HRM

Human Resource Management
Human Resources Management
Organization as Input-Output system

Acquiring inputs from environment
Conversion Process
Outputs
Exporting to Environment
Using financial resources by human resources
By human resources
By human resources
Meaning
It is a process of bringing people and organizations together so that the goals of each are met. According to Invancevich and Glueck : HRM is concerned with the most effective use of people to achieve organizational and individual goals. According to Milkovich and Boudreau : Human Resource Management is a series of integrated decisions that form the employment relationship; their quality contributes to the ability of the organizations and the employees to achieve their objectives.
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Features of Human Resource Management

A process Pervasive force Action Oriented Individually Oriented People Oriented Development Oriented Integrating Mechanism Comprehensive Function Auxiliary Service Inter-disciplinary Function Continuous Function
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Scope of HRM
The scope of HRM is very wide. The Indian Institute of Personnel Management has specified the scope of HRM as follows:
Welfare Personnel Aspect Aspect Industrial Relations Aspect
Prepared by Ms. Ritu Arora
Comparison on HRM and Personnel Management

There have been several approaches on the concepts of relationship between HRM and Personnel management:
Comparison includes studying Similarity and Differences.
Armstrong suggests common features of Personnel management and Human Resource Management:
1. Strategies of both stem from the business strategy. Both these recognize that line managers are responsible for managing people. And the line managers are enabled by the advice and support of the personnel department to carry out their responsibilities.
2.
3.
The value of personnel management and those of soft version of human resource management are identical vis--vis respect for individual, integration of individual needs and organizational goals, and development of people to accomplish competence to facilitate individual and organizational interests.
Both attach importance to the function of matching people to ever-changing business requirements.
4.
5.
Both use the same range of selection, competence analysis, performance management, training, management development and reward management techniques. The soft version of human resource management and personnel management stresses the process of communication and participates within the employee relations analysis.
6.
Differences between Personnel Management and HRM

1. Personnel Management is a routine, maintenanceoriented administrative function; human resource management places emphasis on a continuous development of people at work. Personnel Management function is mainly reactive and responds to the demands of an organization whenever they arise, while HRM is proactive function (more future oriented) Personnel Management is seen as independent function and sub-functions without giving due-regard to organizational strategies and processes. HRM is viewed as sub-system of the organization as it takes into account its linkages and interfaces with all other parts of the organization.
2.
3.
4. Personnel Management has a narrow focus it mainly works on improving the efficiency of personnel in isolation without emphasizing the relevance of efficiency in the organizational context, while HRM undertakes a systems view which attempts to create a proper organizational culture. 5. Personnel management emphasizes on economic rewards and traditional job design for better performances, while HRM emphasizes on the satisfaction of higher needs for motivating people, such as autonomous work groups, challenging jobs, creativity. 6. Personnel Management considers job satisfaction and higher moral as a cause of improved performance, while HRM works on the premise that better performance itself is a source of satisfaction and high morale.
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Evolution of HRM
The evolution to the current state of HRM has passed through several stages:
Industrial Revolution
Scientific Management Trade Unionism Human Relations Movement Human Resources Approach
HRM in Changing Environment

The job of an HR manager is to balance the demands and expectations of the external groups with the internal needs and achieve the assigned tasks in an efficient ways. So the HRM practices in an organization are influenced by two broad categories of factors Environmental factors and Organizational factors. I) Environmental factors: Economic Environment Legal Environment Technological Environment Socio-cultural Environment
Economic Environment Population v/s workforce

Workforce market conditions National Income Inflationary pressures
Legal Environment Political Stability
Technological Environment Reengineering work processes

Flexible Manufacturing Systems
Socio-Cultural Environment Slashing of jobs

Trade Unions Work force diversity
II) Organizational factors Organizations Strategy

Corporate level Strategy Business level Strategy Functional Level Strategy
Organizational Culture
High Performing Culture Low Performing Culture
Organizational Financial Position
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III) International Perspective Globalization of industries has led to the considerations of following international factors. Cultural Diversity Individualism and Collectivism
Power Orientation Uncertainty Avoidance Masculinity Time Orientation
Workforce Diversity Parent-country national

Host-country National Third-country National
Language Diversity Economic Diversity

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MARKETING
GOVERNMENT & LEGAL TECHNOLOGICAL
ORGN. POLITICS
POLITICAL UNION FINANCE ECONOMICS SOCIAL& RELIGIOUS ORGN. STRUCTURE
CUTOMERS
HRM
PPRODUCTION TRADE
Prepared by Ms. Ritu Arora FIGURE:Environmental scanning of HRM
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Role of HR Practitioner
The HR department generally acts in an advisory capacity; it provides information, offer suggestions, counsels and assists all the line managers in the organization.
Advisory Role The Conscience Role Counsellors Role Mediators Role Representative Role Clerical Role Fire-Fighting / Legal Role Welfare Role Problem solver Change agent Decision Maker Executive
HR Policies
After the establishment of objectives of Human Resource Management, HR policies are to be formulated. Definition:A policy is a plan of action. Brewster and Rich bell defined HR policies as a set of proposals and actions that act as a reference point for managers in their dealings with employees. -They constitute guides to action. -They furnish the general standards or bases on which decisions are based. -Their genesis lies in an organizations values, philosophy, concepts and principles
Advantages of HR Policies
Policies are useful instructional devices, that offer various advantages to HR working at various levels. Delegation Uniformity Better Control Standards of efficiency Confidence Speedy Decisions Coordinating Devices
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Obstacles in Administrating HR Policies:1. Managers are reluctant to follow guidelines as it curtails their freedom. 2. Conflict between implied and expressed policy. 3. Not easy to Communicate. 4. Makes managers rigid.
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Characteristics of sound HR Policy.

While developing a HR Policy, management must pay attention to: Relation of policies with objectives Easy to understand Precise Stable as well as flexible Based on facts Appropriate number Just, fair and equitable Reasonable Based on Reviews.
Coverage of HR Policies:a) Social responsibility

Equity Quality of Work Life
b) Employment Practices c) Promotion Policies d) Development Policies e) Relations Policies
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Sources of content for formulating policies

Past experiences of the organization. Existing practices and experiences in other organizations Attitudes and philosophies of management Knowledge and experience gained by all line managers and personnel managers in handling personnel issues. Organizational policies.
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Functions of HRM
As HRM is the management of human resources in an organization and is concerned with the creation of harmonious working relationship among its participants and bringing about their utmost individual development.
Functions of HRM Managerial functions

Operative functions
Managerial Functions
Management is a multi-purpose organ which has three jobs, two of which are directly related to personnel managing a business managing employees and the work a) b) c) d) Planning Organizing Directing Coordinating and Controlling
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MANAGERIAL FUNCTIONS
Planning Determination of short to long Range plans to Accomplish Organization Objective Directing: stimulation and Motivation of Organization Personnel According to predetermined plans
INPUTS Human And Economic Resources Interacting With Environmental Changes
Organizing: Development of the orgn. structure according to Predetermined plans
Outputs: goods and services needed by the Organization customers

Controlling:assurance that directed action is Taking place According to Predetermined plans.
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Operative Functions
The operative functions of HRM are concerned with the activities specifically dealing with: The Procurement Function The Development Function The Compensating Function The Integration Function The Maintenance Function
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HRM and Corporate Objectives

HRM is being used to develop competitive advantage and, therefore, its role in strategic management has been well recognized. Strategic management is the continuous process of relating the organization with its environment by suitable course of action involving strategy formulation and its implementation. Strategy is course of action through which the organization relates itself with the environment so as to achieve its objectives.
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Environmental opportunities and threats
Choice of strategy
Corporate mission and objectives
Strategic Alternatives
Strategy Implementation
Activating strategy Structural implementation Behavioral implementation Functional implementation
Corporate strengths and weaknesses
Personal Values and aspirations of strategists
Role of HRM
Acquiring, Developing, Integrating, and Retaining right personnel
Role of HRM in corporate strategic management process Prepared by Ms. Ritu Arora 29
Human Resource Information System

It is a system designed to supply information required for effective management of human resources in an organization; A Computerized HRIS is designed to monitor, control and influence the movement of people from the time they join the organization till the time they separate from the organization.
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Scope of Computerized HRIS

Recruitment sub system information; Manpower Planning Sub system information; Personnel administration sub system information; Training sub system information; Maintenance Sub System Information; Appraisal sub system information system; Payroll sub system information system; Personnel Research Sub System Information; Job Analysis and Design subsystem Information.
Objectives of HRIS
To make the desired information available in the right form to the right person at the right time; To supply the required at the reasonable cost; To use the most efficient methods of processing data; To provide necessary security and secrecy for important and/or confidential information; To keep the information up to date.
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Applications of HRIS
Job Descriptions; HR Planning; Staffing; Succession Planning; Training and Development; Performance Appraisal; Job Evaluation; Compensation; Climate Analysis.
Human Resource Planning

Human Resource Planning is the process by which an organization ensures that it has the right number and kind of people, at the right place, at the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives. - HRP is a process - It involves determination of needs - It also takes into account the manpower availability at a future period.
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Importance of Human Resource Planning

Reservoir of Talent
Prepare People for Future Expand or Contract Cut Costs Succession Planning
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Human Resource Planning Process

Organizational Objectives, Plans and policies Forecasting needs for human resources Forecasting supply of human resources
Identification of human resource gap Surplus human resources Actions plan for bridging gap
Shortage of human resources
Steps in HRP
1 Organizational objectives, plans and policies 2. Human Resource Planning: Forecasting the demand and supply of human Resources 3. Identification of Human Resource Gap 4. Action Plans
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Techniques for Forecasting Human Resource Needs

Managerial judgement Method Delphi Technique Work-Study Technique Ratio-Trend Analysis Statistical and Mathematical Models
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Forecasting of Human Resource Supply

Human Resource Flow Model Human Resource Inventory Skills Inventory Management Inventory
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Barriers to effective Human Resource Planning

1.
2. 3. 4. 5.
6.
Improper Linkage between HRP and Corporate Strategy Inadequate Appreciation of HRP Rigidity in Attitudes Environmental Uncertainty Conflict between Long-term and shortterm HRP Inappropriate HR Information System
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Job Analysis
Developing an Organizations structure results in creating jobs which have to be staffed. Job:- A job may be defined as a Collection or aggregation of tasks, duties and responsibilities which as a whole, are regarded as a regular assignment to individual employees Job Analysis is the process of studying and collecting information relating to the operations and responsibilities of a specific job. The immediate products of the analysis are job descriptions and job specifications
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Uses of Job analysis

Organizational Design Acquisition of personnel Human resource Development Job evaluation and compensation Performance Appraisal Safety and Health Employee counselling
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Determination of uses of job analysis
Strategic Choices in job analysis
Information Collection
Information Processing Job Description

Job /Person Specification
JOB ANALYSIS PROCESS

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Job Description
A job description is an organized, factual statement of duties and responsibilities of a specific job. It is basically descriptive in nature. It provides both organizational information and functional information. 1. Job Identification 2. Job Summary 3. Job duties and responsibilities 4. Relation to other jobs 5. Supervision 6. Machine 7. Working Conditions 8. Hazards
Job Specification
Job Specification is a statement of the minimum acceptable human qualities necessary to perform a job properly. It tells what kind of person to recruit and for what qualities that person should be tested.
1. Physical Characteristics 2. Psychological Characteristics 3. Responsibilities 4. Other features of demographic nature
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Recruitment
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Recruitment
Recruitment is 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. ----- Werther and Davis
Recruitment Job Analysis Selection Placement
Linkage of recruitment to human resource Acquisition

Recruitment represents the first contact that a company makes with the personnel having potential to be employed. It determines the present and future human resource requirements in conjunction with human resource planning. It helps to increase the pool of potential personnel. It helps in increasing the success rate of the selection process. It reduces the rate of initial turnover rate. It helps in evaluating the effectiveness of various recruitment techniques It helps to meet the organizations legal and social obligations regarding composition of its workforce.
Purpose and Importance of Recruitment
Factors Affecting Recruitment

Internal factors: v Companys pay package; v Quality of work life; v Organizational culture; v Career planning and growth; v Companys size; v Companys products and services; v Geographical spread of the companys operations; v Companys growth rate; v Role of trade unions; v Cost of recruitment; v Companys name and fame.
v v v v v v
External factors: Socio economic factors; Supply and demand factors; Employment rate; Labour market conditions; Political, legal and governmental factors; Information systems.
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Sources of Recruitment
Sources are those where prospective employees are available like employment exchange while techniques are those, which stimulate the prospective employees to apply for jobs like nomination by employees, advertising, promotion etc. Internal sources Present Permanent employees Present temporary and casual employees Retrenched or retired employees Dependents of deceased, disabled, retired and present employees Promotions Transfers
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External Sources
External sources are those, which are outside the organizational pursuits. These include: Campus recruitment Private Employment agencies Public Employment exchanges Professional Associations Data Banks Casual Applications Trade Unions Advertisements Employee Referrals
Selection
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Selection
Once the recruitment is through with, the management has to perform the function of selecting the right candidate at right time. This is done through selection procedure and it a customized one.
It basically depends upon several factors Companys Requirement Financial resources allocated for the same Companys past records Companys image in the market
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Steps in selection procedure : Development bases for selection

Job Analysis Human Resource Plan Application Blanks Written Examination
Recruitment
Preliminary Interview
Business Games Tests Final Interview
Assess the fit between
Medical Examination
The job and the candidate
Line Managers Decision

Employment
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Selection Procedure
Job Analysis:- It is the basis for selecting the right candidate Job description Job specification Employee specification 2. Recruitment:- It refers to the process of searching for prospective employees and stimulating them to apply for jobs in an organization.
3.
Application Blank:- It is a form through which the data is collected about the candidates and the initial screening is done. - Personal Background Information - Educational Attainments - Work experience - Salary - Personal Details Prepared by Ms. Ritu Arora 56 - References
4. Written Examination:- The candidate qualified through the application blank is required to pass through the written test. - Quantitative knowledge - Aptitude reasoning - General knowledge - English language knowledge
5. Preliminary Interview:- This interview is to solicit necessary information from the prospective candidates and to assess the applicants suitability for the job. This is known as stand-up interview. At this level business games are also used as a tool for judging candidates suitability for the job, which mainly includes the techniques used to judge the situation handling and problem solving.
6. Group Discussions:- This technique is used in order to secure further information regarding the candidates suitability for the job.
7. Tests:- It is a most significant stage in the process of selection. These employment tests are an instrument designed to measure the nature and degree of ones psychological potentialities, based on psychological factors, essential to perform a job. Types of tests Aptitude tests Achievement tests Situational tests Interest tests Personality tests
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8. Final Interview:- In this the interviewer matches the information obtained about the candidates through various means, to the job requirements and to the information obtained through his own observation.
Types of interview
Preliminary Interview
Core Interview
Decision-Making Interview
9. Medical examination:- Certain jobs require certain physical qualities like clear vision, perfect hearing, unusual stamina, tolerance of hard working conditions.
10. Reference Checks:- After the completion of the final interview and medical examination, the personal departments checks the references with the candidates.
11. Final decision by line managers:- The final decision has to be made by the line manager, under whom the candidate has to actually perform. 12. Employment:- The successful and the unsuccessful candidates have to be informed and the appointment letter must be sent.
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Placement
When once the candidate reports for duty, the organization has to place him initially in that job for which he is selected. - Employees are trained for the job and also in relation to related jobs. - Employee is placed on the actual position, only when the probation period is over. - if the performance is satisfactory then only the candidates are regularized.
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INDUCTION
Induction is the process of receiving and welcoming an employee when he first joins a company and giving him the basic information he needs to settle down quickly and happily and start work. This process is having lot of significance, as the rate of turnover among new employees is very high in comparison to senior executives. (Lectures, handbooks, films, group seminars are used to impart the information to new employees about the environment of the job)
The employees are made aware :(i) About the company History, growth, management, products, markets, customers etc Basic conditions of employment-hours of work, shifts, holidays, retirement benefits etc. Pay, allowances, deductions Grievances procedures Canteen and restaurant facilities Unions, negotiating machineries
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(ii) About the department The department head introduces the new employee to the important employees of the department. Functioning style of the department Work distribution, assignment, working hours etc.
(iii) About the superiors, subordinates etc To person whom he has to report To the persons with whom his work is related To the persons who are to report him To his colleagues
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Objectives of Induction
Putting new employees at ease Creating the interest in his job and the company Providing basic information about working arrangements Indicating the standards of performance and behaviour Informing them about training facilities Creating the feeling of social security Minimizing the reality shock which would be caused due to incompatibility.
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Internal Mobility
The lateral or vertical movement (promotion, transfer, demotion or separation) of an employee within an organization is called internal mobility. It may take place between jobs in various departments or divisions. Some employees may leave the organization for reasons such as better prospects, retirement, terminations etc. Such movements are known as external mobility.
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Transfers
A transfer is a change in job assignment. It may involve a promotion or demotion or no change at all in status and responsibility.
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Purpose of Transfer
To meet the organizational requirements To satisfy the employee needs To utilize employees better To make the employee more versatile To adjust the workforce To provide relief To reduce conflicts To punish employee
Promotion
Promotion refer to upward movement of an employee from current from current job to another that is higher in pay, responsibility and/or organizational level. promotion brings enhanced status, better pay, increased responsibility, better working condition to the promote.
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Purpose of promotion
To utilize the employee skill, knowledge To develop competitive spirit To develop competent internal source of employees To promote employee self-development To promote interest in training To build loyalty To reward committed
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Demotion
Demotion is the downward movement of an employee in the organizational hierarchy with lower status and pay. It is a downgrading process where the employee suffers considerable emotional and financial loss in the form of lower rank, power and status, lower pay and poor working conditions.
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Causes of Demotion
A promote is unable to meet the challenges posed by the new job Due to adverse business conditions,organization may decide to lay off some and downgrade other jobs. Demotion may be used as disciplinary tools against errant employees
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Separations
A separations is a decision that the individual and the organization should part. separations can take several forms, such as temporary leaves of absence, attrition, layoffs.
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Training
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Separations
Temporary leaves or absence Resignation Retirement Death Lay off and retrenchment Outplacement Suspension Discharge and dismissal
Training
Organization and individual should develop and progress simultaneously for their survival and attainment of mutual goals. In order to meet these, organizations formulate human resource training programmes. According to dale S. BeachTraining is the organizational procedure by which people gain knowledge and skill for a definite purpose.
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Need for training

Training is not something just meant for new employees but even it is needed on a continuous basis. To match the employee specification with the job requirement and organizational needs. Organizational viability and the transformation process Technological advances Organizational complexity Human relation Change in job assignment
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Training objectives
To prepare the employee both new and old to meet the present as well as the changing requirement of the job. To prevent obsolescence. To impart the new entrants the basic knowledge and skill needed for the job. To prepare the employee for higher level tasks To assist employees to function more effectively in their present positions To build up a second line of competent officer and prepare them to occupy more responsible position. To ensure smooth and efficient working of a department. To ensure economical output of required quality
ASSESSMENT OF TRAINING NEEDS

Training needs are identified on the basis of organizational analysis, job analysis and man analysis. Organizational requirement/weaknesses Department requirement/weaknesses Job specification Identifying specific problems Anticipating failure problem. Management' requests Observation Interviews Group conferences Questionnaire surveys
PRINCIPLES OF TRAINING
Motivation Progress information Reinforcement Practice Full v/s part Individual differences
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AREAS OF TRAINING
Company policies and procedures Specific skill Human relations Problem solving Managerial and supervisory skills Apprentice training
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Types of Training
A variety of training programmes are used in different organizations, depending on requirements and size of their manpower. Some of the commonly used programmes may be listed thus:
Orientation Training Job Instruction Training Refresher Training Apprenticeship Training Vestibule Training
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Training methods
On the job training
Job-rotation Coaching Job Instruction Training Through Step-by-step Committee Assignments
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Off the job training

Vestibule Training Role Playing Lecture Method Conferences or Discussions Programmed Instruction
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Advantage of training
Increased productivity Heightened morale Reduced supervision Reduced accidents Increased organizational stability
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Evaluation of Training Programme

The process of training evaluation has been defined as any attempt to obtain information on the effects of training performance and to assess the value of training in the light of that information. Evaluation helps in controlling and correcting the training programme.
Hamblin suggessted five levels at which evaluation of training can take place: Reactions Learning Job Behaviour Organization Ultimate Value
Methods of Evaluation
Questionnaires Tests
Interviews
Studies Human Resource factors
Cost Benefit analysis

Feedback
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OBJECTIVES
Determine the ability of the trainees to perform jobs for which they were trained. Determine the specific nature of training deficiencies. Determine whether the trainees require any additional on the job training. Determine the cost effectiveness of the programme.
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PRINCIPLES
Evaluator must be clear about the goals & purpose of evaluation. Continuous Specific Provides the means & focus for the trainers to appraise themselves, their practices & their products. Based on objective method and standards.
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ADVANTAGES
Helps in controlling & correcting the training programme. Helpful to see what future changes in training phase should be made to make it more effective. Its utility to achieve the goal of an organization. Helpful to get new ideas, reactions & identify weak segments in the total training programme.
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FIVE LEVELS FOR EVALUATION
REACTION
ULTIMATE VALUE FIVE LEVELS
LEARNING
ORGANISATION
JOB BEHAVIOUR
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CRITERIA FOR EVALUTION

INTERNAL
EXTERNAL
PARTICIPANTS REACTION
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TECHNIQUES OF EVALUATION
Experimental & control groups Longitudinal or time series analysis Questionnaires and structured interviews Cost benefit analysis
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ISSUES TO CONSIDER IN AN EVALUATION

RELEVANT ISSUES TO EVALUATE
Are the participants learning, changing attitudes, or improving skills? Are the training or development materials used on the jobs? What are the costs of training and development programs and techniques? How long does the training or development have an effect on participants?
WHAT TO MEASURE
Participants attitudes or skills before and after training or development sessions. Participants on-thejob performance, behavior, And style Fixed and variable costs of conducting training or development
WHAT TO EXAMINE FOR ANSWERS

Comments
Methods of participations
HOW TO COLLECT DATA

Interviews; questionnaires; records; observations
Records; interviews; Questionnaires; Critical incidents observations
Co-workers superiors Subordinates performance, attitudes & style
Cost of trainers; Participants time; Travel expenses; Consultants fees; training aids; rent utilities
Budget records
Participant on-the-job Subordinates performance, performance, behavior & style over attitude & style an extended period of time Prepared by Ms. Ritu Arora
Records; interviews; Questionnaires; Critical incidents observations

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CAREER PLANNING
Individual Career Planning
Organizational Career Planning
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WHAT IS CAREER PLANNING?

Career is all the jobs that are held during ones working life. Career Path is the sequential pattern of jobs that form a career.
Career Planning is the process by which one selects career

goals and the path to these goals
Career Development is those personal improvements one

undertakes to achieve a personal career plan.
Career Management is the process of designing and

implementing goals, plans and strategies to enable the
organization to satisfy employee needs while allowing individuals to achieve their career goals.
CAREER STAGES:
1. Exploration 2. Establishment
3. Mid-Career stage
4. Late Career
5. Decline
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P E R
Exploration
Establish ment
Late Career
F
O R M A N C E
Transition from college to work
Midcareer
Decline
Getting first job and being accepted
Performance increaseor decrease or maintain
The elder states person
Retirement
AGE
Stages in Career Development

NEED FOR CAREER PLANNING

To attract competent persons and to retain them in the organization To provide suitable promotional opportunities To enable the employees to develop and make them
ready to meet future challenges

To increase the utilization of managerial reserves To correct employee placement
To reduce employee dissatisfaction and turnover

To improve motivation & morale.
PROCESS
Individual needs and aspirations Review of career plans
Individual strengths and weaknesses
Placement on career path
Organizational needs and opportunities Career Planning Process

Benefits of Career Planning to Employees

In the present context, because of change in the perspective of criteria for measuring success, the role of career planning for employees has expanded. Career planning benefits employees in following ways: Explicit career path Focused self-Development Increased productivity
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Career Planning Benefits to Organization

From an organizations point of view, career planning has a long-term orientation for filling various positions from internal sources. When this practice is followed, the organization derives the following benefits from career planning: Assured availability of talent Attracting and retaining talent Promoting organizational image Protecting Interests of Special Groups of Employees
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SUCCESSION PLANNING
Definition: A succession plan is a plan for identifying who is currently in post and who is available and qualified to take over in the event of retirement, voluntary retirement, dismissal Three Main Elements. - The purpose of succession planning is to identify and develop people to replace current job holders in key positions. - It enables to maintain the steady flow of internal talent to fill important vacancies
- It emphasizes on hiring from within and creates a healthy environment, where employees have careers and merely job.
Need for Succession Planning

Organizations exist as on-going concerns while personnel come in and go out on regular basis. Therefore, the continued existence of an organization over time requires a succession of personnel to key positions. So, this basically requires the succession planning: Identification of right personnel Grooming of successors Boosts the morale of meritorious employees
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Measures for effective Succession Planning

Since succession planning is essential for every large organization but obstacles generate due to faulty organizational practices, some measures are needed to make succession planning effective. Involvement of Supervisory Board Driven by CEO Procedural Consistency External benchmarking Pool of Successors Objectivity Application of emotional intelligence
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Executive Development
It is a systematic process of growth and development by which managers develop their abilities to manage Role of the organization: The role of the company in management development is to establish the programme & the development opportunities for its present and potential managers.
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Who is a manager and what does he do?

The word manager has been used to mean people at different levels of hierarchy. All those who perform all or some of the basic functions of management to some degree regularly or occasionally are known as managers.
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Knowledge and skills of the manager:

1} 2} 3} Technical Skills : Human Skills : Conceptual Skills : -
These skills need constant up gradation as the process of evolution of executive development programme has gained momentum.
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Evolution of Executive Development

Shift from owner managed to professionally managed enterprises. Management has been recognized as a distinct kind of occupation consisting of acquired skills and a unified body of knowledge.
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Objectives of Executive Development

v To overhaul the management machinery. v To improve the performance of the managers. v To give the specializes on overall view of the function of an organization and equip them to co-ordinate each others efforts. v To identify the persons with the required potential and prepare them for positions. v To increase the morale of employees. v To increase the versatility of the mgt. Group. v To keep the executives updated with the changes in their fields. v To improve thought process and analytical ability. v To stimulate creative thinking.
Essential ingredients of the executive development programmes.

Analysis of organizational present and development needs. Appraisal of present management talent. Inventory of management manpower. Planning of individual development programme. Establishment of development programme. Evaluation of the programme.
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Techniques of management development

There are mainly two types of techniques by which managers can acquire the knowledge, skills and attitudes and make themselves competent.
Techniques
On the Job Coaching Job Rotation Understudy Multiple Management Off the Job The case method Incident method Role playing In basket method Business games Sensitivity training Simulation Grid training Conferences
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On the Job Techniques: vJob Rotation vUnder study
vMultiple management
vCoaching
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Off the Job Techniques: Incidents method Role playing In-basket method The case study Business games Simulation Managerial grid Conferences lectures
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ORGANISATIONAL RENEWALS
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ORGANISATION:
Can be defined as a group of people combined together for accomplishment of a common goal. RENEWALS : Can be defined as a rejuvenating activity. Can be defined as an activity of making change in the internal environment commensurating with the external environment.
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NEED FOR ORGANISATIONAL RENEWALS

Changing economic landscape Customers awareness Technological changes
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EFFECTS OF ORGANISATIONAL RENEWALS

POSITIVE EFFECTS Coping up with the changing environment. Adoption of new techniques. Freedom from monotonous jobs. Increase in the efficiency.
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REQUISITES FOR THE IMPLEMENTATION OF ORG. RENEWALS

Vision defined by leadership. Managing the risk. Innovation starts with creativity. Organizational integration
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IMPROVING BUSINESS BY REDESIGNING WORK SYSTEM.

Studying the overall system. Interconnectedness of the sub-systems. How the system fits into the environment. What if scenario.
RENEWAL FRAMEWORK.
GET GROUNDED. GET REAL. GET GOING.
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Compensation System
An organization exists to accomplish the specific goals and objectives. The employees hired by the organization helps in the fulfillment of these goals. These employees have their own needs. Needs can be satisfied by providing money, goods and / or services in return of their services. The organizations have to use reward system which helps in building a competitive / strategic advantage.
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Compensation System
Compensation includes direct cash payments, indirect payments in the form of employee benefits and incentives to motivate employees to strive for higher levels of productivity. Its components: Wage and Salary Incentives Fringe benefits Perquisites
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Compensation Systems Should Include: 1) 2) 3) 4) 5) Signal to employees the major objectives of the organizations, such as quality, customer focus etc; Attract and retain the talent, an organization needs; Encourage employees to develop the skills and abilities they need; Motivate employees to perform effectively; Create the type of culture the company seeks to engender.
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Compensation Management Process

Organizations Strategy Compensation Policy
Job Analysis & Evaluation Analysis of contingent factors Design and implementation of compensation plan
Evaluation and Review

Progression of compensation:
Wage: is the remuneration paid, for the service of labor in production, periodically to an employee/worker? It usually refers to the hourly rate or daily rate paid to such groups as production and maintenance employees. Salary: refers to the weekly or monthly rates paid to clerical, administrative or professional employees. Wage levels: represents the money an average worker makes in a geographical area or in his organization. Wage structure/grade: is used to describe wage/salary relationships within a particular grouping. This grouping can be according to occupation or organization. It mainly comprised of jobs evaluation. e.g. Rs. 2500-100-3000-E.B-200-5000 (E.B. efficiency bar means performance standards)
Components of Compensation System

Indirect Basic pay Merit pay Salary wages Incentive pay Services& perquisites Direct
Protection program
Medical Insurance Life ins.
Deferred pay
Pay for time not worked
Disability
Income
Pension
Social
Vacations Holidays Sick leave Jury duty
Bonus comm. Saving plan Piece rate Recreational Stock purchase Facilities Profit sharing Annuity Stock option Car Financial Shift differential
Planning Free meals
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Components of the compensation system:

Basic Wage/Salary; Dearness allowance; House rent allowance; City compensatory allowance; Conveyance allowance; Leave travel concession; Education subsidy; Bonus(profit bonus/ incentive bonus); Medical; Provision fund; Pension; Overtime; Fringe benefits; Prepared Social security benefits. by Ms. Ritu Arora
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In case of executives, various reimbursements are also made as part of their salaries. These are: Company leased accommodation; Servant salary reimbursement; Company maintained car; Driver salary reimbursement; Children education; Scholarship to the children; Electricity, water, gas charges reimbursement; Insurance premium; Hospitalization; Office maintenance at residence; Household furniture and appliances; Holiday homes; Prepared by Ms. Ritu Arora 128 Interest free loans for house building & many more.
Equity Theory
Employees want to be treated fairly. Equity is the balance between the inputs an individual brings to a job and the outcomes he / she receives from it. Employee inputs include:Experience, education, special skills, effort and time worked. Outcomes include:Pay, benefits, achievement, recognition and any other rewards.
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Designing Equitable Compensation Systems:THERE ARE THREE ELEMENTS OF EQUITY:Internal Equity:- Refers to the relation ship among jobs within a single organization. External Equity:- Refers to comparisons among individuals in the same job within the same organization. Establishing Internal Equity:- Job evaluation methods.
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Job Evaluation
Job evaluation deals with money and work. It determines the relative worth or money value of jobs.
Wendell l. French defined job evaluation as, a process of determining the relative worth of the various jobs within the organisation, so that differential wages may be paid to jobs of different worth .
Thus, job evaluation may be defined as a process of determining the relative worth of jobs, ranking and grading them by comparing the duties and responsibilities like skill, knowledge of a job with other jobs with a view to fix compensation.
Objectives of Job - Evaluation

(1) To gather data and information relating to job description, job specification and employee specifications of various jobs. (2) To compare the duties, responsibilities and demands of a job with that of other jobs. (3) To determine the hierarchy and place of various jobs in an organisation. (4) To determine the ranks or grades of various jobs. (5) To ensure fair and equitable wages on the basis of relative worth or value of jobs. (6) To minimise wage discrimination based on sex, age, caste, region, religion etc.
Procedure of Job - Evaluation

The basic procedure of job evaluation is to compare the job content of one job with those of another job. INDIAN INSTITUTE OF PERSONNEL MANAGEMENT has evolved the following steps for evaluating job. 1} Analyse and prepare job description 2} Select and prepare a job evaluation plan. 3} Classify jobs 4} Install the programme 5} Maintain the programme.
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Essentials for the of job evaluation programme

1) v v v 2) 3) 4) 5) 6) Compensable factors should represent all of the major aspects of job content. Avoid duplication in excess. Be definable & measurable Not excessive cost. Operating managers must be convinced about the techniques and programmes. Complete information has to be provided to the employees All groups and grades of employees must be covered under this programme The techniques selected must be understandable Trade unions acceptance and support must be obtained.
Job Evaluation Methods / Techniques

Job Evaluation Methods / Techniques
Quantitative Points Rating Method Factors Comparison Method Qualitative Ranking Method
Job classification & Grading Method

Non Quantitative method

Ranking Method
(a) (b) (c) (d) Simple Ranking Ranking the key jobs Paired Comparison Single factor ranking method.
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ADVANTAGES
1] 2] 3] It is a simplest and most cost effective method. This method is appropriate in small organization. It is useful as a first and basic step of job evaluation.
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DISADVANTAGES
1] This provides no yardstick for measuring the relative worth of one job to another.
Job requirements, job specifications and employee specifications are not considered in evaluation It does not indicate the extent or degree to which one job is worthy than the other.
2]
3]
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JOB CLASSIFICATION AND GRADING METHODS

Class and grade are used differently in this method. A GRADE is a group of different jobs of similar difficulty or requiring similar knowledge and skill to perform. A CLASS is a subdivision of a given occupation.
Under this method, jobs at different levels in the organizational hierarchy are divided into various grades with a clear cut definition of each grade. Grades are formulated on the basis of nature of tasks, requirements of skill, knowledge, responsibilities and authority of various jobs.
QUANTITATIVE TECHNIQUES
POINTS RATING METHOD:This is a first method developed on the quantitative basis. This method is analytical in the sense that the jobs are broken into components for the purpose of comparison. The factors like skill, knowledge, responsibility, working conditions etc are given numerical values. These totals are calculated and the values for each job is calculated and accordingly compared.
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ADVANTAGES : 1) 2) 3) 4) Same pay (rates) scale can be arrived at for the same jobs. Definitions are written in applicable terms to the jobs. Points score cannot be manipulated. Wage differentials would be systematic and according to the content of job.
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DISADVANTAGES : 1) 2) 3) It is difficult to determine factor levels and assign point values. It is somewhat difficult to explain this method to employees. Operation of this method needs heavy expenditure.
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FACTOR COMPARISON METHOD

this method is based on both principles of points rating and ranking. Under this, first the components sub factors are ranked under various factor (rating) headings. Then monetary values are assigned to the components or sub factors. Thus, each job is ranked a number of times.
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ADVANTAGES
1) 2) 3) 4) It is analytical $ quantitative It is a combination of 2 good methods. Modus operandi is really understandable. The technique is reliable and valid compared to other techniques as it consists of 2 aspects factor rank order factor comparison
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DISADVANTAGES
1) 2) It is costly and somewhat difficult to operate compared to the conventional non quantitative methods. This technique does not consider all the sub factors as the operation of the system would be difficult if it considers all the factors.
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ESTABLISHING EXTERNAL EQUITY

Employers need to compete for the skills and knowledge they require to operate their businesses ----- in order to attract workers with needed skills and to motivate and retain those already employed. They use wage and salary surveys to find out what other organizations are paying for particular skills. Then, in setting pay rates, they seek to integrate the external information with what they have learned through the internal evaluation of jobs. This process is called pricing the wage structure.
The need for equity is the most important factor in determining pay rates.
Establishing Pay Rates
This is achieved through following steps:Find out the worth of each job through job evaluation. 2. Conduct a salary survey to find what other employers are paying for comparable jobs. 3. Group similar jobs into pay grades 4. Price each pay grade by using wage curves 5. Fine tune pay rates. 1.
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Types of Wage Payments

1. Time rate system:- Oldest Method
Under this system, workers are paid according to the work done during a certain period of time. The essential point is that the production of a worker is not taken into consideration in fixing the wages.
Advantages:Employees maintains the quality of the production. All the workers doing same work gets same wages, so no jealousy. Provides stable earnings to the employees. Disadvantages:No difference between effective and non-effective employees
1. 2.
2. Piece Rate System: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 time taken to do the task. WE=NR Workers earning = Number * Rate per piece. Merits:The workers are paid according to their efficiency as reflected in the amount turned by him. The total unit cost of production remains lower as the unit production increases.
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3. Balance or Debt Method

This is a combination of time and piece rates. The worker is guaranteed an hourly or a day-rate with an alternative piece rate. If the earnings of a worker at piece rate>Amount through time basis =he gets credit for the balance
If the earnings through piece rate = time basis = question of excess payment do not arises.
If the earnings of a worker at piece rate<Amount through time basis = he is paid on the basis of time rate.
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Rewards Systems
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Pay for Performance

An incentive or reward can be anything that attracts an employees attention and stimulates him to work.
According to BURACK and SMITH An incentive scheme is a plan or programme to motivate individuals or group performance. An incentive programme is most frequently built on monetary rewards but may also include a variety of non-monetary rewards.
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Classification or types of incentives:Incentives can be classified into:DIRECT COMPENSATION INDIRECT COMPENSATION
Direct Compensation :- It includes the basic salary or wage that the individual is entitled to for his job, over-time work and holiday premium, bonuses based on performance. Indirect Compensation :- It includes protection programmes (insurance plans, pensions), pay for time not worked, services and perquisites. ---These are maintenance factors.
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Determinants of incentives
The individuals Work situation -Technology - Satisfying job assignment - Feedback - equity Incentive plan
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Incentive Payments
Incentives are monetary benefits paid to workmen in recognition of their outstanding performance.
ILO refers to incentives as PAYMENT BY RESULTS - The primary advantage of incentives is the inducement and motivation for higher efficiency and greater output. - Increased earnings would enable the employees to improve their standard of living and help the organization to improve their production capacity.
Types of Incentive Plans

(i) Plans for blue collar workers (ii) Plans for white collar workers (iii) Plans for managerial personnel Incentive for Blue collar workers (A) Short-Term
Systems under which the rate of extra incentive is in proportion to the extra output. Systems under which the extra incentive is proportionately at a lower rate than the increase in output. Systems under which the rate of incentives is proportionately higher than the rate of increase in output.
Long term incentive plans for blue collar workers.

Under such plans, each member of group receive a bonus based on the output of the group as a whole. The most important reason for adopting group plan as the jobs are interrelated. 1. One workers performance reflects not only his effort, but also of co-workers. 2. It encourages co-operation among group members. 3. Group production levels tend to be more stable than individual ones. 4. Group plans also facilitate on-the job training.
Group incentive plans

-Profit Sharing - Scanlon plan ( plan to reduce the cost of operation and improving working methods and sharing in the gains of increased productivity.
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Incentive plans for White collar workers

75% organization pay this incentive to their sales team. Due to:The unsupervised nature of most sales work. Tradition in the market The assumptions that incentives are needed to motivate salesmen. (a) Straight salary method (b) Straight commission (c) Combination plans
Incentives for managerial personnel

In many organizations, the managers are paid BONUS. There are two types of bonus. 1) Determined by formula , like as increase in sales 2) Determined by some discretion used in the allocation of bonus
For top level management bonuses are generally tied to overall corporate results.
Non-monetary incentives
While monetary incentives often appear as important motivators, many factors unrelated to money can also serve as attention-getters and encouragers of action. Examples:-A person with strong need for affiliation may respond
readily to job assignments. -The opportunity to communicate with and relate to others is a factor many workers emphasize. -An employee with high-level desires for power may respond easily to opportunity, where he can gain leadership. -Persons interested in enhancing their reputations and receiving recognition in the eyes of others, respond to Prepared by Ms. Ritu Arora 161 verbal praise.
Services & Benefits

Besides base compensation and incentives, employees are provided various types of benefits and services by the organizations. These are called by various names such as fringe benefits, employee welfare, wage supplements, sub wages, supplementary compensation, social security etc.
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Definition
Fringe benefits are supplements to wages received by workers at a cost to the employers. The term encompasses a number of benefits-paid vacation, pension, health and insurance plans, etc.which usually add up to something more than a fringe and is sometimes applied to a practice that may constitute dubious benefits for workers.
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Features of Fringe Benefits

Fringe Benefits are provided to employees in addition to their wages and other performance related incentives. These are provided to employees not for the performance of any specific jobs but are offered to them as means for facilitating the performance of their jobs. These are provided to all employees irrespective of their work efficiency.
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Types of Benefits
There are numerous types of benefits which may be provided to employees, and there are different ways to classify them. One such classification may be STATUTORY and VOLUNTARY benefits. Various benefits provided by an organization may be classified under two groups:----- Employee welfare Social Security
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Major benefits offered in INDIA Payments for time not worked

- Weekly off-day - Gazzetted holidays - Personal leave Retirement Benefits - Provident Fund Scheme - Pension Scheme - Gratuity Compensation Benefits Insurance Benefits Recreation Benefits
Productivity
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Performance Appraisal
After an employee has been selected for a job, has been trained to do it and has worked on it for a period of time, his performance should be evaluated. Performance evaluation or appraisal is the process of deciding how employees do their jobs and performance here refers to the degree of accomplishment of the tasks.
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Definitions:Performance appraisal is the method of evaluating the behaviour of employees in the work spot, normally including both the quantitative and qualitative aspects of job performance. So, performance appraisal is a systematic and objective way of evaluating both work related behaviour and potential of employees.
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Features:1} The appraisal is a systematic process. 2} It provides an objective description of an employees relevant strengths and weaknesses. 3} It tries to find out how well the employee is performing the job. 4} The appraisal is carried out periodically, according to definite plan. 5} It is not job-evaluation, but refers to how well one is doing the job. 6} It may be formal or informal in nature.
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Objectives of performance appraisal

Performance appraisal could be taken either for evaluating the performance of employees or for developing them. Evaluation of employees ie appraisal serves several useful purposes: Compensating decisions Promotion decisions Training and development programs. Feedback Personal development
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WHAT IS TO BE APPRAISED ?
Every organization has to decide upon the content to be appraised before the programme is approved. Generally, the content to be appraised is determined on the basis of job analysis.
The content to be appraised may be in the form of contribution to organizational objectives like production, savings in terms of cost, return on capital etc.
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WHO WILL APPRAISE ?

The appraiser may be any person who has thorough knowledge about the job content, contents to be appraised, standards of contents, and who observes the employee white performing a job.
Supervisors Peers Subordinates Self-appraisal Users of services and consultants.
WHEN TO APPRAISE ?
Informal appraisals are conducted whenever the supervisor or personnel managers feel it is necessary. However, systematic appraisals are conducted on a regular basis, say, for ext; every six months or annually.
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The Performance Appraisal Process

Performance appraisal is planned, developed and implemented through a series of steps. (a) Establish performance standards. (b) Communicate the standards. (c) Measure actual performance (d) Compare actual performance with standards and discuss the appraisal (e) Taking corrective action, if necessary.
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Methods of Performance Appraisal
Individual Evaluation Methods - Confidential report - Essay evaluation - Critical incidents
Multiple-Person evaluation methods - Ranking - Paired comparison - Forced distribution
Other methods
- Performance tests - Field review technique
- Graphic rating scale

- Behaviorally anchored rating scales - MBO.
Individual Evaluation Methods:

Here Employees are evaluated once at time without comparing them with other employees: 1) Confidential Report 2) Essay evaluation 3) Critical Incident Technique 4) Graphic Rating Scale 5) MBO 6) Behaviorally Anchored Rating Scale
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BARS IS CONTRUCTED BY -Collecting critical incidents -Identifying performance dimensions -Reclassification of incidents -Assigning score values to incidents -Producing the final instrument
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What is 360 Assessment ?

Its a full-circle overview of a persons performance on the job. Instead of a single evaluation from the boss, a person receives feedback from many workplace source. The boss still gives input, but peers and direct reports also set involved in the evaluation process. The person participating in a 360 gets to rate his or her performance
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Advantages of 360 feedback system

Everybody involved in the process benefits: - Participants gets a fairer, well rounded impression of how their work is viewed by others. - Bosses get an overall perspective about a persons skills. - Peers and direct reports get an opportunity to share concerns which helps them to contribute constructive changes. - Team members can use the information to identify and prioritize team development needs.
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Features of 360 feedback:

- It is an assessment process used to improve managerial effectiveness by providing the manager with a more complete assessment. - The process involves obtaining feedback from the managers key contacts, v The manager himself v Subordinates v Peers v Manager v Customers v suppliers
Features of 360 feedback:

- Feedback is normally gathered by means of a questionnaire, which asks participants to rate the individual according to observed behaviours. - The 360 process will not suit all the companies. Presenting the results of the appraisal to managers in a constructive way is critical to the success to the process.
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360 Performance Appraisal

This is an attempt to the updation of the traditional employee appraisal process & is one of the fashionable techniques of the mid 1990s, fitting in with other news tools called team mgt, employee empowerment and total quality management. 360 - feedback, as the term implies, brings together formal appraisals from everybody that the person being assessed comes into contact with line mangers, subordinates, colleagues, peers, and even outsiders such as clients. Another name for it is multi source feedback and a variant is upward feedback, in which subordinates appraise their supervisors performance.
How does the checkpoint 360 system work ?

1) The standard checkpoint survey has to items and takes approx. 15 minutes to complete it covers competencies in the areas of communications, leadership, adaptability, Relationships, task Management, Production, Development of others. Results from all these surveys are compiled in a confidential feed back report. Graphs and charts relate the data in a detailed, easy to understand format. Participants use the information from the feedback report to establish goals and ongoing action plans, aimed at better utilizing their strong points and improving their weaker skills.
2)
3)
Potential Appraisal
Evaluating what a person can perform or do is called potential appraisal or evaluation. Potential refers to the abilities present but not currently utilized. It is a latent capacity in a person to discharge a responsibility. people are like icebergs. What you see above the surface is only a small part. A large part of the attributes needed to perform excellently in future job, which I call potential is not immediately visible. It is hidden below surface.
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Potential Appraisal
It is characterized by following attributes: 1) Ability to foresee future opportunities 2) Consistency in approach and performance 3) Responsive to condition whatever comes in the way. 4) Person with hight level of integrity. 5) Broader vision and micro perception.
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Why Potential Appraisal ?

1) To promote an employee to higher levels of jobs involving higher order or responsibility, which the employee can effectively discharge without being over burden and stretched. Assist the organization to allocate jobs among employees as per their capabilities so that organizational responsibilities are discharged effectively.
2)
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Evaluation of Employee Potential:

1) 2) 3) Determination of role dimension Determination of mechanism Linking potential with other elements.
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INDUSTRIAL RELATIONS
According to ArmstrongIndustrial relation is concerned with the system and procedures used by unions and employers to determine the reward for effort and other conditions of employment, to protect the interest of the employed and their employers, and to regulate the ways in which employers treat their employees. According to Industrial Labour Organization (ILO)Industrial relation deal with either the relationship between the state and employers and workers organization or the relation between the occupational organizational themselves.
Features of Industrial Relations

Relation between employees and employer The outcome of the practice of human resource HRM and employment relations Accommodating other party interest, values and needs Governed by the system of rules and regulations To maintain harmonious relation between employees and employer Trade union is another important institution in the industrial relation Develop the skills and methods of adjusting
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Objectives of Industrial Relations

To promote and develop congenial labour management relations To enhance the economic status of the worker by improving wages, benefits and by helping in evolving sound budget To regulate the production by minimizing industrial conflicts through state control
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PARTICIPANTS IN IR
Workers & their organizations Managers and their organizations Role of government
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ASPECTS OF IR
DEVELOPMENT OF HEALTHY LABOUR MANAGEMENT RELATIONS Existence of responsible trade unions Collective bargaining,plant discipline & satisfactory trade union Government
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ASPECTS OF IR
MAINTENANCE OF INDUSTRIAL PEACE Legislative enactments & administrative action, labour courts. Implementation & evaluation Committees INDUSTRIAL DEMOCRACY Joint management councils Recognition of human rights Labour is no longer an article or a commodity of commerce Suitable environment to adapt.
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STRATEGIES OF IR
INDUSTRIAL RELATIONS STRATEGIES
INTERNAL STRATEGIES
EXTERNAL STRATEGIES
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INTERNAL STRATEGIES
The attitudes of management to employees & unions The attitudes of employees to management The attitudes of employees to unions The prosperity of company, degree to which it expands ,stagnates or run down Extent to which technological changes are likely to affect employment conditions & opportunities
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EXTERNAL STRATEGIES
The effectiveness of unions & its officials and extent to which officials can control the activities of supervisors within the company. The extent to which bargaining is carried out at national or local plant level. .the legal framework within which industrial relations exists.
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SCOPE OF IR WORK
Administration,including overall organization,supervision and co-ordination. Liaison with outside groups and personnel departments as well as with various cadres of the management staff. The drafting of regulations,rules,laws or orders,and their construction and interpretation. Employee counseling on all types of personnel problems-educational , vocational, health, or behavior problems. Suggestions plans and their uses in labour , management and production committees.
FUNCTIONAL REQUIREMENTS OF A SUCCESSFUL IR PROGRAMME

Top management support Sound personnel policies Adequate practices should be developed by professionals Detailed supervisory training Follow-up of results
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OUTPLACEMENT
Professional coaching, practical guidance and essential facilities to help people move to the next stage in their careers, either within their current organizations or elsewhere.
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Outplacement assistance
Efforts made by the employer to help a recently separated worker to find a job. Assistance-paid leave, -travel charges, -search firm charges to the retrenched employees
Services & Training Provided in Outplacement

Writing better resumes Preparing for the interviews Mock interviews Telling about networks & networkings
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Services & Training Provided in Outplacement

How to start their own private enterprise and how to approach venture capitalists. A place to continue to operate in with a cubicle, a computer with Internet connection.
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ADVANTAGES
It shows the human face of the company. Eases the pain of retrenchment. Preserves the morale of remaining employees. Smoothens the way for further downsizing moves Helps to retain former employees respect.
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DISADVANTAGES
Time consuming Expensive Complex task Less acceptability Limited coverage Difficulty in implementation
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OUTSOURCING
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OUTSOURCING
Outsourcing is subcontracting a process, such as product design or manufacturing, to a thirdparty company .
The client organization and the supplier enter into a contractual agreement that defines the transferred services.
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Human Resource Outsourcing

Human Resource Outsourcingis a process in which a company uses the services of a third party to take care of its HR functions. A company may outsource a few or all of its HR related activities to a single or combination of service providers located in offshore destinations like India, China, Philippines, etc.
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Why do you need HRO?

Are you comfortable letting someone else handle your HR functions? Do you have dedicated HR representatives or adequate resources to manage your HR needs?
Can your business afford an HR outsourcing firm?
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Basic services offered by HRO

Overseeing organizational structure and staffing requirements Recruiting, training and development Tracking departmental objectives, goals and strategies Employee and manager training Benefits administration Employee orientation programs
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Basic services offered by HRO

Providing you with skilled professionals who are focused specifically on HR Helping you reduce and manage operating costs Improving employee relations If you need to hand off the entire HR function, consider a professional employer organization
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Reasons for outsourcing

Cost Saving Cost Restructuring Quality Improvement Knowledge Contract Operational Expertise Staffing Issues Capacity management
Reasons for outsourcing

Catalyst for Change Reduce Time to Market Commodification Risk management Time zone Customer pressure
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Process of Outsourcing
1.Deciding to outsource 2.Supplier proposals 3.Supplier competition 4.Negotiations 5.Contract finalization 6.Transition 7.Transformation 8.On going service delivery 9.Termination or renewal
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Criticisms of outsourcing
Public opinion Against shareholder views Language skills Social responsibility Quality of service Staff turnover Company knowledge Qualifications of outsourcer Productivity
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Issues of Concern for HR Manager

Instability or military tension Cultural misunderstanding Security & privacy concerns Legal regulations. Special training requirements. Dealing with anxiety of employees abroad.
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INTERNATIONAL HRM
An international business must procure,retain and effectively utilize services of people both at the corporate office and at the foreign office. The process of procuring,allocation,and effectively utilizing human resources in an international business is called international human resources mgmt.
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Human Resource Activities
Procure
Allocate
Utilize
Other
Home
Host-Country Nationals (HCNs)

Parent-Country Nationals (PCNs)
Host
Countries
Third-Country Nationals (TCNs)
Types of Employee
Model of IHRM
Basic steps in IHRM

HRP RECRIUTMENT AND SELECTION TRANING AND DEVELOPMENT PERFORMANCE MANAGEMENT REMUNERATION REPATRIATION EMLOYEE RELATIONS
ETHNOCENTRIC APPROACH
In this approach, all key mgmt. Positions are held by parent country nationals This strategy may be appropriate during the early phases of international business, because firms at that stage are concerned with transplanting a part of the business that has worked well in their home country.
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POLYCENTIRC APPROACH
The polycentric staffing requires host country nationals to be hired to manage subsidiaries ,while parentcountry national occupy key positions in corporate headquarters
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GEOCENTRIC APPROACH
The staffing philosophy seeks the best people for key jobs throughout the organization, regardless of nationality
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The advantages and disadvantages of using PCNs,TCNs and HCNs
Advantages *Familiarity with home office,goals objectives *Promising managers are given international exposure *Easy organizational control and coordination
Disadvantages *Difficulty in adapting to the foreign lang.culture etc *Excessive cost of selection, training etc
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HCNs
Advantages Familiarity Lower cost incurred in hiring,training etc Language and other barriers are removed Disadvantages HCNs have limited career opportunity outside the subsidiary Communication problem with home office personnel
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TCNs
Advantages TCNs are truly international managers Salary and benefit requirement may be lower than for PCNs Disadvantages Host country govt. may resent hiring TCNs Host countrys sensitivity with respect to nationals of specific countries
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The expatriate problem A person living in a country that is not their own
Technical ability
CrossCultural suitability
Family requirements
Selection decision
language
MNC requirements
Factors inPrepared by Ms. Ritu Arora expatriate selection
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Crisis and
Reassignment Abroad
Determining the need for an Expatriate
Adjustment
Post-arrival Departure The Selection Process Pre-assignment Training Crisis and Failure
Repatriation And Adjustment
Orientation and
Training
The Expatriate Assignment Life Cycle

Training and development

Cultural training Language training Practical training Management development and strategy Performance management
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THE REPATRIATION PROCESS

PREPARATION PHYSICAL RELOCATION TRANSITION READJUSTMENT
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Employee Leasing
An employee leasing company is a business, which by agreement and for a fee, places employees of a client company on the leasing company's payroll. In turn, the leasing company "leases" these employees back to their original employer, usually for an unlimited period of time. Through a co-employment relationship with the business and employees, Employee Leasing Organizations will help to reduce your administrative burdens like payroll, payroll taxes and personnel record-keeping. Employee Leasing Organizations can also provide expert guidance in the areas of human resources, compliance, and safety as well as minimize employee turnover with enhanced employee benefits. In many cases employer liability can be significantly reduced
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PEO Employee Leasing - Discover How to Totally
Eliminate Your Workers Compensation Liabilities
No More Workers Comp Audits Zero Workers Comp Claims HR Headaches Eliminated Retention Increase 90% Affordable Employee Benefits
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Benefits of EL
Employee leasing companies provide a number of valuable services to their clients. Typically, an employee leasing company will provide payroll services and assist companies in managing their human resources by providing employee manuals and other services, which are sometimes difficult for smaller companies to provide on their own . Better management of workplace safety can help control the cost of worker compensation. Improved hiring practices and experienced representation in unemployment insurance benefit and tax matters can help keep the cost of unemployment compensation down In some cases, client employers, which could not afford to provide certain benefits such as health insurance, find it affordable to do so when taking advantage of the buying power of an employee leasing company.
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Employee Leasing Organizations are growing at a rate of over 30% per year. Outsourcing nonproductive employee administration responsibilities have become more and more popular. Employee Leasing has taken many forms, PEO's Professional Employer Organizations, ASO's Administrative Service Organizations, Administrative Employers and more.
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HUMAN RESOURCE AUDIT

HRA AND RESEARCH ARE IMPORTANT PARTS OF THE HUMAN RESOURCE MANAGEMENT PROCESS.ALL THE PERSONNEL POLICIES,PRACTICES AND PROGRAMMES MUST BE APPRAISED CRITICALLY IN ORDER TO KNOW THEIR EFFECTIVENESS.
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PURPOSE OF PERSONNEL RECORDS

ENABLING MANAGERS TO TAKE PERSONNEL DECISION. SUPPLYING INFORMATION REQUIRED BY GOVERNMENT AGECIES ON VARIOUS MATTERS. MAINTENANCE OF UPTO DATE INFORMATION OF EMPLOYEES. CONDUCTING RESEARCH IN THE FIELD OF INDUSTIAL RELATION. PROVIDING DATA TO FACILITATE HUMAN RESOURCE AUDIT.
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ESSENTIALS OF RECORD
SIMPLICITY. ACCUARCY.
ECONOMY.
USEFULNESS.
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TYPES
INDIVIDUAL SERVICE RECORDS. PERFOMANCE RECORDS.
LEAVE RECORDS.
TRAINING RECORD. HEALTH AND SAFTY RECORDS.
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PRINCIPLES OF RECORD
PURPOSE FOR WHICH THE RECORD IS KEPT MUST BE JUSTIFIABLE. RECORDS MUST BE CAPABLE OF VERIFICATION. RECORDS MUST BE CLASSIFIED. THE REQUISITE INFORMATION MUST BE AVILABLE WHEN NEEDED. RECORDS MUST BE PRODUCED AND MAINTAINED AT A REASONABLE COST. RECORDS MUST BE PRECISE. THE SYSTEM OF RECORD KEEPING MUST BE ELASTIC.
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RECRUITMENT AND SELECTION AUDIT

Recruitment and selection policy:
Determine recruitment and selection policy. Policy formulation. Communication of policy. Consistency of policy.
Recruitment & selection practices. Programmes.
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HR IN KNOWLEDGE ERA
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WHAT IS KNOWLEDGE ???

KNOWLEDGE IS THE CAPACITY TO ACT IT IS ABOUT ISSUES AND CONTEXT
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TYPES OF KNOWLEDGE
TACIT KNOWLEDGE PERSONAL KNOWLEDGE GAINED THROUGH EXPERIENCE AND IS SHARED THROUGH DIRECT AND FACE TO FACE CONTACT
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EXPLICIT KNOWLEDGE
IS A FORMAL KNOWLEDGE THAT CAN BE PACKAGED AS INFORMATION FOUND IN THE DOCUMENTS OF ORGANISATION REPORTS , ARTICLES AND MANUALS.
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KNOWLEDGE MANAGEMENT
IS A SYSTEMATIC , EXPLICIT AND DELIBERATE BUILDING , RENEWAL,AND APPLICATION TO MAXIMISE ORGANISATIONS KNOWLEDGE RELATED EFFECTIVENESS AND RETURN FROM KNOWLEDGE ASSETS A PROCESS WHEREBY DATABASE IS MAINTAINED TO ENSURE THAT RIGHT INFORMATION REACHES TO THE RIGHT PERSON AT RIGHT TIME.
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WHY WE NEED IT
INDUSTRIAL ECONOMY TO DECENTRALIZED GLOBALIZED ECONOMY. INFORMATION DRIVEN ECONOMY KNOWLEDGE OF LOCAL AREA CROSS CULTURAL DIMENSIONS SHIFTING FOCUS FROM CONSUMPTION OF MATERIAL THINGS TO THE CONSUMPTION OF INFORMATION.
245
FOUR COMPONENTS OF KM
DEVELOPING NEW KNOWLEDGE SECURING NEW AND EXISTING INFORMATION DISTRIBUTING KNOWLEDGE COMBINING AVAILABLE INFORMATION
246
THE WORK OF FOLLOWING IS TOTALLY KNOWLEDGE BASED

CUSTOMER SERVICE INFORMATION SYSTEM FINANCE HR/ ADMINISTRATION MANAGEMENT
247
PROCESS OF KNOWLEDGE MANAGEMENT
248
IDENTIFY
COLLECT
SHARE AND APPLY CREATE AND SELL
SELECT
STORE
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CHALLENGES OF KM
PAST EXPER.
BOUNDED RATIONA LITY
KM
RULES& NORMS
TUNNEL VISION
250
ADVANTAGES
INCREASE IN PRODUCTIVITY IMPROVES QUALITY LEADS TO BETTER COORDINATION IMPROVES WORK ENVT CREATIVE THINKING
251
CONCLUSION
NECESSARY TO MAKE ORGANIZATIONS INNOVATIVE AND COMPETITIVE
ROLE OF HR MANAGER TO TAKE UP THIS CHALLENGE AND TO CREATE AND MANAGE KNOWLEDGE
252
VIRTUAL ORGANISATIONS
IT IS A SOCIAL NETWORK IN WHICH ALL HORIZONTAL AND VERTICAL BOUNDARIES ARE REMOVED. INDIVIDUALS WORKING AT DIFFERENT WORKSPACES CREATION OF NETWORK RELATIONSHIP THAT ALLOWS FOR CONTRACTING , MANUFACTURING , DISTRTIBUTION, MARKETING, OR ANY OTHER BUSINESS FUNCTION
CHARACTERSTICS
POWER FLEXIBILITY INFORMAL COMMUNICATION FLAT ORGANISATION GOAL ORIENTATIONS DYNAMICS HOME WORK NO ORG. BOUNDARIES CUSTOMER ORIENTATION
FEAURES OF VIRTUAL ORGANISATIONS

TECHNOLOGY E-MAIL INTEGRATION (EXPRESS WAY) OFFICE SYSTEMS INTEGRATION VOICE MAIL ALERT MOBILE DATA
255
ADVANTAGES
SAVES TIME, MONEY ELIMINATES LACK OF ACCESS TO EXPERTS PROXIMITY NOT REQUIRED FOR ORGANISATION EXPANSION BALANCE PERSONAL AND PROFESSIONAL LIFE
256
HR ISSUES IN VIRTUAL ORGANISATIONS

1. 2. 3. 4. 5. 6. CAREER DYNAMICS RECRUITMENT IS CONDUCTED UNDER HIGH PRESSURES HIGH PERFORMANCE IS EXPECTED NETWORKING AND SKILLS BECOME CRITICAL STABILITY IN RELATIONS IS NOT REQUIRED NEED OF MOBILITY IS HIGH HEAVY INVESTMENT
257
PERFORMANCE MANAGEMENT
DEFINE PERFORMANCE FACILITATE PERFORMANCE ENCOURAGE PERFORMANCE COMMUNICATION SELECTION PROCESS
258
HR IN MERGER AND ACQUISITIONS

MERGER --- TWO COMPANIES COME TOGETHER TO CREATE A NEW IDENTITY ACQUISITION-ONE COMPANY BUYS OTHER AND APPLIES ITS OWN RULES AND REGULATIONS
259
WHY M &A FAIL

EXPECTATIONS ARE UNREALISTIC TALENT IS LOST OR MISMANAGED REQUIRES AN IMPOSSIBLE DEGREE OF SYNERGY CULTURAL DIFFERENCES UNDER ESTIMATION OF COST ILL CONCEIVED HR INTEGRATION STRATEGIES
260
Stages in M & A
POST UNION
PRE UNION
IN PROCESS UNION
261
KEY TO SUCCESS
WELL THOUGHT GOALS KEY TALENT RETAINED PLANNING AND TIMELY ACCOMPLISH DUE DILLIGENCE ON ISSUES WELL MANAGED TEAM EFFECTIVE LEADERSHIP
262
SKILLS AND COMPETENCIES

STRATEGIC KNOWLEDGE EFFECTIVE COMMUNICATION MOTVATING SKILLS ANALYTICAL SKILLS GOOD TRAINOR AND FACILITATOR GOOD MEDIATOR GOOD LEADER
263
CONCLUSION
HR DEPARTMENT SHOULD PLAY PROACTIVE ROLE TO ANCHOR THE WHOLE PROCESS AND TO MINIMISE THE REASONS OF FAILURE
264

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Human Resource Management

Human Resources Management

Organization as Input-Output system

Using financial resources by human resources

Features of Human Resource Management

Welfare Personnel Aspect Aspect Industrial Relations Aspect

Prepared by Ms. Ritu Arora

Comparison on HRM and Personnel Management

Comparison includes studying Similarity and Differences.

Differences between Personnel Management and HRM

Prepared by Ms. Ritu Arora

HRM in Changing Environment

Economic Environment Population v/s workforce

Legal Environment Political Stability

Technological Environment Reengineering work processes

Socio-Cultural Environment Slashing of jobs

II) Organizational factors Organizations Strategy

Organizational Financial Position

Prepared by Ms. Ritu Arora

Workforce Diversity Parent-country national

Language Diversity Economic Diversity

Prepared by Ms. Ritu Arora FIGURE:Environmental scanning of HRM

Prepared by Ms. Ritu Arora

Prepared by Ms. Ritu Arora

Characteristics of sound HR Policy.

Coverage of HR Policies:a) Social responsibility

b) Employment Practices c) Promotion Policies d) Development Policies e) Relations Policies

Prepared by Ms. Ritu Arora

Sources of content for formulating policies

Prepared by Ms. Ritu Arora

Functions of HRM Managerial functions

Prepared by Ms. Ritu Arora

INPUTS Human And Economic Resources Interacting With Environmental Changes

Organizing: Development of the orgn. structure according to Predetermined plans

Outputs: goods and services needed by the Organization customers

Controlling:assurance that directed action is Taking place According to Predetermined plans.

Prepared by Ms. Ritu Arora

HRM and Corporate Objectives

Prepared by Ms. Ritu Arora

Environmental opportunities and threats

Corporate mission and objectives

Activating strategy Structural implementation Behavioral implementation Functional implementation

Corporate strengths and weaknesses

Personal Values and aspirations of strategists

Acquiring, Developing, Integrating, and Retaining right personnel

Human Resource Information System

Prepared by Ms. Ritu Arora

Scope of Computerized HRIS

Prepared by Ms. Ritu Arora

Human Resource Planning

Prepared by Ms. Ritu Arora

Importance of Human Resource Planning

Prepared by Ms. Ritu Arora

Human Resource Planning Process

Human Resource Planning

Shortage of human resources

Prepared by Ms. Ritu Arora

Techniques for Forecasting Human Resource Needs

Prepared by Ms. Ritu Arora

Forecasting of Human Resource Supply

Prepared by Ms. Ritu Arora

Barriers to effective Human Resource Planning

Prepared by Ms. Ritu Arora

Prepared by Ms. Ritu Arora