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Human Resource Management

(Selected Notes) For Questions: 03335885711

By keeping in mind the outline for Human resource Management MBA III of university of Azad Kashmir, I put my knowledge and research into work to compile these comprehensive notes. These will prove a good source of knowledge and preparation of exam. Please support & appreciate my effort by not trying to reproduce my work without any prior permission.

Prof. Ms Ambreen Bilal MBA Finance, MSC Econamice, B.Ed, University of AJK


Part 01 Introduction to HRMS 1.1 1.2 1.3 1.4 1.5 1.6 Introduction and meaning ------------------------------------------------------06 Basic of HRM-------------------------------------------------------------------------08 Objective of HRM-------------------------------------------------------------------12 Environmental factor in HRM----------------------------------------------------13 Function / activities-----------------------------------------------------------------17 HRM departments/ Area----------------------------------------------------------19

Part ii Acquiring HR (Staffing) 2.1 2.2 2.3 2.4 2.5 2.6 EEO and discrimination-------------------------------------------------------------13 Strategic HR planning (SHRP)-----------------------------------------------------24 Job analysis---------------------------------------------------------------------------28 Job design------------------------------------------------------------------------------36 Recruitment---------------------------------------------------------------------------46 Selection--------------------------------------------------------------------------------54


Part iii Training and development of HR 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 Orientation-----------------------------------------------------------------------------65 Training-----------------------------------------------------------------------------------67 Training methods----------------------------------------------------------------------69 Training and learning-----------------------------------------------------------------73 Placement-------------------------------------------------------------------------------76 Separations-------------------------------------------------------------------------------77 Development-----------------------------------------------------------------------------78 Career planning and development--------------------------------------------------81

Part IV Rewarding and motivating HR 4.1 4.2 Performance Appraisal---------------------------------------------------------------91 Reward and Compensation---------------------------------------------------------98

Part v Labor management relations and collective bargaining 5.1 5.2 Labor management relations and collective bargaining------------------107 Discipline & Governance handling-----------------------------------------------109

Outline 01 Introduction to HRM 1.1 Introduction and meaning & Definition of HRM 1.2 The basics of management Planning Organizing Leading controlling

1.3 Objectives of HRM Organizational objectives Functional objectives Social objectives Personal objectives

1.4 Environmental factors in HRM External factors Internal factors

1.5 Functions / Activities of HRM Employment Transfer, Promotion, Layoff Training and development Compensation administration Health and safety Discipline and discharge etc..

1.5 HRM departments / areas


1.1-INTERODUCTION AND MEANING Human resource refers to the people in an organization. Why HR or people are important to an organization? People are the common element in the organization. They create the strategies and innovations for which organizations are noted. People make an organization efficient. People help in increasing productivity of an organization.

In short we can say assets make things possible, people make things happen. Now lets see what is human resource managed. Definition: According to business directory Human resource management is a management of people to achieve individual behavior and performance that will enhance an organizations effectiveness A set of interrelated functions and process whose goal is to attract, socialize, motivate, maintain and retain an organizations employee HRM can be defined as a field of management which relates to planning, organizing, directing and controlling the functions of procurement, development, maintenance and utilization of labor force with a view to attaining organizational goals economically and effectively Explanation These definitions gives an idea that is an area within management that deals primarily with activities that directly effect how employees are brought into the organization and how they are treated once they are employed. These activities include recruiting, selecting, training, evaluating and compensating employees as well as other activities such as managing labor relations working conditions and other employment related issues.


1.2-BASICS OF HUMAN RESOURCE MANAGEMENT Management Management is the process of efficiency achieving organization objectives with and through people The basics of management Management typically requires the condition of several vital components that will call function. The main /basic function of management is...




Strategic HRM planning Recruiting Selection



1-Planning A management functions focusing on setting organizational goals establishing strategy and developing plans to coordinate activities. 2-Organizaing A management function that deals with determining what job are to be done, by whom, where decisions are to be made, and how to group employees

3-Leading Function that includes motivating employees, directing others, selecting the most effective communication channels and resolving conflicts. 4-Controlling Monitoring activities to ensure they are being accomplished as planned and correcting any significant deviation. Management roles In the late 1960s a graduate student at MIT, Henry Mintzberg , undertook a careful study of five executives to determine what these managers did on their jobs. On the biases of his observation of these managers, Mintzberg concluded that managers perform 10 different , highly interrelated roles or set of behaviors attributes to their jobs. Management roles ROLE Interpersonal Figurehead Symbolic head required to perform a number of routine duties of a legal or social nature. Leader Liaison Responsible for the motivation and direction of employees Maintains a network of outside contacts who provide favors and information. DESCRIPTION

Informational Monitor Receives wide verity of information, serves as nerve centre of internal and external information of the organization. Disseminator Transmits information received from outsiders or from other employees to member of organization spokesperson Transmits information to outsiders on org. plans, polices, action and results serves as expert on organizations industry

Decisional Entrepreneur Searches organization and its environment for opportunities and initiates projects to bring about change. Disturbance handler Responsible for corrective action when organization faces important, unexpected disturbances Resources allocator Negotiator Make or approves significant organizational decision. Responsible for representing the organization at major negotiation.

Management skills Still another way of considering what managers do is to look at skills or competencies they need to achieve their goals. Robert Katz has identified three essential management skills, technical skills, human skills.


Technical skills Technical skills encompass the ability to apply specialized knowledge or expertise. When you think of the skills held by professionals such as civil engineers or oral surgeons, you typically focus on their technical skills, through extensive formal education , they have learned the special knowledge and practices of their field. Human skills The ability to work wit , understand and motivate other people both individually and in groups describes human skills. Many people are technically proficient but personally incompetent. They might be poor listeners, unable to understand these needs of others, or have difficulty managing conflicts. Because managers get thing done through other people, they must have good human skills to communicate, motivate and delegate. Conceptual skills Managers must have the mental ability to analyze and diagnose complex situations. These takes require conceptual skills. Decision making for instances require managers to identify problems, develop alternative solution to correct those problems, evaluate those alternatives and select the best one.



1-ORGANIZATIONAL OBJECTIVES Supporting activities / function 1-Human resource planning 2-Employee relation 3-Selection 4-Training and development 5-Appraisal 6-Placement

2-FUNCTIONAL OBJECTIVES 1. 2. 3. Appraisal Placement Assessment

3-SOCIAL OBJECTIVES 1. Legal compliance 2. 3. Benefits Unionmanagement relations


OBJECTIVES 1. Training and development 2. 3. 4. 5. Appraisal Placement Compensation assessment

Objectives Objectives are benchmarks against which actions are evaluated Overall objectives of HRM Overall objectives of HRM are to improve the productive contribution of people to the organization in ways that are strategically, ethically and socially responsible


There are four objectives of HRM Organizational objectives Line and staff department. The HRM department exist to help managers achieve the objectives of organization.HR management is not an end in itself, it is only a means of assisting managers with their HR issues Functional objectives To maintain the department contribution a level appropriate to the organizations needs. Resources are wasted when HR management is more or less sophisticated then the organization demands. Realizing that the HR department had grown too large. Social objectives To be ethically and socially responsive to the needs and challenges of society while minimizing the negative impart of such demands on the organization. Personal objectives To assist employees in achieving their personal goals, at least insofar those goals enhance the individuals contribution to the organization. The personal objectives of employees must be met if workers are to be maintained, retained and motivated otherwise they may leave. 1.4-ENVIORNMENTAL FACTOR IN HUMAN RESOURCE MANAGEMENT The factors of HRM can be External environment Internal environment

EXTERNAL ENVIORNMENT These external factors are,


1-Workforce diversity Managers are confronted daily increasing diversity of workforce , within this diversity of national origins, there is an even wider diversity of cultures, religions , languages, educational attainment, skills , values, ages, races, genders and other differentiating variable. HR department value individual diversity because it brings a rich source of innovative prospective to the company. 2-Technological factors Technology is rapidly changing in many areas such as robotic technological advance being introduced to organization at ever increasing pace. These changing technologies reshape the whole organizational structure. 3-Econamic factors HRM department may face following economic factors, Global competition Labor costs are increasingly important Labor markets are international Increased demand for certain skills and knowledge Less demand for unskilled labor Stage of business cycle

4-Government factors How successfully a firm manages its HR depends largely on its ability to deal effectively with government regulations. Operating within the legal framework requires keeping track of the external legal environment and developing internal system to ensure compliance.


5-Global competition One of the most dramatic challenges facing firms is how to compete against foreign firms, both domestically and abroad. 6-Brain drain The loss of high talent key personnel to competitors or start up ventures. High-tech. firms are practically affected to these problems. INTERNAL FACTORS Following are internal factors of HRM 1-Unions The HR environment, unions represent on actual challenges to organized companies. HR has to keep satisfied the labor unions while protecting interest of the organization. Demands of unions Wages and benefits Negotiating with unions Ours and working conditions

2-Information system HR Should develop an effective information system so that information can be available at right time to all audience. The information requirements of a full service department are only hinted at by question such as What are the duties and responsibilities of every job in the organization? What are the skills possessed by the every employee? How do internal constraints affect the organization? What are the current trends in competition of employees?


3-Organization culture HR has to protect and project the culture of an organization. Organizational culture is the product of all the organizations features, its people, its success, its failures. Organizational culture reflects the past and shapes the future. 4-Organization conflicts Resolving and managing conflict arising in an organization is a challenge for HR. 5-Organization restructuring Restructuring an organization for betterment is also an important role of HR and also it is a difficult job as well. External factors

Frame work and challenges


Employees relation and assessment

Social Organizational Functional Personal

Preparation and selection

Development and evaluation

Compensation and protection

Internal factors



1.5-FUNCTIONS / ACTIVITIES OF HRM Generally HRM department people performs following functions 1-Employment This Function includes recruitment, selection and induction into the organization. The first decision by management is to add someone in organization that is identification need of a person, skill necessary to do the job and then selecting right candidate. 2-Transfer, Promotion, Layoff When employees are moved from one department to another either because of the needs of the business or because of individual request, the personnel records may be studied to ascertained that they possess the requisite skills. Layoffs typically are processed by the personnel department to insure that the paper order of preference is followed. When a vacancy occurs in a position, it may be filled by promoting a competent employee. 3- Training and development Employees can get trained by two ways. On-job training and coaching by line supervisor. In-service classroom courses and it is supervised by personnel unit.

In organizational development activity the personnel specialist serves in a consulting role to an operating department. He plans programs in corporation with managers of operating departments, diagnoses people problems, conducts workshops and provides feedback to the operating managers.


4-Compensiation administration Periodic wage and salary surveys of the labor market are conducted by personnel department and then pays are raised accordingly. 5-Health and safety An organizational health program should consist of activities identification and control of agents within the working environment that can cause occupational diseases. Some agents are gases, dusts, nose, heat, radiation etc. Other element of health program is pre-employment medical examinations, periodic examination and first aid facility at work place. For providing safety to the employees the safety director must prepare safety displays distribute safety leaflets, and develop safety instruction material. 6-Disciplane and discharge Discipline and discharge has two principal meanings. 1. It means training that molds or correct This means the achieving and maintaining of orderly employee behavior because the people understand and believe in the established codes of conduct. The second meaning is punishment of wrongdoers. 2. The personnel department is responsible for formulating the rules and range of penalties for each offence. Discharge is severe penalty and should be used only when a very clear case can be shown. 7-Labor relation The personnel department tasks involved in labor relations is contract negotiation, contract interpretation and administration and grievance handling.


8-Benefits and services Under this category personnel department has to deal with these matters like pensions group, life insurance, sickness, leave pay plans, supplemental unemployment compensation, loan funds, credit unions, social programs recreational programs and college tuition refund plans. 9-Organizational planning The personnel office gathers data, does research, prepares plans and gives advice to the president for organizational planning. Now what is organizational planning? Organizational planning requires the development of a concept of company as a structure or system. The organizational planning staff must prepare organizations charts and positions guides. 10-Organization development The major personnel activity is organization development. Organization development is a general approach for improving the effectiveness of an organization that utilize a verity of applied behavioral science methodologies. The objectives of organizational development are to increase the level of trust and supportiveness among people in the organization, enhance interpersonal skills make communication more open and direct, directly confront problems and to tap the knowledge of all who can contribute to problem solutions. 11- HR planning HR planning is the process by which a firm insures that it has right member of qualified persons available at the proper times, performing jobs that are useful to the organization and which provide satisfaction for the individuals involved. The elements of human resource planning are Goals and planning of organization Current human resource situation.

Human resource forecasting. Designing programs to implement the plans. Audit and adjustment.

12- Equal employment opportunity The chief personnel executive should follow the rules of equal employment opportunity and should not made employment opportunity discrimination on the bases of age, sex, religion, race, nation etc. 13-Personal and behavioral research Important areas for investigation in this field are employees attitudes and motivation, predicting success in management and organizational relationship, improving productivity increase quality of working life. 14-Personnel information system Today many organization uses mathematical analysis, computers, database to HR planning, skill inventory, employee benefits analysis and productivity studies. 1.6-HRM DEPARTMENT / AREAS We can divide HRM department into sub departments


V/P of HRM


Appraisal & compensation

Training & development

Employee safety

Employees relation 20

1-Employment These are of HR deals with recruitments, selection, posting and placement while keeping certain principals in minds equal employment opportunity for all. 2-Appraisal and compensation This department determines pay, pay increase, polices, etc. and also evaluate employees performance against set standards. 3-Training and development This department is responsible skills development of employees 4-Employees safety Take care of employees health hazards during working, insurance, etc 5-Employment relation This includes activities like employees counseling employees negotiation et


OUT LINE 02 Acquiring HR (Staffing) 2.1 2.2 2.3 2.4 2.5 2.6 EEO and discrimination Strategic HR planning (SHRP) Meaning and purpose Hr information system The linkage to strategic HR planning Steps is HRP Assessing currant HR The demand for labor The implementation of future supply Estimated changes in external supply Demand and supply of HR Implementation of HRP Job analysis and design Job design Job content Job design Job design Approaches and motivation Recruitment Selection


2.1-EEO AND DISCRIMINATION Meaning EEO stands for equal employment opportunity (EEO). EEO laws require managers and human resource departments to provide applicants an equal opportunity for employment without regard to race, region, sex, disability, pregnancy, national region or age These EEO laws have an impact on every HR activity including 1-Planning 2-Recruiting 3-Selection 4-placement 5-Training 6-compensation 7-Employee relation As discussed earlier EEO laws compliance is one of HR challenges, that organizations has to face. An overview of EEO laws Types Federal act Source Passed congress/assembly/and enforced by executive branch State & local laws Enacted by Objectives & jurisdiction by To ensure EEO with employees at govt. level and associated firms at federal level

local/provincial To ensure EEO at state / province level



Executive orders

Decreed by the president

To ensure EEO at organization level

Source of variations of EEO The main source of violation of EEO is discrimination on the basis of a persons sex race, or color. What is discrimination? It means dealing/ training people with some profile, differently there are two types of discrimination. Favorable discrimination Discrimination on the basis of their effort, performance or another work-related criterion remains both permissible and divisible. Adverse/ Disparate discrimination When the member of a protected class receive unequal treatment because their membership in that class. 2.2 Strategic HR planning (SHRP) Meaning and purpose To ensure that appropriate personnel one available to meet requirements set during the strategic planning process, human resource managers engage in employment planning. The purpose of this planning efforts is to determine what HRM requirements exists for current future supplies and demands workers.


The linkage to strategic human resource management Mission Determine What business the organization will

Objectives & Goals

Setting goals and objectives


Determine how goals and objectives will be attained


Determining what jobs need to be done and to


Matching skills, knowledge, and abilities to

Assessing current human resources Assessing current human resource management brings by developing a profile of organizations current employees. This internal analysis includes information about the workers and skills they currently possess. One tool for assessing current human resource is maintaining human inventory chart Human resource information system(HRIS) A computerized system that assist in the processing of HRM information. The HRIS is design to quickly fulfill the human resource management information needs of the

organization. The HRIS is database system that keeps important information about employees in a control and accessible location.


Determining the demand for labor Once assessment of the organizations current human resources situation has been made and the future direction of the organization has been considered its time to develop a projection of future human resource needs Future human resource needs projection can be done By keeping an analysis of past trends. By knowing organizational plans to expand. By having a look at project, which organization is going to undertake.

The implementation of future supply/ predicting future supply Estimating changes in internal supply requires HRM to look at those factors that can either increase it employee base. Factors that can increase employee base, New hires Contingent Transfer-in Individuals returning from level

Factors which can decrease employees base Retirement Dismissals Transfer-out of the unit Layoffs Voluntary quits Sabbaticals Prolonged illnesses Deaths.

Estimated changes in external supply Factors discussed in previous topic are internal factors that affect supply of labor. Mow lets see the external factors that affects the external supply. Recent graduates from school , colleges and universities Entrants to the workforce from resources other then school may include people seeking part time jobs. Students seeking work to pay for their education Employees returning from military services Jobs seeks who have been recently laid off Migrations into the country Migrations out of the country

Demand and supply of HR The objectives of employment planning are to bring together the forecasts of future demands for workers and the supply for human resources, both current and future. The result of the effort is to pinpoint shortages both on member and in kind to highlight areas where overstaffing may exists. Implementation of HR As define earlier HRP is a process of determining and organizations HR needs.

HRP can be implemented as follows

Demand for labor Define organization mission Establish corporate goals and objectives Asses current HR HRMS job analysis Demand exceeds supply Supply exceeds demand Recruitment

Compare demand and supply of HR


Supply of HR


Job analysis and design 2.3 Job analysis

Definition 1-Provide information about jobs correctly being done and the knowledge, skills and abilities that individuals need to perform the job adequately 2- Job analysis is the systematic process of collecting and making judgments about all important information related to job. Job analysis is the procedure through which u determine the duties and nature of the jobs and the kinds of people who should be hired for them. Utilize the information it provides to write job descriptions and job specifications that are utilized in recruitment and selection, completion, performance appraisal and training 3-Job analysis is the process of determining by observation and study and reporting pertinent about a specific job Explanation It include the identification of the tasks performed, the machines and equipment utilized, the materials product or services involved , the training, skills, knowledge, and personal traits required of the writer. Basic terminology Lets define the term used during discussion of the job analysis 1-Job A group of tasks that must be preformed if an organization is to achieve its goals. 2- Position The tasks and responsibilities performed by one person, there is opposition for every individual in an organization.


3- Tasks A distinct, identified able work activity composed of motion. 4-Duty A larger work segmented composed of several tasks that are performed by an individual 5-Responsibility An obligation to perform certain tasks and duties. Job analysis process The job analysis process has the following steps 3. 1-Identify how the information will be used because that will determine what idea will be connected and how it will be collected. Interviewing and position analysis questionnaire and some examples of the data collection techniques. 4. 2-Review relevant background information such as organization chart, process chart, and job descriptions. 5. 3-Select representative positions to analyze because there may be too many similar jobs to analyze and it may not be necessary to analyze them all. 6. 4-Analyze the job by collecting data on the activities, required employee behaviors, working conditions and human traits and abilities needed to perform the job. 7. 5-Review and verify the job analysis information with job incumbents to confirm that is factually correct and complete. 8. 6-Develop a job description and job specification from the job analysis information


Understand the purpose of the job analysis

Job description and job specification develop.

Understand the roles of jobs in the organization

Review and verify job analysis information

Identify and analyze the position

Determine how to collect job analysis information

Job analysis procedures following three important documents Job description Job specification Job evaluation

1-Job description A job description is a written statement of what the job holder actually does how he or she does it , and under what conditions the job is performed. There is no standard format for writing job descriptions but most descriptions include sections an; 9. Job identification 10. Job summary 11. Relationship, responsibilities and duties


12. Authority of incumbents 13. Standards of performance 14. Working conditions 15. Job specification 2-Job specification A job specification is a document containing the maximum acceptable qualifications that a person should possess in order to perform a particular job. Items typically included in the job specification are educational requirements, experience, personality traits, and physical abilities. 3-Job evaluation In job evaluation process the worth of job is identified based upon job comparability and according to worth , importance of job and relative value compensation is designed and selected. It suggest about the relevant importance of a particular job in organization.

Job analysis

Job description A statement containing items such as

Job title Location Machines, tools, equipment, material & forms used Supervision given or retired working conditions hazards

Job specification
A statement of human qualification necessary to do the job. Usual conditions such as

Job evaluation
A statement that specifies the relative values of each job in the organization Compensation Administration Demand match in terms of skills, knowledge and abilities Provide valuable information

Education Experience Training Judgment Initiative Physical effort Physical skills Responsibilities Communication skills


Job analysis uses Job analysis can be put in to following uses 1-Staffing All areas of staffing would be hazards if the recruiter did not know the qualifications needed to perform. 2-Training and development If the specification suggests that the job requires a particular knowledge, skill or ability and the person filling the position does not possess all the qualification required, training or development is probably in order. 3-Compensiation and benefits The relative value of a particular job to the company must be known before a dollar value can be placed on it. From an internal prospective the more significant its duties, the more the job is worth. 4-Safty and health Information derived from job analysis is also valuable in identifying safety and health considerations. 5-Employees and labor relation Regardless of whether the firm is unionized, information obtained through job analysis can often lead to more objective human resource decisions 6-Legal consideration Having properly accomplished a job analysis is particularly for supporting the legality of employment practices.


7-Discovering un-assigned duties Job analysis can help reveal un-assigned duties Job analysis-Methods Job analysis traditionally has been connected in a number of different ways. Also firms differ in their needs and in the resources they have for collecting job analysis information. Method of collecting job analysis Introduction 1-In HR specialist can (an HR specialist, job analyst, or consultant) a worker and the workers supervisor usually work together in conducting the job analysis. 2-Job analysis data is usually collected from several employees from different departments, using interviews and questionnaires. The data is then averaged, training into account the departmental context of the employees to determine how much time atypical employee spends on each of several specific tasks. 1-The interview 1- The three types of interviews managers use to collect job analysis data are Individual (to get the employees perspective on the jobs duties and responsibilities Group (when large numbers of employees perform the same job.) Supervisor (to get his / her perspective on the jobs duties and responsibilities.) 2-the pros of using interview are that it is simple, quick, and more comprehensive because the interviewer activities they may never appear in written form. 3-The following questions are some examples of the typical questions What is the job being performed In what activity do you participate etc.

4-The following are interview guidelines Job analysts and supervisor should identify the workers who know the job best and would be objective. Follow a structured guide or checklist Review and verify the data

2-Questionrarie This method is used to evaluate jobs in minimum time. In this technique a detailed questionnaire is prepared and then distribute among employees who fill it and return questionnaire to their supervisor. Structured or unstructured questionnaires may be used to obtain job analysis information. Questionnaires can be a large number of employees can be a quick, efficient ways of gathering information from a large number of employees, but developing and testing questionnaire can be expensive and time consuming. 3-Observation 1-Direct observations are useful when jibs consist of mainly observable physical activity as opposed to mental activity. 2-Managers often use direct observation and interviewing together. Although observation is most commonly used method of gathering information but it is not possible to use the observation method alone. 4-Participant dairy/ legs 1-The employees record every activity he/she engage sin in a dairy or log along with the amount of time to perform each activity to produce a complete picture of the job. 2-Employees may toy to exaggerate some activities and underplay others.


5-Checklists The check list method can be used in large organizations that have a large number of people assigned to the some or similar jobs. The staff groups prepares check lists for various jobs. When check list is prepared it is sent to all employees are required to check all listed tasks that perform and to indicate by check mark amount spent on each task. This technique is costly and in practical in small organizations. 6-Combination of any two Using combination of any two methods to organize job is best technique and have better result.


2.4 Job design Meaning Job design integrates work content (task function relationships) the rewards (extrinsic and intrinsic) and the qualification required (skills , knowledge , abilities ) for each job in a way that meets the needs of employees and the organizations.
Work contents Tasks Functions relationships


Job design

Skills Knowledge abilities

Rewards Intrinsic extrinsic

Work contents / job contents Job is the collection of tasks and task is a duty or activity performed by a person Job contents means the activities one has to do at his job. Job contents are determined by, The specification of individual tasks. The specification of methods of performing each tasks The combination of tasks into specific jobs to be assigned to the individuals

Methods of job design Each job four method required


1) Work simplification From work simplification we means to make the work more simple by splitting / dividing it into small fragments or make the work so simple so every one can easily understand it or develop a simple system keeping in view the polices and economy. 2- Job relation Relation of job means movement of employee from one job to another job periodically. In this rotation actual job does not change but employees are changed or employees are rotated from one job to another job. Job relation is very important in every organization because if one employee perform the same job whole day. Then he become fed up from that vary job so in order to interest of the employees it is necessary to change the work of one employee during his working hours. E.g. we take a most simple example of sweeper hid duty is to clean all the office and furniture so in order to keep the interest of sweeper it is necessary to make change during his working hour I.e. he should be ordered for putting the files from one desk to another. It necessary because it is natural perception that human beings like changes. 3- Job enlargement Job enlargement means adding more or different tasks to the job or simple tasks are added to the job that was simple in nature. In simple words we can say that job enlargement means adding simple tasks to a specialized job this process is called horizontal job enlargement 4- Job enrichment Job enrichment means deleting to employees certain function to supervision like to plan , organize , lead , and control the work of his subordinates e.g. in university we take example of one professor whose duty is to only deliver the lecture so in order to increase efficiency and motivation if he is appointed as incharge of an academic of the department so he will work with more interest. This is often called vertical job loading or vertical job enrichment.


Factor effecting job design The factors that play a vital role in job design are 1- Technology The type of equipment or tools as well as particular work layout and methods, used in producing goods or services tends to act as constraint. Technology may make job more difficult or expensive, but not impossible 2- Economic factors Although job design may be desirable, its cost must constantly be kept in mind and weighed up against real benefits likely to be obtained. 3- Laws and Government regulation Law relating to labor, environment or safety which is being violated needs to be constantly watched. 4- Union pressure Job design can be affected by the polices and strategies of the union. If not taken into confidence, the union may perceive job design efforts as attempts by management to squeeze out of at employee with out wage increases or even as threat to its position and power. 5-Employment potential It would be purposeless to undertake and elaborate exercise, if the abilities and motivation level of the workers havent reached to the new standards sought to be introduced 6-Management philosophy Along with a organizational goals and strategies, management is in fact the real key. Top management is committed to the concept of job design.


Job analysis The first function of personnel management is the employment / selection function i.e. to select the qualified workers in adequate number. It is concerned with recruitment the right people in the right place at the right time. This function involves two steps.. 1. Determine of what kind or quality of personnel needed and 2. Determine of number of personnel required The first duty of personnel department is to find out accurate information about knowledge, skill, experience etc. that an individual should possess to perform a particular job. It requires job analysis. So we can say that job analysis is the process of collecting all facts relating to the nature of specific job through scientific observation and study. Definition 01 Job analysis is simple procedure with the help of which a personnel manager collects data for job or collect information which is related to the job. Definition 02 The process of obtaining information about the job in the organization. Definition 03 Job analysis is the process of determination and reporting important information regarding a specific job. Definition 04 Knowledge about jobs ad their requirements are collected through the process of job analysis.


Approaches to job design There are three important approaches to job design. 1. Engineering approach 2. Human approach 3. The job characteristics approach 1-Engineering approach Introduction The most important single element in the engineering approaches , proposed by FW Taylor and others , was the task idea. Definition The work of every workman is fully planned out by the management at least one day in advance and each man receives in most cases complete written instruction, describing in detail the task which he is to accomplish. Principles of engineering approach The principle offered by scientific management to job design can be summarized thus.. 1. Work should be scientifically studied. Taylor advocated fragmentation and reutilization of work to reap the advantages of specialization 2. Worked should be arranged so that workers can be efficient 3. Employees selected for work should be matched to the demands of the job. 4. Employees should be trained to perform the job. 5. Monetary compensation should be used to reward successful performance of the job. These principles to job design seem to be quite rational and appealing because they point towards increased organizational performance. Specialization and reutilization over a period of time result in job incumbents becoming experts rather

quickly, leading the high levels of out put. Despite the assumed gains in efficiency, behavioral scientists have found that some job incumbents dislike specialized and routine job. Problems with engineering approach After listening to several complaints from employees about their highly specialized jobs, Walker and Guest indicated the problems with job specialization thus 1-Repitition Employees performed few tasks repeatedly. This quickly led the employees to become vary board with the job. There was no challenge to the employees to learn anything new or to improve the job. 2-Machinical pacing Assembly line workers were made to maintain a certain regular peace of work. They could not take a break when they needed to , or simply divert their attention to some other aspect of the job or another individual. 3- No end product Employees found that they were not turning out any identifiable end product, consequently, they had little pride and enthusiasm in their work. 4- Little social interaction Employees complained that because the assembly line demanded constant, there was very little opportunity to interact on a causal biases with other employees and share their work experiences, benefits and sentiments.


5- No out put Employees also complained that they had little chance to choose the methods by which they performed their jobs, the tool which they used , or the work procedures. This of course , created little interest in the job because there was nothing which they could improve or change. Human relation approach. The human relation approach recognized the need to design job in an interesting manner. In the past two decades much work has been directed to changing job so that job incumbents can satisfy their needs for growth, recognition and responsibility. Including Herzbergs Approach research popularized the notion of enhancing needs satisfaction through what is called job enrichment. One widely publicized approach to job enrichment uses what is called job characteristics model and this has been explained separately in the ensuing section. According to Herzberg there are two types of factors 1. Motivators like achievements, recognition, work itself, responsibility, advancement and growth and 2. Hygiene factors (which merely maintain the employee on the job and in the organization) like working conditions, organizational policies, interpersonal relations, pay and job security. According to Herzberg the employee is dissatisfied with the job if maintenances factors to the required degree are not introduced into the job. But the employee may be satisfied even if the required maintenances factors are provided. Herzberg feels that employees will be satisfied with his job and he will be more productive if motivators are introduced into the job contents. As such, he asserts that the job designer has to introduce hygiene factors adequately to reduce psychological needs of the employees in designing jobs.


The job characteristics approach The job characteristics theory of Hackman and Oldham states that employees will work hard when they are rewarded for the work they do and when the work gives them satisfaction. Hence they suggest that motivation, satisfaction and performance should be integrated in the job design. According to this approach any job can be described in terms of five core job dimensions which are defined as follows.. 1- Task identity The degree to which the job allows workers to complete whole tasks from star to finish, rather then disjointed portions of the job. 2- Skill Variety The degree to which the job requires that workers use a variety of different activities, talents and skills in order to successfully complete the job requirement. 3- Task significance The degree to which the job significantly impacts the lives of others both within and outside the work place. 4- Autonomy The degree to which the job allows workers freedom in planning and scheduling and the methods used to complete the job. 5- Feedback The degree to which the job itself provides workers with clear, direct and understandable knowledge of their performance.


All of the job dimensions impact workers psychologically. The first three dimensions affect whether or not workers view their job meaningful. Autonomy determines the extent of responsibility workers feel. Feedback allows for feelings of satisfaction for a job well done by providing knowledge of results.

Motivating potential

= Skill variety +

task identity

task significance


feed back Score

Jobs that are high on motivating potential must be high at least in one of the three factors that lead to meaningful work and must be high in both autonomy and feedback and vice versa. These three critical psychological states lead to the outcome such as High internal work motivation High growth satisfaction High quality work performance High general job satisfaction High work effectiveness Low absenteeism and turnover Figure 13.1
Core job dimension Critical psychological states Meaning fullness of work Core job dimension

Skill variety Task identity Task significance

High external work motivation High quality work performance High satisfaction with work High work effectiveness Low absenteeism and turnover 44


Responsibility for outcomes of the work Knowledge of the actual results of the work Employees growth needs strength


(Figure 13.1). The model says that internal rewards are obtained by an individual when he learns that he personally has performed well on a task that he cares about. Job characteristics model Ironically the main feature of the job characteristics design method- its intrinsic psychological motivation may be its biggest drawback. Supervisors attempting to apply these principles may discover that many employees these psychological sates are unimportant. In fact research to date indicates that some employees respond exceedingly well to jobs redesigned according to job characteristics dimensions, where as for others, it has no discernible impact.


2.5 Meaning


Recruitment identify sources of potential employees, informing people of job opening and attracting applicants who have the requisite qualifications to perform the jobs

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 process of seeking sources of job candidates.

Relationship between job analysis, recruitment and selection The follow overview of the recruitment process shows link between recruitment, job analysis and selection.
Human Resource Planning Job Job Analysis Information Affirmative Action Recruitment Plan Identified Managers Specific requests of Managers 46 Comments Of recruitment Opening Job Methods Satisfaction pool of recruits

Factors affecting recruitment It is said that the more applications received the better the recruiters chances of finding an individual best suited to the job requirements. But there are some factors that can limit recruiting outcomes. Some of these factors are here under. 1- Organizational image We need noted that positive candidate may not be interested in pursuing job opportunities in the particular organization. The image of the organization, therefore can be a potential constraint, a poor image may limit its attraction to applicants. 2- Job attractiveness If the position to be filled is an unattractive job, recruiting a large and qualified pool of applicants will be difficult. Moreover, jobs viewed as boring, hazardous, anxiety creating, low paying or lacking in promotion potential seldom attract a qualified pool of applicants. 3- Internal organizational polices Internal organization polices, such as promote from within wherever possible may give priority to individuals inside the organization. Such polices, when followed, typically ensure that all positions, other then the lowest-level entry position, will be filled from within the rank although this looks good once one is hired, it may reduce the number of applications. 4- Government influence The government influence in the recruiting process should not be overlooked. An airline that wants to hire only attractive females for flight attendant positions will find itself breaking the low if comparably qualified male candidates are rejected on the biases of gender- or female candidates are rejected on the basis of age.


5- Recruiting costs The last constraint, but certainly not lowest in priority, canters recruiting costs. Recruiting efforts are expensive- costing as much as $10500 per position being filled. Sometime budget restrictions put a time limit on searches, accordingly when an organizations, like minimizing its recruiting travel budget by first interviewing employees using conference calls or through video conferencing. Methods of recruitment Following are two main sources of recruitment along with methods used therein 1. The internal search 2. The external search 1-The internal search Many large organizations attempt to develop their own low-level employees for higher positions, these promotions can occur through an internal search of current employees who have bid for the current job been identified through one of the following two main methods. a) Employee referrals and recommendations A recommendation from a current employee regarding a job applicant. Employee referrals are an excellent means of locating potential employees for hard-to-fill positions. 2- Internal job postings By announcing job within organization by HR department through e-mails putting on by issuing circulars etc... Advantages of internal search 1. Provides greater motivation for good performance 2. Provides greater opportunities for present employees 3. Provides better opportunity to assess abilities

4. Improves morale and organizational loyalty 5. Enable employees to perform the new job with little lost time. 6. It is good for public relation 7. It encourages good individuals who are ambitious. 8. It is less costly then going outside to recruit Disadvantages of external search 1. Creates a narrowing thinking and stale ideas 2. Creates pressures to complete 3. Creates homogeneous workforce 4. Chances to miss well outside talent require strong management development programs specially to train for technology. External recruitment methods Recruitment methods are the specific means through which potential employees are attracted to the firm a) Advertising A way of communicating employment needs within the firm to public through media such as radio, newspaper, television, industry publications, and the internet. Sometimes organizations can perform the recruitment function through blind advertisements in blind advertisement no identification about the company is provided to applicants. Companies can use blind advertisement for many reasons e.g. Company wants to keep the recruitment in low profile so that lesser number of applicants should apply in order to discourage the irrelevant people Due to bad reputation or image of the organization Advertisement in made just for the purpose of test marketing for example just to have knowledge about the supply of applicants in labor market etc.


b) Employment agencies An organization that helps firms recruits employees and, at the same time, aids individuals in their attempt to locate job. There are two types of employment agencies I,e. 1. Public employment 2. Private employment c) Recruiters The most common use of recruiters is with technical and vocational schools, community college, colleges, and universities. d) Special Events It is a recruiting method that involves an effort on the part of a single employer or group of employers to attract a large number of applicants for interview. e) Internships A special form of recruiting that involves placing student in a temporary job. There is no obligation on the part of the company to permanently hire the student and no obligation on the part of the student to accept a permanent position with the firm. Hiring college student to work as student interns is typically viewed as training activity rather then as a recruiting activity. However, organizations that sponsor internship programs have found that such programs represent an excellent means of recruiting outstanding employees. f) Executive search firms Executive search firms sometimes called HEAD HUNTERS are specialized from of private employment agencies that place top level executives and experienced professionals. There the organizations that seek the most- qualified executives available for a specific position and do generally retained by the company need a specific type of individual.


g) Professional associates Associations in many business professions such as finance, marketing, informational technology, and human resources provide recruitment and placement services for their members. Professional associations and trade organizations provide a valuable service in bringing together professional and professional job opening. Most professional organizations have newsletters, annual meetings and trade publications that adverse job opening. The annual meetings of these organizations are good occasion for professionals to learn about available job openings and for employers to interview potential applicants. h) Unsolicited walk-in Applicants If an organization has the reputation of being a good place to work, it may be able to attract good prospective employees without extensive recruitment efforts. i) Open houses Firms pair potential hires and managers in a warm, casual environment that encourages on-the-spot job offers j) Event recruiting Attend the events that the people you are seeking go to. k) Virtual job fairs Individuals meet recruiters face to face in interviews conducted over special computers that have lenses that transmit head-and shoulder image of both parties l) Cyber recruiting Organizations can also use websites and internet sources to recruit people application submission test and interview and other recruitment and selection activities can be performed online.


Advantages of external recruitment 1. Provide new ideas and new insights. 2. Provides greater diversity and help achieve EEO goals by making affirmative action easy 3. Provide opportunities to handle rapid growth if the organization 4. Opportunities to get people with up-to-date knowledge education and training Disadvantages of external recruiting 1. It is more expensive and time consuming 2. Destroy incentives of present employees to strive for promotion 3. More chances to commit hiring mistakes due to difficult applicants assessment that will lead to wastage of resources E) Alternatives to recruitment When an organization decides to add personnel to its staff it makes a significant financial investment. Recruitment and selection costs are high, especially for professionals, technical and managerial employees. Therefore before an organization decides to recruit new employees, it ought to consider the feasibility of other alternatives. i) Outsourcing Outsourcing is the process of transferring responsibility for an area of services and its objectives to an external services provider instead of internal employee. ii) Contingent workers It is also known as part timers, temporaries, and independent contractors, comprise the faster- growing segment of our economy


iii) Employee leasing Using this approach a firm terminates some or most of its employees. A leasing company then hires them, usually at the same salary, and leases them back to the former employer, who becomes the Clint. iv) Overtime Perhaps the most commonly used method of meeting short-term fluctuations in work volume is through the use of overtime.


2.6 Selection


Selection is the process of choosing from a group of applicant those individuals best suited for a particular position. Most managers recognize that employee selection is one of their most difficult and most important business decisions. This process involves making judgment-not about the applicant, but about fit between the applicant and the job by considering knowledge, skills and abilities and other characteristics required to perform the job selection procedures are not carried out through standard pattern and steps in this. Process can vary from organization to organization some steps performed and considered important by one organization can be skipped by other organization. Selection criteria Mostly the selection of applicant depends upon the following factors or criterions 1. Education 2. Competencies 3. Experience 4. Skills and abilities 5. Personal characteristics Validation of selection criteria We will emphasize these elements as they relate to employment test, but they are relevant to any validation of selection criteria 1-Relaibility A selection devices consistency of measurement. 2- Validity The proven relationship of a selection device to relevant criterion

3- Content validity The degree to which test content, as a sample, represents a;; situations that could have been include, such as a typing test for clerk typist. 4- Construct validity The degree to which a particular trait relates to successful job performance, as in IQ test. 5- Criterion- related validity The degree to which a particular selection device accurately predicts the important elements of work behavior, as in the relationship between a test score and job performance. 6- Predictive validity Validating tastes by using prospective applicants as the study group. 7-Concurrent validity Validating tests by using current employees as the study group 8- Cut score A scoring point below which applicants are rejected. Selection process The selection process typically begins with the preliminary interview; next, candidates complete the application for employment. They progress through a series of selection tests, the employment interview and reference and background checks. The successful applicants receive a company physical examination and are employed if the results are satisfactory. Several external and internal factors impact the selection process, and the manager must take them into account in making selection decisions. Typically selection process consists of the following


steps but it is not necessary that all organization go through all these steps as per requirement of the organization some steps can be skipped while performing the selection process. 1. Initial screening 2. Application blank 3. Pre-employment testing General intelligence tests Attitude tests Personality and interest test Achievement test Honesty test
Background checks Conditional job offer

Final selection decision

Medical exam / drug tests

4. Interview

Structured interview Unstructured interview Mixed interview

Application blank

Pre-employment testing

5. Background checks 6. Conditional job offer

Initial screening 7. Medical exam / drug tests 8. Final selection decision 1-Initial screening The selection process often begins with an initial screening of applicants to remove individuals who obviously do not meet the position requirements. At this stage, a few straightforward questions are asked. An applicant may obviously ne unqualified to fill the advertised position, but well qualified to work in other open positions. The purpose of screening so to decrease the number of applicants being considered for selection


Sources utilize in the screening effort Personal resume presented with the job applications is considered as source of information that can be sued for initial screening process. It mainly includes information in the following areas. Employment and education history Evaluation of character Evaluation of job performance

Screening interviews Screening interviews are used to, To verify information provided on resume or application blank They are usually vary short ( approximately 30 minutes or so)

Advantages of successful screening If the screening efforts are successful those information do not meet minimum, required qualifications will not move to the next stage in the selection process. Companies utilizing expensive selection procedures put more efforts= in screening to reduce costs. 2- Application blanks / review of applications Application blank is a formal blank record of an individuals application for employment. The next step in the selection process may involve having the prospective employee complete an application for employment. The specific type of information may vary from firm to firm and even by job type within an organization. However, the application forms must reflect not only the firms informational needs but also EEO requirements. Application forms are good way to quickly collect verifiable and fairly accurate historical data from the candidate


3- Types of employment tests Individuals differ in characteristics related to job performance. These differences which are measurable, relate to cognitive abilities, psychomotor abilities, job knowledge, work samples, vocational interests, and personality. Various tests measure these differences. a) Cognitive aptitude tests It measures an individuals ability to learn, as well as to perform a job-related abilities may be classified as verbal, numerical, perpetual speed, spatial, and reasoning. b) Psychomotor abilities This type of test is use to measure strength, coordination, and dexterity. It is feasible to measure many abilities that are involved in many routine production job and some office jobs. c) Job knowledge tests This sort of test is designed to measure a candidates knowledge of the duties of the position for which he or she is applying. d) Work-sample tests (Simulations) It identifies the task or set of tasks that are representative to of the job. The evidences concerning these tests, to date, is that they produce high predictive validity, reduce impact, and are more acceptable to applicants. e) Vocational interests tests It indicates the occupation in which a person is most interested and is most likely to receive satisfaction.


f) Personality tests It is a selection tools, personality tests have not been as useful as other types of tests. They are often characterized by low reliability and low validity. Because some personality tests emphasize subjective interpretation, the services of a qualified psychologist are required. g) Drug and Alcohol testing Basic purpose of drug testing programs contends that it is necessary to ensure workplace safety, security and productivity h) Genetic teasing As genetic research progress, confirmed link between specific gene mutations and diseases are emerging. Genetic testing can now determine whether a person carries the gene mutation for certain diseases including hart disease, colon cancer, and huntings disease. i) Honest test For many years, another means used to verify background information has been the polygraph, or lie detector test. One purpose of the polygraph was to confirm or refute the information contained in the application blank. Special test have been constructed to measure the orientation of the individual toward the issue of the honesty and personal integrity. Honesty test is the most frequently used psychological tests in industry. These tests contain questions regarding such situations as whether a person who has taken company merchandize should be trusted in another job that involves handling company money. An individuals response to the test statements indicates the individuals attitudes toward the theft, embezzlement, and dishonest practices. Extensive research has shown that some of these instruments not only produce reliable information that validly predicts dishonest behavior, but that they also are free from biases of age, sex, and race. These honesty tests represent a valuable tool for choosing employees who will occupy positions that involve handling company money.


j) Interest testing The interest is being increasingly used to test various skills required by applicants. 4- Job interview Interview is a goal oriented conversation in which the interviewer and applicant exchange information. The employment interview is especially significant because the applicants who reach this stage are considered to be the most promising candidates Types of interview Interview may be classified in two types by the degree to which they are structured. A) The unstructured interview (Nondirective) interview Unstructured interview is an interview where probing, open-ended questions are asked. This type of interview is comprehensive, and the interviewer is encourages the applicant to do much of the talking. B) The structured (Directed or patterned) interview An interview consisting of a series of job related questions that are asked consistently of each applicant for a particular job is known as structured interview. A structured interview typically contains four types of questions. Situational questions

Pose a hypothetical job situation to determine what the applicant would do in that situation. Job knowledge question

Probe the applicants job-related knowledge Job- sample simulation questions


Involve situations in which an applicant may be actually required to perform a sample task from the job Worker requirements questions

Seek to determine the applicants willingness to conform to the requirements of the job. c) Behavior description interviewing A structured interview that uses questions designed to probe the candidates past behavior in specific situations. It avoids making judgments about applicants personalities and avoids hypothetical and self-evaluative questions. Benchmark answers derived from behaviors of successful employees are prepared for use in rating applicant responses. Questions asked in behavior description interview are legally safe because they are job related. 5-Methods of interviewing Interview may be conducted in several ways. A) One-on-one interview In a typical employment interview, the applicant meets one-on-one with an interviewer. As the interview may be a highly emotional occasion for the applicant, meeting alone with the interviewer is often less threatening. B) Group interview Several applicants interact in the presence of one or more company representatives C) Board interview One candidate is interviewed by several representative of the firm D) Stress interview Intentionally creates anxiety to determine how an applicant will react to stress on the job.


6- Realistic interview RJP conveys job information to the applicant in an unbiased manner, including both positive and negative factors. 7-How to avoid common interviewing mistakes a) Snap judgment This is where the interviewer jumps to conclusion about the candidate during the first few minutes of the interview. Using a structured interview is one way to help avoid this, as well as properly training the interviewers b) Negative emphasis When an interviewer has received information about the candidate, through references or other sources, he or she will almost always view the candidate negatively. The best way to avoid this is to keep references or other information from interviewer. if possible, have different people do the reference checks and the interviews and not share the information until afterwards. c) Poor knowledge of the job. When interviewer does not have a good understanding of the job requirements, they do not make good selections of candidates. All interviewers should clearly understand the jobs and know what is needed for success in those jobs. d) Pressure to hire Anytime an interviewer is told that he or she must hire a certain number of people within a short time frame, poor selection decisions may be made. This type of pressure should be avoided whenever possible.


e) Candidate order (Contrast) error. When an adequate candidate is preceded by either an outstanding, or a poor candidate, by contrast he or she looks either less satisfactory or much better. This can be countered through interviewer training, allowing time between interviews and structured rating forms. f) Influence of non-verbal behavior Candidate who exhibit stronger non-verbal behavior such as eye contact and energy level are perceived as stronger by the interviewers. This can be minimized through interviewer training and structured interviews. Guideline for conducting interview Plan the interview Establish rapport Ask questions Close the interview Review the interview


Part III Training and development of human resource 3.1 Orientation Definition Objectives Essential Outcomes

3.2 Training Introduction Training Importance of training

3.3 Training methods On-the- job Vestibule classroom

3.4 Training and learning Definition What is learning? Theories of learning

4.5 Evaluating training and development effectiveness 4.6 placements 4.7 development


3.1 Orientation Introduction Activities that introduce new employees to the organization and their work unit. Definition Orientation is the guided adjustment of employee to the organization and work environment Who is responsible for orientation? Two people are responsible for orientation. New employees supervisor The people in HRM

Why orientation? Orientation is important because it helps an employee to understand organization culture Organization culture The system of sharing meaning with in organization that determines how employees act An employee who has been properly socialized to the organizations culture knows what acceptable behavior is and what is not. Objectives of orientation The objectives of orientation are multifaceted. 1. Create favorable attitude of new employee towards company, its polices and its personnel. 2. It creates a feeling of belonging and acceptance. 3. It can minimize rules violations discharge, grievances and misunderstandings.


How it is responsible for orientation After an employee is hired both the personnel department and the supervisor are responsible for orientation. The role of supervisor is to introduce new employee with old ones and with work environment. He should tell him / her about nature of duties and introduce with him and co-workers. The personnel department of orientation program and its execution. Essential contents of orientation program. An orientation program should consist of following information and actions. 1. Company history, polices, practices 2. Company products 3. Company plants and faculties 4. Organizational structure 5. Employee responsibilities to company 6. Pay treatment 7. Rules of conduct 8. Tour of department 9. Work schedule 10. Collective bargaining agreement 11. Benefits plans- like insurance 12. Safety programs 13. Training opportunities 14. Promotion policy 15. Introduction to fellow employees 16. Establishment of feeling of belonging, acceptance 17. Employee appraisal system 18. Work assignment.


Out comes or orientation programs A successful orientation program in... 1. Removal of anxiousity of new employee 2. Removal of their hesitation 3. Making new employees to discuss problems with their supervisor 4. Making new employee friendly, by giving them sense of belonging.

3.2 Traning Introduction To operate organizations, large or small requires staffing with competent personnel. A person will be competent if he or she is well trained. Now lets see what is training. Definition of Training Training is the organized procedure by which people lean knowledge and or skills for a definite purpose The objective of training is to achieve a change in the behavior of those trained. Training is different from education. Education is broader in scope. Its purpose is to develop the individual. Commonly education is considered to be formal education is a school, college or university whereas training is vocationally oriented end occurs in a work organization. Importance of training Training is vital and necessary activity in all organizations. It plays a large part in determining the effectiveness and efficiency of the organization. Lets see benefits of training for an organization


1- Reduce training time to reach acceptable performance By having qualified instructors and carefully controlled learning situation, management can be able to shortened learning periods of new employees. 2-Improve performance on present job Training applies not only to new employees but experienced people as well as the performance of present employees can be improved by giving them training. 3-Attitude formation A common objective of company training programs is to molding of employee attitudes to achieve support for company activities and to obtain better corporation and greater loyalty. 4- Aid in solving operational problems Operational problems in an organization can be reduce turnover, absenteeism, accidents, grievance rates, low morale etc. by training in of the both supervisors and hourly paid employees can help in solving these operational problems. 5-Fill manpower needs If an organization found difficult to recruit skilled people, then to solve this problems in long run, it should give training to its existing employees in order to make them more skilled. 6- Benefits to employees themselves Training is not only beneficial for organization but also for employees themselves. Because training increase their knowledge and skill which in turn increase the market value of employees.


3.3 Training methods Training methods There are many methods of training which method will be used it depends on such factors , cost, time available, number of persons to be trained, depth of knowledge required, background of the trainees and many other factors.
Methods of training

1) On the job

2) Vestibule

3) Classroom

1- On the job On the job training means training employees while performing their jobs. It is normally done by the supervisor It is the duty of supervisor to construct an on- the- job training programs. He can trained people through himself or through an other experienced employees. The instructor of the training should be well aware of that job related knowledge and skills. The ads and technologies that can be used by an instructor during on the job training are procedure charts, pictures, manuals, sample problems, demonstrations, oral and written explanations and tape recordings. Benefits of this method 1. Give practical experience of actual work conditions 2. Useful for unskilled and semiskilled people 3. Less costly 4. Useful in giving training of technical nature thing.


Drawbacks 1. You can give training to only few employee at a time 2. Untrained employee can damage costly machinery 2- Vestibule training Vestibule training is the term used to destitute training in a class room for semiskilled production and clinical jobs. This method is appropriate when a large number of employees must be trained at the same time for the same kind of work. When this method is used the management should be well qualified. In this method emphasis tends to be upon learning rather then production. In this method the learning condition should be controlled carefully. 3- Class room method Class room instruction is useful to learn philosophy, concepts, attributes, theories and problem solving abilities. There are many classroom instruction techniques. These are a) Lecture Lecture is a formal organized talk by the instructor a group of students. The lecturer is presumed to possess a considerable depth of knowledge of the subject at hand. The main benefit of this technique is that it can be used for very large groups and thus the cost per trainee is low. Limitation of this method Lecturers are passive It ignores principle of learning by doing It is one way communication There is no feed back from audience

It may be above or below the audience level of training

These lectures must be used with other techniques in order to gain fruity results. b) Conference A conference is small group meeting, conducted according to an organized plan in which the leader seeks to develop knowledge and understanding by obtaining a considerable amount of oral participation from the trainees or students It overcomes the limitations of lecture such as 1. Lectures are optimistic because they play active role 2. It provides feed back 3. It seeks contribution from students There are three basic kinds of conferences 1. The directed conference 2. The consultative conference 3. The problem solving conference c) Case study In this method a problem is assigned to students by instructor. The student study this problem and give suggestion to solve problem on the basis of their theatrical knowledge. Infect it is practical implementation of theoretical knowledge. The case study method of instruction provides for learning by doing. This method is useful for developing analytical thinking and problem-solving ability. d) Role playing In the role playing two or more trainees are assigned parts to play before the rest of the class. There is no lines to memorize and no rehearsals. The role players are provided with either written or oral descriptions of a situation and the role they are to play.

This technique is widely used in human relation and leadership techniques. It gives opportunity to a trainee to perform just like as he is actually facing a particular situation This technique should be used with other techniques. e) Programmed instruction Programmed instruction is also called teaching machine. The key features of this method are.. 1. Students learn at their own pace 2. Instructions are not a key part of learning 3. The material to be learned is broken down into small units or stages. 4. Each step logically builds upon those that have preceded it 5. The student is given immediate knowledge of result for each answer given. 6. There is active participation by the learner at each step in the program f) Computer- assisted instruction Instruction through computerized presentation by the use of studies. In this method it is easy for learner to gain knowledge. It is costly method but it helps the conveying knowledge easily. g) Learner controlled instruction Learner controlled instruction (LCI) is a relatively new method of training in which the trainees are given considerable choice in determining for themselves the pace at which they learn, the sequencing of the learning steps, the methods used in the process, and the evaluation of their own learning. A large variety of learning methods are media are made available to the trainees. These can include books, films, etc.


h) Simulation and games A simulator is any kind of equipment that duplicates as nearly as possible the actual condition encountered on the job. Like aircraft pilots training is done in flight simulators Games especially business games is very popular source of learning. In business games player feed his or her decision data and see results of his or her decision.

3.4 Training and learning Definition of learning / meaning Any relatively permanent change in behavior that occurs as a result of experience What is learning? Our organization has several components that deserve clarification. 1. First learning involves change. Change may be good or bad from an organizational point of view 2. Second the must be relatively permanent 3. Third our definition is concerned with behavior, learning takes place when there is a change in action 4. Finally experience is necessary for learning, experience may be acquired directly through observation or practice, or it may be acquired indirectly as through reading. Learning / experience curve Experience and learning goes parrell. The more we have experience the more we have learning. Experience may be acquired through practice or through observation and reading. When experience brings in permanent change in behavior then we say learning has taken place .


Experience And Learning


Experience O Time

Theories of learning Three theories have been offered to explain the process by which we acquire pattern of behavior. 1. Classical conditioning 2. Operant conditioning 3. Social learning 1- Classical conditioning A type of conditioning in which a individual responds to some stimulus that would not ordinarily produced such as response. 2- Operant conditioning A type of conditioning in which desired voluntary behavior leads to a reward or prevents a punishment. 3- Social learning Individual can also learn by observing what happens to other people and just being told about some thing, as well as by direct experience


Example We learned comes from watching modules parents, teachers, peers, television, performers, and bosses. We can learn through observation and direct experience has been called social learning theory. 2.5 Evaluation of training efforts If management invests in training programs for employees, it understandably expects to see some tangible benefits derived there from. When training director approaches top management can ask about the effectiveness of training in organization operation. We can measure the training benefits or we can evaluate training effort using following approaches. First approach One approach is to pass on questionnaire to the trainees at the completion of the program to obtain their opinions as to its worth. Second approach Second approach is to measure the knowledge / skill before training and again measure after training, then compare the results. Third approach A better way of measuring the worth of training is to use various indexes of work performance and compare these indexes before training and after training. Fourth approach This approach most refined method for evaluating training. This approach measure performance before and after training for both a control group and experimental group.


This procedure can be accomplished by selecting two groups of employees that are approximately equal in education, experience skills etc. subject one group to the training program and give no training to the other (control) group and compare results or after training use some measures of comparison with before training. 3.5 Definition Placement is the assignment or reassignment of an employee to new job. Types of placement There are three types of placement 1- Promotion Assumption occurs when an employee is moved from a job to another position that is higher in pay, responsibility and / or organizational level. Generally, it is given as a recognition of a persons past performance and future promise. a) Merit-based promotion Merit-based promotions occur when an employee is promotes because of superior performance in the current job. b) Seniority-based promotion In this case senior employee gets the promotion senior in this case means the employee who has the largest length of service with the employer. 2-Transfers Transfer occurs when an employee is moved from one job to another position that is relatively equal in pay, responsibility, and / or organizational level. Placement


3- Demotions Demotions occur when an employee is moved from one job to another position that is lower in pay, responsibility, and / or organizational level. 3.6 Separations Definition A separation is a decision that the individual and organization should part. It may be initiated by the employer or the employee. Additionally it may be motivated by disciplinary, economic, business or personal reasons. Forms of separation There are four forms of separation 1- Temporary leaves of absence Employees sometimes need to leave their jobs temporarily. The reasons may include medical, family, educational , recreational and other motives 2- Attrition Attrition is the normal separation of people from an organization as a result of resignation, retirement or death. It is initiated by the individual worker not by the company. 3- Lay offs Layoffs entail the separation of employees from the organization for economic or business reasons. It occurs because of restructuring such as downsizing or mergers ands acquisitions. Golden shake hand is example of layoffs.


4-Termination Termination is a board term that an employees permanent separation from the organization for any reason. Usually this term implies that the person was forced as a form of discipline. 3.7 Employee development Employee development is more future oriented and more concerned with employee education. By education we mean that employee development activities attempt to instill sound reasoning process I.e. to enhance once ability to understand and interpret knowledge. Employee development helps employee to think and understand Employee development is predominantly an education process rather then a training process. Management development Management development is that part of employee development in which potential management personnel gets training in specific skills related to managing I.e. loaning, organizing, leading, controlling and decision making Management development methods There are three main methods 1. Lecture, courses and seminars 2. Simulations 3. Outdoor training Development


1- Lecture, courses and seminars It is a traditional method of management development which revolves around formal lecture courses and seminars. These help individuals acquire knowledge and develop their conceptual and analytical abilities. 2- out door training The primary focus of such training is to teach trainees the importance of working together of jelling as a team. The purpose of such training is to see how employees react to the difficulties that nature presents to them. Do they face these dangers alone? Do they freak? Are they controlled and successful in achieving their goals?

Development techniques There are three main employee development techniques 1. Job rotation 2. Assist to position 3. Committee assignment 1- Job rotation Moving employees horizontally or vertically to expand their skills, knowledge, or abilities. Job rotation is also a tool to remove bore don attacked with a job and broaden an individuals exposure to companys operations. 2- Assessment to positions Employees with demonstrated potential sometimes work under a seasoned and successful manager often in different areas of the organization working as staff assessments these individuals perform many duties under the watchful eye of a supportive coach. In doing

so, these employees experiences a wide verity of management activities and are groomed for assuming the duties of the next higher level. 3- Committee assignment Committee assignments can allow the employee to share in decision making, to learn by watching others and to investigate specific organization problems. Temporary committees often act as a taskforce to alternative solutions and recommend a solution. These temporary assignments can be both interesting and rewarding to the employees growth. Organizational development vs. organizational change Organizational development (O.D) The part of HRM that address system wide change in the organization in other words OD facilities long-term organization-wide change Its focus is to constructively change attitudes and values among organizational members so that they can more rapidly adapt to and be affective in achieving the new directions of the organization. Organization change Organization change means change in business strategic direction Change usually affects four areas 1. The organizations system 2. Its technologies 3. Its processes 4. Its people


Organizational development vs. organizational change Organizational change constructively change businesss strategic direction and organization development is used as instrument to bring about the change how this happen The effects of change become organizational culture issues. Accordingly, OD efforts help ensure that all organization members support the new culture and assist in bringing the new culture to fruition 3.8 Meaning and importance Career definition A career is a lifelong sequence of jobs integrated with the attitudes and motives of the person as he or she engages in these work roles Career planning Career planning is a subset of career development. it is the personal process of planning. This include evaluating ones abilities and interests examining career opportunities setting career goals and planning appropriate developmental activities. Career development Definition From employment prospective/ individual career development is the planning of ones career and the implementation of career plans by means of education, training, jobs search and acquisition and work experience From organizational prospective career development is the process of guiding the placement, movement and growth of employees through assessment, planned training activities and planned job assignment

Career planning and development

Importance of career planning and development Career planning and development process is important because It helps in meeting individuals career aspiration It helps in meeting organizations objectives and goals. It provides opportunity for companion of ones abilities with job requirements. It helps in putting right people at right job. Helps in employee growth and development.

The value of effective career development Effective career development has value for both Value for Organizations Value for Individuals

1-Value for organization Effective career development is valuable for organization because, 1-Needed talent will be available Career development efforts are consistent with and a natural extension of strategic and employment planning. Changing staff requirement. 2) The organization ability to attract and retain talented employee Outstanding employees will always be scare and competition to secure their services considerable.


3- Minorities and women have comparable opportunities for growth and development EEO legislation and affirmative- action programs have demanded that minority groups and women receive opportunities for growth and development that will prepare them for greater responsibilities within the organization 4- Reduced employee frustration Although the workforce educational level has risen so too have occupational aspiration. However as periods of economic stage nations increase organizations efforts to reduce costs they also reduce opportunities. 5- Organizational good will If employees think their employing organizations care about their long term well-being, they tend to response in kind by projecting positive images of the organization. 6- Enhance cultural diversity The workforce in next decade will continue to reflect a more varies combination of race, nationality, gender and value in the organization 2- Value for the individuals Career development is valuable for an individual employee because it adds to his / her value by enhancing its skills, knowledge and capacity.

Career development stages Many authors have attempted to map out the ideal stages of a successful career and in this section we loosely use the five stages outlined by Greenhouse and Callahan (1994). Few careers follow such an idealized pattern, and even historically such a pattern did not apply for all employees. However, the stage approach offers a useful framework for understanding


Career choices The best career choice offers the best match between what you want and what you need. A good career match then let us develop a positive self-concept and to do word that we think is important.

Lets look at some of the exiting research that can help us to discover which careers may provide the best match for our skills. 1. Holland vocational Preferences: One of the most widely used approaches to guide career choices is the Holland Vocational Preferences model. This theory consists of three major components. First: Holland found that people have varying occupational preferenc3es; we don not all like to do the same things. Second: his research demonstrates that if you do a job you think is important, you will be a more productive employee. Third: you will have more in common with people who have similar interest patterns and less in common with those who dont. This model identifies six vocational themes. 1. Realistic 2. Investigative 3. Artistic 4. Social 5. Enterprising 6. Convential An individuals occupational personality is expressed as some combination of high and low scores on these six themes. High scores indicates that you enjoy those kinds of activities 2. The Schein Anchors:

Edgar Schein has identified following personal value clusters/anchors. 1. Technical-functional competence 2. Managerial competence 3. Security-stability 4. Creativity and 5. Autonomy-independence Most people have two or three value clusters that are important to them. If an organization satisfies two out of three that is considered a stable match. Jung and the Mayers-Briggs Typologies: It is more widely used method and also called MBIT (Myers-briggs type Indicator). The MBIT uses four dimensions of personality to identify 16 different personality types based on responses to an approximately 100-item questionnaire. Four dimensions are; 1. Extroversion vs. Introversion (EI) 2. Sensing vs. Intuitive (SN) 3. Thinking vs. feeling (TF) 4. Judging vs. Perceiving (JP)


Lets develop 16 personality types from above four dimensions in following chart. Sensing type (S) Thinking (T)

Intuitive type (N) Feeling (F) ISFJ Feeling (F) INFJ Thinking (T) INTJ


Introverts (I)



g (P)





Extraverts (E)


g (P)









Career planning and pathing: Career Planning is the process by which one selects career goals and the path to those goals. Career planning is important and essential to HR department and individuals because; 1. It aligns strategy and internal staffing requirements 2. It develops promotable employees 3. It facilitates international placement 4. It assists with work fore diversity 5. It lowers turnover 6. It taps employee potential 7. It reduces hoarding 8. It satisfies employee needs 9. It assists affirmative action plans.


Career Path A career path is the sequence pattern of jobs that forms ones career.

>Linotype operator
Career path

>Teletype operator >Word processor operator > Clerk-Typist Job ladder

Suggestions for more effective organizational career development Organizational career development can be effective by; 1. Management support 2. Feedback 1. Management support: The HR departments efforts to encourage career development have little impact unless they are supported by managers. Commitment by top management is crucial. Without it middle-level managers may show much less support of their subordinates careers. 2. Feedback: Providing feedback about their career development to employees is important, especially; To assure bypassed employees that they are still valued and will be considered for future promotions if they are qualified To explain why they are not selected

To indicate what specific career development actions they should undertake.

Suggestions for improving an individuals career development If we identify a career as the property of the individual, then clearly the responsibility for managing this rests on the individual, who should identify career goals, adopt strategies to support them and devise plans to achieve the goal. The list below describes the type of strategies, identified from a review of the literature by Gould and Penley (1984), and they relate to career improvement/promotion within the organization. Creating opportunities. This involves building the appropriate skills and experiences that are needed for a career in the organization. Developing those skills that are seen as critical to the individuals supervisor and department are most useful, as is exercising leadership in an area where none exists at present. Extended work involvement. This necessitates working long hours, both at the workplace and at home, and may also involve a preoccupation with work issues at all times. Self-nomination/self-presentation. Individuals who pursue this strategy will communicate the desire for increased responsibility to their managers. They will also make known their successes, and build an image of themselves as someone who achieves things. Seeking career guidance. This involves seeking out a more experienced person, either within the organization or without, and looking for guidance or sponsorship. The use of mentor relationships would come into this category.

Networking. Networking involves developing contacts both inside and outside the organization to gain information and support.

Interpersonal attraction. This strategy builds the relationship with ones immediate manager on the basis that he or she will have an impact on career progression. One form of this is opinion conformity; that is, sharing the key opinions of the individuals manager, perhaps with minor deviations. Another is expressed as other enhancement, which may involve sharing personal information with ones manager and becoming interested in similar pursuits.


Part IV Rewarding and motivating HR Q4.1 Performance appraisal

Meaning and importance Performance appraisal process Performance appraisal methods Obstacles and distribution Creating more effective performance

Reward and compensation Reward and compensation Job evaluation Compensation administration Executive compensation benefits


4.1 Meaning and purpose: Meaning:

Performance Appraisal

Performance appraisal is by which organizations evaluate individual job performance. When it is done correctly, employee, their supervisors, the HR department and ultimately the organization benefits. Purpose: Why do a performance appraisal? Performance appraisal primarily meant for to tell employees now they had done over a period of time and to let them know what pay raise they would receive. Then other uses for performance appraisal are; Performance improvement Compensation adjustments Placement decisions Training and development needs Feedback to human resources The performance appraisal process
1. Establish performance standards with employees 2. Mutually set measurable goals 3. Measure actual performance 4. Compare actual performance with standards 5. Discus the appraisal with the employee 6. If necessary, initiate corrective action


1. Establish performance standards with employee The appraisal process begins with establishment of performance standards in accordance with the organizations strategic goals. These performance standards should be clear and objective enough to be understood and measured. 2. Mutually set measurable goals Once performance standard are established, it is necessary to communicate these expectations to employees and then come up with measurable goals after consultation with employees. 3. Measure actual performance The third step is performance measurement. In it we determine what actual performance is, we need information about it. We should be concerned with how we measure and what we measure. 4. Compare actual performance with standards The fourth step in the appraisal process is the comparison of actual performance with standards. This step notes deviations between standard performance and actual performance, so that we can proceed to the fifth step. 5. Discuss the appraisal with the employee It is important step and effects employee motivation. It is easy to tell employee good news as compare to bad news. That is why appraisal must be done carefully. 6. If Necessary, Initiate corrective actions The final step in the appraisal is the identification of corrective action where necessary. Performance appraisal methods There are three approaches for performance appraisal


1. Evaluating absolute standards The first approach is absolute standards i-e measuring an employees performance against established standards. Following are appraisal methods which use evaluating absolute standards approach. I. II. III. IV. V. Critical incident appraisal The checklist The adjective rating scale Force choice Behaviorally anchored rating scales

I. Critical incident appraisal A performance evolution that focuses on key behaviors that differentiate between doing a job effectively or ineffectively. II. Checklist appraisal A performance evolution in which a rater checks off applicable employee attributes. III. Adjective rating scale A performance appraisal method that lists traits and a range of performance for each. Example; Traits Quality of work Performance unsatisfactory satisfactory superior

IV. Forced choice appraisal A performance evolution in which the rater must choose between two specific statements about an employees work behavior.

V. Behaviorally anchored rating scale A performance appraisal technique that generates critical incidents and develops behavioral dimensions of performance. The evaluator appraises behaviors rather that traits. 2. Relative standards Its a second approach and it says evaluation an employees performance by comparing the employee with other employees. Following three methods comes under this approach. I. II. III. Group order ranking Individual ranking Paired comparison

I. Group order ranking Group order ranking requires the evaluator to place employees into particular classification such as top 20 percent. II. Individual ranking Ranking employees performance from highest to lowest. III. Paired comparison Ranking individuals performance by counting the times any one individual is preferred member when compared with all other employees. 3. Outcomes The third approach to appraisal makes use of achieved performance outcomes. Employees are evaluated on how well they accomplished a specific set of objectives determined as critical in the successful completion of their job. This approach is frequently


referred to as goal setting, in many cases more commonly referred to as management by objective (MBO). Management By Objective (MBO) A performance appraisal method that induces mutual objective setting and evaluation based on the attainment of the specific objectives. Obstacles and distortions Following factors distort appraisal.

Inappropriate substitute

Leniency error

Inflationary pressure


Halo error

Central tendency

Similarity error


1. Leniency Error Performance appraisal distortion caused by evaluating employees against ones own value system. The leniency bias results when raters tend to be easy in evaluating the performance of employees. Such raters see all employee performance as good and rate it favorably. 2. Halo error The halo error occurs when the raters personal opinion of the employee influences the measurement of performance. For example, if a supervisor likes an employee, that opinion may distort estimates of the employees performance. This problem is most sever when raters must evaluate personality traits (instead of behaviors), their friends, or people they strongly dislike. 3. Similarity error Evaluating employee based on the way an evaluator perceives himself or herself. When evaluators rate other people in the same way that the evaluators perceive themselves, they make a similarity error. For example, the evaluator who perceives himself or herself as aggressive may evaluate others by looking for aggressiveness. 4. Central tendency The tendency of a rater to give average ratings. It is possible that regardless of who the appraiser evaluates and what traits are used, the pattern of evaluation remains the same. Sometimes the evaluators ability to appraise objectively and accurately has been impeded by a failure to use the extreme scale. When this happens, we call the action central tendency. 5. Inflationary pressure Inflationary pressure affects the no of employees to be promoted. Inflationary pressures have always existed but appear to have increased as a problem over the past three decades. As equality values have grown in importance in our society, as well as fear of retribution from disgruntled employees who fail to achieve excellent appraisals, evaluation has tended to be less

rigorous and negative repercussions from the evaluation to be reduced by generally inflating or upgrading appraisals. 6. Inappropriate substitute Inappropriate substitute for performance means using alternative standard of performance due to uncontrollable environmental conditions. Creating more effective performance management system Performance appraisal system can be effective by using following suggestions.

SUCCESS = Train appraiser + Rate selectively + Have multiple raters + Provide ongoing feedback + Combine absolute and relative standards + Use behavior-based measures

1. Use behavior based measures From evidence it is clear that behavior based measures are better than that are build around traits. Examples: One example of trait is loyalty. What is loyalty? How you can measure loyalty? So traits suffered from weak agreement between raters. One example of behavior, frequently says Good morning to customers.

2. Combine absolute and relative standards Use together absolute and relative standard to measure performance of individuals instead of using a single standard. 3. Provide ongoing feedback Proved feedback to employees continuously instead of once at the end of year, its better to conduct monthly, quartly and semiannual appraisal. 4. Use multiple rater. There should be more than one person who are rating an employees performance. Peer evaluation, upward evaluation and 360-degree appraisals can be used for this purpose. 5. Rate selectively Appraisers should rate only in those areas in which they have significant fob knowledge and not in areas where they are weak. 6. Train appraisers Use train and qualified appraisers for performance appraisal, otherwise it will be messed up.


Reward and Compensation

Compensation and rewards is what employee receives in exchange for their contribution to the organization. The most obvious rewards/compensation employee receive from work is pay. However compensation also include promotions, desirable work assignments and or host of other less obvious pay offs- a smile, peer acceptance, work freedom, or a kind word of recognition.


Job evaluation and pay structure Job evaluation Job evaluation is the process whereby an organization systematically establishes its compensation program, in this p process, jobs are compared in order to determine each hobs appropriate worth within the organization. Job evaluation methods Three basic methods of job evaluation are; 1. Ordering method The ordering method requires a committee composed of both management and employee to arrange jobs in a simple rank order, from highest to lowest. No attempt is made to break down the jobs by specific weighted criteria. The committee members merely compare two jobs and judge which one is more important or more difficult to perform. Then they compare another job with the first two and so on until all the jobs have be evaluated and ranked. 2. Classification method evaluating jobs based on predetermined grades Job grades are classification of jobs like shop jobs, clerical jobs, and sales jobs etc. once classification are established, they are ranked in an overall order of importance according to the criteria chosen, and each job is placed in its appropriate classification. 3. Point method The last method we will present brakes down jobs based on various identifiable criteria (such as skill, efforts, and responsibility) and allocates points to each of these criteria. Example;


Job class: clerk Factor Skill 1. education 2. problem solving Responsibility 1. safety of others 2. word of others Pay structure Once the job evaluation is complete the data generated becomes the nucleus of the organization pay structure. This means establishing pay rates or ranges compatible with the ranks, classifications, or points arrived at through job evolution. Any of three job evolution methods discussed earlier provide the necessary input for developing the organizations overall pay structure. Three important concepts related to par are; 1. Compensation surveys Used to gather factual data on pay practices among firms and companies within specific communities. 5 7 10 14 15 21 22 14 44 28 66 72 1st degree 2nd degree 3rd degree


2. Wage curve After the compensation committee arrives at points totals from job evaluation and obtains survey data on what comparable organizations are paying for similar jobs, a wage curve can be fitted to the data

80000 70000
(Obtain from survey) Monthly salary in Rs.

60000 50000 40000 30000 20000 10000 Wage Curve

100 200 300 400 500 (Points obtain from job evaluation)


The wage structure It is only short step from plotting a wage curve to developing the organizations wage structure job similar in terms of classes, grades or pints are grouped together. For example in above wage curve, pay grade may cover the range from 0 to 100 points, wage grade 2 from 100 to 200. This is shown below.

80000 70000
Monthly salary in Rs.

60000 50000 40000 Grade 1 30000 20000 10000 Grade 2 Grade 3

Grade 4



300 (Points)




Compensation administration Lets see compensation administration phase;

Job Analysis Phase I Identity & study jobs Position descriptions Job descriptions Job standards

Job evaluation Phase II Internal equity Job ranking Job grading Factor pricing Point system

Wage & salary surveys Phase III Employers External equity association Professional association Self conducted surveys State unemployment office

Phase IV Matching internal and Job evaluation external worth worth

Pricing jobs match Labor marked rate

Rate of each job

Lets explain above diagram. Job analysis The process of describing job, duties, authority relationships, skills required, conditions of work, and additional relevant information. Job evaluation [Described earlier in detail]

Wage and salary surveys [Discussed earlier as compensation survey] Pricing jobs It means determining the rate of each hob, considering job evaluation and salary surveys. Executive compensation programs Executive pay is a special topic of Compensation, but it does require much attention because it does have several twists. Lets see them one by one. First The basic salaries of executives are almost 300 times higher than those of low-level managers. Second Executive bonus and stock option plan can dramatically increase total compensation. Finally Executives receive perquisites (called perks) or special benefits that other dont. It is well known that executives in the private sector receive considerably higher compensation than do their counter parts in the public sector. In short executives Looting companies Employee benefits Definition Membership-based, non financial rewards offered to attract and keep employees. Types of benefits


1. Legally required benefits Most employers are required by law to offer these benefits. Example; Social security Workers compensation Family and medical leave Unemployment compensation 2. Voluntary benefits These benefits are up to organization, whether it pays or not. For example; Health insurance and its different types 3. Retirement benefits What an employee will get at the time of retirement. For example; Commute Monthly pension 4. Paid time-off It means you are being paid, even though you are on leave. For example; Vacation and holiday leave Disability insurance 5. Survivor benefits Example; Group term life insurance Travel insurance


Part 05 Labor management relations and collective bargaining Union Q5.1 unionization Union Collective bargaining o Objectives and scope o Players o Legal framework o Power bases Impasses and resolution Strikes and lockouts Q5.2 Q5.3 Discipline and grievance handling Discipline Meaning Causes of disciplinary action Disciplinary guidelines Disciplinary process Grievance Meaning procedure


5.1 Labor management relations and collective bargaining Union Introduction Organization of workers, acting collectively, seeking to protect and promote their mutual interests through collective bargaining. Why employees join unions? The employees join unions because of following reasons Higher wages and benefits Greater job security Influence over worker rules Compulsory membership Upsets with management Unionizing employees


Authorization card: A card signed by prospective union members indicating in having a union election held at their work site. Petition to authority for election

Vote taken: Did union receive a majority vote?

Certification bargaining unit


Collective bargaining Definition The negotiation, administration, and interpretation of written agreement between two parties, at least of which represents a group that is acting collectively, that covers a specific period of time. Objective The objective of collective bargaining is to agree on a contract acceptable to management, union representatives, and the union membership. Scope of collective bargaining Collective bargaining generally negotiates on; Wages Work hours Terms and conditions of employment Special issues Legal framework and process

Legal framework and process

Preparation for negotiations
Prepare for next negotiation

Contract negotiations


Union ratification

Contract administration


Q5.2 Discipline Meaning

Discipline & Governance handling

Discipline is management action that encourages compliance with organizational standards. Types of Discipline There are two types of discipline 1. Preventive 2. Corrective 1. Preventive Discipline Preventive discipline is action taken to encourage employees fo follow standards and rules so that violations are prevented. 2. Corrective Discipline Corrective discipline is an action that follows a rule infraction it seeks to discourage further infractions and ensure future compliance with standards. Causes of Disciplinary Action Disciplinary Action Disciplinary action is a penalty, such as warning or suspension without pay. These actions are initiated by an employees immediate supervisor but may require approval by a higher-level manager r HR department, especially when the worker is union member Causes of Disciplinary action 1. Violation of rules and regulations

2. Non compliance of laid down procedures and policies 3. Not following of HR standards or guidelines Disciplinary Process

Verbal reprimand by supervision

Written reprimand, with a record I personnel file

One-to three-day suspension from work

Suspension for one week or longer

Discharge for cause

1. Use behavior based measures From evidence it is clear that behavior based measures are better than that are build around traits. Examples: One example of trait is loyalty. What is loyalty? How you can measure loyalty? So traits suffered from weak agreement between raters. One example of behavior, frequently says Good morning to customers. 2. Combine absolute and relative standards Use together absolute and relative standard to measure performance of individuals instead of using a single standard.

3. Provide ongoing feedback Proved feedback to employees continuously instead of once at the end of year, its better to conduct monthly, quietly and semiannual appraisal. 4. Use multiple rater. There should be more than one person who are rating an employees performance. Peer evaluation, upward evaluation and 360-degree appraisals can be used for this purpose. 5. Rate selectively Appraisers should rate only in those areas in which they have significant fob knowledge and not in areas where they are weak. 6. Train appraisers Use train and qualified appraisers for performance appraisal, otherwise it will be messed up.