Professional Documents
Culture Documents
HRM
Management of work force of an organisation ie how to manage the different people working together in a organisation. HRM is a management function that helps managers recruit, train and develop members for an organisation.
HRM
HRM is concerned with the people dimension in management. Since every organisation is made up of people, acquiring their services, developing their skills, motivating them to higher level of performance, and ensuring that they continue to maintain their commitment to the organisation are essential to achieving organisational objectives. This is true, regardless of the type of organisation ie government, business, education, health.
Objectives of HRM
Societal objectives To be socially responsible to the needs of the society. Organisational Objective To recognise the role of HRM in bringing about organisational effectiveness.
Functional objective To maintain departments contribution at a level appropriate to the organisations needs. Personal Objective To assist employees in achieving their personal goals, at least in so far as these goals enhance the individuals contribution to the organisation.
Objective of HRM
HRM Obj.
Societal Objective
Supporting function
1. Legal compliance 2. Benefits 3. Union Management relations
Organisational Objectives
Objectives of HRM
HRM Obj.
Functional objectives
Supporting function
1. Placement 2. Assessment
Personal Objectives
2.
3. 4. 5.
Going global Embracing new technology Managing change and organisation culture Responding to the market Containing costs
Demographic changes Diversity of backgrounds Age distributions Gender distribution Rising level of education
Cultural changes
Concern for employee rights Changing attitude towards work Balancing work and family
Functions of HR
MANAGERIAL FUNCTIONS Planning Organising Directing Controlling OPERATIVE FUNCTIONS Staffing Development Compensation Motivation
Maintenance
Integration
Operative functions of HR
STAFFING
Job analysis, HRP, Recruitment, Selection, Placement, Induction, Internal Mobility Competency profiling, Training and development, Performance & potential management, Career management, 360 degree feedback Job design, Work scheduling, Job evaluation, Compensation administration, Incentives and benefits
DEVELOPMENT
INTEGRATION
Scope of HRM
Labour or Personnel aspect Recruitment, Selection, Transfer, Promotion etc. Welfare aspect Housing, Lunch room, Health and Safety, Transport, education etc. Industrial relation aspect Union Management relations, Negotiation, Grievance handling etc.
Professionalism
Economic
HRM
Union
HRM
Mission
Organisational Conflict
HRM Policies
Policy is predetermined course of action established to guide the performance of work towards accepted objectives. Importance -:
(1) Clear Thinking (2)Uniformity & Consistency of Admin. (3)Sence of Security (4)Control
Types of HR Policies
Originated policies Made by top Management. Appealed policies Made on request to handle certain situation, or if certain aspects are missing in the main policy. Imposed policies Imposed by Govt & Legal authorities. General policies Do not relate any issue, may represent the priority of Top Mgmt. (WPM). Specific Policy Related to specific issues like Recruitment, Transfer, Promotion etc.
Strategic Management
Strategy -: is a way of doing something. It usually includes the formulation of a goal and set of action plans for accomplishment of that goal.
1) Planning 2) Action
Strategic Management
Strategic management is understood as the process of formulating, implementing and evaluating business strategies to achieve organisational objectives. Analysis of the environment, formulation of strategies, and evaluation and control are the phases in the strategic management process.
The linking of HRM with strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility. Formulating and executing HR systemsHR policies and activitiesthat produce the employee competencies and behaviors the company needs to achieve its strategic aims.
Meaning Assessment of Human Resource Requirements & also the time & stages of requirement. Right person ---At Right place ---At Right time. Definition HRP is defined as the process by which management determines how an org should move from its current manpower position to its desired manpower position.
Objectives of HRP
To ensure optimum use of existing HR. To forecast future requirement for HR. To provide control measures to ensure that necessary HR are available as and when required. To asses the surplus and shortage of HR. (Downsizing). To anticipate the impact of technology on jobs and HR.
Importance of HRP
Outsourcing
HRP
Environmental Uncertainties
Strategy of Organisation
Organisation growth cycle and planning-: HRP is Critical when organisation enters the growth stage. Mature organisations experiences less flexibility and variability, growth slows down. HRP is dominated by Layoffs, Retrenchment, Retirements.
Environmental Uncertainties -: When Political, Social and other changes affect the organisation, HR planners deal with uncertainties. It can result in Recruitment, Training, Succession Planning, Retrenchment etc.
Strategy of Organisation -:
Strategic plan of the organisation defines the organisations HR needs.
Internal Growth Narrow Informal Reactive Inflexible
Growth through Mergers
Outsourcing -: Most organisations have surplus labour and they do not want to worsen the problem by hiring more people. Outsourcing is the option left.
HRP Process
Environment
Org objectives & policies
HR Need Forecast
HR Supply Forecast
HR Programming
HRP Implementation
Surplus
Shortage
Environmental Scanning - : Economic factors Technological Changes Demographic changes Political and legislative issues Social concerns
1) 2)
3)
4) 5)
Org objectives and policies-: HR plans need to be based on org objectives, this implies that the objectives of the HR plan must be derived from Org objectives.
HR Demand forecast-: The process of estimating the future quantity and quality of people required. The basis of forecast will be annual budget and long term corporate plans. Demand forecasting must consider several factors like internal (Budget constraints, employee separations, production level) and external (Competition, laws, change in technology).
Demand forecasting techniques are-: Managerial judgment Ratio trend analysis Delphi technique Regression analysis HR Supply forecasting-:
Supply forecasting measures the number of people likely to be available from within and outside an org.
HR Plan Implementation-: Implementation requires converting an HR plans into action. (Recruitment, Training, Succession plan etc.)
Control and Evaluation -: Critical to have proper control and regular checks to know the achievements of HRP. Surplus Shortage R&S
HRIS
HRIS is a database system that keeps important information about employees in a central and accessible location. The information provided by HRIS can help the organisation to gain competitive advantage. (SWOT of org.)
Basic non confidential information-: Employee name, Org name, Work location
Social security number, Position related information (codes, tittles, effective date)
General information with salary -: Current salary, Effective date, Amount of last change, Reason for last change. Confidential information with salary -: Information of previous category, Educational data
Extended information with salary -: Information of previous category, Bonus information, Projected salary increase information, Performance evaluation information.
Job Analysis
Job analysis is the process of collecting job related information. Such information helps in the preparation of job description and job specification. Job Analysis
Job Description
Job Specification
Information sources
Interview formats
Structured (Checklist) Unstructured
Individual employees Groups of employees Supervisors with knowledge of the job Quick, direct way to find overlooked information. Distorted information
Advantages
Disadvantages
Have employees fill out questionnaires to describe their jobrelated duties and responsibilities.
Quick and efficient way to gather information from large numbers of employees
Expense and time consumed in preparing and testing the questionnaire
Questionnaire formats
Disadvantages
Job Design
Job Design is defines as -: It integrates work content (tasks, function), the rewards & the qualifications required (skills, knowledge) for each job in a way that meets the need of the employees and the organisation.
Job Design
1)
2)
3)
Job Simplification
Job Design
Job Enlargement
Job Enrichment
Job simplification
Complete job is broken down into small subparts. This is done so that the employees can do these jobs without much specialized training.
Dejobbing
Broadening the responsibilities of the companys jobs, and encouraging the employees not to limit themselves to whats on their job descriptions.
External factors leading to dejobbing. Rapid product and technological change Global competition Political instability, Demographic changes Rise of a service economy.
Job Carving
Creating a job that fits the unique abilities of the worker. Matching the workers unique contributions and assets with the needs of an employer.
Recruitment
The process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applicants from which new employees are selected. Recruitment is a process of inviting applications from prospective employees. Recruitment is a positive process.
Determine the present and future requirements of the organisation in relation with the HRP and Job Analysis.
Increase the pool of job candidates at minimum cost. Meet the organisations legal and social obligations regarding the composition of its workforce.
Sources of Recruitment
Internal Sources -: Transfer , Promotions. External Sources-: Press Advertisements , Educational Institutions, Placement Agencies, Employment Exchange, Labour Contractors, Recruitment at factory Gate.
Recruitment Process
Recruiting Required Personnel Search for Perspective Employees
Recruitment Process
Personnel Requisition -: Requisition for recruitment from other deptt., Contains info like no of person required, duties to be performed, desired qualification, time of appointment, info about job. Locating and developing sources of required no and type of employees. Identifying the prospective employees with required characteristics.
Process (contd.)
Communicating the info about the org, the job and the terms and condition of service. Encouraging the identified candidates to apply for jobs in the org. Evaluating the effectiveness of recruitment process.
Alternatives to Recruitment
Temporary Employment
Selection
Selection is the process of picking individuals (out of the pool of job applicants) with requisite qualifications and competence to fill jobs in the organisation. Selection is a negetive process.
Selection Procedure
Preliminary Interview Application blank Selection Test Employment Interview Reference Check and Background Analysis Medical Examination Final Approval Evaluation
Induction Or Orientation
Planned introduction of employees to their jobs, their co workers and the organisation.
Orientation also called Induction, is designed to provide a new employee with the information he or she needs to function comfortably and effectively in the organisation.
Objectives of Induction
To help new comer overcome his natural shyness and nervousness in meeting new people in the environment. To develop among the newcomers a sense of belonging and loyalty to the organisation. To develop a close and cordial relationship between newcomers and the old employees and their supervisor.
Objectives (contd.)
To ensure that the newcomers do not form negative or false impression and attitude towards the organisation or the job because first impression is the last impression. To give newcomers necessary information such as leave rules, rest period, locker room etc.
Placement
Placement refers to the allocation of people to jobs. It includes initial assignment of new employees and promotion, transfer, or demotion of present employees.
Placement Problems
Difficulty with the placement is that we tend to look at the individual but not at the job.
1.
2.
3.
Job in this context may be classified into three categories. Independent Sequential Pooled
T&D
Development refers to learning opportunities designed to help employees grow. (Executive) Education is theoretical learning in classroom.
T&D
The need for training and development is determined by the employees performance deficiency computed as follows-:
Inputs in T & D
Skills Education Development Ethics Attitudinal Changes Decision making and Problem solving skills
T & D offer competitive advantage to a firm by removing performance deficiencies, making staff stay long, minimising accidents, Scrap & damage and meeting future employees needs.
Training Program
Need Assessment Deriving Instructional Objectives Designing Training & Development Program Implementation of Training Program Evaluation
Training Process
Need Assessment -: Diagnoses the present problems & future challenges to be met through training and development. Need Assessment Methods -: As follows Group Assessment (intro of new product.) Org goals & objectives. Personnel skill inventories Exit interviews Customers Satisfaction data
1. 2. 3. 4.
Training Process
Other Causes
Training
Training process
1.
2.
3. 4. 1.
Individual Analysis -: Performance Appraisal Interviews Questionnaires Attitude Surveys. Issues in need assessment -: Org Support Org Analysis Task and KSA analysis Person Analysis
2.
3. 4.
Training Process
Deriving an instructional objectives -: It help to know the inputs for the training program and as well as for the measures of success that would help assess effectiveness of the training program. Designing training & development program -: 1. Who are the trainees? 2. Who are the trainers? 3. Methods & techniques? 4. Level of training? 5. Learning principles? 6. Where to conduct the program?
Training process
Types of training
1. 2.
3.
4. 5. 6.
On the job -: Orientation Training ie Induction Job instruction Info about how to conduct the job. Apprentice training - ITI Internship / Assistantship - Doctors Job rotation - Bank Coaching Cricket team
Types of training
1.
2.
3.
4.
5.
Off the job -: Vestibule Utilisation of actual equipments. Lecture Verbal presentation of information. Role playing is to create realistic situation. Simulation technique that duplicates as nearly as possible actual condition encountered on the job. Laboratory / Sensitivity training smaller group ie 12 or less. Provides awareness about their own behaviour & how other percieve them.
Performance Appraisal
It is the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development.
Promotions based on competence and performance. To confirm the services of probationary employees upon their completing the probationary period satisfactorily.
To decide upon pay rise where regular pay scales have not been fixed. Finally, performance Appraisal can be used to determine whether HR programmes such as selection, training and transfers have been effective or not.
Performance Interview
Use Appraisal Data for Appropriate Purposes
P A Process
Objective Correct or Improve performance Expectation In forming what is expected from employee Design Appraisal Helps in posing question which needs answers like Formal v/s Informal Appraisal, whose performance should be rated (group, team, individual), Who are Raters, What should be rated (Quality, Quantity, Time, Cost effectiveness, Need For Supervision), When to Evaluate, What Methods to be opted.
P A Process
Appraise the Performance Quantity, Quality and time of Output. Performance Interview Use the Appraisal Data HRP, Promotion, Remuneration, Training and Development etc.
Past Oriented Methods - : Rating Scales Excellent-Good-AcceptableFair-Poor (Simplest & most popular) Checklist Yes / No (Is employee interested in job? Does have adequate qualification?) Forced Choice Method Two Choices and no other option (The rater is forced to select statements which are readymade) Learns fast ----- Work hard. Critical Incident Method this approach focuses on certain critical behaviours of an employee
Job Evaluation
Job evaluation seeks to determine the relative worth of each job so that salary differentials can be established.
In job evaluation only jobs are rated unlike in performance appraisal where only job holders are rated.
Job Analysis
Job Description Job Specification
Wage Survey
Employee Classification
Ranking Method The evaluation committee assesses the worth of each job on the basis of its title or on its contents, if the later is available. Job Grading Method There is a yardstick in the form of job classes or grades.
Compensation
Remuneration is the compensation an employee receives in return for his or her contribution to the organisation. Society Some people see pay as a measure of justice. Stockholders To stockholders, executive pay is of special interest, as linking executive pay to company performance is supposed to increase stockholders wealth.
Compensation
Managers Compensation influences their success in two ways. First, it is a major expense. In addition to treating it as an expense, a manager also uses it to influence employee behaviour and improve organisation performance. Employees The pay individuals receive in return for the work they perform is usually the major source of their financial security.
Components of Compensation
1. 2. 3.
4.
Financial : Hourly and monthly rated wage and salary. Incentives ie individual plans and group plans. Fringe benefits ie PF , Gratuity, Medical care, Group Insurance. Perquisites are Company car, furnished house (Offered to retain competent executives)
Components of Compensation
1. 2. 3. 4.
5.
External -: Labour Market Demand & Supply, Going Rate Cost of Living Escalatory clause Labour Unions Labour Laws Payment of wages act1936, Minimum wages act 1948, Payment of Bonus act 1965, Equal remuneration act 1976, Payment of gratuity act 1972. Society
Internal -: Business Strategy Rapid growth = High Pay Job Evaluation and Performance Appraisal Employee Performance , Experience, Seniority
1. 2. 3.
Challenges of Remuneration
Salary reviews Pay secrecy Skill based pay Employee Participation Above Market or Below Market Rates Monetary V/S Non Monetary Rewards Comparable Worth
Concept of Wages
Minimum Wage Wage for sustenance of life plus for preservation of the efficiency of worker. (Determined through Legislation) Fair Wage Equal to the rate prevailing in the same trade and in the neighborhood or equal to the predominant rate for similar work throughout the country. Living Wage Higher than fair wage. Provides for bare essentials plus frugal comforts.
Incentives
Incentives are variable rewards granted to employees according to variations in their performance. The other name for incentives is Payments by results. But the word Incentives is most appropriate because of its motivational content.
Importance of Incentives
Motivation of worker for higher efficiency and greater output. Earning of employees would be enhanced due to incentives. Increased earning helps employee to improve standard of living. Other advantages Reduced Supervision, better utilisation of equipments, reduced lost time, reduced absenteeism and turnover and increased output.
Disadvantages of Incentives
Deteriorate the quality of product as employee want to earn more by producing more quantity of products. When job is restudied there are chances that it may yield in lower earning in terms of earning incentives as new and high challenging jobs offers more scope for earning as compared to old jobs. Increases jealousy among the workers as the person earning less is jealous of the person earning more.
Employee benefits
Employee benefits and services include any benefits that the employee receives in addition to direct remuneration. Employee benefits and services are alternatively known as fringes or hidden payroll.
3)
For fringe benefits three criterias are needed to be fulfilled. It should be computable in terms of money. The amount of benefit is not generally predetermined. No contract, indicating when the sum is payable, should exists.
Fringe benefits
Legally required payments -: Old age, survivors, disability and health insurance. Contingent benefits -: pension plans, group life insurance, group health insurance, maternity leave, sick leave, service awards. Other benefits -: payments for the time not worked like holidays, leaves.
Executive remuneration
1) 2)
3)
4) 5)
Industrial Relations
IR is concerned with the system , rules and procedures used by unions and employers to determine the reward for effort and their conditions of employment, to protect the interest of the employed and their employers, and to regulate the ways in which employers treat their employees.
IR contd
IR is concerned with the relationship between management and workers and the role of regulatory mechanism in resolving any industrial dispute. IR specially covers the following areas-: Collective bargaining Role of management , unions and govt. Machinery for resolution of industrial dispute Individual grievance and disciplinary policy and practice
1) 2) 3) 4)
Approaches to IR
Unitary Approach Direct negotiation with employee and participation of Govt. Tribunals, and unions are not sought. Pluralistic Approach (a) org as coalitions of competing interest, where the managements role is to mediate amongst the different interest group. (b) TU are legitimate representatives of employee interest. (c) Stability in IR is a product of concession and compromises between management and unions.
Approaches to IR
Marxist Approach same as Pluralistic but feels conflict arises not because of rift between management and workers, but because of the division in the society between those who own resources and who have only labour to offer.
Parties to IR
Employees Employee Associations Government
Trade Unions
TU are voluntary organisations of employees or employers formed to promote and protect their interest through collective action. Though the terms employees and employers are used, when we say trade unions they generally refer to employees.
Union Tactics
Unions employ several tactics to deal with management are-: Strike Invoking political patronage Blackmailing Unionising
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2)
3) 4)
Mgmt must decide whether the org should remain union free or allow unionisation. If mgmt decide company should remain union free then they must take steps to keep union away from the org. If unionisation should be allowed, managers must decide what type of union mgmt relations they want. Mgmt must also choose the type of tactic to use while negotiating a new wage settlement.
Bread and Butter V/S Political objective Adversarial V/S Co operative role Traditional issues V/S New services
Acc to Industrial Dispute Act, 1947, industrial dispute mean any dispute or difference between employers and employers or between employers and workmen, workmen and workmen, which is connected with the employment or non employment or terms of employment.
Causes of Disputes
Wage Demands Union Rivalry (Singareni Collieries - 445 TU loss 3.12 million tones) Political Interference (ideology differs, union works on party lines, CITUCommunist love to fight but hate to win so they have not signed any settlement in last 15 years)
Causes of Disputes
a) b)
Unfair Labour Practice - : Management unwillingness to recognise a particular TU and dilatory tactics. Negotiation of settlement of dispute the representatives of employers take the side of management which results in disputes. Multiplicity of Labour Laws
Settlement of Disputes
a) b) c) d) e) f)
Collective Bargaining (reps of employees & employers meet to solve the issue) Collective Bargaining Process-: Preparing for negotiation Identifying bargaining issues Negotiations Reaching the agreement Ratifying the agreement Administration of agreement
Settlement Contd.
Collective Bargaining takes place when representatives of trade union meet management representatives to determine employee wages and benefits and to solve other issues. Collective Bargaining is the most effective method of resolving industrial disputes.
Settlement of Disputes
Grievance Procedure Arbitration Conciliation Adjudication Consultative Machinery
Settlement Contd.
Stage two (Deptt Head) 5 days Stage Three (Divisional Head) 10 days
Fourth Stage (Union)
Settlement Contd
Arbitrations refers to the procedure in which a neutral third party studies the dispute, listen to both the parties and collects the information , and make recommendations which are binding on both the parties. Conciliation -: As per the Industrial Dispute act 1947, Sec 4, says that the govt shall appoint conciliation officers and their main duty is to mediate and promote settlement of Industrial Dispute.
Settlement Contd
Adjudication a mandatory settlement of Industrial Dispute by a labour court or Tribunal. Consultative Machinery
1) NASA Columbia space shuttle broke apart during reentry on Feb 1, 2003. Wing damage sustained during launch by a chunk of fuel tank insulation was cited as the accident cause.
Safety -: refers to the absence of accidents. Stated differently, safety refers to the protection of workers from the danger of accidents. Research says Every twenty seconds of working minute of every hour throughout the World, someone dies as a result of an industrial accident.
External
Minor
Fatal
Disability
Permanent
Partial Total
2)
Need for safety -: Cost saving Direct cost ie compensation and Indirect cost ie loss of production, damages of equipment, wastage of time. Increased productivity Safety promotes productivity, employees feel safe and produce good quality and quantity.
Safety Process -: Strategic choices development of safety policy Organisation for safety Analysis of causes of accidents
Implementation of program
Evaluation of effectiveness
1)
2)
Strategic choices Management must make decision regarding safety of their workers. Some strategic choices are-: Must determine the level of protection. Some co because of financial constraints prefer low level. Must decide whether a safety program will be formal or informal. Formal have written regulation & carefully monitored. Informal are enforced because of pressure and include good training.
1) 2)
3)
4) 5)
Health - : The well being of the employees in an industrial establishment is affected by accidents and by ill health physical as well as mental. Health in Industry can be discussed through following angles-: Physical health Mental health Noise control Stress management Violence at work place
Causes
Lung cancer oven emissions, smokes Leukemia Radiation Reproductive problems Radiation Vision Chemical fumes, Office equip. Hearing High noise level
Mental health -: Specially at executive cadre. Three reasons for this development are mental breakdowns because of pressure & tensions. Mental disturbances because of reduced productivity & lower profits. Mental illness alcoholism & poor human relations.
Noise Control -: Noise can only be minimised but can not be totally eliminated. Constant exposure to noise not only effects hearing ability but also effect the general health of the employees.