Professional Documents
Culture Documents
Career It may be defined as a succession of related jobs, arranged in hierarchical order, through which a person moves in an organization.
Career Planning
Career planning can be defined as a sequence of separate but related work activities that provides continuity, order and meaning in a persons life.
To correct employee placement. To reduce employee dissatisfaction and turnover. To improve motivation and morale.
It helps in making choices with respect to occupation, organization, job assignment and self-development measures. Career pathing, personnel skills inventories, career information systems and career counseling are different career planning activities in an organization.
2. Organizational Career Planning :- is a map of sequence of jobs for an employee within the organization itself. Human Resource Planning HRP provides higher management with the idea on the inventory of skills and potential available in the organization based on which, expansion, technology up gradation , etc are undertaken by the organization.
Certain basic information's required for manpower planning are inventory of manpower needs in terms of number, types, levels and time, possible changes in functions and activities with the passage of time. HRP need desired behavioral and attitudinal changes to meet the manpower needs, training opportunities, resources and training time etc .
Succession Planning It identifies the likely vacancies for higher level executives and locating likely successors to man such vacancies.
Internal promotions ,up gradation and transfers motivate the employees, boost up their morale and also increased their job satisfaction. Increased job satisfaction enhances employee commitment and creates a sense of belongingness and loyalty to the organization.
Employee will await his turn of promotion rather than changing to another organization. It decreases employee turnover. It improves employees performance on the job by tapping their potential abilities and further employee growth. It satisfies employees needs.
It continuously satisfies employees expectations, and thus minimizes employees frustration. It attract and retain people from different cultures, enhances cultural diversity. It projects employees interest, thus promotes organizations goodwill.
Relating specific jobs to different career opportunities. Establishing realistic goals both short-term and long-term. Formulating career strategy covering areas of change and adjustment. Preparing and implementing action plan including acquiring resources for achieving goals.
To design a suitable career development program it is essential to understand the different career stages or development cycles of an individual employee. Career development cycle may be grouped under following four categories.
A. B. C. D.
Succession Planning
Succession planning is used to identify, develop and make the people ready to occupy higher level jobs as and when they fell vacant.
It( SP) deals with future needs in two ways : One covers the range from near future (simple filling the vacancies caused by labor turnover.) The other deals with the far distant future.(The strategic process).Here the help of training professional need to be used to make strategic decisions to make business effective.
Provide a powerful link between the business needs and the need for performance changes/training needs. It helps in retaining the best talents.
BUSINESS NEEDS
Manpower Audit
Man power audit is an overall quality control check on HR activities in a division or company and an evaluation of how these activities support the organizations strategy.
HRM OBJECTIVES
HRM ACTIVITIES
HRM AUDIT
HRM OUTCOME S
To know the effectiveness of HR policies and practices initiated. Finding critical personnel problem Ensuring timely compliance with legal requirements. Reduction of HR cost through effective personnel procedures.
To increase acceptance of necessary changes in the HR department. A through review of the departments information system.
APPROACHES
COMPARISON OUTSIDE AUTHORITY STATISTICAL COMPLIANCE MBO
EVALUATION REPORT
CORPORATE STRATEGY
FEEDBACK
The process of HR audit constitutes of : Step -1-Scope of Audit Step -2- Approaches to HR Audit Step -3 Human Resource Research Step -4- Evaluation Report
A- Audit of HR Function
The above involves audit of all HR activities. For each activity, the auditors must :Determine the objective of each activity Identify who is responsible for its performance. Review the performance Develop an action plan. To correct deviations if any between results and goals. Follow-up-the action plan
C- Audit of HR Climate
HRM climate has an impact on employee motivation, moral and job satisfaction. The quality of the climate can be measured by examining the following :Employee turnover Absenteeism Accidents Attitude surveys
HRM is affected by corporate strategy Understanding the strategy has strong implications for HR planning, staffing, remuneration, HR and other HR activities. HR professionals strongly influence the success of corporate strategy.
Compliance Approach past actions needs to be complied with legal requirements and company policies and procedures like auditing managerial compliance. MBO Approach creates specific goals against which performance can be measured. This is meant for specialists and operating managers to set objectives in their areas of responsibility.
Recent industrial settlements. Job analysis Job satisfaction surveys Survey of employees needs Attitude survey towards reward system. Areas of high accident frequency. Findings on the above topics shall constitute the basis for HR audit.
Importance of HR Accounting(HRA)
HRA projects How the organization makes investments in its people. How the values of employees increases by training and experience over a period of time. The above mentioned information on human resources facilitates effective management in the organization.
HRA projects two categories of information's regarding human resources in the organization (A)Basic information about human resources : Number of employees Categories of employees Grades of employees Total value of human resources Value per employee.
(B) Human Resource Acquisition Number of employees acquired during the year Cost of acquisition Levels for which they were required Human Resource Development All information's pertaining to HRD activities of the organization
Human resource maintenance Costs related to human resource maintenance Human resource separation Costs related to HR separation, attrition rate etc Details of benefits provided to the employees.
(B) Monetary Measurement Approach : Capitalization of historical costs method Replacement cost Opportunity cost Economic value method Present value method
HR Measurement Metrics
An organizations competitive advantage largely depends on the way it manages its largest asset-its people. Human capital management (HCM) is considered to be vital for the fundamental success of a business, while effective measurement is crucial to deliver effective HCM.
A broad human resource measurement policy enables the organizational management to collect consistent information about the employee population, that improves decision making. This measurement policy also ensures that management and development activities remain relevant with overall business strategy.
With a sound HR metrics program, HR management can make business decisions that are based on cold facts rather than gut feeling to back up business cases and request for resource.
HR Metrics
The most widely used HR metrics covers the following : Employee attitudes Employee turnover Employee skill levels Out sourcing costs Service centre operations Staffing process Training programs utilization and effectiveness.
HR Metrics Process
Each metric contains two to five indicators. For example- employee attitude metric contains the following indicators:Job contentment (the percentage of employees satisfied with their job) Manager contentment (the percentage of employees satisfied with their manager)
In addition to numbers such as head counts, which are normally published in annual reports, Deutsche bank provides the following information.
1999
66
1998
n/a
Absentee rate
Employees leaving bank for a new job Expenses for Training (in Euros) Employees purchasing shares Managers in Global Equity Plan
2.3 %
7.8 % 237.2 65 % 77 %
2.4 %
6.8 % 222.4 65 % 79 %
2.7 %
5.7 % 201.7 62 % 83 %
HR measurements have significant implications for all areas of the business performance. For instance, employee attitude and turnover metrics are reported to have key influence on decision making in the organization.