LMR FRAMEWORK

LMR Framework consists of three major parties.

1. Employees (non-managerial) and their representative organizations (trade unions)
2. Employers and their representatives (managers/management)
3. The Government(Srilankan Government)
Each party plays an important role in LMR. There is interdependence among the parties involved. Each of these
parties depends upon the other. Union members need jobs to be done in order to earn wages and other rewards
to live. Jobs are available at the hands of the management. Hence, the trade union wants the management
(managers) for job opportunities.
members have job security. The management needs the trade union to support the works done effectively and
efficiently through union members in order to achieve organizational goals. In other words the management
needs the union and union members for effective and efficient job performance.
The Government has the responsibility to preserve industrial peace in the country for her development. It should
contribute to enhance the well-being of the citizens. Hence, the Government needs both the trade union and the
management to work collaboratively to achieve organizational goals. As a whole, trade unions and managers of
the organizations are expected by the Government to work in peace to produce goods and services that are
needed by the citizens to improve their standard of living. The trade union wants the Government to receive the
protection from management illegal activities (the management may engage in malpractices to discourage the
unionization or destroy the union). Also the management wants the government to receive the projection from
illegal trade union activities (the trade union may engage in mal-practices to disturb or sabotage functions of the
management). When the management and the trade union work together collaboratively, there will be a
collective agreement that needs to be honored by each of the both parties. Thus, each party needs the other party
resulting in interdependence among the three parties involved in LMR. The interdependence that exists among
the three parties is shown in following figure.

members have job security. The management needs the trade union to support the works done effectively and
efficiently through union members in order to achieve organizational goals. In other words the management
needs the union and union members for effective and efficient job performance.
The Government has the responsibility to preserve industrial peace in the country for her development. It should
contribute to enhance the well-being of the citizens. Hence, the Government needs both the trade union and the
management to work collaboratively to achieve organizational goals. As a whole, trade unions and managers of
the organizations are expected by the Government to work in peace to produce goods and services that are
needed by the citizens to improve their standard of living. The trade union wants the Government to receive the
protection from management illegal activities (the management may engage in malpractices to discourage the
unionization or destroy the union). Also the management wants the government to receive the projection from
illegal trade union activities (the trade union may engage in mal-practices to disturb or sabotage functions of the
management). When the management and the trade union work together collaboratively, there will be a
collective agreement that needs to be honored by each of the both parties. Thus, each party needs the other party
resulting in interdependence among the three parties involved in LMR. The interdependence that exists among
the three parties is shown in following figure.
goverment

The interdependence that exists among the three parties is shown in following figure.
Which party is the most powerful? Generally the government is the most powerful as it imposes Labour laws,
which regulates the bahaviour of the management as well as the trade union.

types of COLLECTIVE bargaining structures

One employer or a group of employers or an employers organization (federation of employers) or several
employers organizations may participate in collective agreements. One trade union or several trade unions may
participate in collective bargaining on behalf of workers. Thus, there are three types of collective bargaining
structures according to the parties involved:
1. Unitan bargaining: here one trade union and one employer participate in the collective bargaining. Lowest
degree of complexity is seen and within a shorted time relatively, the agreement can be entered into. This type
of bargaining takes place at the organizational level.
2. Multi union bargaining: this structure takes place between one employer and two or more trade unions.
This is the usual practice in an organization where there are several trade unions within the same plant or at
different plants. Relatively the degree of complexity is higher and it will take a relatively longer time for the
settlement.
3. Multiple bargaining: this structure involves several employers as an employers' federation and several
trade unions as a union associations. Relatively the degree of complexity is highest and it will take a relatively
longest time for the settlement as many parties are involved. This type of bargaining usually takes place at the
industry (similar or same) level. Also it may take place at the regional level and the national level as well.

IMPORTANCE of COLLECTIVE bargaining

Five benefits of collective bargaining are:
1 It provides a method for the regulation of conditions of employment by those directly concerned. The
employers and workers in an industry know more about its conditions and problems than any one else.
2. It often leads to better mutual understanding. The employers gain a greater inside into the problems and
aspirations of the workers, while the later become aware of the economic and technical factors involve in
industrial management.
3. It provides a flexible means of adjusting wages and conditions of employment to economic and
technological changes in industry. The parties can meet whenever necessary and can adapt the terms of their
agreements to these changes.
4. It provides a code defining the rights and obligations of each party in their employment relations with
one another. Basic standards are fixed and every worker knows that he cant be required to work under
conditions less favorable than those stipulated in the agreement. A sort of industrial jurisprudence is created.
5. It leads to better implementation of decisions because of the direct involvement of both the parties in
reaching them. Parties know that the decisions are there own and are not imposed.

2definition
Employee Performance Evaluation .~
on
is defined as the systematic process of identifvino measiirina infli^ ^~ j j
A
measuring, influencing, and develon' . ymg
'
eloping job performance of the employees in the organization
ation to the set norms and standards for a particular period of time in order to achieve
A
various purposes.
Turj?oses of
The purposes can be divided into two categories-
1) Management Purpose
2) Informative Purpose
Management purposes
These purposes can be grouped into two sub categories:
i) Administrative purpose
ii) Development purpose ADMINISTRATIVE PURPOSE
,. . on. that PF nrovides a set of information needed to perform
This sub-category means that ft provmcs
successfully many functions leading to management of employees. These purposes mentioned below:

a) Human Power Planning

n f human power planning is to estimate HR supply. Estimating HR One of the steps vi
ly involves auditing current HR, which means assessing characteristics of current employees so as to develop
skill inventories and management inventories which, catalogues competences of each existing employee. To
develop these inventories PE information is needed.
b) Reward Management
PE information is essential to make rewards (wages, salaries, incentives, etc.) decision. Examples, of some
concerns,
1. Should pay increments be paid to employees at the end of the certain period or not?
2. If increments are paid, how much should be paid?
3. Should performance incentives be paid?
c) Management of promotions
Generally promotions are given on the criteria of senior and competency. Competency refers to the degrees of
efficiency and effectiveness of the employee. PE identifies and measures the degree of competencies of
employees.
d) Administration of transfers
There may be employees who cannot perform tasks, duties and responsibilities of the current job successfully
and also there may be employees who can perform better another jobs rather than current jobs. PE information
will be helpful to identify and solve these problems (through right transfers).
e) Discipline administration
When an employee violates a certain rule he/she should be punished (usually except first and second violation in
case of minor offences) through a disciplinary action fundamentally. When determining the degree of severity of
disciplinary action PE information may be useful.
f) Selection
Several methods of selection are used when selecting applicants to fill vacancies. For effective and efficient
selection, the methods used in selecting people should be validated and for validation purpose it is necessary to
evaluate how well employees are performing the jobs.

a) Hiring
Generally when an employee is hired for a permanent job he/she has to spend a certain period of time what is called probationary period
which may be anytime between 3 months and 1 year or even longer. There are three basic decisions that will have to be taken regarding this
period of any employee.
1. Extending the period for another point of time
2. Terminating the period and giving the conformation status
3. Stopping the period and dismissing the probationary employee
b) Management of Labour - Management relationship
PE is an important factor that contributes to labour - management relationship significantly. If PE has right attnbiTtes for fair and accurate
evaluation it will minimize evaluator errors, inadequate feedback, unfair promotions, lay-offs and transfers and inequitable and inadequate
distribution of rewards. Consequently grievances and conflicts are minimized and it will enhance the relationship between labour (union and
workers) and management.
DEVELOPMENT PURPOSE
PE is useful in the following ways for management development.
a) Training
It is essential to identify needs of employees before developing a training programme. PE is an effective source of identifying performance
deficiencies of employees that are mostly training needs of the employees.
b) Success of training
One way of determining the success of a training programme is through an assessment of job behavior of an employee before and after the
training. PE is used to assess employees job behavior.
c) Proper direction
It is possible for a superior to obtain information through PE, which is useful for guiding and advising subordinates. The superior will be
able to give specific and relevant feedback to the subordinates in order to develop them.
d) Better productivity
PE increases mutuality between each subordinate and superior. It generates and encourages favorable superior - subordinate relations if done
properly. Proper P

reduces employees anxiety, as they know how they are performing. When systematic, regular and corrective feedback on performance is
given to employees their productivity enhances. Objective and fair PE help motivation of employees
toward increased individual performances and potential advancement in the organization. All these contribute to better productivity of an
organization.
Informative purposes
The following purposes can be gained:
c) The employee will be able to know what the organization expects from him/her and what he/she expect from the organization.
d) PE lets the employee know what aspects of his/her work performance his/her superior prescribes to be improved.
e) PE informs that job performance of the employee is being appreciated.
f) PE bestows recognition on the employee for excellent performance.
g) PE is a means to help each employee to perform his/her current job more efficiently and effectively.
h) PE is a way of helping the employee to get prepared for future promotions.
JA mocCeC of empCoyee performance evaCuation
PE can be viewed as a process. A process is a series of activities leading to the accomplishment of objective. PE process denotes an answer
for the issue of how to do PE in an organization. The following figure shows the process of PE (Opatha, 2002). The process involves ten
steps, which are of course interrelated.
Step 1: r*'
Establishing objectives of PE is the first step of the process of PE. Objectives are the desired future result that an organization wants to
achieve. Objectives are favorable targets to be ed in future. Always objectives should be clear, understandable and attainable. Some
examples of EPE objectives are as follows:
** T ascertain the current level of job performance of each employee ^ To ascertain strengths and weaknesses of employees To identify
training needs of each employee
Step 2:
This involves formulating policies of EPE. Solutions for some issues by means of
formulating well defined policies have to be decided. Important issues for which policies should b formulated are:
? Whose performance should be evaluated?

? When should be done?

? How often should be done? ? Who should do?
Step 3:
Establishing criteria and standards is the third step of the process. Specific criteria and standards to be used in judging employee
performance have to be identified, selected and established. Without criteria and standards no systematic and fair evaluation can be done.
Step 4:
A method of evaluating employee job performance has to be selected. There are many methods of PE available today. A decision has to be
taken with respect of selecting a method of PE by considering situational factors such as nature of job, purpose of evaluation etc.
Step 5:
Design of PE form and procedure is the fifth step. Having selected a method of evaluation designing PE form and procedure is a must.
Hereby either a common form or procedure for evaluating performance of all jobs or separate forms and procedures depending on the nature
of jobs and employees can be designed.
Step 6:
This step includes training personnel who do evaluation of employee job performance in the organization. Before implementing any PE
programme, evaluators should be trained adequately so that activities involved in actual evaluation can be performed successfully or in the
expected manner.
Step 7:
The seventh step includes appraising. This is the step where the evaluation of job performance of an employee is actually done by an
evaluator. The evaluator is supposed to evaluate the actual job performance of the employee in order to achieve established objectives of PE
in accordance with policies formulated, criteria established, method selected, and form and procedure designed.
Step 8:
This step involves discussing of evaluation results. Once an evaluation has been done, it is necessary that the employee whose performance
was evaluated receive feedback. The evaluator through an interview called performance feedback interview should give this
feedback.

step
g:
Discussion should be taken by the respeetive authorities for various purposes for tvhich PE one. Completed PE forms will become
reference documents, which will be used in fuJe various purposes such as manpower planning, promotions, rewards administration etc forms
will have to be filled in a proper way and should be kept on files for several years. Computers can also used for this.
Step 10:
All the things involved in the above steps will contribute to development of a system what is called employee performance evaluation
system. Once a system is developed it cannot be used forever. Jobs and duties and responsibilities of jobs may change owing to various
changes, which occur within the organization.
Terformance appraisaC techniques
A number of different performance appraisal methods or techniques are available for evaluating the performance of the employees. These
methods can broadly be divided into traditional and modern methods:
Performance Appraisal Techniques
Traditional Techniques
i) Straight Ranl^gVIe^^
j) Paired Comparison Method
\ Grading Method
4. Graphic Rating Method
5. Forced Choice Method
6. Check List Method
7. Free Essay Method
8. Critical Method
Modern Techniques
e) BARS - Behavioural Anchored Rating Scale method
f) Result Oriented Appraisal or
MBO method

TraditionaC Ticfiniques
k) Straight Ranking Method: In this technique, the evaluator assigns relative ranks to all the employees in the same work unit doing
the same job. Employees are ranked from the best to the poorest on the basis of overall performance. This method is also highly subjective
and lacks fairness in assessing the real worth of an employee. And it is difficult to rank the average employees.
l) Paired Comparison Method: Ranking becomes more reliable and easier under the paired comparison method. Under this method,
employees of a group are compared with one another at one time.
Employees rated Final rank
A B C D E
Performance compared with

A * - - + + 3
B + * - + + 2
C + + * + + 1
D - - - * + 4
E - - - - * 5

m) Grading Method: Under this technique of performance evaluation, certain categories of worth are determined in advance and
they are carefully defined. These selected and well defined categories include:
Grade A for outstanding Grade B for very good Grade C for average Grade D for poor
These grades are based on certain selected features of employees such as knowledge, judgment, analytical ability, leadership qualities etc.
The actual performance of employees is compared with above grades and employees are allotted grades that speak for their performance.
n) Graphic Rating Scale: Most commonly used method is Graphic rating scale. The evaluator asked to rate employees on the basis
of job related characteristics and knowledge of job. Evaluator is given printed forms. The performance evaluated on the basis of these traits
on a continuous scale. It is a standardized, quantitative method of

performance appraisal. The scores are tabulated indicating the relative worth of each employee.
POOR
AVERAGE
GOOD
POOR
o) Forced Choice Method: This method was developed during World War II. The evaluators have the tendency to rate the
performance as high, moderate or low and escape the important responsibility assigned to them. The primary purpose of the forced choice
method is to correct the tendency of a rater to give consistently high or low ratings to all
the employees. The statements may be the following:
9. Good work organizer
10. Shows patience with slow learners
11. Dishonest or disloyal 1
12. Careful and regular \ ^
13. Avoids work
14. Hardworking ^
15. Cooperate with fellow workers
16. Does not take interest in work
From the above list of statements, favorable statements are marked plus and unfavorable statements are marked zero. Under this method
subjectivity of evaluator is minimized.
p) Check list: A checklist represents, in its simplest form, a set of objectives or descriptive statements about the employee and his
behavior. The rater checks to indicate if the behavior of an employee is positive or negative to each statement.
The performance of an employee is rated on the basis of the number of positive checks. The objectives of this method are:
It is difficult to construct a good checklist
^ A separate checklist is needed for each job because statements used in one
checklist to evaluate one category of workers cannot be used in another checklist
to evaluate other category of workers.
q) Free Essay Method: it is an open-ended appraisal of employees. Evaluators in his own words what he perceives about the
employees performance. While preparing the essay on the employee, the rater considers the following factors:
&
f
r) Job knowledge and potential of the employee
s) Employees undertaking of the companys programme, policies, objectives, etc.
t) The employees relations with co-workers and superiors
u) The employees general planning, organizing and controlling ability
v) The attitudes and perceptions of the employee in general
17. Critical Incidents Method: under this method, the performance of the worker is rated on the basis of certain events occur during
the performance of the job. These critical incidents or events represent the outstanding or poor behavior of employees on the job. Critical
incidents method helps to avoid vague impressions and general remarks as the rating is based on actual records of behavior / performance.
The feedback from events can be discussed with the employee to allow improvements. The method requires that the behavior of employees in
all significant incidents be recorded in a specifically designed notebook. This method provided an objective basis for conducting a thorough
discussion of an employees performance. This method avoids bias.
Modern Methods
Modern methods are an improvement over the traditional methods. They are an attempt to remove defects from old methods.
1. Behaviorally Anchored Rating Scale (BARS): It is designed to identify critical areas of performance of a job. Under this .method, the
behaviorally anchored ratings scales are outlined to recognize the critical areas of effective and ineffective performance behavior for getting
results. The evaluator is required to observe the behavior of the employee while performing the job. He then compares these behavioral
observations with the behaviorally anchored rating scales. This method is more valid and expected to give more reliable results as it
minimizes the errors in performance appraisal. It identifies measurable behavior and is therefore more scientific.
BARS is a combination of the rating scale and critical incident techniques of employee performance evaluation.
2. Result oriented appraisal or MBO technique: The result-oriented appraisals are based on the conctile performance targets, which are
usually established by superior and subordinates jointly. This procedure has been known as Management By Objectives (MBO). Dr.George
S Odiorne Defined MBO is a process whereby the superior and subordinate managers of an organization jointly identify its common goals,
define each

Chapter <t
individual s major areas of responsibility in terms of the results expected of him, and use these measures as guides for operating the unit and
assessing the contribution of ach of its members.
TrofaCems of Terformance JApj?raisaC
w) Rating Biases: Halo effect, the Error of Central Tendency, Personal Prejudice, ^?^^Harshness and Leniency, Recency Effect,
Unawareness
x) Opportunity Biases: if an employee has better working conditions, he can produce m0rC
y) Group cohesiveness: cohesive groups with high morale can produce more than less cohesive groups.
z) Knowledge of predictor bias: a raters knowledge of the performance of an
employee on predictors can influence his appraisal ratings.
aa) Similarity error: when evaluators rate other people in the same way that the evaluators perceive themselves, they are making a
similarity error.

P
bb) Development of new skills
cc) Higher earning capacity
dd) Helps adjust with hanging technology
ee) Increased safety
ff) Confidence
Training Trocess

Training cycCe
The diagrammatic presentation of systematic approaches usually named as a training cycle. A close study of such a model will show that it
goes around four main stages which are shown in following diagram:
Stage I: Investigating Training needs
A training need is any shortfall in employee performance or potential performance which can be remedied by an appropriate training. It can
also be thought of as the gap between the requirements of the job and the actual current competence of the job holder.
Required Level of Competence - Present Level of Competence = Training
Needs
Human Resource Management - HRM 2013

tts
\
Ammltng 10 Ihlwtu I) lrllppt, Till purpose of Irtlining is U) Achieve a change in the K u
n%yL
oithose twined and to enable Ilium to do iMr job hatter In order to achieve this obj^P ttn\ twining programme should try io bring positive changes in;
p Knowledge; It helps n trainee to know facts, policies, procedures and rules pertaini^ to hisjolv
o Skills; It helps him to Increase Itls technical and manual efficiency necessary to do the Job and
o Attitude: il moulds his behavior towards his ^o-workers and supervisors and creates sense of responsibility In the trainee.
Difftrtfiee /ohm*M fhitningj and 'DeveComment
iTuhilmi
Training is meant for operatives Attn is to develop specific skill Training is one-shot affair
The initiative comes fVom management
Prepared to meet the present needs (Reactive)
Development
Development is meant for_gxgciilivss Aim is to develop the total personality Development is a long-term, continuous process
The initiative comes from the individual himself
Prepared to meet future needs (Proactive)
!
Benefits of Training ancC'Devefopment
TRAINING - BENEFITS TO ORGANIZATION
gg) Improve individual, team and corporate performance:
hh) Provide and update employee's skills, knowledge, etc...
ii) Higher productivity
jj) Better organizational climate
kk) Less supervision
ll) Prevents manpower obsolescence
mm) Economical operations
nn) Prevents industrial accidents
oo) Improves quality

more of the following:

pp) To contribute to decision about programme installation
qq) To contribute to decision about programme continuation, expansion or certification
rr) To contribute to decisions about programme modifications
ss) To obtain evidence to rally support for a programme
tt) To obtain evidence to rally opposition to a programme
uu) To contribute to the understanding of the basic psychological, social and other processes
Designs of Training XvaCuation
Designs of training evaluation refer to approaches or styles of assessing the impact of training on reaction, learning, behavior and results.
There are several designs, which can be used to assess the success of tranining, and three major designs are discussed below: Tost-
Measure
Post measure means assessing success of the training programme after ending it. This design can be done at any level of evaluation. Is this a
good approach to determine real success of a training programme? It is not as it is not possible to know exactly whether there is an
improvement with regard to trainees without knowing their previous states before training. It is not possible to determine meaningfully
whether an improvement has been occurred with regard to the training. This is a major weakness in this method.

a
j fye / Post - Measure
Pre / Post measure means assessing the training programmes success before the training and after the training as well. This
approach is possible to apply at any level of training evaluation. Under this approach it is possible to know whether some changes
have occurred or not due to the training programme. Hence, this approach is better than the first approach. However, it is not
possible to mention here that this approach is a more appropriate style or design. Reason is the inability of saying accurately that
the changes occurred are due to the training programme. Hence, even the use of pre/post - measure has no ability of determining
exact impact of training on results.

Chapter 6
Tre / Tost - Measure ControC- group Design
This design allows to determine the exact impact of training on learning, behavior and results in a reasonable way. There are two
groups, i.e., control group and experimental group. Control group is the group of trainees to which training is not given.
Experimental group is the group of trainees to which training is given. First, an evaluation is done to assess values with regards to
evaluation criteria before the training. Generally, average values are calculated and then training is given to the experimental
group. After finishing the training, post evaluation is done to measure the performance of both groups. Then performances of the
both groups are compared. If there is a significant difference between the control group and experimental group with regard to each
of the evaluation criteria and/or overall performance, it can be reasonably concluded that training was successful.
Experimental Group Measure Training \ Measure
=>j

Control Group Measure Training Measure

=>| ffe

Human Resource Management - HRM 2013

9

Training techniques (t) On-the-joB training

On-tbe-jofe training (OJT> means having a person learn a job by actually performing it. In many companies. OJT is die only type
of training available. It usually involves assigning new empk\ ees to experienced workers or supervisors who then do the actual
training.
There are several types of on-tfae job training methods/different forms of training:
^ On the job instruction ^ Coaching 'understudy approach ^ Counseling ^ Delegation by boss ^ Guided projectsAction learning
^ Job rotation (managerial on the job development method)
'S Apprentice training ^ Special Assignements
OJT has several advantages
vv) It is relatively inexpensive; trainees learn while producing, and there is no need for expensive off-job facilities like
classrooms or programmed learning devices.
ww) The method also facilitates learning since trainees learn by actually doing the job and get quick feedback about the
correctness of their performance.
However, there are several trainer-related factors to keep in mind when designing OJT programs. The trainers themselves should
be carefully trained and given the necessary training materials. Experienced workers who are chosen as trainers should be
thoroughly trained in the proper methods of instruction - in particular the principles of learning and perhaps the job instruction
technique that we address next
(2) Off-tBe-joB training
Off-the-job training: means having a person learn a job outside/while not performing the job. There are several types of off-the
job training methods/different forms of training:

competencies but another reason, there is no genuine need for training.

Training objectives
Training objectives are the statements of what training is intended to achieve. Objectives are established bv basing on identified
training needs. Objectives are to be developed so that identified needs are fulfilled. Training objective shouldjje,
xx) Specific .'Achievable Time bound
yy) Measurable Relevant
In fact success of the training is determined by examining the extern to which these objectives have been achieved. Well written
objectives will benefit training in at least three ways:
o Clarify what is to be expected from both trainee and trainer o Help to determine suitable training method o Provide a basis for
evaluating the programme
Stage 2: Designing Training
By doing the first step, it is possible to identify many different training needs. It may not be possible for the organization to meet all
these training needs practically during the same time. Main reason for this is the limited amount of resources allotted for training.
Especially financial resources and time are limited. As there are various training needs they need to be prioritized according to the
order of importance. This prioritizing has to be done by examining the impact of each training need on achieving the strategic needs
of the organization, in particular strategic objectives.

zz) Training Budget:

Training budget is a financial plan showing in detail how much money will be needed for implementing the proposed /
planned training programme. Expenditure has to be estimated for all activities to be performed in carrying out (he
training plan Fees for trainers, allowance for trainees, expenses for preparation of learning materials, expenses for
meals and refreshments, rental and travelling fees etc will incur.
18. Training Methods:
The most appropriate training methods should be decided to use by considering training objectives and training
contents. Sometimes two or more methods have to be used. In addition to training objectives and contents, factors
such as cost, number of trainees, availability of competent trainers, availability of time, ability to increase motivation
to learn and types of trainees may have to be considered when deciding appropriate training methods.
19. Training Materials:
Training Materials need to be prepared by considering training contents. Materials may contain text books, manuals,
handouts, articles and various forms. Provision of learning materials will increase quality of learning of the trainees
and quality of instructing of the trainers.
Stage 3: Conducting Training Trogramme
In this step carrying out the training programme designed occurs. As planned the training programme needs to be
implemented. The only general rule for conducting a training programme is that the programme should continually be
monitored to ensure that it is carried out according to the plan and within the agreed budget. A sound supervision is
needed to ensure that implementation of the training programme compiles with the training programme
HR Manager or the officer who is in-charge of the trg
as planned. This has to be done by
programme.
Stage 4: TvaCuating effectiveness of training
Evaluation is the final stage of the training. Evaluation refers to measuring the de$ efficiency and effectiveness of the training
programme. It is the activity of col information about results of the training programme and measuring value of the t programme
by using such information. The focus of evaluating and the methodology i varies greatly from programme to programme. The major
purpose of the evaluation a; more of the following:
aaa) To contribute to decision about programme installation
bbb) To contribute to decision about programme continuation, expansion or certific
ccc) To contribute to decisions about programme modifications
ddd) To obtain evidence to rally support for a programme
eee) To obtain evidence to rally opposition to a programme
fff) To contribute to the understanding of the basic psychological, social ai processes
Designs of Training TvaCuation
Designs of training evaluation refer to approaches or styles of assessing the impact o on reaction, learning, behavior and results.
There are several designs, which can b assess the success of tranining, and three major designs are discussed below: Tost-
Measure
as planned. This has to be done by HR Manager or the officer who is in-charge of the training programme.
Stage 4: EvaCuating effectiveness of training
Evaluation is the final stage of the training. Evaluation refers to measuring the degree of efficiency and effectiveness of the training
programme. It is the activity of collecting information about results of the training programme and measuring value of the training
programme by using such information. The focus of evaluating and the methodology adopted varies greatly from programme to programme.
The major purpose of the evaluation as one or more of the following:
ggg) To contribute to decision about programme installation
hhh) To contribute to decision about programme continuation, expansion or certification
iii) To contribute to decisions about programme modifications
jjj) To obtain evidence to rally support for a programme
kkk) To obtain evidence to rally opposition to a programme
lll) To contribute to the understanding of the basic psychological, social and other processes
Designs of Training TvaCuation
Designs of training evaluation refer to approaches or styles of assessing the impact of training on reaction, learning, behavior and
results. There are several designs, which can be used to assess the success of tranining, and three major designs are discussed below:
Tost-Measure
Post measure means assessing success of the training programme after ending it. This design can be done at any level of
evaluation. Is this a good approach to determine real success of
mmm) Desires of top management
nnn) PossibUitYjyf measuring the results of the training
ooo) Trade union influence
Having identified training needs and objectives, the manager will have to design the programme. Training programme needs to be
designed carefully to ensure that it meets the identified objectives. The following factors have to be considered in designing training
programme:
20. Training Place:
Generally, there are three laces for conducting training. First place is at the job itself. It means that training occurs on the
particular job. On-the-job or at the job itself will be needed if training needs are more job-oriented technical knowledge and skills.
Second place is on site but not on the job. If the type of the training needs is basic grammar, skills it can be done on site. Third place
is off the site. such as universities or college. This place is generally chosen for training of human relational skills and training of
conceptual skills. Large organizations may have their own special departments or centers for training located inside the
organization or outside the organization.
21. Training Duration:
Training contents need to be examined in determining the right duration for the training programme. Some programmes may be of
duration of one day. Some may be of duration of even three months or one year.
22. Training Time:
Training time refers to dates of training sessions and particular hours of the training sessions. A specific time schedule or timetable
needs to be prepared. When deciding dates and times, holidays and availability of trainers should be considered. If the training is
off-the-job and outside the organization, training centers may decide time.

Training programme heavily depends on the quality of the trainers. Trainers should be experts in the relevant fields and their
expertise should be obtained through education, experience and training.
) Training Contents:
Training Contents refer to all the things, which are contained in the training programme. In simple, contents are the things that
trainers are going to learn under the training programme,
ppp) T raining Budget:
Training budget is a financial plan showing in detail how much money will be needed for implementing the proposed / planned
training programme. Expenditure has to be estimated for all activities to be performed in carrying out the training plan. Fees for
trainers, allowance for trainees, expenses for preparation of learning materials, expenses for meals and refreshments, rental and
travelling fees etc will incur,
qqq) Training Methods:
The most appropriate training methods should be decided to use by considering training objectives and training contents.
Sometimes two or more methods have to be used. In addition to training objectives and contents, factors such as cost, number of
trainees, availability of competent trainers, availability of rime, ability to increase motivation to learn and types of trainees may
have to be considered when deciding appropriate training methods,
rrr) Training Materials:
Training Materials need to be prepared by considering training contents. Materials may contain text books, manuals, handouts,
articles and various forms. Provision of learning materials will increase quality of learning of the trainees and quality of instructing
of the trainers.
Stage 3: Conducting Training Trogramme
In this step carrying out the training programme designed occurs. As planned the traini programme needs to be implemented. The
only general rule for conducting a train programme is that the programme should continually be monitored to ensure that it is car
out according to the plan and within the agreed budget. A sound supervision is neede ensure that implementation of the training
programme compiles with the framing progra
CAaptar 6
Training techniques
sss) On-tfie-joB training
On-the-job training (OJT) means having a person learn a job by actually performing it. In many companies, OJT is the only type of
training available. It usually involves assigning new employees to experienced workers or supervisors who then do the actual
training.
There are several types of on-the job training methods/different forms of training:
Z On the job instruction Z Coaching/understudy approach Z Counseling Z Delegation by boss Z Guided projects/Action learning
Z Job rotation (managerial on the job development method)
Z Apprentice training Z Special Assignements
OJT has several advantages
23. It is relatively inexpensive; trainees learn while producing, and there is no need for expensive off-jo^ facilities like
classrooms or programmed learning devices.
24. The method also facilitates learning since trainees learn by actually doing the job and get quick feedback about the
correctness of their performance.
However, there are several trainer-related factors to keep in mind when designing OJT programs. The trainers themselves should
be carefully trained and given the necessary training materials. Experienced workers who are chosen as trainers should be
thoroughly trained in the proper methods of instruction - in particular the principles of learning and perhaps the job instruction
technique that we address next.
ttt) Off-tfie-joB training
Off-the-job training: means having a person learn a job outside/while not performing the job. There are several types of offf-the job
training methods/different forms of training:
Resource Management - HRM 2013
10
p| In company
S Lectures/Talks S Groups discussions S development exercises
uuu) External
College courses (long)
S College courses (short)
S Consultants/Other training organizations
vvv) Case study method (managerial off the job development method)
www) Management games (managerial off the job development method)
xxx) Outside seminars (managerial off the job development method)
yyy) University related programmes (managerial off the job development method)
(3) Job instructionaCtraining
Many jobs consist of a logical sequence of steps and are best taught step by step. This step-by step process is called job instruction
training (JIT).
There are several types of job instructional training methods / different forms of training:
25. Lectures
26. Audiovisual techniques
o Tele-training o Videoconferencing
27. Programmed learning - A systematic method for teaching job skills involving presenting questions or facts, allowing the
person to respond, and giving the learner immediate feedback on the accuracy of his or her answers.
28. Vestibule or simulated training - Vestibule or simulated training is a technique in which trainees learn on the actual or
simulated equipment they will use on the job but are actually trained off the job.
29. Computer based training - In computer-based training, the trainee uses a computer-based system to interactively
increase his or her knowledge or skills.
LT
M20I3
Chapter 6
* Role-plaving exercises ' Skills
CHAPTER 3
_ cr>
Recruitment (R)
Objectives of this chapter:
After studying tins chapter, you will be able to: y ^ 1. Define what Recruitment means
v -2:Explain thesignificance ofTecmimi'ent . 3,. Detail recruitment process .;^
zzz) Understands arious methods of recruitment
Recruitment is the process of finding and attracting suitably qualified people to apply for employment. Recruitment is thatrset of activities
an enterprise uses to attract job candidates who have the abilities and attitudes needed to help the enterprise its objectives. It is the process of
generating a pool: of qualified applicants for organizational jobs. Recruitment results in creation of a pool of job^se vthers.&om which
persons are selected..
Often the responsibility of perfonningthe recruitment function goes to HR department of an organization. A very large organization
continuously Recruits applicants for job vacancies and therefore, there may be a separate HR specialist called Recruiter or Recruitment
Specialist.
Significance
The quality of HR in an organization depends on the quality of job applicants attracted. ^ Recruitment related to a set of HRM activities
such as human power planning, job analysis, selection and reward management. The following figure depicts recruitment and related HRM
functions:
Defvnitioiy^ K Hi
1 Benefit
aaaa) Advancement opportunities
bbbb) Desirability of geographic location
* - .Organization! s.repntation as n-good place to work
30. Attractiveness of j ob
cccc) Nature, of work
dddd) Work schedule
eeee) Friendliness of co workers
ffff) Nature of supervision
31. Recruitment activities
. * Information conveyed to the candidate
gggg) Manner in which the candidate is recruited
Process
1. Identify j ob vacancies (from HRP and specific requests made by managers)

HI
2. Ascertain j ob requirements (from JA information and managers comments)

i
3. Consider factors affecting.Recruitment (organizational policies, cost, time and
others)
I
4. Prepale job application (standard one or self-prepared) |

5 Select the method of recruitment (internal or external)

^ i i
\..
6 : implementation (individuals apply and their application are received)

F
. Evaluation of recruitment effort

INTERNAL RECRUITMENT POLICY

candidates to fill vacancies within the organization itself
Methods of inte'n'iaCrecYuitYi'iei'it
hhhh) Job posting / Bidding
Joh-yfycnng-yn^aris Publieizfflg-an-opcn job to employees (often by literally posting it on bulletin board) and listing its
attributes, like qualifications, supervisor, working
schedule and pay rate.
iiii) Personnel records and skill ba
jjjj) Employee referrals (internal)'
kkkk) Intranet
llll) Succession planning
Forecasting the availability of inside executive candidates is particularly important in succession planning the ongoing process of
systematically identifying, assessing and developing organizational leadership to enhance performance.
mmmm) Career development systems
A Method of internal recruiting in which a firm places fast-track or high-potential employees on a career path where they are
groomed for certain targeted jobs.
ADVANTAGES OF INTERNAL RECRUITMENT
r- Absorbing people already familiar with the company culture (known devil better than unknown angel)
32. It is a useful signal to employees and assures them that their services are recognized and this helps in maintaining their
motivation and morale
33. It reduces labour turnover as it gives employees a sense of job security and opportunity for advancement
34. The employees are fully familiar -with the organization hence, job training can be reduced
35. Internal sources of recruitment are less-costly than the other sources of recruitment
36. Possible to attract people who expect career development
37. Possible retain current appropriate employees
It refers to procuring
INTERNAL RECRUITMENT POLICY It refers to procuring candidates to -fiiu vacancies within the organization itself.
Methods of inteimaCrecruitment
Job posting / Bidding * ^|| 'i- -
Job posting-means Publiekrag-an-opeii job to employees'foftenTry lilfciailyposting it
on bulletin board) and listing its attributes, like qualifications, supervisor, working
schedule and pay-rate.
nnnn) Personnel records and skill banksH
/- x.-(P6c*"?. ^ ,'S> '
oooo) Employee referrals (internal) U.3^-
pppp) Intranet
qqqq) Succession planning .
Forecasting the availability of inside- executive candidates'is particularly important in succession planning the ongoing process of
systematically identifying, assessing and developing organizational leadership to enhance performance,
rrrr) Career development systems
A Method of internal recruiting in which a firm places fast-track or high-potential employees pn a career path where they are groomed for
certain targeted jobs.
ADVANTAGES OF INTERNAL RECRUITMENT
> Absorbing people abeady familiar with the company culture (known devil better than unknown angel)
H It is- a useful signal to employees and assures them that their sendee's" are recognized and this helps in maintaining their motivation and
morale.
y It reduces labour turnover as it gives employees a sense of job security and opportunity for advancement
38. Hie employees are fully familiar with the organization- hence. job training can be reduced
39. Internal sources of recruitment are less costly than the other sources of recruitment
40. Possible to attract people who expect career development
41. Possible retain current appropriate employees
a)
Encourage sound labour-management relationship > Lesser orientation time or no need of induction
DISADVANTAGES OF INTERNAL SOURCES OF RECRUITMENT y It limits the choice to a few employees only . __
y The likes and dislikes of the superiors play an important role in the selection of s:
ssss) It creates frustration among those employees who are not selected.
tttt) Prevents from flowing inside of new knowledge and skills
y No opportunity of having the most appropriate man from a large number of recruits
uuuu) Avoids new blood and retain old blood
vvvv) Higher cost in procuring / training a professional
XxtemaC recru ttmentjpo Cicy
METHODS OF EXTERNAL RECRUITMENT
42. Employee referrals
A method of external recruitment in which firms ask their employees to soKcs: applications from qualified friends and associates.
43. Help-Wanted advertisements
A method of external recruitment in which a company places an advertisement of the position in the appropriate media (e.g.: newspapers,
magazine)
44. Employment agencies
45. Executive search firms
Employment agencies used to recruit mid - and senior - level managers with salaries. Popularly they have
known as headhunters.
46. University recruiting
A recruiting method in which the firms recruiters visit various college sna universities to recruit individuals
for positions requiring a college degree.
47. On-line recruiting
Advertising job openings on the internet.
Human Resource Management - HRM 2013
ADVANTAGES OF EXTERNAL RECRUITMENT
r Fresh talent and skill conies into the organization
r New employees may try to change old habits
wwww) New employees may be selected according to the terms and conditions of the organization
xxxx) Highly qualified and experienced employees may help the organization to come up with better performance
| Since persons are recruited from a large market, the best selection can be made. In otherivordsrthe" recruiter
hafa^dfrran'ge oTcandidates to choose from.
r External sources provide a requisite type of personnel for an organization, having the required skill.
I External sources of recruitment are economical because potential employees do not need extra training for developing
their skills
DISADVANTAGES OF EXTERNAL RECRUITMENT
r External sources of recruitment reduce the morale of employees because outsiders are preferred to fill up superior
vacancies
1 External sources of recruitment deny career advancement for employees
yyyy) The recruiters may not be in a position to properly evaluate outside candidates because the time at his disposal is
very less. This may result in faulty selection of employees.
1 Outsiders are not fully familiar with the policies and procedures qf the organization. Therefore, they should be given
training, which is quite expensive.
Selection (S)
Objectives of this chapter:
After studying this c h a p t e r , b e . a b l e
zzzz) Define what Selection means
aaaaa) Explain the significance of Selection
- - - 3-.- -Understand -three-obj eotives^f^eleption3tt^*^- 4. Describe main methods of. Selection v ^ -5. Understand a typical Selection
process
P 'Definition
Selection is the process of making the choice of the most appropriate person from the pool of
. applicants recruited to fill the relevant job vacancy, Determining applicants* who have the highest capability tothe desired job'performance
in selecfioif. Selection
involves the use of one of.more methods to assess candidates in order to make a decision: as to their suitability' to perform duties and
responsibilities of the jobs successfully. -
Objectives of seCection
The personnel / HRM specialist tries-to achieve following objectives in the selection process^;;
48. To get the right person-for the right j ob
49. To establish or maintain an image as a good employer
50. To perform the selection process as cost-effective as possible
Significance of seCection
Selection miction has direct effect, on the .quality' of HR available in the organization. The inefficient and ineffective selection
results in deterioration of quality of HR and ultimately impairs organizational success. Examhiing the objectives- of selection
.fh^importance of selection. Apart from them, unfavorable consequences of a wrong selection decision are as follows: i
g) Expected job performance does not occur as long as the wrong employee is within the | organization.

2. Los^of *ppropriate l expectod contribution that.could have been acqUj the right person.
bbbbb) Cost incurred -for induction and training of the wrong employee will g0 in v
ccccc) Possibility of oceurrcnoe of losses and oosts
ddddd) Cost of grievance handling arising from an elimination decisions.
eeeee) Additional cost in procuring a new right employee.
7. Possibility of harming thoughts of some existing employees.
Selection:Process
 .-'IV iT.
SeCection methods
51. APPLICATION EVALUATION:
Nearly all companies require outside candidates to complete application blanks as the first step in the selection process. Tire typical
application blank asks candidates for background information. In this process the firm assessing the applicants suitability using the
information given in the application form sent by him/her. This is not a very popular method in Sri Lanka though it is a good method of
selection; More objective form of application evaluation is weighted application blank that is an application

Objectives of this chapter:

After studying this chapter, you will be able to:
fffff) Define what Hiring means
ggggg) Understand the process of hiring
31 Describe importance of probationary period
4 Jescrib&^wiiatriiiiucfiohineans and the importance of induction
52. Detail the process^ of induction _: J'*
Definition of hiring
Hiring is the process of appointing the candidate selected to the post / job which is vacant. Generally the authority. of obtaining and
appointing new employees is vested in top management of the organization. This authority at the hand of top management is exercised
directly with regard to senior managers. The authority of hiring non-managerial and junior managers may be delegated to line middle
managers and/or human resource manager.
^Hiringprocess
Following figure depicts a model of hiring process:
Enter into contract of employment

conformation, a new employee who is on probation

is not legally a pfelmahent^employee.- The period may be anything between three months and
one year or even longer. At any time during the probationary period andup_to.the.end of the.
period, the employment can be terminated by either the employer of the employee or both at short notice without any further obligation on
either party.
'Definition of induction
Induction is the HRM function that systematically and formerly introduces the new employee to the organization, the job, the work group to
which the hew comer will belong and the work environment where the new comer will work.
As induction familiarizes new employees with the work and general organizational environment it is some fonn of training. Induction can be
divided into two categories' basically:
X General induction (introducing the new employee to the organizational setting)
X Special induction (introducing.the new employee to the job and job environment)
Importance of Induction
It is expected that induction will help the new employee face Cultural Shock and Real Shock (a strong feeling of distress due to the
incompatibility between what the new employees expects in his/her new job and the reality he/she is confronted with) successfully.
Also it will facilitate the socialization of the new employee. Following objectives are also being expected to achieve through
induction:
hhhhh) To. build confidence about self and the organization within the new employee so that he/she will become a productive
employee.
iiiii) To create the feeling of belongingness and loyalty within the new 7 employee.
jjjjj) To familiarize the new7 employee with the job and the job environment within a
: . v
shorter time.
r
kkkkk) To generate favorable attitudes within the new employee about peers, sap^ the organization in general.
5 To sreig the new employee to contribute to organizational success more quickly.
Induction process
Induction process is shown in the following figure:
Preparation
Conduct
Follow-up & Evaluation
Preparation is essential to get accurate and clear answers for the following questions:
53. About what information a basic understanding should be given?
54. Who should give the information?
55. How to give the information?
56. Within what period should information be given?
Conduct has to be done to make induction programme in action. Supervision is important aspect with regard to proper conduct.
Follow-up is important to check to see whether induction programme is being implemented as planned. Evaluation needs to be done
to assess the degree of success of the programme implemented.
Types of inductionprogramme
1) GENERAL INDUCTION PROGRAMME
After the selection an employee need to be oriented towards the job and the organization. This is formally done through a process
known as induction or orientation. Induction is a welcoming process. The idea is to welcome the candidate, make him feel at home in
the changed surroundings and to introduce him to die practices, policies and purposes of the organization. Induction leads to
reduction of such stranger, shy, insecure and nervous.
lllll) SPECIFIC ORIENTATION PROGRAMME
~ t stage, mauetian is conducted by the foreman. Induction is specific and Tetpiutb skill on the part of the
foreman. A new employee must be provided operational knowledge that is specific to the position and location.
The immediate boss is responsible for training and induction. Every new employee should know.
^ a) The people who work with him
h) The work he is responsible ibr
57. The current status of the work
h) ~-The result he is supposed to accomplish ~ Sap**1
i) His relationship in die organization
The purpose of specific induction is to enable an employee to adjust himself to Ms work environment.
mmmmm) FOLLOW-UP INDUCTION PROGRAMME
The purpose of follow-up induction programme is to find out whether the employee is reasonably satisfied
with the job. It is usually conducted by the foreman or by a specialist from the personnel department.
Guidance and counseling efforts are made to remove the difficulties experienced by the new comer. Usually,
follow up induction takes place after one or two months from the time of appointment.
OBJECTIVES OF WAGE AND SALARY ADMINISTRATION
Following objectives are expected to be achieved by wage and salary administration:
nnnnn) To attract suitably qualified persons to the organization
ooooo) To retain the most appropriate employees within the organization
ppppp) To motivate employees
qqqqq) To comply with legal requirements
rrrrr) To ensure equity
sssss) To control employment cost
SIGNIFICANCE OF WAGE AND SALARY ADMINISTRATION
Understanding the objectives of PM makes you to understand the significance of PM. As far as the nature of pay is concerned, the
employer sees it as an expenditure, and therefore he/she attempts to reduce or at least control. However, the employees sees the pay
as an income, and therefore attempts to increase or expects to get more. Consequently, there is a greater
ence of confrontations between the employcr and. the employee. Tt
suggests that PM will have to be done effectively in order to avoid a lot of conflicts, chaos and disputes. . ^.
There are many bad consequences owing to pay dissatisfaction. Edward E.Lawler (1971) has presented a model of the consequences
of wage and salary administration which is given in following figure:
z_
Human Resource Management HRM 2013
ICUUCUV) JLUi LUC UL/Cim
EQUITY ISSUE IN WAGE AND SALARY ADMINISTRATION
is equity ? Simply, it is the degree of reasonableness. There are five types of equity, i.e., pnraary equity, internal equity, external
equity and inputs equity.
Primary "Equity
Flimsy equity refers to degree to which pay is capable of meeting primary needs of the employee. Primary needs include basic or
physiological needs such as, foods, water, cloths and shelter. There are needs which will help the employee to survive or maintain
his/her life. If use pay received by the employee is sufficient to meet basic needs it is possible to say that
in mi in c *cr winww xwtfy
lntemaf Tquity
Haul equity refers to degree to which the pay is related to the relative worth of jobs. SioriHj nays must be paid for similar jobs and
dissimilar pays must be paid for dissimilar jobs. Equal pays are to be given for equal jobs. Unequal pays are to be given for unequal
jctakBttlKqfaalitY of pays should be equal to inequality of jobs.

External equity
xtonal equity refers to degree to which pay received by an employee in in organization is related to pays received by similar employees in other
organizations. It involves paying employees at a rate equal to the pay that similar employees receive in other firms.
Inputs equity
Inputs equity refers to degree to which pay received by a particular employee in an organization is related to his/her inputs used to perform duties of the job.
Every employee has to use his/her competencies, time and energy (inputs) so that the job it performed successfully. If an employee perceives that his/her
inputs or not sufficient compared with his/her inputs, it is possible to say that pay has no inputs equity.
FACTORS AFFECTING WAGE AND SALARY There are several factors, which affect wage and salary given by the organization to its
employees. Following factors influence on determining wage and salary for a particular job to an extent that is more or less.
External Environment
ttttt) Government legal requirements
Every organization will have to structure its pay system in accordance with acts and ordinances of wages and salaries imposed by
the government from time to time. Main law is Wages Boards Ordinance, and Shop and Office Employee Act are governing
organizations pay system.

uuuuu) Apply informal talk using sandwich and participative approaches.

vvvvv) Ascertain how to apply progressive discipline.
wwwww) Know what questions to be used in review and renewal and some additional principles to be followed in managing
discipline.
INTRODUCTION
Employee Discipline Management (EDM) can be introduced as a very important URM function. Discipline is essential not only for
the success of general life of a person but also for the success and progress of success of an organization.
DEFINITION OF DISCIPLINE
Robbins (1982) defines that the term "discipline refers to a condition in the organisation when employees - conduct themselves in
accordance with the organisation's rules and standards of acceptable behaviour. According to Collins Birmingham University English
Language Dictionary (1987), discipline is the practice of making people obeys arid rules of behaviour and of punishing them when they
do not obey them.
Based on the above definitions the term 'Discipline* involves the following:
58. A condition where employees conduct themselves in accordance with rules and standards of acceptable behaviour.
59. To make employees obey rules of behaviour.
60. To punish employees when they do not obey rules of behaviour.

Digeipdk
rG 3
IV. Managerial action encouraging employees to comply with
organisation.
V. A form of training to enforce organisational rules.
The basic purpose of discipline is to encourage employees to behave sensibly at where
"sensible behaviour" is defined as adhering to rules (Dessler, 1984). Rules reft official
instructions in respect of what employees must and are allowed to do and wl employees
are not allowed to do. For instances, *to start working at 8.00 a.m.' is aiofficial
instruction the employees must follow and 'not to smoke within the factory'is an official
instruction that employees are not allowed to do. Here the term 'rules'has a broad meaning that
includes essential job performance standards, standards of conduct and attendance, regulations,
policies and procedures to be followed in carrying out various organizational activities as well.
In general rules are made to protect the organizations from indiscipline behaviour of
employees.
Employee discipline Management (EDM) is defined as a systematic process of controlling and
influencing all employees in the organization to achieve and maintain standards of behaviour (rules
of behaviour, alternatively the code of behaviour at work) in order to accomplish organizational
goals and objectives. It is viewed as formulation,
implementation and on-going maintenance of a fair and constructive discipline system for
controlling human behaviour.
IMPORTANCE OF DISCIPLINE
xxxxx) The main purpose of employee discipline management is to ensure that employees conform to norms or
standards of behaviour at work determined by management as being necessary for the attainment of
organizational goals.
yyyyy) Proper administration of discipline results in willing cooperation and observance of the rules
established to achieve organizational goals and objectives.
zzzzz) Proper employee discipline will lead to the absence of disorders and irregularities in the employees'
behaviour.
/ Disciplined employees cooperate and behave in orderly way.
aaaaaa) Employee morale and industrial peace are definitely linked with a proper maintenance of discipline
CHAPTER 2.
Human Resource Planning (HKP)
Objectives of this section:
After studying this section* you will be able to:
JDefine what HKPis
bbbbbb) Explain why HEP is important for an organization ^Statue fif)<5dDdte> sndco5.
cccccc) Figure out the HEP process
dddddd) Describe nine causes of future HE demand
eeeeee) Detail estimating HR supply
6. jGrve strategies in shortage/surplus conditions of HR .^
. - ... . .
Definition v, '
HRP is the process of determining future employee needs and declining steps or strategies to
ffffff) Of'Socs ^csesy>;&0 Career moves can be anticipated well in advance
gggggg) Training for those employees scheduled for transfer or promotion be carried ou inappropriate period of time
hhhhhh) Provide more effective Human resource management
iiiiii) Ensures replacement availability to fill critical vacancies
jjjjjj) Provide understanding of the present in order to confront the future
Objectives ofJ-CRT
61. To acquire the more appropriate employees on the more appropriate jobs at the more appropriate time
62. Tp^get the maximum utilization of organization manpower
63. To predict problems retiectmg with over staff cttid under, staff.
;fx5^es> es>6e>joas$3 <5>J&3C>C0'' zsy
r * S BOTSHSHI
Employers are forced to respond to events after they occur, rather than before, i.e.,
they become reactive rather than proactive: * . /
css ( 25 '
<* Unable to correctly anticipate an increase in its future demand fpr employees *** Fail to find the best candidate - *** The company may
become seriously understaffed: o Stress - >
o Increase in back orders O r_0 an'z.oA O n CLI Or d . r i b act o r
o Decrease in customer goodwill
o Increase in competition . o Loss of market share
Consequences associatedTwith the faiCure to jpCanfor Human 'Resource 'r~>

achieve those needs for the purpose of accomplishing organization goals and objectives.. It is Trnx. . , ' ^m.
a JnLKM function that focuses on providing the organization with an adequate manpower m
order to achieve goals/objectives of the organization. Main objective of HRP is to prepare the
<OCK0C>3S
organization to acquire the more appropriate employees on the more appropriate jobs at the more appropriate times so that overall
organizational goals are attained.
H jilM
Significance
By'HRP an organization is able to achieve the following purposes (reasons for HRP). f To determine future employee needs f - To
utilize HR more efficiently and effectively
? To con troll employee cost To develop high talenfraipfoyees
To formulate and implement strategic plans
'Benefits ofjfiiman Resource TCanninp
B
It allows you to devise a long-term recruitment programme Selecting staff to meet 'both present ana future needs
J-CRT ^process
The following figure shows the stages of HRP process:

1. Forecast future demand for HR

2. Estimate HR supply 1
*
4<
3. Compare forecast demand with estimated supply

4. Develop strategies to be taken 4....

5. Assess HRP effort 56 90. to

Feed Bac

STEP 1: FORECASTING DEMAND FOR HR (FDHR)

Demand forecasting is the process of estimating the future numbers of people required and
Q'zi (Ju
the likely skills and competencies they will need..
The forecaster should examine the following questions:
V What jobs now exist
p|| cSito
/ How many individuals are-performing each job ' / What are reporting relationships of jobs HI How an essential each job S t-
1^^_
/ What jobs will be needed to implement the organizational strategy Here following factors affecting future demand have to be
considered:
S Demand for the product i| Goals and strategic plans of the organization . , / Production method H Retirements
' y Resignations ^p&80
H Deaths
cD O CO

;v'' Leaves of absence <S

/ Termination <^?E><2ftC& x>'& , i
External fketors ;such as, new technology, population changes, government influences,, foreign investments and geographical and
competitive conditions
Demand- forecasting for HR means estimating future impact of factors affecting HR demand^ as much accurate as possible and detei
rammg^mployees needecTby the organization foi the relevant period of time.'Forecasting involves use of past and current information in
order to identify future expected conditions of demand factors for a particular period of time. |
TECHNIQUES OF DEMAND FORECASTING 1. managerial or Expert Judgment . ' 2 . Trend Analysis ' , :
^>^7535000 / TD6G3 / OSes 33 CD ;
-!3. Kano Analysis
.<>
kkkkkk) Regression
llllll) Work Study Techniques
mmmmmm) Forecasting Skill and Competence Requirements
nnnnnn) Group Brainstorming
STEP 2: ESTIMATING HR SUPPLY"
There are two sources of supply: jntemal and external. The internal supply consists^ current employees who can be promoted,
transferred promoted to meet forecast needs. People in the labour market who are no employed in the organization considered
include under external supply. They are both employees of the other organizations and those who are seeking jobs to be employed.
|
SUPPLY FORECASTING TECHNIQUES INTERNAL EMPLOYEES
1) Qualifications inventories; manual or computerized records listing employees education, career and Hevelop.ment interests,
languages, and special' skills and so on, to be used in selecting inside candidates for promotion. : f SB ^0 *

*7 1 * *uuuci inventory, development record form: compiles quS on each employee.

oooooo) Personnel replacement chart: company records showing present performance proinotability of inside candidates for the most
important positions
pppppp) Position replacement chart: a card prepared for each position in a company to show . possible replacement candidates and their
qualifications.
EXTERNAL EMPLOYEES
64. General economic conditions
65. Expected unemployment rate
. j
Step 3: Compare forecast demand 'With estimated suppCy
This step involves determining net employee requirements and identifying shortage and surplus of HR.
Job title Department Forecasted HR 1 Estimated HR 1 Net HR
Demand Supply Requirement 1
Accountant Finance 05 02 +03 l
Marketing Marketing .18 1 20 P -.
executives
> 1 _]
1
Step 4: T>eveCop strategies
Strategies in surplus conditions
j) Layoffs (downsizing)
k) Formal outplacement facilities HI Termination
l) Restricted overtime
m) Job1 sharing \
n) Pay reduction
Strategies in shortage conditions
Hiring additional workers
Additional shifts
Provide oppoiTuinues IOX learne: for a period of time
Human Resource Management - HRM 2013
Attrition (V oluntary departures) 3^?
#Scsa63~ I'_ -
Encouragement - of leaves 01 .
absence
Early retirements 0 voluntary basis
Reduction m reward expenditure
qqqqqq) Additional training to improve the productivity of workforce
rrrrrr) Overtime
ssssss) Hire Temporary workers
tttttt) Hire part-time Workers
Limitations ofJ-Cuman Resource Canning ; Jl
66. - Types of jobs ajj
... . Some firms are faced more competition, some firms are depending on unpredictable^ r '.'political factors, some firms are functioning
under the contract basis. These factors
A* influence in the types of jobs. :
>X -CBtagT fit* d&QQ
67. Careless of members of management
Success of Human Resource Planning depends on the behavior of members of
management \l
*aa-3eo>^ e) '
68. Level of acceptance of human resource planning
1 7~~ . .
Changes m forecasting job pattern, job specialization, status of employees, salary structure may impose protect among the employees. This
activity may create threat in Human Resource Planning.
69. Socio, Economic changes
70. . New technological development
71. Financial positions
The members of the management accepted even a Human Resource Planning, sometime it canh implement successfully.' Because lack of
financial problem.
(? ' if- 'ms#**6 H & P c&soaazo
'Reasons for some organizations are not engagecCin 3-CRT
o) Unaware of benefits of HRP
p) Difficulties in getting skilled people to carryout he HRP . 3. There is a high level of unemployment
The habit of fulfilling vacancies according to day to day needs
Lack of financial resources
Improve retention rates Hirecasual workers Sub contract Capital substitution

Obiertiv 1 If EVALUATION (JE)

Objectives of this section:
After studying this section, you will be able to:
1. Define what JE is
> 2. Jxplain the aims of JE i~.f
N
/ 'c^E><&K&tb c&<Sckyjk<=ntD I ^
3.. Figure out the JE process
4. Differentiate analytical and non-analytical JE
:Definition
JE is a systematic comparison done in order to determine the worth of one job relative tc : UlNSftd ATOM1 ,. .
another in order to establish interna! relativities. It provides the basis for designing an
./ cs
i)U aO
kO / CSj<5tJ8i ZO'i&C'rfSn
jfjuitable grade and pay structurergrading jobs in the structure and managing job and pay relativities. ~~~ h X
jAims of Job evaCUatixm
Job evaluation aims to:
uuuuuu) Establish the relative value or size of jobs (internal relativities) based on fair, sound
and consis^em jAd^^^ts ^ ^ / ^ J
i 55 b :>yioa<*> I j |
vvvvvv) Produce the information required to design and maintain equitable and defensible
o ia> cn TSi i<B
;*size )
p Be transparent - the basis upon wmch grades are defmed and jobs graded should be clear.
organization meets equal pay for work of equal value obligations
<Qm&@
fixTi
grade and pay structures > Provide as^b^tive as possible a basis for grading jobs within a grade structure; thus -> enabling consistent

decisions tobe made about job grading j| > Enable sound market companions with jobs or roles of equivalent complexity and
-a'i
> Ensure that the

^ o eoCb $ ScQt> 6
Steps in JoB Tvafuation
Step I: Identifying
the need for JE should not be difficult. For example, dissatisfaction
eadScs ^CB'CQIO cicJ
V ^ws..fteflecied in high turnover; work stoppages, or arguments may result from paying employees
Gening employees cooperation in the evaluatioa The job evaluator needs to talk with the employees about the positive results of the
job evaluation/
Step 3: Choose a job evaluation committee
Job evaluation committee is a committee of individuals convened for the purpose of miking job evaluations. There are two reasons
for doing this:
S caaQas
question, each of whom may have a different perspective regarding the nature of the jobs.
> If the committee is composed at least partly of employees, the committee

tSlaJ eoc / <Tl3JDy.

> The committee should include several people who are familiar with the jobs in
approach can help ensure greater employee acceptance of the job evaluation results.

wwwwww) Hay Guide Chart Profile Method

Most popular job evaluation method is the Hay Gide Chart Profile Method, which is a factor
('W'CJS>'OciOs8cC / "^'>G2L" "
comparison~icheme. It uses three oroad factors (Know-how, Problem solving and Accountability) each of which is further divided into sub-
factors, although these cannot be
y\ (
^scored individually. Definitions of each level have been produced for each sub-factor to guide evaluators and ensure consistency of
application.
,e
>/
Non-JAnaCyticaCJoB XvaCuatUm
c >30 css
Non-analytical job evaluation compares whole job to place them in a grade or a rank order 1 they are not analyzed be reference to their
elements or factors.
72. Job Classification ^ ,
, . ^il I |1 Ktl
Job classification or job grading is a non-analytical method that slots jobs into grades
, . 1 , , fi6VD UC'
by comparing the whole job with a scale in the form of a hierarchy of grade
definitions. Job classification is a simple, widely used method in which raters
. . . ... %5,ufc5fccs v< j DcubcrW
categorize jobs into groups; all the jobs in each group are of roughly the same value
for pay purposes. The groups are called classes if they contain similar jobs, or grades
J* the>- contain jobs that are similar in difficulty but otherwise different.

Jflq J ^?,aiM?,nij 11
TYES OF ANALYTICAL SCHEME
1. Point - Factor Evaluation
number of compensable factors are
identified and then the degree to which each of these factors is prevenbnn^the^job is
TSiwJes rh
ltlyfhe n
2. Factor Comparison 'gjpva6 /
This approach is a widely used method of ranking jobs according to a variety-of-skiil-aad- difficulty factors, then adding up tliese rankings
tcrarrive at an overall numerical rating for each given job. This should be limited to the following five factors, which he believed were the
Universal factors found in all jobs, ,
This is the job evaluation method in which which
<r (*
determined. The point method is apparentlythe most widely used job evaluation method.
ero\*j /
CJ
I iSJcCs(^& R5V'
o Mental requirements o Skill requirements o Physical requirements o Responsibilities o Working conditions
3Q A

I $9 i tt 111 |
i 11
I ! ?
** is . mho<l of job evaluation tat involves rukm. each job
Btaw id an otaricta, usually fit on oyerall difficulty. It is what everyone does, ifi#a8SSl2S ta'rSadve position of a job in a hierarchy and
IP
Paired comparison ranking Is a statistical technique that is used to provide a more ^
- _ , / .<01*01.10
I Sea 1 sophisticated method of whole-job ranking. The technique requires the comparison of
-cKnl 6c2e>^ egrste ' -; ~"
O each job as a whole separately with every other job. If a job is considered to be a
higher value than the one with which it is being compared, it receives two points; if it
is thought to be equally important, it receives one point; if it is regarded as less
important, no points are awarded. The scores are added for each job and rank order is
obtained.
4. Internal benchmarking 33$ ^
It simply means comparing the job under review with any internal job that is believed to be properly graded and paid, and placing the job
under consideration into the same grade as that job. The comparison is often made on a whole-job basis without
analyzingthe jobs factor by factor. 7* # '. **
-4..-A * rat h i 'i$h
Hmuiin Honoured PVanni,
the rate of gay that should be attached to it.
3^Paired Comparison Ranking
t x\ in *
$
&

<3
>N 1 1 i

fTv~> t)
The jaiKite rwairtd
Tba^ each of the tasks in turn and determines the specific qualities it required,
Nose tfeem under the general heading of skills, knowledge and experience. .When an organization seeking h will be
looking for all these qualities in the
The ^nrk environment
Study the physical and social environment in which the work carried out. Because these will influence in both quality and quantity of
work done.
'Uses o f i n f o r m a t i o n
1. Recruitment and Selection: 1 ' J0
f; _ I T
JA provides information about what the job entails and what human characteristics are
required -to perform these activities. This will use to identify selection criteria
(knowledge, skills and abilities). Then the HR specialists use this information to
ievelop selection devises. Also it use to satisfy the legal compliances
lOOS
muse of
2. Compeasatikm:
C* S4 J*,
_ __ | Glyn>S^ta)o
JA mfoniBtioo is ctucial for estimating he value of each job and its appropriate Jb
40
Compensation usually depends on skills and educational level, safety '^ArGSt hazards, deaiec of responsibility can assess through
JA. JA provides the information to deramine the relative worth of each job.
xxxxxx) Performance Appraisal: 5hca6^(fi. '
Performance Appraisal compares each employees actual performance with his / her perfcamance standards. Managers use JA to
determinedhe-job-s-specific activities and perfounaace standards. It also used to develop Performance Appraisal forms.
yyyyyy) Training and Development: gj-zfi
Firms use JA information to assess training needs and to develop and evaluate
73. Identify tasks a worker must perform.
74. Which are being performed properly and which are ' being performed
improperly. [ & Vn

Objectives of this chapter:

After staying this chapter, you will be able to:
1 Define what Human Resource Management is.
zzzzzz) Explore^aims, objectives, scope and functions of HRM*
aaaaaaa) Categorize the roles and competencies of a HR manager. , 4-. Be familiar with the approaches of HRM.
x' 5: Distinguish the models of HRM.
INTlUODU
Final purpose of an economy .or a nartion is better Standard of Living of its people. Generally standard of living means to the level of wpll
being enjoyed by^people by fulfilling their needs. Current economy in which we live is eraremelv complicated. As an economy we face
various ^rallb^s. Oufjna^bn.h^ tfcr face numherof challenges such as, jflfj Increasing population
^ Production and distribution of various things toes
JIJIJ
jflij Reducing the unemployment rate
JR :/)
Tff Prevention of diseases ( J ^
>TTT. Controlling inflation
A nation faces these challenges through the creation of organizations. A nation does not need organizations jyhich produce
goods and services that are needed by its people to meet their numerous needs. Y
An organization means formal group of two or more people" who function in an official
structure that was set purposefully to accomplish pprtai-n goal nr gnak Organizations were
created and will be created for the purpose of meeting needs and challenges of people /
nation. When these organizations stopped their activities, .the modem sophisticated society
QO$B eta 602^
will become destitute, confused, uncivilized, and even paralyzed completely.
nfj Alleviating the gap between the yupif and poor and eradication of poverty

Cherrington states, "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 labors, and solving problems that arise".
Schuler states, HRM is the use of several activities to ensure that human resources are managed effectively for the benefit of the individual,
society and the business.
Graham and Bennett states, "IIRM concerns the human side ofthe management of enterprises and employees1 relations with their firms.
P'U'RTOSE OJ JtRM I if 1
The generic purpose -of HRM is to generate and^ret^an appropriaTe and ^S^nan power / employee force dhat gives.-the
maximum i n d i v i d u a l t 0 organizationai ; effectiveness. It exists, to maintain and improv^^rotac&e* contribution of
HR to organization^ The term Appropriate means
involved. Contented refers to being satisfied and_quite happy
STRATEGIC GOALS OJtfRM
There are several Strategic goals of HRM in order to achieve the above - mentioned generic purpose. They are:
bbbbbbb) To Improve Employee Productivity
Employee productivity7 is the relationship between employee innuts and outputs. It is the ratio of employee outputs to
employee inputs within a certain period of time. The
following formula can be used to calculate the employee productivity:
.;<>/ Employee outputs (Number of units produced)
Employee productivity = jpj |||
Employee inputs (Number of employees)
motivated, comimffed and

J*trod*etion to Hum*
so
2. Employee Development involves provision of
Employee development denotes a broader- meaning. It mvoh P 1

opportunities as many as possible to accomplish employees' personal o jeettyes,

improvement of their career development or career path, and cnhan2EEt of their
competencies through the development of knowledge, skills and attitudes. -
3. To Increase Quality of Work Life (QWL) ^_
OWL is a wide and abstract concept gross meaning of which is that all the employees have the opportunity of presenting their ideas,
suggestions ana opinions before
making decisions which affect them.
G>ce!
4. To Ensure Legal CompKhnce
HR of the organization should be utilized so as to conform to various laws imposed by the government in relation to
managing people. If legal compliance does not exist survival of the organization will 'feopkrtiize owrng^o incidellc^of dive
, w_ /erse industrial
conflicts such as strikes. Sri Lankan governmem^as^imposed a set of labour laws
some of which are given below:
P Shop and Office Employees Act
<5>
3>
-rd
>\\
fe; Employment of Women, Young Persons and Children Act S Industrial Disputes Act
fe? Termination of Employment of Workmen (special provision) Act M Employees Holiday Act 3 Workmens Compensation Act ^
Wage Boards Ordinance ^ Trade Unions Ordinance
5. To Ensure Customer Compliance
Currently growing number of organizations will have to comply with various prescriptions given by -their
important customers. The organization will have to manage its employees so as to comply with this customer
requirement.

03J'ZC'TTV'ES Of 3<3JM
The following objectives have to be accomplished H order to achieve strategic goals of 1
HRM. * vSOo 6|rai>as>
3* To procure the right people at the right time for the right jobs retain the people
at the works
Without procuring right people at the right time to do the right jobs, it is not possible
<
ZS'v2^? ef <3z&sf9gal& .1
to achieve of the strategic goals mentioned above successfully. It is imperative that the organization procure right people as
employees at the right time to do the right jobs.
... <*><^>C4S'
TO retain the most appropriate employees within the organization
All the employees procured at the time of first employment may not be right
perfonners after a certain time passes. An organization that wishes to achieve success
and progress of success does not choose to keep poor or wrongjlb performers and
may have to terminate them. Of course, it will have to keep the most appropriate
employees who are excellent job perfonners within the organization until such time
that is possible (ideally until they retire)|Hgl | _
cs
0S%>0 / ScyotxO, CS-^'SQT^'IC-O
V To get and improve organizational commitment of the employees
The organizational commitment refers to the relative strength of an individuals
identification and involvement in a particular organization. When*ah employee'k;
committed to his/her organization, he/she identifies with the organization and
becomes loyal to it.
f To generate andenhance job involvement and organizational Citizenship of the employees
Job involvement is defined as the degree to which a person: choose to participate in a specific job experience, consider the
job to be a central life interest, and considers job central to his/her self-concept. Organizational citizenship refers fo the
degree to which employees are willing to engage in non-official behaviors that help the organization achieve its goals as they
love or wish its success and progress. It is an objective of HRM to generate organizational citizenship within the employees
of the organization
and promote it.
rce Management - HRM 2013

3MHOHVH
SMocCets of 3tRM
>:- ! unt>i 1 ItL . . . . 9-s&Sbcs ~=s'c.-3Sn
iny human resource practitioners. Because it provides macro perspective of HRM practices. Here are some models.
ccccccc) HARVARD MODEL OF HRM
The types of HRM policie s are depend on the organizations vision, mission, gog
objectives. But for some organizations are developing their HRM practices b\-
considennp the internal and external environment. Harvard model of HRM propounded (jj&hTbo
bv Michael Beer, Richard Walton, Ouinn Mills, P. Lawrence and Bert Spector highlights
' g%<po3o2D
the influence of environment in the HRM practices. They argqjl most of the HRM
policies are to be influenced by two significant considerations ! Situational factors:
75. Labour market conditions
76. Societal values
77. Business strategies
78. Technologies
79. Management philosophies
80. Market conditions will constrain the formation of HRM policies If St^eho^CTs mteresfsTthe stakeholders' influence the
snort-term HRM policies. They include,
q) Management employees
r) Unions
s) Government agencies
HR
assessment, promotion, termination and the like. ^
ddddddd) Reward systems: pay systems, non-monetary recognition schemes and so on ,
eeeeeee) pi influence: clarification of responsibility, authority, hierarchy a^d ^
jnc* i. miu
delegation of powers.
fffffff) Work systems: definition of work and alignment of people
" farm other
opship | nUtf t
Tel jratej stai imul 1 in I ies I
isioeranons:
^Q^sgj
f*
CO1
Further the model classifieiHRM policies and practices into four themes as followsl
<n>*q&oCobb'S
flows: Recruitment, selection and placement, promotion, appraisal and
ynttodi+ctio* to ft
other
MHH JICSOMCC MK
torafoigj
yAocCe.Cs of JCRSM
\ab<o? nt qj
_T, , j i T TT-> \ A . ,A -erc2l'30"3
Understanding models m.HRM is essential for any human resource practitioners. Because it C3CD
provides macro perspective of HRM practices. Here are some models. 1. HARVARD MODEL OF HRM
The types of HRM policies are depend on the organizations vision, mission, goals and
l%2loCSd JSB J
objectives. But for some organisations are developing their HRM practices by
Co55tao9o , \
considering the internal and external environment. Harvard model of HRM. propounded Qt&ffibo
\e Te iraiej ' siai
imu!
by Michael Beer. Richard Walton. Quinn Mills, P. Lawrence andBert Spector highlights the influence of environment in the HRM
practices. They argued most ol t e
in
policies are to be influenced by two significant considerations: fc- Situational factors:
ggggggg) Labour market conditions
hhhhhhh) Societal tralues
iiiiiii) Business strategies
jjjjjjj) Technologies
5a
iv
e) Management philosophies
f) Market conditions will constrain the formation of HRM policies ft Stakeholders interests: the stakeholders influence the sfiort-
term HRM
policies. They include,
81. Management employees
82. Unions
83. Government agencies
Further the model classifiesJTRM policies and practices into four themes as follows: efQ&so* & 3 <0^9^
1. HR flows: Recruitment, ^selection and placement, promotion, appraisal and
assessment, promotion, termination and the like
03
2. Reward systems: pay systems, non-monetary recognition schemes and so
_ , .5 1 &S>&o'6
darification of res
Pnsibility, authority, hierarchy a'Sd K
(jelegation of powers I
^rfc)
4. Work systems: definition of work and alignment of peo le

0htroductloh to Human ficgourcv /Holing*'^*1 *

The above HR practices are centered.on four C;s as described in the following.
1. Commitment: HRM policies must contribute or infusing employee eivnnulincM
kkkkkkk) Competence: HRM policies and practices will exist in such a way Bf ^1C-V 11,11111,1 develop and retain emaloyees with valuable
skills and knowledge.
lllllll) Cost effectiveness: HRM polices must be evaluated in terms of wages, henc ()1 turnover, absenteeism, strikes, benefits etc.
mmmmmmm) there must be congruence between and among various HRM policies W
well as practices in operation.
Managerial implication
The model helps HR mangers in charting HR strategy for their organization. This model offers significant insights for practices:
1. HRM policies should be defined keeping in view the environmental factors and stakeholders concern. &3>J>0k
2. It must have a goal to achieve commitment, competence development, and unity among themselves and embrace cost effective methods.
2. MICHIGAN MODEL OF HRM
This model has a harder, less humanistic touch, holding that employees are resources in
the same way^as any other business resource. They must be obtained-
1

84. As cheaply as possible

85. Used carefully
iiijDevelopedand exploited asmuchaspossible
ijgbkaxUlSig, ^k&o\tocS
This mode] stresses upon the crucial importance of the close integration of HR policies, systems and activities with business
strategy. Following are the most important HR issues to achieve such a match:
| S Selection of the most suitable people to meet business needs S Performance iij the ^arch of business objectives
^ Appransahmoni^oring performance and providing feedback to tire organization
and its employees
Rewards for appropriate performance
S Development of skills and knowledge required to meet business objectives
n
Human Resource Management HRM 2013
MI
organization. A

Job satisfaction refers to tne degree ui ^ J~~-

job being perfonned. If die employee is pleased with his/her job as it meets his/her needs and wants, he/she will likely experience a
high job satisfaction. HRM attempts .
An organization will have to spend a considerable amount of mo&ey employments of employees in terms,of pays, benefits, incentives
etc, The cost or using employees is a major component of the total business cost of the organization. Over costing or under costing is
to be avoided.
AFP'ROJICJfE.S OJR MRM
> Human Resource ApproachfHRMTs" the process of managing people at work. Human
factors like!, machine, inethpds, materiaf and money. As
human resources are unique (think, feel, behavior is complex, making decisions), they
have to be managed professionally, legally and ethically
y Management Approach: HRM is the responsibility of every manager in tlie
organization. Every manager has to do HRM functions relating to management of his
/her subordinates. : (gasoil
rj Proactive. Approach: HRM should be proactive by anticipating HR problems and
~
taking corrgfiiwie actions before the problems arises. Proactive HRM is re'donnnended'^^^g ^ to follow whenever it
impossible. Of course there may be situations where problems aiise suddenly and no time is available to anticipate (sudden
resignation^ sudden accidents, unexpected diseases etc.)
> Systems Approach: the HRM functions can%e viewed as a system of interrelated
functions, each of which affect other HRM functions directly or indirectly: and are
influenced by the external environment. HRM is a subsystem of a larger system; the
organization that is a subsystem of a larger system; the environment. HRM is an open
IdO-eoS&p
system that is affected by lie external environment that is composed of various forces
Human Resource Management - HRM^jpl3
to enhance job satisfaction of the employees. T To control cost of employees
. for the 300

which have direct ox indirect

influences on the organizations and its HRM. Forces, i.e.. labour law; trade unions, educations
system, training systems, employee markets etc. affect HRM.
four features which are: ' M:. ':a- . \
i 3..; HRM is a broad approach to managing people at work based on a-p&^osophy
of HR.
nnnnnnn) HRM is a major source of competitive advantage.
ooooooo) HRM policies co^re^within themselves and with other functional fields of
| organizational management.
ppppppp) HRM is fully integral?5with the strategy and strategic needs of the
orgamzation.
Soft Approach: manage people at work with kindness and care. Superiors are to be
Hard Approach: manage people at work objectively through personal schemes. Superiors are to be
objective and should not h&re personal preferences or relationshipsover his/her subordinates A
OTT. Of tf'RM
scope of HRM is indeed vast. All major activities in the working life of a worker - ftom ;11ie 0f his or her entry into an
organization until he or she leaves - come under the
the activities included are - HR planning, job analysis and
cic. aneet riutvivi.
i. .v
Strategic Approach: this is therecent development in the discipline of HRM. It has
^^erfco'S)
gentle and should not have force or violence over his/her subordinates.
Sixdf