HUMAN RESOURCES MANAGEMENT

Definition Concerned with people & their relationship with in an organization Process of procuring, developing and maintaining competent human resources in the organization so that the goals of an organization are achieved in an effective and efficient manner.

Characteristics Concerned with employee both as individual & group in attaining goal Concerned with development of knowledge, capability, skills & potential of human Covers all level of management Applies to the employee in all types of organizations Continuous & never ending process Aims at attaining the goal of organization

Objectives Create & utilize an able & motivated workforce to achieve goal Establishing & maintain sound organizational structure & desired working condition Secure integration & Co-ordination of individual & group Create facilities & opportunities for individual & group development Effective utilization of Human Resources Identify & satisfy the needs of employees Maintain high employee morale Provide efficient leadership

Pre-requisites for the attainment of objectives Recruitment of right men People work with us rather than people work for us Employee should be informed of the goals Maintenance of good human relations Formulation of sound organizational polices

Qualities of Human Resource Manager 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Intelligence Educational Skill Discriminating Skill Communication Skill Sympathy & Empathy Tact & Resourcefulness Broad Social Outlook Decision Making Skill Counseling Skill Controlling Skill Co-ordination Skill Training Skill Professional skill (all disciplines)

Human Resource Planning

Meaning It is a Process of move from its current man power position to the desired man power position to achieve the organizational goal. Definition According to Terry L. Leap & Michael D.Crino, "HRP includes estimation of how many qualified people are necessary to carry out the assigned activities, how many people will be available and what, if anything, must be done to ensure that personnel supply equals personnel demand at the appropriate point in the future" Objectives of HRP 1. 2. 3. 4. 5. 6. To To To To To To recruit & retain Human Resource of required foresee ETO ensure adequate supply of manpower as & when required foresee future requirements of HR with different level of skills assess the surplus & shortage of HR anticipate the impact of technology on job & requirements for HR

Need & Importance of HRP 1. 2. 3. 4. Checks the corporate plan Offsets uncertainty & change Provide scope for advancement & development Satisfy the needs of employees

Levels of HRP 1. At the National Level - HRP by Government at the national level 2. At the Sector Level - HR requirement of agricultural sector, industrial sector, service sector 3. At the Industry Level - HR requirement for specific industry Such as engineering industry, textile industry Steps in HRP 1. 2. 3. 4. 5. 6. 7. 8. Analyzing organizational Plan Demand forecasting of HR required Supply forecasting of HR required Estimating the net HR required Future surplus plan for redevelopment Future deficit plan for supply Plan for recruitment Plan to modify or adjust organizational plan

Limitations of HRP 1. Resistance by employee & employer 2. Uncertainty 3. Inadequate information system

Recruitment
Meaning Process of discovers the sources of manpower to meet the requirements of the staffing. Definition According to Flippo, Recruitment is the process of searching prospective employees and stimulating and encourages them to apply for jobs in the organization. Factors affecting Recruitment 1. Internal Factor Size of the organization Recruitment policy Local candidates

 Image of organization Influence of trade union Influences and recommendations 2. External Factors Demographic factors Government Regulations Unemployment situation Sources of Recruitment 1. Internal Sources of Recruitment 1.1. 1.2. 1.3. 1.4. Present Employee Employee Referrals Former Employees Previous Applications

Why does Organization Prefer Internal Source? a) b) c) d) e) f) g) h) Used as a techniques of motivation Morale of employee can be improved Suitability of internal candidates can be judged better Loyalty, commitment, sense of belongingness Employee economic needs can be satisfied Cost of selection can be minimized Cost of training can be minimized Trade Union can be satisfied

2. External Sources of Recruitment 2.1. 2.2. 2.3. 2.4. 2.5. 2.6. Employment Exchange Advertisement Employment Agencies Campus Recruitment Deputation Raiding

Why does Organization Prefer External Source? a) b) c) d) e) Suitable candidates with skill, knowledge and talent Selection with out reservation Cost of employee may be minimized HR mix can be balanced Latest knowledge can be brought into organization

Selection
Meaning It is a Process of picking individuals (out of pool of job applicants) with requisite qualification & competence to fill jobs in the organization. Definition According to Kootz, "Selection is the process of choosing from among the candidates from within the organization or from the outside, the most suitable person for the current position or for the future position" Selection Tests

Ability Tests Aptitude Test Achievement Test Intelligence Test Judgment Test Guidelines for Effective Interviewing

Personality Tests Interest Test Projection Test Attitude Test

1. The Interview should have a definite time schedule known to both the interviewers and the interviewee 2. Interview should be conducted by the competent, trained and experienced interviewers 3. The interviewers should be supplied with specific set of guidelines for conducting interview 4. A resume for all the candidates to be interviewed should be prepared and the same be made available to the interviewers before the interview starts 5. The interviewers should show their sensitivity to the interviewee's sentiments and also sympathetic attitude to him / her

Job Analysis
Meaning

Job Analysis refers to the process of collecting information about the job. Definition According to Edwin B. Flippo, Job Analysis is the process of studying and collecting information relating to the operations and responsibilities of a specific job. Two Major aspects of Job Analysis 1. Job Description 2. Job Specification Job Description It is prepared on the basis of data collected through job analysis. Job Description is a functional description of the content what the job entails. Job Specification While job description focuses on the job, job specification focuses on the person. Job Content Job Description Job Specification A Statement containing items such as A Statement of human qualification necessary to do the job. Usually contains such items as Job Title Location Job Summary Duties Machines, Tools & Equipment's Materials and forms used Supervision given or received Working conditions Hazards Education Experience Training Judgement Initiative Physical Efforts Physical Skill Responsibilities Communication Skills Emotional Characteristics Unusual sensory demands such as sight, smell, hearing

Uses of Job Analysis 1. Human Resource Planning 2. Recruitment & Selection

3. 4. 5. 6. 7. 8.

Training & Development Placement & Orientation Job Evaluation Performance Appraisal Personnel Information Health & Safety

Process of Job Analysis 1. Organizational Job Analysis It is required to know the make up of a job, its relation to other jobs, and its contribution to performance of the organization. 2. Selecting Representative Jobs for Analysis Analyzing all jobs of an organization is both costly and time consuming. Therefore, only a representative sample of jobs is selected for the purpose of detailed analysis. 3. Collection of Data for Job Analysis Methods of Data Collection Observation Interview Questionnaire Checklists Critical Incidents Dairies or Log Records Conference 4. Preparing Job Description Job Description is a written statement that describes the tasks, duties and responsibilities that need to be discharged for effective job performance 5. Preparing Job specification Job Specification is a statement of the minimum levels of qualification, skills, physical and other abilities, experience, judgement and attributes required for performing job effectively Job Design Job Design is a logical sequence to job analysis According to Michael Armstrong, Job Design is the process of deciding on the contents of a job in terms of its duties, responsibilities.

The methods to be used in carrying out the job, in terms of techniques, systems and procedures, and on the relationship that should exist between the job holder and his / her superiors, subordinates and colleagues.

Methods / Techniques of Job Design Job Rotation (i.e. Relief from Boredom) Job Enrichment Increased responsibility wider range of duties added

Job Design

Job Enlargement Extension of work plus additional tasks to obtain a complete unit Work Simplification

Work Simplification Breaking down into small sub - parts

Job is simplified by breaking it down into small sub - parts. Then, each part of the job is assigned to a worker who does the same task over and over again. This enables the worker to gain proficiency. This increases the worker's productivity and in turn profit will increase. However, due to the repetitive job, workers feel boredom. This will tend to absent frequently.

Job Rotation One solution to boredom is job rotation It implies the moving of employees from job to job. Employee becomes competent in several jobs.

Frequent shifting of employees across the jobs causes interruption in the job routine. The employees who look for more challenging assignments may still feel frustrated.

Job Enlargement It involves adding more tasks to a job. This is a horizontal expansion in a job. It expands job scope and gives variety of tasks to the jobholders. It reduces boredom and monotony. It helps increase interest in work and efficiency.

Job Enrichment It involves adding motivating factors to job. It is a vertical expansion of a job by adding more responsibility and freedom to do it. It can improve the quality of work output, employees motivation and satisfaction.

Job Evaluation
Meaning Job Evaluation is the rating of jobs in an organization. Definition According to Kimball, Job Evaluation is 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. Objectives of Job Evaluation 1. Provide a standard procedures for determining the relative worth of each job in a plant 2. Determine equitable wage differentials between jobs in the organization. 3. Eliminates wage inequalities. 4. Ensure that like wages are paid to all qualified employees for like work. 5. Form a basis for fixing incentives and different bonus plans. Procedure of Job Evaluation Choose Scheme Plan the Programme

Analysis Job

Internal Evaluation

External Evaluation

Design Structure Grade Jobs Develop Maintenance Procedure

1. Choose Scheme

Setting stage for job evaluation programme Required information is obtained from the organization

2. Plan the Programme Job holders should to informed Sample of jobs to be evaluated is selected

3. Analyze jobs Information about sample job is collected Serves as the basis for evaluation

4. Internal Evaluation Evaluation is done based on the data collected

5. External Evaluation Evaluation is done based on the market rate at that time

6. Design Structure Salary structure is designed at this stage

7. Grade jobs Different jobs are slotted into salary structure as designed

8. Develop Maintenance Procedure Develop procedure for maintain the salary structure

Methods of Job Evaluation 1. Non-quantitative Methods (a) Ranking or Job comparison (b)Grading or Job classification 2. Quantitative Methods (a) Point Rating (b)Factor Comparison Ranking or Job comparison Whole job comparisons are made to place them in order of importance It is the simplest form of job evaluation Each job is compared with other Goes on until all the jobs have been evaluated and ranked Comparison is based in terms of duties, responsibilities and demands of the jobholder.

Grading or Job classification Jobs are slotted into grades by comparing the whole job description with the grade definition Classify the job on similar skills, responsibility Collect information from job analysis Job grade may include, depending on the type of jobs offered , skilled, unskilled, clerk, steno, and so on

Point Rating Separate factors are scored to produce an overall points score for the job This is the most widely used method Jobs are broken down base on various identifiable factors such as skills, effort, training, responsibility Points are allocated to each factor

Summed the total point gained by the worker

Factor Comparison Job grade by reference to market rate data and direct comparison with jobs at or near the same level within the organization It is a combination of both ranking and point ranking method Key jobs are selected as standard The factors common to all jobs are identified The common factor is compared with the job holder

Advantages of Job Evaluation 1. It is a logical process and salary structure is based on the relative worth of jobs in an organization 2. By eliminating wage differentials, it helps in minimizing conflict between labour and management 3. It simplifies wage administration by establishing uniformity in wage rates 4. It provides a logical basis for wage negotiations and collective bargaining 5. The information gathered from job evaluation is used for improvement in selection, transfer and promotion procedure 6. Job evaluation rates the job not the worker Disadvantages of Job Evaluation 1. Human Error is admitted in the process 2. Possibility of wage variations through job evaluation and market condition 3. When it is applied for the first time, it creates doubts in the minds of workers 4. It is a time consuming process 5. It is not suitable for managerial job 6. It will lead to changes in wage and salary structure. This will in turn lead to financial burden to the organization Essentials for Job Evaluation Programme 1. An accurate Job Analysis, Job Description and Job Specification should be done 2. The management aim in job evaluation should be clearly convey to the employees 3. All the internal and external factors should be considered

4. The supervisor should have complete knowledge of the programme 5. The detail of the programme should be simple to avoid the employee confusion and fear about the programme 6. Efforts should be taken for maximum transparency of the system 7. The programme should get full support from top management and acceptance from the trade union 8. Job evaluation should rate on job, not on job holder

Training & Development

Give a man a fish, and you have given him meal. Teach man to fish, and you have given him livelihood. -Chinese Proverb If you wish to plan for a year sow seeds, If you wish to plan for ten years plant trees, If you plan for life time develop men. - Chinese Proverb Introduction Organization and individual should develop and progress simultaneously for their survival and attainment of mutual goals. So every modern management has to develop the organization through human resource development Employee training is the most important sub-system of human resource development

Meaning Training is the act of increasing the knowledge and skill of an employee for doing a particular job Definition According to Dale S. Beach, The training is the organized procedure by which people learn knowledge and/or skill for a definite purpose Difference between Training & Development Area Content Purpose Training Technical Skills and knowledge Specific job-related Development Managerial and behavioural skills and knowledge Conceptual and general knowledge

Duration For Whom

Short term Mostly technical and non managerial personnel Long term Mostly for managerial personnel

Need for Training 1. To match the employee specification with the job requirement and organizational needs 2. Technological advancement 3. Organizational complexity ( manufacturing of multiple product and by products, extension of operation, diversified service lines) 4. Human Relation 5. Change in job assignment 6. To increase productivity 7. To improve quality of product and service

Training Purpose 1. To prepare the employee to meet the change 2. To impart the new entrance the basic knowledge and skill they required 3. To prepare employee for higher tasks 4. To assist employee to function more effectively 5. To built up a second line competent officer 6. To broaden the minds of senior managers 7. To develop the potentialities of people for the next level job 8. To ensure smooth and efficient working of a department 9. To ensure economical output of required quality 10. To promote a sense of responsibility Benefits of Training 1. Increase Productivity 2. Reduce Supervision 3. Reduce accidents 4. Increase organizational stability 5. Improves the job knowledge 6. Provides information for future needs in all areas of the organization 7. To develop the qualities of the individuals 8. Increase the job satisfaction 9. Satisfy the needs of the employee 10. Makes the organization a better place to work and live Training Need Assessment (TNA)

Training needs are identified on the basis of organizational analysis, job analysis and manpower analysis. Training needs = Job and organizational requirement - Employee specification TNA Methods 1. Organizational requirement / weakness 2. Departmental requirement / weakness 3. Job specification and employee specification 4. Identifying the specific problems 5. Anticipating the future problems 6. Management's requests 7. Observation 8. Interviews 9. Group conference 10. Questionnaire surveys 11. Test or examinations 12. Check lists 13. Performance appraisal Types of Training Methods Training Methods On-the-job Methods Job Rotation Coaching Job Instruction Committee Assignments Off-the-job Methods Lecture Methods Role Play Vestibule Training Conference or Discussion Programme Instruction

Job Rotation Movement of trainee from one job to another The trainee receives job knowledge and gains experience in each of the different job assigned Coaching The trainee is placed under a particular supervisor The supervisor teaches the trainee on various aspects

Job Instruction Training through step-by-step The trainer explains the trainee the way of doing the jobs Committee Assignment A group of trainees are given and asked to solve an organizational problem. The trainee solve the problem jointly Lecture Method Traditional and direct method of instruction To be effective, the lecture must motivate and create interest among the trainee

Role Play This method of training involves action, doing and practice The trainee has to play the role of certain characters such as the production manager, mechanical engineer and so on Vestibule Training Actual working conditions are simulated in a class room Materials, files and equipment which are used in actual job performance are also used in training

Conference or Discussion This method involves a group of trainees who pose ideas, examine and share facts, ideas and data. Here the trainee feel free to share their knowledge Programmed Instruction The subject matter to be learned is presented in a series of carefully planned sequential units These units are arranged from simple to more complex levels of instruction The trainee goes through these units by answering questions

Training Procedure

1. Identify the training need 2. Prepare the cost budget 3. Design the training content, teaching methods and medium 4. Prepare the trainer 5. Prepare the trainee 6. Get ready to teach 7. Implement the training programme 8. Present the operation 9. Try out the trainee's performance 10. Evaluate the result 11. Update the programme

Management / Executive Development Programme

Management Development is a systematic process of growth and development by which the manger develop their abilities to manage. Objectives of MDP 1. To improve the performance of manager 2. To identify the person with the required potential and prepare them for senior position 3. To adopt with change 4. To broaden the outlook of the mangers regarding his role position and responsibilities 5. To understand the conceptual issues 6. To understand the problems of human relations and improve the inter personal relation skills 7. To stimulate creative thinking Methods of MDP MDP Methods On-the-job Methods Job Rotation Coaching Under Study Multiple Management Off-the-job Methods Lecture Methods Case Method Incident Method Role Play In Basket Method Business Game Sensitivity Training Simulation Grid Training Conference

Multiple Management

Acquire knowledge of various aspects of business Identifies the member who have the skills and capabilities of an effective manager

Case Study Cases are prepared on the basis of actual business situations that happened in various organization Discuss and identify the problem and solve the problem with alternatives Incident Method To train in the areas of intellectual ability, particular judgement and social awareness Asked to study an incident and make short-term decision In Basket Method Provides information about the product, various memoranda, request and all data pertaining to the firm The trainee has to understand all this, make notes and delegate the tasks Business Games Divided into various teams as competitors Give situation or problem and asked to solve under certain circumstance Sensitivity Training This helps one know about himself and the impact of his behaviour on others, which is important to manage people Develop awareness of and sensitivity of behavioural pattern of oneself and others To increase openness with others, greater concern for others, increased tolerance, understand group process, enhanced listening skills, increased trust and support Simulation Problem solving through decision making The situation is duplicated in such a way that it carries a closer resemblance to the actual job situation The trainee experiences a feeling that he is actually encountering all those conditions

Managerial Grid It is long term programme It starts with upgrading managerial skills, continues to group improvement, improve inter-group relations, goes into corporate planning, develops implementation methods at the end It represents several possible leadership styles

Evaluation of Training Programme

Assessment of trainee's experience in training Feedback on the effects of training programme and to adjudge the value or worth of the training What exactly to evaluate? Performance Before Training, Immediately after the training and after a significant period of training

Objectives of Evaluation of Training to check effectiveness of training to improve performance of employees on the job to ascertain how far the training is useful to improve career prospect to identify the deficiencies of training to know the return on investment ROI of training programme Steps in Evaluation of Training Step 1 Step 2 Step 3 Step 4 : : : : Did the participants feel the program was effective? - Survey Did the participants learn anything? - Test Did skill level improve? Did productivity improve?

Structure of performance evaluation of Training in Work Place The five points are indicated in the diagram by the numbered 1 through 5

1. Before Training 2. During Training 3. After Training or Before Entry 4. In the Work place 5. Upon exiting the work place 1 1 1 1 1 2 3 4 5

Training

Work place
Result

Reaction

Learning

Behaviour

Career Planning
Career can be defined as all the jobs hold by a person during his working life. Career Planning can be defined as a systematic process by which one decide his / her career goals and the path to reach these goals. Need for Career Planning 1. 2. 3. 4. Attract competent person & retain in them in the organization Provide suitable promotional opportunity Ensure better utilization of managerial human resources Reduce employee dissatisfaction and turn over

Stages in Career Development

Performance

1 Age 25

2 35

3 50

4 60

5 70

1. Exploration 4. Late Career

2. Establishment 3. Middle Career 5. Decline

Career Management
A Career Management includes both individual career planning & organizational initiative to have a balance between career goals and organizational needs.

Career Management Model Individual Career Planning Assess needs Analyze career opportunity Set career goals Develop action plan Organizational Career Planning Assess HR required Career path for each HR Integrate career goal & organizational need Initiate career development effort

Career Development How individual can reach the top? How organizations can help selfassessment? Individual counseling Assessment Program Development Program Program for special group

Wage & Salary Administration

Remuneration is the compensation an employee receives in return for his / her contribution to the organization. Objectives of Wage & Salary Administration 1. Enable an organization to have the quality and quantity of staff it required 2. Retain the employee in the organization 3. Motivate employee for good performance for further improvement in performance 4. Maintain equity and fairness in compensation for similar jobs 5. Make the system cost effective Components of employee remuneration 1. Financial Hourly, Daily, Monthly rate Incentives Fringe Benefits(PF, Gratuity, Medical, Insurance, Accident) 2. Non Financial Job Context Recognition Work Sharing

Challenging job responsibility Supervision

Factors influencing Wage & Salary Administration 1. 2. 3. 4. Cost of living 5 Productivity Prevailing wage rate 6 Ability to pay Attraction & retention of employee 7 Labour Union Government legislation 8 Job Evaluation

Methods of Wage Payment 1. Payment by Time 2. Payment by Result Straight Piece Rate System Differential Piece Rate System

Performance Appraisal
Performance Appraisal is the systematic description of an employee's job relevant strength and weakness. Performance Appraisal is the systematic evaluation of present & potential capabilities of employee by their superior or professional from outside.

Need for Performance Appraisal 1. It provides information about the performance 2. It provides information about the level of achievement 3. It provides information which helps to counsel the employee 4. To prevent grievance and in-discipline Objectives of Performance Appraisal 1. To create & maintain a satisfactory level of performance 2. To contribute to the employee growth & development 3. To help the superiors to have proper understanding about their subordinates 4. To guide job change

Performance Appraisal Process Objectives of Performance Appraisal

Establish job expectation

Design an Appraisal Programme

Appraise Performance

Performance Interview

Use appropriate data for appropriate purpose

Methods of Performance Appraisal Traditional Methods 1. Straight Ranking Method Employees are ranked characteristics from best to worst on some

2. Paired Comparison Method Comparing one employee with all other employee 3. Grading Method Appraise on selected features and give grade 4. Linear Rating Method Graphic rating 5. Forced Distribution Method Prevent the rater from raking too high & too low 6. Force Choice Method Consist of descriptive statement 7. Free Essay Method Manager will write short essay about employee performance 8. Critical Incident Method Manager continuously recorded the incident of employee 9. Group Appraisal Method Consist of immediate superior & other superior 10. Field Review Method Manager collect opinions about the progress of subordinates

Modern Methods 1. Appraisal by Management by Objective 2. Assessment Center Method Central location where mangers may come together to have their participation in job related exercise evaluated by trained observers. 3. 360 degree Appraisal