Refer TLP provided

Human Resource Management P. Subba Rao

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)
Human Resource Management Seema Sanghi
Human Resource Management P. Jyothi and D. N. Venkatesh
 What is HRM
Why HRM
Why employee leaves?
Evolution of HRM
Difference between Personnel
Management and Modern HRM
 Industrial Revolution Era
Trade Unionism Era
Scientific Management Era
Human Relations Movement Era
Behavioural Sciences Era
Contemporary HRM
 Beliefs and Personnel HRM
Assumptions Management
Contract Written Contract Beyond written
Contract
Rules Clear Rules Can do attitude
impatience with
rules
Guide to Procedures, Rules, Customer Needs,
management laws etc Flexibility,
actions commitment
Behaviours In line with In line with Values
customs and and Mission
norms
Managers task Monitoring Nurturing
 Strategic Personnel HRM
Aspects Management
Key Relations Labour Customers
Management
Initiatives Piecemeal Integrated

Speed of Decision Slow Fast

 Line Personnel HRM
Management Management
Management Role Transactional Transformational
leadership
Key Managers Personnel and IR Line managers
experts
Skills Negotiation Facilitation
 Key Levers Personnel HRM
Management
Selection Qualification Skill based

Pay Qualification and Skill and

Experience based Performance
based
Communication Restricted / Indirect Increased / Direct

Job Design Division of Labour Team Work

Training and Controlled access Learning

Development to training Organisation
 HRPisdeterminingthefutureHR
requirementsandhowthepresentHR
canbeutilizedforthesame,orifin
presentHRcannotmeetthe
requirementthenplanningforfuture.
ConditionsthatnecessitateHRP
EconomicDevelopment

OrganizationalProductivity/Plans/Strategies

Expansion/Growth/Diversification

Promotionsofemployees

Organizationalchange
 FactorsinforecastingPersonnel
Requirements

Qualityand
Projected Thefinancial
Natureofyour
Turnovers(asa resources
Employees(in
resultof availableto
relationtowhat
resignationand your
youseeasthe
terminations) organisation
changingneeds
ofyour
organisation)
 EmployeePromotions

Availabilityofrequiredtalentinexternallabourmarket

Availabilityofdesiredmanpowerindesiredsector

Populationmovementtrend

MacroEconomicconditions

CompanyReputation
 Trend
Analysis

Ratio
Analysis
 Delphi
Techniques
 Jobanalysisisaformalandsystematicprocessusedforobtaining
informationaboutthejob.
Itisaninvestigationofdutiesandresponsibilitiesnecessarytodoajob
Determinationoftaskswhichcomprisethejobandofskills,knowledge,
abilitiesandresponsibilitiesrequiredoftheworkerforasuccessful
performanceandwhichdifferentiatesonejobfromallothers.

JobDescription

JobAnalysis

JobSpecification
 PersonalObservation
InterviewofEmployeeandSupervisors
Puttheworkeratease

Makethepurposeofinterviewclear

PhrasequestioninsuchawaythattheanswerwillbeinYES
orNO
Summarizetheinformationobtainedbeforeclosingthe
interview
PanelofExperts
DiaryMethod
QuestionnaireMethod
 ExaggeratetheFacts
EmployeeAnxieties
Resistancetochange
 Itdefinesthepurposeandscopeofajob.
Describeswhatjobisallabout,whatarejobcontent,
environmentandconditionsofemployment.
Contents:Ajobdescriptionusuallycoversthefollowing
information:
Designation Qualifications
CorporateGrade Experience
ReportingTo JobSummary
PositionReportingto MainResponsibilities
thisPosition
 Jobspecificationsummarizesthecharacteristicsneededfor
completingajob.
Itspellsouttheimportantattributesofapersonintermsof
education,experience,skills,knowledgeandabilitiestoperforma
particularjob.
Thishelpstheorganizationtodeterminewhatkindofpersonsare
neededtotakeupspecificjobs.
Jobspecificationscanbeclassifiedintothreecategories:
EssentialAttributes

DesirableAttributes

ContraIndicators
 Jobanalysisalsohelpsinfindingtherelativeworthofajobbased
oncriteriasuchas:

Degreeofdifficultyinthework
Typeofworkdonebytheemployee
Skillsandknowledgeneeded

This,inturn,assistsindesigningproperwagepolicies,with
internalpayequitybetweenjobs.
 Recruitmentisaprocessoflocatingandencouraging
potentialapplicantstoapplyforexistingor
anticipatedjobopenings.

Recruitmentaimsat
Attractingalargeno.ofqualifiedapplicantswho
arereadytotakeupthejobifitsoffered
Offeringenoughinformationforunqualified
personstoselfselectthemselvesout
 Poorimage

Unattractivejobs

Limitedbudgetarysupport

Restrictivepoliciesofgovernment

Compensationnotmatchingaspertheindustrystandard

EconomicEnvironment

SocialEnvironment
InternalMethod
PromotionsandTransfers
JobPosting
EmployeeReferrals

DirectMethod
CampusRecruitment

IndirectMethod
Advertisement
PrivateEmploymentSearchfirms
InternetRecruitment
 Costperhire

Timelapsebetweenrecruitmentandplacementratio

Applicantsperformance

Turnover
 Toselectmeanstochoose.

Selectionistheprocessofpickingindividualswhohave
relevantqualificationstofilljobsinanorganization.

Thebasicpurposeistochoosetheindividualwhocanmost
successfullyperformthejob,fromthepoolofqualified
candidates.

Howwellanemployeeismatchedtoajobisveryimportant
becauseitdirectlyaffectstheamountandqualityofthe
employeeswork.
SelectionInterview
 Thequalityofanemployeeselectiontestisdeterminedbythe
threemainfactors:

CriterionValidity:Atypeofvaliditybasedonshowing
thatscoresonthetest(predictors)arerelatedtothejob
performance(criterion).

ContentValidity:Testthatcontainsfairsampleoftasks
andskillsactuallyneededforthejob.

Reliability:Theconsistencyofscoresobtainedbysame
personwhenretestedwithidenticalorequivalenttest.
 Severaltypesofinterviewsarecommonlyuseddependingonthe
natureandimportanceofthepositiontobefilled:
Nondirective/UnstructuredInterview

Directive/StructuredInterview

SituationalInterview

BehaviouralInterviewSTARTechnique

StressInterview

PanelInterview
 Notaskingrightquestionandhencenotgettingrelevant
responses
SnapJudgments
Mayallowratingstobeinfluencedbyhisownlikesand
dislikes
Mayhaveforgottentheinterviewscontentafterits
conclusion
Undulyinfluencedbypersonorigin,culturalbackgroundetc.
 HaloAffectPositive
HornAffectNegative
Candidateorderinwhichyouinterviewalsoaffectshowyou
ratethem.
Nonverbalbehaviour
Interviewerbehaviour
Havebeenunderpressuretohirecandidatesatshortnotices
 Meaning:
Inductionmeansthetaskofintroducingthenewemployeesto
theorganizationandispolicies,proceduresandrules.

Objective:
Removefears

Createsgoodimpression

Actsasavaluablesourceofinformation
 Explainaboutthecompany
Showthedepartment
Introducewiththecolleagues
Introductionwiththereportingheads
OverviewoftheJobresponsibilities,Seatingplaceand
relationshipwithotherjob
Givethecompanysmanualtothenewrecruits
Companypolicies,rulesanddisciplinaryprocedure
Givethedetailsaboutpay,benefits,holidays,leave,etc.
Ideaaboutworkculture
Futuretrainingopportunities
CareerPath
 Clarityofexpectation

Timelyrecognitionandfeedback

Enhancesemployeeseffectivenessbyhelpingtoidentifytheir
strengthsandweaknesses

Aqualityrelationshipwiththelinemanagerwheretheindividual
feelsthattheyarelistenedtoandunderstoodasanindividual

Improvesperformanceandhelpsinachievementofgoal
 PerformanceAppraisal(PA)referstoallthoseprocedures/toolsthat
areusedtoevaluateemployees
Personality

Performance

Potentialofemployees

PAisthemethodofevaluatingthebehaviouroftheemployeesinthe
workplace,normallyincludingbothquantitativeandqualitative
aspectofthejob
Howtheemployeeisperforming

Howtheemployeecandevelopothers

Planningandorganisingskills

Initiative
 Provideinformationaboutperformanceranks

Provideabasisforpromotionandincrements.

IdentifyTrainingandDevelopmentneeds

CounselingEmployees

Careerplanningdecisions
 DefinetheJob

Appraisetheperformance

Providefeedback
 IndividualEvaluationMethod:

GraphicRatingScale
Confidentialreport
Essayevaluation
CriticalIncidents
360DegreeFeedback
BehaviorallyAnchoredRatingScale
MBO
 MultiplePersonevaluationMethod:

Ranking

Pairedcomparison
 Descriptivereport
Preparedattheendoftheyear
Preparedbytheemployeesimmediatesupervisor
Thereporthighlightsthestrengthsandweaknessesof
employees
PreparedinGovernmentorganizations
Doesnotofferanyfeedbacktotheemployee
 Theraterisaskedtoexpressthestrongaswellasweak
pointsofemployeesbehavior
Theraterconsiderstheemployees:
Jobknowledgeandpotential
Understandingofcompanysprograms,policies,
objectivesetc
Relationwithcoworkersandsupervisors
Planning,organizingandcontrollingability
Attitudeandperception


Thismethodhasthefollowinglimitations:
Highlysubjective
Supervisormaywritebiasedessay
Difficulttofindeffectivewriters
Abusyappraisermaywritetheessayhurriedlywithout
assessingproperlytheactualperformanceoftheworker
Iftheappraisertakesalongtimeitbecomes
uneconomicalfromtheviewpointofthefirm
 Accordingtothismethodthesupervisorkeeps

alogofpositiveandnegativeexamples

(criticalincidents)ofsubordinatesswork

relatedbehaviour

Performanceofthesubordinatesare

discussedperiodically

Themanagerperiodicallyrecordscritical

incidentsofemployeesbehavior
Limitationofthistechniqueare:

Negativeincidentsmaybemorenoticeablethanpositive
incidents.
Supervisorshaveatendencytounloadaseriesofcomplaints
aboutincidents.
Resultsinveryclosesupervisionwhichmaynotbelikedbythe
employee.
Therecordingofincidentsmaybeachoreforthemanager
concernedwhomaybetoobusyorforgettodoit.
360DegreeFeedbackisamultiraterfeedbacksystem
where an individual is assessed by a number of
assessors including his boss, subordinates, colleagues,
internalcustomersandexternalcustomers.
Feedbackcollected
from

Boss
Internal
Customers

Peers Self

External Team
Customers Members
 Thisistheoldestandmostwidelymethodusedfor
performanceappraisal.

Theappraiserhastoratetheappraiseeindifferent
parameteronaratingscale.

JobKnowledgeasaparametermightberated1(poorly
informedaboutworkduties)to5(hascompletemasteryof
allphasesofthejob).

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

Quantity of work: Volume Unsatisfact Fai Satisfac Goo Out

of ory r tory d Stan
work under normal (1) (2) (3) (4) di
working n
g
conditions
(5)
Quality of work:

Neatness,
thoroughness and
accuracy
of work Knowledge of job
A clear understanding of

the
factors connected with
 Graphic Rating Scale
Employee Name................... Job title .................
Department .........................
Outstanding:Performanceisexceptionalinallareasandis
recognizableasbeingfarsuperiortoothers

VeryGood:Performanceisofhighqualityandisachieved
onaconsistentbasis

Good:Competentanddependablelevelofperformance.
Meetsperformancestandardsofthejob
 Graphic Rating Scale
Employee Name................... Job title .................
Department .........................
ImprovementNeeded:Performanceisdeficientincertain
areas.Improvementisnecessary.

Unsatisfactory:Resultsaregenerallyunacceptableand
requireimmediateimprovement.

NotRated:Notapplicableortoosoontorate
 BARSmethodfocusesonbehaviourrequiredtosuccessfully
performajob.
ThefocusofBARSisnottheperformanceoutcomebythe
functionalbehavioursdemonstratedonthejob.
Eachjobhasseveralbehaviouraldimensionsandaseparatescale
isdevelopedforeachoneofthem.
Amanagerratesapersononthescaleonthebasisofanchorsfor
eachdimensions
 SelfConfidence
Communicationskill
AnalyticalSkill
Initiative
TechnicalExpertise
StressManagement
BusinessAcumen
 SelfConfidence:Faithinonesownideasandabilitytobe
successful

Communicationskill:Expressingoneselfclearlyin
conversationsandinteractionswithothers

AnalyticalSkill:Approachingaproblembyusingalogical,
systematic,sequentialapproach

Initiative:Identifyingwhatneedstobedoneanditbeforebeing
askedtoorrequiredbythesituation.
 TechnicalExpertise:Depthofknowledgeandskillinatechnical
area.
StressManagement: Theabilitytokeepfunctioningeffectively
whenunderpressureandmaintainselfcontrolinthefaceof
hostilityorprovocation.

BusinessAcumen:Abilitytoperformwithinsight,acuteness,
andintelligenceintheareasofbusinessand/orindustry.OR
AbilitytorecogniseandexploitBusinessOpportunitiesthereby
bringingrevenuetotheorganisation
 Atotalevaluationisobtainedbycombiningtheratingsofallthe
dimensions
Requiresaseriesofmeetingsofmanagersandjobincumbentsto
identifythevariousdimensionsleadingtoeffectingperformance
Thenthebehaviouranchorsarewrittenandbeforeitisputto
practice,consensusofthegroupmembersissought.
Becauseisitdevelopedthroughparticipation,thereisan
advantageofacceptanceinthismethod.
Italsohelpsingivingspecificfeedbackrelatedtothejobandwhat
canbedonebetter.
 Increased Lackofresult
acceptanceby orientation
supervisorsand Timeconsumingand
superiors expensivetocreate
Jobspecific BARS
Identifies Severalappraisal
observableand formsfordifferent
measurable typesofJob
behaviour
Reliableandvalid
method
 Rankingofanemployeeinaworkgroupisdone
againstthatofanotheremployee.

Employeesarerankedaccordingtotheirrelative
levelsofjobperformance

Inpractice,itsisverydifficulttocompare
individualspossessingvariedbehaviouraltraits.

Itdoesnottellhowmuchbetter/worsean
employeeiswhencomparedtoanotheremployee.

Nosystematicprocedureforrankingindividuals
intheorganisation
 Eachworkeriscomparedwithalltheotheremployeesin
thegroup.
Thecomparisonisdoneforeverytrait.
Cantbeapplicablewhenthegroupislarge.

Ascomparedto A B C D E
A + _ + _
B _ + _ +
C + _ + _
D _ + _ _
E _ _ + +
 MBOemphasizestosetspecific,measurablegoalswitheach
employeeandthenperiodicallydiscusstheemployeesprogress
towardsthesegoals.
Thetechniqueemphasisesonsettinggoalscollectivelyby
superiorandsubordinates.
MBOfocusesattentiononwhatmustbeaccomplished(goals)
ratherthanhowitistobeaccomplished.
Itisakindofgoalsettingandappraisalprogram.
 SetOrganisationalgoals
SetDepartmentalgoals
DiscussDepartmentalgoals
Defineexpectedresults(SetIndividualGoals)
PerformanceReviews
Providefeedback
 AdequatePreparation
Talkintermsofobjectivework
data
Dontgetpersonal
Encouragethepersontotalk
ProperTiming
Helptheappraisee
ActionPlan
 UnclearStandards
JudgementErrors
HaloEffect

HornEffect

Leniency

CentralTendency

RecencyEffect

Poorappraisalforms

LackofRaterpreparedness
 SatisfactoryandPromotable

SatisfactorybutNotPromotable

UnsatisfactorybutCorrectable

UnsatisfactoryandUncorrectable
 LowpotentialLowPerformance

LowpotentialHighPerformance

LowperformanceHighPotential

HighperformanceHighpotential
 CareerPlanning:

Thedeliberateprocessthroughwhich
employeesbecomesawareofpersonalskills,interests,
knowledge,motivations,andothercharacteristics
acquiresinformationaboutopportunitiesandchoices;

identifiescareerrelatedgoals;

establishesactionplantoattainspecificgoals
 Decision1:Isseniorityorcompetencetherule?

Decision2:Howshouldwemeasurecompetence?

Decision3:Istheprocessformalorinformal?

Decision4:VerticalorHorizontal?

Decision5:Transfers?
 HRActivity TraditionalFocus CareerDevelopment
Focus
HRPlanning AnalysisofJob,Skills Addsinformationabout
required,tasksforpresentand individualinterests,
future preferences,likesetc.
Trainingand Provideopportunitiesfor Directlyalignedand
learninganddevelopment Linkedtocareerpathinthe
Development
organisation
Performance Ratingand/orRewards Addsdevelopmentplan
andindividualgoalsetting
Appraisal
Recruiting Matchingorganisationsneed Matchedindividualand
withqualifiedindividuals jobsbasedonanumberof
variables
Compensationand Rewardforproductivity Rewardfornonjobrelated
activitiesaswell
Benefits
 Individual

Manager

Organisation
 Individual:

Acceptresponsibilityforyourowncareer
Assessyourinterest,skillsandvalues

Seekoutcareerinformationandresources

Establishgoalsandcareerplans

Utilizedevelopmentopportunities

Talktomanageraboutyourcareer

Followthroughonrealisticcareerplans
 Manager:

Providetimelyperformancefeedback

Providesupportindevelopment

Participateincareerdevelopmentdiscussion
 Organisation:

Providetraininganddevelopmentopportunities

Providecareerinformationandcareerprograms

Offercareeroptions
 Provideeachemployeewithanindividualbudget

Offeronsiteoronlinecareercenters

Encouragerolereversal

EstablishaCorporateCampus

Providecareercoaches

Providegoalsettingandcareerplanningworkshop
Anyattempttochangeanemployees
currentandfutureperformanceby
changinghisknowledge,skillsand
attitudecanbetermedastraining
 High
Problem: Low Problem: Systemic
Motivation

Method Method
Assess personal Consider system issues,
Job
consequences/ rewards problem is out of control of
Knowledge
system the employee

Problem: Bad Fit Problem: Lack of

Knowledge or Tools
Method
Consider improper Method
placement of employee Training
in the position

Low
Aidsinnewentrantsattainingroleclarity

Tobridgegapbetweenskillsrequirementandskillsavailability

Promotions

Improvesqualityandproductivity

Meetorganizationalobjectives

Improvesorganizationalclimate

Tosupportpersonalgrowthanddevelopment
 OrganisationalAnalysis
AnalysisofOrganization'sObjectives

Resourcesutilizationanalysis

EnvironmentalScanning

OrganisationalClimateanalysis

TaskorRoleAnalysis
PerformanceStandards

Thetasktheyhavetodischarge

PersonAnalysis
 PrioritySetting

ObjectiveSetting

SpecificationofLearners

DesignoftheTrainingonthebasisofobjectives
 SelecttheTrainers

ContentDevelopment

DevelopmentofCourseHandout

DetailedCosting
 PreandPostcoursebriefingofTrainess

GeneratingInterestandparticipationamongstTrainess

TrainingAdministration

HandlingConflictsinappropriateway
 Levelsofevaluation

Howdidparticipantsreact?
Whatdidparticipantslearn?
Howdidparticipantsbehaviourchange?
ImpactonBusinessResults?
JobDescription JobEvaluation

PaySurvey JobHierarchy/InternalPay
equityandbenchmark

PricingJobs
 EnsuringInternalequity

EnsuringExternalequity

Attracttalent

Retaintalent

Desiredbehaviour

Controlcosts
 DemandandSupplyofemployableworkforce

Labourunions

Costofliving

Industrystandards

Abilitytopay

Govt.legislation

Compensationphilosophyoftheorganisation
 FindingtheworthoftheJob

Measurementofinputrequiredofemployeesforminimum
jobperformanceandtotranslatesuchmeasureinto
monetaryterms
PrerequisitesofJobevaluation
JobDescriptions
 NonAnalyticalMethod
Ranking
JobClassification
InternalBenchmarking

AnalyticalMethod
PointSystem
FactorComparison
 ComponentsofRemunerationare:

BasicSalary
DearnessAllowance

HRA(generally3035%ofbasicsalary)andCCA

EmployeeBenefits

Incentives
 Traditional
HealthInsurance

LifeInsurance

Leave

Overtime
 NonTraditional
EmployeeAssistanceProgram

ESOPs

Flexitime

Goldenhandshake

FlexibleBenefits

DayCare

TuitionFeesReimbursement

Perquisites
 Incentivesarevariablerewardsgrantedtoemployeesaccording
tovariationsintheirperformance.
Importance
GreaterOutput

Reducedsupervision

HighEfficiency

HighMotivation

Disadvantages(ManufacturingOrganisation)
DeterioratedQuality

Jealousyfeeling

UnwantedStock
 IndividualIncentiveSchemes
VariablePay
BonusCashorNonCash,JoiningBonus,RetentionBonus,Spot
Bonus

GroupIncentiveSchemes

CompanyWideIncentivePlans
 Organizationalchangeistheprocessbywhich
organizationmovefromtheirpresentstateto
somedesiredfuturestatetoincrease
effectiveness

Itmaybereactiveorproactive
 INTERNAL FORCES EXTERNAL FORCES

Workforce Technology
ManagerialPersonnel MarketCondition
ManagementStructure SocialChanges
InternalSystemsand PoliticalChanges
procedures
 Urgency

Degree of support

Criteria to Amount and complexity of change

Consider Competitive environment

Knowledge and skills available

Financial and other resources

 Takeamomenttothinkofanexampleof
organizationalchangethatyouhaveexperienced.

Wasitsuccessful?Diditgosmoothly?
Whatwereyourfeelingsearlyon?Later?
Whatdidthepeoplearoundyousayaboutit?
 Organizationsgothroughfourstageson
thewaytoachievingtheirstrategic
objective:
Denial
Resistance
Exploration
Renewal
 Fearofunknownfuture
Frustration
Potentiallossofcomfortzone
Potentiallossofpower
Potentiallossofpay
Potentiallossofstatus
Perceivedunfairnessofchange
Communication Why???
Highestpriorityand
urgency
Strategyforchange
Reducesuncertainty(fear
ofunknown)
Problemstime
consumingandcostly
Communication Providesnewknowledge
andskills
Training
Includescoachingand
actionlearning
Helpsbreakoldroutines
andadoptnewroles
Problemspotentially
timeconsumingand
costly
Communication Increasesownership
Training Helpsreducingfearof
unknown
Employee
Involvement Periodicalmeeting
Problemstime
consuming,potential
conflict
Communication Whencommunication,
training,andinvolvement
Training
donotresolvestress
Employee
Involvement
Potentialbenefits
Moremotivationtochange
Stress Lessfearofunknown
Management
Problemstime
consuming,expensive,
doesnthelpeveryone
Communication

Training Whenpeopleclearlylose
somethingmaysupport
Employee
Involvement change
Stress Influencebyexchange
Management reducesdirectcosts
Negotiation Problems
Increasescompliance,not
commitment
Communication

Training

Employee
Involvement
Whenallelsefails
Stress Firingpeople
Management
Problems
Negotiation Reducestrust
Maycreatemoresubtle
Coercion resistance