Professional Documents
Culture Documents
2. Human Resources
Development 3. Compensation
1. Employment • Performance • Job Evaluation
• Job Analysis Appraisal • Wage & Salary
• HRP • Training • Administration
• Recruitment • Management • Fringe Benefits
• Selection Development
• Induction • Career Planning&
• placement Development
• Organizational change
& Development
Operative Function
5. Effectiveness of HRM
4. Human Relation
• Organizational Health
• Human Resource Accounting,
Auditing, Research
FUNCTIONS OF HRM
I) Managerial Functions
a) Planning
b) Organizing
c) Directing
d) Controlling
II) Operative Functions
1. Employment
a) Job Analysis
b) Human Resources Planning
c) Recruitment
d) Selection
e) Placement
f) Induction and Orientation
4. Human Relations
1. Industrial peace
2. Achieve High Productivity
3. Improve Quality of Working Life (QWL) of Employee
4. Obtain and Sustain Competitive Advantage through Empowerment
ROLE OF HUMAN RESOURCE MANAGER / CHALLENGES
FACED BY H.R.D. MANAGER
1) Enlarging the scope on personnel Management
2) Focus on Knowledge and Skill
3) Structure and Size of Enterprise
4) Globalization of Business
5) Managerial Skill in HRD
6) Number of Employees
7) Quality of Employees
8) Sustainable Competitive Advantage
9) Empowerment of Employees
10) Government Intervention
11) Social Orientation
12) Reservation Issues
13) Manpower Costs
14) Future Challenges
A) JOB ANALYSIS
DEFINITIONS
According to Edwin Flippo, “ Job analysis is the process of
studying and Collecting information relating to the operations
and responsibility Of a specific job.”
MEANING:
Job specification refers to a summary of the personal
characteristics required for performing the job in an acceptable
manner.
DEFINITION:
According to Edwin Flippo, job specification is “a statement
of minimum acceptable human qualities necessary to perform
a job properly.”
USES OF JOB ANALYSIS
HRP
Job Remuneration
Specification
Performance Appraisal
Personnel Information
each tasks
assigned to individuals
FACTORS AFFECTING JOB DESIGN
I ORGANISATIONAL FACTORS
1) Characteristics of task
2) Work flow
3) Ergonomics
4) Work practices
II ENVIRONMENTAL FACTORS
1) Employee Abilities & Availability
2) Social & Cultural Expectations
III BEHAVIOURAL ELEMENTS
1) Feedback
2) Autonomy
3) Use of abilities
4) Variety
TECHNIQUES OF JOB DESIGN
1) Work / Job Simplification
2) Job Rotation
3) Job Enlargement
4) Job Enrichment
5) Autonomous / Self Directed Teams
6) High Performance Work Design
1) WORK / JOB SIMPLIFICATION:
Job simplification technique, the job is simplified
Or specialized. A given job is divided into small subparts and
Each part is assigned to one individual employee.
2) JOB ROTATION:
Job rotation involves moving employees from job to
job to add variety and reduce boredom by allowing them to
perform a variety of tasks.
3) JOB ENLARGEMENT :
Job enlargement refers to the expansion of the number of
different tasks performed by an employee in a single job.
4) JOB ENRICHMENT :
Job enrichment involves adding more motivators to a job
To make it more rewarding. Job becomes enriched when it gives
Job-holder more decision-making, planning and controlling
Powers.
According To Herzberg, An Enriched Job Has Following
Characteristics
1) Direct Feedback
2) Client Relationship
3) New Learning
4) Scheduling Own Work
5) Unique Experience
6) Control Over Resources
7) Direct Communication Authority
8) Personal Accountability
STEPS INVOLVE IN JOB ENRICHMENT
1) Selecting the jobs
2) Identifying the changes
3) Changing the contents of a job
4) Training, guiding, developing and motivating employees
5) Integrating the newly enriched jobs into the daily work
routine of the organization
5) AUTONOMOUS / SELF-DIRECTED TEAMS:
A self directed work team is an intact group of employees
who are responsible for a ‘whole’ work process or segment that
delivers A product/service to an internal or external customer.
6) Business Games
7) Tests
INDUCTION
MEANING:
Induction is a systematic and planned introduction of employees
to their Jobs, their co-workers and the organization.
DEFINITION:
“HRD from the organizational point of view is a process in
which the employees of an organization are helped/motivated to
acquire and develop technical, managerial and behavioral knowledge,
skill and abilities and mould the values, belief and attitudes necessary
to perform Present and future roles by realizing the highest human
potential With a view to contribute positively to the organization.”
FEATURES OF HUMAN RESOURCE DEVELOPMENT
1) HRD is a systematic and planned approach
2) HRD is a continuous process
3) HRD develops the skills and knowledge.
4) It is multi-disciplinary
5) HRD is embodied with techniques and processes
NEEDS FOR HUMAN RESOURCE DEVELOPMENT
1) Change in economic polices
2) Changing job requirements
3) Need for multi-skilled human resources
4) Organizational viability and transformation process
5) Technological advances
6) Organizational complexity
7) Human relations
PERFORMANCE APPRAISALE
MEANING:
Performance appraisal is a systematic and orderly Evaluation of
performance of employees at work by their superiors.
DEFINITION
According to Dale Beach performance appraisal means “the
Systematic evaluation of the individual with respect to his
Performance on the job and his or her potential for
development.”
PERFORMANCE APPRAISAL PROCESS
1) Establishing performance standards
2) Communicating standards to employees
3) Measuring actual performance
4) Comparing actual performance with the standards set
5) Discussing actual performance with the employee
(Appraisal Interview)
6) Offering guidance for ;improving performance
(follow-up measures)
METHODS OF PERFORMANCE APPRAISAL
2) Career Information
3) Career Counseling
4) Career pathing
6) succession planning
BENEFITS OF CAREER PLANNING PROGRAMME
1) Quality production & employee loyalty
2) Employee motivation
3) Linking of individual career goals with organizational goals
4) Facilitates managerial succession
5) Facilitates career success
6) Job satisfaction to employees
7) Reduces turnover and absenteeism
8) Understanding of career opportunities
9) Better image in the employment market
STEPS IN CAREER PLANNING
1) Analysis Of Personnel Situation
2) Projection Of Personnel Situation
3) Identifying Career Needs
4) Selection Of Priorities
5) Development Of Career Plans
6) Write Up Of Formulated Career Plans
7) Managerial Planning
8) Implementation
9) Review And Evaluation
10)Future Needs
IMPORTANT POINTS FOR EMPLOYEES CAREER
DEVELOPMENT
1) Identification Of Employees Needs And Aspirations
2) Analysis Of Career Opportunities & Supplying Information To
Employees
3) Career Counselling
4) Motivation Of Employees
5) Internal Publicity To Career Information
6) Making Career Planning A Continuous Activity
7) Providing Services Of Experts
8) Career Development Workshops
9) Continuing Education & Training
10) Periodic Job Changes
COMPENSATION MANAGEMENT
WAGE & SALARY ADMINISTRATION:
MEANING:
Wage And Salary Administration refers to the establishment
And implementation of sound policies and practices of Employee
compensation.
JOB EVALUATION
MEANING:
Job evaluating means determining the relative worth of a job
In an organization by comparing it with other jobs within the
organization and with job market outside.
DEFINITION:
British Institute of Management defined job evaluation, “the
process of analyzing and assessing the content of jobs, within the
organization, so that differential wages May be paid to jobs of different
worth.”
3) Classify jobs.
II.ANALYTICAL METHODS
1. Point-Ranking Method
2. Factor- Comparison Method
JOB ROTATION
MEANING
Job rotation implies systematic movement of employees from
One job to the other job.
1) Production Transfers
2) Replacement Transfers
3) Versatility Transfers
4) Shift Transfers
5) Remedial Transfers
1) Intra-departmental Transfers
2) Inter-departmental Transfers
PROMOTIONS
MEANING:
Promotion is an upward advancement of an employee in
An organization to another job, which commands better pay/wages,
Better status/ prestige, and higher opportunities / challenges,
Responsibility, and authority, better working environment, hours of
work and facilities, and a higher rank.
DEFINITION:
According to Edwin Flippo, “Promotion involves a change
From one job to another that is better in terms of status and
Responsibilities.
BENEFITS OF PROMOTIN
A. Benefits of Promotion to Employees:
1) Higher salary
2) Higher status
3) Incentive to work efficiently
4) Psychological satisfaction
5) Change in the nature of work
B. BENEFITS OF PROMOTION TO THE MANAGEMENT
1) Raise the morale of employees
2) It reduces the rate of labour turnover and absenteeism
3) Ensure orderly functioning of the organization
4) Creates a sense of loyalty
5) Develop cordial labour-management relations.
METHODS OF PROMOTION
A. Promotion by seniority
B. Promotion by merits
FACTOR INFLUENCING WAGE & SALARY STUCURE AND
ADMINISTRATION
1) The Organization's ability to pay
2) Supply and demand of labour
3) Prevailing market rate
4) The cost of living
5) Productivity
6) Trade union’s bargaining power
7) Job requirements
8) Managerial attitudes
9) Psychological and social factors
10)Skill levels available in the market
COMPENSATION (REMUNERATION)
Remuneration is the compensation an employee
receives in return for his or her contribution to the
organization.
employees standard of living, status in the society,
Motivation, loyalty, and productivity depend upon the
Remuneration.
COMPONENTS OF REMUNERATION
A.FINANCIAL BENEFITS
1)Wages and Salary
2)Incentives
3)Fringe benefits
4)Perquisites
B.NON-FINANCIAL BENEFITS
1)Challenging job
2)Responsibilities
3)Recognition, Growth prospects
4)Supervision
5)Working conditions
FACTOR INFLUENCING WAGE & SALARY STUCURE AND
ADMINISTRATION
A.EXTERNAL FACTORS
1) Labour Market
2) Cost of Living
3) Lobour Unions
4) Labour Laws
5) Society
6) The Economy
B. INTERNAL FACTORS
1) Business strategy
2) Job evaluation and performance appraisal
3) The employee
1) MINIMUM WAGE:
The wage which must provide not only for the bare
Sustenance of life, but for the preservation of the efficiency of
The worker. For this purpose, the minimum wage must
Provide for some measure of education, medical requirements
And amenities.
LIVING WAGE:
Living wage is one which should enable the earner to
provide for Himself and his family not only and bare essential of
food, clothing and shelter But a measure of frugal comfort,
including education for his children, Protection against ill-health,
requirements of essential social needs And a measure of insurance
against the more important misfortunes, including Old age.
FAIR WAGE:
It is the wage which is above the minimum wage but Below
the living wage
TYPES OF WAGES
1) Time Rate:
under this system workers are paid according to the
Work done during a certain period of time, at the rate of so
Much per hour, per day, per week, per fortnight or per
Month or any other fixed period of time.
2) Piece Rate:
under this system, workers are paid according to the
Amount of work done or the number of units completed, the
Rate of each unit being settled in advance, irrespective of the
Time to complete a job.
ADVANTAGES OF INCENTIVE PAYMENTS
1)Motivation of employees
2)Financial benefit
3)Reduction in the cost of production
4)Increase in production capacity
5)Beneficial to employer
6)Better utilization of resources
LIMITATIONS OF INCENTIVE PAYMENTS
1)Possibility of quality deterioration
2)Labour cost may increase
3)Dissatisfaction among employees
4)Neglect of security rules
PREREQUISITES FOR AN EFFECTIVE INCENTIVE
SYSTEM
1)The co-operation of workers
2)The scheme must be based on scientific work measurement
3)Indirect workers should also be covered
4)There should be management commitment
5)There is greater need for planning
6)Reward should be clearly and closely linked to the efforts
7)The scheme should operate by means of a well-defined and easily
understood formula.
GROUP INCENTIVE PLAN
MEANING
In the group incentive plan, the entire group of
workers will have to work efficiently in a collective
manner and also share the benefit collectively.
ADVANTAGES OF GROUP INCENTIVES
1)Better co-operation among workers
2)Less supervision
3)Reduced incidence of absenteeism
4)Reduced clerical work
5)Shorter training time
DISADVATAGES OF GROUP INCENTIVES
1)An efficient worker may be penalized for the
inefficiency of the other members in the group
2)The incentive may not be strong enough to serve
its purpose.
3)Rivalry among the members of the group defeats
the very purpose of team work and cooperation.
FRINGE BENEFITS
The term fringe benefits refers to various extra
benefits provided to employees, in addition to the
compensation paid in the form of wages or salary.
Balcher defines fringe benefits as, “ any wage cost
not directly connected with the employees' production
effort, performance, Service or sacrifice.”
TYPES OF FRINGE BENEFITS
I.Payment For Time Not Worked By The Employees
a)Holidays b) vacations c) leave with pay and allowances.
II.Contingent And Deferred Benefits:
a)Pension payment b) group life insurance benefit c) sick leave,
III.Legally Required Payments
a)Old age, disability and health insurance b) unemployment
compensation c) worker’s compensation
IV.Misc. Benefits:
a)Travel allowances b) company car and membership of clubs,
OBJECTIVES OF FRINGE BENEFITS
1)To create and improve sound industrial relations
2)To boost up employee morale
3)To motivate the employees by identifying and satisfying their
unsatisfied needs
4)To protect the health of the employees and to provide safety to
the employees against accidents
5)To provide qualitative work environment and work life
6)To create a sense of belongingness among employees and to
retain them
FACTORS INFLUENCING FRINGE BENEFITS
1)Organization financial ability to provide the benefits
2)Employees deficiencies or needs
3)The bargaining strength of trade unions
4)Employees significance to the organization
5)Tax benefits to the organization and individual
employees
6)Organization's awareness and policy towards social
responsibility
WORKERS’ PARTICIPATION IN
MANAGEMENT
The concept of workers’ participation in management
is considered as a mechanism where workers have a say in the
decision-making process of an enterprise.
The concept of workers’ participation in management
crystallizes the concept of industrial democracy, and indicates
an attempt on the part of an employer to build his employees
into a team which work towards the realization of a common
objective.
NEED OF PARTICIPATIVE MANAGEMENT
1)Giving higher status and psychological satisfaction to workers
2)Cordial labour-management relations
3)Creating uniform approach of employer and workers
4)Raising industrial production
5)Creating platform for direct negotiations
6)Creating responsible approach among workers
7)Removing grievances of workers
8)Raising employee morale
METHODS/WAYS/TECHNIQUES OF
PARTICIPATIVE
MANAGEMENT
1)Participation At The Board Level
2)Participation Through Ownership
3)Participation Through Complete Control
4)Participation Through Staff or Works Councils
5)Participation Through Joint Councils and Committees
6)Participation Through Collective Bargaining
8) Participation Through Job Enlargement and Job
Enrichment
9) Participation Through Suggestion Schemes
10)Participation Through Quality Circles
11)Empowered Teams
12)Total Quality Management
13)Financial Participation
PERSONNEL MANUAL
Personnel Policies
According to Edwin B. Flippo, “A policy is man-made
rule or Pre-determined course of action that is established to
guide the Performance of work toward the organization
objectives. It is a type of standing plan that serves to guide
subordinates in the execution of their tasks.”
PRINCIPLES OF PERSONNEL POLICIES
1)Principle of scientific selection
2)Principle of fair work environment
3)Principle of training
4)Principle of individual development
5)Principle of participation
6)Principle of fair remuneration
7)Principle of incentive
8)Principle of labour-management co-operation
PERSONNEL MANUAL
A document/ booklet which contains the details of
Personnel policies of an organization is called personnel
Policy manual/personnel manual.
It is a comprehensive document which serves as a guide to
or reference book to employees, managers and supervisors
BENEFITS OF PERSONNEL POLICY MANUAL
1)Gives clear explanation of existing policies
2)Useful tool in supervisory training
3)Document of company’s faith on fair personnel policies
4)Act as readymade guide to personnel policies and procedures
5)Training manual for supervisory staff
6)Avoids indecision on personnel matters
7)Avoids unfair employment practices
8)Acts as a communication device
PREPARATION OF PERSONNEL MANUAL
1)Taking firm decision to prepare policy manual
2)Giving suitable authority to in charge, personnel policy manual
3)Appointing to small committee for manual preparation
4)Interviewing supervisors for information collection
5)Preparing first draft of policy manual
6)Circulating first draft for review and recommendations
7)Final printing of manual
8)Periodical revision and updating of the manual
SEPARATIONS
Voluntary Involuntary
1)Quits 1) Discharges
2)Retirements 2) Layoffs
3) Retrenchment
4) VRS
5) Rightsizing
EMPLOYEE STOCK OWNERSHIP PLANS (ESOPs)
Under the Employee stock ownership plans,
employee are offered the company's shares at a
concessional price. When the market price of the shares
increases, the employees earn substantial capital gains
MERITS OF ESOPs
1)Enables a company to retain efficient employees
2)Linked compensation package closely to employees performance
3)Encourages the employees to work efficiently.
4)It develops a sense of ownership and responsibility.
DEMERITS OF ESOPs
1)Can be used only by profit making companies
2)Employees will suffer loss if the share prices are falling
3)Unsound stock market fluctuations cause inconvenience to
employees
4)Lack of transparency may lead to criticisms on the ground of
favoritism
HUMAN RESOURCE INFORMATION SYSTEM (HRIS)
HRIS is a systematic procedure for collecting, storing,
Maintaining and retrieving data needed by an organization about
Its human resources and various activities that are relevant for
their management.
360-Degree Feedback
The 360-degree technique is understood as
systematic collection of performance data on an individual
or group, derived from a number of stakeholders.
•Rating committees
(vipul 22)
TECHNIQUES OF HR DEMAND FORECASTING
1)Managerial Judgement
2)Regression analysis
3)Work-study techniques
4)Delphi technique
5)Flow models
6)Other forecasting techniques
(Aswathappa 83,84…)
TECHNIQUES OF HR DEMAND FORECASTING
1)Existing Human Resources
2)Internal Sources of Supply
3)External Sources of Supply
(Aswathappa
83,84…)
INDUCTION METHOD
Formal Informal
Individual Collective
Serial Disjunctive
Investiture Divestiture
(Aswathappa 83,84…)
INDUCTION PROCESS
1)Reporting for duty
2)Welcome the new employee
3)Introduction to the organization
4)Organizational head introduces to important employees
5)Departmental head introduces to all the employees
6)Supervisor concerned introduces to his co-workers
7)Providing information about the duties .
8)Supervisor clarifies the doubts of new employee about the work
(vipul 62,63…)
DEFINITION
(subba rao)
TRADE UNION
3)Low membership
5)Inactive functioning
6)Victimization