excelling in their roles. 2. Talent Retention: ● Objective: To retain high-performing and skilled employees. ● Rationale: Employees are more likely to stay with an organization that values their contributions and provides opportunities for career advancement. 3. Motivation and Morale: ● Objective: To boost employee motivation and morale. ● Rationale: The prospect of advancement encourages employees to invest in their work, leading to increased job satisfaction and a positive work environment. 4. Skill Development: ● Objective: To facilitate the development of employees' skills and competencies. ● Rationale: Promotion often involves taking on new responsibilities, which requires the acquisition of additional skills, contributing to professional growth. 5. Succession Planning: ● Objective: To ensure a pipeline of qualified individuals for key roles. ● Rationale: Promotion is a strategic component of succession planning, preparing employees for higher-level positions and reducing the impact of talent gaps. 6. Employee Engagement: ● Objective: To engage employees in their work and the organization's mission. ● Rationale: Promotions demonstrate that the organization is invested in the growth and success of its employees, fostering a sense of loyalty and commitment. 7. Organizational Development: ● Objective: To support the long-term growth and development of the organization. ● Rationale: A well-structured promotion system contributes to building a skilled and motivated workforce, enhancing the organization's overall capability and competitiveness. 8. Performance Alignment: ● Objective: To align individual performance with organizational goals. ● Rationale: Promotion based on merit ensures that individuals advancing in the organization are those who have demonstrated the competencies and behaviors aligned with the company's objectives. 9. Enhanced Productivity: ● Objective: To increase overall productivity by placing employees in roles that capitalize on their strengths and capabilities. ● Rationale: Promoted employees are likely to bring a heightened level of commitment and energy to their new roles, positively impacting productivity. 10. Job Satisfaction: ● Objective: To enhance overall job satisfaction among employees. 114 | H R M ● Rationale: Promotion is often associated with increased job responsibilities and higher compensation, contributing to a greater sense of job satisfaction and fulfillment. In summary, the objectives of promotion in human resources management are centered around recognizing and nurturing talent, maintaining a motivated workforce, and strategically positioning the organization for sustained success and growth. 4. Merits of Job Promotion in Organization Promotion does well for the company as well as the employees. Job promotions in an organization offer several merits, including: Increased Responsibility: Promotions often come with greater responsibilities, allowing employees to develop new skills and gain valuable experience. Career Advancement: Promotions provide a clear path for career progression and help employees move up the organizational hierarchy. Higher Compensation: Typically, promotions come with higher salaries, bonuses, or other financial incentives, improving an employee's earning potential. Recognition and Motivation: Promotions are a form of recognition for an employee's hard work and dedication, motivating them to continue performing at a high level. Skill Development: New roles and responsibilities in a higher position often require employees to acquire new skills and knowledge, enhancing their professional growth. Increased Job Satisfaction: Promotions can lead to increased job satisfaction and a sense of accomplishment, as employees achieve their career goals. Employee Retention: Promotions can reduce turnover as employees are more likely to stay with an organization that offers opportunities for growth. Leadership Opportunities: Higher-level positions may include leadership roles, allowing employees to influence and make decisions that impact the organization. Networking: Promotions can expand an employee's network within the organization, facilitating collaboration and future career opportunities. Employee Loyalty: Recognizing and promoting internal talent can foster a sense of loyalty and commitment among employees. It's important for organizations to have a fair and transparent promotion process to ensure that promotions are based on merit and contribute positively to both individual and organizational success. 5. Consideration of promotion in organization Promotion considerations in an organization should be based on merit and aligned with the company's goals and values. Here are key factors to consider: 115 | H R M Performance: Evaluate an employee's performance, skills, and contributions to determine if they meet or exceed the expectations of their current role. Qualifications: Assess whether the employee possesses the necessary qualifications, education, and experience for the new role. Skills and Competencies: Determine if the employee has the relevant skills and competencies required for the promotion, and identify any skill gaps that can be addressed. Potential: Consider an employee's potential to grow and excel in the new role, including their ability to adapt to increased responsibilities. Experience: Weigh the candidate's experience within the organization and industry, as it can be a valuable asset for certain roles. Leadership and Teamwork: Assess an employee's ability to lead, collaborate with others, and contribute positively to the team's dynamics. Cultural Fit: Consider how well the employee aligns with the organization's culture, values, and mission. Performance Reviews: Use performance reviews, feedback, and 360-degree assessments to gather insights into an employee's strengths and areas for improvement. Long-Term Potential: Evaluate whether the promotion aligns with the employee's long-term career goals and the organization's succession planning. Equal Opportunity: Ensure that promotion decisions are fair, unbiased, and not influenced by factors such as gender, race, or other protected characteristics. Organizational Needs: Assess whether the promotion fulfills a specific organizational need or strategic objective. Training and Development: Consider whether the employee may require additional training or development to excel in the new role. Communication: Clearly communicate the promotion criteria and process to all employees to maintain transparency and fairness. It's essential to have a structured promotion process that takes these factors into account and includes opportunities for employees to demonstrate their readiness for advancement. A fair and transparent approach to promotions can boost morale and contribute to a positive organizational culture. 6. Types of Promotion There are three main types of employee promotion: vertical, horizontal, and dry. I. Vertical Promotion Vertical promotions give employees more or different responsibilities, a higher salary, and a new job title. This is what most people imagine when they think about promotions. Vertical 116 | H R M promotions are an excellent way to recognize high performing employees and fill vacant positions that can benefit from an internal perspective. They also signal to your people that the company values their career growth. II. Horizontal promotion Horizontal promotions mean a pay raise and a new job title but no change to the role itself. These promotions work well to reward tenure, acknowledge new qualifications, and boost retention. For example, horizontal promotion is a common practice in universities — in many institutions, lecturers become senior lecturers after five to seven years. III. Dry promotion Dry promotions are as bad as the name suggests. This is when an employee receives extra responsibilities, but nothing else. Avoid them at all costs. They chase away employees by making them feel undervalued and unappreciated and are not a people-oriented practice. 7. Difference Between Internal and External Promotion Most academics will tell you that external promotion (getting promoted by applying for a higherlevel job at another institution) is “easier” than internal promotion (getting promoted by putting in a promotion application at your own institution). For one thing, it is generally much less work. My own – internal – promotion applications at the University of Melbourne generally took me about six weeks of work to prepare. They were substantive 20-page documents in which you needed to make an “argued case” that you were already operating at the level that you wanted to be promoted to. In terms of research, this means much more than simply listing grants, publications, and citations. You are expected to show your “leadership in the academic discipline”, which involves having a coherent research program (or preferably several programs; I had five active research programs when I applied as Associate Professor) that has made a real difference in the field, both academically and societally. So rather than just rattling off the mantra “I have 15 A*/4* and 10 A/3* – or whatever the ranking system is – publications”, you need to talk about why the actual content of your research has made a difference and is of major international significance. This is something many academics find surprisingly hard to do! In contrast – depending on the country/university – applying for promotion externally can be as simple as sending in your CV and a short application letter, or even just being headhunted for a particular position. At worst, it might involve struggling with online application systems and addressing specific selection criteria, but in my – admittedly limited – experience, this rarely takes more than a day or two. However, in addition to being more time-consuming, internal promotion is also typically harder to achieve. The same academic record that might see you rejected for promotion internally might well lead to an offer for external promotion. It is not surprising that many academics take the external route and come back to their home institution with a job offer, expecting it to be matched. In some countries, universities even actively encourage this and are unwilling to consider promotion, or a salary raise unless academics secure an outside offer. Some academics have even informed me that actually handing in your notice (i.e., resigning) might grant you “instant promotion”. Although these strategies might well work, they are by no means guaranteed to do so, so be prepared to walk away or eat humble pie! 8. Definition of Demotion 117 | H R M In human resources management, demotion refers to the downward movement of an employee from their current position to a lower-level role within the organization. This change typically involves a reduction in responsibilities, status, and sometimes a decrease in compensation. Demotion may be initiated for various reasons, including performance issues, organizational restructuring, or changes in job requirements. Here are some definitions of demotion, Gary Dessler: Gary Dessler defines demotion as "the assignment of an individual to a lower-level job with less responsibility and authority." Dale Yoder: According to Dale Yoder, demotion is "the assignment of an individual to a job of lower pay and responsibility than the one formerly held." R. Wayne Mondy and Shane R. Premeaux: Mondy and Premeaux describe demotion as "the reassignment of an individual to a position with less responsibility and authority, usually accompanied by a decrease in pay." Edwin B. Flippo: Edwin B. Flippo states that demotion is "the downward reassignment of an individual in an organization's hierarchy, accompanied by a decrease in responsibilities, status, and usually with a decrease in income." Demotion is a sensitive and potentially challenging aspect of human resources management. It is often considered a corrective or disciplinary measure, but it can also be a strategic response to organizational changes, such as downsizing or restructuring. Properly handled, demotion can provide employees with an opportunity to address performance issues or adapt to changes in the organization while allowing them to continue contributing to the company's success. 9. Demotion Policy Demotion is very harmful for the employees’ morale. It is an extremely painful action, impairing relationships between people permanently. While, effecting demotions, a manager should be extremely careful not to place himself on the wrong side of the fence. It is, therefore, necessary to formulate a demotion policy so that there may be no grievance on the part of the trade unions. Yoder, Heneman, Turnbull and Stone have suggested a five-fold policy in regard to demotion practice: 1. A clear list of rules along with punishable offences be made available to all the employees. 2. Any violation be investigated thoroughly by a competent authority. 3. In case of violations, it is better to state the reasons for taking such a punitive step clearly and elaborately. 4. Once violations are proved, there should be a consistent and equitable application of the penalty. 5. There should be enough room for review. Demotions have a serious impact on need fulfillment. Needs for esteem and belongingness are frustrated leading to a defensive behavior on the part of the person demoted. There may be complaints, emotional turmoil, inefficiency or resignation. Hence, demotions are very rarely 118 | H R M resorted to by managers. Managers prefer to discharge employees rather than facing the problems arising from demotion. 10. Causes of demotion Demotion in human resources management can occur for various reasons, and it is typically considered a significant decision that requires careful consideration. Here are some common causes of demotion: 1.Performance Issues: ● Poor Performance: Employees who consistently fail to meet performance expectations, achieve goals, or demonstrate the necessary skills may face demotion as a corrective measure. 2. Organizational Restructuring: ● Job Redundancy: In situations where job roles are redundant due to organizational changes, employees may be demoted to a position that aligns with the new structure. 3. Disciplinary Actions: ● Misconduct: Serious misconduct or violation of company policies may result in demotion as a disciplinary action, especially if termination is not deemed appropriate. 4. Downsizing and Cost Reduction: ● Financial Constraints: During periods of financial difficulty, organizations may demote employees as a cost-cutting measure rather than resorting to layoffs. 5. Job Performance Mismatch: ● Incompatibility: If an employee is promoted to a role for which they are not suited or lacks the required skills, demotion may be necessary to place them in a more fitting position. 6. Organizational Changes: ● Job Role Modification: Changes in the nature of a job or the requirements for a particular role may result in demotion if an employee is no longer qualified for their current position. 7. Health or Personal Issues: ● Health Problems: If an employee's health deteriorates to the extent that they are no longer able to fulfill the responsibilities of their current role, demotion may be considered as an alternative to termination. 8. Job Abolishment: ● Position Elimination: When a particular job becomes obsolete due to technological advancements or changes in business strategy, employees occupying those roles may face demotion. 9. Failure to Meet Qualification Requirements: ● Lack of Credentials: Some roles may require specific qualifications, certifications, or licenses. If an employee loses these qualifications, they may be demoted. 10. Organizational Performance: ● Company Performance Issues: In times of economic downturn or poor organizational performance, demotions may occur as part of broader costcutting measures. 11. Behavioral Issues: ● Inappropriate Behavior: Repeated instances of inappropriate behavior, conflicts, or interpersonal issues that disrupt the workplace may lead to demotion. 119 | H R M It's important for organizations to approach demotions with sensitivity and fairness, ensuring that the process is well-communicated and that affected employees are given the support they need to address the issues leading to the demotion. Transparent communication and adherence to legal and ethical considerations are crucial when implementing demotions to maintain employee morale and trust in the organization. 11. Effects of Demotion 11.1 Effects on the Individual Employee: 1.Morale and Motivation: ● Negative Impact: Demotion can have a significant negative impact on an employee's morale and motivation, as it may be perceived as a setback or a failure. 2.Job Satisfaction: ● Decreased Satisfaction: Demoted employees often experience a decrease in job satisfaction, especially if the demotion is viewed as unfair or unjust. 3.Self-Esteem and Confidence: ● Reduced Confidence: Demotion can lead to a reduction in an employee's selfesteem and confidence, affecting their belief in their abilities and skills. 4.Career Trajectory: ● Altered Career Path: Demotion can alter an employee's career trajectory, potentially delaying or derailing their professional advancement. 5.Social Impact: ● Impact on Relationships: Demotion may affect an employee's relationships with colleagues, as it can change their status and position within the organization. 6.Stress and Anxiety: ● Increased Stress: Demotion often introduces uncertainty and anxiety about the future, as employees may be concerned about their financial well-being and career prospects. 11.2 Effects on the Organization: 1.Employee Morale and Engagement: ● Decreased Morale: Widespread demotions can lead to a decrease in overall employee morale and engagement, affecting the organizational culture. 2.Productivity and Performance: ● Reduced Productivity: Demotions may lead to a decline in productivity and performance, especially if employees feel disheartened or disengaged. 3.Talent Retention: ● Risk of Turnover: Demotions may increase the risk of talented employees leaving the organization, as they may seek opportunities elsewhere that align with their skills and aspirations. 4.Organizational Reputation: ● Reputation Impact: Frequent or poorly managed demotions can negatively impact the organization's reputation, both internally and externally, affecting its ability to attract and retain top talent. 5.Team Dynamics: ● Team Morale: Demotions within a team can disrupt team dynamics and collaboration, as team members may experience uncertainty and discomfort. 6.Leadership Credibility: 120 | H R M ● Credibility of Leadership: The way demotions are handled can impact the credibility of leadership. Poorly managed demotions may lead to a lack of trust in leadership decisions. 6.Legal and Ethical Considerations: ● Legal Risks: If demotions are perceived as discriminatory or unfair, the organization may face legal challenges, leading to potential legal and financial consequences. Effectively managing the aftermath of demotions is crucial for organizations to minimize the negative impact on both individuals and the overall organizational climate. 12. Employee Transfer Employee Transfer is the process of horizontal movement of an employee, wherein there is a change in the job, without any changes or revision in the remuneration, pay, and modification of responsibilities. It is a form of internal mobility, in which the employee is shifted from one job to another usually at a different location, department, or unit. Transfer can either be temporary or permanent depending on the decision of the organization, and it is initiated by any of the two, i.e., employer or employee. Sometimes, it also includes promotion, demotion or even no change in the status and responsibility. 13. Reasons for Employee Transfer Every organization has a defined criteria for the transfer of employees, and it also varies from individual to individual. The primary reasons for employee transfer are mentioned here: 1. Some positions require distinctive skills, competency, and expertise from the transferred employees. 2. The transfer is also affected when there is a shortage of employees in one department of the organization due to high demand, and there are surplus employees in another department. So, the workers are shifted from one department to another. 3. It is also initiated when there are some clashes between the superior and subordinate or between two workers. 4. To break the monotony of the work, employees are transferred, as the employee productivity of an employee decreases by doing the same job again and again. 5. An employee may request the human resource department, to transfer him to another location, due to health issues because the climate is not suitable for his/her health. 6. Female employees commonly request a transfer when they get married, and they have to live with their spouses. The transfer may be requested by the employee himself or by his immediate boss (superior) or by the manager of another department. 14. Types of Employee Transfers 1. Production Transfer: Production transfer is usually practiced to prevent lay-off that is to say when there is a surplus of the workforce in the factory, excess workers are laid off. But, if they are transferred to another factory or plant, where there is a shortage of labor, the massive layoff can be avoided. 121 | H R M 2. Replacement Transfer: This form of transfer also helps in preventing lay-off of senior employees by replacing a junior employee. The organization opts for this transfer when there is a continuous decrease in the operations, and the organization wants to retain an employee who has been serving the organization for a long time. 3. Versatility Transfer: To make the employees competent and versatile, these transfers are initiated. It is also called job rotation which can be commonly seen in banks where employees working at clerical levels has to work at different profiles. 4. Shift Transfer: In general, industrial establishments operates on rotational shifts, and the workers usually request a transfer to the shift of their choice. 5. Remedial Transfer: When the initial placement of an employee is faulty, or the worker is not comfortable with the superior or with the coworkers, or there are some health issues, then these transfers are affected as a remedy to the situation. As the transfer is requested by the employee himself, it is also called a personal transfer. 15. Managing Transfers A transfer is a move from one job to another, usually with no change in salary or grade. Employers may transfer a worker to vacate a position where he or she is no longer needed, to fill one where he or she is needed, or more generally to find a better fit for the employee within the firm. Many firms today boost productivity by consolidating positions. Transfers are a way to give displaced employees a chance for another assignment or, perhaps, some personal growth. Employees seek transfers for many reasons, including personal enrichment, more interesting jobs, greater convenience—better hours, location of work, and so on—or to jobs offering greater advancement possibilities. Transfers for the firm’s convenience—once widely used—are used less of late. 16. Difference Between Transfer and Promotion 1. Transfer refers to moving an employee from one position or department within a company to another, while promotion refers to advancing an employee to a higher position within the same department or company. 2. Transfer is often used to redistribute employees based on the needs of the company, while promotion is used to reward and recognize employees for their performance. 3. Transfer may or may not involve a change in job responsibilities or salary, while promotion typically involves an increase in both. 4. Transfer is usually done internally within a company, while promotion may also involve external candidates. 5. Transfer is done to fill a specific job opening or to develop an employee's skills, while promotion is done to fill a vacancy or to recognize an employee's contributions. 6. Transfer may be initiated by the employee or the employer, while promotion is usually initiated by the employer. 7. Transfer may be a temporary or permanent move, while promotion is generally a permanent move. 8. Transfer may involve a change in location, while promotion may not. 9. Transfer may be done to meet the company's needs, while promotion may be done to meet the employee's career development goals. 122 | H R M 10. Transfer may or may not have any effect on the employee's seniority or status within the company, while promotion generally increases the employee's seniority and status within the company. 17. Dismissal or Discharge When any employee his behaves, breaks ruler and regulations neglects duly and inefficient in assign job authority may fire him for the service is called discharged or dismiss. According to 1965 for the misbehavior if any employees are fried by the authority is called dismissal. Generally, to protect organizational interest this type of decision is take. It manager think that by the employee productivity is decreased crime is occurred and any other corruptions are done he has taken this types of decision. As dismissal or discharge is a legal lawful punishment so the authority should have clear idea about the labor law and act. Employees become frustrated and dissatisfy if the decisions go against the law. It hampers the organizational goodwill and productivity as well. 18. Reasons of Discharge In the organization, organizational interests get priority first. It any activities occurred by the employees go against it may decide to fire him. There are some reasons behind discharge are discussed in west. 1. Neglect of duty: Total activities of an organization depend on efficient and strong employee to do property. If they neglect their duty it impacts on the prosperity of the organization and the management can discharge them. 2. Inability to work: If any employee physically and mentally in capable to do work may be discharged from the organization. 3. Reducing excess workers: Sometimes organization recruits’ employees to meet quick order in short and fast time. After and of the necessity management may dismiss them. 4. Change in policy: To keep pace with the flexible or dynamic environment organizations have to change their policy. But some employees cannot accept the changed policy and protest the new policy. Then management may discharge them form the service. 5. Indefinite’s workers: If the employee becomes failure to do the assigned job and cannot adjust with the environment management may take decision to dismiss him from the job. Dismissal or discharge is a complex task. It may create opposite reaction to the organization among the employees. So, the management should take cautions steps for these types of decision. 19. Relations between Promotion and Morale One way to acknowledge an employee for doing a good job is through promotion. An employee's position is developed by it. Employees who are promoted receive more responsibility, a higher salary, and dignity. Conversely, morale refers to the state of the human mind. They become hands-raising universally as a result. A promotion increases a worker's loyalty to the company. They are content when they perform their jobs with sincere respect and dignity. Their greatest work is inspired by themselves. Hundgburg and other psychologist think that acceptance develop the morale. Promotion is not only instrument for morale. It may make the satisfied and reduce employees turn out. Employees think organization as his own when he gets promotion. So we can say that promotion influences on employees motive and morale. 123 | H R M Previous Year Questions a. Define Promotion. b. Discuss the Principles of Promotion. c. What are the various basis of Promotion? What one does you like to prefer in case of promotion of a University Teacher and Manager. Other Questions 1. a. Define promotion. b. Discuss the principles of promotion. 2. a. Discuss the classification of promotion. b. Distinguish between internal promotion and external promotion. 3. a. What do you mean by the term 'demotion? b. Discuss different causes of demotion. 4. a. Define transfer. b. Mention some causes of transfer c. Distinguish between promotion and transfer. 124 | H R M Chapter- 9 Orientation and Socialization Learning objectives: • • • • • • • • Define human resource orientation and socialization Discuss the steps of orientation State the contents of orientation in an organization Objectives of orientation in an organization Advantages of an orientation program in an organization Identify factors of successful orientation program in Bangladesh State supervisor’s role in the orientation of new employee Sate the assumptions of employee socialization in Bangladesh 1. Preface of orientation Human resource orientation, often referred to as employee orientation or onboarding, is a process by which a new employee is introduced to their workplace, company culture, policies, procedures, and job responsibilities. It is designed to help new hires acclimate to their roles, understand the organization's values, and integrate into the workplace effectively. Another words orientation refers to a process through which the individual is introduced to the environment. Orientation programs take place in institutions and organizations in order to familiarize the new employees to the organizational setting. It is important to bear in mind that although the person is socialized in the societal setting, through orientation the individual is introduced to a subcultural setting. According to Garry Dessler: “Employee orientation is a procedure for presiding new employees with basic background information about the firm”. According to Robbins: “An orientation program should familiarize the new member with the organization objections, history, philosophy, procedures and rules, communicate relevant personnel policies such as hours of work, pay, procedures and quintiles, fringe benefits etc.” From the above discussion, we can say that orientation is the process in which new employees are given information about that nature, history, rules and regulations of the organization. Employees are introduced to those workers who are working in the organization. 2. Steps of Orientation Orientation is a process by which individuals, typically new employees or students, become familiar with a new organization, environment, or role. The specific steps of orientation can vary depending on the context and the goals of the orientation program, but here are some common steps involved in a typical employee orientation shown in a diagram below. Introducing with Superiors 125 | H R M Introducing with Colleagues Executive Personal Interest In the following points, brief description has been included: 1. Reception: Firstly, the organization extends a warm welcome to the new hires. As though the organization treats the new hires with the proper respect and they are here to accomplish a specific mission. The company encouraged the new hires to perform better in this way. 2. Acceptance stage: The second phase of orienting is acceptance. At this point, the employee has favorable opinions about their colleges. Colleges have a crucial responsibility to ensure that the workspace is conducive to productive work. 3. Executive's personal interest: Executive personal interest refers to the personal interest that executives take in getting to know new hires. This helps to establish a sense of importance for the new hires inside the organization and encourages them to contribute their creativity, talent, skills, etc. 4. Introducing with colleagues: In this stage organization introduce the new employees with the colleagues to whom they will work. By doing this organization is successful to create friendly and cordial relationship among the new employees and the old employees. 5. Introducing with supervisors: This is the crucial orientation phase. At this point, new hires have the chance to introduce themselves to senior management. Through both official and casual conversations with the executives, the new hires might learn what role they currently have. 6. Introduce with service and regulations: In this stage employees are introduced with rules and regulations of the service. If they have idea about the rules and regulations, they are all to as their activities carefully. As a result, the number of mistakes becomes less. 126 | H R M 7. Understanding the facilities: At this point, the organization gives new hires an overview of the facilities and benefits. These facilities give employees the chance to live a standard lifestyle. In order to ensure the success of the work, they attempt to contribute. 8. Introducing duties and responsibilities: The main task of orientation-is to make the employees understand about their duties clearly so that they can perform these duties properly. 9. Follow up: On the analysis of steps, if any mistake is occurred, those steps are to be corrects. This process is known as follow-up. In conclusion we can conclude that, by following the steps new employees are to be introduced with entire matter of the organization. If any organization does not follow the steps properly, they will not introduce their new employees in the organization. 3. State the contents of orientation of an organisation An orientation program typically includes an introduction to the organization's mission, values, and culture. It covers policies, procedures, and expectations, and may involve introductions to key personnel, a tour of facilities, and information on benefits and workplace resources. 1.Mission, Values, and Culture: An overview of the organization's fundamental purpose (mission), core principles (values), and the shared beliefs and behaviors that define its work environment (culture). 2.Policies and Procedures: Information about the rules and guidelines that govern employee conduct, including workplace policies, code of conduct, and procedures for various scenarios. 3.Key Personnel Introductions: Introduction to key individuals within the organization, such as executives, managers, and team leaders, along with their roles and responsibilities. 4.Facility Tour: A guided tour of the organization's physical locations, providing an understanding of different departments, workspaces, and facilities. 5.Benefits Overview: An explanation of the benefits offered by the organization, including healthcare, retirement plans, vacation policies, and any other employee perks. 6.Workplace Resources: Information on tools, technologies, and resources available to employees to perform their jobs effectively. This may include software, equipment, and support services. 7.Expectations and Performance Standards: Clear communication of the organization's expectations regarding employee performance, professionalism, and conduct. 8.Safety and Emergency Procedures: Guidelines and protocols for maintaining a safe work environment, including emergency procedures and evacuation plans. 9.Diversity and Inclusion Initiatives: Information about the organization's commitment to diversity and inclusion, along with initiatives in place to promote a diverse and welcoming workplace. 10.Training and Development Opportunities: Overview of programs and resources available for employee skill development, continuous learning, and career advancement within the organization 3.1 The objectives of orientation in an organization include: 127 | H R M 1.Introduction to Organizational Culture: Familiarize new employees with the organization's values, mission, and culture to foster a sense of belonging and alignment with company goals. 2.Clarification of Job Roles and Expectations: Provide a clear understanding of individual job roles, responsibilities, and performance expectations to enhance productivity and job satisfaction. 3.Effective Onboarding: Facilitate a smooth transition for new employees, helping them integrate into the workplace, understand company procedures, and establish connections with colleagues. 4.Promotion of Workplace Safety: Educate employees on safety protocols, emergency procedures, and the importance of maintaining a secure and healthy work environment. 5.Introduction to Key Personnel: Familiarize new hires with key individuals in the organization, promoting networking, communication, and a better understanding of the company's hierarchy. 6.Explanation of Policies and Procedures: Ensure that employees are aware of and understand organizational policies, procedures, and ethical standards to maintain a compliant and professional work environment. 7.Encouragement of Diversity and Inclusion: Communicate the organization's commitment to diversity and inclusion, fostering a workplace where all employees feel valued and respected. 8.Orientation to Workplace Resources: Introduce new hires to tools, technologies, and resources available to them, facilitating a smooth start to their roles and enhancing overall efficiency. 9.Building Team Cohesion: Promote team-building activities and interactions during orientation to strengthen relationships among employees and create a positive work atmosphere. 10.Initiation of Continuous Learning: Emphasize the importance of ongoing learning and professional development, encouraging employees to seek opportunities for skill enhancement and career growth within the organization. 3.2 The advantages of an orientation program in an organization include: 1.Smooth Onboarding: Facilitates a seamless integration of new employees into the workplace, reducing the time it takes for them to become productive members of the team. 2.Increased Job Satisfaction: Helps employees understand their roles and responsibilities, leading to greater job satisfaction as expectations are clear from the beginning. 3.Enhanced Productivity: A well-designed orientation program equips employees with the knowledge and resources needed to perform their jobs efficiently, contributing to increased productivity. 4.Reduced Turnover: Employees who feel supported and engaged from the start are more likely to stay with the organization, reducing turnover and associated recruitment costs. 5.Improved Employee Morale: By creating a positive and welcoming environment, orientation programs contribute to higher morale among employees, fostering a sense of belonging and commitment. 6.Better Communication: Enhances communication channels by introducing new hires to key personnel, colleagues, and providing information on organizational structure and communication protocols. 128 | H R M 7.Compliance and Ethical Awareness: Ensures that employees are aware of and understand organizational policies, procedures, and ethical standards, reducing the risk of compliance issues. 8.Positive Company Image: Contributes to a positive perception of the organization by demonstrating a commitment to employee well-being and professional development. 9.Effective Use of Resources: Helps employees understand and utilize available resources efficiently, reducing the learning curve and optimizing the use of organizational tools and technologies. 10.Establishment of Safety Practices: Ensures that employees are knowledgeable about safety protocols and emergency procedures, contributing to a safer work environment. 4. Factors of successful orientation program in Bangladesh A successful orientation program in Bangladesh, like in any other country, should consider various factors to effectively onboard and integrate new employees. Some key factors include: Cultural Sensitivity: Recognizing and respecting the diverse cultural norms and practices in Bangladesh is crucial for building positive relationships with employees. Language: Ensure communication is conducted in both Bengali and English, as English is widely spoken and understood in the professional context. Legal Compliance: Orienting new employees about labor laws and regulations specific to Bangladesh is essential to maintain compliance. Company Values: Communicate the organization's values, mission, and vision, aligning them with the local culture and expectations. Safety and Security: Address workplace safety and security concerns, including emergency procedures and health protocols, which can be particularly important in Bangladesh. Benefits and Compensation: Provide a clear understanding of the compensation structure and benefits, considering the local market standards. Social Responsibility: Emphasize the company's commitment to social responsibility and community involvement, which can resonate with Bangladeshi values. Cross-Cultural Training: Offer training to help employees from different backgrounds understand and work effectively with each other. Technology and Tools: Familiarize employees with the technology, tools, and systems used in the workplace, considering local infrastructure and accessibility. Feedback Mechanisms: Establish feedback channels that encourage open communication, as feedback is an important part of the Bangladeshi work culture. Mentoring and Support: Provide opportunities for mentorship and support, which can help employees adapt to the workplace culture. Inclusivity: Promote diversity and inclusivity in the workplace, recognizing that Bangladesh is a diverse country with people from various backgrounds. Role Clarity: Ensure that new employees have a clear understanding of their roles, responsibilities, and performance expectations. Adaptability: Encourage adaptability and flexibility, as the business environment in Bangladesh can sometimes be dynamic. 129 | H R M Long-term Perspective: Help employees see a long-term career path within the organization, aligning personal and professional goals. Customizing your orientation program to the specific needs and expectations of your employees in Bangladesh will contribute to its success. 5. Supervisors Role in the Orientation of New Employees The welcoming of new employees is a collaborative effort that includes human resources (HR), the hiring department and other teams throughout [Company Name]. Preparing for new hires and providing appropriate guidance and information during the first several days of employment can ensure success. Supervisors play an important role in the orientation of new employee. Organization gives the authority to supervisor to introduce the new employee with their working environment. So that they have knowledge where place they are going to work. There are some roles played by supervisors in the orientation. There are given below: "Orientation has a direct impact on future productivity, performance, and job satisfaction. And you (the supervisor) play a key role in the success of the orientation process. 1. Welcome the Employee: Supervisors should realize that bringing in a new worker is not like putting a new part in a machine. There's emotion to it. A warm handshake, a smile and a "glad to have you here" and a "looking forward to working with you again tomorrow," from your new boss can create positive feelings for the day, and perhaps the years, to come. 2. Explain the Policies: Although the worker may have held a similar position elsewhere, every company has its specifics, and a new worker usually knows none of them. Explanation should start with such simple matters as where to park, what to wear, and what door to enter, on Day One. Information on hours, pay, benefits, safety and security, and where the break and rest rooms are located are as essential to a new worker as how to do the new job. The program provides several checklists to be sure all the needed information is covered. 3. Discuss Job Standards: "At no time," say the program narrators, "is the employee more receptive to learning the job standards than at orientation." Supervisors should use this opportunity for a solid discussion of what's expected, and how and how often it's measured. 4.Select an "Orientation Assistant: a solidly performing job veteran, with pride in the company, to serve as a mentor or buddy to the newcomer. This person will be the newcomer's conduit to his or her new world in terms of introductions and information, and will be constantly available to answer questions or provide help. 5. Understand Adult Learning: As the program explains, adults learn the least by reading, the most, by doing. Supervisors are advised to set up demonstrations and to let the worker try his or her hand. And because the mind can accept only so much new information at a time, learning should be divided into small chunks over the first month. Finally, say the authors, assign meaningful work, such as helping the orientation assistant do the job, or carrying out simple tasks on his or her own on the first day. "Reading stacks of manuals," the program narrator declares, "is not a good beginning." 130 | H R M 6. Socialization Socialization, in the context of human resources, is a broader term that encompasses the entire process of integrating an individual into a company or organization. It includes not only orientation but also the ongoing development and adaptation of an employee within the company's culture. Socialization helps employees build relationships, understand informal networks, and become more engaged and productive members of the organization. It's a longer-term process that extends beyond the initial orientation period. Another decimation socialization refers to a process through which the individual becomes familiarized to the society and social group. In every society from the beginning of human history the socialization took place. However, the socialization process differs from one society to another mainly because of the values that each society upholds. For instance, while a child in a tribal society may be taught specific values, these may be completely different from that of another society. According to Garry Dessler: “Socialization is the ongoing process of instilling in all employees the prevailing attitude, standards, values, and pattern of behavior that are exported by the organisation and its department.” According to F. Wager: “Socialization refers to the mutual adoption of new employee and new employer to one another.” According to Robbins: “In the content of organization, the term socialization refers to all passages undergone by employee.” Now we can conclude that socialization is an adoption process. It helps new employees to adjust themselves with organization and other activities related to organization. In short we can say socialization is a process of adoption that takes place as individuals attempt to learn the values and norms of work roles. 7. Process of Socialization 1. Orientation Programs: New employees are introduced to the organization's culture, values, and structure through formal orientation programs, providing foundational knowledge about the workplace. 2. Mentorship: A mentoring system is often in place to pair new employees with experienced colleagues who guide them in understanding unwritten norms, fostering a sense of belonging and facilitating a smoother integration process. 3. On-the-Job Learning: Practical experience is a crucial aspect. New employees learn by doing, gaining insights into the day-to-day operations and the implicit expectations within the organization. 4. Cultural Integration: Emphasis on cultural aspects such as respect for authority, teamwork, and collective decision-making. Understanding and adapting to cultural nuances is vital for effective socialization. 5. Communication Styles: Recognition of high-context communication prevalent in Bangladesh, where indirect communication and non-verbal cues are significant. Employees learn to navigate communication effectively within this cultural context. 6. Relationship Building: Socialization involves building interpersonal relationships, both professionally and personally. Team-building activities and informal interactions contribute to a positive social atmosphere. 7. Continuous Feedback: Regular feedback mechanisms are in place to provide guidance and constructive input. This helps employees understand their roles better and align their actions with organizational expectations. 131 | H R M 8. Promoting Loyalty: The socialization process instills a sense of loyalty by emphasizing the organization's mission, values, and long-term goals, fostering commitment among employees. 8. Assumptions of Employee Socialization The assumptions of employee socialization in Bangladesh may include cultural integration, respect for hierarchical structures, adherence to traditional values, and an expectation of loyalty towards the organization. Additionally, it may be assumed that interpersonal relationships play a significant role, and communication styles are influenced by collectivism and a high-context culture. Keep in mind that these assumptions can vary based on specific industries and organizations within Bangladesh 1. Cultural Integration: - Assumption: New employees are expected to integrate into the existing organizational culture, which in Bangladesh often emphasizes respect for authority, collective decisionmaking, and strong interpersonal relationships. - Details: This involves understanding and embracing cultural nuances, participating in cultural events, and adapting communication styles to align with the prevailing cultural norms within the workplace. 2. Respect for Hierarchical Structures: - Assumption: There is an expectation of showing respect for hierarchical positions within the organization. - Details: New employees are anticipated to understand and adhere to the organizational hierarchy, acknowledging the authority and status of superiors. This may influence communication styles, decision-making processes, and overall workplace behavior. 3. Loyalty towards the Organization: - Assumption: There is an assumption that employees will demonstrate loyalty to the organization. - Details: Loyalty is often seen as a reciprocal expectation, where the organization invests in employee development, and in return, employees are expected to commit to the long-term goals and success of the company 4. Interpersonal Relationships: - Assumption: Building positive interpersonal relationships is crucial for effective teamwork and collaboration. - Details: New employees are assumed to actively engage in relationship-building activities, both professionally and personally. This may include team-building exercises, social events, and open communication to foster a supportive work environment. 5. Communication Styles Influenced by Collectivism: - Assumption: Communication is influenced by a collectivist culture, where harmony and group cohesion are prioritized. - Details: New employees are expected to adapt to high-context communication, where indirect communication and non-verbal cues play a significant role. Understanding the subtleties in communication is crucial for effective collaboration and relationship-building. 132 | H R M These assumptions collectively shape the employee socialization process in Bangladesh, influencing how individuals integrate into the workplace and contribute to the organizational culture. 9. Objectives of Socialization Socialization is a process which helps the new employees to adjust themselves with organizations culture, rules and regulations, working procedure etc. The main objectives of socialization are to make the employees comfortable while they are performing their job in organization. There are three types of objectives which are given below. 1.Training on rules and regulations of an organization. 2. Buildings inter personal relationship. 3. Ensuring belongingness. From the above discussion we can say that these are three main adjectives of socialization. If organization wants to fulfill its desire expectations the organization needs to execute the adjectives of socialization. 10. Types of Socialization Organization needs to determine which methods of socialization to be used. Because different types of socialization programs influence on employees in different ways. There are several types of socialization which are given below: 1. Formal Socialization: Structured programs, such as orientation sessions and official training modules, designed to convey explicit information about the organization's culture, policies, and procedures. 2. Informal Socialization: Unofficial channels through which employees learn cultural nuances, unwritten rules, and build relationships. This often occurs through day-to-day interactions, informal conversations, and observation. 3. Sequential Socialization: A phased approach where employees go through distinct stages of socialization. This can include initial orientation, followed by integration into work teams, and eventually assuming more responsibilities. 4. Investiture Socialization: Emphasizes affirming and recognizing the individual's existing skills, experiences, and perspectives. It acknowledges the value newcomers bring and seeks to integrate these into the existing organizational culture. 5. Divestiture Socialization: Involves letting go of certain aspects of one's previous identity or habits to align with the organization's culture. It may require unlearning certain behaviors that don't align with organizational norms. 6. Tactical Socialization: Focuses on specific job-related aspects, ensuring employees are well-versed in the skills and knowledge required for their roles. It often involves hands-on training and practical experiences. 133 | H R M 7. Serial Socialization: Involves learning from peers or colleagues who have been in the organization for a longer time. Newcomers gain insights, advice, and support from experienced employees, fostering a sense of community. 8. Investment Socialization: A long-term perspective that aims to build a committed and engaged workforce. It involves continuous development, mentorship, and opportunities for career growth to enhance employee loyalty. From the above discussion we can say that all types of socialization are of net essential. Organization can conduct any program which is most useful to maintain situation properly. Questions 1. a. Define orientation. b. Discuss the steps of orientation process. 2. a. Discuss the contents of orientation. b. Distinguish between orientation and socialization. 3. a. Point out the objectives of orientation. b. What are the advantages of orientation. 4. a. Discuss the factors for successful orientation program. b. What should be the role of a supervisor in the orientation of new employees? 5. a. What do you mean by the term 'socialization' b. Discuss different assumptions of socialization. 6. a. Discuss the objectives of socialization. b. Explain the process of socialization. 7. a. Describe the patterns of socialization. b. Which type is appropriate for your organization? Give reasons 134 | H R M CHAPTER 10 Training and Development Introduction Training and development are integral components of Human Resource Management (HRM), playing a crucial role in enhancing the capabilities, skills, and knowledge of an organization's workforce. In a rapidly evolving business landscape, where change is the only constant, the success of any organization heavily relies on its ability to adapt, innovate, and stay competitive. This is where effective training and development programs come into play. Training refers to the process of imparting specific skills and knowledge to employees that are directly related to their current job roles. It aims to enhance an employee's proficiency, productivity, and efficiency. In contrast, development encompasses a broader perspective, focusing on preparing employees for future roles and responsibilities within the organization. Development initiatives often include leadership training, career planning, and personal growth opportunities. The importance of training and development in HRM cannot be overstated. Here are some key reasons why organizations invest in these practices: ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ Skill Enhancement: Training equips employees with the skills and knowledge needed to excel in their current positions, ensuring they perform at their best. Employee Engagement: Offering development opportunities can boost employee morale and engagement, as it signals an investment in their growth and career progression. Adaptability: Training and development help employees adapt to evolving technologies, methodologies, and industry trends, ensuring the organization remains competitive. Succession Planning: Development programs identify and groom potential future leaders, reducing the risk of leadership gaps in the organization. Employee Retention: Organizations that invest in their employees' growth are more likely to retain talented individuals, saving recruitment and onboarding costs. Improved Performance: Well-trained and developed employees are more likely to deliver high-quality results, which benefits the organization's bottom line. Compliance and Safety: Training ensures that employees understand and adhere to legal and safety regulations, reducing the risk of non-compliance issues. Innovation: Employees with diverse skills and knowledge contribute to an innovative and dynamic workplace. HR professionals play a pivotal role in designing, implementing, and evaluating training and development programs. They must assess the specific needs of the organization and its employees, develop training content, choose suitable delivery methods, and measure the effectiveness of these initiatives. Modern training and development methods often leverage e-learning platforms, mentoring, on-the-job training, workshops, and more to cater to diverse learning styles and preferences. 135 | H R M Definition Training and development, in the context of Human Resource Management (HRM), refer to structured and systematic processes designed to enhance the knowledge, skills, abilities, and overall capabilities of an organization's workforce. These processes are aimed at improving employee performance, productivity, and jobrelated competencies, as well as preparing employees for future roles and responsibilities within the organization. Here are more concise definitions of training and development in HRM: Training Training is the process of providing employees with specific knowledge, skills, and information related to their current job roles. It involves formal instruction, coaching, and practical exercises to equip employees with the tools and competencies needed to perform their tasks effectively. Development Development, on the other hand, is a broader process that focuses on preparing employees for future career advancement and organizational growth. It includes activities such as leadership training, career planning, mentorship, and personal growth opportunities to nurture employees' potential. In summary, training is about acquiring job-specific skills, while development is about fostering a broader set of competencies and preparing employees for future roles and responsibilities within the organization. Both training and development are critical aspects of HRM to enhance the overall capabilities and potential of an organization's workforce. Distinction Between Training and Development Training and development are two distinct but interconnected components of Human Resource Management (HRM), each serving specific purposes and objectives within an organization. Here's a breakdown of the key distinctions between training and development: Point of Training Distinction Purpose and Training is primarily focused on Focus improving and enhancing employees' current job-related skills and knowledge. It aims to ensure that employees can perform their existing job roles effectively and efficiently. Development Development has a broader and long-term focus. It aims to prepare employees for future roles and responsibilities within the organization. Time Horizon Training is often short-term in Development is a more longnature. term process. Scope 136 | H R M Training is job-specific and typically addresses technical or functional skills. It involves teaching employees how to perform tasks, use equipment, or follow procedures relevant to their current roles. Development is broader in scope and encompasses personal and professional growth. It includes leadership development, career planning, and activities that encourage employees to expand their skills and competencies beyond their current roles. Methods and Training programs often use Content structured and standardized methods to convey specific knowledge and skills. The content is usually related to jobrelated tasks and responsibilities. Development activities can be more diverse and may involve mentoring, coaching, job rotation, and experiential learning. The content is often focused on leadership, soft skills, and personal growth. Outcomes The outcomes of development include the growth of leadership potential, increased adaptability, and the ability to take on more significant responsibilities within the organization. The primary outcome of training is an immediate improvement in job performance, productivity, and task-related skills. In HRM, a balanced approach that combines both training and development is often essential for fostering a skilled, adaptable, and competitive workforce. Training ensures that employees excel in their current positions, while development helps organizations nurture talent for future leadership and strategic roles. Objectives of Training The objectives of the training component of Training and Development in Human Resource Management (HRM) are multifaceted and geared toward improving employee performance, enhancing organizational effectiveness, and achieving specific strategic goals. Here are the primary objectives of training in HRM: Skills Enhancement: To equip employees with the necessary skills and knowledge required to perform their current job roles effectively. This includes technical, jobspecific, and functional skills. 1. Improved Performance: To enhance individual and team performance, leading to increased productivity, efficiency, and the ability to meet organizational goals and targets. 2. Enhanced Job Satisfaction: To boost employee morale and job satisfaction by providing them with the tools and knowledge needed to excel in their roles, which, in turn, can lead to increased motivation and engagement. 3. Adaptability: To help employees adapt to changes in the workplace, such as new technologies, processes, or industry trends, ensuring the organization remains competitive and responsive to market dynamics. 4. Compliance and Safety: To ensure that employees are aware of and adhere to legal, regulatory, and safety standards relevant to their job roles, reducing the risk of non-compliance issues and accidents. 5. Cost Reduction: To minimize errors and inefficiencies by providing employees with the necessary training, which can lead to cost savings and improved resource allocation within the organization. 137 | H R M 6. Team Building: To facilitate team cohesion and collaboration by fostering a common understanding and language among team members, leading to better teamwork and communication. 7. Cross-Training: To provide employees with a broader skill set, making them more versatile and capable of handling multiple roles within the organization, thereby reducing the risk of skill gaps. 8. Customer Satisfaction: To improve customer service and satisfaction by training employees to provide better products or services, resolve customer issues effectively, and build positive relationships with clients. 9. Competitive Advantage: To gain a competitive edge by having a workforce that is well-equipped, adaptable, and responsive to industry changes, ultimately contributing to the organization's success in the marketplace. The specific objectives of training in HRM can vary from one organization to another, depending on its industry, size, and strategic priorities. However, the overarching goal is to enhance the skills and capabilities of the workforce to drive organizational success and competitiveness. Benefits of Training and Development Training is the act of increasing the skill of an employee for doing a particular job. After recruiting and placing the employee in the right place, the next step is to train and develop the Human collected recently. There have some benefits of training and Development program as follows: 1. Increased Employees performance: While the positive attributes ,such as a willingness to work hard and empathy are undeniable natural assets, they are becoming eclipsed by the value of learning .Today, knowledge can be relevant in one moment and outdated in the next. Without access to learning and development to keep knowledge up to date, other skills or attributes lose their impact. 2. Maximum use of Machines & Raw material: Through training, employes acquire new skills needed to use machine and methods. With this knowledge the employees ensure the maximum use of machine and methods that leads to the reduction of production cost. 3. Reduced Accident: Because of training, employees become familiar with the occupational health and safety legislation as well as handling techniques of machines. They can also protect themselves from physical hazards, unhealthy condition and unsafe acts other employees. All these help to reduce accident. 4. Build workplace relationship: Providing opportunities for employees to explore new topics, refine their skills and expand their knowledge can help your team members bond with each other. During these training and development sessions, they will tackle new challenges together. They can also learn on another for various learning opportunities by collaborating with colleagues who have specific areas od expertise. 5. More productivity: Productivity can be increased through training and thus organization is benefited. This leads to increase production. 138 | H R M 6. Boosted employees morale: usually employees want to be loyal to the management or employee. But some of them do not know the actual way of loyalty. Training and development can help them in this regard. 7. Better knowledges of company policies and goal: Employee training and development programs are the perfect way to educate about company policies and goals. learning sessions that explore the company direction and values strengthen employee alignment and connection, which is one strategy to improve workplace culture. 8. Improved client satisfaction: when an organization’s employees get regular training, their job abilities enhance and they perform more professionally and effectively. Customer will notice the difference in service quality, which will positively impact their perception of the company. In turn, improved customer satisfaction and positive word-of-mouth referrals can lead to increased customer loyalty and a stronger market position for the organization. 9. New method: Through training employees are prepared are prepared mentally to introduce new method of work and also except the tactics and thus resistance to change may be overcome. 10. Better work environment: Training create an appropriate climate for growth and communication. The training helps create favorable workplace and avoid or protect unfavorable environment for work. 11. Reduce consulting cost: It reduce outside consulting costs by utilizing competent internal consulting. Important Training and development Institutes in Bangladesh Many institutes are at present working in Bangladesh. These are both for employee training and for management or executives training. These are located throughout the country. Some of them are listed below: 1.ABIT – Agrani Bank training Institute (Bongobondhu, Avenue, Dhaka.) 2.APD – Academy for Planning &Development (Nilkhet, Dhaka) 3.BBTA – Bangladesh bank Training Academy (Mirpur, Dhaka) 4. BCS Academy – Bangladesh Civil Service Academy (Shahbag, Dhaka) 5.BIM- Bangladesh institute of management (Shshbsg, Dhanmondi, Dhaka.) 6.BIBM – Bangladesh Institute of Bank Management (Mirpur, Dhaka.) 7.BKBTI – Bangladesh Krisi Bank Training Institute (Motijheel, Dhaka) 8. BPATC – Bangladesh Public Administration Training Centre (Savar,Dhaka ) 139 | H R M 9. BIT – Bangladesh Technical Inistitute (Dhaka) 10.BVTI – Bangladesh vocational Traninng Institute (Dhaka) 11.FSB – Faculty of Business studies (Dhaka University, Dhaka) 12.GTI – Garments Training Institute (Uttara, Dhaka) 13.HTTI – Hotel and Tourism Training Institute (Mohakhali, Dhaka) 14.IBA – Institute of Business Adminstration (Dhaka University,Dhaka) 15.IBTRA – Islamic Bank Training & Research Academy (Mohammadpur, Dhaka) 16.ITA- Imam Training Academy (Uttara, Dhaka) 17.ICAB- Institute of Charterted Accountants of Bangladesh 18.ICMAB – Institute of Cost &Management Accountants of Bangladesh ( Dhaka) 19.IFB -Islamic Foundation of Bangladesh (Baitul Mukarram, Dhaka) 20.IMP-Institute of Personal Management (Mohammadpur,Dhaka) 21.IRI – Industrial Relations Institute (tongi,Gazipur) 22.JBTI -Janata Bank Training Institute (Shantinagar,Dhaka) 23.MIST-Military Institute of science & technology (Mirpur,Dhaka) 24.NAME -National Academy for education & Managemnt (Dhanmondi,Dhaka) 25.NBTI – National Bank Training Institute (Mohammadpur, Dhaka) 26.PMI – Project Management institute (Dhaka) 27.PTI -Primary Training Institute (All district city) 28. RBTI – Rupali Bank Training Institute (Dhaka) 29.SBSC – Sonali Bank Staff College (Ragarbag, Dhaka) 30.TTC -Teachers Training college (Dhamondi, Dhaka) Model of Training 140 | H R M Several models have been designed on training as well as development Significant number of components of these models is almost common. Actually training process starts with requisition of employees and managers utter by the training institutes or by the nominating organizations. Before nominating the employees and managers in the program need for training should be assessed. Then training progress can be designed and methods can be selected. By resorting suitable methods training program is to be executed. The end of the training program evaluation takes place. Some organizations follow up the performance of employees and managers after a few months of concluding training programs. A model is proposed for training of employees and managers in the following diagram: Figure: Model of training and of an organization. Training Methods Once the organization's training needs have been identified, the human resources manager must initiate the appropriate training effort. Managers have available a variety of training approaches. The most common of these are on-the-job training methods, including job rotation, in which the employee, over a period of time, works on a series of jobs. thereby learning a broad variety of skills; internship, in which job training is combined with related classroom instruction, and apprenticeship, in which the employee is trained under the guidance of a highly skilled co- worker. Off-the-job training takes place outside the workplace but attempts to simulate actual working conditions. Off-the-job training may focus on the class room, with seminars, lectures, and films, or it may involve computer-assisted instruction (CAI), which can both reduce the time needed for training and provide more help for individual trainees. On-the-Job Training Methods 141 | H R M A comprehensive on-the-job training program may contain multiple methods. The training is imparted on the job and the employee gets training under the same environment where he has to work. This system is very cost effective and popular. The following methods of training fall under this category. 1. Coaching: This method involves teaching by a superior about the knowledge and skills of a job to the junior or subordinate. The superior points out the mistakes committed by the trainee and makes suggestions wherever and whenever necessary. 2. Understudy method: This method involves a superior providing training to his subordinate as his understudy. The chosen trainee subordinate is most likely to be promoted to the higher post after the retirement or promotion of his superior under whom he is receiving training. The trainee is the boss under making. It is a kind of mentoring to help the employee to learn the skills of superior position. 3. Position rotation or job rotation: This method involves movement of employees to different jobs to gain knowledge and functioning of various jobs within the organisation. The incumbent thus realises the problem and working of the job and develops respect for the fellow employees. Banks and insurance companies among service sector also follow this approach. This method is also known as cross training. 4. Job instruction training (JIT): In this method a supervisor explains the knowledge, skills and the method of doing the job to the trainee employee. The supervisor then asks the trainee to do the job himself. The supervisor provides the feedback. This is an effective method of training for the operative staff in the industrial establishment. 5. Committee assignment: In this method a committee consisting of a group of employees are given a problem and are invited to give solution. The employees solve the problem and submit the solution The objective of this method is to develop a teamwork among the employees. 6. Apprenticeship training: This type of training is essential for filling up positions requiring technical skills. The trainees are known as apprentices. The object is to improve them to perform efficiently the assigned job. The period of training ranges from one year to four years. The technical knowledge is given to the trainees in various trades. If there exists a vacancy in the unit the trainee is absorbed. During the training period a stipend is paid to the trainee. 7. Special meetings of the staff: Special meetings of the staff of the department are held periodically to discuss the problems faced by the employees at work and suggestions are invited to improve performance of the job. These meetings are conducted by taking a retreat from the work for a short while. Here employees and supervisors provide feedback. Off-the-Job Training Methods Under this system of training a trainee is taken off from the job and separated from his work situation so that he can fully concentrate on learning and acquiring the knowledge and skills related to the performance of job in a free environment. He is allowed to express freely. The following are some of the training methods under off-the-job category 1. Vestibule training: Under this method, training is provided in a classroom where the actual working situation is created. The tools and equipment, files and other related materials are 142 | H R M used in imparting knowledge and skills related to the job by actually performing it at the vestibule school. This system of training is mostly suitable for the staff of clerical and semiskilled grades. 1. Lecture method: Lecture is an age old and a direct method of providing instruction. Through lecture the information relating to rules, policies, procedures and methods is provided to the trainees. A large group of trainees can be addressed through the lecture method. It is a low cost method. 3. Role playing: This method of training is used for improving human relations and development of leadership qualities. The trainees get a description of a situation and a role of a managerial character they have to play. They have to play their role and provide a solution to the grievances or any such problem faced by supervisors in day to day activities. This method helps the trainee to develop insight into his behavior and deal with others accordingly. 4. Conferences and seminars: Conferences and seminars are the common methods of training. Participants gain knowledge and understanding by attending these conferences and seminars and actively participating in the proceedings. 5. Films and slide show: This is an effective technique of training. It is the medium through which information, knowledge and skills relating to job performance with demonstration can be presented more effectively than in other methods. Multimedia also can be utilized under this method. 6. Programmed instructions: This is the recently developed technique which is gaining popularity. The subject matter to be learned is condensed into logical sequence. The participant has to answer. The special feature of this technique is that it provides instant feedback. 7. University and college courses: Many colleges and universities run part time and evening specialized courses to suit the working class. Training aids and equipment in Bangladesh Training aids and equipment in HRM are tools and resources that help to facilitate the learning and development of employees in an organization. Some examples of training aids and equipment in HRM are: Overheads: These are transparent sheets that display text, images, or diagrams on a projector screen. They are useful for presenting information in a clear and concise manner. Short training videos: These are videos that show employees performing their work tasks safely or demonstrating best practices. They are useful for modeling desired behaviors and providing feedback. Photos and slides: These are visual aids that illustrate concepts, processes, or examples. They are useful for enhancing comprehension and retention of information. Flip charts: These are large sheets of paper that can be written or drawn on during the training session. They are useful for brainstorming, summarizing, or reviewing key points. 143 | H R M Video-taped examples: These are recordings of previous training sessions that can be reviewed with the learners. They are useful for evaluating performance, identifying strengths and weaknesses, and providing feedback. Chalkboards: These are boards that can be written or erased on using chalk. They are useful for explaining concepts, solving problems, or demonstrating techniques. Handouts: These are printed materials that provide additional information, exercises, or references for the learners. They are useful for supplementing the training content, reinforcing learning, or providing self-study resources. Home gyms: These are compact and versatile machines that allow employees to perform a variety of exercises at home. They are useful for improving physical fitness, health, and wellness. Core & abdominal trainers: These are devices that help employees strengthen their core muscles. They are useful for improving balance, stability, and coordination. Benches: These are platforms that provide a stable base for lifting weights. They are useful for building muscle mass, increasing power, and developing resistance. Technology: Technology is a broad term that encompasses various tools and devices that use digital or electronic systems to deliver or support training. Performance evaluation of training and development institutes in Bangladesh Bangladesh has several skill development institutes that offer a wide range of educational and training programs designed to help individuals acquire the knowledge and skills they need to succeed in today’s competitive global economy. Evaluating a training program is essential to determine its effectiveness and make improvements where necessary. There are several criteria and methods you can use to evaluate a training program. Here are some common criteria to consider: Knowledge Acquisition: Assess whether participants have gained the knowledge and skills taught during the training program. Skills Improvement: Measure improvements in practical skills, such as communication, problem-solving, technical proficiency, etc. Behavioral Changes: Evaluate whether participants have applied what they learned in the training to their work. This can be done through observation or self-assessment. Job Performance: Measure changes in job performance metrics, such as increased productivity, reduced errors, or improved customer satisfaction, which can be linked to the training. Return on Investment (ROI): Assess the financial impact of the training program. Compare the cost of training to the benefits, such as increased revenue or reduced expenses. 144 | H R M Manager/Supervisor Feedback: Collect feedback from supervisors or managers who work with the trained employees to determine if they have noticed improvements in performance or behavior. Competency Assessments: Use competency assessments to measure whether participants have reached the desired skill levels or competencies after the training. Comparative Analysis: Compare the performance of trained employees to a control group that did not receive the training, if possible, to determine the program's impact. Training Duration and Timing: Consider whether the training program's duration and timing are appropriate and if they accommodate the needs of the participants. Adaptability and Flexibility: Assess the program's adaptability to changing circumstances and the flexibility to accommodate individual learning styles and needs. Cost-Effectiveness: Evaluate whether the program's costs are reasonable in relation to the outcomes achieved and whether there are opportunities for cost savings or efficiency improvements. Compliance with Industry Standards: Ensure that the training program aligns with industry standards, certifications, or best practices, if applicable. It's important to tailor your evaluation criteria to the specific goals and objectives of your training program, as well as the nature of your organization and its unique needs. A wellrounded evaluation will provide insights into both the short-term and long-term effectiveness of the training. Inputs in Training & Development Any training and development program must contain inputs which enable the participants to gain skills, learn theoretical concepts and help acquire vision to look into the distant future In addition to these, there is a need to impart ethical orientation, emphasize on attitudinal changes and stress upon decision-making and problem-solving abilities. 1 Skills: Basic skills should be imparted to the workers, to help them operate the machinery and other equipment correctly, with least wastage and damage. 2. Education: It aims at teaching theoretical concepts along with providing a hands-on experience to the employee. It also improves their judgments and reasoning power 3. Development: Training involves development, wherein more stress is given on increasing knowledge rather than the skills. Here knowledge means an understanding of the business environment, human relations, management, etc. 4. Ethics: Ethics are the principles that regulate the conduct of employee, at the time of understanding any activity. So, the training and development program must provide knowledge regarding ethical conduct. 5. Change in Attitude: One of the important benefits of training is the attitudinal changes in employees Attitude indicates the feelings, Outlook, reaction and beliefs of the employee 145 | H R M towards others. It has a great impact on an employee's morale, motivation loyalty, commitment and satisfaction. 6. Extraordinary Skills: Apart from basic skills training and development scheme should impart some other skills to higher level employees such as problem-solving, decision making, industrial analysis etc. 7. Literacy: Here literacy is not related to education, but proficiency in the corporate language and he/she must be fully aware of the corporate culture, to deal was international clients and customers. In a nutshell, any activity that intends to enhance the present or future performance of an employee, by improving his/her ability through the process of learning, by changing approach. sharpening skills, strengthening competencies and increasing the knowledge base, comes under the ambit of training and development. Case study Reinventing the Wheel at Apex Door Company Jim Delaney, president of Apex Door, has a problem. No matter how often he tells his employees how to do their jobs, they invariably “decide to do it their way,” as he puts it, and arguments ensue between Jim, the employee, and the employee’s supervisor. One example is the door-design department, where the designers are expected to work with the architects to design doors that meet the specifications. While it’s not “rocket science,” as Jim puts it, the designers invariably make mistakes—such as designing in too much steel, a problem that can cost Apex tens of thousands of wasted dollars, once you consider the number of doors in, say, a 30-story office tower. The order processing department is another example. Jim has a very specific and detailed way he wants the order written up, but most of the order clerks don’t understand how to use the multipage order form. They simply improvise when it comes to a detailed question such as whether to classify the customer as “industrial” or “commercial.” The current training process is as follows. None of the jobs has a training manual per se, although several have somewhat out-of-date job descriptions. The training for new people is all on the job. Usually, the person leaving the company trains the new person during the 1- or 2-week overlap period, but if there’s no overlap, the new person is trained as well as possible by other employees who have filled in occasionally on the job in the past. The training is the same throughout the company—for machinists, secretaries, assemblers, engineers, and accounting clerks, for example. Questions 1. What do you think of Apex’s training process? Could it help to explain why employees “do things their way”? If so, how? 2. What role should job descriptions play in training at Apex? 3. Explain in detail what you would do to improve the training process at Apex. Make sure to provide specific suggestions, please. Previous Year Question 146 | H R M 2020 a. What is the role of job description in training Present the training program model? b. Define on-the-job & off-the-job training methods with example. Name and discuss the techniques of management development. c. How is training program evaluated? 2019 a. Explain why training is important in the modern industrial setup. b. State the model of training and development process with the help of a figure. c. What aids are usually used in the training institutes of Bangladesh? 2017 a. How would you identify the training needs of a manufacturing company? b. Discuss the various executive development programs. c. Find out the reason for training failure. 2015 a. Explain the meaning of training and development and bring out distinction among them. b. In your opinion, what are the points of importance of training in Bangladesh? c. Discuss in brief the various off-the-job methods of executive development. 147 | H R M CHAPTER 11 Job Evaluation Introduction to Job Evaluation Job evaluation is the systematic process of determining the relative value of different jobs in an organization. The goal of job evaluation is to compare jobs with each other in order to create a pay structure that is fair, equitable, and consistent for everyone. This ensures that everyone is paid their worth and that different jobs have different entry and performance requirements. Job evaluations are developed by HR, often together with workers unions and other social partners and commercial consultancy companies. Job evaluation requires some basic job analysis to provide factual information about the jobs concerned. The starting point is often the job analysis and its resulting job description. Based on this, the job is evaluated. One of the key criteria in the evaluation is the added value of the job to the organization. Based on this evaluation, the job is added to the job structure. The resulting structure ensures pay transparency and equity between gender and minorities. Thus, the components of job evaluation are – Job analysis, job description, job specification, job rating, money allocation, and employee classification. Management’s method to achieve equity in pay is job evaluation. It is the cornerstone of formal wage and salary program.The central purpose of job evaluation is to determine the relative worth of jobs of an enterprise. It thereby helps in establishing fair pay differentials among jobs. Some definitions of Job Evaluation 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”. 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.” In the absence of job evaluation, it may happen that high value jobs may receive less pay than low valued jobs. When the employees come to know about the differences, they may become dissatisfied. Job evaluation is the quantitative measurement of relative worth of job for the purpose of establishing wage differentials. It evaluates the job and not the job holder. Evaluating the job holder is the task of performance appraisal. 148 | H R M Objectives of Job Evaluation As organization constantly evolves and new organizations emerge there will be challenges to existing principles of job evaluation. Whether existing job evaluation techniques and accompanying schemes remain relevant in a faster moving and constantly changing world, where new jobs and roles are invented on a regular basis, remains to be seen. The formal points systems, used by so many organizations are often already seen to be inflexible. Sticking rigidly to an existing scheme may impose barriers to change. Constantly, updating and writing new jobs together with the time that has to be spent administering the job evaluation schemes may become too cumbersome and time consuming for the benefits that are derived. The objectives of job evaluation are enumerated below: ➢ To Analyse the Job Factors and Requirement: The process of job evaluation rest on job analysis in which two aspects of a job such as job description and job specification is studied. ➢ To Facilitate Comparison and Survey: Job evaluation involves compares of one job to other job within the organization or to similar jobs in other organizations. Moreover it provides information to the community also. ➢ To Eliminate Inequalities: For the job dissatisfaction or disputes, one of the reasons behind it is inequalities in base rates. Job evaluation evolves standard rates for similar or comparable jobs, so inequalities in base compensation are removed by this technique. Moreover, wages paid in similar organization are also considered. Job evaluation establishes the relative values, therefore automatically inequalities of base rate can be eliminated. ➢ To Solve Wage Controversies of Job Evaluation: Job evaluation provides a relative objective basis to resolving wage controversies involving comparative rates. It is a process by which management would be in position to adopt more rational and consistent wage and salary structure for their employees. ➢ To Eliminate Personal Prejudices: Job evaluation technique “rates the job and not the man” which balances the job and the employee. It helps in the elimination of personal prejudices in establishing rates by putting the rate structure on an objective basis. Moreover employee rating is done by the merits rating technique therefore there is no scope for personal prejudice. ➢ To Adopt a Definite and Clear Plan for Wage and Salary Administration: In this technique rates are established for the various jobs in an organization and it is a continuous process. Whenever the new job are designed or the old ones are redesigned, the existing wage and salary structure needs changes in it, by considering the internal and 149 | H R M external environmental forces. This job is done by this technique and organizations would be in position to adopt a definite and clear plan for wage and salary administration. Job Evaluation Benefits Companies can derive multiple benefits from job evaluations. They help organizations establish consistent, objective, and effective approaches for handling compensation, career development, and employee benefits. Discuss below these benefits in brief: 1. Supports Pay Equity Job evaluations help organizations monitor pay equity by allowing them to compare and analyze the value of each job. By taking into account external factors like competitive market salaries for similar roles, companies can make sure they are paying employees fairly based on the job's value to the organization. 2. Promotes Pay Transparency Job evaluation can help create greater pay transparency within an organization by making compensation structures clearer and easier to understand. This helps employees know what they are entitled to when it comes to salary and benefits, based on their background and experience. 3. Supports Recruitment and Retention Efforts Job evaluation can be a powerful tool for keeping pay competitive and on par with the job market. By evaluating all roles within the organization, employers can assess market trends and industry averages for similar positions. This keeps compensation up-to-date to attract top talent, as well as retain current employees by ensuring they are being paid fairly and competitively. 150 | H R M 4. Achieves a fair system of pay Job evaluation can develop an organisation-wide equitable grade and pay structure. Different pay structures suit different organisations: • • • • Narrow-graded structures typically consist of a sequence of job grades into which jobs of broadly equivalent value are placed. This structure usually includes 10 or more grades and pay ranges are attached to each grade. Broad-grade structures are similar to narrow-grade structures, but they have fewer and wider grades used for reference and to control progression. The job family structure allows different grade structures to co-exist. This enables organisations to have different pay arrangements for different families – particularly useful when you are operating in different labour markets that have vastly different pay practices. Pay spine structures are often found in the public sector and consist of a number of pay points. Job grades are aligned to the pay spine and the pay ranges for the grades are defined by the relevant pay points. The width of grades can vary and pay progression is normally based on length of service. Ensures pay levels are externally competitive Job evaluation can ensure that pay levels in the organisation for each role are externally competitive. Whilst matching job titles, brief descriptions, job capsules and job descriptions can be used in benchmarking roles, the framework provided by job evaluation grades is the most accurate way to match internal jobs to external market data sources and ensure that like is compared with like. Principles of job evaluation Job evaluation is a systematic process used by organizations to assess and determine the relative value or worth of different jobs within the organization. It helps establish a fair and equitable compensation structure, which is essential for attracting and retaining talent and maintaining internal equity. There are several key principles that guide job evaluation processes: 151 | H R M ➢ Equity and Fairness: Job evaluation aims to establish a fair and equitable ➢ ➢ ➢ ➢ compensation system, ensuring that jobs of equal value are rewarded similarly. It should be free from discrimination and bias. Systematic and Consistent: Job evaluation is a structured and consistent process. It should use a standardized methodology and criteria to evaluate jobs, ensuring that evaluations are not arbitrary or subject to personal biases. Job-Related Factors: The evaluation focuses on the attributes and requirements of the job itself, such as skills, responsibilities, and working conditions, rather than the individuals performing the job. Compensable Factors: Job evaluation typically considers compensable factors, which are the key elements that determine a job's value. Common compensable factors include skills, knowledge, responsibility, effort, and working conditions. Point Factor System: Many job evaluation methods use a point factor system, where each compensable factor is assigned a weight or points value. The total points for a job determine its relative value. ➢ Objective Data: Job evaluation relies on objective data and information about jobs, ➢ ➢ ➢ ➢ ➢ ➢ rather than subjective opinions or judgments. Data may come from job descriptions, interviews, or other sources. Job Descriptions: Accurate and up-to-date job descriptions are essential for job evaluation. They provide a detailed account of job duties, responsibilities, qualifications, and other relevant information. Involvement and Communication: It's important to involve employees, managers, and relevant stakeholders in the job evaluation process. Effective communication and transparency can help reduce misunderstandings and resistance. Legal Compliance: Job evaluation must comply with relevant labor laws and regulations to ensure non-discrimination, pay equity, and fairness in compensation. Market Consideration: While job evaluation primarily assesses internal job values, it may also consider external market data to remain competitive in terms of compensation and to attract and retain talent. Scalability and Flexibility: The job evaluation system should be scalable to accommodate changes in the organization's structure and flexible enough to adapt to evolving job roles. Regular Review and Updating: Job evaluation is not a one-time process. It should be periodically reviewed and updated to reflect changes in job roles, responsibilities, and market conditions. ➢ Cost Considerations: Job evaluation should consider the organization's budget and financial constraints, aligning compensation structures with the company's overall financial goals. ➢ Feedback Mechanisms: Establish feedback mechanisms to address concerns or disputes related to job evaluations and compensation decisions. ➢ Training and Education: Ensure that those involved in the job evaluation process receive appropriate training and education to conduct evaluations accurately and consistently. ➢ Documentation: Maintain thorough records of the job evaluation process, methodology, and outcomes for transparency and compliance purposes. Job evaluation is a complex process that requires careful planning and execution. These principles serve as a foundation for designing and implementing a fair and effective job evaluation system within an organization. 152 | H R M Difference between Job analysis and job evaluation Point of Job Analysis distinction Meaning Job analysis is the process of gathering and documenting detailed information about a particular job. Job Evaluation Job evaluation is the process of determining the relative value or worth of different jobs within an organization. Purpose Its primary purpose is to provide a It is primarily used for establishing a fair comprehensive understanding of the and equitable compensation structure. duties, responsibilities, requirements, and characteristics of a specific job. Scope Job analysis focuses on individual jobs within the organization. It aims to capture the specifics of each job, such as tasks, skills, qualifications, and working conditions. Job evaluation assesses the overall value of jobs in relation to one another, rather than focusing on the specific details of individual jobs. It aims to establish internal pay equity. Methods Job analysis is typically conducted through various methods, including interviews, observations, questionnaires, and review of job descriptions and task lists. It often involves direct input from employees currently performing the job. Job evaluation typically uses a systematic and standardized method, such as a point factor system or a job ranking system, to assign values to jobs based on predetermined compensable factors (e.g., skills, responsibilities, effort). Output The main output of job analysis is a detailed job description and job specification. These documents describe the job's essential functions, qualifications, responsibilities, and other relevant information. The output of job evaluation is a ranking or classification of jobs within the organization, often represented in the form of a job hierarchy or a pay structure. Jobs are grouped based on their value to determine appropriate compensation levels. Use Job analysis is used for a variety of HR functions, including recruitment, selection, performance appraisal, job design, and compliance with labor laws. It helps in creating accurate job descriptions and identifying the qualifications required for a job. Job evaluation is primarily used for setting compensation and pay scales. It helps organizations determine the relative worth of different jobs, allowing for the establishment of fair and competitive salary structures. 153 | H R M In summary, job analysis focuses on gathering detailed information about individual jobs, while job evaluation concentrates on assessing the relative value or worth of those jobs within the organization. Both processes are crucial for effective human resource management and compensation planning, but they serve different purposes and involve distinct methodologies. Job analysis provides the foundational information necessary for job evaluation, as it helps identify the key elements that are later assessed in the job evaluation process. Steps of job evaluation The job evaluation process involves four steps. These steps are planning and diagnosis, design & development, validation & modelling, and communication & roll-out. Phase 1. Planning & diagnosis In this phase, the job evaluation project is started with an initial workshop. During this workshop, the evaluation is scoped and approaches for evaluation are decided on. In terms of scope, decisions need to be made on cost, time constraints, the degree of rigor applied, administration, tooling & software, how much external help is required, how to build on previous projects, and how job evaluation will be used to support equal pay. The organization also needs to decide on their job evaluation scheme. There are multiple schemes with different degrees of customization. Proprietary: This is an existing framework, created by consultants. It has been tried and tested, is easy to implement, and requires low internal effort. The con is that it may not suit every organization and creates dependence on the supplier. Customized: This builds upon an existing framework like an (outdated) job framework that is already in place and builds on top of that. This provides a good starting point, leads to faster implementation, and helps to create employee buy-in. Its biggest con is that the framework needs to be sufficiently revised as it may otherwise not suit the organization. Tailor-made: This is a fully customized scheme, developed in-house with the help of external advisors. It leads to a great fit with the organization, the participatory process leads to buy-in and enables alignment with a competency framework. The drawback is that the process will take longer and is a costly exercise. Next, benchmark jobs are identified, data collection is planned, and a communication plan is created. Phase 2. Design & development In the next phase, the evaluation elements and levels are determined. This often happens through a workshop. In this phase, it is important to identify elements that are relatively timeless. Keep in mind: the job scheme is relevant for as long as the elements it is based on are relevant. Because of the cost and effort to create a job scheme, they could stay relevant for well over 25 years. Once this is all done, data on the different roles in the organization is collected. Phase 3. Validation & modelling 154 | H R M In the third phase, the results from the data collection are analysed and the weightings of the different elements are discussed. This may require some fine-tuning as initial definitions may skew the results. Next, a pay grade structure is drafted, and jobs are categorized. There will always be a set of jobs that do not match the pay grade structure. An example could be specialist roles in artificial intelligence and machine learning that are very scarce while crucial for the company’s future. These may have to be put on a different salary scale. The risk here is that these jobs may be much more abundant in say 10 years, so by then they may be overcompensated so this may have to be revised later. Phase 4. Communication & roll-out In the final phase of the job evaluation process, the structure is implemented. Best practices are to explain everyone affected why their pay grade structure may have changed. There should also be an opportunity to appeal decisions that are perceived as unfair. Here it is important to hear and investigate what employees have to say. This phase will be easier if there is buy-in from the organization. Also note, lowering salaries for workers may not be possible as wages could be protected under national labor laws or it may prompt people to leave the organization. Taking all of this into account will be an administrative challenge. Reasons for Job Evaluation Job evaluations are performed for these reasons. ➢ ➢ ➢ ➢ ➢ To determine what positions and job responsibilities are similar for purposes of pay, promotions, lateral moves, transfers, assignments and assigned work, and other internal parity issues. To determine appropriate pay or salary grades and decide other compensation issues To help with the development of job descriptions, job specifications, performance standards, competencies, and the performance appraisal system. To assist with employee career paths, career planning or career pathing, and succession planning. To assist the employee recruiting process by having in place job responsibilities that help with the development of job postings, the assessment of applicant qualifications, suitable compensation, and salary negotiation, and other factors related to recruiting employees. Purposes Job evaluation helps following purposes: (1) It helps in devising an acceptable wage, (2) It helps in proper placement of workers in job. (3) It helps the personnel department to recruit the right person for a job since requirement of each job are clearly indicated. (4) It helps in formulating the internal training plan. 155 | H R M (5) It helps to avoid wage and other discrimination for similar jobs in same organisation or a group of organisations under the same management. Limitations or disadvantages of Job Evaluation: In spite of the various advantages cited above, it will not be wise for management to place too much reliance on it. There are several limitations to this technique. For these limitations, some of the methods could not attract full support of both management and employees. However, some of the major limitations are briefly discussed as under: 1. Change of technology: Changes of technology hamper the program of job evaluation. Due to this change, coordination between job evaluation methods and variables become difficult. As a result organization cannot enjoy full benefit from the program. 2. Time consuming: It is a time-consuming process. For collecting information on much aspect, evaluating them by using different methods, it takes a substantial time. 3. Financial problem: After evaluation of jobs, employees usually deserve their appropriate scale. But incase of increased scale there may be short of funds in the organization and as such management may not give the expected benefits. 4. Partiality: As some evaluators are the sole authority during job evaluation, so their decisionmay deprive some employees due to bad relations or disloyalty. 5. Abuse of power: Job description may lead the employees to formalization of work sequence. As a result, tendency of abase of power may be shown. 6. Suspicion: Sometimes trade union may suspect the job evaluation program. This may happen due to imprudence and partiality of evaluators and reluctance to implement pay scale. 7. Proportion of incentive workers: When the numbers of incentive workers are big, and incentive schemes are frequently changed, the reasonable and acceptable pay scale may not be followed. 8. Avoiding other factors: Job Evaluation is not possible mechanically. But unfortunately, it happens in most of the cases. During job evaluation proximity to factory, transport facilities, participation in production and their human behavior are hardly considered. 9. Lack of Complete Accuracy: The accuracy claimed by it is not in fact accurate. The system considers the key factors independent of others which is not so in reality. Consequently, the weights assigned to the factors are also less accurate. This is particularly so if the factors are of highly technical in nature. 10.Unrealistic Assumptions: Job evaluation is based on the assumption that wage rates can be related to the work of a given job. It completely ignores the fact that conditions in the labour market exercise greater influence in the determination of wage rates. 11. Formation of the Committee: The formation of the job evaluation committee itself creates a serious problem. Only persons who are capable of evaluating the jobs should be appointed as committee members. Besides, there is also difference of opinion regarding the number of members. Authorities suggest 5 to 20 members. All these factors make the installation of a job evaluation programme more costly. 156 | H R M 12. Selection of a Suitable Method: The selection of a suitable method also posses a serious problem to the management. There are four methods and each method has its own merits and demerits. 13. Number of Factors: There is no clear-cut opinion amongst the scholars as to how many factors should be used and what weightage should be assigned to each factor. In many cases, 100 factors are used. This multiplicity of factors creates confusion and so precise results cannot be obtained. 14. Equal Pay for Equal Job: This system presumes that job of equal content will be equally attractive to the employees. But this presumption is unreal. For instance, a job offers little or no prospects for a rise or promotion; while another job rated similar to it, has better prospects for the workers; the latter will attract more than the former. Under such circumstances, the business firm has to pay more wages for the former job so as to make it more attractive. 15. Unsuitable for Small Concerns: Installing and operating a job evaluation program requires much time and money. Hence, it is very difficult to introduce it in smaller concerns. Methods of Job Evaluation Job evaluations are conducted to determine employee pay, the fairness of the pay, or their overall value in the company. There are various methods used to evaluate a job, including 1. Point method: This job evaluation method uses specific factors about the job to determine how much value they add to a job role. These factors are divided into different sectors, such as skills, responsibilities, and required effort. These factors are then assigned a numerical weightage. Finally, the overall factors or points for a specific job are added up and compared against other jobs to understand the value of the jobs. This method clarifies a job's internal value without considering market value. 2. Factor comparison method: This job evaluation method is similar to the point-factor method. However, instead of merely assigning a numerical weightage, a monetary value is assigned to each factor. Many organizations don't employ this method as it can become very complex. It can also be challenging to communicate the job values assigned to employees as they tend to be subjective. 3. Graphic rating scale method: Graphic rating scale method is a scale that lists a number of traits and a range of performance for each. The employee is then rated by identifying the score that best describes his or her level of performance for each trait. 4. Ranking method: Alternation ranking method is a method of ranking employees from best to worst on a particular trait. The manger or employee who get highest number is placed at the top rank. Similarly, the manger or employer who get lowest number may be ranked last. These their location in the pay structure may be determined. 5. Management by objectives (MBO): MBO methods involve setting specific measurable goals with each employee and then periodically reviewing the progress made. After furnishing all reasonable facilities, monitoring results regularly and taking necessary measures to avoid the lapses, the employees involved may be evaluated and placed at the appropriate levels of pay scale. 157 | H R M CASE STUDY ANALYSIS JOB EVALUATION FOR MANAGERIAL POSITIONS The Chairman of the Board of Directors of Jonadel Corporation has proposed that all managerial positions be included in the corporate the evaluation program. The idea came from several friends in other companies of the Chamber of Commerce and Industries where he is a member of the Board of Directors. The inclusion of managerial positions in the company’s job evaluation programs has been found successful and helpful. There are differences in the pay systems based on the job evaluation in these companies where the chairman is and has the greatest shares of stocks. In one of the special meetings of the Board of Directors, he proposed the idea to the chief Operating Officer. The Chief Operating Officer said that the programs be held in abeyance until he had consulted his line and operating managers who will be affected by the changes due to the job evaluation system that will be implemented. In the meeting called by the Chief Operating Officer, most of the managers opposed the idea. They argued that their positions cannot be rated with other positions due to the complexity of their responsibilities. They pointed out further the CEO that no job evaluators can possibly know the extent of their jobs and compare the same with subordinate positions. The objections of the managers were that the qualities for such positions were varied and salaries were differently structured based on experience and length of service in the company. The CEO, while being neutral, feared that if the job evaluation also include the positions of his line and operating managers, he would be losing his best people in the organization. He also thought that developing new managers takes time and those operations might suffer due to changes in the organizational system. The Human Resource Manager in his talk with the Chairman of the Board was in favor of the idea. He discussed the same with his staff and supported the idea of including the managerial positions. The CEO called the President to prepare a memorandum for the Human Resource Department to study the program and implement the Job Evaluation Program for managerial positions. The program should give details of the advantages of the program and the process of what is to be done and how it should be done. Problems: 1. The job evaluation for the managerial position might cause conflict between the managers who opposed this idea. 2. A potential of losing the best people in the company. 3. Managerial evaluation might cause re-construction of employees' positions. Previous Questions 1. Why is Job evaluation Performed? 2. Give a brief discussion of Job evaluation methods. 158 | H R M CHAPTER: 12 CAREER PLANNING AND DEVELOPMENT DEFINITION OF CAREER Certainly! A career is the path a person follows throughout their working life, encompassing the various jobs and roles they take on. It typically begins with education and training in a particular field, followed by seeking employment in that field. As one gains experience and skills, they may progress through different positions, often with increasing responsibility and compensation. 1. According to John L. Holland: "Career is the interaction of an individual and his or her environment as the person moves through a sequence of work roles." 2. According to Arthur J. Miller and Hal G. Giesbrecht: "A career is a sequence of separate but related work activities that provide continuity, order, and meaning in a person's life." 3. According to Anne Roe: "A career is the course of a person's life, especially when viewed as the sum of personal and professional experiences." From above all the definition ,A career is the lifelong, evolving sequence of work-related experiences and roles, including education, training, paid and unpaid work, and personal experiences, which provide continuity, order, and meaning in a person's life as they interact with their environment and move through various work roles. DEFINITION OF CAREER PLANNING Career planning is the process of setting and managing personal and professional goals, as well as making informed decisions regarding one's education, training, and work experiences to effectively navigate and shape their career trajectory. 1. According to John L. Holland: "Career planning is the process by which individuals consciously select a career or occupation, and make a commitment to it by investing the necessary time, effort, and resources to be successful.’’ 2. According to Edwin B. Flippo: "Career planning is the deliberate process through which a person becomes aware of personal career-related attributes and the lifelong series of jobs that contribute to a person's career fulfillment. In summary, career planning is about self-discovery, research, goal-setting, and strategic planning to build a successful and satisfying professional life. It's a journey that can lead to a fulfilling and rewarding career. BENEFIT OF CAREER PLANNING: 159 | H R M Career planning offers numerous benefits that can help individuals make informed decisions and achieve their professional goals. Here are some of the key benefits of career planning: 1. Clarity: Career planning helps individuals gain a clearer understanding of their strengths, interests, and values. It provides clarity on what kind of work aligns with their personality and aspirations. 2. Goal Setting: It allows individuals to set specific, achievable career goals. These goals give direction and purpose to one's professional life, making it easier to stay motivated and focused. 3. Skill Development: Career planning can identify areas where individuals need to develop skills or gain further education or training. This promotes continuous learning and personal growth. 4. Decision-Making: It helps individuals make well-informed decisions about their career path, such as choosing the right educational programs, job opportunities, or industries that suit their preferences. 5. Increased Job Satisfaction: When individuals choose careers that align with their interests and values, they are more likely to enjoy their work, leading to higher job satisfaction and overall happiness. 6. Better Time Management: Career planning involves setting timelines and priorities, which can improve time management skills. This can be particularly beneficial when pursuing education, certifications, or specific career milestones. 7. Increased Confidence: Career planning boosts self-confidence as individuals see progress in their professional development and reach their career goals. 8. Job Security: A well-thought-out career plan can make individuals more adaptable and resilient in the face of economic changes, helping them navigate career transitions or job market fluctuations. 9. Personal Fulfillment: Ultimately, career planning can lead to a sense of personal fulfillment and accomplishment as individuals pursue careers that resonate with their passions and values. In summary, career planning is a valuable process that not only helps individuals make informed choices about their professional lives but also enhances their overall well-being and success in the long run. GUIDELINES FOR CAREER PLANNING Successful career planning depends of some valuable guidelines. These guidelines are supposed to be followed by both the organization and individual. London and Stuff have identified eight guidelines for successful career planning. These are discussed and glanced in the following diagram:1. Establishment of career path: Firstly, career path should be established. 2. Feedback of achievement and potentiality: What the employees have performed that is to be given as feedback for achieving the goals of career planning. 3. Development of practical expectations: Practical hopes and expectations should be identified and met for successful implementation of career planning. 4. Analysis of personal and organizational responsibility: Personal and organizational responsibilities should be identified for effective formulation of career planning. 5. Collection of data: Relevant information and data are to be collected from the accurate sources so that an acceptable career planning maybe made. 6. Adjusting employee and jobs: There must be adjustment between employees and their jobs. Otherwise, formulation of career planning may be affected. 160 | H R M 7. Systematic and flexibility: Career planning should not be made without systematic thought and flexibility. These can hamper it formulation and execution of planning. 8. Adjusting with other personnel frustrations: Career planning should match with other human resource management functions as recruitment, selection, promotion etc. If all these guidelines are followed in toto, we can hope that a good career plan may be made. Not only that career planning may also be executed and desired result may be achieved. CAREER PLANNING PROCESS Career planning may be considered from two perspectives. If career planning is made successfully both the perspectives may be fulfilled. Otherwise, one will be benefited and another will be affected. These two perspectives are: 1. career planning by individual: Individuals employed in the organizations take initiatives to formulate their career plans. They take initiatives at their own. Before taking the initiatives, they consider their ultimate goals, hopes, aspirations, skills and capabilities. At this stage individuals decide in which area they will increase their professional standard, how they will increase, when they will increase and where they will increase? After taking answers to these questions, they can proceed to make a pragmatic career planning. 2. Career planning by organisation: For making careers of the human resources organisations can also contribute a lot. planning steps are taken by an employee himself or by an organisation itself. The process of career planning typically involves several key steps: a) Self-Assessment: Evaluate your interests, strengths, weaknesses, values, and skills to understand yourself better. b) Exploration and Research: Research various industries, job roles, and career paths that align with your skills and interests. c) Setting Goals: Establish short-term and long-term career goals that are specific, measurable, achievable, relevant, and time-bound (SMART goals). d) Skill Development: Identify the skills and qualifications required for your desired career and work on acquiring or enhancing those skills. e) Networking: Build and maintain a professional network by connecting with colleagues, mentors, and professionals in your field of interest. f) Education and Training: Pursue further education, certifications, or training programs that can enhance your qualifications and knowledge. g) Gaining Experience: Seek internships, part-time jobs, or volunteer opportunities to gain practical experience in your chosen field. h) Adaptability and Flexibility: Stay open to new opportunities, be adaptable to changes, and reassess and adjust your plans as needed. i) Regular Review: Continuously review and adjust your career plan as your interests, skills, and the job market evolve. This ongoing process helps individuals navigate their career paths, make informed decisions, and progress towards their professional goals. JOBS AND CAREER IN HRM A career in Human Resource Management (HRM) offers a wide range of opportunities. Here are some common job roles and career paths in HRM: 161 | H R M 1) HR Generalist: HR generalists handle various HR tasks such as recruitment, employee relations, performance management, and policy development within an organization. 2) Recruitment Specialist: These professionals focus on finding and hiring the right candidates for job openings through sourcing, interviewing, and onboarding. 3) Compensation and Benefits Manager: They design and manage employee compensation packages, including salary, bonuses, and benefits like healthcare and retirement plans. 4) HR Manager: HR managers oversee the HR department, ensuring compliance with labor laws, employee training and development, and fostering a positive workplace culture. 5) Training and Development Specialist: These specialists design and implement training programs to enhance employee skills and knowledge. 6) Employee Relations Manager: They manage employee conflicts, address workplace issues, and foster a positive working environment. 7) Organizational Development Consultant: These professionals work to improve an organization's efficiency, culture, and effectiveness through strategic planning and change management. 8) HR Information Systems (HRIS) Manager: They manage HR software and technology systems to streamline HR processes and data management. 9) Labor Relations Specialist: Labor relations specialists focus on the relationship between employers and labor unions, negotiating collective bargaining agreements and resolving disputes. 10) Diversity and Inclusion Manager: These professionals promote diversity and inclusivity within an organization, helping create a diverse and equitable workplace. To succeed in HRM, you'll need skills in communication, problem-solving, conflict resolution, and a good understanding of employment laws and regulations. Many HR professionals start with a bachelor's degree in HR, business, or a related field, and some pursue HR certifications such as SHRM or HRCI. HRM offers a dynamic and rewarding career with opportunities to make a positive impact on an organization's success and its employees' well-being. DEFINITION OF CAREER DEVELOPMENT Career development refers to the ongoing process of managing and planning one's professional life. It involves the progression and advancement of an individual's career through various stages, including skill development, learning, goal setting, and the exploration of opportunities. Career development encompasses activities such as self-assessment, setting career goals, acquiring new skills, gaining experience, networking, and making strategic decisions to progress in a chosen field or occupation. A few definitions of different scholars as given below: 1) Werther and Davis: "Career development is comprised of those experiences and personal improvement that one undertakes to achieve a career plan". 2) William F. Glueck : "Career development is the process by which an enterprise plans the development of employee in order to meet its need and at the same time fulfill their need for a satisfying work life". 3) John B. Miner and Mary G. Miner: "Career development becomes the matter of caring out what has been planned". 162 | H R M Now we can define career development as a strategy for determining the plan about what an employee wants to do in his working life and how he can implement that plan for the survival with competence and strength in the organization CAREER DEVELOPMENT IN INDIVIDUAL PERSPECTIVES Career development can be dealt with individual perspectives. Many individuals try to develop their career at their own. The individuals who are highly ambitious to develop their career are hankering after for the purpose. Of course, organizational support may give them opportunity to fulfill the objective. Some employees do not bother for caree development as they are highly paid or have no high ambitions. Following are the features of career development from the Individual perspectives, In Bangladesh, there features may be applicable: 1) 2) 3) 4) 5) 6) 7) 8) 9) Career can be planned and developed from the individual perspective. The individual himself plans it. It depends on the quality of individual. It also depends on individual ability. It depends on academic background. It can contribute to career development. It meets up the organizational needs. It determines individual interest. It needs environmental support. CAREER DEVELOPMENT IN AN ORGANIZATIONAL PERSPECTIVE Career development is often viewed through an individual lens, where personal ambitions and goals take center stage. However, when we shift the focus to the organizational perspective, we unearth a profound connection between an individual's career growth and the success of the company or institution to which they belong. This chapter delves into the significance of career development from an organizational standpoint, and the strategies HR professionals can employ to harness its potential for mutual benefit. DIFFERENCE BETWEEN INDIVIDUAL AND ORGANIZATIONAL CAREER In the field of Human Resource Management, understanding the distinctions between individual and organizational career development is crucial. While both are interconnected, they serve different purposes and involve distinct approaches. This chapter delves into these differences to provide HR professionals, students, and readers with valuable insights. Here are the differences between these two are discussedIndividual Career Development: Individual career development refers to the process in which an individual takes intentional steps to plan, manage, and advance their own career. It's a self-directed journey where a person assesses their skills, interests, and goals and takes actions to achieve career growth and personal fulfillment. Here are the key elements of individual career development: 1. Focus on the Employee: Individual career development primarily centers on the personal and professional growth of the employee. It is driven by the employee's aspirations, skills, and ambitions. 163 | H R M 2. Self-Initiated: Individuals are responsible for their career growth. They set personal goals, seek opportunities, and make choices to advance in their careers. 3. Self-Reflection: It begins with self-assessment, where individuals evaluate their strengths, weaknesses, interests, and long-term career goals. 4. Goal Setting: After self-assessment, individuals set specific career goals and objectives, such as acquiring new skills, seeking promotions, or changing career paths. 5. Continuous Learning: Successful career development involves a commitment to ongoing learning and adaptation to keep up with industry changes and personal growth. 6. Work-Life Balance: Balancing career goals with personal life is vital for overall wellbeing. This includes maintaining a healthy work-life balance. 7. Motivation and Aspiration: It is heavily influenced by an individual's motivations, passions, and long-term career aspirations. Employees often seek personal fulfilment, skill enhancement, and financial rewards. 8. Flexibility: Individual career development allows for a high degree of flexibility. Employees can change career paths, switch industries, or explore different roles based on their interests and goals. 9. Personal Development: The emphasis is on personal development, skill acquisition, and continuous learning. Training and education are often self-directed or at the employee's discretion. Organizational Career Development: Organizational career development, on the other hand, focuses on how companies and institutions support and facilitate the growth and advancement of their employees within the context of the organization. Here are the key elements of organizational career development: 1. Focus on the Organization: Organizational career development is centered around the needs and goals of the company or institution. It aligns employees' skills and aspirations with the organization's objectives. 2. Company-Initiated: Employers play a significant role in shaping an employee's career path within the organization. They offer training, mentorship, and growth opportunities. 3. Structured Progression: Companies often have defined career paths and job roles with clear steps for advancement. Employees follow a structured trajectory as they grow within the organization. 4. Succession Planning: It often involves succession planning, identifying high-potential employees and grooming them for leadership positions within the organization. 5. Structured Progression: Organizational career development typically follows a more structured progression within the company, with defined career paths and job roles. 6. Training and Development Programs: Employers invest in training and development programs to enhance their employees' skills and knowledge. This can include workshops, courses, mentorship programs, and on-the-job training. 7. Performance Appraisals: Regular performance evaluations are conducted to assess employee progress and provide feedback. These assessments help identify areas for improvement and growth. 8. Career Pathing: Companies help employees understand potential career paths within the organization, making it clear how they can advance and what skills they need to develop. 9. Skill Alignment: The focus is on aligning an employee's skills with the current and future needs of the organization, ensuring that the company has a skilled and capable workforce. Individual and organizational career development are interconnected, and organizations can benefit from employees who actively manage their careers.HR professionals should facilitate a balance between individual career goals and organizational needs to create a win-win 164 | H R M situation for both parties. Effective career development programs should be flexible and tailored to meet the individual and organizational objectives, helping employees realize their potential while contributing to the company's growth. BENEFITS OF ORGANIZATIONAL CAREER DeCenzo & Robbins discussed a few benefits of organizational career in their book Human Resource Management. These benefits have been categorized into few points. Assuming that an organization already provides extensive employee development programs, why should it need to consider a career development program as well? A long- term career focus should increase the organization's effectiveness in managing its human resources. More specifically, we can identify several positive results that can accrue from a well-designed career development program. 1. Needed talent: Career development efforts are consistent with, and are a natural extension of strategic and employment planning. Changing staff requirements over the intermediate and long term should be identified when the company sets long term goals and objectives. Working with the individual employees to help them align their needs and aspirations with those of the organization will increase the probability that the right people will be available to meet the organization's changing staff requirements. 2. Improvement of organizations ability: Outstanding employees will always be scarce, and there is usually considerable competition to secure their services. Such individuals may give preference to employers who demonstrate in concern for their employee's future. If already employed by an organization that offers career advice, these people may exhibit greater loyalty and commitment to their employer. Importantly, career development appears to be a natural response to the rising concern by employees for the quality of work life and personal life planning. As more individuals seek jobs that offer challenge, responsibility, and opportunities for advancement, realistic career planning becomes increasingly necessary. 3. Benefits of minorities and women: Equal employment opportunity legislation and affirmative action programs have demanded that minority groups and women receive opportunities for growth and development that will prepare them for greater responsibilities within the organization. The fair employment movement has served as catalyst to career development programs targeted for these special groups. 4. Reducing employee frustration: Although the educational level of the work force has risen, so, too have their occupational aspirations. However period of economic stagnation and increased concern by organizations to reduce costs have also reduced opportunities. This has increased frustration in employees who often see a significant disparity between their aspiration and actual opportunities. 5. Enhances cultural diversity: The work force in the next decade will witness a more varied combination of race, nationality, sex and values in the organization. Effective organizational career development provides access to all levels of the organization for more varied types of employees. Extended career opportunities make cultural diversity, and the appreciation of it, an organizational reality. 6. Promotion of organizational goodwill: If employees think their employing organizations are concerned about their long-term well being, they respond in kind by projecting positive images of the organization into other areas of their lives (e.g. voluntary work in the community). 165 | H R M PURPOSES OF CAREER DEVELOPMENT Career development programs may be undertaken for the achievement of many purposes. In most of the cases organizations undertake these programs. The purposes are briefly discussed in the following paragraphs. 1. To help achieve effectiveness: The first and foremost objective of career development is to assist the achievement of both individual and organizational effectiveness and success. Thus employee skills, efficiencies may be increased. 2. To prepare equal opportunity programs: Career development program ensures equal opportunity for all levels and types of employees. It also protects interests of employees from discrimination. 3. To reduce obsolescence: Obsolescence in regard to human resources can damage all good deeds of the organization and may fail to achieve organizational goal in time. Through career development program, this type of human obsolescence may be reduced and psychological and physical development may take place. 4. To increase morale: Another objective of career development is to enhance morale of employees by giving them opportunities for training, higher assignment and transfer to big offices or cities. 5. To attract committed people: Organization needs skilled and committed human resources for its proper functioning. Realistic career development program attracts and retains such people in the organization. 6. To create image: Image and goodwill are two lucrative things for every organization with a view to create image and goodwill and show the positive role to the society, organizations initiate career development programs. 7. To ensure success: Every individual wants success. Career helps earn success. Employees thus try to develop their career for the future day's success and to take part in the organization development activities. 8. To fulfil the ego needs: High career helps fulfill the ego and fulfillment needs. Career development efforts guide the employees to fulfill ego needs. The above discussion focuses the purposes or objectives of career development through some points. But these points are not the all. Many other points can express the objectives of career development. FUNCTIONS OF INDIVIDUALS CAREER DEVELOPMENT Individuals play a significant role in their own career development through various functions: 1. Self-Assessment: Understanding one's skills, interests, values, and personality to align with suitable career paths. 2. Goal Setting: Defining short-term and long-term career objectives to provide direction and motivation. 3. Skill Development: Continuously acquiring and honing skills relevant to current and future career opportunities. 4. Networking: Building and maintaining professional relationships to gain knowledge, opportunities, and support. 5. Career Exploration: Researching different industries, job roles, and paths to make informed decisions about career choices. 6. Adaptability and Resilience: Being flexible and adaptable to changes in the job market, as well as resilient in the face of setbacks or challenges. 7. Decision-Making: Evaluating options, weighing pros and cons, and making informed decisions about career moves. 166 | H R M 8. Professional Branding: Creating a personal brand through resumes, social media presence, and other professional platforms. 9. Continuous Learning: Embracing lifelong learning through courses, workshops, and experiences to stay relevant in a dynamic job market. 10. Self-Advocacy: Speaking up for oneself, seeking opportunities, negotiating salaries, and advocating for career advancement. 11. Job Performance: The employee should perform his assigned job rightly at right time. This is his first and foremost duty. Otherwise, he may lose his scope of career development. 12. Growth Opportunities: This includes promotions, higher assignment and training. Otherwise, the employee can not avail the scope of career development. These functions collectively empower individuals to take an active role in their career development, shaping their professional journey. ORGANIZATIONAL CAREER DEVELOPMENT Organizational career development involves activities and support provided by employers to facilitate the growth and advancement of their employees within the company. Key functions include: 1. Training and Development Programs: Offering workshops, courses, and training sessions to enhance skills and knowledge, aligning with both individual and organizational goals. 2. Career Pathing and Planning: Providing guidance on potential career paths within the organization, highlighting opportunities for advancement. 3. Mentorship and Coaching: Pairing employees with mentors or coaches who offer guidance, advice, and support in career development. 4. Succession Planning: Identifying and preparing employees for higher-level positions to ensure a pipeline of qualified individuals for key roles. 5. Performance Feedback: Offering regular feedback on an employee's performance to help them understand their strengths and areas for improvement. 6. Job Rotation and Enrichment: Allowing employees to explore various roles within the organization to gain diverse experiences and skills. 7. Support for Further Education: Encouraging and sometimes financially supporting employees' pursuit of higher education or certifications relevant to their role. 8. Work-Life Balance Initiatives: Implementing policies and programs that support a healthy balance between work and personal life, contributing to overall career satisfaction and growth. 9. Recognition and Rewards: Acknowledging and rewarding employee achievements and contributions to motivate and retain top talent. 10. Diversity and Inclusion Initiatives: Promoting a diverse and inclusive environment, providing opportunities for all employees to excel regardless of background, contributing to a well-rounded workforce. Organizational career development initiatives aim to not only foster the growth and satisfaction of individual employees but also to create a workforce that is skilled, engaged, and committed to the organization's success. CHALLENGES IN ORGANIZATIONAL CAREER DEVELOPMENT 167 | H R M While the advantages of organizational career development are clear, it's not without its challenges. A few key obstacles include: 1. Budget Constraints: Many organizations operate under budget constraints that can limit their ability to implement comprehensive career development programs. Balancing the need for effective development with budgetary limitations is an ongoing challenge. 2. Diverse Workforce: Organizations today have increasingly diverse workforces, each with unique aspirations and goals. HR professionals must navigate the varied career development needs of this diverse employee base. 3. Alignment with Organizational Goals: Ensuring that individual career development aligns with the strategic goals of the organization is a complex task. It requires close monitoring, adaptation, and a commitment to keeping the two in harmony. Incorporating career development into an organizational perspective is not just an investment in employees; it is an investment in the long-term success of the company. HR professionals occupy a pivotal role in designing and implementing strategies that support individual and organizational growth, creating a win-win scenario where employees thrive, and organizations prosper. The synergy between individual and organizational career development epitomizes a modern approach to human resource management, one that reflects the dynamic nature of today's workplaces and the enduring potential for collective success. CORPORATE CAREER DEVELOPMENT INITIATIVE Many corporations implement career development initiatives to support the growth and advancement of their employees. Here are some common corporate career development initiatives: 1. Training and Development Programs: Companies offer training sessions, workshops, and courses to enhance employees' skills and knowledge, helping them stay competitive and advance in their careers. 2. Mentorship Programs: Establishing mentorship programs connects employees with experienced professionals who can provide guidance, share insights, and help them navigate their career paths. 3. Leadership Development Programs: These programs identify high-potential employees and provide them with training and experiences to prepare for leadership roles within the organization. 4. Career Pathing: Companies can provide clear career paths, outlining the steps and skills needed to advance within the organization. This helps employees set goals and plan their careers. 5. Performance Reviews and Feedback: Regular performance evaluations and feedback sessions help employees understand their strengths and areas for improvement, allowing them to make informed career decisions. 6. Skills Development Budgets: Some companies allocate budgets for employees to attend conferences, workshops, or courses to develop new skills or enhance existing ones. 7. Job Rotation: Encouraging employees to take on different roles within the company can provide them with a broader skill set and a better understanding of the organization as a whole. 8. Internal Job Postings: Posting job openings internally before seeking external candidates allows current employees to explore new opportunities and advance within the organization. 168 | H R M 9. Cross-Functional Teams: Participation in cross-functional teams or projects exposes employees to different parts of the business, helping them gain diverse experience. 10. Employee Assistance Programs: These programs provide support for personal and professional challenges that may impact an employee's career, such as stress or worklife balance. 11. Succession Planning: Companies identify and groom potential successors for key roles, ensuring a smooth transition when senior employees retire or move on. 12. Diversity and Inclusion Initiatives: Promoting diversity and inclusion in the workplace encourages employees from diverse backgrounds to advance in their careers and contribute to the organization's success. 13. Tuition Assistance: Providing financial support for employees pursuing higher education or additional certifications can help them enhance their qualifications. 14. Promotion Policies: Clear and fair promotion policies ensure that career advancement is based on merit and performance. 15. Employee Resource Groups (ERGs): ERGs allow employees with common interests or backgrounds to connect and support each other's career development. These initiatives vary by organization and industry, but they all aim to help employees reach their full potential, contribute to the company's success, and remain engaged in their careers. FACTORS INFLUENCING CAREER DEVELOPMENT In Human Resource Management (HRM), several factors can significantly impact career development. These include: 1. Training and Development Programs: Opportunities for skill enhancement and professional growth can influence career development in HRM. 2. Performance Management Systems: Clear performance evaluations and feedback mechanisms can guide employees in their career paths within HRM. 3. Mentorship and Coaching: Access to experienced mentors and coaches can play a pivotal role in guiding individuals through various stages of their HRM careers. 4. Organizational Culture: A supportive and inclusive work environment that values employee well-being and fosters diversity can positively impact career progression in HRM. 5. Promotion Policies: Transparent and fair promotion policies that consider both merit and experience can motivate employees to excel in their HRM careers. 6. Opportunities for Leadership Roles: Access to leadership roles and responsibilities can provide employees with the chance to demonstrate their potential and drive their career advancement in HRM. 7. Market Trends and Technological Advancements: Staying updated with the latest market trends and technological advancements in HRM can help employees adapt and grow within the field. These factors collectively contribute to shaping the career development opportunities and trajectories in the field of Human Resource Management. MANAGING CAREER For managing career of employees, some suggestions can be helpful. First of all methods of managing career are divided into two. These two points are discussed below: 1. Making the career decisions. 169 | H R M 2. Achieving the career objectives. These two points can be discussed one by one by subdividing them into several stepsMaking your career decisions: The best career choice is the choice that offers the best match between what you want out of life and what you need. Good career choice outcomes should result in a series of positions that give you an opportunity to be a good performer. 1. Identify and organize skills: At first, we have to identify and organize skills. The best place to begin is by drawing up a profile or your educational record. List each school attended from/high school. What courses do you remember as liking most and least? In what courses did you score highest and lowest? 2. Convert this information into general career: The next task is to convert this information into general career. By completing sets 1, you should now have some insights into your interests and abilities. What you need to do now is look at how these can be converted into the kind of organizational setting or field of endeavour with which you will be a good match. Then you can become specific and identify distinct job goals. 3. Test your career Possibilities: The final step in this self-assessment process is testing your selection against the realities of the market place. This can be done by going out and talking with knowledgeable people in the fields, organizations, or jobs you desire. B. Achieving career goals: We, as many authors, wish we had a foolproof process to give you. Nothing would make our jobs easier that if we could say emphatically, follow these steps and you'll be guaranteed career success. But that's not to imply that achieving your career goals are left simply to chance. Some achieving career goals are discussed below: 1. Select first work judiciously: All first jobs are not alike. Where you begin in the organization has an important effect on your subsequent career progress. Specifically, evidence suggests that if you have a choice, you should select a powerful department's the place to start your career. 2. Do good work: Good work performance is necessary condition for career success. Without it, the probability of successful career is low. But your good work performance, is not guarantee of success. 3. Present the right image: Assuming that your work performance is in line with other successful employees, the ability to align your image with that sought by the organization is certain to be interpreted possibility. 4. Learn the power structure: The authority relationships defined by the organization's formal structure, as shown by an organizational chart explain only part of the influence patterns within an organization. 5. Gain control of organizational resources: The control of scarce and important organizational resources is a source of power. They make you more valuable to the organization and therefore more likely to gain. job security and advancement. 6. Stay visible: Because the evaluation of performance effectiveness can subjective, it's important that your boss and those 'in power 'in the organization be made aware of your contributions. 7. Find a mentor: This item is so important it needs to be singled out, remember mentor is someone from whom you can learn and who can encourage and help you. The evidence indicates that finding a sponsor who is part of the organization's power core is essential for you to make it to grow in your career. 170 | H R M 8. Support your boss: Your immediate future is in the hands of your boss. He or she evaluates your performance, and you're unlikely to have enough power to successfully challenge this supervisor. 9. Think of your career in terms of skills: Organizations need employees who can readily adapt to the demands of the rapidly changing marketplace. If employees who don't add value to an organization are the ones whose jobs (and career advancement) are in jeopardy. 10. Work harder than ever: Our final suggestion is based on the recognition that having a network of friends, colleagues, neighbours, customers, suppliers, etc. can be a useful tool for career development. PROBLEMS OF CAREER PLANNING & DEVELOPMENT Career planning and development can be challenging for individuals due to various factors and problems, including: 1. Uncertainty: The future is unpredictable, and this uncertainty can make it difficult to plan for a career. Economic fluctuations, technological advancements, and changes in industry demand can affect career choices. 2. Lack of Information: Many individuals struggle with career planning because they may not have access to adequate information about various career options, job market trends, or educational pathways. 3. Changing Goals: Personal interests and goals may change over time, leading to shifts in career aspirations. It can be challenging to align long-term career plans with evolving objectives. 4. Skills Mismatch: Sometimes, individuals may not have the skills or qualifications required for their desired career. This can necessitate additional education or training, which can be a barrier. 5. Work-Life Balance: Balancing career aspirations with personal life and family responsibilities can be a significant challenge, especially for those seeking to climb the corporate ladder or pursuing demanding careers. 6. Discrimination and Bias: Discrimination based on factors such as gender, race, age, or disability can hinder career development for some individuals, despite their qualifications and skills. 7. Economic Barriers: Financial constraints, such as the cost of education or training, can limit career opportunities for those who cannot afford the necessary investments. 8. Networking: Building a professional network is essential for career development, but not everyone has equal access or ability to establish valuable connections. 9. Mental Health: Stress and mental health issues can impact career planning and development. High-pressure careers or periods of unemployment can take a toll on mental well-being. 10. Lack of Guidance: Not having access to career guidance or mentorship can hinder individuals from making informed decisions about their career paths. To overcome these challenges, individuals often benefit from seeking guidance, continuously learning and adapting, and remaining flexible in their career plans. It's important to set realistic goals and be open to new opportunities and challenges. BENEFITS OF CAREER PLANNING & DEVELOPMENT 171 | H R M Career planning and development offer numerous benefits to individuals at various stages of their professional lives. Some of these benefits include: 1. Clarity and Direction: Career planning helps individuals gain a clear understanding of their goals, strengths, and interests, allowing them to set a clear direction for their career path. 2. Goal Achievement: It enables individuals to set specific, achievable career goals and develop a roadmap to reach those goals. 3. Skill Enhancement: Career development often involves acquiring new skills and knowledge, which can lead to personal and professional growth. 4. Increased Job Satisfaction: When individuals align their careers with their passions and values, they are more likely to find job satisfaction and happiness in their work. 5. Higher Earning Potential: Career development can lead to higher earning potential, whether through promotions, salary increases, or job changes. 6. Improved Job Security: Continuous development and adaptability in one's career can enhance job security, making individuals more resilient in the face of economic or industry changes. 7. Career Progression: Planning and development can pave the way for career advancement and progression, including moving into leadership roles. 8. Networking Opportunities: Building a professional network is an integral part of career development, which can open doors to new opportunities and collaborations. 9. Work-Life Balance: Effective career planning can help individuals choose career paths that align with their desired work-life balance and personal priorities. 10. Personal Growth: Career development often involves personal growth and selfdiscovery, leading to increased self-confidence and resilience. In summary, career planning and development help individuals make informed decisions, reach their career goals, and lead fulfilling, successful professional lives. These benefits extend to personal growth, financial security, and overall life satisfaction. CAREER DEVELOPMENT STAGES Career development typically progresses through various stages, each characterized by different tasks, challenges, and opportunities. Here are the common stages in a career: 1. Exploration: This initial stage involves exploring different career options, understanding personal interests, skills, and values. It's a period of self-discovery and research into various professions and industries. 2. Establishment: This stage begins with entering the workforce and building a foundation in a chosen field. It involves gaining experience, learning job responsibilities, and developing professional networks. 3. Mid-Career: This stage often involves advancement in one's field. Professionals tend to have a clear understanding of their strengths, and they might aim for promotions, take on more responsibilities, or seek lateral moves to broaden their expertise. 4. Maturity: At this stage, professionals are experienced and hold positions of significant responsibility. They might mentor younger employees, manage teams or projects, and focus on sustaining their success. 5. Decline or Transition: Toward the end of a career, individuals might start preparing for retirement or transition into roles that require less stress or responsibility. Some may use their expertise in advisory or consulting roles. It's important to note that not everyone follows a linear path through these stages. Some may change careers entirely or experience cycles of re-evaluation and change at different points in their professional lives. Additionally, external factors such as economic changes, 172 | H R M technological advancements, or personal life events can significantly influence the progression through these stages. GUIDELINES FOR EFFECTIVE CAREER DEVELOPMENT 1. Self-assessment: Understand your skills, strengths, weaknesses, interests, and values. This self-awareness will help you make informed career choices. 2. Set clear goals: Define your short-term and long-term career objectives. Having a clear direction will guide your decisions and actions. 3. Skill development: Continuously acquire and improve relevant skills. This might involve formal education, training, or self-study. 4. Networking: Build and maintain a professional network. Networking can provide opportunities, mentorship, and valuable insights. 5. Seek feedback: Regularly ask for feedback from supervisors, peers, and mentors. Constructive criticism can help you grow. 6. Adaptability: Be open to change and willing to adapt to new opportunities or challenges. Stagnation can hinder career growth. 7. Work-life balance: Maintain a healthy work-life balance to prevent burnout and maintain overall well-being. 8. Stay updated: Stay informed about industry trends, technology advancements, and market changes. This knowledge is crucial for remaining relevant. 9. Resume and online presence: Keep your resume updated and create a professional online presence on platforms like LinkedIn. 10. Mentorship: Seek out mentors or role models in your field who can offer guidance and support. 11. Continuous learning: Embrace lifelong learning through courses, workshops, and reading to stay competitive. 12. Risk-taking: Don't be afraid to take calculated risks and pursue challenging opportunities that can accelerate your career. 13. Professional organizations: Join relevant professional organizations to access resources and network with peers. 14. Time management: Effectively manage your time and prioritize tasks to maximize productivity. 15. Communication skills: Develop strong communication skills, as they are vital for collaboration and leadership. 16. Adapt to market demands: Be ready to pivot or make changes in your career plan based on industry and market dynamics. 17. Financial planning: Be mindful of your financial situation and save for your future. Financial stability is a crucial aspect of career development. 18. Seek career counseling: Consider professional career counseling or coaching to gain valuable insights and guidance. PREVIOUS QUESTIONS Q1. Discuss the various stages of career with reference to Bangladesh. Q2. Difference Between management development and career development Q3. Do you think career planning can adversely affect organizational performance? Explain 173 | H R M Chapter 13 Performance Appraisal Introduction Performance appraisal is a critical component of human resource management that plays a pivotal role in evaluating and enhancing the performance of employees within an organization. This systematic process enables organizations to assess the effectiveness of their employees, provide feedback and make informed decisions related to promotions, training and compensation. In an era characterized by dynamic business environments, rapidly evolving technologies and changing workforce expectations, performance appraisal has gained prominence as a means to drive employee engagement, productivity and organizational success. Definition of Performance Appraisal Performance appraisal, also known as performance evaluation or performance review, has been defined by various scholars in the field of human resource management. Here are definitions from a few different scholars: Edwin B. Flippo: According to Flippo, "Performance appraisal is the systematic, periodic and an impartial rating of an employee's excellence in the matters pertaining to his present job and his potential for a better job." Dale S. Beach: Beach defines it as, "Performance appraisal is a formal, structured system of measuring and evaluating an employee's job, related behaviors and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future." Michael Armstrong: Armstrong describes performance appraisal as "the process of assessing and documenting an employee's performance, strengths and development needs. It is a systematic way of evaluating an employee's performance and potential in the organization." George T. Milkovich and Jerry M. Boudreau: According to Milkovich and Boudreau, "Performance appraisal is the process of evaluating how well employees perform their jobs 174 | H R M when compared to a set of standards and then communicating that information to those employees." These definitions emphasize the systematic, objective and periodic nature of performance appraisal, which is aimed at assessing and improving an employee's performance within an organization. Objectives of Performance Appraisal The objectives of performance appraisal in human resource management are multifaceted and serve several key purposes within an organization. These objectives include: 1. Performance Evaluation: To assess and measure the performance of employees, identifying strengths and areas that need improvement. This information is crucial for making HR decisions related to promotions, salary adjustments and career development. 2. Feedback and Communication: To provide employees with feedback on their performance, fostering open and constructive communication between employees and their supervisors. This can lead to a better understanding of expectations and performance standards. 3. Goal Alignment: To align individual employee goals and performance with the organization's strategic objectives. This ensures that employees are working toward the same overarching goals as the company. 4. Development and Training: To identify training and development needs for employees. Performance appraisal helps in recognizing areas where employees require additional skills or knowledge to perform their jobs more effectively. 5. Motivation and Engagement: To motivate employees by acknowledging their achievements and providing a sense of recognition for their efforts. Recognition can boost morale and job satisfaction, leading to higher levels of engagement. 6. Career Planning: To assist employees in planning their career paths within the organization. Performance appraisal can help identify potential leaders and employees who are ready for more significant responsibilities. 7. Compensation and Rewards: To determine salary increases, bonuses or other rewards based on an employee's performance. High performers may receive greater financial incentives. 8. Documentation and Legal Compliance: To maintain a record of employee performance for legal and compliance purposes. This documentation can be essential in case of disputes or legal issues related to employment. 9. Succession Planning: To identify potential candidates for future leadership roles within the organization, ensuring a pipeline of qualified individuals for key positions. 10. Performance Improvement: To provide a basis for coaching and improving employee performance. When weaknesses are identified, a plan can be developed to help employees enhance their skills and abilities. These objectives collectively serve to optimize human resource management, increase employee productivity and align individual and organizational goals, ultimately contributing to an organization's growth and success. Benefits of Performance Appraisal Performance appraisal offers several benefits to both employees and organizations. Here are some of the key advantages: 1. Feedback and Improvement: Performance appraisal provides employees with feedback on their strengths and areas for improvement, helping them enhance their skills and capabilities. 175 | H R M 2. Goal Alignment: It aligns individual employee goals with organizational objectives, ensuring that everyone is working towards the same mission and vision. 3. Motivation: Recognizing and rewarding high performance can motivate employees to work harder and achieve better results. 4. Clear Expectations: It clarifies expectations, roles, and responsibilities, reducing confusion and enhancing job satisfaction. 5. Career Development: Performance appraisal can identify high-potential employees and provide them with opportunities for career growth and development within the organization. 6. Training and Development: It highlights areas where employees may need further training or development, enabling targeted skill enhancement. 7. Compensation and Rewards: High performers may receive financial rewards, and salary adjustments, ensuring that compensation is tied to merit. 8. Succession Planning: Identifying potential leaders within the organization ensures a smooth transition for key positions when the need arises. 9. Legal and Documentation: Performance appraisal serves as a legal record of employee performance, which can be crucial in case of disputes or legal issues. 10. Enhanced Communication: Regular performance appraisals foster open and transparent communication between employees and managers. 11. Data-Driven Decisions: The data collected from performance appraisals can inform HR decisions related to promotions, terminations, and organizational planning. 12. Improved Organizational Effectiveness: By enhancing individual performance, performance appraisal contributes to overall organizational efficiency and effectiveness. Overall, effective performance appraisal systems can lead to increased employee satisfaction, productivity, and organizational success. However, it's important to design and implement these systems carefully to maximize their benefits and minimize potential drawbacks. Performance Appraisal Process 1.Establishing performance standards The first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standards. 2.Communicating the standards Once set, it is the responsibility of the management to communicate the standards to all the employees of the organization. The employees should be informed and the standards should be clearly explained to the employees. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators. 3.Measuring the actual performance The most difficult part of the Performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of 176 | H R M measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employee’s work. 4.Comparing actual performance with desired performance The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees’ performance. 5.Discussing results [Feedback] The result of the appraisal is communicated and discussed with the employees on one-to-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees’ future performance. Performance appraisal feedback by managers should be in such way helpful to correct mistakes done by the employees and help them to motivate for better performance but not to demotivate. Performance feedback task should be handled very carefully as it may leads to emotional outburst if it is not handing properly. Sometimes employees should be prepared before giving them feedback as it may be received positively or negatively depending upon the nature and attitude of employees. Types of performance appraisals Here are some types of performance appraisals: 1. Negotiated appraisal Negotiated appraisals involve the use of a mediator during the employee evaluation. Here, the reviewer shares what the employee is doing well before sharing any criticisms. This type of evaluation is helpful for situations where the employee and manager might experience tension or disagreement. 2. Management by objective (MBO) The management by objective (MBO) is an appraisal that involves both the manager and employee working together to identify goals for the employee to work on. Once they establish a goal, both individuals discuss the progress the employee will need to make to fulfill the objectives. When the review time concludes, the manager evaluates whether the individual met their goal and sometimes offers incentives for meeting it. 3. Assessment center method The assessment center method allows employees to understand how others perceive them. This helps them understand the impact of their performance. The assessment center method divides the review into three stages: pre-assessment, during assessment and postassessment. During the assessment, the manager places the individual in role-playing scenarios and exercises to show how successful they are in their role. 4. Self-appraisal A self-appraisal is when an employee reflects on their personal performance. Here, they identify their strengths and weaknesses. They may also recount their milestones with the 177 | H R M organization, such as completing a high number of sales within a month. This type of appraisal usually involves filling out a form, and manager may choose to follow up on this written selfassessment with a one-on-one meeting. 5. Peer reviews Peer reviews use coworkers as the evaluator for a particular employee. This type of performance appraisal can help access whether an individual works well with teams and contributes to their share of work. Usually, the employee reviewing the individual is someone who works closely with them and has an understanding of their skills and attitude. 6. Customer or client reviews Customer or client reviews occur when those who use a company's product or service provide an evaluation. This provides the company with feedback on how others perceive the employee and their organization. Using this type of appraisal can help you improve both employee performances and customer interactions. 7. Behaviorally anchored rating scale (BARS) Behaviorally anchored rating scale (BARS) appraisals measure an employee's performance by comparing it to specific behavioral examples. Businesses give each example a rating to help collect qualitative and quantitative data. These examples help managers measure an employee's behavior on predetermined standards for their role. rmance appraisals Common problems in performance appraisal Appraiser bias Prejudices are an inherent trait of humans – research shows that we make more decisions based on our own biases instead of facts and logic. When conducting a performance appraisal, it is possible for the appraiser to, consciously or unconsciously, formulate bias in favour or against an employee, thereby affecting the outcome of the performance appraisal. Halo effect This refers to the process whereby an appraiser takes a trait of an employee, such as a personality trait, physical trait, or previous work experience, and bases their judgement on this one aspect. For example, if an employee always exceeds performance expectations, an employer may generalise based on this, rather than conduct a thorough and objective performance review. This is why it is important to conduct evaluations that are accurate and allow managers to analyse observable results that cannot be misconstrued through interpretation. This is where real-time performance appraisal software can help as it can continuously collect information to be used in performance evaluations. Extended periods between appraisals Another common issue seen with performance appraisals is the extended time period between reviews – organisations typically do this once a year. However, this means that employees do not receive continuous, instant feedback on their work. This can leave some employees feeling 178 | H R M frustrated or confused as they are unable to determine whether they are improving in their performance. Lack of recognition Another significant issue with performance appraisals is the fact that many managers focus on the negative, not the positive. When providing feedback, it’s important to structure it in a constructive manner where employees are given appreciation as well as constructive criticism. This will positively impact their productivity and engagement levels Responsible Person for Conducting Performance Appraisals The responsibility for conducting performance appraisals typically falls on the immediate supervisor or manager of the employee. In many organizations, this is the standard practice. However, there can be variations in how performance appraisals are conducted, and in some cases, HR professionals or designated performance appraisal specialists may also be involved. Here are the key individuals responsible for conducting performance appraisals: 1. Immediate Supervisor or Manager: This is the most common scenario. The employee's direct supervisor or manager assesses their performance, provides feedback, and discusses goals and development. 2. HR Professionals: In some organizations, HR professionals or HR business partners may play a role in facilitating the performance appraisal process. They may provide training to managers, ensure consistency in the process, and help address any HRrelated issues. 3. Self-Appraisal: In many performance appraisal systems, employees are asked to perform a self-assessment of their performance. This self-assessment is then used as a basis for discussion during the appraisal meeting with their supervisor. 4. Peer Appraisal: In certain situations, colleagues or team members may be asked to provide feedback on an employee's performance. Peer appraisals can offer a wellrounded view of an employee's contributions and behaviors. 5. 360-Degree Feedback: This method involves input from multiple sources, including supervisors, peers, subordinates (if applicable), and self-assessment. It provides a comprehensive evaluation of an employee's performance. 6. Computer Programmers: Computer-aided management involves the use of computers to monitor, supervise and evaluate employee performance electronically. The choice of who conducts the performance appraisal depends on the organization's culture, policies, and the specific goals of the appraisal process. Regardless of the responsible person or team, it's essential that the process is fair, consistent, and based on established performance criteria to ensure its effectiveness in evaluating and improving employee performance. Results Of Using Computer Monitoring Performance Using computer monitoring for performance tracking and evaluation can yield various results, both positive and negative, depending on how it is implemented and managed. Here are some of the potential outcomes of using computer monitoring for performance appraisal: 1. Increased Productivity: Computer monitoring can help identify areas where employees are spending excessive time on non-work-related activities. This insight can encourage employees to stay focused on their tasks, potentially leading to increased productivity. 2. Objective Data: Monitoring provides objective data on employee activities, which can be valuable for performance assessments. This data can serve as a basis for fair and consistent evaluations. 179 | H R M 3. Efficiency Improvement: By analyzing employee work patterns, organizations can identify inefficiencies and bottlenecks, allowing for process 4. improvements and resource allocation optimization. 5. Security and Compliance: Monitoring can help prevent security breaches and ensure compliance with company policies, industry regulations, and legal requirements. 6. Identifying Training Needs: Data from monitoring can highlight areas where employees may need additional training or support, contributing to skill development and performance enhancement. 7. Reduction in Unproductive Behavior: The knowledge that their activities are being monitored may deter employees from engaging in time-wasting or inappropriate behavior during work hours. Process of Performance Appraisal The three processes of performance appraisal - Identification, Measurement and Management - are integral components of assessing and improving employee performance. Let's delve into each process in detail: 1. Identification The identification process involves defining and specifying the performance criteria and objectives for employees. This phase serves as the foundation for the entire performance appraisal system. • Establishing Performance Standards: Organizations identify key performance standards, expectations, and job responsibilities for each employee. This includes defining what successful performance looks like for their specific role. • Goal Setting: Employees and managers collaboratively set performance goals and targets. These goals should be clear, measurable, and aligned with the organization's strategic objectives. • Competency Framework: Identification may also involve determining the core competencies and skills required for a particular job, which employees are expected to possess or develop. 2. Measurement The measurement process involves collecting and evaluating data on employee performance based on the established criteria and goals. • Data Collection: Managers or supervisors collect data on employee performance throughout the appraisal period. This data can include quantitative metrics, such as sales figures or project completion rates, as well as qualitative information, like feedback from colleagues and clients. • Performance Appraisal Tools: Various methods and tools are employed for measurement, such as self-assessments, peer reviews, 360-degree feedback, and supervisor evaluations. • Rating and Evaluation: Once data is collected, it is used to assess the extent to which employees have met their performance standards and goals. Ratings may be assigned, and strengths and weaknesses are identified. 3. Management The management process involves actions taken based on the results of the performance appraisal to enhance employee performance and development. • Feedback and Communication: Employees receive feedback on their performance, including recognition of achievements and areas for improvement. This feedback is a vital component of the management process. • Development Planning: Individual development plans are created, outlining strategies for skill enhancement, training, and career development based on the identified areas for improvement. • Reward and Compensation: Performance appraisal results may influence compensation decisions, such as salary adjustments, bonuses, or promotions. 180 | H R M • Performance Improvement: Strategies are implemented to help employees improve their performance in areas • where they fell short of expectations. This may involve additional training, coaching, or mentoring. • Succession Planning: The results of performance appraisal can also inform succession planning efforts, identifying potential leaders and employees ready for more significant roles within the organization. These three processes collectively form the performance appraisal cycle, which is critical in assessing, improving, and aligning employee performance with organizational goals. Effective performance appraisal systems ensure that employees receive feedback, have opportunities for growth, and that the organization's needs and objectives are met through the contributions of its workforce. Elevating Performance Appraisal: A Symphony of Improvement In the realm of performance appraisal, the dance between appraisers and appraisees often feels like a delicate waltz, a choreography of nervousness. However, fear not, for in the shadows of improvement lie the steps to transform this dance into a more harmonious and positive experience for all involved. Acknowledging the negativity often associated with performance feedback, let's flip the narrative. The performance review session, rather than a daunting encounter, can become a helpful and uplifting experience by embracing a few key suggestions. As organizations pivot toward a more employee-centric strategy, the traditional supervisorsubordinate formal appraisal might need a remix. Enter the performance review discussion, a stage where employees evaluate their own work over a specified period. This shift can infuse a breath of fresh air, making the appraisal process more meaningful and tailored to individual growth. Now, let's unveil the playbook for enhancing performance appraisal programs in the industrial landscape of Bangladesh: 1. Senior Management Support: Picture the performance appraisal program as a ship navigating uncharted waters. To ensure a smooth voyage, the wholehearted support of senior management is crucial. Regular endorsements from the upper echelons provide the wind in the sails, guiding the program to successful completion. 2. Cooperation of Trade Unions: In this performance appraisal symphony, trade union leaders play a pivotal role as conductors. Their acceptance and genuine cooperation can set the tone for a harmonious performance review. By convincing employees to join the orchestra of appraisal, they contribute to the collective success. 3. Fair Ranking Method: The melody of a performance appraisal program is best appreciated when the ranking is in tune with fairness. A fair method ensures that even in the face of unsatisfactory performance, employees will lend their support. Transparency becomes the key note in this musical journey. 4. Suitable Benefit Packages: Imagine benefit packages as the sweet notes that attract and retain good performers. Aligning rewards with performance elevates the entire appraisal program. Even those off-key performers find motivation to fine-tune their skills and improve their performance. 5. Training of Appraisers: Every conductor needs training to lead a flawless performance. Similarly, appraisers require proper training to navigate the complexities of evaluating performance. Establishing training programs ensures that those entrusted with the appraisal baton are well-equipped and tuned to the organization's policies. 181 | H R M As the curtains rise on the stage of improvement, let this performance appraisal be a symphony where every note, from senior management support to fair ranking methods, creates a melody of success. Tips for a Successful Performance Appraisal in Bangladesh: In the bustling industrial landscapes of Bangladesh, the key to a successful performance appraisal program lies in orchestrating a harmonious blend of communication, preparation, and encouragement. Here are a dozen tips that, when carefully followed, can transform the appraisal process into a melody that resonates with both employees and management: • Fair Notice: Just as a well-conducted symphony requires timely cues, give your employees fair notice about when the performance review will take center stage. Clear communication sets the tone for a collaborative and constructive experience. • Evaluate Performance: Encourage self-reflection by asking employees to ponder and evaluate their own performance before the review session. This prelude allows for a more engaged and introspective discussion. • Prepare for the Review: Like a seasoned conductor studying the score, prepare for the review by delving into available information about the employee's performance. Seek additional insights if needed, ensuring a comprehensive evaluation. • Begin on a Positive Tone: Every performance deserves a positive overture. Commence the session on a positive note, creating an atmosphere where the employee feels at ease and open to the constructive feedback of the performance review. • Explain the Format: Clarify the format of the performance appraisal, drawing parallels with similar organizations in Bangladesh. This contextual understanding provides a roadmap for the employee, making the appraisal process more relatable. • Employee Awareness: Illuminate the uses of performance appraisal results—be it for training and development, salary decisions, or promotion considerations. Making employees aware of the broader impact fosters a sense of purpose in the evaluation process. • Monitoring and Follow-up: If needed, set a second meeting to delve into non-performance-related aspects, such as salary discussions, future goals, or developmental suggestions. This follow-up ensures a comprehensive review of all facets. • Encourage Participation: Transform the appraisal into a collaborative symphony by encouraging active employee participation. Embrace differences of opinion, especially when the employee's perspective diverges from yours. • Review the Standards: Before diving into the assessment, review the standards against which the employee will be measured. This serves as a reminder that the process is not entirely subjective, anchoring the evaluation in objective criteria. • Praise Accomplishments: Applaud the employee for their achievements during the evaluation period. Recognize excellence and highlight areas where the employee has truly excelled, turning the spotlight on their successes. • Highlight and Move On: 182 | H R M Like a skilled conductor swiftly navigating through different movements, highlight areas where performance fell short of standards, but do not dwell on them excessively. Maintain a forward momentum. • Identify Ways to Improve: Elevate the appraisal experience by transforming the manager into a counselor. Identify areas of improvement collaboratively, discussing strategies to enhance performance or overcome challenges. In this symphonic approach, the performance appraisal transcends the traditional evaluator role, evolving into a counseling session that is not only useful but also enjoyable for both the conductor and the instrumentalist—creating a truly harmonious workplace melody. Methods of Performance Appraisal: In the realm of performance appraisal, various methods conduct the orchestra of assessment, each presenting a unique melody of evaluating employee contributions. These methods are often classified into three categories, and within these, distinct approaches shape the narrative of employee performance. A. Behavioral Performance Appraisal Methods: Unveiling Traits and Actions • Checklists: Picture a checklist as a musical score, listing descriptive statements and adjectives that capture job-related behaviors. The evaluator, like a discerning conductor, checks items reflecting positive or negative qualities observed in the employee. Tallying the points unveils a harmonious rating, where each checked trait contributes to the overall composition. • Weighted Checklists: Sometimes, a uniform weighting might not capture the nuances of performance. Enter the weighted checklist, where each trait carries a unique significance. The evaluator, akin to a composer in the dark, assigns weights after the checklist is completed. The points, like musical notes, harmonize into a final rating, creating a nuanced and balanced evaluation. • Graphic Rating Scale: Imagine a graphic rating scale as a musical scale, where evaluators rate individuals on a spectrum of levels, usually 1 to 5. Adjectives like "unsatisfactory" and "outstanding" anchor the extremes. The evaluator, akin to a music critic, assesses the employee's demonstration of each quality. This versatile scale can rate overall performance or focus on specific characteristics, creating a symphony of ratings that sum up into a comprehensive evaluation. • Mixed Standard Scale: Imagine a scale that blends various standards, creating a nuanced perspective on an individual's performance. Instead of focusing on a single behavior, the evaluator assesses three conceptually intertwined standards, enriching the evaluation with a multifaceted lens. • Forced-Choice Scale: In the quest for objectivity, enter the forced-choice scale—a method designed to mask the "best" responses. This approach challenges the rater by presenting pairs of items, forcing them to select the one that most accurately reflects the individual being evaluated. A subtle dance that minimizes score inflation and enhances precision. • Critical Incident Method: Picture a journal of pivotal moments—this is the critical incident method. Evaluators keep a record of highly effective or ineffective performances, providing a rich tapestry of examples. This method offers a narrative insight into individual performance, capturing the essence of impactful behaviors. • Behaviorally Anchored Rating Scale (BARS): BARS brings sophistication to performance evaluation by anchoring numerical scales with specific narrative examples. Grounded in employee behavior, this method replaces 183 | H R M assumptions with concrete illustrations, ranging from negative to positive descriptions of performance. Six Factors That Distort Performance Appraisals 1. Leniency error: Each evaluator has his own value system which acts as a standard against which appraisals are made. Relative to the true performance an individual exhibits, some evaluators mark high and others low. Performance appraisals The former is referred to as positive leniency error and the latter as negative leniency error. When evaluators are positively lenient in their appraisal an individual’s performance is overstated while in the opposite case leniency error understates performance. If all individuals in an organization were appraised by the same person, there would be no problem. The difficulty arises when we have different raters with different leniency errors making judgments. 2. Halo error : Halo error or halo effect is a tendency to rate high or low on all factors due to the impression of a high or low rating on some specific factor. As an example, if an employee tends to be dependable, we might become biased towards him to the extent that we will rate him high on many desirable attributes. 3. Similarity error: When evaluators rate other people in the same way that the evaluators perceive themselves, they are making a similarity error. Due to this perception that evaluators have of themselves, they project those perceptions onto others. For example, the evaluator who perceives himself as aggressive may evaluate others by looking for aggressiveness. Those who demonstrate this characteristic tend to benefit, while others are penalized. 4. Low appraiser motivation: If the evaluator knows that a poor appraisal could hurt the employee’s future, say, opportunities for promotion, the evaluator may be reluctant to give a realistic appraisal. 5. Central tendency: Raters who are prone to the central tendency error are those who continually rate all employees as average. For example, if a manager rates all subordinates as 2 on a scale of 1 to 4 then no differentiation among the subordinates exists. Failures to rate subordinates as 4, for those who deserve that rating, will only create problems if this information is used for pay increase. 6. Inappropriate substitutes for performance: In many jobs it is difficult to get consensus on what is a good job and it is still more difficult to get agreement on what criteria will determine performance. For a salesman the criterion may be the money value of sales in his territory but even this criterion is affected by factors beyond the salesman’s control, such as action of competitors. As a result, the appraisal is frequently made by using substitutes for performance, such as criteria that closely approximate performance and act in its place. Many of these substitutes are well chosen and give a good approximation of actual performance. Criteria for a successful performance appraisal system Appraisal system to be effective should possess the following characteristics: 1. Clear Objectives: The objectives of performance appraisal should be clear, specific, timely and open. The appraisal system should be fair and beneficial to both the individual employee and the organization should be linked with other subsystems of personnel management. 2.Reliable and Valid: Appraisal system should provide consistent, reliable and valid information and date. Appraisals should measure what they are supposed to measure. For example, if the objective of appraisal is to show potential of an employee for promotion, it should supply the date relating to potentialities of the employee. 3. Standardization: The appraisal form, procedures and rules should be standardised. There should be well-defined performance criteria and standards. Employees should be made fully aware of these standards as appraisal decisions affect all employees of the group. 184 | H R M 4. Training: Evaluators should be given training in procedures and principles of appraisal. They should be provided with knowledge and skills in designing appraisals, conducting post appraisal interviews and correcting rating errors. 5. Mutual Trust: Before introducing the appraisal system, a climate of mutual trust, cooperation and confidence should be created in the organization. Under the system, the employees should be treated in a supportive manner. 6. Feedback and Participation: The ratings should be communicated to both the employees and the raters. The appraisal r system should be open and participative. The employees should get information on their performance. The system should involve employees in the goal setting process. 7. Recognition of Differences: Organization differs in terms of work, size, resources, needs and environment. Hence, the appraisal system must be designed to meet the needs of particular organization. It should be specific and tailor – made for the particular company. 8. Post Appraisal Interview: An appraisal system is only as effective as the manager is iii communications. Hence, an interview with the employee should be arranged after appraising his performance. It will help to know the difficulties of work and training needs of employees. In interview, problem solving approach should be adopted and counseling should be provided for improving performance. Steps for performance appraisal in the industrial enterprise of Bangladesh There are generally eleven steps of performance appraisal. these are given below:1.Prepare schedule of the appraisal in advance. 2. Create a supportive environment to put employees at ease. 3.Selection of appraiser. 4. Involve the employee in the appraisal discussion, including a self- evaluation. 5. Focus discussion on the work behaviors not on the employees. 6. Support your evaluation with specific examples. 7.Give both positive and negative feedback. 8. Ensure employees to understand what was discussed in the appraisal. 9. Generate development plan. 10. Training the appraiser. 11. Preparation of draft report. Guidelines for Effective Performance Appraisal Interview There are some guidelines of performance appraisal. These guidelines are mentioned in below 1. Communication: The supervisor shall communicate the respective employee that there will be a meeting between them to exchange and discuss the issues of his/her performance and its rating stating the time and place of the meeting. The interview shall be held in private. 2. Preparation: The rater and the rate should prepare themselves for the meeting and be ready with information and arguments to discuss the employee’s past performance against the objectives for the period. This will make the appraisal interview fruitful. 3. Budget the Time: The rater should budget the time for the meeting and be communicated to the employee so that he/she can use the time effectively to discuss the evaluation and his/her future behavior. Both the rater and ratee can take preparation to complete the meeting within the time and make the meeting successful by achieving its goals. 4. Welcome the employee: The supervisor/rater should welcome the employee to the interview session with greetings and put the employee at ease in an armed chair. The supervisor shall make it clear that the interview is not a disciplinary session, but to review past work in order to improve the employee’s future performance, satisfaction, and personal development. It is also for the correction of the rating already assigned to the employee if discussion demands that. 185 | H R M 5. Discussion: Now, start the discussion with specific positive remarks about the performance of the employee. Such as “Mr. Akram, your work the last month was very good”. The supervisor and the employee both shall concentrate on the following issues during the discussion period: (i) Use facts, not opinions. Evidence must be available to document the claims and counterclaims. (ii) Orient the discussion and criticism to performance, not personality characteristics. Bring one or two important negative points at one session because employee may not sustain the stress. Much criticism shall make the employee very defensive and the purpose of the session will be lost. (iii) Make criticisms specific, not general and vague. (iv) Stay calm and do not argue with the person being evaluated. (v) Identify specific actions the employee can take to improve performance. (vi) Emphasize the evaluator’s willingness to assist the employee’s efforts and to improve performance. (vii) Maintain a positive environment throughout the discussion session. (viii) Conclude with positive comments and overall evaluation results. 6. Control Information: The rater should guard against overwhelming the ratee with information. Too much information can be confusing although too little can be frustrating. The rater must balance the amount of information that is provided. 7. Encourage Employee Involvement: The supervisor /rater should encourage the employee to involve in the performance appraisal process, do self review and get his/her own results out of own evaluation. This will make the employee self conscious and understanding about his/her own performance. It will prepare the person to sustain any criticism and be easy in appraisal interview. 8. Adjourn the Meeting: Appraisal interview is not a onetime matter; rather it is a part of a continuing process of employee development. So, the final aspect of the interview should focus on future objectives and how the superior can help the employee achieve organizational and personal goals. The supervisor shall keep a record of the issues discussed, objectives set, involvements agreed upon and supports promised so that everybody could maintain those in future. Lest we forget, appraisal interview for the development of employee performance, not pull the employee down B. Personnel Comparison Systems: Crafting Rankings and Distributions 1. Ranking: In the ranking method, evaluators create an ordered list of employees based on overall performance. Whether following a traditional or alternative ranking approach, this method ensures a systematic evaluation. However, it produces ordinal data, leaving the exact differences between employees unknown. 2. Forced Distribution: This method mandates placing a specific percentage of employees into predefined categories based on overall performance. A structured approach that ensures a balanced distribution, preventing the evaluator from rating everyone uniformly high. C. Results-Oriented Performance Appraisal Methods: Focusing on Outcomes Management by Objectives (MBO): This method, credited to Peter Drucker, introduces a results-oriented approach to performance appraisal. Rooted in over 30 years of organizational practice, MBO aligns objectives with outcomes, aiming for improved productivity. Studies have consistently shown increased productivity in organizations implementing MBO programs, highlighting its enduring impact. 186 | H R M As we navigate these methods, the symphony of performance appraisal continues to evolve, offering a rich array of notes to conduct a comprehensive evaluation. The melody of assessment unfolds, revealing a diverse and effective repertoire of appraisal techniques. Challenges of performance appraisal can include: • • • • • • • • • • Bias: Appraisers may exhibit various biases, such as halo effect (focusing on a single trait), leniency or severity bias, or central tendency (rating everyone as average). Subjectivity: Appraisals often rely on subjective judgments, making it difficult to maintain consistency and fairness across all employees. Lack of Feedback: Employees may not receive timely, constructive feedback, which can hinder their growth and development. Goal Setting: Setting clear and measurable performance goals can be challenging, and unclear objectives can lead to ineffective appraisals. Time-Consuming: Conducting comprehensive performance appraisals can be timeconsuming for both employees and managers. Resistance: Employees may resist appraisals due to fear of negative consequences, resulting in a lack of motivation and engagement. Legal Issues: Inaccurate or discriminatory appraisals can lead to legal challenges if not conducted carefully and objectively. Incomplete Picture: Appraisals may not capture the full scope of an employee's contributions, skills, or potential. Data Reliability: Appraisal data may not always be reliable, as it can be influenced by various factors, including memory, recency bias, or incomplete information. Lack of Training: Managers and appraisers may not be adequately trained to conduct effective appraisals, leading to inconsistencies and errors. Addressing these challenges requires careful planning, training, and a commitment to fair and transparent performance appraisal processes. Performance appraisal of Grameen Phone (BD): In 2023, Grameenphone Bangladesh, as a prominent telecommunications company, would have carried out a comprehensive performance appraisal process to evaluate and manage the performance of its employees. This likely involved a structured approach, incorporating various appraisal methods and key performance indicators (KPIs) relevant to the telecommunications industry. The appraisal process would have included setting SMART (Specific, Measurable, Achievable, Relevant, Time-bound) performance goals, conducting regular feedback sessions, and making informed decisions regarding employee development, promotions, and compensation adjustments. However, the appraisal process might have encountered challenges inherent to performance appraisals in any organization, such as potential bias, subjectivity in evaluations, and the need for consistent and transparent assessment criteria. To address these challenges and ensure a fair and effective appraisal process, Grameenphone would have likely invested in proper training and development for its managers and appraisers. Overall, the performance appraisal in 2023 at Grameenphone would have played a crucial role in aligning its workforce with the company's strategic objectives, fostering employee 187 | H R M growth and development, and ultimately enhancing organizational performance in the telecommunications sector. The performance appraisal process for Grameenphone typically involves several key components: Appraisal Process: 1.Goal Setting: At the beginning of the performance cycle, employees and their managers collaboratively set performance goals and objectives. These goals are aligned with the company's objectives and individual job responsibilities. 2.Regular Feedback: Throughout the performance period, managers provide ongoing feedback and coaching to their team members. This can happen through one-on-one meetings, project reviews, and informal discussions. 3.Data Collection: Data is collected on employee performance, including key performance indicators (KPIs), achievements, and behavioral competencies. 4.Self-Assessment: Employees often have the opportunity to self-assess their performance, highlighting their achievements and areas for improvement. 4.Manager's Assessment: Managers assess each employee's performance, taking into account the agreed-upon goals, feedback, and data. 5.Performance Ratings: Employees are typically assigned performance ratings or scores that reflect their overall performance. These ratings are often categorized as "Exceeds Expectations," "Meets Expectations," or "Needs Improvement." 6.Development Plans: Based on the appraisal, employees and managers create development plans to address areas that need improvement and to capitalize on strengths. Timeline: The specific timeline for Grameenphone's performance appraisal process may vary, but it typically follows an annual cycle: 1.Goal Setting: Usually conducted at the beginning of the fiscal year or performance cycle, which can vary by organization but often aligns with the calendar year. 2.Regular Feedback: Ongoing throughout the year, with periodic check-ins between managers and employees. 3.Data Collection: Throughout the performance period, data is continuously collected and documented. 4.Self-Assessment and Manager's Assessment: Typically, these assessments are conducted in the weeks leading up to the official appraisal meeting. 5.Performance Ratings and Development Plans: These are determined in the weeks following the assessments. 6.Appraisal Meetings: Usually held towards the end of the fiscal year, where managers and employees discuss the performance appraisal and development plans. Who Are Appraised: 188 | H R M In Grameenphone, the performance appraisal process typically includes all employees, ranging from frontline staff to managers and executives. Each employee's immediate supervisor or manager is responsible for conducting their appraisal. The appraisal process may differ in terms of specific criteria and details for different job roles and levels within the organization, but the fundamental process is generally consistent throughout the company. Performance Appraisal Unveiled: A Glimpse into Grameenphone’s Evaluation Landscape: In the intricate tapestry of Grameenphone’s corporate world, the annual performance assessment dances to the rhythm of a standardized appraisal format, as outlined in the sacred scrolls of Appendix-1. This document, akin to a maestro's sheet music, guides each employee through the symphony of self-reflection and professional evaluation. Now, imagine Appendix-1 as a treasure map, detailing the roles and responsibilities of every explorer in the realm of performance appraisal. It's not just a form; it's a guide, a map, and a compass, ensuring every employee charts their unique course in the evaluation journey. But what about the stars by which these employees navigate? Fear not, for (Appendix-2) unveils the celestial indicators of performance criteria. These are not mere metrics; they are constellations of excellence, blending quantitative precision with qualitative brilliance. These standards, much like the Northern Star, remain steadfast, providing a reliable guide across the performance seas. GrameenPhone's performance criteria, a carefully cultivated garden of expectations, bloom in various forms. There's the garden of General Criteria, where the flowers of work quality, business commitment, and job-related knowledge sway in unison. Each employee tends to these blooms, nurturing a collective garden of excellence. Venture deeper, and you'll find the Technical Criteria orchard, where the required skills and expertise vary like the flavors of a diverse harvest. From the precision of engineering in equipment installation to the grace of clerical accuracy in assistant roles, each position has its unique taste of technical excellence. As the corporate hierarchy ascends, so does the complexity of the performance tapestry. Deputy Managers and above, akin to skilled conductors, are evaluated on a different score, measuring the harmony of leadership, resource management, and organizational prowess. For them, the melody of management competence plays a crucial role, a tune not as resonant in the symphony of their colleagues in lower tiers. Knowledge, they say, is power. GrameenPhone ensures that its employees wield this power by acquainting them with each performance factor and standard well before the grand evaluation. It's not just about the destination; it's about knowing the terrain, mastering the steps, and performing the dance of appraisal with finesse. So, in the grand theater of GrameenPhone's performance appraisal, let every employee be a star, choreographing their unique performance, guided by the constellations of criteria and the symphony of standards. Six Factors That Distort Performance Appraisals 189 | H R M 1. Leniency error: Each evaluator has his own value system which acts as a standard against which appraisals are made. Relative to the true performance an individual exhibits, some evaluators mark high and others low. Performance appraisals The former is referred to as positive leniency error and the latter as negative leniency error. When evaluators are positively lenient in their appraisal an individual’s performance is overstated while in the opposite case leniency error understates performance. If all individuals in an organization were appraised by the same person, there would be no problem. The difficulty arises when we have different raters with different leniency errors making judgments. 2. Halo error : Halo error or halo effect is a tendency to rate high or low on all factors due to the impression of a high or low rating on some specific factor. As an example, if an employee tends to be dependable, we might become biased towards him to the extent that we will rate him high on many desirable attributes. 3. Similarity error: When evaluators rate other people in the same way that the evaluators perceive themselves, they are making a similarity error. Due to this perception that evaluators have of themselves, they project those perceptions onto others. For example, the evaluator who perceives himself as aggressive may evaluate others by looking for aggressiveness. Those who demonstrate this characteristic tend to benefit, while others are penalized. 4. Low appraiser motivation: If the evaluator knows that a poor appraisal could hurt the employee’s future, say, opportunities for promotion, the evaluator may be reluctant to give a realistic appraisal. 5. Central tendency: Raters who are prone to the central tendency error are those who continually rate all employees as average. For example, if a manager rates all subordinates as 2 on a scale of 1 to 4 then no differentiation among the subordinates exists. Failures to rate subordinates as 4, for those who deserve that rating, will only create problems if this information is used for pay increase. 6. Inappropriate substitutes for performance: In many jobs it is difficult to get consensus on what is a good job and it is still more difficult to get agreement on what criteria will determine performance. For a salesman the criterion may be the money value of sales in his territory but even this criterion is affected by factors beyond the salesman’s control, such as action of competitors. As a result, the appraisal is frequently made by using substitutes for performance, such as criteria that closely approximate performance and act in its place. Many of these substitutes are well chosen and give a good approximation of actual performance. Criteria for a successful performance appraisal system Appraisal system to be effective should possess the following characteristics: 1. Clear Objectives: The objectives of performance appraisal should be clear, specific, timely and open. The appraisal system should be fair and beneficial to both the individual employee and the organization should be linked with other subsystems of personnel management. 2.Reliable and Valid: Appraisal system should provide consistent, reliable and valid information and date. Appraisals should measure what they are supposed to measure. For 190 | H R M example, if the objective of appraisal is to show potential of an employee for promotion, it should supply the date relating to potentialities of the employee. 3. Standardization: The appraisal form, procedures and rules should be standardised. There should be well-defined performance criteria and standards. Employees should be made fully aware of these standards as appraisal decisions affect all employees of the group. 4. Training: Evaluators should be given training in procedures and principles of appraisal. They should be provided with knowledge and skills in designing appraisals, conducting post appraisal interviews and correcting rating errors. 5. Mutual Trust: Before introducing the appraisal system, a climate of mutual trust, cooperation and confidence should be created in the organization. Under the system, the employees should be treated in a supportive manner. 6. Feedback and Participation: The ratings should be communicated to both the employees and the raters. The appraisal r system should be open and participative. The employees should get information on their performance. The system should involve employees in the goal setting process. 7. Recognition of Differences: Organization differs in terms of work, size, resources, needs and environment. Hence, the appraisal system must be designed to meet the needs of particular organization. It should be specific and tailor – made for the particular company. 8. Post Appraisal Interview: An appraisal system is only as effective as the manager is iii communications. Hence, an interview with the employee should be arranged after appraising his performance. It will help to know the difficulties of work and training needs of employees. In interview, problem solving approach should be adopted and counseling should be provided for improving performance. Steps for performance appraisal in the industrial enterprise of Bangladesh There are generally eleven steps of performance appraisal. these are given below:1.Prepare schedule of the appraisal in advance. 2. Create a supportive environment to put employees at ease. 3.Selection of appraiser. 4. Involve the employee in the appraisal discussion, including a self- evaluation. 5. Focus discussion on the work behaviors not on the employees. 6. Support your evaluation with specific examples. 7.Give both positive and negative feedback. 8. Ensure employees to understand what was discussed in the appraisal. 9. Generate development plan. 10. Training the appraiser. 11. Preparation of draft report. Guidelines for Effective Performance Appraisal Interview 191 | H R M There are some guidelines of performance appraisal. These guidelines are mentioned in below 1. Communication: The supervisor shall communicate the respective employee that there will be a meeting between them to exchange and discuss the issues of his/her performance and its rating stating the time and place of the meeting. The interview shall be held in private. 2. Preparation: The rater and the rate should prepare themselves for the meeting and be ready with information and arguments to discuss the employee’s past performance against the objectives for the period. This will make the appraisal interview fruitful. 3. Budget the Time: The rater should budget the time for the meeting and be communicated to the employee so that he/she can use the time effectively to discuss the evaluation and his/her future behavior. Both the rater and ratee can take preparation to complete the meeting within the time and make the meeting successful by achieving its goals. 4. Welcome the employee: The supervisor/rater should welcome the employee to the interview session with greetings and put the employee at ease in an armed chair. The supervisor shall make it clear that the interview is not a disciplinary session, but to review past work in order to improve the employee’s future performance, satisfaction, and personal development. It is also for the correction of the rating already assigned to the employee if discussion demands that. 5. Discussion: Now, start the discussion with specific positive remarks about the performance of the employee. Such as “Mr. Akram, your work the last month was very good”. The supervisor and the employee both shall concentrate on the following issues during the discussion period: (i) Use facts, not opinions. Evidence must be available to document the claims and counterclaims. (ii) Orient the discussion and criticism to performance, not personality characteristics. Bring one or two important negative points at one session because employee may not sustain the stress. Much criticism shall make the employee very defensive and the purpose of the session will be lost. (iii) Make criticisms specific, not general and vague. (iv) Stay calm and do not argue with the person being evaluated. (v) Identify specific actions the employee can take to improve performance. (vi) Emphasize the evaluator’s willingness to assist the employee’s efforts and to improve performance. (vii) Maintain a positive environment throughout the discussion session. (viii) Conclude with positive comments and overall evaluation results. 6. Control Information: The rater should guard against overwhelming the ratee with information. Too much information can be confusing although too little can be frustrating. The rater must balance the amount of information that is provided. 7. Encourage Employee Involvement: The supervisor /rater should encourage the employee to involve in the performance appraisal process, do self review and get his/her own results out of own evaluation. This will make the employee self conscious and understanding about his/her own performance. It will prepare the person to sustain any criticism and be easy in appraisal interview. 8. Adjourn the Meeting: Appraisal interview is not a onetime matter; rather it is a part of a continuing process of employee development. So, the final aspect of the interview should focus on future objectives and how the superior can help the employee achieve organizational 192 | H R M and personal goals. The supervisor shall keep a record of the issues discussed, objectives set, involvements agreed upon and supports promised so that everybody could maintain those in future. Lest we forget, appraisal interview for the development of employee performance, not pull the employee down Performance criteria and their measurement: Performance criteria in Grameenphone are defined as performance factors or standards by which an individual employee's performance is measured. Standards are ongoing performance criteria and are usually expressed both quantitatively (in terms of level of service or speed of response) and qualitatively. Because of their essential nature, they may not change significantly from one performance year to another because if the key tasks remain unchanged. The appraisal system of Grameenphone is such that it takes job-related performance criteria into account at the time of completing employee's appraisal. Job related criteria are the basis of evaluating employee's performance. Although there are some common criteria, but they are sure to vary for different level of employees. The different types of performance criteria are: 1. General criteria: Quality of work, business commitment, job related knowledge, attitude and initiatives etc. are common performance criteria that are applicable and used for all employees of the Company. 2. Technical criteria: The required skills, competence, and expertise are different for different positions. Employee's engaged in installation, fitting and fixing of equipment must have expertise in engincering telecommunication subject while an assistant must have clerical accuracy and typing speed. These technical criteria are critical to the position. The number of technical criteria may be 3 to 5 or more for certain technical positions depending on the nature of the job. These criteria must be determined at the beginning of the performance year in a participatory manner. 2. Management competence: Deputy Managers and above employee's performance will be evaluated in respect to performance factors such as leadership, resource management, planning, organizing skills etc. These skills are not required for others that much. For mangers and above, the more they go up in the Company job hierarchy, the need for management skills increase. Employees should know each of the above performance factors/standards before the evaluation occurs. Performance Measurement: It is really a difficult task to measure an individual employee's performance. The subjectivity, the measuring tool, the criteria to be used, the degree of accuracy all these are important issues that must take into account during performance measurement. Performance measure may be objective (quantitative) or subjective (base on personal standard or opinion). One technique to reduce subjectivity is to look at behaviors and results. Performance measure should provide examples of whether the intended results have been achieved or not and the extent to which the employee has provided the results. The following guideline may be useful in respect of performance measurement: 193 | H R M • Measures should focus on concrete examples of events, incidents and results not efforts, • Measures should be objective and observable, • Measure should focus on individual employee's performance traits/ ID No. Name Department/Section Period for Date of Confirmation/Due Evaluation • • • • Post at joining Date of Joining Salary at Joining Last Promotion Present Salary Departments work with Date characteristics, and demonstration of skills, competencies, Measures in respect of specific goal so that the goal of the individual is aligned to Company goal and Measures in terms of quantity, quality, time and cost (QQTC), and Major string this, problems encountered and weakness related to the employee's abilities. Performance Rating There is a five points rating scale being used in Grameenphone for appraisal purpose. They are outstanding, very good, good, fair and poor. 1. Outstanding: Always demonstrates exceptional performance, far exceeds job requirements, initiative and outputs are of high quality, significantly contributes to Company growth. 2. Very Good: Performance better than normally expected, producing good result that exceeds requirements of the job, accomplishments exceeds requirements, competent and knowledgeable individual clearly exceeds major requirements. 3. Good: Performance consistently meets the requirements of the position, maintains acceptable performance standard, meets objectives and demonstrates desired performance level, clearly meets all requirements and standards. 4. Fair: Performance requires improvement in some of the areas, partially meets job requirements, some gap in achieving desired output, and needs further improvements/training in some areas. 5. Poor: Inadequate performance, does not meet job requirements, quality of output significantly below standard, performance extremely unsatisfactory, needs to resolve performance gap/problems immediately, fails to meet job requirements, whose performance is clearly below the minimum requirements and standards of the job. Appendix – 1 Performance Evaluation Sheet: 194 | H R M Educational Qualification Name of Degree Institution Year of Passing Grade/Class Remarks Year Duration Remarks Professional Qualification Name Degree Training & Courses Participated Name Subject Duration Remarks Duration Remarks Past Experience Organization Position Appendix – 2 Performance Evaluation Sheet: A. Performance as a whole: ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------B. Special Qualifications or Abilities: ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------C. Limitations: -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------D. Suggestions for improvement: --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------E. Attitudes towards collogues: ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------F. Recommendations for Confirmation/Increment! Promotion: -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 195 | H R M Manager, Concern Department Director, Concern Department Director HR Previous Questions A. How would you define performance appraisal? (2018, 2021) B. Who are responsible for performance appraisal? How can they conduct this program? (2018) C. State the steps of the Performance Appraisal process followed in the industrial enterprises of Bangladesh. (2018) D. Discuss the process of performance appraisal in the industrial enterprises of Bangladesh. (2021) E. Explain in short the tips of successful performance appraisal in a Bangladeshi Organization. (2021) 196 | H R M Chapter 14 Compensation A brief overview of the typical topics covered in books on compensation in human resource management. This research generally discusses various aspects of compensation, including: Compensation Philosophy and Strategy: This includes defining the organization's compensation philosophy and developing a compensation strategy that aligns with the company's overall goals and values. Job Analysis and Evaluation: Books on compensation often cover the process of job analysis and job evaluation methods to determine the relative worth of different positions within the organization. Compensation Structures: They discuss the design and development of compensation structures, which may include pay grades, salary ranges, and other components like base pay, bonuses, and incentives. Benefits and Perks: Understanding and managing employee benefits and perks, such as health insurance, retirement plans, and other non-monetary rewards. Legal and Regulatory Compliance: The legal and regulatory aspects of compensation, including compliance with labor laws, wage and hour laws, and equal pay regulations. Performance Management and Compensation: The relationship between performance management systems and compensation, including how performance appraisals can impact salary adjustments and bonuses. Variable Pay: Exploring different forms of variable pay, such as bonuses, commissions, and profit-sharing, and how they can be integrated into the compensation structure. Compensation Surveys and Benchmarking: Conducting market research to ensure that an organization's compensation packages are competitive within the industry and region. Pay Equity: Addressing issues related to pay equity and ensuring that compensation is fair and non-discriminatory. Communication and Employee Engagement: How to effectively communicate compensationrelated information to employees and engage them in the process. Total Rewards: A holistic approach to compensation that includes both monetary and nonmonetary rewards to create an attractive package for employees. Compensation Definition: Compensation refers to the total rewards, both monetary and non-monetary, that employees receive from their employer in exchange for their work and services. It encompasses all forms of financial remuneration and benefits provided to employees as part of their employment package. Compensation includes various elements, such as: • Base Salary/Wages: The fixed amount paid to employees on a regular basis, often as an hourly wage or an annual salary. 197 | H R M • • • • • • • Bonuses: Additional payments provided to employees based on their individual or team performance, as a reward for achieving specific goals or targets. Commissions: A variable form of compensation typically earned by salespeople, where they receive a percentage of the sales they generate. Benefits: Non-monetary rewards such as health insurance, retirement plans, paid time off, and other perks that enhance the overall compensation package. Incentives: Programs that motivate employees to achieve specific objectives, often through monetary rewards or recognition. Stock Options/Equity: Ownership stakes or the right to purchase company stock at a predetermined price, which can be a part of compensation for certain employees. Long-Term Incentive Plans: Rewards tied to performance over an extended period, usually meant to encourage loyalty and sustained success. Non-Monetary Rewards: Recognition, career development opportunities, flexible work arrangements, and other non-financial benefits that contribute to job satisfaction and engagement. Compensation Strategy: A compensation strategy is a structured approach or plan developed by an organization to attract, retain, motivate, and reward employees effectively. It involves aligning compensation practices with the company's overall goals, culture, and competitive position in the job market. Key elements of a compensation strategy include: • • • • • • • Market Positioning: Determining where the organization wants to position itself in terms of compensation compared to the external job market. This involves analyzing industry and regional salary data. Internal Equity: Ensuring fairness and consistency within the organization by establishing clear salary structures and pay grades that reflect the relative value of different positions. Pay for Performance: Aligning compensation with employee performance by creating incentive systems that reward high-performing individuals and teams. Total Rewards: Considering both monetary and non-monetary rewards in the compensation package, including benefits, professional development opportunities, and a positive work environment. Legal and Regulatory Compliance: Ensuring that compensation practices comply with labor laws, wage regulations, and anti-discrimination laws. Communication: Developing effective communication strategies to inform employees about their compensation, benefits, and opportunities for growth. Budgeting: Allocating resources and budgeting for compensation expenditures in a way that supports the organization's financial health. A well-defined compensation strategy is crucial for an organization's ability to attract and retain talent, maintain employee satisfaction, and achieve its business objectives. It should be flexible and adapt to changes in the external labor market and shifts in the organization's goals and priorities. Job Analysis and Evaluation: 198 | H R M Job analysis involves systematically collecting and evaluating information about job roles within an organization. Job analysis and evaluation are essential components of the compensation process in human resource management. They help organizations determine the relative value of different jobs within the company, which, in turn, guides decisions regarding compensation. Let's explore these two concepts in more detail: Job Analysis: Definition: Job analysis is the systematic process of gathering, documenting, and analyzing information about a job, including its duties, responsibilities, required qualifications, and the skills and knowledge necessary to perform it effectively. Purpose: Job analysis serves several purposes, including: • • • • • Designing and updating job descriptions: Job analysis helps create accurate and detailed job descriptions, which are used in recruitment, performance management, and compensation. Employee selection and placement: It ensures that the right candidates are selected and placed in suitable roles. Performance appraisal: The information from job analysis is used to establish performance expectations and criteria. Training and development: It help in identifying the skills and knowledge required for various jobs, which is vital for employee training and development. Legal compliance: Accurate job analysis is crucial for compliance with labor laws and regulations. Job evaluation methods help determine the relative value of different positions. Methods: Job analysis can be conducted through various methods, including interviews, questionnaires, observations, and a review of job-related documents. Subject matter experts, supervisors, and employees themselves may be involved in the process. Job Evaluation: Definition: Job evaluation is the process of systematically assessing and assigning a relative value or worth to different jobs within an organization. This relative value is used to establish internal equity and determine compensation levels for each job. Purpose: Job evaluation helps organizations achieve the following objectives: • • • • Establishing internal equity: It ensures that similar jobs are compensated similarly, promoting fairness and reducing the risk of pay discrimination. Developing compensation structures: Job evaluation results guide the creation of salary structures, pay grades, and compensation levels for different job categories. Setting competitive pay rates: By comparing job values internally and externally, organizations can determine competitive pay rates within their industry and region. Enhancing recruitment and retention: Fair and competitive compensation based on job evaluation can attract and retain top talent. Methods: Several methods can be used for job evaluation, including: 199 | H R M • • • • Point Factor Method: Assigning points to various job factors such as skill, responsibility, effort, and working conditions to determine the overall job value. Ranking Method: Ranking jobs from highest to lowest in terms of their value to the organization. Classification Method: Grouping jobs into predetermined categories or classes based on predefined criteria. Market Pricing: Determining job values based on market rates for similar positions. Compensation as per IAS and IFRS IAS (International Accounting Standards) and IFRS (International Financial Reporting Standards) are international accounting frameworks that provide guidelines for financial reporting by organizations. Compensation-related accounting standards and reporting under IAS and IFRS primarily pertain to accounting for employee benefits, which includes various forms of compensation. The specific standards within IAS and IFRS that address compensation and employee benefits include: IAS 19 - Employee Benefits: IAS 19 is the primary standard under both IAS and IFRS that addresses the accounting treatment of employee benefits, including compensation. It covers a wide range of employee benefits, including short-term employee benefits, post-employment benefits (such as pensions and gratuities), and other long-term employee benefits. Short-term Employee Benefits: Under IAS 19, short-term employee benefits are benefits (such as salaries, wages, and bonuses) that are expected to be settled within 12 months of the end of the reporting period. These benefits are recognized as an expense in the income statement when the related services are provided by the employee. Post-Employment Benefits: Post-employment benefits are long-term benefits provided to employees after they have left employment. These can include defined benefit plans (e.g., pension plans) and defined contribution plans (e.g., provident funds). IAS 19 provides detailed guidance on how to account for these benefits, including actuarial valuations and recognition of the cost of providing such benefits. Other Long-term Employee Benefits: Other long-term employee benefits are those that are not expected to be settled within 12 months of the end of the reporting period. These can include compensated absences (e.g., paid leave) and long-service benefits. IAS 19 provides guidelines for recognizing and measuring these benefits. Termination Benefits: IAS 19 also addresses the accounting treatment of termination benefits, which are provided to employees as a result of an entity's decision to terminate employment before the normal retirement date. The key principles under IAS 19 and IFRS related to compensation and employee benefits include the recognition of the cost of providing benefits when they are earned by employees (accrual basis accounting) and the disclosure of information about the types and amounts of 200 | H R M employee benefits provided. The standards also require actuarial valuations for some benefits to determine their present value and funding requirements. It's important for organizations to adhere to IAS 19 and IFRS guidelines when accounting for and reporting on compensation and employee benefits to ensure compliance with international accounting standards and provide transparent and accurate financial information to stakeholders. The specific application of these standards can vary depending on the nature and structure of an organization's compensation and benefit plans. Compensation Structures: compensation structures in Bangladesh, as in many other countries, are designed to ensure that employees are fairly and competitively compensated for their work. These structures typically consist of various components, including base salary, allowances, bonuses, and benefits. The specific components and their proportions can vary by industry, company, and job role. Here's an overview of common elements in compensation structures in Bangladesh: Base Salary: Base salary is the fixed, regular payment made to employees for their work. It is often determined based on factors such as job role, experience, education, and market rates. Allowances: Various allowances can be part of a compensation package in Bangladesh. Common allowances include house rent allowance, medical allowance, conveyance allowance, and special-duty allowance. The specific allowances offered depend on the organization's policies and the needs of the employees. Bonuses: Bonuses are often provided in addition to base salary. They can take different forms, such as performance-based bonuses, annual bonuses, or profit-sharing bonuses. The size of bonuses may depend on individual and organizational performance. Overtime Pay: Overtime pay is provided to employees who work beyond their regular working hours, often at a rate higher than their standard hourly rate. Incentive Programs: Some organizations in Bangladesh have incentive programs that reward employees for achieving specific performance goals or sales targets. These incentives may be tied to commissions, sales bonuses, or other metrics. Contributory Provident Fund (CPF): The Contributory Provident Fund is a retirement savings plan where both the employee and the employer contribute to the fund. Employees may receive a lump sum amount upon retirement or upon leaving the organization. Gratuity: Gratuity is a lump-sum payment made by an employer to an employee upon retirement or the completion of a specified period of service. The Gratuity Act, 1972, in Bangladesh governs this. Insurance Benefits: Many organizations provide insurance benefits, including group life insurance and health insurance, to employees. This can cover medical expenses, accidents, and life insurance for employees and their dependents. Provident Fund (PF): The Provident Fund is a savings plan where a portion of an employee's salary is contributed to the fund, often with an equal contribution from the employer. Employees can withdraw this fund upon retirement or resignation. Leave Benefits: Leave benefits include paid time off, such as annual leave, sick leave, and public holidays. Employees are entitled to specific amounts of leave based on labor laws and company policies. 201 | H R M Importance of sound wage structure in Bangladesh A sound wage structure is of significant importance in Bangladesh, as it plays a vital role in various aspects of the labor market, economic development, and social well-being of its citizens. Here are some key reasons why a well-designed wage structure is crucial in Bangladesh: 1. Poverty Reduction: Bangladesh is a developing country with a significant portion of its population living below the poverty line. A sound wage structure can help raise the income levels of workers, reduce poverty, and improve the standard of living for many Bangladeshis. 2. Labor Market Competitiveness: A competitive wage structure can attract and retain skilled workers. It helps the country remain competitive in the global labor market, particularly in industries like textiles, manufacturing, and technology. 3. Incentive for Skill Development: A well-structured wage system encourages employees to acquire and enhance their skills. This, in turn, supports economic growth by fostering a more skilled and productive workforce. 4. Motivation and Employee Retention: A fair wage structure motivates employees, reduces turnover, and enhances job satisfaction. When workers feel they are compensated fairly, they are more likely to stay with their current employer, reducing the cost of recruitment and training. 5. Social Equity and Inclusion: A sound wage structure helps reduce income inequality, which is a critical issue in Bangladesh. It can contribute to a more equitable distribution of wealth and opportunities. 6. Legal Compliance and Labor Rights: Compliance with labor laws and wage regulations is essential for employers in Bangladesh. A well-structured wage system ensures that employers adhere to legal requirements, protecting workers' rights. 7. Economic Growth and Development: A fair wage structure can boost consumer spending, which, in turn, stimulates economic growth. When workers have more disposable income, they contribute to the local economy by spending on goods and services. 8. Social Stability: By ensuring that workers are compensated fairly, a sound wage structure can contribute to social stability. It reduces the likelihood of labor disputes, strikes, and other forms of labor unrest that can disrupt economic activities. 9. Global Reputation: Maintaining fair labor practices and wage structures enhances Bangladesh's global reputation, making it an attractive destination for foreign investment and trade partners. 10. Business Sustainability: A sound wage structure contributes to the long-term sustainability of businesses. It helps organizations attract and retain the talent they need to thrive and grow. 11. Human Development: Access to decent wages promotes human development by providing individuals and families with the means to access healthcare, education, and other essential services. 12. Gender Equality: Wage equity is essential for promoting gender equality. Bangladesh has made significant strides in empowering women in the workplace, and a fair wage structure plays a crucial role in this effort. In Bangladesh, where the labor market and economic conditions can be challenging, establishing and maintaining a sound wage structure is fundamental for promoting economic growth, social development, and individual well-being. It is not only essential for the welfare of workers but also for the overall economic prosperity and stability of the country. Legal and Regulatory Compliance: 202 | H R M Compliance with labor laws and wage regulations is critical. In this area explain the legal framework governing compensation and the consequences of non-compliance. In Bangladesh, compensation practices are subject to various legal and regulatory requirements to ensure fair and lawful treatment of employees. Key regulations and laws pertaining to compensation in Bangladesh include: 1. Labor Act, 2006: The Labor Act, 2006, governs a wide range of labor-related issues, including compensation. It covers matters like wage payments, working hours, overtime, and leave entitlements. This law establishes guidelines for the payment of wages, timing of wage payments, and modes of payment. It also sets rules for deductions from wages and restrictions on wage reductions. 2. Minimum Wage Ordinance, 1984: The Minimum Wage Ordinance, 1984, sets out the minimum wage rates for various types of employment in Bangladesh. This is crucial for ensuring that workers receive a fair and minimum level of compensation. 3. Payment of Wages Act, 1936: This act deals with the payment of wages to employees and stipulates when and how wages should be paid. It also outlines the regulations concerning the timing of wage payments and permissible deductions. 4. The Employees' Provident Fund (EPF) Act, 1952: The EPF Act, 1952, establishes a provident fund for employees and their employers to contribute to. It helps ensure that employees have a financial safety net in retirement. 5. The Gratuity Act, 1972: This act regulates the payment of gratuity to employees upon their termination or retirement. Employers are required to provide gratuity to eligible employees based on specific conditions and service duration. 6. Labor Rules and Notifications: The government issues labor rules and notifications from time to time to provide further guidance and regulations related to compensation, working conditions, and employment practices. 7. Anti-Discrimination Laws: In addition to laws directly related to compensation, there are anti-discrimination laws in Bangladesh that address issues of pay equity and equal pay for equal work, aiming to prevent wage discrimination based on gender, religion, race, or other factors. 8. Social Security and Welfare Programs: Bangladesh has various social security and welfare programs, such as the Employees' State Insurance (ESI) Scheme and the Workers' Welfare Fund, which may affect compensation and benefits for employees. It's essential for employers in Bangladesh to understand and comply with these laws and regulations to ensure that their compensation practices are legal and fair. Violations of these regulations can lead to legal disputes, penalties, and reputational damage for businesses. Employers should also stay updated with changes in labor laws and regulations, and consider consulting with legal experts or labor law specialists to ensure compliance with current requirements. Performance Management and Compensation: Performance management and compensation are closely intertwined within an organization's human resources strategy. Effective performance management systems are essential for aligning employee performance with compensation, rewards, and overall business objectives. Here's how they are connected: 203 | H R M 1. Performance Appraisals: Performance management often involves the use of performance appraisals or reviews to assess employee job performance. These appraisals provide a basis for evaluating an employee's contributions to the organization. 2. Pay for Performance: Compensation systems are frequently designed to reward employees based on their performance. High-performing employees may receive higher salary increases, bonuses, or other incentives, while underperformers may receive smaller or no increases. 3. Incentive Programs: Many organizations use incentive programs as part of their compensation strategy to motivate and reward top performers. These incentives can include bonuses, commissions, profit-sharing, or stock options. 4. Performance Metrics: Compensation decisions often rely on performance metrics and key performance indicators (KPIs). These metrics are used to objectively evaluate an employee's performance and determine the appropriate compensation adjustments. 5. Merit-Based Pay Increases: Merit-based pay increases are common in compensation strategies. High-performing employees are more likely to receive higher merit increases than those with average or below-average performance. 6. Goal Alignment: Performance management typically involves setting and tracking individual and team goals. Compensation strategies should align with these goals, providing financial rewards to those who achieve or exceed them. 7. Performance Improvement Plans: For underperforming employees, performance management may include the creation of performance improvement plans (PIPs). These plans outline expectations for improvement and can impact compensation decisions. 8. Feedback and Coaching: Effective performance management includes providing regular feedback and coaching to employees. This feedback can help employees understand their performance and areas for improvement, which can, in turn, affect compensation. 9. Career Development: Employees who perform well are often considered for career advancement opportunities, which may include promotions or lateral moves that come with increased compensation. 10. Retention and Turnover: Compensation strategies can influence employee retention and turnover. When compensation aligns with performance, it can encourage talented employees to stay with the organization. 11. Motivation and Engagement: Properly linking performance and compensation can motivate employees to put in their best effort and become more engaged in their work. 12. Performance-Based Pay Structures: Some organizations adopt performance-based pay structures, where a significant portion of an employee's compensation is tied to their performance and achievement of set goals. It's important for organizations to maintain a balance between performance management and compensation to create a fair and motivating work environment. Clear communication about how performance affects compensation and providing opportunities for professional growth are also critical aspects of this relationship. Ultimately, an effective performance management and compensation strategy should encourage and reward high performance while providing opportunities for improvement and development for all employees. Problems of compensation Compensation can be a complex and challenging aspect of human resource management. Various problems and issues can arise in designing and managing compensation systems. Some common problems of compensation include: 204 | H R M 1. Pay Inequity: One of the most significant issues is pay inequity, where employees feel they are not fairly compensated for their work, leading to dissatisfaction and potentially legal concerns. Pay inequity can result from wage gaps between different groups of employees or disparities in pay for similar job roles. 2. Lack of Transparency: When employees don't understand how their compensation is determined, it can lead to confusion and mistrust. Lack of transparency in compensation decisions can create resentment among employees. 3. Budget Constraints: Limited budgets can constrain an organization's ability to provide competitive compensation packages. This can make it challenging to attract and retain top talent, leading to talent shortages. 4. Pay Compression: Pay compression occurs when there is little difference in compensation between new hires and existing employees. This can demotivate experienced staff and make it difficult to attract skilled candidates. 5. Market Competition: Companies may struggle to keep up with industry and regional compensation standards, leading to employee turnover as talent seeks higher-paying opportunities elsewhere. 6. Changing Legal Requirements: Frequent changes in labor laws and regulations can make it difficult for organizations to remain compliant. Staying updated on legal requirements and ensuring compliance can be a complex task. 7. Employee Turnover: Inadequate compensation can result in high turnover rates, as employees may leave for better-paying positions. High turnover can be costly in terms of recruitment, training, and lost productivity. 8. Cost of Living Differences: Differences in the cost of living between regions can lead to discrepancies in compensation. Employees in high-cost areas may expect higher salaries to maintain their standard of living. 9. Benefits Complexity: Administering benefits and perks can be complex and expensive. Managing health insurance, retirement plans, and other non-monetary rewards can be challenging for organizations. 10. Inconsistent Performance Management: When performance evaluations are inconsistent or subjective, it can lead to unfair distribution of merit increases or bonuses, causing dissatisfaction among employees. 11. Pay Compression: Pay compression occurs when there's minimal wage difference between employees with varying levels of experience or tenure. It can lead to demotivation and retention issues among more experienced staff. 12. Communication Challenges: Failing to effectively communicate compensation changes or strategies to employees can result in confusion and anxiety about their financial well-being. 13. Discrimination and Bias: Compensation decisions influenced by bias or discrimination based on factors like gender, race, or age can lead to legal consequences and damage an organization's reputation. Addressing these compensation problems requires a thoughtful and strategic approach to compensation design, regular market research, effective communication, compliance with labor laws, and a commitment to fair and transparent compensation practices. Organizations should continuously evaluate and adapt their compensation strategies to remain competitive and motivate their workforce. Previous Question and Solutions: 1.Define Compensation. Discuss the importance of a sound wage structure in Bangladesh. (2020)(2018)(2017) 205 | H R M Compensation, in the context of employment, refers to the total package of rewards earned by employees for their labor. It includes both direct financial payments (such as wages, salaries, bonuses, and commissions) and indirect payments (like health insurance, retirement benefits, and paid time off). Compensation is a crucial component in attracting, retaining, and motivating employees within an organization. While I can't provide a specific writer's definition due to limitations, this explanation captures the essence of compensation in the workplace. A sound wage structure in Bangladesh is essential for several reasons: 1. Poverty Alleviation: Bangladesh has a significant portion of its population living below the poverty line. A fair wage structure ensures that people earn enough to meet their basic needs, thus reducing poverty levels. 2. Social Stability: A fair wage structure promotes social stability by reducing income inequality. When people are paid fairly for their work, they are less likely to engage in social unrest or protest movements, leading to a more stable society. 3. Economic Growth: When workers are paid reasonable wages, they have more disposable income. This increased spending stimulates economic growth by boosting demand for goods and services, encouraging businesses to expand and invest. 4. Human Development: Fair wages enable workers to access better education, healthcare, and overall living conditions. This, in turn, contributes to the overall human development index of the country. 5. Productivity and Quality: Properly compensated workers are more motivated and productive. When employees feel valued, they are more likely to invest their energy and skills into their work, leading to higher quality output in various sectors of the economy. 6. Attracting Skilled Labor: A fair wage structure can attract skilled and talented individuals to the job market. When the compensation is competitive, it encourages skilled professionals to stay in the country and contribute to its development. 7. Global Competitiveness: A balanced wage structure ensures that the cost of production remains competitive in the global market. This is crucial for the country's export-oriented industries, which are major contributors to the economy. In summary, a sound wage structure in Bangladesh is vital for poverty reduction, social stability, economic growth, human development, enhanced productivity, attracting skilled labor, and maintaining global competitiveness. It plays a pivotal role in shaping the overall socioeconomic landscape of the country. 2.Discuss the factors determining the amount of wages. (2020) Several factors influence the amount of wages an individual receives. Here are some key determinants: 1.Education and Skill Level: Highly educated and skilled individuals often command higher wages. Education and training enhance a person's qualifications and abilities, making them more valuable in the job market. 2. Experience: Experienced workers tend to earn more than those who are just starting their careers. As individuals accumulate work experience, they become more proficient and efficient, which employers are willing to pay for. 3. Occupation and Industry: Different occupations and industries offer varying wage levels. Jobs that require specialized skills or expertise typically pay higher wages. For example, professions in healthcare, engineering, and technology often offer higher salaries compared to some other fields. 206 | H R M 4. Market Demand: The demand for specific skills or professions in the job market affects wages. If there's a high demand for workers in a particular sector and a limited supply of qualified individuals, employers might offer higher wages to attract and retain talent. 5. Location: Wages can vary significantly based on geographic location. The cost of living and prevailing economic conditions in a particular region influence how much employers are willing to pay their employees. Urban areas and regions with a higher cost of living often have higher wage levels. 6. Negotiation Skills: The ability to negotiate effectively can impact wages. Individuals who can advocate for their skills and demonstrate their value to potential employers may secure higher compensation packages. 7. Employer's Financial Health: The financial stability of the employer also plays a role. Profitable companies or organizations are often able to offer higher wages to their employees compared to those facing financial challenges. 8. Government Regulations: Minimum wage laws and other labor regulations set by the government establish a baseline for wages. Employers are generally required to pay at least the minimum wage to employees, ensuring a basic standard of living. 9. Inflation and Cost of Living Adjustments: Wages are often adjusted to keep up with inflation and the rising cost of living. Cost-of-living adjustments (COLAs) help maintain the purchasing power of wages over time. 10. Unionization and Collective Bargaining: In industries with strong labor unions, collective bargaining agreements can influence wage levels. Unions negotiate on behalf of workers to secure favorable wages, benefits, and working conditions. These factors interact and vary across different industries and regions, leading to diverse wage levels in the job market. Employers consider these factors when determining how much to pay their employees, aiming to attract and retain skilled and motivated workforce. 3. Mention some important problems of compensation in Bangladesh. (2020) Several factors influence the amount of wages an individual receives. Here are some key determinants: 1. Education and Skill Level: Highly educated and skilled individuals often command higher wages. Education and training enhance a person's qualifications and abilities, making them more valuable in the job market. 2. Experience: Experienced workers tend to earn more than those who are just starting their careers. As individuals accumulate work experience, they become more proficient and efficient, which employers are willing to pay for. 3. Occupation and Industry: Different occupations and industries offer varying wage levels. Jobs that require specialized skills or expertise typically pay higher wages. For example, professions in healthcare, engineering, and technology often offer higher salaries compared to some other fields. 4. Market Demand: The demand for specific skills or professions in the job market affects wages. If there's a high demand for workers in a particular sector and a limited supply of qualified individuals, employers might offer higher wages to attract and retain talent. 207 | H R M 5. Location: Wages can vary significantly based on geographic location. The cost of living and prevailing economic conditions in a particular region influence how much employers are willing to pay their employees. Urban areas and regions with a higher cost of living often have higher wage levels. 6. Negotiation Skills: The ability to negotiate effectively can impact wages. Individuals who can advocate for their skills and demonstrate their value to potential employers may secure higher compensation packages. 7. Employer's Financial Health: The financial stability of the employer also plays a role. Profitable companies or organizations are often able to offer higher wages to their employees compared to those facing financial challenges. 8. Government Regulations: Minimum wage laws and other labor regulations set by the government establish a baseline for wages. Employers are generally required to pay at least the minimum wage to employees, ensuring a basic standard of living. 9. Inflation and Cost of Living Adjustments: Wages are often adjusted to keep up with inflation and the rising cost of living. Cost-of-living adjustments (COLAs) help maintain the purchasing power of wages over time. 10. Unionization and Collective Bargaining: In industries with strong labor unions, collective bargaining agreements can influence wage levels. Unions negotiate on behalf of workers to secure favorable wages, benefits, and working conditions. These factors interact and vary across different industries and regions, leading to diverse wage levels in the job market. Employers consider these factors when determining how much to pay their employees, aiming to attract and retain skilled and motivated workforce. 4.Define fringe benefits. (2019) Fringe benefits, also known as employee benefits or perks, are non-monetary forms of compensation provided by employers to their employees in addition to their regular wages or salaries. These benefits are designed to enhance the overall job satisfaction, well-being, and quality of life for employees. Fringe benefits can vary widely between companies and industries, but they commonly include: Health Insurance, Retirement Benefits, Paid Time Off, Life Insurance, Disability Insurance, Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs), Education Assistance, Childcare Assistance, Employee Assistance Programs (EAPs), Transportation Benefits. Fringe benefits are an essential part of the overall compensation package and contribute to attracting and retaining talent, promoting employee well-being, and creating a positive work environment. 5. Distinguish between skill-based pay and job-based pay. (2019) Criteria 208 | H R M Skill-Based Pay Job-Based Pay Definition Compensation based on Compensation based on employee’s skills, specific job roles or positions knowledge and expertise. within the company. Focus Emphasizes individual skills Focuses on job titles and and growth. predefined job descriptions. Flexibility Highly flexible. Employees Relatively rigid. Pay is can earn more by acquiring determined by job new skills or certificate. requirements. Job Role Less importance on job Job titles and hierarchies are titles; are compensated for crucial for determining pay the skills they possess. levels. Employee Motivation Can motivate employees to May not necessarily acquire new skills and motivate employees to enhance their expertise. improve skills beyond job scope. Pay Structure Often has a tiered structure Hierarchical structure based based on varying skill levels. on job roles, grades and seniority. customization Can be customized to match Limited customization; pay individual skills and scales are predetermined for competencies. specific jobs. These distinctions might vary slightly based on specific organizational policies and practices. 6. As a human resource manager of a reputed company in Bangladesh, what fringe benefits would you offer to your employees? (2019) (2018) (2017) As a Human Resource Manager of a reputed company in Bangladesh, the choice of fringe benefits would depend on the company's budget, industry standards, and the specific needs and preferences of the employees. Here are some common fringe benefits that could be offered to enhance employee satisfaction and well-being in Bangladesh: 1. Health Insurance: Provide comprehensive health insurance coverage for employees and their families, including medical, dental, and vision benefits. 2. Retirement Benefits: Offer a robust retirement savings plan, such as a provident fund or contributory pension scheme, to help employees plan for their future. 3. Paid Time Off: Provide paid vacation days, public holidays, and sick leave to allow employees to balance work and personal life effectively. 4. Life and Disability Insurance: Offer life insurance coverage to employees, ensuring financial security for their families. Additionally, provide disability insurance to support employees in case of illness or injury preventing them from working. 5. Education Assistance: Support employees' educational pursuits by offering tuition reimbursement programs or scholarships for further studies or skill development courses. 209 | H R M 6. Transportation Allowance: Provide subsidies for public transportation or offer transportation allowances to help employees with commuting costs, especially in urban areas with heavy traffic. 7. Childcare Assistance: Offer on-site daycare facilities or childcare subsidies to assist employees with childcare expenses, promoting a healthy work-life balance. 8. Flexible Spending Accounts (FSAs) or Health Savings Accounts (HSAs): Allow employees to contribute pre-tax income to these accounts to cover eligible medical expenses, reducing their taxable income. 9. Employee Assistance Program (EAP): Provide access to counseling services, mental health support, and resources to help employees manage personal and work-related challenges. 10. Professional Development: Allocate funds for employees to attend conferences, workshops, or training programs, fostering continuous learning and skill enhancement. 11. Wellness Programs: Implement wellness initiatives such as gym memberships, fitness classes, or health screenings to promote employees' physical and mental well-being. 12. Performance Bonuses: Recognize and reward outstanding performance with performance-based bonuses or incentives to motivate employees to excel in their roles. 13. Social Activities: Organize company-sponsored social events, team-building activities, and outings to enhance employee morale and strengthen team relationships. 14. Remote Work Opportunities: Offer flexible work arrangements, including remote work options, to promote work-life balance and accommodate employees' diverse needs. It's crucial to periodically assess the effectiveness of these benefits through employee feedback and adjust them according to changing employee needs and market trends to maintain a competitive edge in attracting and retaining top talent. 7. Why do some incentive plans fail?(2018) Several reasons can contribute to the failure of incentive plans in organizations. Here are some common factors: 1. Poorly Defined Goals: If the goals tied to incentives are vague, unrealistic, or not aligned with the overall company objectives, employees may find it difficult to understand what is expected of them, leading to a lack of motivation. 2. Unattainable Targets: Setting unachievable targets can demoralize employees. If the goals are perceived as impossible to reach, employees might lose interest in trying to attain them, rendering the incentive plan ineffective. 3. Lack of Communication: Inadequate communication about the incentive plan, its objectives, and the criteria for earning rewards can lead to confusion. Employees need clear and regular communication to understand the purpose of the incentives and how they can earn them. 4. Unfair Reward Distribution: If employees perceive that the incentive distribution is unfair, favoritism or biases may lead to dissatisfaction. Transparency and fairness are essential to maintain employee trust in the incentive system. 210 | H R M 5. Changing Goals or Rules Frequently: Constantly changing the incentive goals or the rules for earning rewards can create confusion and frustration among employees. Stability and consistency are crucial for the success of any incentive plan. 6. Lack of Employee Involvement: If employees are not involved in the goal-setting process or if their input is not considered, they may not feel ownership of the goals. Incentive plans are more effective when employees have a say in setting their targets. 7. Ignoring Non-Financial Incentives: Monetary rewards are not the only motivators. Nonfinancial incentives such as recognition, career development opportunities, and a positive work environment are equally important. Ignoring these aspects can lead to the failure of the incentive plan. 8. Overemphasis on Individual Performance: In some cases, an excessive focus on individual performance can harm teamwork and collaboration. Team-based incentives might be more appropriate in such situations. 9. Short-Term Focus: If incentive plans only reward short-term achievements without considering the long-term impact, employees might prioritize immediate gains over sustained, high-quality performance. 10. Lack of Monitoring and Feedback: Without regular monitoring and feedback, employees may not know how close they are to achieving their goals. Regular performance reviews and feedback sessions are essential to keep employees motivated and on track. 11. Economic Factors: Economic downturns or financial constraints within the organization might lead to budget cuts, affecting the availability of funds for incentive programs, making it challenging to sustain the plan effectively. To create successful incentive plans, organizations need to ensure clear communication, realistic goal setting, employee involvement, fairness, consistency, and a balance between financial and non-financial rewards. Regular evaluation and adaptation of the incentive plans to align with the organization's evolving goals and employee needs are also crucial for longterm success. 211 | H R M Chapter 15 Human Resource Benefits 1. Introduction: International Perspectives on Human Resource Management In any comprehensive discussion of Human Resource Management (HRM), the introduction serves as the foundation upon which the entire chapter is built. When examining HRM from an international perspective, it becomes vital to establish a contextual framework that transcends borders and encapsulates the global nature of HRM practices. This introduction provides a holistic overview of what international students and HR professionals can expect to explore within the chapter. Key Components of the Introduction: 1. Globalization and the HRM Landscape: The introduction sets the stage by highlighting the significance of globalization in reshaping the field of HRM. It acknowledges that today's organizations operate in an increasingly interconnected world, which necessitates HRM to adapt and evolve to effectively manage the diverse workforce dynamics that span multiple countries and cultures. 2. Customization and Adaptation: It underscores the central theme of customization and adaptation. In the international context, HRM is not a one-size-fits-all approach. Instead, it is the ability to tailor HRM practices to meet the unique requirements of each region, factoring in cultural nuances, legal variations, and market dynamics. 3. The Role of International Students: As international students, this introduction acknowledges our role as global learners and future HR professionals. It emphasizes the relevance of understanding HRM practices in different contexts and how it broadens our perspective and equips us to navigate the complexities of managing a global workforce. 4. Setting the Chapter's Scope: The introduction also serves to delineate the scope of the chapter. It hints at the topics and concepts that will be explored, including the definition of benefits, types of benefits, skill-based pay, job-based pay, forms of benefits and services in Bangladesh, objectives for both employees and managers, and future benefit plans. Purpose of the Introduction: The purpose of this introduction is to prepare readers, including international students, HR professionals, and anyone interested in HRM, for a comprehensive exploration of HRM from a global viewpoint, with a specific focus on Bangladesh. By establishing the global context and the principles that guide HRM, readers are better equipped to delve into the subsequent sections of the chapter with a solid understanding of the overarching concepts and their relevance in a diverse and interconnected world. 212 | H R M 2. Definition of Benefits The term benefits are an indispensable part of today's competitive Human Resource Management. Different authors have defined the term benefits in different ways. Some of the definitions are given below: Dave Ulrich: Benefits are a wide range of non-monetary rewards that organizations provide to their employees. Decenzo and Robbins: Today's workers expect more than just an hourly wage or a salary from their employer; they want additional considerations that will enrich their lives. These considerations in an employment setting are called employee benefits, Gary Dessler: Benefits are indirect financial payments given to employees. They may include health and life insurance, vacation, pension, and education plans. Ivancevich and Konopaske: Employee benefits comprise non-wage compensations that organizations provide to their employees. These include health insurance, paid time off, retirement plans, and various other perquisites intended to enhance the employee's overall well-being. Susan E. Jackson and Randall S. Schuler: Employee benefits encompass the assortment of rewards and advantages provided by employers to attract, retain, and motivate employees. These rewards extend beyond monetary compensation and include elements like healthcare coverage, paid leave, and professional development opportunities. Mathis and Jackson: Benefits refer to the non-wage forms of compensation that organizations offer to their employees. These encompass various programs, such as health and wellness initiatives, retirement plans, and work-life balance accommodations. Milkovich and Newman: Employee benefits encompass the diverse array of non-monetary forms of compensation provided to employees. These rewards serve multiple purposes, including enhancing employee well-being, incentivizing performance, and ensuring compliance with labour laws and regulations. D.J. Cherington: In addition to their regular wages or salaries, employees receive supplemental rewards that are part of the employment exchange. These supplement rewards are referred to as employee benefits. A.A. Sloane: Benefits may be defined as remuneration from the employer to the employee beyond wage or salary. Dale Yoder: Benefits are the supplementary hidden costs of the employers which are given to employees. Werther and Davis: Benefits are indirect compensation, which are usually extended as a condition of employment and are not directly related to performance. C.D Fisher, L.F Schoenfeldt and J.B Shaw: Some mandatory programs pay for time not worked, optional protection, private retirement plans and a wide variety of other services known as rewards. 3. Types of Benefits In the realm of Human Resource Management (HRM), the concept of benefits extends beyond a singular monolithic idea. Instead, it is a multifaceted landscape, rich with diverse categories of incentives and rewards provided to employees. This section dives into the different types of benefits, exploring the categories that organizations in Bangladesh and the international context offer to enhance employee well-being and job satisfaction. 3.1 Monetary Benefits • Basic Salary: The fixed monthly basic pay that forms the core of compensation. Minimum salary in Bangladesh is Tk. 8000 per month. • Allowances: Additional payments for specific expenses such as house rent, medical, phone, travel etc. Common in Bangladesh. 213 | H R M • Bonuses: Performance, festival or profit-sharing bonuses given annually or bi-annually. Prevalent across sectors. 3.2 Voluntary Benefits • Savings & Investments: Employer matched retirement savings, employee share purchase schemes to promote financial security. Offered by some multinationals and banks. 3.3 Retirement Benefits • Pension Plans: Monthly post-retirement payouts as per defined benefit schemes. Common for government jobs. • Provident Funds: Lumpsum payout from employer-employee contributed corpus. Mandatory for organizations with over 100 employees. • Gratuity: Lumpsum amount paid on retirement based on tenure and last salary. Mandatory benefit. 3.4 Time-Off Benefits • Leaves: Paid leaves for holidays, annual leave, sick leave, maternity leave as per Bangladesh Labour Act. • Flexible Work: Options like remote work, flexi hours, and part time work to help work-life balance. Offered by some companies. 3.5 Healthcare Benefits • Medical Insurance: Comprehensive insurance covering hospitalization, critical illness, OPD, maternity etc. Supported by progressive companies. • Free Medical Check-ups: Annual or bi-annual check-ups, vaccination drives arranged by some organizations. 3.6 Other Fringe Benefits • Concessional Loans: For needs like housing, vehicle at lower interest rate. • Discounted Services: Some companies transportation services. • Recreation & Social: Gyms, clubs, sports facilities, family & cultural events organized for employees. offer discounted accommodation, food or 4. Skill-Based Pay and Job-Based Pay In the realm of compensation strategies, organizations in Bangladesh, like many international counterparts, often employ skill-based pay and job-based pay structures to remunerate their employees. 4.1 Skill-Based Pay: Skill-based pay, also known as competency-based pay, is a compensation system that rewards employees for the acquisition and application of specific skills or competencies. In Bangladesh, particularly in industries like information technology and manufacturing, this approach is gaining prominence. Employees who develop new skills or enhance existing ones are often entitled to additional compensation, recognizing their contributions to the organization. For instance, consider a software development company in Dhaka. They implement a skill-based pay structure where programmers who attain certifications in cutting-edge programming languages or technologies receive incremental salary increases. This not only motivates employees to enhance their skill set but also aligns the organization's talent with the evolving industry requirements. 4.2 Job-Based Pay: 214 | H R M Conversely, job-based pay, also referred to as position-based pay, is a compensation system where employees are remunerated based on their job roles and responsibilities. It is a traditional approach widely adopted by organizations in Bangladesh, where job descriptions and hierarchies play a significant role in determining salaries. For instance, in a Bangladeshi banking institution, employees in various roles, such as tellers, customer service representatives, and branch managers, receive salaries based on their designated positions. The focus here is on job evaluation, where factors like job complexity, required skills, and experience are considered in determining compensation 4.3 Key differences between skill-based pay and job-based pay: Aspects Basis of Compensation Pay Structure Flexibility Employee Motivation Adapting to Change Cost of Implementation Organizational Needs Employee Satisfaction skill-based pay Skills and Competencies of the Employee Pay is determined by the employee's skills and competencies. job-based pay Specific Job Roles and Responsibilities Pay is determined by the job position, considering factors like job responsibilities, experience, and market rates for that position. Offers more flexibility, as employees can earn more by acquiring new skills or certifications. Encourages employees to continuously develop their skills and stay updated, leading to higher motivation and personal growth. Well-suited for industries or roles with rapidly changing skill requirements. Can be more complex and costly to implement and administer, as it requires skill assessment and tracking. Less flexible, as pay is largely tied to the job position, and pay increases are often based on performance within that role. Motivates employees to excel in their specific job roles but may not promote broad skill development. Can help organizations adapt to changing market demands by quickly aligning employees' skills with new requirements. Often leads to higher employee satisfaction due to the potential for increased pay based on skill development. Well-suited for roles with stable skill requirements or industries with less frequent skill changes. Simpler and more cost-effective to implement, as it relies on established job positions and market data for pay determination. Suitable for organizations with stable job roles and less frequent changes in skill requirements. Employee satisfaction may vary, as pay increases are more tied to job promotions or performance within the existing role. 5. Forms of Benefits and Services in Bangladesh In the intricate world of Human Resource Management (HRM) within Bangladesh, the provision of benefits and services to employees goes beyond traditional compensation. It encompasses a wide array of offerings designed to enhance the well-being and job satisfaction of the workforce. Let's explore some of the prominent forms of benefits and services in the context of Bangladesh. Monetary Benefits Monetary benefits refer to direct financial compensation and allowances provided to employees. The basic salary forms the core component of monetary benefits. Bangladesh has set the minimum wage at Tk. 8,000 per month across sectors. Beyond basic pay, additional allowances are common for expenses like house rent, medical, phone and travel. Many companies also provide yearly bonuses like 215 | H R M two festival bonuses and performance incentives. Other monetary benefits include retirement plans like gratuity and pension schemes. • • • • • Basic Salary Allowances (House rent, medical, phone, travel etc) Bonuses (Festival, performance etc), Gratuity, Pension Plans Healthcare Benefits Healthcare benefits provide employees access to medical services, insurance and other facilities. Many progressive companies now offer comprehensive medical insurance covering hospitalization, critical illness, maternity needs and outpatient expenses. Some also conduct free annual health check-ups and vaccination camps. The premiums for group health policies are often paid or subsidized by the employer. Maternity benefits like paid leave and medical expenses are mandated by Bangladesh Labour Laws. • • • Medical Services & Insurance Group Health Insurance Premiums Maternity Benefit Work-Life Balance Benefits Work-life balance benefits give employees time off from work and promote recreational activities. This includes paid leave for holidays, annual leave, sick and maternity leave as per policies. Some companies allow flexible work arrangements like remote work, flexible hours and part-time schedules. Recreational facilities like gym memberships, sports clubs, family fun days help employees unwind. These benefits improve employee satisfaction and retention. • • • Paid Leave Benefits Recreational Facilities Flexible Work Options Retirement and Job Security Benefits Benefits that promote long-term financial security even after retirement and during unemployment are highly valued. Laws mandate provident fund, gratuity and group insurance for organizations with over 100 employees. Some companies also provide pensions or retirement savings plans. Unemployment allowances help separated employees cope with temporary joblessness. These benefits reduce employee worries about the future. • • • Provident Funds Retirement Plans & Pensions Unemployment Allowances Other Fringe Benefits Some other extra facilities companies provide for employee convenience and satisfaction can be classified as fringe benefits. For example - housing facilities, transportation, subsidized meals, utility expenses, education fee allowances for children, membership fee reimbursements and discounted services. While not core compensation, these benefits add to the overall appeal of the job. • • • • • • • • Housing Facilities Transportation & Conveyance Education Allowances Utility Subsidies Membership Fees Discounted Services Other Allowances (lunch, mobile etc) 216 | H R M 6. Objectives of Benefits for Employees and Managers in Bangladesh In the dynamic landscape of Human Resource Management (HRM) in Bangladesh, the provision of employee benefits serves a multitude of objectives, catering to the needs and expectations of both employees and managers. Understanding these objectives is essential for international students and HR professionals to navigate the complex world of benefits in this context. 6.1 Objectives for Employees: • Enhanced Job Satisfaction: One of the primary objectives of employee benefits in Bangladesh is to enhance job satisfaction. By offering a comprehensive package that includes healthcare, retirement plans, and non-monetary perks, employers aim to create a work environment where employees feel valued and content. For example, a textile company in Dhaka may provide its employees with regular health check-ups and access to on-site fitness facilities. This not only promotes physical well-being but also contributes to job satisfaction. • Financial Security: Employee benefits, such as retirement and pension plans, aim to provide financial security for employees and their families. These programs ensure that employees have a safety net after retirement, reducing financial stress. A multinational bank in Bangladesh might offer its employees a robust pension plan, which includes contributions from both the employer and the employee, ensuring financial security in their postretirement years. • Career Growth and Skill Development: Many employees in Bangladesh view education and training opportunities as a key objective of benefits. These programs enable career growth and skill development, aligning with the aspirations of a dynamic workforce. Consider a telecommunications company in Bangladesh that provides employees with the chance to participate in industry-related workshops and training programs. This empowers employees to keep pace with technological advancements and enhances their career prospects. 6.2 Objectives for Managers: Talent Attraction and Retention: From a managerial perspective, one of the primary objectives of offering benefits is to attract and retain top talent. In the competitive job market of Bangladesh, a comprehensive benefits package can be a significant differentiator. A technology startup in Dhaka may emphasize its benefits package, including stock options, as a way to attract skilled software engineers and developers. Employee Productivity and Well-being: Managers seek to enhance employee productivity and wellbeing through benefits that promote health and work-life balance. Healthy and satisfied employees are more likely to perform at their best. An e-commerce platform in Bangladesh may provide employees with flexible working hours and the option to work remotely, contributing to work-life balance and overall productivity. Legal Compliance and Risk Mitigation: Managers also consider the legal compliance aspect of benefits. Ensuring that employee benefits align with local labor laws and regulations is essential to mitigate legal risks and protect the organization's reputation. A multinational manufacturing company operating in Bangladesh would have legal experts on its HR team to ensure that all employee benefits, including health and safety regulations, are in line with local laws. Understanding these objectives from both the employee and managerial perspectives offers a holistic view of the significance and impact of benefits in the context of Bangladesh. It highlights the role of HRM in balancing the needs of a diverse workforce while addressing the strategic goals of organizations operating in this dynamic market. 217 | H R M 7. Future Benefit Plans for Employees in Bangladesh In the ever-evolving landscape of Human Resource Management (HRM) in Bangladesh, anticipation of future trends and demands is crucial for organizations looking to remain competitive and attract top talent. This section will explore the potential benefit plans and trends that organizations operating in Bangladesh may consider to meet the needs of their workforce. 7.1 Digital Transformation and Flexible Benefits: As Bangladesh embraces digital transformation, organizations are likely to offer flexible benefits to cater to a tech-savvy workforce. This may include digital wellness programs, virtual healthcare consultations, and the option for employees to customize their benefit packages according to their preferences. For instance, a progressive IT firm in Dhaka may provide employees with a digital platform to select and manage their benefits, including healthcare plans, education allowances, and lifestyle perks, all through a user-friendly app. 7.2 Remote Work and Hybrid Models: The experience of the COVID-19 pandemic has accelerated the adoption of remote work in Bangladesh. As a result, organizations may adapt their benefits to accommodate this shift. This could involve offering remote work allowances, home office stipends, and benefits tailored to remote employees' needs, such as virtual team-building activities and mental health support. Consider a multinational consulting company in Bangladesh that introduces a remote work benefit package, allowing employees to access high-speed internet support and ergonomic office furniture to enhance their work-from-home experience. 7.3 Employee Well-being Initiatives: The importance of employee well-being is expected to grow. Companies in Bangladesh may place a stronger emphasis on well-being initiatives, including mental health support, stress management programs, and access to wellness apps or platforms. The objective is to create a healthier and more engaged workforce. For example, a Bangladeshi pharmaceutical company might collaborate with mental health professionals to offer confidential counseling services to employees, promoting emotional well-being. 7.4 Sustainability and Green Benefits: In a world increasingly focused on sustainability, organizations in Bangladesh may introduce green benefits. These could include incentives for eco-friendly commuting, carbon footprint reduction programs, and initiatives to support environmental causes. Employees who engage in sustainable practices may be rewarded for their efforts. A textile manufacturing company in Bangladesh might encourage its workforce to use public transportation or carpool to reduce carbon emissions and contribute to a greener environment, with benefits such as transportation subsidies or eco-friendly office spaces. 7.5 Holistic Health and Family Support: Benefit plans may also evolve to address holistic health and family needs. Organizations might provide comprehensive health coverage for employees' family members, extended parental leave, and childcare support. A multinational bank in Bangladesh could expand its family support benefits by offering flexible parental leave policies, on-site childcare facilities, and resources for family planning and child education. Adapting to these future benefit plans aligns with the changing dynamics of the Bangladeshi workforce and the global trends that influence HRM practices. As organizations strive to remain competitive in the job market, the ability to envision and implement forward-thinking benefit packages will be essential in attracting and retaining talent in Bangladesh. 8. Examples of Fringe Benefits in Bangladesh Fringe benefits, often referred to as "perks" or "extras," play a pivotal role in attracting and retaining employees in Bangladesh. These supplementary benefits go beyond the traditional monetary 218 | H R M compensation and contribute significantly to job satisfaction. In this section, we'll explore some specific examples of fringe benefits commonly offered by organizations in Bangladesh. 8.1 Housing Allowances: In Bangladesh, housing allowances are a valuable fringe benefit, particularly in urban areas with high living costs. Many organizations provide employees with financial assistance to cover a portion of their housing expenses. For instance, a multinational corporation based in Dhaka might offer a monthly housing allowance to employees working in the capital city to alleviate the burden of high rents. 8.2 Transportation Facilities: Transportation benefits are essential in a country where commuting can be challenging due to traffic congestion and limited public transportation options. Companies may provide employees with transportation facilities, including company-arranged buses, shuttle services, or transportation subsidies. This not only eases the daily commute but also contributes to punctuality and employee wellbeing. For instance, a manufacturing plant in Chittagong might operate a fleet of company buses to transport employees to and from work, ensuring they arrive on time and safely. 8.3 Meal Allowances: Meal allowances are a popular fringe benefit in Bangladesh. Some organizations offer daily or monthly allowances for meals, either as part of an overall compensation package or as an additional perk. Employees receive funds to cover their lunch and sometimes dinner expenses. Consider a call center in Dhaka that provides meal allowances as a part of its employee benefits package. This ensures that employees have access to quality meals during their work shifts, enhancing their job satisfaction. 8.4 Health and Wellness Programs: Health and wellness programs are increasingly becoming essential fringe benefits. These programs can include on-site gyms, fitness classes, stress management workshops, and access to wellness apps or platforms. In a country where health and well-being are highly valued, such benefits are wellreceived. A leading pharmaceutical company in Bangladesh might offer employees an on-site fitness center with personalized fitness training programs, encouraging a healthier and more active lifestyle. 8.5 Employee Discounts and Shopping Benefits: Employee discounts and shopping benefits are particularly attractive in a consumer-driven society like Bangladesh. Many organizations partner with local retailers and service providers to offer discounts and special deals to their employees. This not only improves employee satisfaction but also strengthens the bond between the organization and its staff. For example, a retail chain with stores across Bangladesh may extend employee discounts on their products, enabling staff to access quality goods at more affordable prices. These examples of fringe benefits illustrate how organizations in Bangladesh creatively tailor their offerings to cater to the specific needs and expectations of their employees. Understanding the role of fringe benefits in the local context is crucial for HR professionals and international students seeking to navigate the intricacies of HRM in Bangladesh. 9. Principles for Employee Benefits Administration 1. Genuine Interest: Benefits must be provided out of a genuine interest for employee wellbeing, not as a matter of legislation or charity. Companies globally now realize benefits improve retention. 2. Satisfying Real Needs: Benefits should address actual employee needs, not what employers presume workers want. Regular surveys by HR help identify needs like childcare or elderly care support. 219 | H R M 3. Cost Effectiveness: The costs of benefits must provide good return on investment in terms of higher productivity and retention. HR analysts track metrics like cost per hire to evaluate spending. 4. Broad Accessibility: Maximum employees should be eligible for core benefits without discrimination. Guidelines from the International Labour Organization promote equitable benefit norms. 5. Sound Planning: Benefits planning should have clearly defined objectives, costs, roll-out plans and measures of success. Global companies use data analytics to forecast utilization and costs. 6. Consultation with Employees: Feedback from employees, surveys and collective bargaining provides insight into desired benefits. Multinationals like Unilever have joint managementworker committees on compensation. 7. Convenient Processes: The process to avail benefits should be convenient for employees and not bureaucratic. Some companies offer self-service HR portals to manage benefits. 8. Effective Communication: Employees should be made aware of all available benefits and procedures through training, manuals and counselors. Lack of awareness is a common problem in Bangladesh. 9. Localization: While global frameworks provide guidelines, benefits should be localized to address country-specific needs. For instance, benefits focusing on health and retirement work in aging Western societies. 10. Regular Evaluation: Periodic audits of utilization, costs and ROI should be done to evaluate existing benefits and identify new ones. Companies use analytics tools to get insights. 10. Principles of Fringe Benefits in Bangladesh In the realm of Human Resource Management (HRM) in Bangladesh, the design and implementation of fringe benefits are guided by a set of principles that not only reflect the local culture but also align with international best practices. These principles help organizations create well-rounded benefit packages that cater to the diverse needs and expectations of their employees. 10.1 Equity and Fairness: One of the fundamental principles of fringe benefits in Bangladesh is equity and fairness. Employees expect that benefits are distributed fairly and without discrimination. This principle ensures that all employees, regardless of their role or background, have access to similar benefits. For example, a Bangladeshi technology company may offer the same healthcare benefits to both entrylevel employees and senior executives, ensuring fairness in benefit distribution. 10.2 Legal Compliance: Adherence to labor laws and regulations is a non-negotiable principle for fringe benefits in Bangladesh. Companies must ensure that their benefit packages comply with local laws to avoid legal disputes and maintain their reputation. For instance, a textile manufacturer in Bangladesh will closely follow labor laws and safety regulations to provide employees with benefits such as appropriate safety gear and health insurance as required by law. 10.3 Flexibility and Customization: Flexibility and customization are key principles, as employees in Bangladesh have diverse needs. Benefit packages should allow for some level of customization, enabling employees to select benefits that best align with their individual circumstances. A multinational bank operating in Bangladesh might provide a range of options within their benefit plan, allowing employees to choose from various healthcare packages and additional benefits to suit their preferences and family requirements. 10.4 Cost-Effectiveness: 220 | H R M Balancing the cost of providing fringe benefits with the financial sustainability of the organization is a crucial principle. While organizations aim to provide competitive benefits, they must do so in a financially responsible manner. For example, a fast-growing e-commerce startup in Bangladesh may periodically review its benefit offerings to ensure they remain competitive while managing costs effectively. 10.5 Communication and Transparency: Effective communication and transparency are essential principles to ensure that employees are aware of the benefits available to them. Clear and transparent communication about benefits helps employees understand what they are entitled to and how to access these benefits. A telecommunications company in Bangladesh may maintain an accessible intranet platform that provides employees with detailed information about their benefits, including how to utilize them and any changes in the benefits structure. These principles serve as the foundation for creating fringe benefit packages that not only meet the needs of the workforce but also align with the cultural values and legal requirements in Bangladesh. Organizations that uphold these principles effectively can attract and retain top talent while fostering a positive work environment in this dynamic and diverse market. 11. Employee Engagement and Recognition Programs: Employee engagement and recognition programs are an integral part of HRM in Bangladesh. These programs are designed to foster a positive work environment, boost morale, and recognize employees' contributions. They may include employee of the month awards, appreciation events, and team-building activities. For instance, a large telecommunications company in Bangladesh might organize monthly recognition events to acknowledge outstanding employees and encourage their continued commitment and engagement. 12. Family-Centric Benefits and Work-Life Balance: Family-centric benefits and work-life balance initiatives are becoming increasingly relevant in Bangladesh's HRM landscape. These benefits are aimed at supporting employees in managing their family responsibilities while maintaining a healthy work-life balance. They can include extended parental leave, flexible work arrangements, and family-friendly policies. For example, a prominent bank in Bangladesh may offer extended parental leave and flexible working hours to help employees balance their professional responsibilities with their roles as caregivers, reflecting the organization's commitment to supporting families and work-life balance. 221 | H R M EXERCISE Answer briefly the following items : 1. Define employee benefits and explain their significance in modern Human Resource Management. 2. Differentiate between monetary and non-monetary benefits, providing examples of each. 3. How does skill-based pay differ from job-based pay in terms of compensation and motivation? 4. List and briefly explain the principles that guide the design and implementation of fringe benefits in HRM. 5. Describe the concept of family-centric benefits and their relevance in promoting work-life balance. 6. How does globalization impact HRM and the diversity of employee benefits? 7. Provide examples of benefits offered by organizations in Bangladesh to attract and retain talent. 8. Explain the importance of equity and fairness in the distribution of employee benefits. 9. How do employee benefits contribute to employee engagement and recognition within an organization? 10. Elaborate on the concept of cost-effectiveness in benefit design and administration. Broad Questions (5): 1. Discuss the evolution of employee benefits in HRM and their role in creating a competitive advantage for organizations. 2. Compare and contrast the advantages and disadvantages of skill-based pay and job-based pay for organizations and employees. 3. How can organizations in Bangladesh adapt their benefit packages to address the changing dynamics of the workforce, considering globalization and technological advancements? 4. Explore the legal compliance aspect of employee benefits in HRM, with a focus on the labor laws and regulations in Bangladesh. 5. Explain the concept of customization and adaptation in the context of fringe benefits and how they align with organizational strategies. Mini Case Study: Title: Enhancing Employee Well-being at Chocos Corporation Case Description: Chocos Corporation, a leading technology company in Bangladesh, is experiencing challenges in retaining top talent. The competitive job market and the dynamic nature of the tech industry have raised concerns about employee turnover. The HR department is tasked with enhancing employee well-being to address these issues. Case Study Questions: 1. How can XYZ Corporation utilize skill-based pay to attract and retain tech professionals in a competitive job market? Provide specific recommendations. 2. Explain how a well-designed family-centric benefits package can contribute to improved employee retention and work-life balance at XYZ Corporation. 3. In the context of globalization, how can XYZ Corporation ensure that its employee benefits remain adaptable and competitive for a diverse workforce with varying needs and expectations? 222 | H R M Chapter 16 Managing Health, Safety & Stress Learnning Objectives After completing this chapter, we shall be able to: • Identify symptoms of inadequate industrial health. • Discuss the provisions, regrading the health of industrial workers in Bangladesh. • State the provisions regarding the safety of the workers in Bangladesh. • Determine stress reduction process resulting job satisfaction. Importance of Industrial Health An industrial organization can run smoothly if its employees and workers are sound as regards their health, skills and efficiencies. Without hard work industrial productivity cannot run 223 | H R M continuously. It is possible when workers are of good health. It can be ensured by two ways, 1) if healthy employees are recruited and 2) if their health is maintained properly. For the purpose, all hazard should be removed as largely as possible. A strong health and safety program can assure employees health sound and their safety. So every industrial organization must posses its own health and safety program. Proper health and safety program needs a substantial amount of money for recruiting health personnel and equipments. To use these equipments trained technicians should also be appointed. Symptoms of Inadequate Industrial Health Inadequate health can manifest through a variety of symptoms and indicators. It's important to note that specific symptoms may vary depending on the underlying health issue. Here are some common symptoms of inadequate health: 1. Fatigue: Persistent tiredness and lack of energy can be a sign of various health problems, including anemia, sleep disorders, or chronic illnesses. 2. Unexplained Weight Changes: Sudden and significant weight loss or gain without a clear reason can be indicative of underlying health issues, such as thyroid problems or metabolic disorders. 3. Pain and Aches: Chronic or severe pain in various parts of the body may be a sign of musculoskeletal problems, arthritis, or other conditions. 4. Shortness of Breath: Difficulty breathing or shortness of breath could be due to respiratory issues, heart problems, or lung diseases. 5. Digestive Problems: Persistent digestive symptoms such as diarrhea, constipation, bloating, or stomach pain may indicate gastrointestinal disorders. 6. Changes in Skin and Hair: Skin issues like rashes, dryness, or changes in the appearance of moles, as well as hair loss or changes in hair texture, may signal health problems. 7. Cognitive and Mental Health Changes: Symptoms like memory problems, difficulty concentrating, mood swings, and feelings of anxiety or depression can be related to mental health issues. 8. Fever: A persistent fever can be a sign of an underlying infection or inflammatory condition. 9. Chronic Cough: A cough that persists for an extended period may indicate respiratory conditions, allergies, or other issues. 10. Changes in Urination: Frequent urination, pain during urination, or changes in the color and odor of urine can be signs of urinary tract or kidney problems. 11. Swelling: Persistent swelling in the limbs or other body parts may be related to cardiovascular problems, kidney issues, or other health concerns. 12. Changes in Vision or Hearing: Blurred vision, loss of vision, hearing loss, or tinnitus (ringing in the ears) can indicate eye or ear problems. 13. Frequent Infections: Repeated infections or a weakened immune system may suggest an underlying health condition. 14. Skin Conditions: Conditions like eczema, psoriasis, or acne can be symptomatic of skin health issues. 15. Sleep Disturbances: Insomnia, sleep apnea, or other sleep disorders can negatively impact overall health. 224 | H R M 16. Reduced Mobility: Difficulty with physical movements and activities can result from musculoskeletal issues, obesity, or neurological conditions. Provisions regarding the health of industrial workers in Bangladesh The health of industrial workers in Bangladesh is governed by various labor laws, regulations, and policies. Some key provisions include: 1.The Bangladesh Labor Act, 2006: This comprehensive law includes provisions related to the health and safety of industrial workers. It establishes the right of workers to a safe and healthy working environment. 2.Factories Act, 1965: This law primarily deals with the safety and health standards in factories. It mandates the provision of clean drinking water, first aid facilities, and proper ventilation in workplaces. 3.Bangladesh Occupational Safety, Health and Environment Foundation (OSHE): OSHE is an organization that works to promote occupational safety and health in the country by raising awareness, conducting research, and advocating for better working conditions. 4.National Policy on Occupational Safety and Health, 2013: This policy outlines the government's commitment to ensuring the safety and health of workers in all sectors, including the industrial sector. 5.The Directorate of Inspection for Factories and Establishments (DIFE): DIFE is responsible for inspecting and enforcing safety and health regulations in workplaces, including industrial settings. It's essential for both employers and workers to be aware of these provisions to ensure a safe and healthy working environment. The government of Bangladesh continues to work on improving and updating these regulations to enhance worker safety and health in the industrial sector. Provision Regarding The Safety Of The Workers In Bangladesh Safety Committee: As per Bangladesh Labor Rules 2015, if the factory has 50 or more than 50 workers, it is mandatory for factory owner to form and ensure functioning of a safety committee following the instructions as described in BLR (Section 90A, BLA 2006). Procedures for formation and role of safety committees is specified in Bangladesh Labor Rules (Chapter 8 pand schedule 4, BLR 2015). Sick room and dispensaryp: According to the Bangladesh Labour Act (2006), in every establishment, the first-aid box or cupboard - equipped with the contents prescribed by BLR shall be provided, and be readily accessible to all, during working hours (Section 89), and where 300 (three hundred) or more workers are ordinarily employed, a sick room with a dispensary - of a size and containing equipment or other facilities prescribed by Section 77 of the BLR- shall the BLR (Section 89 (5), BLA 2006 and Section 77, BLR 2015). Medical centre: In any establishment or establishments where 5000 (five thousand) or more workers are employed, the employer or employers of that establishment or those establishments, shall arrange for operating a permanent medical centre, in such manner, as may be prescribed by BLR (Section 89 (6), BLA 2006 and Section 78, BLR 2015). In every establishment where 500 (five hundred) or more workers are employed, Section 79 of the BLR (Section 89 (8), BLA 2006 and Section 79, BLR 2015). Awareness on Hazards: As mentioned in section 78A (3) of the BLA, an owner is obligated to make all workers aware of workplace hazards through training. The National OSH Policy 225 | H R M (2013) describes the role of employers to identify OSH risks and to inform every person in the workplace about occupational health and safety risks. Drinking water: The BLA (2006) mandates that factories shall provide purified potable water for workers at a suitable point in the factory/establishment (BLA Section 58 (1)). During hot summers, provision shall be made for cooling potable water for establishments that employ more than 250 workers (Section 58. 3). Rest room: BLA makes it mandatory that the employer shall establish a rest room for the workers (in case of more than 50 workers) with arrangement for drinkingwater, where they can eat meals brought with them and take rest [ section 93 (1), BLA]. Separate rest rooms shall be provided for male and female workers ifthe number of female workers is more than 25 [Section 93(3), BLA].3.5.1.7 Objectives of Safety and Health Program With a view to achieve some objectives, safety and health programs have been undertaken These objectives are discussed below: 1. To increase employee morale: The first objective of safety and health program is to increase employee morale. If sufficient safety measures are taken and suitable health program is established, the employee morale may be increased. 2. To reduce expenditure: Outside safety and health programs are more expensive than internal families. That is why management arranges internal safety and health programs. Similarly employees prefer to enjoy these families. 3. To reduce turnover: If jobs employees are made safe and health programs are sufficient, they usually do not move from the jobs frequently. They labor troves is less? 3. To increase productivity: Safety and health program reduces the tension of accident and risk of inability to work. These encourages of employees to achieve the productivity target and increase the level. 5. To reduce accident: Accident occurs due to lack of safety program and health care facilities, with the objective of reducing number are undertaken. 6. To reduce mental pressure: The sent objective of safety and health programs is to create job satisfaction among the employees. They become satisfied with the management and facilities available in the organization. 7. To attract potential employees: potential employees are attracted to be organizations where there is appropriate safety and health programs are availed. Because the feel that under this circumstance they will show their efficiency and experience.. From the above discussion can conclude that management alloys in to a god making environ meant both physical and psychological these purpose safety and health programs and stab hired and magisterial. Welfare of industrial workers in Bangladesh The welfare of industrial workers in Bangladesh is a crucial topic, and it has been a subject of concern for various stakeholders, including the government, labor organizations, and international bodies. Several factors impact the welfare of industrial workers in Bangladesh: 226 | H R M 1. Labor Laws and Regulations: Bangladesh has labor laws and regulations in place to protect the rights and welfare of industrial workers. These laws cover areas such as minimum wage, working hours, overtime, and workplace safety. 2. Minimum Wage: The government periodically revises the minimum wage for different industries and sectors to ensure that workers receive fair compensation for their labor. 3. Workplace Safety: Ensuring safe working conditions is vital for worker welfare. Tragic incidents, such as factory fires and collapses, have highlighted the need for improved safety standards in the country's factories. 4. Labor Unions: Labor unions play a role in advocating for workers' rights and welfare, including fair wages and improved working conditions. 5. Social Safety Nets: The government has initiated programs to provide social safety nets for industrial workers, including healthcare, education, and housing support. 6. International Initiatives: International organizations and brands have pushed for better conditions for workers in the Bangladeshi garment industry, which is a significant part of the country's industrial sector. Despite efforts to improve worker welfare, challenges persist, such as low wages, inadequate safety measures, and the need for better enforcement of labor laws. Continuous efforts are necessary to enhance the well-being of industrial workers in Bangladesh. Problems of safety and health of industrial employees Safety and health concerns for industrial employees are significant and can vary depending on the industry and specific workplace. Here are some common problems: 1. Workplace Accidents: Industrial settings often involve heavy machinery and hazardous materials, leading to the risk of accidents, such as slips, trips, falls, or machinery-related incidents. 2. Chemical Exposure: Employees may be exposed to harmful chemicals, which can lead to respiratory issues, skin problems, or long-term health consequences. 3. Noise and Hearing Loss: Prolonged exposure to high noise levels in industrial environments can result in hearing loss and other auditory problems. 4. Repetitive Strain Injuries: Repetitive tasks can lead to musculoskeletal disorders, such as carpal tunnel syndrome or back injuries. 5. Respiratory Hazards: Poor air quality due to dust, fumes, or other contaminants can cause respiratory illnesses and long-term health problems. 6. Psychological Stress: The pressure to meet production targets, long working hours, and job insecurity can lead to stress, anxiety, and other mental health issues. 7. Inadequate Training: Lack of proper training in safety protocols and equipment operation can increase the risk of accidents and injuries. 8. Ergonomic Issues: Poorly designed workstations and tools can lead to discomfort and ergonomic-related health problems. 9. Lack of Personal Protective Equipment (PPE): Inadequate access to and use of PPE can expose employees to unnecessary risks. 10. Health and Wellness Programs: The absence of comprehensive wellness programs may result in employees neglecting their health or lacking access to resources for maintaining wellbeing. 227 | H R M To address these problems, industrial workplaces should prioritize safety measures, provide ongoing training, conduct regular risk assessments, and create a culture of safety that empowers employees to report concerns and participate in safety initiatives. Preventative Measure Preventative measure includes the measures or steps taken for prevention of disease as opposed to disease treatment. Preventive care strategies are typically described as taking place at the primary, secondary, and tertiary prevention levels. Preventive Health Measures encompass a variety of interventions that can be undertaken to prevent or delay the occurrence of disease or reduce further transmission or exposure to disease. Preventive health measures are an important part of health promotion efforts and many have been recognized as a cost-effective way to identify and treat potential health problems before they develop or worsen. Related Journals of Preventative Measure International Journal of Waste Resources, Journal of Addiction Research and Therapy, Journal of Ancient Diseases & Preventive Remedies, American Journal of Preventive Medicine, Journal of Preventive Medicine and Hygiene, International Journal of Preventive Medicine, Journal of Preventive Medicine and Public Health. Occupational Stress • What Is Occupational Stress? Occupational stress is the negative psychological and physical effects an employee experiences due to the responsibilities, environment, or other pressures of the workplace.As everyone has different stress tolerance, the intensity is influenced by the individual employee, their specific role, the company culture, and more • What Are the Different Types of Occupational Stress? If you find that your employees are under constant stress, you should find out what type of stress they are experiencing. Doing so will help you determine the root cause of their stress and take action to address the situation. ➢ Here are five common types of workplace stress: New Job Stress: New employees can easily feel overwhelmed during the onboarding process. They have to simultaneously learn about their job responsibilities, build relationships with their coworkers, and acclimate to a new company culture, all while trying to perform at a high level to make a good first impression. Acute Stress: This is situational and is caused by passing issues such as an upcoming deadline or a big presentation. Usually, acute stress dissipates as soon as the stressful event is over. Workplace Conflict Stress: Workplace conflict can be caused by disagreements on business decisions or personality clashes. It can manifest as gossip or bullying which can have harmful effects on your employees’ mental health. Other consequences include decreased productivity and increased absenteeism. 228 | H R M Fear-Based Stress: Situations that threaten employees’ job security can make it difficult for them to perform well. Examples include potential layoffs, a difficult relationship with their boss, or added responsibilities that they were not prepared for. Burnout: Employees experience burnout when they feel physically and emotionally exhausted from work for an extended period, hindering their efficacy. Burnout can be caused by different factors such as being on an understaffed team or consistently having unreasonable deadlines. Levels of Stress There are three level of stress. According to the hierarchies of management these stress are experienced. These levels and their consequence are given below : 1. High level stress : Lead poor performance 2. Moderate level stress: Help stimulate employees to work longer, harder and better 3. Low level stress: It leave employees unstipulated, resulting in low productivity, stress has both internal and external factor.Internal factors are: Persons attitude and expectations, external factors can be divided into two typesa) Physical: It includes poor ventilation or lighting or physically demanding tasks. b) Psychological: It includes demand of the job or demands for home. Causes of Stress Every aspect of a persons life is a potential source of stress. Stress comes from pressures at work or at home or personality traits: 1.Work pressures the type of a job person holds has a significant impact on the degree of stress he or she faces at work, some occupations have a great deal of stress associated with them, others are less stressful, the high – strain job listed is the jobs in wish which the highest level of stress reported.Another cause of stress in work place is by living and working with the constant fear of being replaced. 2.Home stressors: Single – Parent families, which include fathers raising children and dualcareer couples,are common place.These changes have made the conflict between parent as parent and parent as paid employee an extremely deep cource of stress. Mother feels stress by the guilt of not being a good parent when work pressures are high and not being employee when home pressures take priority father often has pressure from both career and family. 3.Personality: Certain personal characteristics draw certain individuals to specific jobs. These jobs tend to cause stress in the people they attract.The individuals who often have a distorted view of selflessness tend to have extremely high levels of stress that may eventually lead to burnout because they ignore their own needs and give too much of themselves to others. What are the Consequences of Stress? Stress shows itself in a number of ways. Firstly it can affect individuals physically, behaviorally and psychologically. Secondly it can have organizational consequences. Physical Out of the physical correlates of work stress, the most focused is that related to the cardiovascular system. Following are some of the physical consequences of stress. : Sleep 229 | H R M difficulties, Loss of appetite, High blood pressure, High cholesterol level, Heart Disease, Strokes, Diabetes, and Ulcers. Behavioral The behavioral consequences of stress are: Anger, Frustration, Anxiety, More irritability with family members, Depression, Feeling powerless, increased use of drugs or sleeping pills. Psychological Long term stress can manifest in the following psychological consequences; Serious depression, Accidents, Domestic violence, Suicidal behavior, Alcoholism. Organizational Stress is a cause of concern in almost all the organizations. It is one of the prime factors that result in lagging productivity, rising cost, more errors, more absenteeism and higher employee turnover rate. Stressed employees are less creative and less effective decision makers. What about the risk an organization is exposed to when talented and loyal employees become ill, burnout and are consequently job disabled, or are faced into premature retirement? Organizational consequences of jobs stress are those outcomes that are traditionally defined as employee’s effectiveness. Three of the most traditional criteria that are linked to work stress are work performance (quantity and quality), attendance (absenteeism) and membership (turnover): Absenteeism, High turnover, Low productivity, Rising costs, More errors, Less creativity, Low morale. Stress Reduction Techniques In an effort to reduce their costs, companies have begun implementing stress reduction or control programs for their employees.These programs represent proactive strategies toward stress management and come in a variety of forms. These symptoms can indicate stress,especially when appearing in groups and when they represent major changes in behavior. People may exhibit symptoms and suffer from stress even if they are not aware of feeling pressured. 1.Behavioral: Heavy smoking increased use of alcohol , drug use, high risk behavior, violence ,overeating hyperactivity , steep disturbances, and nightmares. 2. Attitudinal: Boredom, cynicism, distrust, despair, feelings of helplessness, selfrighteousness, feeling trapped, self-doubt. 3. Emotional: Anxiety, feelings of being overhelmed , fear, paranoia, perceived lack of control, guilt, depression, anger, panic, feelings of tension, pressure. 4. Social: Withdrawal from friends, marital/relationship problems, restricted social contracts, critical toward self, conflict with spouse, over dependence on others. 5. Physical: Headaches, mental pain, indigestion, nauses , fatigue, frequent colds, weight loss or gain, heart palpitations, vision problems. 6. Mental: Difficulty concentrating, inability to make decisions, short attention span, intrusive images, self-blaming, daydreams, avoidance of certain thoughts. Developing a safety and health program involves several key steps: 230 | H R M 1.Commitment from Leadership: Get support and commitment from top management to prioritize safety and health in the organization. 2.Identify Hazards: Conduct a thorough assessment to identify workplace hazards. This includes physical, chemical, biological, ergonomic, and psychosocial hazards. 3.Risk Assessment: Assess the risks associated with identified hazards to prioritize them and determine the severity of potential incidents. 4.Develop Policies and Procedures: Create safety and health policies and procedures based on the identified hazards and risks. These should include emergency response plans and reporting mechanisms. 5.Training and Education: Provide training and education to employees on safety procedures, hazard recognition, and the proper use of safety equipment. 6.Employee Involvement: Involve employees in the development of the program. They can provide valuable insights and help identify hazards. 7.Communication: Establish clear communication channels for reporting safety concerns or incidents. Encourage open and transparent communication. 8.Monitoring and Inspections: Regularly monitor and inspect the workplace to identify new hazards and ensure compliance with safety procedures. 9.Record-keeping: Maintain records of safety and health activities, incidents, and corrective actions. 10.Review and Continuous Improvement: Regularly review the safety program to identify areas for improvement and make necessary adjustments. 11.Feedback and Employee Engagement: Encourage feedback from employees and engage them in safety initiatives to continuously improve the program. 12.Training and Skill Development: Continuously educate and train employees to enhance their safety skills and awareness. 13.Culture of Safety: Promote a culture of safety within the organization where safety is a core value and part of daily operations. Remember that a safety and health program should be tailored to the specific needs of your organization and continuously adapted to changing circumstances. Regularly assess its effectiveness and make improvements as necessary. Approaches To Stress Management Some of the stress reducing strategies from individual’s point of view are : 1. Knowledge About Stress. In the first stage, an individual should become knowledgeable about stress. He should know about the process and effects of stress. He must find out the major sources of his stress. He must anticipate stressful periods and plan accordingly in advance. He must be honest with himself and decide what he can cope with what he cannot. 2. Physiological Fitness. Exercise in any form can help people in coping with the stress. Non competitive physical exercise such as aerobics, walking, jogging, swimming, riding a bicycle, playing softball or tennis have been recommended by physicians as a way to deal with excessive stress levels. There is evidence to suggest that individuals who exercise are much less likely to suffer from certain types of stress related exercises. With proper exercise, diet control and non-smoking habits, blood pressure and cholesterol become controlled and the 231 | H R M body becomes more resistant to pressures. People are more likely to get physically sick or emotionally depressed if they are over weight or poorly nourished. 3. Time Management. Most of the people are very poor in managing their time. They don’t know that what must be done and when it would be desirable to do so. The result of poor time management is feeling of work overload, skipped schedules and tension. A well organised person can often accomplish twice as much as the person who is poorly organised. Therefore, an individual must understand how to manage his time so that he can cope with tensions created by job demands. A few of the well known time management principles are : • • • • Preparing a daily list of activities to be attended to. Prioritizing activities by importance and urgency. Scheduling activities according to the priorities set. Knowing your daily schedule and handling the most demanding parts of a job when you are most alert and productive. 4. Assertiveness. An individual should become assertive. He should not say ‘Yes’ when he wants to say ‘No’. He should start saying No to people or managers who demand too much of his time. Being assertive is an important factor in reducing stress. 5. Social Support Network. Every person should have people to turn to, talk to and rely upon. Good friends become highly supportive during times of stress and crisis. Social net work includes friends, family or work colleagues. Expanding your social support system can be a means for tension reduction because friends are there when needed and provide support to get the person through stressful situations. 6. Readjust life Goals. Every individual must know what he really wants to do. This should relate to not only the major decisions of the life but to all activities in our life. He must know what is important for him. Because of the severe competition in life to go ahead, most individuals set very high standards and goals for themselves. These high expectations and limited resources to reach such expectations result in stress. Accordingly, every person must readjust his goals and make sure he has the ability and resources to reach such goals. Perhaps the goals should be established after the resources have been analysed. 7. Relaxation Techniques. Every individual must teach himself to reduce tension through relaxation techniques such as Yoga, mediation, hypnosis and biofeedback. 15-20 minutes a day of deep relaxation releases tension and provides a person with pronounced sense of peacefulness. Deep relaxation conditions will bring significant changes in heart rate, blood pressure and other physiological factors. Yoga is probably the most effective remedy for stress. Studies have revealed that Yoga has cured several stress related diseases. 8. Plan your life in Advance. So many times, people create situations which induce stress because they either did not plan or did a bad job of planning. The traditional Indian attitude of “whatever will be, will be” a way of accepting the unexpected difficulties in life. This attitude may be relevant in those situations over which we do not have any control like death in the family, but for other events in life, it is better to plan in advance, so that we can confront them with confidence when they occur. Individuals may design their own strategies to reduce stress, but it is a must for the organisations to develop programmes that will help the employees in reducing their stress. This will lead to less employee turnover, absenteeism and as a result productivity will improve. Some of the measures which organisations can take are; 1. Selection and Placement. Individuals differ in their response to stress situations. We know that ‘Type A’ individuals are more prone to stress. On the other hand, in the organisations there 232 | H R M are certain jobs which are more stressful as compared to other jobs. While doing the selection and placement of the employees, these factors must be kept in mind. The individuals who are more prone to stress should not be put on jobs which are stressful. The individuals who are less prone to stress may adapt better to high stress jobs and perform those jobs more effectively. 2. Goal Setting. Based on extensive amount of research it has been concluded that individuals perform better when they have specific and challenging goals and they receive feedback on how well they are progressing towards those goals. Goal setting can reduce stress as well as provide motivation. It will result in less employee frustration, role ambiguity and stress. 3. Improved Communication. Sometimes due to lack of effective communication from the superiors, the employees do not know what they have to do and how they have to do it. This result in role ambiguity. Similarly, when two or more persons have contradicting role demands from an employee, it leads to role conflict if there is lack of proper communication. Effective communication with employees reduces the uncertainty by lessening role ambiguity and role conflict. 4. Redesigning Jobs. Organisations should redesign the jobs in such a way as to give employees more responsibility, more meaningful work, more autonomy and increased feed back. This will help reduce the stress caused by monotony, routine work, work overload or underload and role ambiguity. Job redesigning enhances motivation, reduces the stress among the employees and enhances “Quality of work life“. 5. Participative Decision Making. If the organisations give the employees participation in those decisions that directly affect them and their job performance, it can increase employee control and reduce the role stress. The main reason of role stress is that employees feel uncertain about their goals, expectations and how they will be evaluated. These uncertainties can be reduced by the management by giving the employees a right to participate in the decision making. 6. Building Teamwork. The management should try to create such work environment in which there is no provision for interpersonal conflict or inter group conflict. Such conflicts are the causes of stress, such should be prevented from building or eliminated if they develop. Accordingly such team work should be developed that groups and the members are mutually supportive and productive. Members of the group should consider themselves as members of the same family and seek social support from each other. 7. Personal Wellness Programmes. These personal wellness programmes focus on the employees total physical and mental condition. Organisations can provide facilities at their premises for physical fitness such as gyms, swimming pools, tennis courts etc. as well as psychological counselling. They should hold seminars or workshops to make the employees understand nature and sources of stress and the possible ways to reduce it. These workshops should help those individuals who are already under stress. Moreover, a supervisor can impact personal wellness of his subordinates through positive example, encouragement and by practising the basic concepts and techniques of human resource management. Case study :The new Safety and Health Program Based upon your knowledge of health and safety matter and your actual observations of operations that are similar to theirs make a list of the conditions employees and others. Some of the potential hazardous conditions employees are exposed too are cables and wires,strained backs and necks,eye strain, stress,burn out,work to ensure people don’t trip 233 | H R M over wires and get hurt.Safety produres should be formulated and implemented to work on wires by the employees. For example, it should be made necessary to plug the power cable out of electricity socket before working on any system. Experiment technician should be hired who should be asked to fix the problems related to electricity, instead of employees. They should break patterns to avoid a burn out,stay active to avoid stress and depression, get away from the work place and stretch every now and then.You can take a walk around the office to refresh your body and clear your mind a bit.Get quality sleep time and make sure you are well rested for when you go to work. The company can also provide ergonomically designed chairs and tables to improve comfort at work. Also,ensure that the place is clear and disease free, you wouldbe surprised how much bacteria you can find on a keyboard or a work desk. The most important thing is the job description which should include the behaviour and skills required to perform a certain job.If the job description is well designed it should answer all the questions one might have.Training is also very important and ongoing related to their work reduces the chances of any accident or stress at work.Employees should be trained for increasing demand of their responsibilities so that they are able to fulfill them more effectively. Code of ethics should be prepared and implemented in the company. All employees should be punished in monetary or non monetary means if they do not follow the code of ethics. Safety procedures should be outlined and communicated to employees and employees should perform them on regular basis to make sure that they understand it well. Screening out individuals can raise ethical questions and get the company into a lot of trouble. Someone would not suggest that approach because behaviour can be curved and improved through effective training program. Training can be provided to accident - prone employees as a how to perform a certain tasks in order to avoid any potential accident. Some incentives can also be offered to employees if a certain duty is performed without any accident. In this way these employees can be saved from any stress or accident. Some Questions: 1. What are the provisions of health and hygiene of factory workers according to the Factories Act -1965 in Bangladesh? 2. Discuss the provisions regarding Safety and security of factory workers of Bangladesh as incorporated in the Factory Act 1965 of Bangladesh. 3. Mention the provisions regarding Welfare of workers in Bangladesh according Factories Act 1965. 4. (a) What is meant by streets? (b) Mention the causes and symptoms of stress. (c) Discuss the methods of reducing stress and burnout. 5. (a) Discuss the symptoms of in adequate industrial health. (b) Discuss the importance of safety and health program in your industry. 6. (a) What are the objective of Safety and health programs? (b) Do you find any problems of safety and health program of BD Industries? Discuss them in brief. 7. (a)Discuss the steps told be followed for developing a Safety and healthy working environment. (b) How can a Safety and health program be development in your organisation? (c) Briefly discuss the approaches to stress management. 234 | H R M Chapter:17 Human Resource Information Systems Introduction: Human Resource Information Systems are a subject of study for two about two decades. The first studies on Human Resource Information Systems date back to the mid-1980’s (e.g. DeSanctis, 1986). However since the end of the 1990’s this subject has grown in importance as the widespread application of web technology has given a boost to further development of web-based HRISs. With the use of web technology, HRISs have crossed the borders of the HR department and have began to target the wider organization: senior management, line managers and last but for sure not least employees. With this development studying HRIS has become more complex, with HRISs evolving into information systems entangled with all aspects of organization. In other words, HRISs are not a technology, but are the result of the integration of ICT and organization. Advancements in the field of IT has opened up newer avenues for the organizations andprovided a competitive advantage by using innovative and customized solutions. It hasbecome an integral part of the organizational functioning and all the departments depend on integrated systems for organizing, storing, retrieving and reviewing data. Today Internet and automation has facilitated accessibility, reliability and accuracy of information; improved organizational effectiveness and provided a leadership edge by applying technology in various operations. Human Resource Management function is fast evolving and the application of Information Technology has revolutionized the way in which organizations operate. The field of Human Resource Management has been continuously evolving and the HR in today’s scenario is playing a strategic role than merely a support system. Human Resource function primarily deals with the employees, employers and all the people who are related with the organization. It is designed to improve employee productivity, performance and align the workforce with the business. The HRM functions in an organization deals with people related issues like Recruitment &Selection, Compensation, General Administration, Employee Welfare and Involvement,Communication, Organizational Development, Performance Management, EmployeeMotivation, Rewards & Recognitions and Training & Development. HRIS or Human Resource Information System, is a customized software solution designed for helping the organizations to automate and manage their HR, payroll, management and accounting activities. HRIS affects the performance of the people, processes and key organizational strategies by automating key HR processes like recruitment, training, manpower planning, performance appraisal and job analysis & design. What is HRMS/HRIS ? HRIS stands for Human Resources Information System. The HRIS is a system that is used to collect and store data on an organization’s employees. In most cases, an HRIS encompasses the basic functionalities needed for end-to-end Human Resources Management (HRM). It is a system for recruitment, performance management, learning & development, and more. An HRIS is also known as HRIS software. This is a bit confusing as it implies that differentsystems can have different software running on them. However, this is not the case. The HRIS is, in essence, an HR software package. 235 | H R M The HRIS can either run on the company’s own technical infrastructure, or, more common nowadays, be cloud-based. This means that the HR software is running outside of the company’s premises, making it much easier to update. Other commonly used names are HRIS system and HRMS, or Human Resources Management system. These are all different words for the same thing. Collectively, these systems are also called Human Capital Management systems, or HCM. In this article, we will use the terms HRIS and HRIS systems interchangeably According to Parry (2010), HRIS can serve as a vital strategic tool as it shares crucial data with the management related with recruitment and retention strategies which can be aligned with the overall corporate strategy for realizing the organizational objectives of growth. Additionally, by using HR applications, a company can calculate the overall costs incurred per employee and it’s effects on the business as a whole (DeSanctis, 1986) According to Hedrickson, HRIS can be briefly defined as integrated systems used to gather, store and analyze information regarding an organization’s human resources. According to Tannenbaum, HRIS, One which is used to acquire, store, manipulate, analyze,retrieve and distribute information about an organization’s human resources. Human Resource Management Systems (HRMS), Human Resource InformationSystems (HRIS), Human resource technology, also called HR modules, is an intersection between human resource management and information technology. It merges HRM as a discipline and in particular its basic HR activities and processes with the information technology field, whereas the planning and programming of data processing systems evolved into standardized routines and packages of Enterprise Resource Planning (ERP) software. In simple words, Human Resources Information System is a system that lets you keep track of all your employees and information about them. It is usually done in a database or, more often, in a series of inter-related databases. Benefits of HRIS Human Resource Information Systems (HRIS) offer a wide range of benefits to organizations in managing their human resources more effectively and efficiently. Some of the key benefits of HRIS include: 1. Streamlined HR Processes: HRIS can automate many HR tasks, such as employee data management, benefits administration, and time tracking. This streamlines HR processes and reduces administrative work, allowing HR professionals to focus on strategic tasks. 2. Efficient Data Management: HRIS centralizes employee data, making it easier to access and manage. This reduces the risk of data errors and ensures data consistency across the organization. 3. Time and Cost Savings: By automating various HR processes, HRIS reduces the time and resources needed for administrative tasks. This can lead to significant cost savings for organizations. 4. Improved Data Accuracy: Automation reduces the likelihood of data entry errors, ensuring that employee information is accurate and up-to-date. 5. Enhanced Reporting and Analytics: HRIS systems can generate detailed reports and analytics on various HR metrics, helping organizations make informed decisions about their workforce. 236 | H R M 6. Compliance Management: HRIS can help organizations stay compliant with labor laws and regulations by tracking and managing compliance-related data, such as labor hours, overtime, and leave. 7. Employee Self-Service: Many HRIS systems offer self-service portals that allow employees to access their own information, request time off, update personalinformation, and view pay stubs. This empowers employees and reduces HR's administrative burden. 8. Recruitment and Onboarding: HRIS can assist with recruitment by managing job postings, applicant tracking, and onboarding processes, streamlining the hiring process. 9. Talent Management: HRIS can help organizations identify and develop talent within the company, including tracking employee performance, training, and careerdevelopment. 10. Succession Planning: HRIS can aid in identifying potential successors for key positions and create development plans to prepare employees for future roles. 11. Better Decision-Making: With access to comprehensive data and analytics, HR professionals can make more informed decisions about workforce planning, employee development, and overall HR strategy. 12. Security and Data Privacy: HRIS systems can enhance data security and ensure compliance with data privacy regulations by implementing access controls and encryption measures. 13. Integration with other Systems: HRIS can often integrate with other business systems, such as payroll, accounting, and timekeeping, to streamline data sharing and reduce duplicate data entry. 14. Scalability: HRIS can grow with your organization, adapting to the changing needs of your workforce and business. 15. Employee Engagement: Some HRIS systems offer features to measure and improve employee engagement, helping organizations create a more positive workplace culture. 16. Reduction in Paperwork: HRIS systems can reduce the need for physical paperwork, contributing to a more environmentally friendly and efficient HR department. Overall, HRIS can greatly benefit organizations by improving HR efficiency, reducing administrative burdens, and enabling data-driven decision-making, ultimately contributing to a more effective and productive workforce. Key HRIS Functions A human resources information system, or HRIS, is software used by HRprofessionals to manage employee data. It provides streamlined information in one centralized location and removes the need for multiple spreadsheets, databases, and paperwork overload. HRIS software manages all HR needs and includes multiple user tools. Let’s take a look at 7 functions an HRIS system manages and how it can benefit your business: 1. CORE HR Core HR refers to the basic functions carried out by the HR department related to employee information, like: • • • • • Demographics History Job-role details Tax-withholdings Time management 237 | H R M HR professionals save time when all employee information is stored in one streamlined location. HR professionals save time when all employee information is stored in one streamlined location, and even more time with the enablement of employee self-service (employees can update their own info, book holiday etc). An HRIS analyst (more on this later) can run various reports to give insights to project management, business trends, and future needs by analyzing CORE HR data like employee training history, job-role requirements, and planned leave. 2. Payroll HRIS management software automates your employee’s payschedules and stores time and attendance data. This automation allows staff to enter their own leave information that’s later approved by a supervisor – saving you valuable time to focus on other needs in your business. This tool enables you to group together who’s being paid on what schedule and allows for easy search capability. Notice the “Things I Can Do” section on the right – this quick-access menu serves as a reminder of things to be done and saves time with easy-to-use system links. 3. Employee Benefits HRIS software provides self-service options for employees to review their benefits information and streamlines open enrollment periods. Employees have the ability to make approved changes to their benefit information when life changes occur. This function also allows employees to look up benefit information when they have questions about things like: • Medical coverage • Life Insurance • Disability benefits • Dependent benefit information HRIS self-sufficiency among employees saves your HR team crucial time. Now instead of being responsible for fielding inquiries and researching information for individual employees, HR professionals can focus their time on more strategic tasks. 4. Training HRIS training modules help your HR department track your employees’ qualifications, certifications, and skills. HRIS training functions also allow for quick distribution of updated policies and procedures. Plus, it can be integrated with an LMS (Learning Management System) to streamline available training and transcripts into one easily accessible location. This integrated LMS system allows employees to review what training is available, keep track of their progress, and search available course options. 5. Performance Management Performance management needs like goal-setting, developmental and training needs, selfassessments, and anonymous surveys are all options available through an HRIS. These features allow employees to complete training and surveys remotely. This encourages increased participation since staff are able to respond from the comfort of their own homes. 238 | H R M While it’s important to have engaged evaluation meetings with your staff, some areas of performance evaluations can be completed by an employee on their own – an effective way to encourage honest reflection and increased participation. Plus, this saves you time and streamlines the process. For a more comprehensive approach to human resource management, explore our curated list of HR software platforms that can seamlessly integrate with your HRIS 6. Time Tracking and Leave HRIS software allows for easy and accurate time tracking and tracking the amount of leave taken. It also saves time for both employees and supervisors – with the click of a button, hours are captured. This function allows for additional self-sufficiency. Staff enter their own leave requests and time is saved by reducing the need for emailing back and forth, making phone calls, and fielding in-person request. 7. Onboarding It’s no secret that onboarding is crucial for the success of both a new employee and the organization itself. HRIS implementation is a game-changer when it comes to onboarding because it allows you to:   Reach large candidate pools when job openings occur Apply selection standards to applications received  Track candidate information and resumes  Allows HR analysts to match a job opening with suitable candidates from an application pool  Process new hires quickly through mobile accessibility, This makes HRIS software especially beneficial for companies with high turnover rates because you can improve your hiring practices and expectations of employee standards without having to invest a lot of time and resources. Features of Human Resource Information Systems Human Resource Information Systems (HRIS) come with a wide range of features to help organizations manage their HR functions effectively. Here are some common features of HRIS: 1. Employee Information Management: HRIS stores and manages employee data, including personal details, contact information, employment history, and qualifications. 2. Payroll and Compensation Management: It facilitates payroll processing, tax calculations, and the management of salary structures, bonuses, and benefits. 3. Time and Attendance Tracking: HRIS can record and track employee work hours, attendance, and leave requests, helping in scheduling and overtime management. 4. Recruitment and Applicant Tracking: It assists in creating job postings, managing applications, and tracking the hiring process, including interview scheduling and candidate evaluation. 239 | H R M 5. Onboarding and Offboarding: HRIS streamlines the onboarding process by automating paperwork, training, and introductions. It also manages the exit process when employees leave the organization. 6. Performance Management: HRIS helps set performance goals, conduct performance reviews, and track employee progress. It may include features for 360-degree feedback and goal alignment. 7. Training and Development: It tracks employee training needs, schedules training sessions, and manages training materials and certifications. 8. Benefits Administration: HRIS manages employee benefits such as health insurance, retirement plans, and other perks, including enrollment, changes, and compliance. 9. Employee Self-Service: It allows employees to access and update their own information, request time off, view payslips, and communicate with HR electronically. 10. Manager Self-Service: Managers can use HRIS to initiate HR processes, approve requests, and access relevant data for decision-making. 11. Analytics and Reporting: HRIS provides tools for generating reports and analytics related to workforce metrics, helping organizations make data-driven decisions. 12. Compliance and Regulatory Support: It assists in compliance with labor laws and regulations by tracking and reporting on legal requirements and documentation. 13. Succession Planning: HRIS can help identify high-potential employees and plan for future leadership needs within the organization. 14. Employee Surveys and Feedback: Some HRIS include features for conducting employee surveys and gathering feedback to gauge employee satisfaction and engagement. 15. Security and Access Control: HRIS ensures that sensitive HR data is secure, with rolebased access controls to limit who can view and edit specific information. 16. Mobile Accessibility: Many modern HRIS offer mobile apps or responsive web interfaces to enable access and management from mobile devices. 17. Integration with Other Systems: HRIS can integrate with other business systems such as accounting, ERP, and time management software for a seamless flow of data. 18. AI and Automation: Some advanced HRIS incorporate artificial intelligence to automate tasks like resume screening, chatbots for employee inquiries, and predictive analytics. The specific features of an HRIS can vary based on the software vendor and the organization's requirements. Selecting an HRIS that aligns with an organization's needs and goals is crucial for efficient HR management. Components of HRIS(Human Resource Information Systems) 1. Database Human Resource Information System core offering includes a database to store employee information. HR professionals can input all personnel data into the system which can be accessed from anywhere, round the clock. Types of data that HR professionals collect in the database include compensation history, emergency contact information, and performance review. The core database can also be viewed as an online backup for paper files. 2. Time and Labour Management 240 | H R M Activities like time and labor management can be highly time-consuming. HRIS package allows employees to input their own hours worked and allows managers to immediately verify vacation requests, and the data is directly fed to the payroll. Time and labor management also improves the HR department’s ability to track punctuality and attendance. 3. Payroll Function The payroll function is yet another major component of an HRIS model. HR can easily download or unload employee hours, and issue cheques or payroll deposits to employees. Salaried employees can also be paid with a substantially reduced risk of errors. The HRIS payroll software usually improves tax compliance for locations with multiple tax levels. 4. Benefits Some HRIS employers allow employers to establish and maintain medical benefits and retirement investments through their software. Such applications allow employers to have a one-stop shopping experience for all their human resources data management needs. Other HRIS packages facilitate medical benefits and retirement investment deductions for payroll but not the establishment of those benefits. 5. Employee Interface Most HRIS packages allow for an employee to have limited user access. Employee users access a part of the database where they can update their personal information, review pay scales, change retirement benefit programs, update direct deposit information or download benefit election documents. 6. Recruitment and Retention Finally, it can be said that recruitment and retention are the most important components of HRIS. It goes without saying that it is the anchor of all HR policies and systems. Finding new talent, acquiring them, keeping them engaged and finally being able to retain them is the major task of an HR person. HRs also have to ensure that employees are not only able to do their work, but they are also provided with the required training; receive proper compensation and benefits from the organization. Types of HRIS I. Operational HRIS Operational HRIS is of immense help to the manager. It provides the manager with all the required data to support routine and repetitive human resource decisions 1. Worker Information Systems 2. Position Control Systems 3. Performance Management Systems II. Tactical HRIS The tactical human resource information system helps largely the managers with choices that underline the allocation of resources. 1. Recruitment Information Systems 241 | H R M 2. Pay and Benefits Information Systems 3. Employee Training and Development frameworks III. Strategic HRIS Strategic HRIS centers around managing labor negotiations, workforce arranging, and certain particular HR programming. 1.Workforce Planning System 2. Specific Human Resource Information System Software IV. Complete HRIS The automation of HRIS has brought in an incorporated database that collaborates together with the human asset records, employee documents, employee positions, stock records, organizational policies, employee monitoring, and numerous other human asset records. They are developed in a planned way that applications can easily project can valid reports from any of the human resource management segment. Why do HRIS fail? The successful automation of business processes can improve operational efficiency and reduce risk, allowing employers to focus on managing their business. With proper implementation and support, such a system can make life easier for everyone. Many employers do not understand the complexity of the implementation process or the commitment that it requires. This is a pivotal moment that often determines the success of the system. While some employers may be equipped to execute a proper implementation, many are not. Here are the main causes of failed system implementation 1. Lack of Time and Resources When done correctly, this process can take at least two months, if not more, and will require the attention of those managers or HR professionals within the company who have been tasked with facilitating the implementation process. This will take time away from their typical job duties causing a strain on the business and employee stress. Employers that are unprepared to put in the time or supply these additional resources, will be unable to achieve their desired results. 2. Lack of Communication There is much to be said for clear vendor/client communication. Not all systems are the same, therefore not all implementations will be the same. The technology vendor should be able to provide key information that can help employers prepare for a successful implementation. This is especially helpful when the employer’s needs have been clearly communicated and interpreted. 3. Poor Project Management Implementing a new system is an involved project with quite a few moving parts. Even employers who feel prepared ahead of the implementation process can fall victim to poor project management. It is important for the employer to set realistic expectations and deadlines to be met, especially regarding business processes that are time-sensitive, like payroll. 242 | H R M 4. Closed Mindedness The purchase of a new HRIS implies a willingness to accept the change that comes along with it, but this is not always the case. Many employers will make their purchase wanting to benefit from having the technology, but abandon it upon realizing what it will take to properly implement and optimize the system. Human Resource Information Systems Models Human Resource Information Systems (HRIS) can take various forms, and there are several models or types of HRIS that organizations may adopt. Here are some common models: 1. Transactional HRIS: This model focuses on automating and streamlining HR processes, such as payroll, benefits administration, and time tracking. It's primarily concerned with data storage, retrieval, and reporting. 2.Operational HRIS: Operational HRIS goes beyond transactions to support daily HR operations, including recruitment, onboarding, performance management, and training. It helps HR professionals manage these processes more efficiently. 3. Analytical HRIS: Analytical HRIS focuses on providing tools for data analysis and reporting. It helps organizations make data-driven decisions by offering insights into workforce trends, performance metrics, and other HR-related data. 4. Strategic HRIS: This model aligns HRIS with an organization's strategic goals. It's not just about managing HR processes but also about using data and technology to make strategic HR decisions, such as workforce planning, succession planning, and talent management. 5. Self-Service HRIS: Self-Service HRIS empowers employees to access and update their own HR information. This model reduces the administrative burden on HR professionals and allows employees to manage their personal information, benefits, and time off requests. 6. Cloud-Based HRIS: In this model, HRIS is hosted on cloud servers, providing scalability, accessibility, and cost-efficiency. It's becoming increasingly popular due to its flexibility and the ability to access HR information from anywhere. 7. Integrated HRIS: Integrated HRIS combines HR functions with other organizational systems like finance or supply chain management. This ensures a holistic view of an organization's operations and can lead to more efficient decision-making. 8. Mobile HRIS: With the increasing use of smartphones, mobile HRIS models enable employees and managers to access HR information and perform HR-related tasks through mobile apps, enhancing accessibility and convenience. 9. Social HRIS: This model incorporates social networking and collaboration tools into HRIS to facilitate communication, knowledge sharing, and engagement within the organization. 10. AI-Powered HRIS: Integrating artificial intelligence and machine learning into HRIS can help automate routine tasks, provide insights into talent management, and improve the recruitment process. The choice of HRIS model depends on an organization's size, needs, and strategic objectives. Many organizations use a combination of these models to meet their HR management requirements. Steps in HRIS Implementation We could write multiple articles when it comes to HRIS implementation. For this article, we will provide a high-level overview. Software implementation can be divided into multiple stages. 243 | H R M 1. Search Start your implementation by finding out what your different stakeholders need from an HRIS. Based on these requirements, you can create a list of potential providers. You can then invite these providers to make proposals. Ideally, at the end of this phase, you’ve chosen a suitable HRIS provider. 2. Plan and align In this phase, you choose an implementation partner, create a steering committee and an implementation team. The steering committee usually consists of senior delegates from your chosen HRIS provider, the HR director from your organization, the internal project manager, and preferably a senior user from your business (optional). The implementation team’s main responsibility is working on the day-to-day tasks that come out of the implementation. 3. Define and design At this point, you need to specify your user groups and map out your processes and workflows. Define the functional and technical requirements for your HRIS infrastructure, system, and security. Also, note that you might need to build integration between your HRIS with other existing systems during this phase. 4. Configure and test In this phase, you need to create a core test team to test your new HRIS and provide feedback for potential improvements. After this, you should also create a user acceptance test, where you can bring in a number of users to provide final feedback. 5. Train and communicate Before the Go-live moment, you will need to prepare a training program for your technical staff, a communication plan, a Frequently Asked Questions page, as well as other support documents. 6. Deploy and sustain Once all your support processes are in place, you can officially launch your HRIS. Remember to constantly collect feedback and to update your training material in line with the evolving systems. Constant, accurate communication is key here. By following these six steps, you can select and implement the best HRIS for your company. Again, if you want to go into more detail, check out the Digital HR Certification program. This program has courses on Design Thinking in HR and on building and implementing a Digital HR Strategy. These elements are essential when it comes to defining user requirements and implementing a software solution. Factors to Consider When Selecting an HRIS 1. HRIS Features Each HRIS is slightly different in terms of the features they offer but typical functions include: • Recruitment/applicant tracking 244 | H R M • • • • • • • • E-Verify Background checks Onboarding Benefits enrollment Performance reviews Position management Compensation management Employee self-service You’ll want to do a needs assessment before you invest in a system to understand your musthave features now, and what you’ll want as you grow. Depending on what you discover, you can start with a basic package and add on functions, or modules, as you need them or start off with a comprehensive system that includes everything you may want. Once you settle on an approach, you’ll want to find out if the vendor’s offerings are consistent with your needs and goals. 2. Technology requirements Many HRIS systems today are cloud-based, which reduces your overhead and new equipment purchases, so find out if the vendor you’re considering offers online solutions. Either way, you’ll want to make sure the HRIS you select integrates seamlessly with any other systems you have in place to avoid upgrades in your technology. So check to see whether the HRIS will connect with your other internal business systems as well as outside vendors, especially if you’re using different solutions for managing functions such as payroll and time and attendance. Or you may want to look for one platform that can handle all of these activities. You’ll also want to check the vendor’s security protocols since so much sensitive data will be stored in their database. Be sure to ask about their internal controls and their security audit information and procedures. 3. Cost Typically, HRIS providers will charge per employee per month (PEPM) cost. On average, you could expect costs ranging from $1 to $15 per employee per month for a system depending on the features you select. Generally speaking, you’ll be at the lower end of that range for more basic systems and see higher prices as you add on more functionality. Once you’ve settled on what features you need, check with the providers you’re considering to find out exactly what their system will cost you. It’s also important to ask if you’ll have to pay a onetime setup fee to cover the costs of configuring your solution as well as upfront training and support. 4. HRIS Implementation Since the goal of an HRIS is to free you up so you can focus more on revenue-generating activities, you’ll want to find out about the process and timing for implementation and any effects on your day-to-day operations while it’s underway. It’s also important to find a flexible provider who will implement the HRIS features in order of importance to you and not their priorities and one that has a hands-on project manager who can help you make sure you’re getting the most out of the automation an HRIS affords to eliminate more of your daily, manual tasks. While asking about their implementation support is important, it’s a good idea to see if you can get references of customers who have gone through the various stages of onboarding. 245 | H R M 5. Support Once the implementation phase ends, ongoing support for your HRIS should begin. Verify that the providers you consider offer a dedicated service model once their system’s live for any support needs. Having the same team of service professionals who know you and your system well can help ensure you fully utilize your HRIS to get the most out of it and identify any training or continuing education if there are gaps to adoption. Also, since the software industry is everchanging, find out how software updates and enhancements will be communicated to you so you can make sure you’re always optimizing your use of the HRIS. 6. Scalability To ensure your HRIS can support you as your business grows, you’ll want to confirm that the systems you’re looking at are designed to integrate not only with legacy platforms but also new technologies you may be interested in adopting down the road like direct carrier connections, accounting/ERP systems, job costing applications, eLearning programs, and more. That way, you won’t have to worry about switching platforms to get the features you need to reach your goals. Since the system you select may offer more functionality than you need now, you’ll want to make sure you take advantage of it as your business evolves. The key to doing this is driving adoption so you should find a user-friendly system that engages staff to leverage the tools and maximize their use of the system. Future of HRIS Technology As technology continues to evolve at a rapid pace, so does the landscape of Human Resource Information Systems (HRIS). HRIS, once known primarily for data management and payroll processing, has now become a critical strategic tool for HR professionals. I will explore the exciting future trends in HRIS that are reshaping the HR landscape and enabling organizations to create more efficient, engaging, and data-driven workplaces. 1. Artificial Intelligence (AI) and Machine Learning Integration: The integration of AI and machine learning into HRIS is revolutionizing HR practices. From candidate sourcing and screening to employee engagement and performance management, AIpowered HRIS can automate repetitive tasks, enhance decision-making processes, and predict workforce trends. The application of AI-driven chatbots for employee queries and HR assistance is also streamlining employee interactions and improving the overall employee experience. 2. Predictive Analytics for Workforce Planning: HRIS with advanced predictive analytics capabilities is enabling HR professionals to make data-driven decisions about their workforce. By analyzing historical data and real-time metrics, HRIS can help identify high-potential employees, forecast skill gaps, and predict attrition rates. Armed with this foresight, organizations can proactively address talent challenges and ensure a future-ready workforce. 3. Enhanced Employee Self-Service Features: The future of HRIS lies in empowering employees to take charge of their HR-related tasks. Modern HRIS platforms are equipping employees with user-friendly self-service portals, where they can access their personal information, request time off, manage benefits, and participate in performance evaluations. These self-service features not only increase employee satisfaction 4. Mobile HRIS Applications: The future of work is increasingly mobile, and HRIS is adapting to this shift. Mobile HRIS applications are becoming more prevalent, allowing employees and HR professionals to access critical HR data and functionalities on the 246 | H R M go. Whether it's checking payslips, approving leave requests, or conducting performance reviews, mobile HRIS apps offer flexibility and convenience in a fastpaced work environment. 5. Emphasis on Data Security and Privacy: As HRIS continues to handle vast amounts of sensitive employee data, data security and privacy become paramount. Future HRIS platforms are prioritizing robust security measures and compliance with data protection regulations. Encryption, multi-factor authentication, and data access controls are becoming standard features to safeguard confidential information. To conclude: The future of HRIS promises exciting advancements that will shape the future of HR practices. The integration of AI, predictive analytics, self-service features, mobile applications, and data security measures will undoubtedly redefine how organizations manage their workforce. Embracing these trends will empower HR professionals to be strategic partners in driving organizational success through data-driven insights and enhanced employee experiences. Challenges of HRIS With the many advantages of HRIS come some limitations as well, which include: • • • • • Cost to purchase and implement HRIS software. HR department and employee training. Adaptation time for all HRIS users. Hiring an IT specialist to manage the system. Hiring an HRIS analyst to maintain and update the system and more. 247 | H R M

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