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UNIT – I: MANAGEMENT

Management Definitions:
Management is the art of getting things done through and with the people in formally
organized groups.
- Herald Koontz
Management is concerned with the systematic organization of economic resources and its
task is to make these resources productive
- Peter Drucker
Management is effective utilization of human and material resources to achieve the
enterprise objective.
- W F Glueck
Management is the process of designing and maintaining an environment in which
individuals working together in groups, accomplish efficiently selected aims
- Koontz and Weihrich
Features of Management:
1. Management is a social process
2. Management is a universal concept.
3. Management is a complex concept.
4. Management is a science as we as an art.
5. Management goes with the need of situation.
6. Management integrates human skill of decision making.

Objectives of Management:
1. Management is dedicated to achieve maximum results with minimum efforts.
2. Enhancing efficiency of factors of production.
3. Attaining maximum prosperity for employer and employee.
4. Reaching social justice.

Significance of Management:
1. Management makes goals achievable through limited resource.

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2. Management makes the process easier even in a difficult situation.
3. Management ensures the continuity of the enterprise.
4. Management helps in optimum utilization of resources.
5. Management enables the organization to cope with its external and internal
environment.
6. Management focuses on group efforts.
7. Management makes organization cost effective and built effective and
efficient manpower.
8. Management is the key to the economic growth.

Challenges of Management:
1. Increasing opportunities.
2. The changing life style and values.
3. Increasing life expectancy
4. Growing Expectations from the member of the organization and the society.
5. Unmatched interest among members of the society.
6. Fallen business ethics.
7. Decreasing financial and non financial resources
8. Changing technology.
9. Bottleneck in the basic infrastructure.
10. Threats on environment.

Functions of Management:

1. Planning:
a. Identifying the goals to achieve.
b. Exploring the actions to achieve set goals.
c. Evaluation of the actions taken.
d. Selection of the best action that can reach goal feasibly.

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Elements of planning:
• Forecast
• Objectives
• Policies
• Strategies
• Programs
• Procedures
• Schedules
• Budgets

2. Organizing
a. Grouping similar tasks
b. Assignment of task to different departments
c. Creation of job position
d. Establishing fair relationship
e. Re organized grouped tasks

3. Staffing
a. Recruitment
b. Selection
c. Placement
d. Training and Development
e. Performance Appraisal
f. Promotion and compensation
g. Career planning.

4. Directing:
a. Leading
b. Motivating
c. Communicating
d. Coordinating

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5. Controlling:
a. Measurement of employee performance
b. Compare actual performance with standard
c. Taking follow up actions

According to Luther Gullick we can state management functions as “POSDCORB”;


where P = Planning, O = Organizing, S = Staffing, D= Directing, CO =Coordinating, R =
Reporting, B = Budgeting.

Element of Scientific management process:


• Developing a scientific method for each operation replacing opinions
• Determine accurately in a scientific way the correct time and method for
each job
• Develop a suitable organization to make the workers responsible.
• Select and train the workers
• Convince the management that scientific approach is better over others.

Merits:
• Improved productivity
• Rational approach to measures task and process
• Improvement in working methods like plant design etc.
• Price rate wage system (incentives)
• Change in working condition
• Introduction to work study

De-merits:
• Ignores functional areas of management (Marketing, finance etc)
• Ignores individual creativity
• Stress to compete with machine tools

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• Over specialization
• Insufficient mobility

II. Henry Fayol: Denoted six types of activities to be performed by any industrial
organization. i.e.: (a) Technical (b) Commercial (c) Financial (d) Security (e) Accounting
(f) Managerial

Principles of Management
Fourteen principles given by Fayol:
1. Division of work.
2. Authority
3. Discipline
4. Unity of command
5. Unity of direction
6. Imposing group interest over individual interest.
7. Remuneration
8. Centralization of authority
9. Scalar chain
10. Keeping Order
11. Equity with employee
12. Stability of job
13. Initiative
14. Espirit De corps (Unity in strength)

All functions of management are intersecting at one or more areas thus for manager it is
always necessary to keep coordination among various functions.
Interlinked:

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ORGANIZING STAFFING

PLANNING

CONTROLING DIRECTING

Inter dependent:

PLANNING FEEDBACK

ORGANIZING

Managerial
Efforts Solutions
problem STAFFING

DIRECTING

CONTROLING

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Production Management:
Functions:
 Determination of Quantity & Quality
 Production planning
 Quality control
 Time & motion study
 Determination of method of production

Financial Management:
Functions:
 Economics & financial forecast
 Analsizing the future needs
 Accounting & auditing
 Cost control
 Budget control
 Data control
 Identification of capital control

Development Management:
Functions:
 Providing planning for further development
 Research oriented
 Technical & industrial survey
 Innovation

Distribution Management:
Functions:
 Production marketing
 Marketing research
 Advertising

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 Arranging the sale & distribution
 Export marketing research & export promotion

Purchasing management:
Functions:
 Making arrangement for the purchase of material
 Storage & control of material
 Distribution of goods to store where needed

Transport Management:
Functions:
 Collection of material from outside to company
 Dispatch the goods to the organization
 Facilitates the movement
 Frame rules for transportation

Office management:
Functions:
 Documentation
 Clerical Works

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HUMAN RESOURCE MANAGEMENT (H R M)

Definition 1 – Integration
“HRM is a series of integrated decisions that form the employment relationships; their
quality contributes to the ability of the organizations and the employees to achieve their
objectives.”

Definition 2 – Influencing
“HRM is concerned with the people dimensions in management. Since every
organization is made up of people, acquiring their services, developing their skills,
motivating them to higher levels of performance and ensuring that they continue to
maintain their commitment to the organization are essential to achieving organizational
objectives. This is true, regardless of the type of the organization – government, business,
education, health, recreational, or social action.”

Definition 3 – Applicability
“HRM planning, organizing, directing and controlling of the procurement, development,
compensation, integration, maintenance and separation of human resources to the end that
individual, organizational and social objective are accomplished.”

MEANING OF HRM: -

HRM is management function that helps managers to recruit, select, train and develop
members for an organization. Obviously HRM is concerned with the people’s dimensions
in organizations. HRM refers to set of programs, functions, and activities designed and
carried out

Core elements of HRM:

• People: Organizations mean people. It is the people who staff and manage
organizations.

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• Management: HRM involves application of management functions and principles
for acquisitioning, developing, maintaining and remunerating employees in
organizations.
• Integration & Consistency: Decisions regarding people must be integrated and
consistent.
• Influence: Decisions must influence the effectiveness of organization resulting into
betterment of services to customers in the form of high quality products supplied at
reasonable cost.
• Applicability: HRM principles are applicable to business as well as non-business
organizations too, such as education, health, recreation and the like.

OBJECTIVES OF HRM: -

1. Societal Objectives: To be ethically and socially responsible to the needs and


challenges of the society while minimizing the negative impact of such demands upon
the organization.
2. Organizational Objectives: To recognize the role of HRM in bringing about
organizational effectiveness. HRM is only means to achieve to assist the organization
with its primary objectives.
3. Functional Objectives: To maintain department’s contribution and level of
services at a level appropriate to the organization’s needs.
4. Personal Objectives: To assist employees in achieving their personal goals, at
least in so far as these goals enhance the individual’s contribution to the organization.
This is necessary to maintain employee performance and satisfaction for the purpose
of maintaining, retaining and motivating the employees in the organization.

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SCOPE OF HRM: -
From Entry to the Exit of an employee in the organization scope of HRM can be
described based on the following activities of HRM. Based on these activities we can
summarize the scope of HRM into 7 different categories as mentioned below after the
activities. Let’s check out both of them.

HRM Activities –
1. HR Planning
2. Job Analysis
3. Job Design
4. Recruitment & Selection
5. Orientation & Placement
6. Training & Development
7. Performance Appraisals
8. Job Evaluation
9. Employee and Executive Remuneration
10. Motivation
11. Communication
12. Welfare
13. Safety & Health
14. Industrial Relations

7 Categories of Scope of HRM


1. Introduction to HRM
2. Employee Hiring
3. Employee and Executive Remuneration
4. Employee Motivation
5. Employee Maintenance
6. Industrial Relations
7. Prospects of HRM

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ROLE OF HRM

1. Advisory Role: HRM advises management on the solutions to any problems


affecting people, personnel policies and procedures.
 Personnel Policies: Organization Structure, Social Responsibility,
Employment Terms & Conditions, Compensation, Career & Promotion,
Training & Development and Industrial Relations.
 Personnel Procedures: Relating to manpower planning procedures,
recruitment and selection procedures, and employment procedures, training
procedures, management development procedures, performance appraisal
procedures, compensation procedures, industrial relations procedures and
health and safety procedures.

2. Functional Role: The personnel function interprets and helps to communicate


personnel policies. It provides guidance to managers, which will ensure that
agreed policies are implemented.

3. Service Role: Personnel function provides services that need to be carried out by
full time specialists. These services constitute the main activities carried out by
personnel departments and involve the implementation of the policies and
procedures described above.

Role of HR Managers (Today)

1. Humanitarian Role: Reminding moral and ethical obligations to employees


2. Counselor: Consultations to employees about marital, health, mental, physical and
career problems.
3. Mediator: Playing the role of a peacemaker during disputes, conflicts between
individuals and groups and management.

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4. Spokesman: To represent of the company because he has better overall picture of his
company’s operations.
5. Problem Solver: Solving problems of overall human resource management and long-
term organizational planning.
6. Change Agent: Introducing and implementing institutional changes and installing
organizational development programs
7. Management of Manpower Resources: Broadly concerned with leadership both in
the group and individual relationships and labor-management relations.

Role of HR Managers (Future)

1. Protection and enhancement of human and non-human resources


2. Finding the best way of using people to accomplish organizational goals
3. Improve organizational performance
4. Integration of techniques of information technology with the human resources
5. Utilizing behavioral scientists in the best way for his people
6. Meeting challenges of increasing organizational effectiveness
7. Managing diverse workforce

FUNCTIONS OF HRM ALONG WITH OBJECTIVES

HRM Objectives Supporting HRM Functions


Social Objectives (3) Legal Compliance
Benefits
Union Management Relations
Organizational Objectives (7) Human Resource Planning
Employee Relations
Recruitment & Selection
Training & Development
Performance Appraisals
Placement & Orientation

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Employee Assessment
Functional Objectives (3) Performance Appraisals
Placement & Orientation
Employee Assessment
Personal Objectives (5) Training & Development
Performance Appraisals
Placement & Orientation
Compensation
Employee Assessment

Managerial Functions of HRM

1. Planning: Plan and research about wage trends, labor market conditions, union
demands and other personnel benefits. Forecasting manpower needs etc.
2. Organizing: Organizing manpower and material resources by creating authorities and
responsibilities for the achievement of organizational goals and objectives.
3. Staffing: Recruitment & Selection
4. Directing: Issuance of orders and instructions, providing guidance and motivation of
employees to follow the path laid-down.
5. Controlling: Regulating personnel activities and policies according to plans.
Observations and comparisons of deviations

Operational Functions of HRM:

Procurement: Planning, Recruitment and Selection, Induction and Placement


1. Development: Training, Development, Career planning and counseling.
2. Compensation: Wage and Salary determination and administration
3. Integration: Integration of human resources with organization.
4. Maintenance: Sustaining and improving working conditions, retentions, employee
communication

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5. Separations: Managing separations caused by resignations, terminations, lay offs,
death, medical sickness etc.

CHALLENGES OF HRM IN INDIAN ECONOMY or CHALLENGES


OF MODERN MANAGEMENT

1. Globalization: - Growing internationalization of business has its impact on HRM


in terms of problems of unfamiliar laws, languages, practices, competitions, attitudes,
management styles, work ethics and more. HR managers have a challenge to deal
with more functions, more heterogeneous functions and more involvement in
employee’s personal life.

Corporate Re-organizations: - Reorganization relates to mergers and acquisitions,


joint ventures, take over, internal restructuring of organizations. In these
situations, it is difficult to imagine circumstances that pose a greater challenge
for HRM than reorganizations itself. It is a challenge to manage employees’
anxiety, uncertainties, insecurities and fears during these dynamic trends.

New Organizational forms: - The basic challenge to HRM comes from the
changing character of competitions. The competition is not between individual
firms but between constellations of firm. Major companies are operating through
a complex web of strategic alliances, forgings with local suppliers, etc. These
relationships give birth to completely new forms of organizational structure,
which highly depend upon a regular exchange of people and information. The
challenge for HRM is to cope with the implications of these newly networked
relations more and more, in place of more comfortable hierarchical relationships
that existed within the organizations for ages in the past.

2. Changing Demographics of Workforce: - Changes in workforce are largely


reflected by dual career couples, large chunk of young blood between age old

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superannuating employees, working mothers, more educated and aware workers etc.
These dynamic workforces have their own implications for HR managers and from
HRM point of view is a true challenge to handle.

3. Changed employee expectations: - With the changes in workforce


demographics, employee expectations and attitudes have also transformed.
Traditional allurements like job security, house, and remunerations are not much
attractive today, rather employees are demanding empowerment and equality with
management. Hence it is a challenge for HRM to redesign the profile of workers, and
discover new methods of hiring, training, remunerating and motivating employees.

New Industrial Relations Approach: - In today’s dynamic world, even unions


have understood that strikes and militancy have lost their relevance and unions
are greatly affected by it. The trade union membership has fallen drastically
worldwide and the future of labor movement is in danger. The challenge before
HRM is to adopt a proactive industrial relations approach which should enable
HR specialist to look into challenges unfolding in the future and to be prepared
to convert them into opportunities.

Renewed People Focus: - The need of today’s world and business is the people’s
approach. The structure, strategy, systems approach which worked in post war
era is no more relevant in today’s economic environment which is characterized
by over capacities and intense competition. The challenge of HR manager is to
focus on people and make them justifiable and sustainable.

4. Managing the Managers: - Managers are unique tribe in any society, they
believe they are class apart. They demand decision-making, bossism, and operational
freedom. However in the post liberalization era, freedom given to managers is grossly
misused to get rid of talented and hard working juniors. The challenge of HRM is
how to manage this tribe? How to make them realize that the freedom given to them

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is to enable them make quick decisions in the interest of the organization and not to
resort to witch-hunting.

5. Weaker Society interests: - Another challenge for HRM is to protect the


interest of weaker sections of society. The dramatic increase of women workers,
minorities and other backward communities in the workforce has resulted in the need
for organizations to reexamine their policies, practices and values. In the name of
global competition, productivity and quality the interests of the society around should
not be sacrificed. It is a challenge of today’s HR managers to see that these weaker
sections are neither denied their rightful jobs nor are discriminated against while in
service.

6. Contribution to the success of organizations: - The biggest challenge to


an HR manager is to make all employees contribute to the success of the organization
in an ethical and socially responsible way. Because society’s well being to a large
extent depends on its organizations.

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UNIT – II: HUMAN RESOURCE PLANNING (HRP)

Definition 1: - Need, Availability, Supply=Demand


“HRP includes estimation of how many qualified people are necessary to carry out the
assigned activities, how many people will be available, and what, if anything, must be
done to ensure personnel supply equals personnel demand at the appropriate point in the
future.”

Definition 2: - Right numbers, Capability, Organization Objectives


“HRP is a Process, by which an organization ensures that it has the right number and kind
of people at the right place, at the right time, capable of effectively and efficiently
completing those tasks that will help the organization achieve its overall objectives.”

Definition 3: - Translation of objectives into HR numbers


“HRP is a process of translating organizational objectives and plans into the number of
workers needed to meet those objectives.”

MEANING / PURPOSE OF HRP

• In simple words HRP is understood as the process of forecasting an organization’s


future demand for and supply of the right type of people in the right numbers.
• It is only after HRP is done, that the company can initiate and plan the recruitment
and selection process.
• HRP is a sub-system in the total organizational planning.
• HRP facilitates the realization of the company’s objectives by providing right type
and right number of personnel.
• HRP is important because without a clear-cut manpower planning, estimation of a
organization’s human resource need is reduced to mere guesswork.

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NEED & IMPORTANCE OF HRP

Forecast future personnel needs: To avoid the situations of surplus or deficiency


of manpower in future, it is important to plan your manpower in advance. For this
purpose a proper forecasting of futures business needs helps you to ascertain our future
manpower needs. From this angle, HRP plays an important role to predict the right size of
manpower in the organization.
Cope with change: HRP enables an enterprise to cope with changes in competitive
forces, markets, technology, products and government regulations. Such changes generate
changes in job content, skills demands and number of human resources required.

Creating highly talented personnel: Since jobs are becoming highly intellectual
and incumbents getting vastly professionalized, HRP helps prevent shortages of
labor caused by attritions. Further technology changes would further upgrade or
degrade jobs and create manpower shortages. In these situations only accurate
human resource planning can help to meet the resource requirements. Further
HRP is also an answer to the problems of succession planning.
Protection of weaker sections : A well-conceived personnel planning would also
help to protect the interests of the SC/ST, physically handicapped, children of socially
oppressed and backward classes who enjoy a certain percentage of employments
notwithstanding the constitutional provisions of equal opportunity for all.
International strategies: International expansion strategies largely depend upon
effective HRP. With growing trends towards global operations, the need for HRP further
becomes more important as the need to integrate HRP more closely into the organization
keeps growing. This is also because the process of meeting staffing needs from foreign
countries grows in a complex manner.

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Foundation of personnel functions: HRP provides essential information for
designing and implementing personnel functions such as recruitment, selection,
personnel development, training and development etc.
Increasing investments in HR: Another importance is the investment that an
organization makes in human capital. It is important that employees are used effectively
throughout their careers. Because human assets can increase the organization value
tremendously as opposed to physical assets
Resistance to change & move: The growing resistance towards change and move,
self evaluation, loyalty and dedication making it more difficult to assume that
organization can move its employees everywhere. Here HRP becomes very important and
needs the resources to be planned carefully.
Other benefits:
Following are the other benefits of HRP.
 Upper management has a better view of HR dimensions of business
 Management can anticipate imbalances before they become unmanageable and
expensive.
 More time is provided to locate talent
 Better opportunities exists to include women and minorities in future growth
plans
 Better planning of assignments to develop managers
 Major and successful demands on local labor markets can be made.

HRP SYSTEM

HRP System as such includes following elements or sets for planning.

Overall Organization Objectives


Business Environment
Forecasting Manpower Needs
Assessing Manpower Supply

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Matching Manpower Demand-Supply factors
Based on these elements we can draw “HRP System Architecture” as under.

Business Environment

Organization Objectives & Goals

Manpower Forecast Manpower Supply Assessment

Manpower Programming

Manpower Implementation

Control & Manpower


Evaluation

Surplus Manpower Shortage of Manpower

HRP PROCESS

Organizational Objectives & Policies: -


The objectives of HR plan must be derived from organizational objectives like specific
requirements of numbers and characteristics of employees etc. HRP needs to sub-serve

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the overall objectives by ensuring availability and utilization of human resources.
Specific policies need to be formulated to address the following decisions.
• Internal Hiring or External Hiring?
• Training & Development plans
• Union Constraints
• Job enrichment issues
• Rightsizing organization
• Automation needs
• Continuous availability of adaptive and flexible workforce

Manpower Demand Forecasting: -


It is the process of estimating the future quantity and quality of people required.
The basis should be annual budget and long term corporate plans
Demand forecasting should be based on following factors.

Internal Factors: -

• Budget constraints
• Production levels
• New products and services
• Organizational structure
• Employee separation

External Factors: -

• Competition environment
• Economic climate
• Laws and regulatory bodies
• Technology changes
• Social Factors

Reasons for Manpower Demand Forecasting: -

• To quantify jobs

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• To determine the Staff-mix
• To assess staffing levels and avoid unnecessary costs
• Prevent shortages of people
• Monitor compliances of legal requirements with regards to reservations

Manpower Forecasting Techniques: -

Management Judgment: In this techniques managers across all the levels decide the
forecast on their own judgment. This can be bottom-up or top-down approach and
judgments can be reviewed across departments, divisions and top management can
conclude on final numbers of manpower required.
Ration-Trend Analysis: This technique involves studying past ratios, and forecasting
future ratios making some allowance for changes in the organization or its methods.
Work Study Techniques: It is possible when work measurement to calculate the length
of operations and the amount of manpower required. The starting point can be production
budget, followed by standard hours, output per hour; man-hours required etc could be
computed.
Delphi Techniques: This technique solicits estimates from a group of experts, and HRP
experts normally act as intermediaries, summarizes various responses and report the
findings back to experts.
Flow Models: This technique involves the flow of following components. Determine the
time required, Establish categories, Count annual movements, Estimate probable
transitions. Here demand is a function of replacing those who make a transition.

Manpower Supply Forecasting: -

This process measures the number of people likely to be available from within and
outside the organization after making allowance for absenteeism, internal movements and
promotions, wastages, changes in hours and other conditions of work.

Reasons for Manpower Supply Forecasting:

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• Clarify Staff-mixes exist in the future
• Assess existing staff levels
• Prevent shortages
• Monitor expected future compliance of legal requirements of job reservations

Supply Analysis covers:

Existing Human Resources: HR Audits facilitate analysis of existing employees with


skills and abilities. The existing employees can be categorized as skills inventories (non-
managers) and managerial inventories (managers)
Skill inventory would include the following;
• Personal data
• Skills
• Special Qualifications
• Salary
• Job History
• Company data
• Capabilities
• Special preferences

Management inventories would include the following

• Work History
• Strengths
• Weaknesses
• Promotion Potential
• Career Goals
• Personal Data
• Number and Types of Subordinates
• Total Budget Managed
• Previous Management Duties

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Internal Supply: -

Internal supply techniques help to assess the following


• Inflows and outflows (transfers, promotions, separations, resignations, retirements
etc.)
• Turnover rate (No. Of separations p.a. / Average employees p.a. X 100)
• Conditions of work (working hours, overtime, etc.)
• Absenteeism (leaves, absences)
• Productivity level
• Job movements (Job rotations or cross functional utilizations)

External Supply: -
External sources are required for following reasons
• New blood,
• New experiences
• Replenish lost personnel
• Organizational growth
• Diversification
External sources can be colleges and universities, consultants, competitors and
unsolicited applications.

HR Plan Implementation: -

A series of action programs are initiated as a part of HR plan implementation as under.

Recruitment & Selection: Employees are hired against the job vacancies. Based on
the manpower demand and supply forecasts made, hiring of employees is initiated based
on supply forecasts. For this internal and external sources of manpower are utilized. A
formal selection board is established to interview and select the best of the candidates for
the required vacancies. Finally the selected employees also need to be placed on proper

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jobs. Here some companies recruit employees for specific jobs while others recruit fresh
trainees in large number and train them for future manpower needs.
Training and Development: The training and development program is charted out
to cover the number of trainees, existing staff etc. The programs also cover the
identification of resource personnel for conducting development program, frequency of
training and development programs and budget allocation.
Retraining and Redeployment; New skills are to be imparted to existing staff
when technology changes or product line discontinued. Employees need to be redeployed
to other departments where they could be gainfully employed.
Retention Plan: Retention plans cover actions, which would reduce avoidable
separations of employees. Using compensation plans, performance appraisals, avoiding
conflicts, providing green pastures etc, can do this.
Downsizing plans: Where there is surplus workforce trimming of labor force will be
necessary. For these identifying and managing redundancies is very essential.
Managerial Succession Planning; Methods of managerial succession plans may
vary. Most successful programs seem to include top managements involvement and
commitment, high-level review of succession plans, formal performance assessment and
potential assessment and written development plans for individuals. A typical succession
planning involves following activities.
• Analysis of demand for managers and professionals
• Audit of existing executives
• Projection of future likely supply from internal and external sources
• Individual career path planning
• Career counseling
• Accelerated promotions
• Performance related training and development
• Strategic recruitment

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Control & Evaluation of HRP: -

HR Plan must also clarify responsibilities for control and establish reporting procedures,
which will enable achievements to be monitored against the plan. The HR Plan should
include budgets, targets and standards. These plans may simply be reports on the numbers
employed, recruited against targets etc.

Steps in HR Planning

Forecasting

HR Planning requires that we gather data on the Organizational goals objectives. One
should understand where the Organization wants to go and how it wants to get to that
point. The needs of the employees are derived from the corporate objectives of the
Organization. They stern from shorter and medium term objectives and their conversion
into action budgets (eg) establishing a new branch in New Dehli by January 2006 and
staff it with a Branch Manager (6,000 USD, Secretary 1,550 USD, and two clerical staff
800 USD per month. Therefore, the HR Plan should have a mechanism to express
planned Company strategies into planned results and budgets so that these can be
converted in terms of numbers and skills required.

Inventory

After knowing what human resources are required in the Organization, the next step is to
take stock of the current employees in the Organization. The HR inventory should not
only relate to data concerning numbers, ages, and locations, but also an analysis of
individuals and skills. Skills inventory provides valid information on professional and
technical skills and other qualifications provided in the firm. It reveals what skills are
immediately available when compared to the forecasted HR requirements
Audit

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We do not live in a static World and our HR resources can transform dramatically. HR
inventory calls for collection of data; the HR audit requires systematic examination and
analysis of this data. The Audit looks at what had occurred in the past and at present in
terms of labor turn over, age and sex groupings, training costs and absence. Based on this
information, one can then be able to predict what will happen to HR in the future in the
Organization.

HR Resource Plan

Here we look at career Planning and HR plans. People are the greatest asserts in any
Organization. The Organization is at liberty to develop its staff at full pace in the way
ideally suited to their individual capacities. The main reason is that the Organization’s
objectives should be aligned as near as possible, or matched, in order to give optimum
scope for the developing potential of its employees. Therefore, career planning may also
be referred to as HR Planning or succession planning.

The questions that should concern us are:

a) Are we making use of the available talent we have in the Organization, and
have we an enough provision for the future?
b) Are employees satisfied with our care of their growth in terms of advancing
their career?

Assignment of individuals to planned future posts enables the administration to ensure


that these individuals may be suitably prepared in advance.

Actioning of Plan

There are three fundamentals necessary for this first step.

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1) Know where you are going.

2) There must be acceptance and backing from top management for the planning.

3) There must be knowledge of the available resources (i.e) financial, physical and
human (Management and technical).

Once in action, the HR Plans become corporate plans. Having been made and concurred
with top management, the plans become a part of the company’s long-range plan. Failure
to achieve the HR Plans due to cost, or lack of knowledge, may be serious constraints on
the long-range plan. Below is an illustration of how HR Plan is linked to corporate Plan.

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RECRUITMENT/SELECTION:
RECRUITMENT:
Recruitment is the process of locating and encouraging potential applicants to apply for
existing or anticipated job openings. It is a linking function, joining together those with
jobs to fill and those who seeking jobs. It is that selecting right person, for right job at
right time. It is process of finding suitable candidates
THE LEGAL ENVIRONMENT:
The different legislative policies governing child labour, night shift work, bonded labour,
contract labour, reservation, “sons of the soil” have brought the legal environment to be a
major item to be looked into carefully by all companies intending to recruit people for
various positions.
The Factories Act, 1948: The Act prohibits the employment of women (night work,
underground work, carrying heavy loads, etc.) and child labour (below 14 years of age) in
certain jobs.
The Apprentices Act, 1941: The Act provides for a machinery to lay down syllabi and
specify period of training, mutual obligations of apprentices and employees, etc. The
responsibility for engagement of apprentice lies solely with the employer. The
apprentice, after serving a contractual term of training, can be taken on regular rolls. The
Act, as amended in 1986, provides for revised rates of compensation during the
apprenticeship period and for failure on the part of the employer to execute the terms of
the contract.
The Employment Exchange Act, 1959: The Act requires all employers to notify the
vacancies arising in their establishments to prescribed employment exchange before they

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are filled. The Act covers all establishments in Public Sector and non-agricultural
establishment employing 25 or more workers in the private sector.
The Contract Labour Act, 1970: The Act is applicable to every establishment
(contractor) employing 20 or more persons. It tries to regulate the employment
conditions of contract labour in certain establishments and also provides for the abolition
of contract labour in certain circumstances.
Bonded Labour System (Abolition) Act, 1976: The Act provides for the abolition of
bonded labour (system of forced labour to liquidate debts payable to parties who are bent
on exploiting the vulnerability of the victim) or his family members.
The Child Labour Act, 1986: The Act prohibits the employment of children below 14
years of age in certain employments. This has become a serious issue in India recently
when German firms refused to accept carpets exported from Uttar Pradesh, objecting to
the employment of child labour in the carpet industry.

SOURCES/TYPES OF RECURITMENT:
The sources/types of recruitment may be broadly divided into two categories:
Internal sources: Persons who are already working in an organization constitute the
internal sources
External sources: External sources lie outside the organization.

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RECRUITMENT

INTERNAL EXTERNAL
SOURCES SOURCES

PROMOTION & DIRECT INDIRECT


JOB POSTING
TRANSFER METHOD METHOD

EMPLOYEE CAMPUS
ADVERTISEMENT
REFERRALS RECRUITMENT

THIRD PARTY
METHOD

PRIVATE
EMPLOYMENT
EMPLOYMENT
EXCHANGE
SEARCH FIRMS

GATE HIRING
AND WALK-INS
CONTRACTORS

INTERNET
RECRUITING

INTERNAL SOURCES:
Promotion and Transfers:
Promotion involves movement of an employee from a lower level position to a
higher level position accompanied by changes in duties, responsibilities, status and value.
A Transfer involves lateral movement within the same grade, from one job to
another. It may lead to changes in duties and responsibilities, working conditions, etc.,
but not necessarily salary.
Job posting:
Job posting is another way of hiring from within. In this method, the organization
publicizes job openings on bulletin boards, electronic media and similar outlets.
Employee Referrals:
Employee referral means using personal contacts to locate job opportunities. It is
a recommendation from a current employee regarding a job applicant. The logic behind
employee referral is that “it takes one to know one”. Employees working in the

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organization, in this case, are encouraged to recommend the names of their friends
working in other organizations for a possible vacancy in the near future.

EXTERNAL SOURCES:
DIRECT METHOD:
Campus Recruitment:
It is a method of recruitment by visiting and participating in college campuses and
their placement centre. Here the recruiters visit reputed educational institutions such as
IITs, IIMs, colleges and universities with a view to pick up job aspirants having requisite
technical or professional skills.

INDIRECT METHOD:
Advertisements:
These include advertisements in newspapers; trade, professional and technical
journals, radio and television; etc.
THIRD PARTY METHODS:
Private employment search firms:
A search firms are a private employment agency that maintains computerizes lists
of qualifies applicants and supplies these to employers willing to hire people from the list
for a fee.

Employment Exchange:
As a statutory requirements, companies are also expected to notify (where the
Employment Exchange Act,1959, applies) their vacancies through the respective
Employment Exchanges, created all over India for helping unemployed youth, displaced
persons, ex-military personnel, physically handicapped, etc.

Unsolicited Applicants/Walk-ins:
Companies generally receive unsolicited applicants from job seekers at various
points of time. The number of such applicants depends on economic conditions, the
image of the company and the job seeker’s perception of the types of jobs that might be

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available etc. Such applicants are generally kept in a data bank and whenever a suitable
vacancy arises, the company would intimate the candidate to apply through a formal
channel.
Internet Recruiting:
In recent years most companies have found it useful to develop their own website
and list job opening on it. The website offers a fast, convenient and cost, effective means
for job applicants to submit their resume through the internet.

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SELECTION:
Selection is the process of picking individuals who have relevant qualifications to
fill jobs in an organization. The basic purpose is to choose the individual who can most
successfully perform the job, from the pool of qualifies candidates.
PROCESS OF SELECTION:
Step 1: Reception
Step 2: Screening Interview
Step 3: Application Blank
Step 4: Selection Tests
Step 5: Selection Interview
Step 6: Medical Examination
Step 7: Reference Checks
Step 8: Hiring Decision
Reception:
A company is known by the people it employs. In order to attract people with
talent, skills and experience, a company has to create a favorable impression on the
applicant’s right from the stage of reception.
Screening Interview:
A preliminary interview is generally planned by large organizations to cut the
costs of selection by allowing only eligible candidates to go through the further stages in
selection.
Application Blank:
Application blank or form is one of the most common methods used to collect
information on various aspects of the applicant’s academic, social, demographic, work-
related background and references.
Selection Tests:
Another important decision in the selection process involves applicant testing and
the kinds of tests to use. A test is a standardized, objective measure of a person’s
behaviour, performance or attitude. Some of the commonly used employment tests may
be stated as follows:
 Intelligence tests

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 Aptitude tests
 Personality tests
Selection Interview:
Interview is the oral examination of candidates for employment. This is the most
essential step in the selection process. In this step the interviewer tries to obtain and
synthesise information about the abilities of the interviewee and the requirements of the
job.
Types of Interview:
 Structured interview
 Non- structured interview
 Situational interview
 Behavioral interview
 Panel interview

Medical Examination:
Certain jobs require physical qualities like clear vision, acute hearing, unusually
high stamina, tolerance of arduous working conditions, clear tone of voice, etc. Medical
examination reveals whether or not a candidate possesses these qualities.
Reference Checks:
Once the interview and medical examination of the candidate is over, the
personnel department will engage in checking references. Candidates are required to give
the names of two or three references in their application forms.
Hiring Decision:
The Line Manager concerned has to make the final decision now- whether to
select or reject a candidate after soliciting the required information through different
techniques discussed earlier.

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JOB ANALYSIS

JOB:

“Job is a ‘group of tasks to be performed everyday.”

JOB ANALYSIS

Definition 1: (Process of Collecting Information)

“Job Analysis is a process of studying and collecting information relating to operations


and responsibilities of a specific job. The immediate products of this analysis are ‘Job
Description’ and ‘Job Specifications’.”

Definition 2: (Systematic Exploration of Activities)

“Job Analysis is a systematic exploration of activities within a job. It is a basic technical


procedure that is used to define duties and responsibilities and accountabilities of the
job.”

Definition 3: (Identifying Job Requirements)

“Job is a collection of tasks that can be performed by a single employee to contribute to


the production of some product or service, provided by the organization. Each job has
certain ability requirements (as well as certain rewards) associated with it. Job Analysis is
a process used to identify these requirements.”

MEANING OF JOB ANALYSIS

Job Analysis is a process of collecting information about a job. The process of job
analysis results into two sets of data.

• Job Description
• Job Specification
As a result Job analysis involves the following steps in a logical order.

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Steps of Job Analysis

1. Collecting and recording job information


2. Checking the job information for accuracy
3. Writing job description based on information collected to determine the skills,
knowledge, abilities and activities required
4. Updating and upgrading this information

PURPOSE OF JOB ANALYSIS: -

• Human Resource Planning (HRP): - The numbers and types of personnel are
determined by the jobs, which need to be staffed. Job related information in the form
of Job Analysis serves this purpose or use.
• Recruitment & Selection: - Recruitment precedes job analysis. It helps HR to
locate places to obtain employees. It also helps in better continuity and planning in
staffing in the organization. Also selecting a good candidate also requires detailed
job information. Because the objective of hiring is to match the right candidate for
right job
• Training & Development: Training and development programs can be
designed depending upon job requirement and analysis. Selection of trainees is also
facilitated by job analysis.
• Job Evaluation: Job evaluation means determination of relative worth of each
job for the purpose of establishing wage and salary credentials. This is possible with
the help of job description and specifications; i.e. Job Analysis.
• Remuneration: Job analysis also helps in determining wage and salary for all
jobs.
• Performance Appraisal: Performance appraisal, assessments, rewards,
promotions, is facilitated by job analysis by way of fixing standards of job
performance.

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• Personnel Information: Job analysis is vital for building personnel information
systems and processes for improving administrative efficiency and providing
decision support.
• Safety & Health: Job Analysis helps to uncover hazardous conditions and
unhealthy environmental factors so that corrective measures can be taken to
minimize and avoid possibility of human injury.

PROCESS OF JOB ANALYSIS

Process 1: Strategic Choices

Process 2: Collecting Information

Process 3: Processing Information

Process 4: Job Description

Process 5: Job Specification

Strategic Choices: -

Extent of involvement of employees: Extent of employee involvement is a


debatable point. Too much involvement may result in bias in favor of a job in terms of
inflating duties and responsibilities. Too less involvement leads to suspicion about the
motives behind the job. Besides it may also lead to inaccurate information. Hence extent
of involvement depends on the needs of the organization and employee.

Level of details of job analysis: The nature of jobs being analyzed determines the
level of details in job analysis. If the purpose were for training programs or assessing the
worth of job, levels of details required would be great. If the purpose is just clarification
the details required would be less.

Timing and frequency of Job Analysis: When do you do Job Analysis?

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• Initial stage, for new organization
• New Job is created
• Changes in Job, Technology and Processes
• Deficiencies and Disparities in Job
• New compensation plan is introduced
• Updating and upgrading is required.
Past-oriented and future-oriented Job Analysis: For rapidly changing
organization more future oriented approach would be desired. For traditional
organizations past oriented analysis would be required. However more future oriented
analysis may be derived based on past data.

Sources of Job Data: For job analysis number of human and non-human sources is
available besides jobholder himself. Following can be sources of data available for job
analysis.

Non-Human Sources Human Sources


Existing job descriptions and specifications Job Analysis

Equipment maintenance records Job Incumbents

Equipment design blueprints Supervisors

Architectural blueprints of work area Job Experts

Films of employee working

Training manuals and materials

Magazines, newspapers, literatures

Collecting Information: -

Information collection is done on the basis of following 3 parameters

Types of Data for Job Analysis:

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• Work Activities (Tasks details)
• Interface with other jobs and equipments (Procedures, Behaviors, Movements)
• Machines, Tools, Equipments and Work Aids (List, Materials, Products,
Services)
• Job Context (Physical, Social, Organizational, Work schedule)
• Personal Requirement (Skills, Education, Training, Experience)

Methods of Data Collection:

• Observation
• Interview
• Questionnaires
• Checklists
• Technical Conference
• Diary Methods

Who to Collect Data?

• Trained Job Analysts


• Supervisors
• Job Incumbents

Processing Information: -

Once the job information is collected it needs to be processed, so that it would be useful
in various personnel functions. Specifically job related data would be useful to prepare
job description and specifications, which form the next two processes of job analysis.

METHODS OF DATA COLLECTION:

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Observation: Job Analyst carefully observes the jobholder and records the information
in terms of what, how the job is done and how much time is taken. It is a simple and
accurate method, but is also time consuming and inapplicable to jobs involving mental
activities and unobservable job cycles. The analysts must be fully trained observers.

Interview: In this analyst interviews the jobholders, his supervisors to elicit


information. It can be Structured or Unstructured Interview. Again this is also a time
consuming method in case of large organizations. Plus there is also a problem of bias.

Questionnaires: A standard questionnaire is given to jobholder about his job, which


can be filled and given back to supervisors or job analysts. The questionnaire may contain
job title, jobholder’s name, managers name, reporting staff, description of job, list of
main duties and responsibilities etc. It is useful in large number of staffs and less time
consuming. However the accuracy of information leaves much to be desired.

Checklists: It is more similar to questionnaire but the response sheet contains fewer
subjective judgments and tends to be either yes or no variety. Preparation of checklist is a
challenging job itself.

Technical Conference: Here a conference of supervisors is used. The analysts


initiate the discussions providing job details. However this method lacks accuracy.

Diary Methods: In this method jobholder is required to note down their activities day
by day in their diary. If done faithfully this technique is accurate and eliminates errors
caused by memory lapses etc.

Quantitative Methods of Job Data Collection: -

Position Analysis Questionnaire (PAQ): -

PAQ is a highly specialized instrument for analyzing any job in terms of employee
activities. The PAQ contains 194 job elements on which job is created depending on the
degree to which an element is present. These elements are grouped together into 6
categories.

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1. U – Usability / Use of Job
2. I – Importance of Job
3. T – Time
4. P – Possibility of Occurrence of Job
5. A – Applicability of Job
6. S – Specialty Tasks of Job

The primary advantage of PAQ is that it can be used to analyze almost every job. This
analysis provides a comparison of a specific job with other job classifications,
particularly for selection and remuneration purposes. However PAQ needs to be
completed by trained job analysts only rather than incumbents.

Management Position Description Questionnaire (MPDQ): -

Highly structured questionnaire, containing 208 elements relating to managerial


responsibilities, demand, restrictions and other position characteristics These 208
elements are grouped under 13 categories.

PAQ and MPDQ yield standardized information about the worker and the
job.

Functional Job Analysis: -

It is a worker oriented job analytical approach, which attempts to describe


the whole person on the job.

BARRIERS OF JOB ANALYSIS

• Support from Top Management


• Single means and source, reliance on single method rather than combination

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• No Training or Motivation to Jobholders
• Activities and Data may be Distorted
JOB DESCRIPTION

“Job Description implies objective listing of the job title, tasks, and responsibilities
involved in a job.”

Job description is a word picture in writing of the duties, responsibilities and


organizational relationships that constitutes a given job or position. It defines continuing
work assignment and a scope of responsibility that are sufficiently different from those of
the other jobs to warrant a specific title. Job description is a broad statement of purpose,
scope, duties and responsibilities of a particular job.

Contents of Job Description

1. Job Identification
2. Job Summary
3. Job Duties and Responsibilities
4. Supervision specification
5. Machines, tools and materials
6. Work conditions
7. Work hazards
8. Definition of unusual terms

Format of Job Description

• Job Title
• Region/Location
• Department
• Reporting to (Operational and Managerial)
• Objective

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• Principal duties and responsibilities

Features of Good Job Description

1. Up to date
2. Proper Job Title
3. Comprehensive Job Summary
4. Clear duties and responsibilities
5. Easily understandable
6. State job requirements
7. Specify reporting relationships
8. Showcase degrees of difficulties
9. Indicates opportunities for career development
10. Offer bird’s-eye-view of primary responsibilities

JOB SPECIFICATIONS

“Job Specification involves listing of employee qualifications, skills and abilities required
to meet the job description. These specifications are needed to do job satisfactorily.”

In other words it is a statement of minimum and acceptable human qualities necessary to


perform job properly. Job specifications seeks to indicate what kind of persons may be
expected to most closely approximate the role requirements and thus it is basically
concerned with matters of selection, screening and placement and is intended to serve as
a guide in hiring.

Contents of Job Specifications

1. Physical Characteristics

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2. Psychological characteristics
3. Personal characteristics
4. Responsibilities
5. Demographic features

Further the job specifications can be divided into three broad categories

Essential Attributes

Desirable Attributes

Contra-Indicators – indicators hampering the success of job

JOB EVALUATION

Job Evaluation involves determination of relative worth of each job for the purpose of
establishing wage and salary differentials. Relative worth is determined mainly on the
basis of job description and job specification only. Job Evaluation helps to determine
wages and salary grades for all jobs. Employees need to be compensated depending on
the grades of jobs which they occupy. Remuneration also involves fringe benefits, bonus
and other benefits. Clearly remuneration must be based on the relative worth of each job.
Ignoring this basic principle results in inequitable compensation. A perception of inequity
is a sure way of de-motivating an employee.

Job evaluation is a process of analyzing and assessing the various jobs systematically to
ascertain their relative worth in an organization.

Jobs are evaluated on the basis of content, placed in order of importance. This establishes
Job Hierarchies, which is a purpose of fixation of satisfactory wage differentials among
various jobs.

Jobs are ranked (not jobholders)

Scope of Job Evaluation

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The job evaluation is done for the purpose of wage and salary differentials, demand for
and supply of labor, ability to pay, industrial parity, collective bargaining and the like.

Process of Job Evaluation:

1. Defining objectives of job evaluation


 Identify jobs to be evaluated (Benchmark jobs or all jobs)
 Who should evaluate job?
 What training do the evaluators need?
 How much time involved?
 What are the criteria for evaluation?
 Methods of evaluation to be used
2. Wage Survey
3. Employee Classification
4. Establishing wage and salary differentials.

Methods of Job Evaluation

Analytical Methods

• Point Ranking Methods: Different factors are selected for different jobs with
accompanying differences in degrees and points.
• Factor Comparison Method: The important factors are selected which can be
assumed to be common to all jobs. Each of these factors are then ranked with other
jobs. The worth of the job is then taken by adding together all the point values.

Non-Analytical Methods

• Ranking Method: Jobs are ranked on the basis of its title or contents. Job is not
broken down into factors etc.

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• Job Grading Method: It is based on the job as a whole and the differentiation is
made on the basis of job classes and grades. In this method it is important to form a
grade description to cover discernible differences in skills, responsibilities and other
characteristics.

Pitfalls of Job Evaluation:

• Encourages employees on how to advance in position when there may be limited


opportunities for enhancement as a result of downsizing.
• It promotes internal focus instead of customer orientation
• Not suitable for forward looking organizations, which has trimmed multiple job titles
into two or three broad jobs.

JOB DESIGN
The Logical Sequence to Job Analysis is Job Design.

Definition 1: Integration of work, rewards and qualification

“Job Design integrates work content (tasks, functions, relationships), the rewards and
qualifications required including skills, knowledge and abilities for each job in a way that
meets the needs of employees and the organization.”

Steps in Job Design: -

1. Specification of Individual Tasks


2. Specification of Methods of Tasks Performance
3. Combination of Tasks into Specific Jobs to be assigned to individuals

Factors affecting Job Design: -

Organizational factors:

• Characteristics of Tasks (Planning, Execution and Controlling of Task)

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• Work Flow (Process Sequences)
• Ergonomics (Time & Motion Study)
• Work Practices (Set of ways of performing tasks)
Environmental Factors:

• Employee Abilities and Availability


• Social and Cultural Expectations
Behavioral Elements:

• Feedback
• Autonomy
• Use of Abilities
• Variety

TECHNIQUES OF JOB DESIGN: -

Work Simplification: Job is simplified or specialized. The job is broken down into
small parts and each part is assigned to an individual. To be more specific, work
simplification is mechanical pacing of work, repetitive work processes, working only on
one part of a product, predetermining tools and techniques, restricting interaction
amongst employees, few skills requirement. Work simplification is used when jobs are
not specialized.

Job Rotation: When incumbents become bore of routine jobs, job rotation is an
answer to it. Here jobs remain unchanged, but the incumbents shift from one job to
another. On the positive side, it increases the intrinsic reward potential of a job because of
different skills and abilities needed to perform it. Workers become more competent in
several jobs, know variety of jobs and improve the self-image, personal growth. Further
the worker becomes more valuable to the organization. Periodic job changes can improve
interdepartmental cooperation. On the negative side, it may not be much enthusiastic or

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efficiency may not be more. Besides jobs may not improve the relationships between
task, while activities and objectives remain unchanged. Further training costs also rise
and it can also de-motivate intelligent and ambitious trainees who seek specific
responsibilities in their chosen specialties.

Job Enlargement: It means expanding the number of tasks, or duties assigned to a


given job. Job enlargement is naturally opposite to work simplification. Adding more
tasks or duties to a job does not mean that new skills and abilities are needed. There is
only horizontal expansion. It is with same skills taking additional responsibilities like
extending working hours etc. Job enlargement may involve breaking up of the existing
work system and redesigning a new work system. For this employees also need to be
trained to adjust to the new system. Job enlargement is said to contribute to employee
motivation but the claim is not validated in practice.

Benefits of Job Enlargement:

1. Task Variety
2. Meaningful Work Modules
3. Full Ability Utilization
4. Worker Paced Control
5. Meaningful Performance Feedback

Disadvantages of Job Enlargement

1. High Training Costs


2. Redesigning existing work system required
3. Productivity may not increase necessarily
4. Workload increases
5. Unions demand pay–hike
6. Jobs may still remain boring and routine

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Job Enrichment: Job enrichment is improvisation of both tasks efficiency and human
satisfaction by building into people’s jobs, quite specifically, greater scope for personal
achievement and recognition, more challenging and responsible work and more
opportunity for individual advancement and growth. An enriched job will have more
responsibility, more autonomy (vertical enrichment), more variety of tasks (horizontal
enrichment) and more growth opportunities. The employee does more planning and
controlling with less supervision but more self-evaluation. In other words, transferring
some of the supervisor’s tasks to the employee and making his job enriched.

Benefits of Job enrichment

1. It benefits employee and organization in terms of increased motivation,


performance, satisfaction, job involvement and reduced absenteeism.
2. Additional features in job meet certain psychological needs of jobholders due
to skill variety, identity, significance of job etc.
3. It also adds to employee self-esteem and self-control.
4. Job enrichment gives status to jobholder and acts as a strong satisfier in one’s
life.
5. Job enrichment stimulates improvements in other areas of organization.
6. Empowerment is a by-product of job enrichment. It means passing on more
authority and responsibility.

Demerits of Job Enrichment

1. Lazy employees may not be able to take additional responsibilities and power.
It won’t fetch the desired results for an employee who is not attentive towards
his job.

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2. Unions resistance, increased cost of design and implementation and limited
research on long term effect of job enrichment are some of the other demerits.
3. Job enrichment itself might not be a great motivator since it is job-intrinsic
factor. As per the two-factor motivation theory, job enrichment is not enough.
It should be preceded by hygienic factors etc.
4. Job enrichment assumes that workers want more responsibilities and those
workers who are motivated by less responsibility, job enrichment surely de-
motivates them
5. Workers participation may affect the enrichment process itself.
6. Change is difficult to implement and is always resisted as job enrichment
brings in a changes the responsibility.

Autonomous of Self-Directed Teams: Empowerment results in self-directed


work teams. A self –directed team is an intact group of employees responsible for whole
work segment, they work together, handle day-to-day problems, plan and control, and are
highly effective teams.

High Performance Work Design: Improving performance in an environment


where positive and demanding goals are set leads to high performance work design. It
starts from the principle of autonomous groups working and developing an approach,
which enables group to work effectively together in situations where the rate of
innovation is very high. Operational flexibility is important and there is the need for
employees to gain and apply new skills quickly with minimum supervision. However due
to bureaucracy high performance work design does not work.

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INDUCTION/ORIENTATION:
Induction or orientation is the task of introducing the new employees to the
organization and its policies, procedure and rules. A typical orientation programme may
last a day or less in most organizations. During this time, the new employee is provided
with information about the company, its history, its current position, the benefits for
which he is eligible, leave rules, rest periods, etc.

Objectives of Induction:
Induction serves the following purposes:
Remove fears: A newcomer steps into an organization as a stranger. He is new to the
people, workplace and work environment. He is not very sure about what he is supposed
to do. Induction helps a new employee overcome such fears and perform better on the
job.
Creates a good impression:
Another purpose of induction is to make the newcomer feel at home and develop a sense
of pride in the organization.
Acts as a valuable source of information: Induction serves as a valuable source of
information to new recruits. It classifies many things through employee
manuals/handbook.
INDUCTION PROGRAMME STEPS:
The HR department may initiate the following steps while organizing the
induction programme:

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 Welcome to the organization
 Explain about the company
 Show the location/department where the new recruit will work
 Give the company’s manual to the new recruit.
 Provide details about various work groups and the extent of unionism within
the company.
 Give details about pay, benefits, holidays, leave, etc. Emphasise the
importance of attendance or punctuality.
 Explain about future training opportunities and career prospects.
 Clarify doubts, by encouraging the employee to come out with questions.
 Take the employee on a guided tour of buildings, facilities, etc. Hand him over
to this supervisor.

PLACEMENT:
After a candidate has been selected, he should be placed on a suitable job.
Placement is the actual posting of an employee to a specific job. It involves assigning a
specific rank and responsibility to an employee.

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UNIT – III TRAINING AND DEVELOPMENT

TRAINING & DEVELOPMENT

Definition of Training & Development: Improve performance

“Training & Development is any attempt to improve current or future employee


performance by increasing an employee’s ability to perform through learning, usually by
changing the employee’s attitude or increasing his or her skills and knowledge.”

MEANING OF TRAINING & DEVELOPMENT: -

The need for Training and Development is determined by the employee’s performance
deficiency, computed as follows.

Training & Development Need = Standard Performance – Actual Performance

We can make a distinction among Training, Development and Education.

Distinction between Training and Education

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Training Education
Application oriented Theoretical Orientation

Job experience Classroom learning

Specific Task in mind Covers general concepts

Narrow Perspective Has Broad Perspective

Training is Job Specific Education is no bar

Training: Training refers to the process of imparting specific skills. An employee


undergoing training is presumed to have had some formal education. No training program
is complete without an element of education. Hence we can say that Training is offered to
operatives.

Education: It is a theoretical learning in classrooms. The purpose of education is to teach


theoretical concepts and develop a sense of reasoning and judgment. That any training
and development program must contain an element of education is well understood by
HR Specialists. Any such program has university professors as resource persons to
enlighten participants about theoretical knowledge of the topics proposed to discuss. In
fact organizations depute or encourage employees to do courses on part time basis. CEOs
are known to attend refresher courses conducted by business schools. The education is
more important for managers and executives rather than low cadre workers. Anyways
education is common to all employees, their grades notwithstanding.

Development: Development means those learning opportunities designed to help


employees to grow. Development is not primarily skills oriented. Instead it provides the
general knowledge and attitudes, which will be helpful to employers in higher positions.
Efforts towards development often depend on personal drive and ambition. Development
activities such as those supplied by management development programs are generally
voluntary in nature. Development provides knowledge about business environment,

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management principles and techniques, human relations, specific industry analysis and
the like is useful for better management of a company.

Objectives of (MDP) Management Development Programs OR

Advantages of Development

1. Making them
• Self-starters
• Committed
• Motivated
• Result oriented
• Sensitive to environment
• Understand use of power
2. Creating self awareness
3. Develop inspiring leadership styles
4. Instill zest for excellence
5. Teach them about effective communication
6. To subordinate their functional loyalties to the interests of the organization

Difference between Training and Development

Training Development
Training is skills focused Development is creating learning abilities
Training is presumed to have a formal Development is not education dependent
education
Training needs depend upon lack or Development depends on personal drive
deficiency in skills and ambition
Trainings are generally need based Development is voluntary

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Training is a narrower concept focused on Development is a broader concept focused
job related skills on personality development
Training may not include development Development includes training wherever
necessary
Training is aimed at improving job related Development aims at overall personal
efficiency and performance effectiveness including job efficiencies

What are the Training Inputs?

• Skills
• Education
• Development
• Ethics
• Problem Solving Skills
• Decision Making
• Attitudinal Changes

Importance of Training & Development

• Helps remove performance deficiencies in employees


• Greater stability, flexibility and capacity for growth in an organization
• Accidents, scraps and damages to machinery can be avoided
• Serves as effective source of recruitment
• It is an investment in HR with a promise of better returns in future
• Reduces dissatisfaction, absenteeism, complaints and turnover of employees

Need of Training

Individual level

• Diagnosis of present problems and future challenges


• Improve individual performance or fix up performance deficiency

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• Improve skills or knowledge or any other problem
• To anticipate future skill-needs and prepare employee to handle more challenging
tasks
• To prepare for possible job transfers
Group level

• To face any change in organization strategy at group levels


• When new products and services are launched
• To avoid scraps and accident rates

Identification of Training Needs (Methods)

Individual Training Needs Identification

1. Performance Appraisals
2. Interviews
3. Questionnaires
4. Attitude Surveys
5. Training Progress Feedback
6. Work Sampling
7. Rating Scales

Group Level Training Needs Identification

1. Organizational Goals and Objectives


2. Personnel / Skills Inventories
3. Organizational Climate Indices
4. Efficiency Indices
5. Exit Interviews
6. MBO / Work Planning Systems
7. Quality Circles
8. Customer Satisfaction Survey

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9. Analysis of Current and Anticipated Changes

Benefits of Training Needs Identification

1. Trainers can be informed about the broader needs in advance


2. Trainers Perception Gaps can be reduced between employees and their supervisors
3. Trainers can design course inputs closer to the specific needs of the participants
4. Diagnosis of causes of performance deficiencies can be done

Methods of Training

On the Job Trainings: These methods are generally applied on the workplace while an
employee is actually working. Following are the on-the-job methods.

Advantages of On-the-Job Training:

It is directly in the context of job

It is often informal

It is most effective because it is learning by experience

It is least expensive

Trainees are highly motivated

It is free from artificial classroom situations

Disadvantages of On-the-Job Training:

Trainer may not be experienced enough to train

It is not systematically organized

Poorly conducted programs may create safety hazards

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On the Job Training Methods

1. Job Rotation: In this method, usually employees are put on different jobs turn by
turn where they learn all sorts of jobs of various departments. The objective is to
give a comprehensive awareness about the jobs of different departments.
Advantage – employee gets to know how his own and other departments also
function. Interdepartmental coordination can be improved, instills team spirit.
Disadvantage – It may become too much for an employee to learn. It is not
focused on employees own job responsibilities. Employees basic talents may
remain under utilized.
2. Job Coaching: An experienced employee can give a verbal presentation to
explain the nitty-gritty’s of the job.
3. Job Instruction: It may consist an instruction or directions to perform a
particular task or a function. It may be in the form of orders or steps to perform a
task.
4. Apprenticeships: Generally fresh graduates are put under the experienced
employee to learn the functions of job.
5. Internships and Assistantships: An intern or an assistant are recruited to
perform a specific time-bound jobs or projects during their education. It may
consist a part of their educational courses.

Off the Job Trainings: These are used away from work places while employees are not
working like classroom trainings, seminars etc. Following are the off-the-job methods;

Advantages of Off-the-Job Training:

Trainers are usually experienced enough to train

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It is systematically organized

Efficiently created programs may add lot of value

Disadvantages of Off-the-Job Training:

It is not directly in the context of job

It is often formal

It is not based on experience

It is least expensive

Trainees may not be highly motivated

It is more artificial in nature

Off the Job Training Methods

1. Classroom Lectures: It is a verbal lecture presentation by an instructor to a large


audience. Advantage – It can be used for large groups. Cost per trainee is low.
Disadvantages – Low popularity. It is not learning by practice. It is One-way
communication. No authentic feedback mechanism. Likely to boredom.
2. Audio-Visual: It can be done using Films, Televisions, Video, and Presentations
etc. Advantages – Wide range of realistic examples, quality control possible,
Disadvantages – One-way communication, No feedback mechanism. No
flexibility for different audience.
3. Simulation: creating a real life situation for decision-making and understanding
the actual job conditions give it. Following are some of the simulation methods of
trainings
a. Case Studies: It is a written description of an actual situation and trainer is
supposed to analyze and give his conclusions in writing. The cases are generally
based on actual organizational situations. It is an ideal method to promote decision-
making abilities within the constraints of limited data.
b. Role Plays: Here trainees assume the part of the specific personalities in a case
study and enact it in front of the audience. It is more emotional orientation and

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improves interpersonal relationships. Attitudinal change is another result. These are
generally used in MDP.
c. Sensitivity Trainings: This is more from the point of view of behavioral
assessment, under different circumstances how an individual will behave himself
and towards others. There is no preplanned agenda and it is instant. Advantages –
increased ability to empathize, listening skills, openness, tolerance, and conflict
resolution skills. Disadvantage – Participants may resort to their old habits after the
training.
4. Programmed Instructions: Provided in the form of blocks either in book or a
teaching machine using questions and Feedbacks without the intervention of
trainer. Advantages – Self paced, trainees can progress at their own speed, strong
motivation for repeat learning, and material is structured and self-contained.
Disadvantages – Scope for learning is less; cost of books, manuals or machinery
is expensive.
5. Computer Aided Instructions: It is extension of PI method, by using computers.
Advantages – Provides accountabilities, modifiable to technological innovations,
flexible to time. Disadvantages – High cost.
6. Laboratory Training

Barriers to Effective Training:

1. Lack of Management commitment


2. Inadequate Training budget
3. Education degrees lack skills
4. Large scale poaching of trained staff
5. Non-coordination from workers due to downsizing trends
6. Employers and B Schools operating distantly
7. Unions influence

How To Make Training Effective?

1. Management Commitment

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2. Training & Business Strategies Integration
3. Comprehensive and Systematic Approach
4. Continuous and Ongoing approach
5. Promoting Learning as Fundamental Value
6. Creations of effective training evaluation system

EVALUATION OF TRAINING
A desirable characteristic of all training programmers is built-in-provision for its
evaluation to find out whether the objectives of training activity or programmers are
achieved or not.
Notable dimensions of Training Evaluation:
1) Evaluation of Contextual factors: Training effectiveness depends on not only what
happens during the training, but also on what happens before the actual training and what
happens after the training has formally ended. Thus, there is need for both pre-training
and post-training evaluation of contextual factors.
2) Evaluation of training inputs: This involves the evaluation of training curriculum, its
sequencing, trainer’s abilities, facilities, aids and resources used.
3) Evaluation of training process: The climate of training organization, the relationship
and interaction between participants and trainees, attitudes and approaches of the trainers,
training methods used, and involvement of the trainers in learning are some of the
important elements of the training process, which need to be evaluated.
4) Evolution of training outcomes: It involves measuring the results of the training in
terms of what has been achieved on account of training programme. Pay-offs from
training is intangible, slow and not clearly identifiable with the specific activity.

In evaluation of outcomes, four categories of outcomes can be measured:

i) Reaction: Evaluation of trainee’s reaction to the programme

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ii) Learning: Evaluation of what trainees have learnt
iii) Behavior: Evaluation of change in the behavior of trainee due to training
iv) Results: Evaluation of results achieved due to training in various areas such as
production, human resource utilization, performance tests, general job and organization
environment and cost-value relationship

INDIAN SOCIETY FOR TRAINING AND DEVELOPMENT (ISTD)

The indian society for training & development (istd), established in april 1970, is a
national level professional & non-profit society registered under the societies
registration act, 1860. it has a large membership of individuals and institutions
involved in the area of training and hrd from government, public and private sector
organisations & enterprises; educational and training institutions and other
professional bodies.

the society is affiliated to the international federation of training and development


organisations (iftdo), usa and asian regional training and development organisations
(artdo), manila.

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istd organises training programs, all over the country both at chapter and national levels.
the programs cover selected areas of hrd with special emphasis on training of
trainers, training goals & objectives and training tools & technologies. a very large
number of public and private sector organisations, training institutions central and
state government participate in these programs, some of which have been held in
collaboration with planning commission, bureau of public enterprises and the
training division of department of personnel, government of india.
the society publishes a quarterly journal, “indian journal of training and development”
istd diploma in training & development is a correspondence course of 18 month’s
duration (one year of course work followed by internship of six month’s duration. the
diploma is recognised by the government of india for recruitment to superior posts.

ISTD is managed by a National Council, headed by a President at the apex level and
Managing Committees headed by a Chairman at the Chapter level. They are assisted by
other office bearers and functional committees in a wide spectrum of activities.

OBJECTIVES:

STD seeks to bring together individuals from Government, industry, education and such
other institutions to evolve and develop improved and effective HRD/Training practices
tools and technologies. The objectives of the Society are to:

• Promote a better and more effective utilization of human resources through


education, training and development in all spheres of Govt., agriculture, industry,
commerce, education infrastructure , services & such other sectors;
• Provide leadership and promote study and application of professional principles
and practices in the field of training and development in order to assist

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managements and administrations to develop and maintain an effective
organization;
• Promote an understanding of training and development as a basic responsibility of
management and administration and to assist the organizations in planning and
implementing their programmers for manpower development with a view to
maintaining their effectiveness and facilitating their adaptability to changing
problems and challenges;
• Stimulate thought and efforts for the dissemination, exchange and furtherance of
information, knowledge, research, techniques, materials, aids, skills and attitudes
in the field of training & development;
• Sponsor appropriate research and/or publish necessary literature, books, journals,
newsletters, pamphlets, and reports;
• Encourage or assist in the promotion of professional school and other institutions
allied with the objective of the Society and other professional degrees, diplomas
and certificates;
• To institute and establish scholarships, grants, awards, and prizes to encourage
study and research in the field of training & development;
• Establish, organize or assist in setting up professional institutions, libraries,
laboratories and exhibitions;
• Conduct or to assist in conducting conferences, meetings, lectures/seminars,
workshops or other programs;
• Co-operate with institutions, bodies and agencies having similar objectives, for
the promotion and development of the training & development movement in the
country;
• Maintain constructive liaison or join any association, organization or to seek or
grant affiliation to any other body having similar objectives in India or abroad;
• Constitute, support and assist in the establishment of Chapters of the Society in
various parts of India in order to make its activities more effective and to
spearhead the training & development movement throughout the country by
giving full scope for the development of local ingenuity and talents;

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• Foster a feeling of fellowship among its members and to promote understanding
and goodwill among all persons, working in the field of training & development.

STD has a network of 45 chapters located in major cities all over the country with the
National Headquarters at New Delhi. You can view the details about the individual
chapter by accessing the concerned chapter's website given below:

ISTD Chapters

NORTH (11 EAST (8) WEST (15) SOUTH (11)


) Berhampur Ahmedabad Bangalore
Allahabad www.istdblr.com
Bhubaneswar Aurangabad
Alwar Chennai
Durgapur Bhopal
www.istdchennai.org
Chandigarh Guwahati Bhilai
Coimbatore
Chittorgarh Jamshedpur Goa
Hyderabad
Delhi Kolkata Hinganghat
Kochi
Dehradun www.istdkolkata.org Indore
www.istdkochi.org
Greater Ranchi Islampur
Neyveli
Noida Sambalpur Jabalpur
Pondicherry
Jaipur
Mumbai
Sahupuram
Kota
Nagpur
Trivandrum
Lucknow
Nashik istdtvpm.org
Udaipur
Pune
Tiruchirapalli
Silvassa
Visakhapatnam
Vadodara

Services offered:

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• Assistance for organization of need based in company
training & development programmers.

• Assistance in identification and selection of resource persons.

• Consultancy in designing and conducting training


programmers.

• Assistance in the study and analysis of organizational problems with special


reference to training inputs.

• Consultancy in HRD structure, systems, policies and processes.

• Opportunities for collaboration in HRD/Training

NATIONAL INSTITUTE OF PERSONNEL MANAGEMENT (NIPM)

History:

NIPM, the short form of the National Institute of Personnel Management, is the only all-
India body of professional managers engaged in the profession of personnel management,
industrial relations, labour welfare, training and HRD in the country. It came into
existence in March 1980 as a result of merger of two professional institutions, namely the
Indian Institute of Personnel Management (IIPM) established in 1948 in Kolkata and the

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National Institute of Labour Management (NILM) established in1950 in Bombay, now
Mumbai.
With its National Office at Kolkata, NIPM has a total membership of more than about
11,000 spread over 52 chapters all over the country.
NIPM is a non-profit making body devoted to the development of skill and expertise of
the professionals engaged in the management of human resources through regular lecture,
meetings, seminars, training courses, conferences and publication in its chapters all over
the country.

OBJECTIVES:

NIPM firmly believes in the dignity of human beings at work and their relationship
within the enterprise. Keeping this in mind, NIPM is striving :
 To spread the message of Professional Management in Human Resource
Management and Development
 To promote an awareness of Professional Personnel Management at all levels in
different organizations.
 To organize activities and programmers at both the national and chapter level
with a view to upgrade the skills and professional standards of its members.
 The main objectives of the Institute as enshrined in its constitution are:
 To spread the knowledge on the approach, principles, practices, techniques and
methods regarding personnel management, industrial management, industrial
relations, labour & social welfare and industrial jurisprudence in all their bearings.
 To serve as a forum for exchange of ideas and experiences and collection and
dissemination of information on management in general and personnel management,
industrial relations, human resources development and labour & social welfare, in
particular.
 To sponsor, promote, encourage, conduct and contribute to the study and
research and impart instructions in any subject touching any or all aspects of
personnel management, industrial relations, labour and social welfare, industrial

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legislation and industrial jurisprudence, including their social, sociological, political
and economic background and context.
 To promote and safeguard the status and the interests of personnel
management, industrial relations and labour welfare at work places and the interests
of those engaged therein.
 To represent the Institute and its interests before Local, State and Central
authorities and other organizations, commissions, boards, enquiry bodies etc., in
India and abroad.

PROFESSIONALISATION OF HRD
Objectives
By the end of the chapter you should be able to:
• identify the characteristics of a profession and differentiate it from an occupation;
• define professionalism and sate the prerequisites of a profession;
• recall the highlights of the developments and history of HRD in India;
• make an assessment of HRD as a profession in India and identify the gaps; and
• State the steps needed to make HRD a profession.

Professional Bodies: National HRD Network


An association is a group of individuals joined together for furthering a few common
objectives decided on mutual understanding of these individuals. A Professional
Association is created for the professionals of that field and exists only because of the
interest of such professionals; the growth of such Associations comes only with the active
support and involvement of professionals in their respective fields. A Professional
Association gives identity to its member, provides opportunity to interact with his seniors
and learn from the experiences of other organizations, helps to develop communication
and other skills to orient him/her towards a more professional job and also provides
opportunity to seek better jobs, matching his liking and background.

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In other words, being a member of a Professional Association gives the individual ample
opportunity to develop more competencies and strengthen the profession.
The major Objectives of the Network are:
• Help to stimulate positive forces for humanizing systems and organization and
enabling people to contribute their best.
• Build a rigorous, scientific storehouse of knowledge and skills for HRD
Practitioners. Disseminate HRD Knowledge and skills among HRD Practitioners.
• Break new ground for the HRD Development.
• Develop & maintain Standards of Professionals Act as a clearinghouse for all
referrals related to HRD activities in the country.
The HRD Network publishes a quarterly HRD Newsletter, and reports of research on
HRD; conducts Annual Conferences to share experience, and present new concepts on
HRD; and seminars and workshops on various aspects of HRD for CEOs, Line
Managers, Office bearers of Union etc. the Network Chapters conducts meetings and
workshops on regular basis on issues of contemporary importance.
Since 1989, The National HRD Network gives annual awards for organisations and
individuals that have done outstanding work in the field of HRD. It has also launched
a scheme of research grants for those interested in pursuing research.

INTRODUCTION: 30 YEARS OF HRD IN INDIA


It is more nearly three decades the term Human Resource Development became popular
in the country. It was in 1975 a decision to start a dedicated Department to promote
Human Resources Development was initiated in India at Larsen & Toubro Limited.
Pareek and Rao (1975) outlined a philosophy for the new HRD system. They outlined 14
principles to be kept in mind in designing the HRD System. These principles deal with
both the purpose of HRD systems and the process of their implementation. Some of these
principles include:
1) HRD systems should help the company to increase enabling capabilities. The
capabilities outlined in their report include: development of human resources in all

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aspects, organizational health, improvements in problem solving capabilities, diagnostic
skills, capabilities to support all the other systems in the company etc.;
2) HRD systems should help individuals to recognize their potential and help them to
contribute their best various organizational roles they are expected to perform;
3) HRD systems should help maximize individual autonomy through increased
responsibility;
4) HRD systems should facilitate decentralization through delegation and shared
responsibility;
5) HRD systems should facilitate participative decision making
6) HRD system should attempt to balance the current organizational culture along with
changing the culture;
7) There should be a continuous review and renewal of the function.
After L&T accepted these recommendations in full and started implementing the State
Bank of India the single largest Indian Bank and its Associates have decided to use the
Integrated HRD systems approach and decided to create new HRD Department. Since
then, by mid eighties a large number of organizations in India have established HRD
Departments.
By mid eighties HR has become an accepted role and most organisations have changed
their personnel, training and other related functions to HRD. Some have differentiated
Human Resource Development from Human Resources Department and some did not.
However, HRD has come to mean new expectations, new body of knowledge and new
function. The establishment of Center for HRD at XLRI; the formation of the National
HRD Network in 1985; the starting of the Academy of HRD in 1990; Starting of Diploma
Programs in HRD; starting of Symbiosis Center for Management and HRD; starting of
the Doctoral Program in HRD jointly by AHRD and XLRI etc. are highlights of HRD in
India. (See Appendix 1 for some historical highlights, appendix 2 for publications of
NHRDN and appendix 3 for publications of Academy of HRD). All these have added to
the expectations of CEOs, line managers and HR managers from HRD Managers.
The Indian Society of Training and Development and NIPM did not lose time in focusing
on HRD in their conferences. Although this diluted the use of Human Resources
Development and contributed to the confusion between HRD and HR, expectations from

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HRD continued to grow. Today almost all Managers dealing with Personnel, Training,
Social Work, Welfare, Administration etc. functions call themselves HRD Managers or
Facilitators. In some of the IT companies those who deal with Visas and arrange
transportation for employees are also called as HRD staff (meaning Human Resources
Department staff or even Human resources Development staff). On one hand we have
specialized courses including a Doctoral Programs in
Human Resource Development and on the other hand even unqualified undergraduates
are projected as HRD Managers. This has created a lot of confusion in the field as the
number carrying HR titles in their designations multiplied overnight without
corresponding multiplication of HR skills and HRD competencies. Lay people and the
public could not differentiate the fine distinctions between Human Resource
Development Professional and HR Professional as both carried HRD designation. In one
case it meant Human Resources Development Manager and in the other it meant Manager
Human Resources Department and in both cases referred to as HRD Manager and
becomes difficult to differentiate. This confusion is shared by other countries does not
solve the issue but reaffirms the need to remove the confusion. A number of questions
need to be answered to sort out the confusion and to establish the need for HRD practice
is based on theoretically sound principles and deserves to be considered as a profession.
These include:
• Is it possible for anyone to perform HRD roles?
• Does HRD require specialized training and preparation? And knowledge?
• Is it a separate profession with its body of knowledge? Or an Occupation?
• What is in it that qualifies it to be a profession? What is the worldwide scenario
on this issue?
These are some of the questions that bother practitioners and academics alike. To answer
some of these questions an attempt is made in this paper to review the current situation of
HRD as a profession. First this chapter presents a summary of appropriate literature on
Professions and occupations. Much of this comes from Sociologists. This is followed by a
review of the situation of HRD in India. In the light of the criteria available to classify
any discipline or a set of activities as leading to profession, the issue of HRD as
Profession is examined. An attempt is made in this article also document as much of the

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sate of HRD in India as possible. Before we go on to assess the professional status of
HRD in India, we may look at the way a profession comes into existence and the
prerequisites to be called a profession.

WHAT IS A PROFESSION?
The Webster dictionary defines a profession as “an open declaration or avowal of a belief
or opinion” (Merriam-Webster, 1971), and professions are distinct from simple collection
of people doing similar work or other non professional groups by their efforts to define
expected norms of ethical behaviour among their members. For the members of a
profession, “ethical standards are central to understanding what constitutes proper
conduct as well as expectations of virtues professionals should possess” (Gellerman,
Frankel, and Ladenson, 1990).
A profession, and thus a professional behaviour is defined by a high degree of specialized
knowledge, social responsibility, self –monitoring of ethical behaviours through codes of
ethics and a system of intrinsic and extrinsic rewards (Barber, 1963).

PROFESSION AND OCCUPATION


Webster’s defines Occupation as “that which occupies or engages the time and attention;
the principal business of one’s life.” An occupation always metamorphosis’s into a
profession if it is well practiced and developed by the practitioners. An occupation can be
thought as falling somewhere along a continuum of professionalism, the continuum being
made of common traits in definitions of profession. An occupation acquires status of
profession when it incorporates all the core characteristics of profession. The significant
question to ask about the occupation is not whether or not they are professions, but to
what extent they exhibit characteristics of professionalization.
The core characteristics of Profession are a prolonged specialized training in a body of
abstract knowledge, and a collective or service orientation. Occupations may rank high
on one of these, but low on other. Thus nursing ranks higher in service orientation, but
has been unable to demonstrate that its training is more than a lower level medical
education.
CHARACTERISTICS OF PROFESSION

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Though much has been said about the nature of profession, few contributors have tried to
define the term Profession; each of them has given evaluative analysis of profession, its
characteristics and non – quantifiable indicators of the closeness of a given occupational
group to achieve fully recognizable professional status. If we try to analyze the most
commonly cited definitions, a commendable unanimity is disclosed: there are no
contradictions and the only differences are those of omissions.
In the following paper, the Authors have tried to reproduce characteristics of profession
given by various thinkers and subsequently they’ll try to analyse the characteristics of
HRD as a Profession.
Goode (1960), in his paper ‘Encroachment, Charlatanism and Emerging Professions’,
American Sociological Review, proposes the following characteristics of Profession:
1) The profession determines its own standards of education.
2) The student of professional goes through a more far- reaching adult socialization
experience than a learner in other occupation.
3) Professional practice is often legally recognized by some form of licensure.
4) Licensing and admission boards are manned by the members of the profession.
5) Most legislation concerned with the profession is shaped by that profession.
6) The occupation gains in income, power and prestige ranking and can demand high
calibre students.
7) The practitioner is relatively free of lay evaluation and control.
8) The norms of practice enforced by the profession are more stringent than legal
controls.
9) Members are more strongly identified and affiliated with the profession than are
members of other occupations.
10) The Profession is more likely to be a terminal occupation. Members do not care to
leave it, and a higher proportion assert that if they had to do over again , they would again
choose same type of work.

Barber (1963) lists the following characteristics of a Profession:


1) A high degree of generalized and systematic knowledge.
2) Primary orientation to the community interest rather than to individual self interest.

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3) A high degree of self control of behaviour through codes of ethics internalized in the
process of work socialization and through voluntary associations organized and operated
by work specialists themselves.
4) A system of rewards (Monetary and non monetary), that is primarily a set of symbols
of work achievement and thus ends themselves, not means to some end of individual self
interest.
The Elements of Professionalization
Harries–Jenkins (1970) identifies the following elements of professionalization in his
paper ‘Professionals in Organizations’, Profession and Professionalization.

1) Structural element:
a) Specialization: The exclusive nature of group activity
b) Centralization: The locus of authority- sanctions mechanism
c) Standardization: The control of non-occupational behaviour

2) Contextual element:
a) Spatio- temporal dimension
b) Size of occupational group
c) Resources of occupational group
d) Group Relations

3) Activity element:
a) The goals of occupational group
b) The role of individual members.
4) Educational element:
a) Occupational intelligence requirements
b) Basis of systematic theory
c) Institutionalized educational process
d) Length of training
e) Cost of training
5) Ideological element:

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a) Personality involvement
b) Sense of group identity
c) Group culture
d) Status
e) Socialization process
6) Behavioural element:
a) Code of conduct
b) Evaluation of merit
Turner and Hodge (1970) in the paper ‘Occupations and Professions’ raised the following
questions on the issue:
1) What is substantive base of any profession or semi–profession?
2) How do substantive bases of differing professions or semi-professions relate to each
other?
3) What are major categories of persons involved in the management and control of
substantive resources?
4) What means of control are used by different categories of interested parties?
Turner & Hodge (1970) proposed four areas of concern in study of Professionalism.
They are:

1) Degree of Substantive Theory and Technique: A Profession should have a set of


abstract principles, which should be organized into theory, set of theories or at least a
complex web of theoretical orientations. Knowledge of a profession is passed on to next
generations through these theories. Techniques for recurrent application of these
fundamental principles should be developed. There should be a correlation between
Theory and Techniques.

2) Degree of Monopoly: The profession should claim a monopoly over the set of
activities in which it offers services. The bid for recognition may take form of claim to
exclusive possession of knowledge and associated techniques, or at least to their greatly
superior application. The justification is commonly advanced on grounds like possession
of esoteric knowledge and high skill, the performance of tasks of high social values, the

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image of community service and dedication. Though it is extremely unlikely that any
group will be able to enforce complete monopoly over the full range of activities to which
it lays claim.

3) Degree of External Recognition: Public recognition is a critical aspect of any


profession. But public recognition is a multi- faceted phenomenon. There are several
possible publics to whom members of an occupation may address themselves. They may
be Clients, Co-workers outside the professional groups,
Other occupational associations (which may be complementary or competitive),
Govt. bodies taking direct legislative and or administrative part in regulation of
occupational activities, Educational and Training Institutes and other individuals, groups
and organizations, which may be internally differentiated with respect to knowledge,
opinion and interests concerning a given occupation.
4) Degree of Organization: Two general approaches to the organization of
Professions and professionalizing occupations have been developed.
(a) Formal Organization Approach
(b) Community Approach.

A) Formal Organization Approach: In this approach, the emphasis is on


a) Organizational mechanisms and techniques.
b) The enumeration, registration and licensing of competent professionals.
c) Codification of standards of practice and conduct.
d) Application of formal control over members.
B) Community Approach: The emphasis is on qualitative aspect of the relationship
among a group of professionals and between a professional community and the wider
society.
Goode lists the following characteristics of professional community:
1) Its members are bound by a sense of identity.
2) Once in it, a few leave it, so it is terminal or continuing status for most part.
3) Its members share values in common.

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4) Its role identification vis-à-vis both members and non-members are agreed upon and
are the same for all members.
5) Within the area of communal action, there is a common language, which is understood
only partially by outsiders.
6) The community has power over its members.
7) Its limits are reasonably clear, though they are not physical or geographical, but social.
8) Though it does not produce the next generation biologically, it does so socially through
its control over selection of professional trainees and through its training process, it sends
these recruits through adult Socialization process.
Turner and Hodge further enlist the following activities that relate directly to a
profession. They are:
1) The development of substantive theory.
2) The development of practical techniques.
3) The transmission of substantive theory.
4) The transmission of practical techniques.
5) The provision of materials and equipment.
6) The regulation of working conditions.
7) The regulation of market conditions.
8) The identification of practitioners and the recognition of qualification for practice.
9) The promotion of standard practice.
10) The promotion of internal relations between members.
11) The promotion of public recognition.
On the basis of all the above analysis, the authors have listed the following characteristics
of a Profession:
1) A high degree of generalized and systematic knowledge.
2) A profession has well defined intelligence requirements and it chooses the future
professionals on the basis of possession of basic aptitude for practicing the profession.
3) Acquisition of knowledge requires a long period of Education, Training and
Socialization.
4) Professional practice is often legally recognized by some form of licensure and these
boards/Associations are manned by the members of the profession.

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5) A profession should claim to offer services not available elsewhere.
6) Its members are bound by a sense of identity, they share common value and there is
always promotion of internal relations between the members of the same profession.
7) Members of a profession are bound by ethical code of conduct.
8) A Profession is well accepted by public and member roles are well defined and
understood by public at large.
9) Practitioners are motivated by an ideal of altruistic service rather than the pursuit of
material and economic gain.

UNIT-IV

JIT JUST-IN-TIME MANUFACTURING

`Just-in-time' is a management philosophy and not a technique.

It originally referred to the production of goods to meet customer demand exactly, in


time, quality and quantity, whether the `customer' is the final purchaser of the product or
another process further along the production line.

It has now come to mean producing with minimum waste. "Waste" is taken in its most
general sense and includes time and resources as well as materials. Elements of JIT
include:

• Continuous improvement.
a. Attacking fundamental problems - anything that does not add value to the
product.
b. Devising systems to identify problems.
c. Striving for simplicity - simpler systems may be easier to understand, easier to
manage and less likely to go wrong.
d. A product oriented layout - produces less time spent moving of materials and
parts.
e. Quality control at source - each worker is responsible for the quality of their
own output.
f. Poka-yoke - `foolproof' tools, methods, jigs etc. prevent mistakes
g. Preventative maintenance, Total productive maintenance - ensuring machinery
and equipment functions perfectly when it is required, and continually
improving it.
• Eliminating waste. There are seven types of waste:
a. Waste from overproduction.
b. Waste of waiting time.
c. Transportation waste.

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d. Processing waste.
e. Inventory waste.
f. Waste of motion.
g. Waste from product defects.
• Good housekeeping - workplace cleanliness and organization.
• Set-up time reduction - increases flexibility and allows smaller batches. Ideal batch
size is 1item. Multi-process handling - a multi-skilled workforce has greater
productivity, flexibility and job satisfaction.
• Levelled / mixed production - to smooth the flow of products through the factory.
• Kanbans - simple tools to `pull' products and components through the process.
• Jidoka (Autonomation) - providing machines with the autonomous capability to use
judgement, so workers can do more useful things than standing watching them work.
• Andon (trouble lights) - to signal problems to initiate corrective action.

JIT - Background and History

JIT is a Japanese management philosophy which has been applied in practice since the
early 1970s in many Japanese manufacturing organisations. It was first developed and
perfected within the Toyota manufacturing plants by Taiichi Ohno as a means of meeting
consumer demands with minimum delays . Taiichi Ohno is frequently referred to as the
father of JIT.

Toyota was able to meet the increasing challenges for survival through an approach that
focused on people, plants and systems. Toyota realised that JIT would only be successful
if every individual within the organisation was involved and committed to it, if the plant
and processes were arranged for maximum output and efficiency, and if quality and
production programs were scheduled to meet demands exactly.

JIT manufacturing has the capacity, when properly adapted to the organisation, to
strengthen the organisation's competitiveness in the marketplace substantially by reducing
wastes and improving product quality and efficiency of production.

There are strong cultural aspects associated with the emergence of JIT in Japan. The
Japanese work ethic involves the following concepts.

• Workers are highly motivated to seek constant improvement upon that which
already exists. Although high standards are currently being met, there exist even
higher standards to achieve.
• Companies focus on group effort which involves the combining of talents and
sharing knowledge, problem-solving skills, ideas and the achievement of a
common goal.
• Work itself takes precedence over leisure. It is not unusual for a Japanese
employee to work 14-hour days.
• Employees tend to remain with one company throughout the course of their career
span. This allows the opportunity for them to hone their skills and abilities at a
constant rate while offering numerous benefits to the company.

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These benefits manifest themselves in employee loyalty, low turnover costs and
fulfilment of company goals.

Just-in-time (JIT) is an inventory strategy implemented to improve the return on


investment of a business by reducing in-process inventory and its associated carrying
costs. In order to achieve JIT the process must have signals of what is going on elsewhere
within the process. This means that the process is often driven by a series of signals,
which can be Kanban .that tell production processes when to make the next part. Kanban
are usually 'tickets' but can be simple visual signals, such as the presence or absence of a
part on a shelf. When implemented correctly, JIT can lead to dramatic improvements in a
manufacturing organization's return on investment, quality, and efficiency. Some have
suggested that "Just on Time" would be a more appropriate name since it emphasizes that
production should create items that arrive when needed and neither earlier nor later.

Quick communication of the consumption of old stock which triggers new stock to be
ordered is key to JIT and inventory reduction. This saves warehouse space and costs.
However since stock levels are determined by historical demand any sudden demand
rises above the historical average demand, the firm will deplete inventory faster than
usual and cause customer service issues. Some have suggested that recycling Kanban
faster can also help flex the system by as much as 10-30%. In recent years manufacturers
have touted a trailing 13 week average as a better predictor for JIT planning than most
fore castors could provide.

JIT Implementation Design

Based on a diagram modeled after the one used by Hewlett-Packard’s Boise plant to
accomplish its JIT program.

1) F Design Flow Process


- F Redesign/relay out for flow
- L Reduce lot sizes
- O Link operations
- W Balance workstation capacity
- M Preventative maintenance
- S Reduce Setup Times

2) Q Total quality control


- C worker compliance
- I Automatic inspection
- M quality measures
- M fail-safe methods
- W Worker participation

3) S Stabilize Schedule
- S Level Schedule
- W establish freeze windows

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- UC Underutilize Capacity

4) K Kanban Pull System


- D Demand pull
- B Back flush
- L Reduce lot sizes

5) V Work with vendors


- L Reduce lead time
- D Frequent deliveries
- U Project usage requirements
- Q Quality Expectations

6) I further reduce inventory in other areas


- S Stores
- T Transit
- C Implement Carroussel to reduce motion waste
- C Implement Conveyor belts to reduce motion waste

7) P Improve Product Design


- P Standard Production Configuration
- P Standardize and reduce the number of parts
- P Process design with product design
- Q Quality Expectations

Effects

Some of the initial results at Toyota were horrible, but in contrast to that a huge amount
of cash appeared, apparently from nowhere, as in-process inventory was built out and
sold. This by itself generated tremendous enthusiasm in upper management.

Another surprising effect was that the response time of the factory fell to about a day.
This improved customer satisfaction by providing vehicles usually within a day or two of
the minimum economic shipping delay.

Also, many vehicles began to be built to order, completely eliminating the risk they
would not be sold. This dramatically improved the company's return on equity by
eliminating a major source of risk.

Since assemblers no longer had a choice of which part to use, every part had to fit
perfectly. The result was a severe quality assurance crisis, and a dramatic improvement in
product quality. Eventually, Toyota redesigned every part of its vehicles to eliminate or
widen tolerances, while simultaneously implementing careful statistical controls for
quality control. Toyota had to test and train suppliers of parts in order to assure quality
and delivery. In some cases, the company eliminated multiple suppliers.

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When a process problem or bad parts surfaced on the production line, the entire
production line had to be slowed or even stopped. No inventory meant that a line could
not operate from in-process inventory while a production problem was fixed. Many
people in Toyota confidently predicted that the initiative would be abandoned for this
reason. In the first week, line stops occurred almost hourly. But by the end of the first
month, the rate had fallen to a few line stops per day. After six months, line stops had so
little economic effect that Toyota installed an overhead pull-line, similar to a bus bell-
pull, that permitted any worker on the production line to order a line stop for a process or
quality problem. Even with this, line stops fell to a few per week.

The result was a factory that eventually became the envy of the industrialized world, and
has since been widely emulated.

The just-in-time philosophy was also applied to other segments of the supply chain in
several types of industries. In the commercial sector, it meant eliminating one or all of the
warehouses in the link between a factory and a retail establishment

As most companies use an inventory system best suited for their company, the Just-In-
Time Inventory System (JIT) can have many benefits resulting from it. The main benefits
of JIT are listed below.

1. Set up times are significantly reduced in the factory. Cutting down the set up time
to be more productive will allow the company to improve their bottom line to
look more efficient and focus time spent on other areas that may need
improvement. This allows the reduction or elimination of the inventory held to
cover the "changeover" time, the tool used here is SMED.

Single Minute Exchange of Die (SMED) is one of the many lean production
methods for reducing waste in a manufacturing process. It provides a rapid and
efficient way of converting a manufacturing process from running the current
product to running the next product. This rapid changeover is key to reducing
production lot sizes and thereby improving flow (Mura) which is a 'Lean' aim. It
is also often referred to as Quick Changeover (QCO). Performing faster change-
overs is important in manufacturing, or any process, because they make low cost
flexible operations possible.

2. The flows of goods from warehouse to shelves are improved. Having employees
focused on specific areas of the system will allow them to process goods faster
instead of having them vulnerable to fatigue from doing too many jobs at once
and simplifies the tasks at hand. Small or individual piece lot sizes reduce lot
delay inventories which simplifies inventory flow and its management.
3. Employees who possess multiple skills are utilized more efficiently. Having
employees trained to work on different parts of the inventory cycle system will
allow companies to use workers in situations where they are needed when there is
a shortage of workers and a high demand for a particular product.

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4. Better consistency of scheduling and consistency of employee work hours. If there
is no demand for a product at the time, workers don’t have to be working. This
can save the company money by not having to pay workers for a job not
completed or could have them focus on other jobs around the warehouse that
would not necessarily be done on a normal day.
5. Increased emphasis on supplier relationships. No company wants a break in their
inventory system that would create a shortage of supplies while not having
inventory sit on shelves. Having a trusting supplier relationship means that you
can rely on goods being there when you need them in order to satisfy the company
and keep the company name in good standing with the public.
6. Supplies continue around the clock keeping workers productive and businesses
focused on turnover. Having management focused on meeting deadlines will
make employees work hard to meet the company goals to see benefits in terms of
job satisfaction, promotion or even higher pay.

KAIZEN

Kaizen (, Japanese for "change for the better" or "improvement") is an approach to


productivity improvement originating in applications of the work of American experts
such as Frederick Winslow Taylor, Frank Bunker Gilbreth, Walter Shewhart,and of the
War Department's Training Within Industry program by post-WWII Japanese
manufacturers. The development of Kaizen went hand-in-hand with that of Quality
control circles, but it was not limited to quality assurance.

The goals of kaizen include the elimination of waste (defined as "activities that add cost
but do not add value"), just-in-time delivery, production load leveling of amount and
types, standardized work, paced moving lines, right-sized equipment, and others. A closer
definition of the Japanese usage of Kaizen is "to take it apart and put back together in a
better way." What is taken apart is usually a process, system, product, or service.

Kaizen is a daily activity whose purpose goes beyond improvement. It is also a process
that when done correctly humanizes the workplace, eliminates hard work (both mental
and physical), teaches people how to do rapid experiments using the scientific method,
and how to learn to see and eliminate waste in business processes.

"Kaizen" is the correct usage. "Kaizen event" or "kaizen blitz" are incorrect usage.

Kaizen is often misunderstood and applied incorrectly, resulting in bad outcomes


including, for example, layoffs. This is called "kaiaku" - literally, "change for the worse."
Layoffs are not the intent of kaizen. Instead, kaizen must be practiced in tandem with the

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"Respect for People" principle. Without "Respect for People," there can be no continuous
improvement. Instead, the usual result is one-time gains that quickly fade.

Importantly, kaizen must operate with three principles in place: process and results (not
results-only); systemic thinking (i.e. big picture, not solely the narrow view); and non
judgmental, non-blaming (because blaming is wasteful).

Everyone participates in kaizen; people of all levels in an organization, CEO on down, as


well as external stakeholders if needed. The format for kaizen can be individual,
suggestion system, small group, or large group.

The only way to truly understand the intent, meaning, and power of kaizen is through
direct participation - many, many times.

What is Kaizen?

Kaizen means "improvement". Kaizen strategy calls for never-ending efforts for
improvement involving everyone in the organization – managers and workers alike.

Kaizen and Management

Management has two major components:

1. maintenance, and

2. Improvement.
The objective of the maintenance function is to maintain current technological,
managerial, and operating standards. The improvement function is aimed at improving
current standards.

Under the maintenance function, the management must first establish policies, rules,
directives and standard operating procedures (SOPs) and then work towards ensuring
that everybody follows SOP. The latter is achieved through a combination of discipline
and human resource development measures.

Under the improvement function, management works continuously towards revising


the current standards, once they have been mastered, and establishing higher ones.
Improvement can be broken down between innovation and Kaizen. Innovation involves
a drastic improvement in the existing process and requires large investments. Kaizen

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signifies small improvements as a result of coordinated continuous efforts by all
employees.

Implementation of Kaizen Strategy: 7 Conditions

One of the most difficult aspects of introducing and implementing Kaizen strategy is
assuring its continuity.

When a company introduces something new, such as quality circles, or total quality
management (TQM), it experiences some initial success, but soon such success
disappear like fireworks on summer night and after a while nothing is left, and
management keeps looking for a new flavor of the month.

This if because the company lacks the first three most important conditions for the
successful introduction and implementation of Kaizen strategy... More

Process-Oriented Thinking vs. Result-Oriented Thinking

Kaizen concentrates at improving the process rather than at achieving certain results.
Such managerial attitudes and process thinking make a major difference in how an
organization masters change and achieves improvements.

Quick and Easy Kaizen

Quick and Easy Kaizen (or Mini-Kaizen) is aimed at increasing productivity, quality,
and worker satisfaction, all from a very grassroots level. Every company employee is
encouraged to come up with ideas – however small – that could improve his/her
particular job activity, job environment or any company process for that matter. The
employees are also encouraged to implement their ideas as small changes can be done
by the worker him or herself with very little investment of time.

Quick and easy Kaizen helps eliminate or reduce wastes, promotes personal growth of
employees and the company, provides guidance for employees, and serves as a
barometer of leadership. Each kaizen may be small, but the cumulative effect is
tremendous.

The quick and easy kaizen process works as follows:


1. The employee notices a problem or an opportunity for improvement

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Kaizen Time at Canon

In some Canon plants, the foremen are told to set aside the half-hour as Kaizen time –
time to do nothing but thinking improvement in the workshop. The foremen use this
period to identify problems and work on Kaizen programs. Factories are advised not to
hold meetings during this 30-minute period, and foremen should not even answer the
telephone then

Five Ss at Canon

Canon has an ongoing workplace improvement program called the Five Ss. The Five Ss
refer to the five dimensions of workplace optimization: Seiri (Sort), Seiton (Set in
order), Seiso (Shine), Seiketsu (Standardize), and Shitsuke (Sustain)

• Employee Involvement and Empowerment: Toyota organized their workers by


forming teams and gave them the responsibility and training to do many specialized
tasks. Teams are also given responsibility for housekeeping and minor equipment
repair. Each team has a leader who also works as one of them on the line...

Employee Empowerment: the Suggestion System

Suggestion systems are a valuable opportunity for worker self-development as well as


for two-way communication in the workshop. Suggestion systems make employees
Kaizen-conscious and provide an opportunity for the workers to speak out with their
supervisors as well as among themselves.

The suggestion system is an integral part of an established management system that


aims at involving employees in Kaizen. The number of worker's suggestions is regarded
as important criteria in reviewing the performance of the worker's supervisor and the
manager of the supervisor.

The Japanese management encourages employees to generate a great number of


suggestions and works hard to consider and implement these suggestions, often
incorporating them into the overall Kaizen strategy. Management also gives due
recognition to employee's efforts for improvement. An important aspect of the
suggestion system is that each suggestion, once implemented, leads to an upgraded
standard.

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Quality control (QC) circles can be viewed as a group-oriented suggestion system for
making improvements. QC circle is a small group that voluntarily performs quality-
control activities in the workplace.

Total quality control (TQC) involves everyone in the organization and is aimed at
improvement of managerial performance at all levels.

According to Masaaki Imai, author of Kaizen: the Key to Japan's Competitive Success,
Japanese managers have more leeway in implementing employee suggestions that
Western counterparts. Japanese managers are willing to go along with a change if it
contributes to any of the seven goals of the suggestion system. This is a sharp contrast
to the Western manager's almost exclusive concern with the cost of the change and its
economic payback.

TOTAL QUALITY MANAGEMENT (TQM)

What is quality? Dictionary has many definitions: “Essential characteristic,” “Superior,”


etc. Some definitions that have gained wide acceptance in various organizations: “Quality
is customer satisfaction,” “Quality is Fitness for Use.” The American National Standards
Institute (ANSI) and the American Society for Quality (ASQ) define quality as: “The
totality of features and characteristics of a product or service that bears on its ability to
satisfy given needs.”

What TQM?

A comprehensive, organization-wide effort to improve the quality of products and


services, applicable to all organizations.

What is a customer? Anyone who is impacted by the product or process delivered by an


organization. External customer: The end user as well as intermediate processors. Other
external customers may not be purchasers but may have some connection with the
product. Internal customer: Other divisions of the company that receive the processed
product.

What is a product?

The output of the process carried out by the organization. It may be goods (e.g.
automobiles, missile), software (e.g. a computer code, a report) or service (e.g. banking,
insurance)

How is customer satisfaction achieved?

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Two dimensions: Product features and Freedom from deficiencies.

• Product features – Refers to quality of design.

Examples in manufacturing industry: Performance, Reliability, Durability, Ease of use,


Esthetics etc. Examples in service industry: Accuracy, Timeliness, Friendliness and
courtesy, Knowledge of server etc.

• Freedom from deficiencies – Refers to quality of conformance.

Higher conformance means fewer complaints and increased customer satisfaction.

Why Quality?

Reasons for quality becoming a cardinal priority for most organizations:

• Competition – Today’s market demand high quality products at low cost. Having
`high quality’ reputation is not enough! Internal cost of maintaining the reputation
should be less.
• Changing customer – The new customer is not only commanding priority based
on volume but is more demanding about the “quality system.”
• Changing product mix – The shift from low volume, high price to high volume,
low price have resulted in a need to reduce the internal cost of poor quality.

Why Quality?

• Product complexity – As systems have become more complex, the reliability


requirements for suppliers of components have become more stringent.
• Higher levels of customer satisfaction – Higher customers expectations are getting
spawned by increasing competition.

Relatively simpler approaches to quality viz. product inspection for quality control and
incorporation of internal cost of poor quality into the selling price, might not work for
today’s complex market environment.

Quality perspectives

Everyone defines Quality based on their own perspective of it. Typical responses about
the definition of quality would include:

• Perfection
• Consistency
• Eliminating waste
• Speed of delivery
• Compliance with policies and procedures
• Doing it right the first time

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• Delighting or pleasing customers
• Total customer satisfaction and service

Quality perspectives

Judgmental perspective

• “Goodness of a product.”
• Shewhart’s transcendental definition of quality – “absolute and universally
recognizable, a mark of uncompromising standards and high achievement.”
• Examples of products attributing to this image: Rolex watches, Lexus cars.

Product-based perspective

• “Function of a specific, measurable variable and that differences in quality reflect


differences in quantity of some product attributes.”
• Example: Quality and price perceived relationship.

Quality perspectives

User-based perspective

• “Fitness for intended use.”


• Individuals have different needs and wants, and hence different quality standards.
• Example – Nissan offering ‘dud’ models in US markets under the brand name
Datson which the US customer didn’t prefer.

Value-based perspective

• “Quality product is the one that is as useful as competing products and is sold at a
lesser price.”
• US auto market – Incentives offered by the Big Three are perceived to be
compensation for lower quality.

Quality perspectives

Manufacturing-based perspective

• “The desirable outcome of a engineering and manufacturing practice, or


conformance to specification.”
• Engineering specifications are the key!
• Example: Coca-cola – “quality is about manufacturing a product that people can
depend on every time they reach for it.”

Quality levels

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At organizational level, we need to ask following questions:

• Which products and services meet your expectations?


• Which products and services you need that you are not currently receiving?

At process level, we need to ask:

• What products and services are most important to the external customer?
• What processes produce those products and services?
• What are the key inputs to those processes?
• Which processes have most significant effects on the organization’s performance
standards?

Quality levels

At the individual job level, we should ask:

• What is required by the customer?


• How can the requirements be measured?
• What is the specific standard for each measure?

History of quality management

…To know the future, know the past!

• Before Industrial Revolution, skilled craftsmen served both as manufacturers and


inspectors, building quality into their products through their considerable pride in
their workmanship.
• Industrial Revolution changed this basic concept to interchangeable parts. Likes
of Thomas Jefferson and F. W. Taylor (“scientific management” fame)
emphasized on production efficiency and decomposed jobs into smaller work
tasks. Holistic nature of manufacturing rejected!

History of quality management

• Statistical approaches to quality control started at Western Electric with the


separation of inspection division. Pioneers like Walter Shewhart, George
Edwards, W. Edwards Deming and Joseph M. Juran were all employees of
Western Electric.
• After World War II, under General MacArthur's Japan rebuilding plan, Deming
and Juran went to Japan.
• Deming and Juran introduced statistical quality control theory to Japanese
industry.
• The difference between approaches to quality in USA and Japan: Deming and
Juran were able to convince the top managers the importance of quality.

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History of quality management

• Next 20 odd years, when top managers in USA focused on marketing, production
quantity and financial performance, Japanese managers improved quality at an
unprecedented rate.
• Market started preferring Japanese products and American companies suffered
immensely.
• America woke up to the quality revolution in early 1980s. Ford Motor Company
consulted Dr. Deming to help transform its operations.

(By then, 80-year-old Deming was virtually unknown in USA. Whereas Japanese
government had instituted The Deming Prize for Quality in 1950.)

History of quality management

• Managers started to realize that “quality of management” is more important than


“management of quality.” Birth of the term Total Quality Management (TQM).
• TQM – Integration of quality principles into organization’s management systems.
• Early 1990s: Quality management principles started finding their way in service
industry. FedEx, The Ritz-Carton Hotel Company were the quality leaders.
• TQM recognized worldwide: Countries like Korea, India, Spain and Brazil are
mounting efforts to increase quality awareness.

Evolution of TQM philosophies

• The Deming Philosophy

Definition of quality, “A product or a service possesses quality if it helps somebody and


enjoys a good and sustainable market.”

 Improve quality
 Decrease cost because of less rework, fewer mistakes.
 Productivity improves
 Capture the market with better quality and reduced cost.
 Stay in business
 Long-term competitive strength

TQM is a set of management practices throughout the organization, geared to ensure the
organization consistently meets or exceeds customer requirements. TQM places strong
focus on process measurement and controls as means of continuous improvement.
Total Quality Management is an approach to the art of management that originated in
Japanese industry in the 1950's and has become steadily more popular in the West since
the early 1980's.

Total Quality is a description of the culture, attitude and organization of a company that

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aims to provide, and continue to provide, its customers with products and services that
satisfy their needs. The culture requires quality in all aspects of the company's operations,
with things being done right first time, and defects and waste eradicated from operations.

Many companies have difficulties in implementing TQM. Surveys by consulting firms


have found that only 20-36% of companies that have undertaken TQM have achieved
either significant or even tangible improvements in quality, productivity, competitiveness
or financial return. As a result many people are skeptical about TQM. However, when
you look at successful companies you find a much higher percentage of successful TQM
implementation.

Some useful messages from results of TQM implementations:

• if you want to be a first-rate company, don't focus on the second-rate companies


who can't handle TQM, look at the world-class companies that have adopted it
• the most effective way to spend TQM introduction funds is by training top
management, people involved in new product development, and people involved
with customers
• it's much easier to introduce EDM/PDM in a company with a TQM culture than in
one without TQM. People in companies that have implemented TQM are more
likely to have the basic understanding necessary for implementing EDM/PDM.
For example, they are more likely to view EDM/PDM as an information and
workflow management system supporting the entire product life cycle then as a
departmental solution for the management of CAD data

Important aspects of TQM include customer-driven quality, top management leadership


and commitment, continuous improvement, fast response, actions based on facts,
employee participation, and a TQM culture.

Customer-driven quality
TQM has a customer-first orientation. The customer, not internal activities and
constraints, comes first. Customer satisfaction is seen as the company's highest priority.
The company believes it will only be successful if customers are satisfied. The TQM
Company is sensitive to customer requirements and responds rapidly to them. In the
TQM context, `being sensitive to customer requirements' goes beyond defect and error
reduction, and merely meeting specifications or reducing customer complaints. The
concept of requirements is expanded to take in not only product and service attributes that
meet basic requirements, but also those that enhance and differentiate them for
competitive advantage.

Each part of the company is involved in Total Quality, operating as a customer to some
functions and as a supplier to others. The Engineering Department is a supplier to
downstream functions such as Manufacturing and Field Service, and has to treat these

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internal customers with the same sensitivity and responsiveness as it would external
customers.

TQM leadership from top management


TQM is a way of life for a company. It has to be introduced and led by top management.
This is a key point. Attempts to implement TQM often fail because top management
doesn't lead and get committed - instead it delegates and pays lip service. Commitment
and personal involvement is required from top management in creating and deploying
clear quality values and goals consistent with the objectives of the company, and in
creating and deploying well defined systems, methods and performance measures for
achieving those goals. These systems and methods guide all quality activities and
encourage participation by all employees. The development and use of performance
indicators is linked, directly or indirectly, to customer requirements and satisfaction, and
to management and employee remuneration.
Continuous improvement
Continuous improvement of all operations and activities is at the heart of TQM. Once it is
recognized that customer satisfaction can only be obtained by providing a high-quality
product, continuous improvement of the quality of the product is seen as the only way to
maintain a high level of customer satisfaction. As well as recognizing the link between
product quality and customer satisfaction, TQM also recognizes that product quality is
the result of process quality. As a result, there is a focus on continuous improvement of
the company's processes. This will lead to an improvement in process quality. In turn this
will lead to an improvement in product quality, and to an increase in customer
satisfaction. Improvement cycles are encouraged for all the company's activities such as
product development, use of EDM/PDM, and the way customer relationships are
managed. This implies that all activities include measurement and monitoring of cycle
time and responsiveness as a basis for seeking opportunities for improvement.

Elimination of waste is a major component of the continuous improvement approach.


There is also a strong emphasis on prevention rather than detection, and an emphasis on
quality at the design stage. The customer-driven approach helps to prevent errors and
achieve defect-free production. When problems do occur within the product development
process, they are generally discovered and resolved before they can get to the next
internal customer.

Fast response
To achieve customer satisfaction, the company has to respond rapidly to customer needs.
This implies short product and service introduction cycles. These can be achieved with
customer-driven and process-oriented product development because the resulting
simplicity and efficiency greatly reduce the time involved. Simplicity is gained through
concurrent product and process development. Efficiencies are realized from the
elimination of non-value-adding effort such as re-design. The result is a dramatic
improvement in the elapsed time from product concept to first shipment.

Actions based on facts

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The statistical analysis of engineering and manufacturing facts is an important part of
TQM. Facts and analysis provide the basis for planning, review and performance
tracking, improvement of operations, and comparison of performance with competitors.
The TQM approach is based on the use of objective data, and provides a rational rather
than an emotional basis for decision making. The statistical approach to process
management in both engineering and manufacturing recognizes that most problems are
system-related, and are not caused by particular employees. In practice, data is collected
and put in the hands of the people who are in the best position to analyze it and then take
the appropriate action to reduce costs and prevent non-conformance. Usually these people
are not managers but workers in the process. If the right information is not available, then
the analysis, whether it be of shop floor data, or engineering test results, can't take place,
errors can't be identified, and so errors can't be corrected.

Employee participation
A successful TQM environment requires a committed and well-trained work force that
participates fully in quality improvement activities. Such participation is reinforced by
reward and recognition systems which emphasize the achievement of quality objectives.
On-going education and training of all employees supports the drive for quality.
Employees are encouraged to take more responsibility, communicate more effectively,
act creatively, and innovate. As people behave the way they are measured and
remunerated, TQM links remuneration to customer satisfaction metrics.

A TQM culture
It's not easy to introduce TQM. An open, cooperative culture has to be created by
management. Employees have to be made to feel that they are responsible for customer
satisfaction. They are not going to feel this if they are excluded from the development of
visions, strategies, and plans. It's important they participate in these activities. They are
unlikely to behave in a responsible way if they see management behaving irresponsibly -
saying one thing and doing the opposite.

Product development in a TQM environment


Product development in a TQM environment is very different to product development in
a non-TQM environment. Without a TQM approach, product development is usually
carried on in a conflictual atmosphere where each department acts independently. Short-
term results drive behavior so scrap, changes, work-around, waste, and rework are normal
practice. Management focuses on supervising individuals, and fire-fighting is necessary
and rewarded.

Product development in a TQM environment is customer-driven and focused on quality.


Teams are process-oriented, and interact with their internal customers to deliver the
required results. Management's focus is on controlling the overall process, and rewarding
teamwork.

Awards for Quality achievement


The Deming Prize has been awarded annually since 1951 by the Japanese Union of

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Scientists and Engineers in recognition of outstanding achievement in quality strategy,
management and execution. Since 1988 a similar award (the Malcolm Baldrige National
Quality Award) has been awarded in the US. Early winners of the Baldrige Award
include AT&T (1992), IBM (1990), Milliken (1989), Motorola (1988), Texas Instruments
(1992) and Xerox (1989).

QUALITY CONTROL

Meaning of Quality control (QC)

Quality control (QC) is a procedure or set of procedures intended to ensure that a


manufactured product or performed service adheres to a defined set of quality criteria or
meets the requirements of the client or customer. QC is similar to, but not identical with,
quality assurance (QA). QA is defined as a procedure or set of procedures intended to
ensure that a product or service under development (before work is complete, as opposed
to afterwards) meets specified requirements. QA is sometimes expressed together with
QC as a single expression, quality assurance and control (QA/QC).

In order to implement an effective QC program, an enterprise must first decide which


specific standards the product or service must meet. Then the extent of QC actions must
be determined (for example, the percentage of units to be tested from each lot). Next,
real-world data must be collected (for example, the percentage of units that fail) and the
results reported to management personnel. After this, corrective action must be decided
upon and taken (for example, defective units must be repaired or rejected and poor
service repeated at no charge until the customer is satisfied). If too many unit failures or
instances of poor service occur, a plan must be devised to improve the production or
service process and then that plan must be put into action. Finally, the QC process must
be ongoing to ensure that remedial efforts, if required, have produced satisfactory results
and to immediately detect recurrences or new instances of trouble.

Concept of Quality control (QC)

Quality control is a process employed to ensure a certain level of quality in a product or


service. It may include whatever actions a business deems necessary to provide for the
control and verification of certain characteristics of a product or service. The basic goal
of quality control is to ensure that the products, services, or processes provided meet
specific requirements and are dependable, satisfactory, and fiscally sound.

Essentially, quality control involves the examination of a product, service, or process for
certain minimum levels of quality. The goal of a quality control team is to identify
products or services that do not meet a company’s specified standards of quality. If a
problem is identified, the job of a quality control team or professional may involve
stopping production temporarily. Depending on the particular service or product, as well
as the type of problem identified, production or implementation may not cease entirely.

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Usually, it is not the job of a quality control team or professional to correct quality issues.
Typically, other individuals are involved in the process of discovering the cause of
quality issues and fixing them. Once such problems are overcome, the product, service, or
process continues production or implementation as usual.

Quality control can cover not just products, services, and processes, but also people.
Employees are an important part of any company. If a company has employees that don’t
have adequate skills or training, have trouble understanding directions, or are
misinformed, quality may be severely diminished. When quality control is considered in
terms of human beings, it concerns correctable issues. However, it should not be
confused with human resource issues.

Often, quality control is confused with quality assurance. Though the two are very
similar, there are some basic differences. Quality control is concerned with the product,
while quality assurance is process–oriented.

Even with such a clear-cut difference defined, identifying the differences between the two
can be hard. Basically, quality control involves evaluating a product, activity, process, or
service. By contrast, quality assurance is designed to make sure processes are sufficient to
meet objectives. Simply put, quality assurance ensures a product or service is
manufactured, implemented, created, or produced in the right way; while quality control
evaluates whether or not the end result is satisfactory.

Early efforts to control the quality of production

When the first specialized craftsmen arose manufacturing tools for others, the principle of
quality was simple: "let the buyer beware" (caveat emptor).

Early civil engineering projects needed to be built from specifications. For example in
order to ensure the four sides of the base of the Great Pyramid of Giza would be
perpendicular to within 3.5 arc seconds.

During the Middle Ages, guilds took the responsibility of quality control upon
themselves.

Royal governments purchasing material were interested in quality control as customers.


For this reason , King John of England appointed a certain William Wrotham to report
about the construction and repair of ships. Some centuries later, but also in England,
Samuel Pepys, Secretary to the Admiralty, appointed multiple such overseers.

Prior to the extensive division of labor and mechanization resulting from the Industrial
Revolution, it was possible for workers to control the quality of their own products.
Working conditions then were more conducive to professional pride.

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The Industrial Revolution led to a system in which large groups of people performing a
similar type of work were grouped together under the supervision of a foreman who was
appointed to control the quality of work manufactured.

Wartime production

During World War I, the manufacturing process became more complex, and the
introduction of large numbers of workers being supervised by a foreman designated to
ensure the quality of the work, which was being produced. This period also introduced
mass production and piecework, which created problems as workmen could now earn
more money by the production of extra products, which in turn led to bad workmanship
being passed on to the assembly lines.

Due to the large amount of bad workmanship being produced, the first full time
inspectors were introduced into the large-scale modern factory. These full time inspectors
were the real beginning of inspection quality control, and this was the beginning the large
inspection organizations of the 1920s and 1930s, which were separately organised from
production and big enough to be headed by superintendents.

The systematic approach to quality started in industrial manufacture during the 1930s,
mostly in the USA, when some attention was given to the cost of scrap and rework. With
the impact of mass production, which was required during the Second World War, it
became necessary to introduce a more appropriate form of quality control which can be
identified as Statistical Quality Control, or SQC. Some of the initial work for SQC is
credited to Walter A. Shewhart of Bell Labs, starting with his famous one-page
memorandum of 1924.

This system came about with the realization that quality cannot be fully inspected into a
important batch of items . By extending the inspection phase and making inspection
organizations more efficient, it provides inspectors with control tools such as sampling
and control charts.

SQC had a significant contribution in that it provided a sampling inspection system where
100 per cent inspection was not practicable. This type of inspection however did lead to a
lack of attention to the engineering activities for producinq quality.

For example, if you have a basic sampling scheme with an acceptance level of 4%, what
happens is you have a ratio of 96% products released onto the market with 4% defective
items – this obviously is a fair risk if you are ensured that unfortunate buyers will not
complain.

Postwar

After World War II, the United States continued to apply the concepts of inspection and
sampling to remove defective product from production lines. However, there were many
individuals trying to lead U.S. industries towards a more comprehensive approach to

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quality. Excluding the U.S., many countries' manufacturing capabilities were destroyed
during the war. This placed American business in a position where advances in the
collaborative approaches to quality were essentially ignored.

After World War II, the U.S. sent General Douglas MacArthur to oversee the re-building
of Japan. During this time, General MacArthur involved two key individuals in the
development of modern quality concepts: W. Edwards Deming and Joseph Juran. Both
individuals promoted the collaborative concepts of quality to Japanese business and
technical groups, and these groups utilized these concepts in the redevelopment of the
Japanese economy.

QUALITY CONTROL ACTIVITIES

Quality control applies to all forms of products and services. This introduced the rules:
"fit for purpose" and "do it right the first time". It includes the regulation of the quality of
raw materials, assemblies, products and components; services related to production; and
management, production, and inspection processes.

One of the most widely used paradigms for Test management is the PDCA (Plan-Do-
Check-Act) approach, also known as the Shewhart cycle.

a. Failure testing

A valuable process to perform on a whole consumer product is failure testing, the


operation of a product until it fails, often under stresses such as increasing vibration,
temperature and humidity. This exposes many unanticipated weaknesses in a product, and
the data is used to drive engineering and manufacturing process improvements. Often
quite simple changes can dramatically improve product service, such as changing to
mould-resistant paint or adding lock-washer placement to the training for new assembly
personnel.

b. Statistical control

Many organizations use statistical process control to bring the organization to Six Sigma
levels of quality, in other words, so that the likelihood of an unexpected failure is
confined to six standard deviations on the normal distribution. This probability is less
than four one-millionths. Items controlled often include clerical tasks such as order-entry
as well as conventional manufacturing tasks.

Traditional statistical process controls in manufacturing operations usually proceed by


randomly sampling and testing a fraction of the output. Variances of critical tolerances
are continuously tracked, and manufacturing processes are corrected before bad parts can
be produced.

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Total quality control

Deep Analysis of quality assurance practices and premises used about them is the most
necessary inspection control of all in cases where, despite statistical quality control
techniques or quality improvements implemented, sales decrease.

The major problem which leads to a decrease in sales was that the specifications did not
include the most important factor, “What the specifications have to state in order to
satisfy the customer requirements?”

The major characteristics, ignored during the search to improve manufacture and overall
business performance were:

• Reliability
• Maintainability
• Safety

As the most important factor had been ignored, a few refinements had to be introduced:

1. Marketing had to carry out their work properly and define the customer’s
specifications.
2. Specifications had to be defined to conform to these requirements.
3. Conformance to specifications i.e. drawings, standards and other relevant
documents, were introduced during manufacturing, planning and control.
4. Management had to confirm all operators are equal to the work imposed on them
and holidays, celebrations and disputes did not affect any of the quality levels.
5. Inspections and tests were carried out, and all components and materials, bought
in or otherwise, conformed to the specifications, and the measuring equipment
was accurate, this is the responsibility of the QA/QC department.
6. Any complaints received from the customers were satisfactorily dealt with in a
timely manner.
7. Feedback from the user/customer is used to review designs.
8. Consistent data recording and assessment and documentation integrity.
9. Product and/or process change management and notification.

If the original specification does not reflect the correct quality requirements, quality
cannot be implemented into the product.

For instance, all parameters for a pressure vessel should include not only the material and
dimensions but operating, environmental, safety, reliability and maintainability
requirements.

To conclude, the above forms the basis from which the philosophy of Quality has
evolved, and the achievement of quality or the “fitness-for-purpose” is “Quality
Awareness” throughout the company.

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The following are examples of best practice models that enhance the development
process:

d.ISO 17025

ISO 17025 is an international standard that specifies the general requirements for the
competence to carry out tests and or calibrations. There are 15 management requirements
and 10 technical requirements. These requirements outline what a laboratory must do to
become accredited. Management system refers to the organization's structure for
managing its processes or activities that transform inputs of resources into a product or
service which meets the organization's objectives, such as satisfying the customer's
quality requirements, complying with regulations, or meeting environmental objectives.

COMPANY QUALITY

During the 1980s, the concept of “company quality” with the focus on management and
people came to the fore. It was realized that, if all departments approached quality with
an open mind, success was possible if the management led the quality improvement
process.

The company-wide quality approach places an emphasis on four aspects :-

1. Elements such as controls, job management, adequate processes, performance and


integrity criteria and identification of records
2. Competence such as knowledge, skills, experience, qualifications
3. Soft elements, such as personnel integrity, confidence, organizational culture,
motivation, team spirit and quality relationships.
4. Infrastructure (as it enhances or limits functionality)

The quality of the outputs is at risk if any of these aspects is deficient in any way.

The approach to quality management given here is therefore not limited to the
manufacturing theatre only but can be applied to any business or non-business activity:

• Design work
• Administrative services
• Consulting
• Banking
• Insurance
• Computer software
• Retailing
• Transportation
• open source development
• education

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It comprises a quality improvement process, which is generic in the sense it can be
applied to any of these activities and it establishes a behavior pattern, which supports the
achievement of quality.

This in turn is supported by quality management practices which can include a number of
business systems and which are usually specific to the activities of the business unit
concerned.

In manufacturing and construction activities, these business practices can be equated to


the models for quality assurance defined by the International Standards contained in the
ISO 9000 series and the specified Specifications for quality systems.

Still, in the system of Company Quality, the work being carried out was shop floor
inspection which did not reveal the major quality problems. This led to quality assurance
or total quality control, which has come into being recently.

Using Contractors and/or consultants

It has become customary to use consultants and contractors when introducing new quality
practices and methodologies as in some instances the relevant skill-set and experience
might not be available within the organization. In addition, when new initiatives and
improvements are required to boost the current quality system, or perhaps improve upon
current manufacturing systems, the use of temporary consultants becomes a viable
solution when allocating valuable resources.

There are various types of consultants and contractors available in the market; most will
have the skills needed to facilitate improvement activities such as Quality Management
Systems (QMS) Auditing and procedural documentation writing. But the higher end
consultants have knowledge and experience for implementing and improving
manufacturing processes by using the latest cutting edge improvement activities such as
Six Sigma, Measurement Systems Analysis (MSA), Failure Mode and Effects Analysis
(FMEA), Advance Product Quality Planning (APQP).

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