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MB0043 Human Resource Management

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Q1. What are the objectives of human relations?


Ans: A human Relations Programme represents an attempt at improving employee morale and motivation through an improved three-way communications and through employee participation in the decision making processes. Human relations seek to emphasise 'employee' aspects of work rather than technical or economic aspects. It also seeks to make employment and working conditions less impersonal. On the positive side, the human relations approach emphasises policies and techniques designed to improve employee morale and job satisfaction. It is believed that this is accompanied by increased employee efficiency and reduction in employee unrest. An understanding of human behavior can: i. ii. iii. iv. v. vi. Assist the manager to develop a better realization of how his own attitudes and behavior play a part in everyday affairs Assist him to develop a keener sensitivity towards the other people Help him to develop an improved understanding of the problems of reconciling his own interests and capabilities with the needs and goals of the organization of which he is or will become, a part Enable him to anticipate and prevent problems, or at least to resolve more effectively those that he cannot avoid Assist him to see things as they are not as they should, or as he would , like them to be and Assist him to cast aside some of the excess mental luggage that increase his mental load but his effectiveness.

The Scope of Human Relations springs up from the problems which have many different causes and perspectives. Hallo ran has stated these as:

Every person brings a unique set of talents, ambitions and work experience to a job. These personal attributes change over time, often as a result of the degree of success of failure the person experiences in the work world. Matching so many unique sets of personal qualities to a standardized technology can create problems. The organizational aspects of a company, such as its size, geographic location, economic health, and degree of automation, define the scope of work and the activity in each work division. These frequently arbitrary, structural definitions often cause difficulties in human relations. Innovations in technology and production methods generally require the restructuring of job roles and responsibilities. Radical changes in basic organizational structure can cause severe strains between workers and management and create intense problems in human relations. Promotion of individuals to positions of greater responsibility and authority generally creates a need for changed behaviour patterns between the new supervisors and their former peers, which in time, can create human relations problems. Inexperienced workers may not be able to perform their roles or tasks in work groups in a competent manner. The time they take to adjust can not only create problems with production schedules, but can also create particular kinds of human relations problems between them and their coworkers and supervisors.

The variety of causes of human relations problems lead to the conclusion that no one programme or single approach can create conditions for good human relations. Therefore, different kinds of programmes would be necessary for dealing with these different sets of problems.

MB0043 Human Resource Management

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Q2. Explain the need for human resource planning? Ans. We will attempt to discuss in details the critical steps that are part of the above system. Human resource Planning translates the organization objectives and plans into the number of workers needed to meet these objectives. The need and importance of HRP is as follows: A. Purpose of Human Resource Planning: Human Resource Planning fulfils individual as well as organizational goals. What it essentially amounts to is striking a balance between the future human resources needs and the future enterprise needs. And this is done with the clear objective of maximizing the future return on. B. Estimating/Forecasting the future Manpower Requirements: the first step in the process is to arrive at the desired organizational structure at a given point in time. Mapping this structure with the existing structure helps in identifying the gap in resources requirement. The number and type of employees needed have to be determined. In addition to the structure there are a number of external factors that affect this determination. They include business forecasts, competitor strategy, expansion plans, product/skills mix changes, profit/revenue growth projections, in addition to management philosophy and government policies. This step also includes an analysis of the external labour/talent environment, its demographics, demand/supply of the required talent, and cost considerations. Forecasting provides the basic premises on which manpower planning is done. Forecasting is necessary for various reasons, such as: a. The challenges of the general economic business cycles have an influence on the short-range and long-run plans of all organizations. These are inflation, wages, prices, costs and raw material supplies. b. An expansion / growth initiative might need the business to use additional machinery and personnel, and a re-allocation of facilities, all of which call for adequate advance planning of human resources. c. Changes in management philosophies and top management leadership styles. d. The use of new technology (such as the introduction of automatic controls, or the mechanization of materials handling functions) requiring a change in the skills of workers, as well as a change in the number of employees needed. e. Very often, changes in the quantity or quality of products or services require a change inthe organization structure. Plans have to be made for this purpose as well.

C. Auditing Human Resources: Once the future human resource needs are estimated, the next step is to determine the present supply of manpower resources. This is done through what is called Skills Inventory. A skills inventory contains data about each employees skills, abilities, work preferences and other items of information which indicate his worth to the company. Skills inventory are also referred to as competency dictionaries. This information is usually retained as part of the performance management system with the HR department. This step in the HRP system helps identify the existing profile of the manpower and its efficiency. It helps highlight where the organization is vs. where it ought to be. The step concludes with identifying clear gaps in the skills/ manpower mix required to meet the upcoming business objectives. D. Job Analysis: After having decided how many persons would be needed, it is necessary to prepare a job analysis. The recorded details of training, skills, qualification, abilities, experience and responsibilities, etc. as needed for a job are studied. Job analysis includes the preparation of job descriptions and job specifications.

E. Developing a Human Resource Plan: This step refers t the development and implementation of the human resource plan, which consists in finding out the sources of labour supply with a view to making an effective use of these sources. Some important considerations at this point are: Specific roles/disciplines being hired for, of them which roles are pivotal for the business Competencies and capabilities needed Manager vs. employee hiring

MB0043 Human Resource Management

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Hire internally vs. External sourcing Planning for new skills through training existing staff vs. hiring new teams In case of surpluses, planning for redeployment/ reduction in workforce as required Succession planning for key positions in the company

Done

MB0043 Human Resource Management

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Q3. How can we evaluate the effectiveness of training programs conducted in organizations? Ans. The determination of training effectiveness should address three categories: (1) Training activities; (2) Evaluation activities; and (3) Training effectiveness indicators. The best way to determine that training has been effective is to fully understand the reason why the training has been developed. The reason to develop and implement training is a key factor in determining that a training course or programme will be effective in addressing performance deficiencies. If the reason for training was not clearly identified prior to training development, it could lead to training that is not appropriate to correct the performance deficiency. Establishing a valid need for training is the foundation upon which an organization can determine training effectiveness. If there is a valid need for training, and training addressed that need, when training has been effectively implemented indicators will validate that the training addressed the need for training and whether the desired results were achieved. Once a valid training need has been identified, programme content is then developed. During the development process ongoing evaluation activities that monitor training needs should be used to update training development. If a clear need for training has been identified, an organization should be able to determine that the training is effective. The need for training should be documented along with the reasons behind it. Without a clearly defined need, an organization may not be able to determine its training effectiveness. There are several ways to identify and document training needs. From best practices and input received by the International Atomic Energy Agency a method that has been effective is provided in the following sections. This research is conducted in order to measure the impact of training and development programs conducted in organizations. In order to conduct this research the system level audit was used. The need for this study arose because companies invest a lot into the training programs. The ROI obtained from training programs conducted must be sufficiently high in order to justify the amount spent on training the employees of an organization. The objective of this research is to use the system level audit in order to measure the effectiveness of training programs. This is done in order to identify the shortcomings of the existing training and development programs and to improve upon them The findings of the study can be summed up as the following. Training and development programs are gaining more significance in the industry. Care should be taken in order to ensure that proper need identification is conducted before any training program is designed. The company should make it a point to employ the best trainers in the industry to conduct the programs. In order to improve the effectiveness of training programs, employees must also contribute while designing the training programs. Proper motivation should be provided to employees to attend the training programs. The training programs must be designed in such away that it not only imparts technical knowledge and skill but also leadership skills and human competencies. The following recommendations were given in light of the research conducted. Proper training facilities must be in place in order to sustain creativity. Emphasis must be given to leadership and total quality. Experimental learning techniques must be used in the training programs. The communication channels must be very effective for any training to have an impact on the individual. Self learning by employees must be encouraged in the company. This will create a learning environment. Impact evaluations must be used in order to effectively improve the training programs. A chance must be given to the managers to perform different tasks in order to attain the various competencies.

MB0043 Human Resource Management

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Q4. Assume yourself as an HR Manager. You have been given the responsibility of promoting the rightful employees. For this, performance appraisal of the employees must be carried out. What appraisal method would you choose? Justify. Ans. A performance appraisal is a review and discussion of an employee's performance of assigned duties and responsibilities. The appraisal is based on results obtained by the employee in his/her job, not on the employee's personality characteristics. The appraisal measures skills and accomplishments with reasonable accuracy and uniformity. It provides a way to help identify areas for performance enhancement and to help promote professional growth. It should not, however, be considered the supervisor's only communication tool. Open lines of communication throughout the year help to make effective working relationships. Each employee is entitled to a thoughtful and careful appraisal. The success of the process depends on the supervisor's willingness to complete a constructive and objective appraisal and on the employee's willingness to respond to constructive suggestions and to work with the supervisor to reach future goals. Because all these observed trends are important and rather complex in nature, they are described in this chapter in some detail. We begin by providing an example of what these all mean to one of those effective and admired companies who also manages people rather well. Research shows that performance management, when done correctly, can affect corporate performance and the bottom line. Despite the importance of performance appraisal, few organizations clearly define what it is that they are trying to measure. To design a system for appraising performance, it is important to first define what is meant by the term work performance. Although a persons job performance depends on some combination of ability, effort and opportunity, it can be measured in terms of outcomes or results produced. Performance is defined as the record of outcomes produced on a specific job function or activity during a specific time period. For example a trainer working for the World Bank was evaluated on her organization of presentation, which was defined as the presentation of training material in a logical and methodical manner. They extent to which she was able to make such orderly presentation would be one measure of outcomes related to that function. A Sales representative could have some measure of sales as an outcome for a primary function of that job. Customer service would have very different outcome measures for defining performance. College professor that typically were evaluated on three general work function: teaching, research and service. Performance in each of these three areas is defined with different outcome measures. When it has been decided who will evaluate, when, and on what basis, the technique to be used will be selected. A number of approaches will be described here. There are several ways to classify these tools. The three categories used here will be individual evaluation methods multiple person evaluation methods And other methods. Three techniques that have been used to evaluate an employee in comparison with other employees being evaluated

Ranking: In ranking method, the evaluator is asked to rate employees from highest to lowest on some overall criterion. This is very difficult to do if the group of employees being compared number over 20. It is also easier to rank the best and worst employees than it is to evaluate the average ones. Simple ranking can be improved by alternative ranking. In this approach the evaluators pick the top and bottom employees first, then select the next highest and next lowest, and move towards the middle. Paired comparison: This approach makes the ranking method easier and more reliable. First, the names of the persons to be evaluated are placed on separate sheets (or cards) in a predetermined order, so that each person is compared to all others to be evaluated. The evaluator then checks the person he feels is the better of the two on a criterion for each comparison. Typically the criterion is overall ability to do the present job. The number of times a person is preferred is tallied, and this develops an index of the number of preferences compared to the number being evaluated. These scores can be converted into standard scores by comparing the scores to the standard deviation and the average of all scores. This method can be used by superiors, peers, subordinates, or some combination of these groups. Forced distribution: The forced distribution system is similar to 'grading on a curve. The evaluator is asked to rate employees in some fixed distribution of categories, such as 10 percent in low, 20 percent in low

MB0043 Human Resource Management

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average, 40 percent in average, 20 percent in high average, and 10 percent in high. One way to do this is to type each employee's name on a card and ask the evaluators to sort the cards into five piles corresponding to the ratings. This should be done twice for the two key criteria of job performance and promotability. One reason forced distribution was developed was to try to alleviate such problems as inflated ratings and central tendency in the graphic rating scale.

MB0043 Human Resource Management

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Q5. What are the objectives of job evaluation? Ans. The decision to measure or rate jobs should only be made with the intent to reach certain objectives which are important to both management and the worker. Although there are many bye-products of job evaluation, the purpose is to work towards a solution of the many wage and salary administrative problems which confront the industry. The below mentioned are some of the important objectives of a job evaluation programme: 1. 2. 3. 4. 5. Establishment of sound wage differentials between jobs. Discovery and elimination of wage inequities. Establishment of sound wage foundation for incentive and bonus. Maintenance of a consistent wage policy. Creation of a method of job classification, so that management and union officials may deal with major and fundamental wage issues during negotiations and grievance meetings. 6. Installation of an effective means of wage control. 7. Collection of job facts to air (a) Selection of employees, (b)Promotion and transfer of employees, (c) Training of new workers, (d) Assignment of tasks to jobs, (e)Accident prevention, (f) Improving working conditions, (g)Administrative organization, and (h)Work simplification.

A fourfold system of classifying evaluation systems is presented here. Two are described as non quantitative and two as quantitative. 1. Non-quantitative evaluation measures, a. The ranking system. b. The job classification system. 2. Quantitative evaluation measures. a. The point system. b. The factor comparison system.

MB0043 Human Resource Management

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Q6. Why is it important to handle grievances carefully? Ans. At one or other stage of the grievance procedure, the dispute must be handled by some member of management. In the solution of a problem, the greater burden rests on management. The clearest opportunity for settlement is found at the first stage, before the grievance has left the jurisdiction of the supervisor. For this reason, many firms have specifically trained their supervisors as to how to handle a grievance or complaint properly. The dispute or grievance constitutes a managerial problem and the scientific method is usually most productive in arriving at a satisfactory solution. The following directions help in handling a grievance: 1. Receive and define the nature of the dissatisfaction: The manner and attitude with which the supervisor receives the complaint of grievance is important. As a principle applicable to this step, the supervisor should assume that the employee is fair in presenting the complaint or grievance. Statements should not be prejudged on the basis of past experience with this or other employees. The supervisor should not be too busy to listen and should not give an impression of condescension in doing so. Thus supervisors who were nearly task oriented, as contrasted with people oriented, tended to experience a significantly greater number of grievances being filed in their units. 2. Get the facts: In gathering facts, one quickly becomes aware of the importance of keeping proper records such as performance ratings, job ratings, attending records, and suggestions. In addition, with the increasingly legalistic bent that is characteristic of modern labour management relations, the supervisor is wise to keep records on each particular grievance. It is also important that the supervisor possesses and exercise some skill in interview conference, and discussion. 3. Analyze and divide: With the problem defined and the facts in hand, the manager must now analyze and evaluate them, and them come to some decision. There is usually more than one possible solution. The manager must also be aware that the decision may constitute a precedent within the department as well as the company. 4. Apply the answer: Though the solution decided upon by the superior is adverse to the employee, some answer is better than none. Employees dislike supervisors who will take no stand, good or bad. In the event of an appeal beyond this stage of the procedure, the manager must have the decision and the reasons for his decisions should be properly recorded. 5. Follow up: The objective of the grievance procedure is to resolve a disagreement between an employee and the organization. Discussion and conference are important to this process. The purpose of its follow-up phase is to determine whether the clash of interest has been resolved. If follow up reveals that the case has been handled unsatisfactorily or that the wrong grievance has been processed, then redefinition of the problem, further fact-finding, analysis, solution and follow up are required. Among the common errors of management encountered in the processing of grievances are: 1. 2. 3. 4. 5. Stopping too soon in the search of facts Expressing a management opinion prior to the time when all pertinent facts have been discovered Failing to maintain proper records Resorting to executive fiat or orders instead of discussion and conference to change minds and Setting the wrong grievance mistake which may in turn produce a second new grievance. Follow up is the step in the procedure that tells us when a mistake in handling has been made.

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