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HUMAN RESOURCE MANAGEMENT

SYLLABUS

Manpower Planning, Job Analysis, Job Description, Scientific Recruitment and Selection Methods. Motivating Employees Motivational Strategies, Incentive Scheme, Job-enrichment, Empowerment Job satisfaction, Morale, Personnel Turnover. Performance Appraisal Systems MBO Approach, Performance Counseling, Career Planning. Training and Development Identification or Training Needs, Training Methods, Management Development Programmes.

REFERENCE TEXT

Human Resource Management P. Subba Rao


Personnel Management C. B. Mammoria Dessler : Human Resource Management (Prentice Hall India) Personnel / Human Resource Management : DeCenzo & Robbins (Prentice Hall India) D. K. Bhattacharya Human Resource Management (Excel)

VSP Rao Human Resource Management (Excel)


Gomez : Managing Human Resource (Prentice Hall India)

MANPOWER PLANNING & EMPLOYEE RECRUITMENT

DEFINITION OF MANPOWER PLANNING


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

MANPOWER PLANNING
Company Strategy Job Analysis Performance Appraisal Company Databanks Training Employee Management and Development

What staff do we need to do the job?

What staff is available within our organization?

Is there a match?? What is the impact on Wage and Salary program

If not, what type of people do we need, and how should we recruit them?

JOB ANALYSIS

Job analysis is a formal and systematic process used for obtaining information about the job. It is an investigation of duties and responsibilities necessary to do a job Determination of tasks which comprise the job and of skills, knowledge, abilities and responsibilities required of the worker for a successful performance and which differentiates one job from all others. Job Description

Job Analysis
Job Specification

USES OF JOB ANALYSIS

Planning Recruitment and Selection Training Performance Appraisal Job Evaluation

METHODS OF COLLECTING JOB ANALYSIS DATA


Personal Observation Interview of Employee and Supervisors Put the worker at ease Make the purpose of interview clear Phrase question in such a way that the answer will be in YES or NO Summarize the information obtained before closing the interview Panel of Experts Diary Method Questionnaire Method

IMPACT OF BEHAVIOURAL FACTORS ON JOB ANALYSIS

Exaggerate the Facts Employee Anxieties Resistance to change

JOB DESCRIPTION

It defines the purpose and scope of a job. Describes what job is all about, what are job content, environment and conditions of employment. Contents: A job description usually covers the following information:

Designation Corporate Grade Reporting To Position Reporting to this Position


Sample Job Description 1 Sample Job Description 2

Qualifications Experience Job Summary Main Responsibilities

PROBLEMS WITH JOB DESCRIPTION

It is not easy to reduce all the essential components of the job in the form of a clear and precise document. Job description are sometimes not updated as the job duties change The can limit the scope of activities of the job holder, reducing organizational flexibility.

JOB SPECIFICATION

Job specification summarizes the characteristics needed for completing a job. It spells out the important attributes of a person in terms of education, experience, skills, knowledge and abilities to perform a particular job. This helps the organization to determine what kind of persons are needed to take up specific jobs. Job specifications can be classified into three categories: Essential Attributes Desirable Attributes Contra-Indicators

JOB EVALUATION

Job analysis also helps in finding the relative worth of a job based on criteria such as:

Degree of difficulty in the work Type of work done by the employee Skills and knowledge needed

This, in turn, assists in designing proper wage policies, with internal pay equity between jobs.

IMPORTANCE OF MANPOWER PLANNING

Talent pool Prepare people for future

Smooth transition during expansion


Succession Planning Support to overall business strategy

PROCESS OF HRP

Forecasting the demand for Human Resources Organisational Decisions Workforce Factors

Supply Forecasting Internal Labor Supply External Labour Supply

Determining Manpower Gaps and Formulating HR Plans

FACTORS OF MANPOWER PLANNING


Factors in forecasting Personnel Requirements

Projected Turnovers (as a result of resignation and terminations)

Quality and Nature of your Employees (in relation to what you see as the changing needs of your organisation)

The financial resources available to your organisation

TECHNIQUES TO DETERMINE NO. OF RECRUITS


Study of a firms past employment needs over a period of years to predict future needs.

Trend Analysis

Ratio Analysis

A forecasting technique for determining future needs by using ratios between sales volume and no. of Employee needed.

RECRUITMENT FROM EXTERNAL RESOURCES


Recruiting new staff from external sources will be influenced by several factors

Macro Economic Conditions of a Nation

When the economic conditions are relatively difficult, there will usually be an oversupply, or the no. of applicants will be much higher than the demand. In such a case the company will find it relatively easier to select new employees from the large no of applicants.

RECRUITMENT FROM EXTERNAL RESOURCES


Availability of When the sector is one that is considered as Rare Manpower Sector, the company will have more difficulty in in Desired recruiting staff for this sector. Sector

Company It will tend to be easier for company to find and recruit the best people if the company has a good Reputation reputation.

RECRUITMENT

DEFINITION

Recruitment is a process of locating and encouraging potential applicants to apply for existing or anticipated job openings.

Recruitment aims at Attracting a large no. of qualified applicants who are ready to take up the job if its offered Offering enough information for unqualified persons to self-select themselves out

CONSTRAINTS AND CHALLENGES

Poor image

Unattractive jobs
Limited budgetary support Restrictive policies of government Compensation not matching as per the industry standard Economic Environment

Social Environment

METHODS OF RECRUITMENT

Methods of Recruitment

METHODS OF RECRUITMENT
Internal Method Promotions and Transfers Job Posting Employee Referrals

Direct Method Campus Recruitment


Indirect Method Advertisement Private Employment Search firms Internet Recruitment

EFFECTIVENESS OF RECRUITMENT PROCESS

Cost per hire Time-lapse between recruitment and placement ratio

Applicants performance
Turnover

SELECTION

DEFINITION

To select means to choose.

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 qualified candidates.
How well an employee is matched to a job is very important because it directly affects the amount and quality of the employees work.

SELECTION PROCESS

Selection Interview

BASIC CONCEPT OF SELECTION TEST

The quality of an employee selection test is determined by the three main factors:

Criterion Validity: A type of validity based on showing that scores on the test (predictors) are related to the job performance (criterion). Content Validity: Test that contains fair sample of tasks and skills actually needed for the job. Reliability: The consistency of scores obtained by same person when retested with identical or equivalent test.

SELECTION TESTING

Intelligence Test / Aptitude Test Personality Test Confidence, Emotional balance, behavioral pattern, interpersonal skills, motivation level etc. Simulation tests Assessment Centre Interview

TYPES OF INTERVIEW

Several types of interviews are commonly used depending on the nature and importance of the position to be filled: Non-directive / Unstructured Interview

Directive / Structured Interview Situational Interview Behavioural Interview STAR Technique Stress Interview

Panel Interview

INTERVIEWING MISTAKES

Not asking right question and hence not getting relevant responses Snap Judgments May allow ratings to be influenced by his own likes and dislikes May have forgotten the interviews content after its conclusion Unduly influenced by person origin, cultural background etc.

INTERVIEWING MISTAKES

Halo Affect Positive Horn Affect Negative Candidate order in which you interview also affects how you rate them. Non verbal behaviour Interviewer behaviour Have been under pressure to hire candidates at short notices

INDUCTION

MEANING AND OBJECTIVE

Meaning: Induction means the task of introducing the new employees to the organization and is policies, procedures and rules. Objective: Remove fears Creates good impression Acts as a valuable source of information

INFORMATION TO BE PROVIDED

Explain about the company Show the department Introduce with the colleagues Introduction with the reporting heads Overview of the Job responsibilities, Seating place and relationship with other job Give the companys manual to the new recruits Company policies, rules and disciplinary procedure Give the details about pay, benefits, holidays, leave, etc. Idea about work culture Future training opportunities Career Path

PERFORMANCE MANAGEMENT AND APPRAISAL

PERFORMANCE MANAGEMENT SYSTEM

WHY PERFORMANCE MANAGEMENT

Clarity of expectation Timely recognition and feedback Enhances employees effectiveness by helping to identify their strengths and weaknesses A quality relationship with the line manager where the individual feels that they are listened to and understood as an individual Improves performance and helps in achievement of goal

WHAT IS PERFORMANCE APPRAISAL

Performance Appraisal (PA) refers to all those procedures/tools that are used to evaluate employees Personality Performance Potential of employees PA is the method of evaluating the behaviour of the employees in the workplace, normally including both quantitative and qualitative aspect of the job How the employee is performing How the employee can develop others Planning and organising skills Initiative

OBJECTIVE OF PERFORMANCE APPRAISAL

Provide information about performance ranks Provide a basis for promotion and increments. Identify Training and Development needs Counseling Employees

Career planning decisions

STEPS IN PERFORMANCE APPRAISAL

Define the Job Appraise the performance

Provide feedback

METHODS OF PERFORMANCE APPRAISAL

Individual Evaluation Method:

Graphic Rating Scale Confidential report


Essay evaluation

Critical Incidents
360 Degree Feedback Behaviorally Anchored Rating Scale MBO

METHODS OF PERFORMANCE APPRAISAL

Multiple Person evaluation Method: Ranking Paired comparison

CONFIDENTIAL REPORT

Descriptive report

Prepared at the end of the year Prepared by the employees immediate supervisor The report highlights the strengths and weaknesses of employees

Prepared in Government organizations

Does not offer any feedback to the employee

ESSAY EVALUATION

The rater is asked to express the strong as well as weak points of employees behavior

The rater considers the employees :

Job knowledge and potential

Understanding of companys programs, policies,


objectives etc

Relation with co-workers and supervisors Planning, organizing and controlling ability Attitude and perception

ESSAY EVALUATION

This method has the following limitations:


Highly subjective Supervisor may write biased essay Difficult to find effective writers

A busy appraiser may write the essay hurriedly without assessing properly the actual performance of the worker
If the appraiser takes a long time it becomes uneconomical from the view point of the firm

CRITICAL INCIDENT TECHNIQUE

According to this method the supervisor keeps a log of positive and negative examples (critical incidents) of sub-ordinatess work related behaviour

Every six months the performance of the


subordinates are discussed periodically

The manager periodically records critical


incidents of employees behavior

CRITICAL INCIDENT TECHNIQUE


Limitation of this technique are:

Negative incidents may be more noticeable than positive incidents. Supervisors have a tendency to unload a series of complaints about incidents. Results in very close supervision which may not be liked by the employee. The recording of incidents may be a chore for the manager concerned who may be too busy or forget to do it.

360 DEGREE FEEDBACK


360 Degree Feedback is a multi - rater feedback system where an individual is assessed by a number of assessors including his boss, subordinates, colleagues, internal customers and external customers.

WHAT IS 360 DF?


Feedback collected from

Internal Customers

Boss

Peers

Self

External Customers

Team Members

GRAPHIC RATING SCALE

This is the oldest and most widely method used for performance appraisal. The appraiser has to rate the appraisee in different parameter on a rating scale. Job Knowledge as a parameter might be rated 1 (poorly informed about work duties) to 5 (has complete mastery of all phases of the job). Definition of parameter and definition of scale both are equally important

Graphic Rating Scale Employee Name................... Job title ................. Department .........................
Quantity of work: Volume of work under normal working conditions Quality of work: Neatness, thoroughness and accuracy of work Knowledge of job A clear understanding of the factors connected with the job
Unsatisfactory (1) Fair Satisfacto Good Out (2) ry (4) Standi (3) ng (5)

Attitude: Exhibits enthusiasm And cooperativeness on the job

Graphic Rating Scale Employee Name................... Job title ................. Department .........................

Outstanding: Performance is exceptional in all areas and is recognizable as being far superior to others
Very Good: Performance is of high quality and is achieved on a consistent basis Good: Competent and dependable level of performance. Meets performance standards of the job

Graphic Rating Scale Employee Name................... Job title ................. Department .........................

Improvement Needed: Performance is deficient in certain areas. Improvement is necessary.


Unsatisfactory: Results are generally unacceptable and require immediate improvement. Not Rated: Not applicable or too soon to rate

BEHAVIOURALLY ANCHORED RATING SCALE (BARS)

Combination of Rating Scale and Critical Incidents Techniques of employees performance evaluation.

The critical incidents serve as anchor statements on a scale of ratings.

Rating forms usually contains six to

eight specifically defined performance


dimensions.

HOW TO CONSTRUCT (BARS)

Emphasis is pinpointed on pooling the thinking of people

who will use the scales as both evaluators and evaluees.

Step I: Collect Critical Incidents from Job Holders &

Supervisors.

Step II: Identify performance dimensions Technical competence, Relationship with customers, relationship with peers, meeting day to day deadline etc.

HOW TO CONSTRUCT (BARS)

Step III: Reallocate Incidents: Another group of

participants who also know the job then reallocate the


critical incident

Step IV: Scale the Incidents: The second group then Assigns scale values to the incidents.

Step V: Producing final instrument. Choose about six or seven incidents as the dimensions behavioural anchors.

ADVANTAGES & LIMITATIONS OF BARS

Increased acceptance by supervisors and superiors Job specific Identifies observable and measurable behaviour Reliable and valid method

Lack of result orientation Time consuming and expensive to create BARS Several appraisal forms for different types of Job

RANKING METHOD

Ranking of an employee in a work group is done against that of another employee. Employees are ranked according to their relative levels of job performance In practice, its is very difficult to compare individuals possessing varied behavioural traits. It does not tell how much better / worse an employee is when compared to another employee. No systematic procedure for ranking individuals in the organisation

PAIRED COMPARISON METHOD

Each worker is compared with all the other employees in the group. The comparison is done for every trait. Cant be applicable when the group is large.
As compared to A
B C D E _ + _ _ _ + _ _ + +

B +

C _
+

D +
_ +

E _
+ _ _

6. MANAGEMENT BY OBJECTIVES (MBO)

MBO emphasizes to set specific, measurable goals with each employee and then periodically discuss the employees progress towards these goals.

The technique emphasises on setting goals collectively by

superior and subordinates.

MBO focuses attention on what must be accomplished (goals) rather than how it is to be accomplished.

It is a kind of goal setting and appraisal program.

STEPS INVOLVED IN MBO


Set Organisational goals Set Departmental goals

Discuss Departmental goals


Define expected results (Set Individual Goals) Performance Reviews Provide feedback

TYPES OF APPRAISAL INTERVIEW

Satisfactory and Promotable Satisfactory but Not Promotable Unsatisfactory but Correctable Unsatisfactory and Uncorrectable

PROVIDING FEEDBACK

Adequate Preparation Talk in terms of objective work data Dont get personal Encourage the person to talk Dont tiptoe around Proper Timing Help the appraisee Action Plan

PROBLEMS WITH PERFORMANCE APPRAISAL


Unclear Standards Judgement Errors Halo Effect Horn Effect Leniency Central Tendency Recency Effect Poor appraisal forms Lack of Rater preparedness

MANAGING CAREERS OF EMPLOYEES

EMPLOYEE TYPE

Low potential Low Performance Low potential High Performance Low performance High Potential High performance High potential

CAREER PLANNING

Career Planning:

The deliberate process through which employees becomes aware of personal skills, interests, knowledge, motivations, and other characteristics; acquires information about opportunities and choices; identifies career related goals; establishes action plan to attain specific goals

MANAGING PROMOTIONS AND TRANSFERS

Decision 1: Is seniority or competence the rule? Decision 2: How should we measure competence? Decision 3: Is the process formal or informal? Decision 4: Vertical, Horizontal, or Other?

Decision 5: Transfers?

CAREER DEVELOPMENT TODAY


HR Activity HR Planning Training and Development Performance Appraisal Recruiting Traditional Focus
Analysis of Job, Skills required, tasks for present and future Provide opportunities for learning and development Rating and / or Rewards Matching organisations need with qualified individuals

Career Development Focus


Adds information about individual interests, preferences, likes etc. Directly aligned and Linked to career path in the organisation Adds development plan and individual goal setting Matched individual and jobs based on a number of variables Reward for non job related activities as well

Compensation and Reward for productivity Benefits

ROLES IN CAREER DEVELOPMENT

Individual Manager Organisation

ROLES IN CAREER DEVELOPMENT

Individual: Accept responsibility for your own career Assess your interest, skills and values Seek out career information and resources Establish goals and career plans Utilize development opportunities Talk to manager about your career Follow through on realistic career plans

ROLES IN CAREER DEVELOPMENT

Manager:

Provide timely performance feedback

Provide support in development


Participate in career development discussion

ROLES IN CAREER DEVELOPMENT

Organisation:

Provide training and development opportunities

Provide career information and career programs


Offer career options

INNOVATIVE CORPORATE CAREER DEVELOPMENT INITIATIVES

Provide each employee with an individual budget Offer on-site or online career centers Encourage role reversal Establish a Corporate Campus

Provide career coaches


Provide goal setting and career planning workshop

TRAINING AND DEVELOPMENT

TRAINING

Any attempt to change an employees current and future performance by changing his knowledge, skills and attitude can be termed as training

TO TRAIN OR NOT
High

Problem: Low Motivation Method Assess personal consequences/ rewards system

Problem: Systemic

Job Knowledge

Method Consider system issues, problem is out of control of the employee


Problem: Lack of Knowledge or Tools Method Training

Problem: Bad Fit Method Consider improper placement of employee in the position
Low Low

High

Employee attitude/desire to perform the job

IMPORTANCE & NEED OF TRAINING

Aids in new entrants attaining role clarity

To bridge gap between skills requirement and skills availability


Promotions Improves quality and productivity Meet organizational objectives Improves organizational climate

To

support personal growth and development

THEN WHY IS TRAINING OFTEN NEGLECTED?


Training time Not knowing exactly what you want your people to do and how

Costs

Short-term worker

Employee turnover

TRAINING CYCLE
Training Need Assessment

Evaluation

Implementation

TRAINING NEED ASSESSMENT

Organisational Analysis Analysis of Organization's Objectives Resources utilization analysis Environmental Scanning Organisational Climate analysis Task or Role Analysis Performance Standards The task they have to discharge Person Analysis

IMPLEMENTATION

Selecting the Trainees Selecting the Trainer Selecting the Venue Developing Training Program

Required arrangements before the training session

EVALUATION

Levels of evaluation

How did participants react? What did participants learn? How did participants behaviour change? Impact on Business Results?

COMPENSATION MANAGEMENT

REMUNERATION MODEL
Job Description Job Evaluation

Pay Survey

Job Hierarchy

Pricing Jobs

OBJECTIVES OF COMPENSATION PLANNING


Internal equity External equity Individual equity Attract talent Retain talent Ensure equity Desired behaviour Control costs

FACTORS AFFECTING COMPENSATION

Demand and Supply of employable workforce

Labour unions
Cost of living Industry standards Ability to pay Job requirements Compensation philosophy of the organisation

COMPONENTS OF REMUNERATION

Components of Remuneration are: Salary Incentives Fringe benefits Perquisites Flexible Benefits

COMPONENTS OF REMUNERATION

Salary: Direct remuneration received by employee for his/her job Incentives: Additional payment linked to productivity, achievements of targets or saving costs etc. Fringe benefits: Provided to the employees either having long-term impact like provident fund, gratuity, pension; or occurrence of certain events like medical benefits, accident relief, health and life insurance; Fringe benefits are taxable on the hands of employer

COMPONENTS OF REMUNERATION

Perquisites: These are normally provided to managerial personnel either to facilitate their job performance or to retain them in the organization. Such perquisites include company car, club membership, free residential accommodation, paid holiday trips, stock options, etc. Perquisites are taxable on the hands of employer Flexible Benefits: This type of benefits allows employees to chose benefits that suits their needs.

INCENTIVE PAYMENTS

Incentives are variable rewards granted to employees according to variations in their performance. Importance Greater Output Reduced supervision High Efficiency High Motivation Disadvantages Deteriorated Quality Jealousy feeling Unwanted Stock

TYPES OF INCENTIVE SCHEMES

Individual Incentive Schemes Group Incentive Schemes

Company Wide Incentive Plans

IMPORTANCE

Image Building

Institutional effectiveness
Attract talent
Effective Compensation

Ensure Equity

Legal Compliance

Administrati vely Efficient

Motivate & Retain Staff

Employee Management

Reward Valued Behavior

CHALLENGES OF REMUNERATION
Skill based Pay Monetary Vs. Non Monetary Rewards

Salary Reviews

Remuneration
Below Market or Above Market Rates Comparable Worth

Pay Secrecy

COMPENSATION MATRIX
HIGH COMPENSATION LOW COMMITMENT HIGH COMPENSATION HIGH COMMITMENT

Hired Guns
LOW COMPENSATION LOW COMMITMENT

Professionals
LOW COMPENSATION HIGH COMMITMENT

Workers as commodity

Family oriented organization