HRM Full

Nature & Scope of HRM
People with required skills to make an organization are referred as human resources. The management of human resources mainly consists of: 1. Getting the people who can make an organization 2. Enabling those people to acquire required capabilities to make a successful organization 3. Motivating them to contribute their resources continuously for running the organization successfully.

Human resources can be defined as the total knowledge, skills, creative abilities, talents & aptitudes of an organizations workforce, as well as the values, attitudes & beliefs of the individuals involved. HRM can be defined as planning, organizing, directing & controlling the functions of employing, developing & compensating human resources resulting in the creation & development of human relations with a view to contribute proportionately to the organizational, individual & social goals.

The scope of HRM earlier was limited to employment & maintenance & payment of wage & salary. The scope is now enlarged to include: Welfare facilities Performance appraisal Motivation of employees Maintenance of human relations Training & development Career planning & development Industrial relations
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Features of HRM
1. Concerned with employees both as individuals & as groups. Concerned with their behavioral, emotional & social aspects. 2. Concerned with the development of knowledge, capability, skills & potentialities of the individuals. 3. HRM covers all levels & categories in the organization. 4. HRM is a continuous & never ending process. 5. HRM aims at attaining the goals of organization, individuals & society in an integrated fashion.
Features of HRM
6. The organization goals addressed by HRM include survival & growth of the organization, customer satisfaction, profitability, productivity, quality etc. 7. The individual goals addressed by HRM include job satisfaction, job security, status, recognition, attractive salary & benefits etc. 8. The society goals addressed by HRM include EEO, protecting the disadvantaged & physically handicapped persons, CSR etc.
Features of HRM
9. HRM is the responsibility of all line managers & a function of staff managers in an organization. 10. HRM is the central sub-system of an organization & it permeates all types of functional management i.e. production management, marketing management & financial management.
HRM & HRD

Some organizations use HRM & HRD interchangeably. HRD is the developmental aspect of HRM. Hence HRD is a part of HRM. HRD deals with the training, management development, career planning & development and organization development.
Differences Between Personnel Management & HRM

Dimension Contract Rules Behavior norms Managerial task with respect to labor Key relations PM Written contracts Importance of devising Customs & practices Monitoring HRM Beyond contracts Impatience with rule Values / mission Nurturing
Labor management
Customer relations
Differences Between Personnel Management & HRM

Dimension Speed of decision Management role Job design Training & development Conflict handling Management action PM Slow Transactional Division of labor Controlled access Temporary solutions Clear rules HRM Fast Transformational Teamwork Learning organizations Manage climate & culture Need based
Functions of HRM
Managerial functions 1. Planning formulating strategies, forecasting of personnel requirement, planning of human resources, recruitment and selection, planning training programmes. 2. Organizing organization design, organization structure, reporting relationships, roles & responsibilities.
Functions of HRM
Managerial functions 3. Directing leading, motivating, commanding, activating the people. 4. Controlling checking, verifying & comparing of the actuals with the plans, identification of deviations and corrective actions. Auditing training programmes, directing employee morale and satisfaction surveys.
Functions of HRM
Operative functions 1. Employment securing & employing people with required kind & level of human resources to achieve organizational objectives. Covers HRP, job analysis, recruitment, selection, placement, induction & internal mobility.
Functions of HRM
Operative functions 2. Human resources development performance appraisal, training, management development, career planning, transfers, promotions, demotions, organization development. 3. Compensation job evaluation, wage & salary administration, incentives, bonus, benefits, social security measures.
Functions of HRM
Operative functions 4. Human relations motivating the employees, developing communication & leadership skills, boosting employee morale, handling disciplinary cases, quality of work life improvement, providing comfortable work environment, redressing employee grievances, employees counselling.
Functions of HRM
Operative functions 5. Industrial relations trade unions, collective bargaining, participative management, quality circles. 6. Latest trends in HRM total quality people, HR accounting, audit & research, strategic HRM, quality of worklife.
Objectives of HRM
Create & utilize an able and motivated workforce. Establish and maintain sound organizational structure & harmonious working relationships. Integration of individual and group goals to organizational goals. Create opportunities for individual & group development. Effective utilization of human resources. Providing adequate & equitable wages, incentives, benefits & social security. Providing challenging work environment. Devising measures for employee recognitions, security, status.
HRM Policy
HRM policy is a set of proposals & actions that act as reference for managers in all departments in their dealings with the employees. HRM policies furnish general standards which acts as the base for decision making. HRM policy also includes the organizations values, philosophy, concepts and principles. For example, HRM policy of Indian railways is to fill 15% & 7.5% vacancies from candidates belonging to scheduled castes & schedule tribes respectively.
HRM Procedure
Policies are general instructions where as procedures are specific applications. Procedures are derived from policies & are called action guidelines. HRM procedures prescribe the specific manner in which work is to be done. HRM procedures show the sequence of actions step by step and in chronological order.
HRM Programmes
HRM Programmes are complex set of goals, policies, procedures, rules, steps to be taken, resources to be employed & other elements necessary to carry out a given course of actions.
Organization Structure & HRM

Line & staff relationships the relationship with which the managers in an organization deal with one another are broadly classified into two categories, viz Line & staff. Line relationship the relationship between two managers due to delegation of authority & responsibility and giving or receiving instructions or orders is called line relationship. Line relationship refers to those positions which are accountable for accomplishment of primary objectives. Line managers are not subject to command by staff managers.

Staff relationship the relationship between two managers is set to be staff relationship, when it is created due to giving & taking advise, guidance, information, help, counselling etc in the process of attaining organizational goals. Staff control is monitoring & reporting to help the line managers make quick & accurate decisions.
HRM is a line responsibility HRM is a line managers responsibility but a staff function. The line manager is responsible to attain their department & organization goals by proper management of men , machines, materials & money. Hence the management of human resources is the responsibility of line managers. Line managers need help since the line managers after concentrate on discharging their operational responsibilities, they may not find time to perform some of the functions of personnel management relating to the employees in their departments.

HRM is a staff function HRM managers/ personnel managers provide specialized assistance, advise, information etc to line managers. Personnel managers perform the various functions viz employment, training, development, wage & salary administration, motivation, grievance redressal etc.
Role of HR Manager
The conscience role reminding the managements of its moral obligations to its employees. The counselor role counselling the employees and offering suggestions to solve the problems of the employees like marital, health, children education etc to enable the employees concentrate on their work. The mediator role settling the disputes between employees and the management by acting as a communication link between them.
Role of HR Manager
The spokesperson role representing the company to the outside agencies. The problem solver role solving the issues that arise from time to time. The change agent role introducing changes in the existing programmes.
Qualities of HR Manager
Initiative & resourcefulness Analytical ability Depth of perception Knowledge of labor laws Understanding of human behavior Communication skills Discriminating skills Professional attitude
HR Planning
Strategic planning is the basis for human resources planning. The HR manager has to understand the companys strategies and their demand for human resources before carrying out HR planning. For Expansion Strategy, the HR planning needs to concentrate on additional human resources of existing categories.
HR Planning
For Diversification Strategy, the HR planning needs to concentrate on additional human resources of different categories. In case of Acquisitions & Mergers, the HR planning has to work on reduction of human resources of managerial positions. If there is reduction in the size of the companys operations, the HR planning has to work on VRS and other means for retrenchment.
HR Planning Definition
Human resources planning may be viewed as foreseeing the human resources of an organization and the future supply of human resources and takes care of: Making necessary adjustments between the forecast & supply and the organizational plans. Foreseeing the possibility of developing the supply of human resources in order to match it with requirements by introducing necessary changes in the functions of HRM. HRP takes care of the skills, knowledge, values, ability, commitment, motivation etc in addition to the number of employees.
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HRP includes the estimation of how many qualified people are necessary to carry out the assigned activities, how many people will be available, and what, if anything, must be done to ensure that the supply of manpower equals the demand at appropriate points in the future. HRP is the process by which an organization ensures that it has the right number and kind of people, at the right place, at the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives.
HRP is the process of forecasting an organizations future demand for, and supply of, the right type of people in the right number. HRP is a sub-system in the total organizational planning and it precedes of the HRM processes like recruitment and selection. HRP translates the organizations objectives and plans into the number of workers needed to meet those objectives.
HR Planning Objectives
1. To recruit and retain the human resources of required quantity and quality. 2. To foresee the employee turnover and make arrangements for minimizing the turnover and filling up of vacancies. 3. To meet the needs of expansion and diversification programmes. 4. To foresee the impact of technology on work, existing employees and future human resource requirements. 5. To improve the standards, skill, knowledge & abilities of the employees.
HR Planning Objectives
6. To assess the surplus or shortage of human resources and take necessary measures. 7. To maintain congenial industrial relations by ensuring optimum level and structure of human resources. 8. To minimize imbalances caused due to non availability of human resources of the right kind, right number in right time and right place. 9. To make optimum use of human resources. 10. To estimate the cost of human resources.
HR Planning Benefits
1. It offsets uncertainty and change. 2. It provides scope for advancement and development of employees through T&D. 3. It facilitates the formulation of budgets in an organization. 4. It helps to plan for the physical facilities & working conditions. 5. It helps to plan for the welfare facilities like canteen, schools, hospitals, transport, child care centres, staff quarters, company stores etc.
HR Planning Benefits
6. It helps to take steps to improve the employee contributions in the form of increased productivity, sales turnover etc. 7. It helps the top management to get a better view of the HR dimensions of business decisions. 8. It helps to provide sufficient time for locating talents. 9. The personnel costs can be minimized since the management can anticipate imbalances before they become unmanageable and expensive. 10. It serves as the foundation for other personnel functions such as recruitment, selection, transfers, promotions, training and development.
Factors Affecting HRP

External factors 1. Government policies labor policy, industrial relations policy, reservations. 2. Level of economic development supply of human resources in the future will depend on the level of development. 3. Business environment it influences the volume and mix of production and hence the demand of human resources.

External factors 4. Information technology brought shifts in the way the businesses operate. Some of these are BPR, ERP, SCM etc. 5. Level of technology determines the kind of human resources required. 6. International factors demand for and supply of human resources in various countries.

1. 2. 3. 4. Internal factors Company strategies relating to expansion , diversification, alliances etc. HR policies regarding quality of human resources, compensation level etc. Job analysis HRP is based on job analysis , job description and job specification. Time horizons companies with stable competitive environment can plan for long run whereas those with unstable environment can plan only for short term. Production / operations policy - how much to produce in-house and how much to buy from outside. Trade unions number of working hours per week.
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1. Analyzing the corporate and unit level strategies these strategies include expansion, diversification, mergers, acquisitions, reduction in operation, low cost and differentiation etc. 2. Demand forecasting of the overall human resource requirement forecasting the quantity of human resources as well as the quality in terms of skills, knowledge, values, capabilities etc. The forecasting methods generally employed are Managerial Judgement, Statistical Techniques and Work Study Techniques.
HRP Process
HRP Process
3. Supply forecasting the data relating to the existing human resources inventory in terms of number & designation departmentwise, also in terms of sex, skills & salary range, job family inventory, agewise number and category of employees. 4. Estimating the net human resources requirements the difference between overall human requirements and future supply of human resources.
HRP Process
5. Action plan for redeployment, retrenchment-if future surplus is estimated, the organization has to plan for redeployment, retrenchment etc. If surplus is estimated in some departments, the employees can be transferred to other departments where deficit is estimated. The organization has also to plan for training or reorientation before redeployment. If no deficit estimated in any department and surplus estimated for the entire organization, they have to plan for retrenchment in consultation with the trade unions.
HRP Process
The redeployment programmes include Outplacement i.e. providing carrier guidance to displaced employees, Employment in Sister Organization & Employment in other companies. The retrenchment programmes include Reduced Work Hours, Work Sharing, Layoffs, Leave of Absence Without Pay, VRS, CRS, Attrition, Creation of Adhoc Projects etc.
HRP Process
6. Action plan for Outsourcing, Recruitment etc - if deficit is estimated in future, the management has to forecast the future supply of human resources from various sources like internal sources, comparable organizations, educational and training institution, employment exchanges, labor market etc.
HRP Process
Outsourcing has the following advantages: 1. The companies need not plan for human resources 2. The companies can get human resources immediately 3. The companies need not manage these resources as such they are free from industrial relations problems. 4. The companies can dispense with this category of employees immediately after the work is over.
HRP Process
7. Plan for recruitment, development, internal mobility if the future supply is more than or equal to net human resource requirements, the planning for recruitment and selection is to be done. Recruitment and selection plan covers the number and type of employees required, when they are required, time necessary for recruitment and selection process, sources of recruitment, techniques for recruitment and selection, the selection procedure etc.
HRP Process
8. Modify the organizational plan strategy if future supply of human resources from all the external sources is estimated to be inadequate or less than the requirements, the manpower planer may have to suggest to the management to alter or modify the organizational plan.
Problems in HRP
1. Resistance by employers and employees employers resist HRP thinking that it increases the cost of manpower as trade unions demand for employees based on the plan and also more facilities and benefits. Some employers also feel that HRP is not necessary as candidate will be available as and when required. Employees resist HRP as they view that it increases the work load of employees and prepares programmes for securing human resources mostly from outside. The other reason is that HRP aims at controlling the employees through productivity maximization.
Problems in HRP
2. Uncertainties uncertainties in HR practices are due to absenteeism, seasonal employment, labor turnover etc. The other uncertainties in the industrial scene are technological changes, market conditions etc. The uncertainties make HRP less reliable. 3. Inadequacies of information system HRIS not fully developed due to lesser importance given to HR. Also, reliable data about economy, industries, labor market, and trends in HR are not readily available.
Requisites for Successful HRP

1. HRP must be recognized as an integral part of corporate planning. 2. Top management backing for HRP is absolutely essential. 3. HRP responsibilities should be centralized. 4. Personnel records must be complete, upto-date and readily available.
Requisites for Successful HRP

5. The time horizon of the plan must be long enough to permit any remedial action. 6. The techniques of planning should be those best suited to the data available and the degree of accuracy required. 7. Plans should be prepared by skill levels rather than by aggregates. 8. Data collection, analysis, planning techniques and the plans need to be constantly revised and improved based on experience and emerging situations.
Barriers to HRP
1. Wrong perceptions by the top management as well as others in the organization that people are available when needed and hence HRP is not required. 2. HR information incompatible with the information used in strategy formulation. 3. Conflicts between short term and long term HR needs. 4. Conflict between quantitative and qualitative approaches to HRP. 5. Non involvement of operating managers renders HRP ineffective.
Recent Trends in HRP

1. Outsourcing to reduce the costs and avoid the difficulties in human resources management, many organizations outsource the canteen, housekeeping, employee welfare etc. 2. Contingency clause many companies plan for contingency human resources in order to ensure that no project is delayed due to human factor. This is observed in software organizations.
Job Design
Job design is defined as the process of deciding on the content of a job in terms of duties and responsibilities of the job holders, on the methods to be used in carrying out the job, in terms of techniques, systems and procedures and on the relationships that should exists between the job holder and his superiors, subordinates and colleagues. Factors affecting job design are organizational factors, environmental factors and behavioral factors.
Job Design Objectives

1. To meet the organizational requirements such as higher productivity, operational efficiency, quality of product / service. 2. To satisfy the needs of the individual employees like interests, challenges, achievement etc. 3. To integrate the needs of the individuals with the organizational requirements.
Job Analysis
A job is a collection of tasks that can be performed by a single employee to contribute to the production of some product or service provided by the organization. Each job has certain ability requirements associated with it. Job analysis is the process used to identify these requirements. Job analysis is a systematic exploration of the activities within a job. It is a basic technical procedure, one that is used to define the duties, responsibilities and accountabilities of a job.
Process of Job Analysis
Job Analysis Information & Facts
Sources of Job Analysis Information

Information about job analysis may be obtain from three important sources; 1. From the employees who actually perform a job. 2. From other employees such as supervisors who watch the workers while doing a job. 3. From outside observers specially appointed to watch employees performing a job.
Job Analysis
Job analysis is the process of determining, by observation and study and reporting pertinent information relating to the nature of a specific job. It is the determination of the tasks which comprise the job and of the skills, knowledge, abilities and responsibilities required of the worker of a successful performance and which differentiate one job from the other. Job analysis includes Job Description and Job Specification.
Job Description
Job description is descriptive in nature and contains a statement of job analysis. It serves to identify a job for consideration by other job analysts. It tells us what should be done, why it should be done and where it should be performed. Job description implies objective listing of the job title, tasks, duties and responsibilities involved in a job.
Characteristics of Good Job Description

1. 2. 3. The job description should indicate the scope and nature of the work including all important relationships. The job description should be clear regarding the work of the position, duties etc. Specific words should be selected to indicate (a) the kind of work (b) the degree of complexity (c.) the degree of skill (d) the extent to which the problems are standardized (e) the degree and type of accountability. Utility of the description in meeting the basic requirements should be checked from the extent of the understanding the job by a new employee after reading the job description.
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Contents of Job Description

Job title Location Supervision given and received Materials, tools, machines worked with Designation of immediate superiors and subordinates Salary, allowances, incentives, bonus details Hours of work, shifts, breaks List of duties separated according to daily, weekly, monthly etc Conditions of work, health, hazards, accident hazards Chances and avenues of promotion
Job Specification
Job specification is a written statement of qualifications, traits, physical and mental characteristics that an individual must possess to perform the job duties and discharge responsibilities effectively. Physical specifications include features like height, weight, chest, vision, hearing, ability to lift weight, ability to carry weight, health condition, age etc.
Job Specification
Mental specifications include ability to perform arithmetical calculations, ability to interpret data, ability to plan, reading abilities, memory, judgment, ability to concentrate, scientific abilities etc. Emotional & social specification include emotional stability, flexibility, social adaptability in human relationships, personal appearance etc. Behavioral specifications include creativity, teaching ability, maturity, self reliance etc.
Benefits of Job Analysis

1. Employment manpower planning, recruitment, selection, induction etc. 2. Organization audit information obtain by audit reveals instances of poor organization in terms of the factors affecting job design. 3. Training & development needs are identified with the help of job description. 4. Performance appraisal job description is useful defining the areas in which the job goals should be established and the same can be appraised.
Benefits of Job Analysis

5. Promotion and transfer 6. Preventing dissatisfaction and settling complaints 7. Enforcing discipline 8. Wage & salary administration 9. Health & safety 10. Industrial relations
Job Analysis
Job Evaluation
Job evaluation determines the relative worth or money value of jobs. ILO defines job evaluation as an attempt to determine and compare demands which the normal performance of a particular job makes on normal workers without taking into account the individual abilities or performance of the workers concerned.
Job Evaluation
Wendell French defined job evaluation as a process of determining the relative worth of the various jobs within the organization, so that differential wages may be paid to jobs of different worth. Job evaluation is defined as the overall activity of involving an orderly, systematic method and procedure of ranking, grading and weighing of jobs to determine the value of a specific job in relation to other jobs.
Job Evaluation Objectives

1. To gather data and information relating to job description, job specification and employee specifications of various jobs in an organization. 2. To compare the duties, responsibilities and demands of a job with that of other jobs. 3. To determine the hierarchy and place of various jobs in an organization.
Job Evaluation Objectives

4. To determine the ranks or grades of various jobs. 5. To ensure fair and equitable wages on the basis of relative worth or value of jobs. In other words, equal wages or fixed to the jobs of equal worth or value. 6. To minimize wage discrimination based on sex, age, caste, region, religion etc.
Job Evaluation Principles

1. Rate the job and not the employee 2. The elements selected for rating should be easily understood 3. The concerned employees and the supervisors should be educated and convinced about the programme 4. Supervisors should be encouraged to participate in rating the jobs
Job Evaluation Procedure

1. Analyse and prepare job description job evaluation is the outcome of job analysis. Job description provides information relating to duties and responsibilities and job specification provides information relating to employees qualities. 2. Select and prepare a job evaluation plan jobs should be divided into detailed tasks. It also includes selection of factors needed for the performance of the jobs, determining the money value of each factor and element and writing the instruction for evaluation.
Job Evaluation Procedure

3. Classify jobs the jobs are classified in a sequential order based on their significance and contribution to the organization. This includes assigning money values to each class. 4. Install the programme educating the employees, winning their confidence and putting the programme into operation. 5. Maintain the programme this step involves updating the job evaluation and bringing modifications based on the changes in the condition and situations.
Recruitment
Recruitment is defined as a process to discover the sources of manpower to meet the requirements of the staffing schedule and to employee effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient workforce. Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization.
Recruitment
Difference between recruitment & selection. Recruitment precedes selection and it is only finding and developing the sources of prospective employees and attracting them to apply for jobs in an organization. Selection is the process of finding out the most suitable candidate to the job out of the candidates attracted i.e. recruited. Determining the number and kind of human resources required is the first step in employment process and is known as HRP. The second step is recruitment and the third step is selection.
Recruitment Objectives
1. To attract people with multi-dimensional skills and experiences that suit the present and future organizational strategies. 2. To induct outsiders with a new perspective to lead the company. 3. To infuse fresh blood at all levels. 4. To develop an organizational culture that attracts competent people. 5. To search / head hunt / poach people whose skills fit the companys values and requirements.
Recruitment Objectives
6. To device methodologies for assessing psychological traits. 7. To search for talent globally. 8. To design entry pay that competes on quality and not on quantity. 9. To anticipate and find people for positions that did not exists as of now.
Factors Affecting Recruitment Policy

1. 2. 3. 4. 5. 6. 7. Government policies Personnel policies of competitors Organizations personnel policies Recruitment sources Recruitment needs Recruitment cost Selection criteria and preference
Recruitment Policy
Recruitment policy of any organization is derived from the personnel policy. Recruitment policy should take into consideration the governments reservation policy, policy regarding sons of soil etc, personnel policies of other organizations regarding merit, internal sources, social responsibility in absorbing the minority sections, women etc.
Recruitment policy
Recruitment policy should commit itself to the organizations personnel policy like enriching the organizations human resources or serving the community by absorbing the weaker sections and disadvantaged people of the society, motivating the employees through internal promotions, improving the employees loyalty to the organization by absorbing retrenched or laid-off employees or casual / temporary employees or dependents of present / former employees etc.
Centralized & Decentralized Recruitment

Personnel department at the central office performs all the functions of recruitment in case of centralized recruitment and personnel department at unit level perform all the functions of recruitment concerning to the respective unit in case of decentralized recruitment
Merits of Centralized Recruitment

1. Average cost of recruitment per candidate relatively less. 2. Availability of more expertise. 3. Possible to ensure uniformity among human resources of various units with respect to their education, skills, knowledge, talent etc. 4. Interchangeability of staff among various units possible.
Merits of Centralized Recruitment

5. Enables line managers of various units to concentrate on their operational activities by reliving them from the recruitment functions. 6. Enables the organization to have centralized selection procedure, promotion and transfer procedure. 7. Enables organization to conduct centralized training programmes which brings uniformity and minimizes the average cost of training the staff.
Merits of Decentralized Recruitment

1. 2. The concerned unit concentrate only on those sources where they normally get suitable candidates. There is possibility of getting the most suitable candidates due to the clear awareness of the requirements of the job regarding cultural, family background factors, social factors etc. The units can recruit as per their requirement and without any delay. The units will enjoy freedom in employing the techniques to stimulate the candidate. The units will enjoy advantage about information availability, control and feedback.
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Sources of Recruitment
A. Internal sources 1. Present employees
2. Retrenched / retired employees

3. Dependents of deceased / retired / disabled employees
B. 1. 2. 3. 4. 5. 6. 7. 8. External sources Campus recruitment Private employment agencies / consultants Public employment exchanges Professional organization Data banks Casual applicants Similar organizations Trade unions
Why Prefer Internal Sources?

1. Can be used as a technique of motivation 2. Can improve the morale of the employees 3. Suitability of internal candidates can be judged easier and better. 4. Loyalty, commitment and the sense of belongingness of present employees can be enhanced. 5. Employees physiological needs can be met by providing opportunities for advancement.
Why Prefer Internal Sources?

6. Employees economies needs for promotion, higher income can be satisfied. 7. Cost of selection can be minimized. 8. Cost of training and orientation can be reduced. 9. The period of adaptability to the new job can be reduced. 10. The trade unions can be satisfied.
Modern Sources of Recruitment

1. 2. 3. 4. 5. 6. 7. 8. Employee referrals Walk-in Consult-in Head hunting Body shopping Mergers and acquisitions E-recruitment Outsourcing
Recruitment Techniques
Recruitment techniques are the means or media by which management contacts prospective employees or provides necessary information or exchanges ideas in order to stimulate them to apply for jobs. Management uses different types of techniques to stimulate internal & external candidates.
Recruitment Techniques
A. 1. 2. 3. B. 1. 2. 3. Traditional techniques Promotions Transfers Advertising Modern techniques Scouting Salary and perks ESOPs
Factors Affecting Recruitment
Recruitment Process
Recruitment process is the process of identifying and attracting job seekers so as to build a pool of qualified job applicants. An ideal recruitment programme is the one that attracts a large number of qualified applicants who will survive the screening process and accept positions when offered. The individuals responsible for the recruitment process must know how many and what type of employees are needed, where and how to look for individuals with the appropriate qualifications and interests, what inducements to use for various types of applicant groups.
Recruitment Process
Recruitment Process
Recruitment Process
1. 2. 3. 4. 5. The recruitment process comprises five interrelated stages: Planning Strategy development Searching Screening Evaluation and control
Recruitment Process
Recruitment Planning
The first stage in the recruitment process is planning which involves the translation of likely job vacancies and information about the nature of these jobs into a set of objectives or targets that specify the number and type of applicants to be contracted. Companies calculate yield ratios which expresses the relationship of applicant inputs to outputs at various decision points. The types of contacts refers to the type of people to be informed about job opening. The type of people depends on the tasks and responsibilities involved and the qualifications and experience expected. These details are available through job description and job specification.
Strategy Development
After determining the number and type of recruits require, the strategy needs to be developed in the following areas: 1. Make or Buy whether to hire less skilled employees and invest on training and education or hire skilled labor. 2. Technological sophistication this relates to the methods used in recruitment and selection. The advent of computers has made it possible to scan national and international applicants.
Strategy Development
3. Where to look in order to reduce costs, organizations look into labor markets most likely to offer the required job seekers. The market varies for the white collar employees and blue collar employees. Again it varies for managerial employees and technical employees. 4. Sources of recruitment whether internal, external etc.
Searching
After working out the recruiting plan and strategy, the search process begins and it involves two steps: 1. Source activation 2. Selling Source activation results in a flood of applications once the organization has planned well and did a good job of developing its sources. Selling is all about creating awareness about the organization by framing the proper message and selecting the media with lot of care.
Screening
Screening of applications is an integral part of the recruitment process, though it can also be viewed as the first step in the selection process. The purpose of screening is to remove from the recruitment process, at an early stage, those applicants who are visibly unqualified for the job.
Evaluation And Control

Evaluation and control is necessary as considerable costs are incurred in the recruitment process. The evaluation of the process includes return rate of applications sent out, number of suitable candidates, retention / performance of selected candidates, cost of recruitment process etc. The evaluation of recruitment methods include number of initial enquires received that resulted in completed application forms, number of candidates at various stages, number of candidates recruited and number of candidates retained in the organization after six months.
Selection
Meaning & Definitions Selection is the process by which an organization chooses from a list of applicants the person or persons who best meet the selection criteria for the position available, considering current environmental conditions. Identify applicants with highest chance of meeting/exceeding organizations standards of performance.
Selection
Meaning & Definitions Performance factors include Quantity, Quality, Absenteeism, No Unfair methods, Career development.
Optimal match between the job and the amount of characteristics that the applicant possesses. Goal of any selection system is to accurately determine which applicants possess the knowledge, skills, abilities and other characteristics (KSAO)
Selection
Internal Environment: Factors that influence amount & type of selection process. Size, Complexity, Technological Volatility Return on Investments.
External Environment: Laws & Regulations Federal, State Size, Composition & availability of local labor markets. Economic, Social & Political Pressures on a community.
Selection
Objective of selection decision Choose the individual who can most successfully perform the job from the pool of qualified candidates.
Effectiveness of selection procedure depends on: Job requirements have been clearly specified (Job Analysis) Employee specifications clear physical, mental, social, behavioral Candidates for screening attracted
Selection
In short, HR planning, Job analyses and Recruitment are prerequisites to the selection process. Essentials of selection procedure: Someone have authority to select Some standard of personnel with which you can compare the prospective employee. Comprehensive Job Description and Job specification should be available. Sufficient number of applicants to be available in advance.
Selection
Selection Ratio = No of applicants hired Total No of applicants
Close to 1:1 High Selection Ratio
Selection Criteria
Formal Education Not to set standards higher than actually required by the job. Experience & past performance Clarity about relevant experience Physical characteristics. - Very important to relate to effectiveness at work. - Practices should not discriminate against ethnic groups, women etc.
Selection Criteria
Personal characteristics Marital status, Age, Sex ADEA Age Discrimination in Employment act Personality types Emotional stability, Extroversion, Openness to Experience, Agreeableness, Conscientiousness.
Significance of Selection Process

Crucial, complex & continuing function Right personnel for the right job ensures
Employee contribution & commitment at optimum level. Congenial Employer Employee relations
Right selection- Employee valuable asset Wrong selection- Employee liability to organization.
Organizational Relationship
Right selection Better productivity Better organizational efficiency Right selection Better quality Better organizational efficiency Right selection Better service to customers. Happy employees produce Happy customers. Right selection Customization possible which is the requirement in todays era of globalization & international competitiveness In IT software organizations, Human Resource is considered the Knowledge, Machine, Technology, Marketing, Finance etc.
Selection Process
Development Bases for Selection Before starting selection process Finalize job analysis, job description, job specification and employee specification. HR Plan Required number & kind of employees Recruitment Process of searching for prospective employees and stimulating them to apply.
Selection Process
Selection Process
Application Blank For securing information from prospective candidates Device used for preliminary screening Information generally required.
Personal background information Educational attainments Work experience Salary Personal details References
Selection Process
Application Blank Personal background information Name, address, sex, date of birth, marital status, parents details Gives an idea about the socio-economic background, family background and the impact of these on employee behaviour.
Selection Process
Application Blank Educational attainments Names of institutions, period of study, course, percentage, class/ranks, extra curricular activities. Work experience Name of the organization, period of employment, nature of work, reason for leaving, last salary drawn. Enables the organization to know the stability of the employee, the aptitude for the nature of work etc.
Selection Process
Application Blank Salary Salary & benefits drawn and expected Personal details Likes & dislikes, Hobbies, Association memberships References Names & addresses of persons who can be contacted
Selection Process
Written examination After screening of application blanks
For measuring candidate's ability in English, G.K, Knowledge in relevant disciplines, numerical ability etc.
Selection Process
Preliminary Interview Basic assessment of applicants suitability to the job Usually conducted by an assistant in HR department Useful for elimination of undesirable/unsuitable candidates Also useful to provide basic information about the company Usually informal and unstructured
Selection Process
Business Games Mostly for selecting management trainees Evaluation in the areas of decision making, problem solving, situation handling, human relations etc Group discussions: Topic is given. Candidates analyze, discuss & conclude. Selection panel observes on initiative taken, explanation of the issues, observing & listening skills, influencing others, body language etc.
Selection Process
Business Games
Case study analysis: Candidates in group analyze, discuss, find alternative solutions and select the best solution. Selection panel observes on Analytical, Judgmental & Decision making skills. Role play : Situation given, Roles defined and candidates asked to enact the roles to analyze and find solutions to a problem or an opportunity. Selection panel observes on Leadership and Human Relation skills.
Selection Process
Business Games
In-basket method Candidate supplied with actual letters, telephone, telephone messages, reports, requirements by various officers in the organization, information about the job and the organization. The candidate asked to take decisions on various items. Selection panel can judge on situational judgement, decision making and problem solving skills.
Selection Process
Business Games Simulation Real life situations enacted in suitable environment. Skills to encounter problems can be judged.
Selection Process
Psychological Tests An objective and standardized measure of sample of behavior from which one can draw inferences about future behavior. Objectivity refers to the reliability and validity of the instruments used for measuring the ability of the individuals. Standardization refers to uniformity of procedure for conducting the test.
Selection Process
Types of tests Aptitude Tests Achievement Tests Situational Tests Interest Tests Personality Tests Multi dimensional Tests
Selection Process
Aptitude Tests Measures whether the candidate has the capacity or the latent ability to learn a given job if given adequate training. IQ Tests Capacity for comprehension, reasoning, numbers, memory etc. IQ = Mental Age X 100 Actual Age
Selection Process
IQ Tests Candidates with high level of IQ can learn the complicated issues easily and fast. Easy to train such candidates for new jobs, new assignments, new technology etc. EQ Tests Emotional involvement and commitment of the employees determine their contribution to the company. EQ = Emotional Age X 100 Actual Age
Selection Process
Skill Tests Useful to select candidates to perform design jobs etc. Mechanical Aptitude Test Capacities of spatial visualization, perceptional speed and knowledge of mechanical matter. For Apprentices,Technicians etc
Selection Process
Psychomotor Tests Measure abilities like manual dexterity, motor ability and eye hand coordination. Useful for selecting workers for repetitive operations like packing, assembly etc. Clerical aptitude tests Measure ability to do office work. Includes spelling, computation, copying etc.
Selection Process
Achievement Tests For experienced candidates For measuring specific achievements/accomplishments of candidates Job knowledge test Testing in the knowledge of the particular job. E.g. A lecturer applied for Accounts asked questions on Balance sheet, Books of accounts etc. Work sample test Portion of the actual work given to the candidate as a test. Above example, the lecturer asked to deliver a lecture on principles of accountancy.
Selection Process
Situational tests Evaluating the candidate in a similar real life situation. Asked either to cope with the situation or solve critical situations of the job. Group discussion In basket Simulation
Selection Process
Interest tests Assumption is that there is a high correlation between the interest of a candidate in a job and the success achieved in the job. These tests are inventories of the likes and dislikes of candidates in relation to work, job, hobbies etc. Can find out the area of occupation the candidate is interested.
Selection Process
Personality tests To discover clues to an individuals value system, emotional reaction, maturity etc. Expressed in traits like Self Confidence, Emotional control, Decisiveness, Initiative, Impulsiveness etc. Objective tests- Most personality tests are objective and can be scored objectively.
Selection Process
Personality tests Projective tests Candidates asked to project their interpretation of certain standard stimulus situations based on ambiguous pictures, figures etc. Disadvantages of personality tests Can be faked by sophisticated candidates. To some extent, can be countered by repeating the same question in different parts to measure consistency.
Selection Process
Multi dimensional tests Whether the candidate possesses a variety of skills Ability of the candidate to integrate the multi-skills and apply them on situational requirement Almost all employees should be able to work in marketing / purchase / finance etc
Selection Process
Final Interview Most essential step in the selection process. Interviewer matches the information obtained about the candidate in the earlier steps to the job requirements through observations during the interview.
Selection Process
Types of interviews Preliminary interview
Informal interview Unstructured interview
Core interview
Background information interview Group discussion interview Stress interview Formal and structured interview Job and probing interview Panel interview Depth interview Online interviews
Decision making interview
Selection Process
Core interview Interaction between the candidates and the line executive/functional experts on areas of job knowledge, skill, talent. Background information To collect the information not available in the application blank and also to check the information provided in the application blank. Job and probing Testing the candidates job knowledge about duties, methods of doing the job, methods of handling critical areas.
Selection Process
Stress interview Testing the candidates job behavior and ability to withstand stress and strain. Candidate put under stress and strain by interrupting the applicant from answering, criticizing the candidates opinions, asking questions pertaining to unrelated areas, keeping silence for long periods etc.
Selection Process
Group discussion interview All candidates brought into one room and interviewed one by one under group interview. Another method is to give topic for discussion. Can appraise interpersonal skills, dynamism, leadership skills, presentation skills etc
Selection Process
Formal and structured interview Interview preplanned and structured in advance depending on job requirements. Questions for discussions are structured and experts allotted different areas and questions. Very little room for the interviewers to deviate. Time for interview, panel of interviewers, opening and closing formalities planned in advance and followed strictly.
Selection Process
Panel interview A panel of experts interview each candidate, judges the performance individually and prepares consolidated score sheet. Usually adopted for middle level and senior level management staff. Depth interview Candidate examined extensively in core areas of job skills and knowledge. Usually conducted for specialist jobs.
Selection Process
On-line interviews Information technology has brought significant development in the selection process and one of the important development is On-line interviews. Selection techniques include On-line applicant search, application submission, On-line tests, internet based recruiting etc. Most global companies follow this practice. Reduces the cost of interview to a large extent.
Selection Process
Decision making interview Head of the organization/head of the department interviews the candidates mostly through informal discussion. Examines the interest of the candidate in the job, organization, adaptability to the organization culture and working conditions. Most organizations have realized that attitude matters much more than skill and knowledge. Interviewers look for the right attitude while making final decision.
Selection Process
Interview process Steps involved Preparation for the interview Conducting the interview Closing the interview Evaluating the interview results
Selection Process
Preparation for the interview a. Choose the types of interviews based on the nature and requirements of the job. b. Identify the knowledge and skill areas to be examined based on job requirements. c. Decide the type and number of interviewers. d. Interviewers may be drawn from HR specialists, line managers, Psychologists etc.
Selection Process
Preparation for the interview Review and check of the information available in the application blank in terms of Accuracy and Validity Stability Nature of positions in the previous employment to be compared with the proposed one. Employee growth vis--vis organizational progression in previous employments. Unexplained breaks
Selection Process
Preparation for the interview f. Administrative arrangement g. Physical setting h. Convenient time for interviewers and interviewees i. Coverage of interview Qualifications, Experience, Gaps in Education and Employment & their reasons, Likes and Dislikes, Manner and Poise, Cultural level etc.
Selection Process
Preparation for the interview Effectiveness of psychologists in interview process. Wide variation in the abilities of psychologists as in case of other specialists. Psychologists with knowledge of job requirements & organizational interest can be a competent interviewer. Psychologists ability as interviewer usually higher than non psychologists. Psychologists act as an additional resource for interviews and not the deciding factor.
Selection Process
Conducting the interview Some common mistakes committed by Interviewers Indulging in discourtesy and rudeness Arriving at conclusions before the interview is over Asking questions in mechanically Feeling shy in asking questions Failing to observe the behavior and tap the unexplored areas Not listening and observing properly
Selection Process
Conducting the interview Steps/ sub - activities of conducting the interview. a) Open the interview to establish a rapport with interviewee and gain confidence, the interviewer should open the interview with a conscious efforts and with conductive voice, speech and appearance during the first few minutes.
Selection Process
Conducting the interview Steps/ sub - activities b) Get complete and accurate information interviewer should get full information relating to skill, knowledge, aptitude, attitude and traits of the candidate. The interviewer, in order to get complete and accurate information. Must be alert for pauses, omissions & diversion of discussion. Has to use the language which is clear to the interviewee
Selection Process
Steps/ sub - activities Has to ask direct and straight questions and avoid ambiguous questions. Has to make unjustifiably favorable remarks or unfavorable comments about the applicants motives or actions with a view to obtain truthful information. Has to frame the questions in such a way that the candidates answers should be elaborate.
Selection Process
Conducting the interview Steps/ sub - activities c) Recording of observations & impressions required to manage the information, system for evaluating the candidates suitability at a later stage. d) Guide the interview To have sufficient discussion on a topic. Not too much or too less. To lead the applicant tactfully and surely towards the interview goals. Guide the applicants who avoid certain areas.
Selection Process
Conducting the interview Steps/ sub - activities e). Checking the success of the interviewer Making favorable impression from the candidate at the beginning Refraining from making judgement at the beginning Putting the candidate at ease Avoiding expression of approval or disapproval of any attitude Taking notes Giving opportunity to candidates to ask questions Giving a feeling of fair and just attitude in conducting the interview Obtaining relevant and adequate information Closing the interview pleasantly with an indication
Selection Process
Closing the interview As important as its commencement Interview should end pleasantly Interviewer to show signs of closing the interview at the appropriate time Evaluating the interview results Results should be put in proper formats Results should be expressed in numbers Subjectivity should be avoided
Selection Process
Medical examination Requirements differ depending on job requirements Some physical qualities are clear vision, perfect hearing, unusual stamina, tolerance for hard working conditions, clear tone etc. Medical examination gives following information Whether applicant medically fit for the job Whether the health problems or psychological attitudes likely to interfere with work efficiency Reveals applicants physical measurements
Selection Process
Reference checks Checking about the candidates from the persons whose names have been given by the candidate in the reference column These persons are individuals familiar with the candidate. Could be the principal of the college, the manager in the previous employment Information from the previous employer will include job title, job description, period of employment, gross emoluments, benefits, absenteeism rate, whether the previous employer would like to employ the candidate again
Selection Process
Reference checks The various methods followed are: Telephone call Postal mail / e-mail Personal visit Engaging outside organization specializing in reference checks
Selection Process
Line managers decision Very good understanding between HR managers and the line managers is a must to ensure proper selection decisions Line manager as a great say in the final decision to select or reject Line manager as to take into account the previous information collected about the candidate Line manager as to consider economic, behavioral & social implications
Selection Process
Job offer Intimation of the decision to both successful as well as unsuccessful candidates Job offer to the successful candidates may be either immediate or after some time depending on the time schedule Candidate on receiving job offer communicates acceptance or non acceptance or requests for modifications in terms and conditions Employment May or may not modify the terms and conditions requested by the candidates The company employees those candidates who accept the job offer
Placement
As soon as the candidate reports for duty, the organization has to place him initially in that job for which he is selected Training is given in related jobs during the period of training / probation Final placement decided after the training / probation period is over and considering the candidates aptitude and performance during that period
Placement
Placement is the determination of the job to which an accepted candidate is to be assigned and his assignment to that job It is matching what the supervisor thinks he can do with the job demands and what he offers in the form of pay roll, working environment etc
Placement
Problems in placement a) Employee expectations if the employee expect high salary, independent and challenging work and the job offers low salary, dependent and routine work, the employee feels misfit in the job b) Job expectations / description the expectations from the employee sometimes are more than their abilities and skills c) Change in technology the technological changes result in changes in job description and is the cause for mismatch between the job and employee
Placement
Problems in placement d). Changes in organizational structure mergers and acquisitions, downsizing, delayering etc. result in changes in structure and changes in the jobs d) Social and psychological factors these factors have a bearing in team work and group formation. Sometimes result in mismatch between the employee and the job
Placement
a) How to make placement effective Job rotation technique of rotating the employee among different jobs in the department / organization enables the employee to satisfy his aptitude for challenging work and finds the match with the job Teamwork teamwork allows employees to use their skills, knowledge & abilities more effectively Training and development continuous employee training and management development helps the employee to acquire new skills and knowledge based on the redesigned jobs
b)
c)
Placement
How to make placement effective Job enrichment job enrichment provides the challing work and decision making authority to the employees. It gives the opportunities of utilizing the varied skills. Empowerment - makes the employee to exploit his potentials and make use of them Relocation multi location companies place the selected candidate at one location initially and shift to other location later based on organization as well as employee requirement
e) f)
Induction
Induction is the process of receiving and welcoming a new employee and give the basic information to settle down quickly and happily and start the work Introducing the new employee to the job, job location, other employees, organization, surroundings etc Lack of information, lack of knowledge about the requirements of the job, lack of knowledge about the new environment etc disturb new employees Gains more significance as the turnover rate increases among new employees
Induction
Objectives of induction Putting the new employee at ease Creating interest in the job & the company Providing basic information about working arrangements Indicating the standards of performance and behavior expected from the employee Creating the feeling of social security Minimizing the reality shock
Induction
Information to be provided a) About the company History, growth, products, market, customers Conditions of employment working hours, holidays, shifts etc Pay, allowances & deductions Leave rules Disciplinary rules & procedure Health, safety & medical care Canteen / restaurant facilities Uniforms
Induction
Information to be provided b) About the department Introduction to the employees in the department Describe briefly about the department Position of the employee in the departmental organization structure Work distribution Equipments to be used by the employee
Induction
Information to be provided c). About the superiors and subordinates Introduction to the person / persons to whom the new employee should report Introduction to superiors with whom the work is related indirectly Introduction to the subordinates with whom the new employee has to work Introduction to the subordinates who will report to the new employee
Induction
Advantages of induction a) First impression matter a good deal & results a less turnover b) Newcomer adjusts to the work quickly and saves supervisors time c) Reduces employee dissatisfaction and grievances d) Develops a sense of belongingness and commitment
Induction
Induction problems a) Busy and / or untrained supervisors may fail in carrying out the programme b) New employee may not cope up with too much information in short time c) Gap between the wider orientation by the HR department and the narrow orientation by the concerned department d) Employee may be required to fill too many forms during the induction programme
Induction
How to make the programme more effective a) Anticipate possible problems and find solutions in advance b) Warm and friendly welcome may be extended to the new employees c) A phased induction programme would place the new employee at ease and learn slowly d) Periodical follow-up & filling the gaps in the information then reduce the problems e) Attaching a colleague to the new employee for a month or minimum required period f) Providing written and documented information through video cassettes.
Training and Development

Meaning Training is defined as the organized procedure by which employee learn and improve knowledge and skills for a definite purpose. Training improves, changes and moulds the employees knowledge, skill, behavior, aptitude and attitude towards the requirements of the job & the organization.
Differences between Training & Development

Area Content Training Development
Purpose Duration For whom
Technical skills and Managerial & knowledge behavioral skills & knowledge Specific job related Conceptual & general knowledge Long-term Short-term Mostly technical & non-managerial personnel Mostly for managerial personnel
Importance of Training
No organization can get a candidate who exactly matches with the job and the organizational requirements. Hence, training is important to develop the employee and make him suitable to the job. The job & organizational requirements change from time to time with the change in the awareness of TQM, TPM etc. The objectives of TQM can be achieved through training.
Importance of Training
Trained employees become a valuable asset to the organization Training enhances 4 Cs viz. Competence, Commitment, Creativity & Contribution for the organization.
Benefits of Training to the Organization

Leads to improvement in quality, productivity & profitability Helps employee align with organizational goals Improves job knowledge and skills at all levels of the organization Improves employee morale Helps in the preparation of guidelines for work
Benefits of Training to the Organization

Aids in development for promotion from within Stimulates preventive management as opposed to putting out fires. Helps employees adjust to change Creates an appropriate climate for growth & communication Aids in handling conflicts, thereby helping to prevent stress & tension
Benefits of Training to the Individual

Helps the individual in making better decisions & effective problem solving Aids in achieving self-development and self-confidence Increases job satisfaction & recognition Through training & development, motivational variables of recognition, achievement, growth, responsibility and advancement are internalized and operationalized Provides the trainee an avenue for growth and a say in his future Growth and learning happen side by side Helps eliminate fear in attempting new tasks
Need for Training

a) To match the employee specifications with the job requirements & organizational needs. Basically to mould the employees skill, knowledge, attitude etc in line with the job requirements. b) Organizational viability and the transformation process the organization viability is continuously influenced by environmental pressure. If the organization does not adapt to the changes in the environment, it will lose its market share. For adapting to the changes, first it has to train the employees.
Need for Training

c) Technological advances adoption of latest technology requires that employees be trained to enrich them in the changing technical skills and knowledge from time to time. d) Organizational complexity the complex problems of coordination and integration of activities due to diversification and expansion by organizations calls for training the individuals in these skills.
Need for Training

e) Human relations training in human relations is necessary to deal with human problems such as alienation, interpersonal conflicts, inter group conflicts etc. f) Change in job assignment when an employee is promoted to the higher level, training is necessary. Same is the case when an employee is transferred to a new location on a new job.
Need for Training

g) Improvement in performance training is also necessary to increase productivity, improve quality, prevent obsolescence. h) Improvement in working conditions training plays a vital part in improving organizational climate, improve health and safety. i) To act as mentor mentoring is a fine art of spreading knowledge & fostering individual growth. Most organizations consider mentoring as a management tool to encourage development of individuals and teams.
Objectives of Training
a) To prepare the employee, both new and old to meet the present as well as the changing requirements of the job and the organization b) To prevent obsolescence c) To prepare employees for higher level tasks d) To build up a second line of competent officers and prepare them to occupy more responsible position e) To broaden the minds of senior managers by providing them with opportunities for an inter change of experience within and out side the organization with the view to correct the narrow outlook that might have arisen over a period and from over specialization
Objectives of Training
f) To develop the potentialities of people for the next level job To ensure smooth and efficient working of a department To ensure economical output of required quality To promote individual and collective morale, a sense of responsibility, cooperative attitudes & goods relationships
TNA Training Needs Analysis

Training needs = job & organizational requirement employees specifications Training needs are identified on the basis of organizational analysis, job analysis & manpower analysis TNA is a must for planning the training programme, training methods & the course content

Methods for assessment of training needs Organizational requirements / weaknesses Departmental requirements / weaknesses Job specifications & employee specifications Identifying specific problems Anticipating future problems / opportunities Observations of behavior Interviews Questionnaire surveys Tests / examinations

Methods for assessment of training needs Performance appraisal Exit interviews Quality circles proceedings Customer survey / satisfaction data Attitude survey of individuals Random work sampling of individuals Rating scales
Training Methods
Training Methods
On-the job
Off-the job
Job rotation Coaching Job instruction Step by step Committee assignments
Vestibule training Role play Lecture methods Conference / seminar Programmed instruction
On the Job Training Methods

Individual placed on a regular job and taught the skills necessary to perform the job The trainee learns the job under the supervision and guidance of a qualified worker or instructor Advantage trainee gets first hand knowledge & experience under actual working conditions

Job Rotation Involves movement of the trainee from one job to another. The trainee receives job knowledge and gains experience in each assignment. Advantage - Trainee able to understand the problems of employees on other jobs and respect them.

Coaching The trainee is placed under a particular supervisor who functions as a coach in training the individual. The supervisor provides feedback to the trainee on performance and offers suggestions for improvement. Limitation The trainee may not get the freedom or opportunity to express ideas.

Job Instruction Also known as step by step training. The trainer instructs the trainee step by step how to do the job. The trainer simultaneously appraises the performance of the trainee and correct the trainee as required. Committee Assignments Group of trainees given an organizational problem and asked to solve the problem. It develops teamwork.
Off the Job Training Methods

Trainee is separated from the job situation and attention focused upon learning the material related to his future job performance. Trainee can place his entire concentration on learning rather than learning and doing simultaneously. Trainees get opportunities to express their ideas. Organizations now use information technology and multimedia technology in training.

Vestibule Training Actual work conditions are simulated in a class room. Equipment, materials, files, documents etc used in actual job performance are used in training. The duration ranges from days to a few weeks.

Role Playing It is defined as a method of human interaction that involves realistic behavior in imaginary situations. The participants play the role of certain characters such as the Production Manger, Superintendents, Maintenance Engineers, Quality Control Inspectors, Foremen, Workmen etc. This method is mainly used for developing interpersonal relations.

Lecture Method Also known as classroom method, it is a traditional and direct method of instruction. The instructor organizes the material and delivers a talk to a group of trainees. To be effective, the lecturer must motivate and create interest among the trainees. Advantages it is direct and can be used for a large group of trainees. Saves time & cost. Disadvantage does not provide for transfer of training effectively.

Conference / Discussion / Seminar Involves a group of people who pose ideas, examine and share facts, ideas & data, test assumptions & draw conclusions, all of which contribute to the improvement of job performance. Advantages discussion involves two way communication and hence immediate feedback is provided. Participants feel free to speak and hence they come out with their best. Good leaders can make a success out of this method.

Programmed Instruction The subject matter to be learned is presented in a series of carefully planned sequential units. These units are arranged from simple to more complex levels of instruction. The trainee goes through these units by answering questions or filling the blanks. Disadvantage this method is expensive and time consuming.
Training Procedure
Training Procedure
1. Preparing the instructor The instructor must possess the following qualities.
Know the job or subject Aptitude & ability to teach Willingness towards profession Pleasing personality & capacity for leadership Knowledge of teaching principles & methods Logical sequencing of subject matter Ability to select the technique of instruction i.e. illustration, demonstration or explanation. Be a permanent student i.e. ready to learn and equip with latest concepts & knowledge.
Training Procedure
2. Preparing the trainee Place the trainee at ease. The task may be new and unfamiliar to some trainees and may feel uncomfortable. The trainee could be prepared if the instructor is able to empathize.
Training Procedure
3. Getting ready to teach Plan the programme Prepare instructors outline Session to move in logical sequence Not to cover too much material in too short a time Discuss each item in depth Repeat, but in different words Take material from standard texts where available Where standard texts not available, use group approach to prepare the material
Training Procedure
4. Presenting the operation Alternative ways of presenting the operation could be explanation, demonstration, use of pictures, charts, diagrams etc. Also the trainer can use various training aids. The trainer should decide in advance about the same. Try out the trainees performance The trainee asked to start the job, explain each step before doing it and in the presence of the trainer. Only through repetitive practice, the trainee will acquire more skill.
5.
Training Procedure
6. Follow up It is not correct to assume that things are always constant. Follow up needs to be done after each programme to analyze and effect improvement in future programmes.
Advantages of Training
1. 2. 3. 4. 5. 6. Increased productivity Improvement in quality Heightened employee morale Reduced supervision Reduced accidents Increased organizational stability
Evaluation of Training Programme

Evaluation of training programme can be defined as the attempt to obtain information on the effectiveness of training programme, the effects on performance and to assess the value of training in the light of that information. The basis of evaluation and the mode of collecting the information necessary for evaluation should be determined at the planning stage. Evaluation leads to controlling & correcting the training programme.
Five Levels of Evaluation

1. Reaction Trainees reactions immediately at the end of the programme on usefulness, subject coverage, depth of content, presentation methods, teaching methods etc. 2. Learning Evaluation is on the basis of quantity of content learned, time in which it is learned and the learners ability to use or apply the content learned. 3. Job Behavior Evaluation includes the manner and extent to which the trainee has applied his learning to the job.
Five Levels of Evaluation

4. Organization Evaluation measures the use of training, learning and change in the job behavior in the form of increased productivity, improved quality, morale, sales turnover etc. 5. Ultimate value It is the measurement of the ultimate result of the contributions of the training programme to the company goals like survival, growth, profitability etc and to the individual goals like personality development etc.
Methods of Training Evaluation

1. Finding trainees expectations before the programme and collecting feedback after the programme. 2. Seeking opinion from the trainees supervisor regarding the performance and behavior before and after the training programme. 3. Evaluation of trainees skill levels before and after the training programme.
Methods of Training Evaluation

4. Seeking opinion from the trainees colleagues regarding the performance and behavior before and after the training programme. 5. Measurement of parameters like absenteeism levels, turnover, wastage/scrap, accidents, breakage of machinery etc. 6. Seeking opinion from the trainees subordinates regarding the performance and behavior before and after the training programme.
Performance Appraisal
Introduction Performance appraisal helps the employee & the management to assess the level of employees performance compared to the standard / pre-determined levels. Performance appraisal is a very essential element in any organization to understand & improve the employees performance. Performance appraisal used as a basis to decide promotions, increments, transfer etc. Performance appraisal is used as the basis for employee development.
Meaning & Definition Performance appraisal is a method of evaluating the behavior & performance of employees in the workplace. It includes both the qualitative & quantitative aspects of performance. It indicates how well the employee is fulfilling the demands of the job. Performance should not be confused with effort. Performance is always measured in terms of results. Performance appraisal is the systematic description of an employees job-relevant strengths and weaknesses.
Meaning & Definition The basic purpose is to find out how well the employee is performing the job and establish a plan of improvement. Appraisals are arranged periodically according to a definite plan Performance appraisal is not job evaluation. It refers to how well someone is doing the assigned job. Job evaluation determines how much a job is worth to the organization and , therefore, what range of pay should be assigned to the job Performance appraisal is a continuous process in large scale organizations.
Contents of Performance Appraisal

Regularity of attendance Ability to work with others Leadership style & abilities Initiative Technical skill Ability to grasp new things Reasoning ability Originality & resourcefulness Integrity capability to assume responsibility Knowledge of systems & procedures Quality of suggestions offered for improvement
360 Performance Appraisal

The appraiser is any person who has knowledge about job content, the contents to be appraised and is capable of determining what is more important & what is relatively less important. The appraiser is connected to the appraisee in some way and can observe the employee while performing the job. The typical appraisers in 360 Performance Appraisal are employees themselves (self appraisal), supervisors in the same department, supervisors in other departments, subordinates, peers, users of service & consultants.

Supervisors the supervisors include superiors of the employee, other superiors having knowledge about the work of the employee and department head/manager. The normal practice in most organizations is that immediate superiors appraise the performance which in turn is reviewed by the department head / manager.

Peers peer appraisal may be reliable if the work group is stable over a reasonably long period of time and performs tasks that require interaction. Subordinates in organization where the relationships between superiors & subordinates are cordial, the concept of superiors rated by subordinates is practiced.

Self appraisal employees appraise their own performance when they are able to understand the objectives their expected to achieve & standards by which they are to be evaluated. Users / customers in service organizations, employee performance relating to behavior, promptness, speed, accuracy etc can be evaluated by the users or customers.

Consultants sometimes consultants may be engaged for appraisal when employees or employers do not trust supervisor appraisal & the management does not trust self appraisal & other form of appraisal. The consultants are trained and they observe the employees at work for a sufficiently long period of time.
Methods of Performance Appraisal

1. 2. 3. 4. 5. 6. 7. 8. 9. Traditional methods Graphic rating scales Ranking method Paired comparison method Forced distribution method Checklist method Critical incident method Essay or free form appraisal Group appraisal Confidential reports
Methods of Performance Appraisal

1. 2. 3. 4. 5. Modern methods Behaviorally anchored rating scales Assessment centre Human resources accounting Management by objectives Psychological appraisals
Traditional Methods of Performance Appraisal

1. Graphic rating scales Comparing individual performance to an absolute standard. Judgments about performance are recorded on a scale. Oldest & widely used. Also known as linear rating scale or simple rating scale. Appraisers given printed forms which contain the various objectives, the qualities to be rated like analytical ability, creative ability, initiative, leadership qualities, emotional stability etc in case of managerial personnel.

1. Graphic rating scales The qualities in respect of workmen could be quantity and quality of work, job knowledge, attitude, dependability, initiative etc. The rating scale used could be continuous rating scale or discontinuous rating scale. In continuous scale, the points are in a particular order. For e.g 0 to 5 i.e. 0,1,2,3,4,5 where 5 is the highest.

1. Graphic rating scales
In discontinuous scale, the appraiser assigns the points against each quality or character. The points given by the rater to each character are added up to find out the overall performance. The employees are then ranked on the basis of the total points assigned to them.
2. Ranking method The employees are ranked from best to worst on some characteristics. The rater first finds the employee with the highest performance & employees with the lowest performance. The rater then selects the next highest and next lowest and so on until all the employees in that group are rated. Relatively easy and inexpensive but reliability and validity open to doubt. Another limitation is the size of the difference between the various ranks is not well defined.

3. Paired comparison method
The appraiser ranks the employees by comparing one employee with all other employee in the group, one at a time. Each employee is assigned a capital letter like A,B,C,etc & one separate sheet used for each employee. For each plotted pair, write the letter of the employee who has done a superior overall job and assign a certain percentage of the total positive evaluation. If a department has two outstanding employees and six average employees and if this method is correctly used, the two employees will get a much higher percentage of positive comparison than the other six. Number of comparisons = N (N-1) / 2. For large number of employees, it is time consuming.

4. Forced Distribution method
The rater after assigning the points to the performance of each employee distributes his ratings in a pattern to conform to normal frequency distribution. This method is developed to prevent the raters from rating too high or too low. This method eliminates central tendency & leniency biases. Main drawback is the assumption that all groups of employees will have the same distribution of excellent, average & poor performers Employees are placed in certain ranked categories but not rank within the categories.

5. Checklist method Three types simple checklist, weighted checklist, forced choice method. Simple checklist - The checklist consists of a large number of statements concerning employee behavior. Rater checks to indicate if the behavior is positive or negative to each statement. The performance is rated on the basis of number of positive checks.

5. Checklist method Weighted checklist it involves weighting different items in the checklist to indicate that some statements are more important than others. Usually the weights are not given to the supervisors who appraise but are computed and tabulated by someone else, may be the HR person. The performance ratings are multiplied by the weights of the statements and then added up. Expensive to design and may consume more time

5. Checklist method Forced choice method large number of statements in groups are prepared. Each group consists of four descriptive statements out of which two are most descriptive i.e. favorable and two are least descriptive i.e. unfavorable. The actual weightage of statements are kept secret. The appraiser asked to select one statement that mostly describes employee behavior and one statement from the unfavorable statements. Eliminates or greatly reduces the raters personal bias. Raters not properly trained will find difficult to choose among statements.

6. Critical incident method The supervisor continuously records the critical incidents of the employee performance or behavior relating to all characteristics, both positive & negative in a specially designed notebook. The supervisor rates the performance on the basis of notes taken. This method is more objective than subjective & hence helps in reducing the bias in evaluation. One drawback is the critical incident may not be defined in the same manner by all raters. Sometimes the employee might have done something critically good and excellent but the supervisor may not have been present and hence not recorded.

7. Essay or free form appraisal The manager writes a short essay describing the employees performance during the rating period. Emphasis is on evaluation of overall performance based on the strengths & weaknesses of the employees. Time involved is more. Not amenable for evaluation and analysis. The writing skills different for different evaluators.

8. Group appraisal
Employee appraised by a group consisting of the immediate supervisor, supervisors in other departments having close contact with the employees work, the HOD and consultants. The group may use one or more of the earlier methods. The group compares the actual performance with standards, finds out the deviations, discusses the reasons for the same, suggests ways for improvement, prepares action plans. The group also studies the need for change in the job analysis and standards and recommends necessary changes.

9. Confidential reports A traditional method is to assess the performance confidentially. The superior appraises the performance based on observations, judgement & intuitions. The employee is not informed about the report. Not in use these days.
Modern Methods of Performance Appraisal

1. BARS Behaviorally Anchored Rating Scales. It combines the techniques employed in the critical incident method & weighted checklist rating scales. It involves 5 steps. Step 1: Collect critical incidents People with knowledge of the job describe specific examples of effective & ineffective behavior related to job performance.

1. BARS Behaviorally Anchored Rating Scales Step -2: Identify performance dimensions The critical incidents are broken into a small set of key performance dimensions. Some of the performance dimensions are technical competence, handling customer relationship, meeting day-to-day deadlines. While developing varying levels of performance for each dimension (anchors), specific examples of behavior should be used which could later be scaled in terms of good, average, below average etc.

1. BARS Behaviorally Anchored Rating Scales Step 3 : Reclassification of incidents Another group of people having knowledge about the job reclassify the critical incidents. They are given the definition of job dimension and told to assign each critical incident to the dimension that it best describes. Incidents for which the agreement is below 75% are discarded as being too subjective.

1. BARS Behaviorally Anchored Rating Scales Step 4: Assigning scale values to the incidents Each incidents is then rated on a one-to-nine scale with respective how well it represents performance on the appropriate dimension. A rating of one represents ineffective performance & the rating of nine indicates very effective performance. The second group of participants usually assigns the scale values. Means & standard deviations are calculated for the scale values to each incidents. Incidents that have standard deviations of 1.5 or less are retained.

1. BARS Behaviorally Anchored Rating Scales
Step 5: Producing the final instrument About six or seven incidents for each performance dimension are used as behavioral anchors. The final BARS instrument consists of a series of vertical scales (one for each dimension) anchored or measured by the final incidents. Each incident is positioned on the scale according to its mean value.

2. Assessment Centre The assessment of several individuals is done by various experts by using various techniques like in basket, role plays, case studies, simulation etc. Human Resources Accounting It deals with the cost vs contribution of human resources to the organization. The cost includes the cost of hiring, training & development & the wages & benefits given. The contribution is the money value of employee service measured by labor productivity, value addition etc. The performance is positive if the contribution exceeds the cost and can be measured in terms of percentage excess.
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4. Management by objectives MBO is a process where by the superior & subordinate jointly identify common goals, define each individuals areas of responsibility in terms of results expected and then use this measure for assessing the contribution. MBO focuses attention on goals that are tangible, verifiable & measurable.

5. Psychological Appraisal It consists of in-depth interviews, psychological tests, discussions with the employee, discussions with the superiors, subordinates & peers and reviews of other evaluation. Evaluation is conducted in the areas of intellectual abilities, emotional stability, motivational responses, reasoning & analytical abilities, interpretation & judgment skills, sociability, ability to foresee the future.
Uses of Performance Appraisal

Enables management to make effective decisions and / or correct the earlier decisions relating to the HRM issues like HR planning, fixation of salary & benefits, placement/placement adjustment decisions, identification of training needs, career planning & development etc. HR planning - Helps to evaluate the existing plans, job analysis, information system etc. Performance improvement Performance feedback helps the employee to improve the performance & for self development. Human relations - It improves superior subordinate relations through close interaction.

4. Compensation adjustments Many organizations base their pay increases & bonuses upon merit which is determine through performance appraisals 5. Placement decisions Promotions, transfers, demotions are based on performance. 6. Training & development needs Poor performance may indicate the need for retraining. Good performance may indicate untapped potential that should be developed.

7. Career planning & development Performance feedback guides career decisions about specific career paths. 8. Staffing process deficiencies Good or bad performance may indicate the strengths or weaknesses in the HR departments staffing procedures. 9. Job design errors Sometimes, poor performance may be an indication of ill conceived job designs and may need immediate diagnosis.

10. EEO Accurate performance appraisals takes care that internal placement decisions are not discriminatory 11. Employee counseling Sometime, the performance may be influenced by the external environment such as family, health, finance etc. When uncovered through performance appraisals, the HR department can provide assistance in the form of counseling the employee and find solutions to the problems.
Limitations & Problems of Performance Appraisal

1. a. b. c. d. Rating biases: Includes the following. Halo effect tendency to depend excessively on the rating of one trait. Error of central tendency some raters play safe by rating around the middle point of the rating scale. Leniency and strictness some raters may be liberal & assign higher rates consistently. Some raters the opposite. Personal prejudice if a rater dislikes any employee, the rating may be at the lower end. The recency effect the rater may remember the recent actions of the employee at the time of rating & rate on that basis.
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2. Failure of the superiors in conducting performance appraisal & post performance appraisal interviews. 3. Negative rating affect interpersonal relations & industrial relations. 4. Feedback & post appraisal interview may have a setback on production. 5. Supervisors often confused due to many objectives of performance appraisal. 6. Absence of inter-rater reliability
How to minimize the problems of performance Appraisal? By convening an open meeting with the appraisees to discuss the performance of all employees before, during and after performance review discussions. By encouraging everyone to comment on each others achievements and areas requiring improvement. The appraiser should tell the truth & reality behind the curtains to his subordinates. By conducting counselling meetings with the appraisees to appraise them of the reasons for their performance & its consequences.
Career Planning & Development Meaning & definition

Career pertains to all the jobs that are held during ones working life. A career is a sequence of separate but related work activities that provides continuity, order & meaning in a persons life. A career is defined as an individually perceived sequence of attitudes & behaviors associated with work related experiences and activities over the span of a persons life. A career path is the sequential pattern of jobs that form a career. Career goals are the future positions one strives for as a part of a career.
Career Planning & Development

Meaning & definition Career planning is the process by which one selects career goals & the path to these goals. Career development comprise the personal improvements one undertakes to achieve a personal career plan. Career management is the process of designing an implementing goals, plans and strategies to enable the organization to satisfy employee needs while allowing individuals to achieve their career goals.

Some examples of career planning practices
Promote from within whenever possible Employ personal employee intranet sites Design career & training paths for key competencies Identify & develop key character traits in managers Deploy career rotation as a tool to communicate a global culture Hold managers accountable as gatekeepers of employee career path planning.

Need for career planning To attract competent persons and to retain them in the organization. To provide suitable promotional opportunities. To enable the employees to develop and make them ready to meet future challenges. To increase the utilization of managerial reserves within an organization. To correct employee placement. To reduce employee dissatisfaction and turnover. To improve motivation and morale.
Career Development Actions

1. Job performance: Employee must prove that his performance on the job is to the level of standards established, if he wants career progress. 2. Exposure : Employees desire for career progress should expose their skills, knowledge, qualifications, achievements, performance etc to those who take the decision about career progress.
Career Development Actions

3. Resignations : Employees may resign the present job in the organization, if they find that career opportunities elsewhere are better than those of the present organization. Change the job : Employees who put organizational loyalty above career loyalty may change the job in the same organization if they find that career opportunities in other jobs in the same organization are better than those in the present job. Career guidance : Counselling provides information, advice & encouragement to switch over to another career or organization, where career opportunities are better.
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Promotion
Meaning & Definition Promotion is advancement of an employee to a better job in terms of greater responsibility, higher status, greater skill, increased salary etc. Promotion is the upward reassignment of an individual in an organizations hierarchy, accompanied by increased responsibilities, enhance status and increased income.
Promotion
Purposes of Promotion To utilize the employees skill, knowledge at the appropriate level in the organizational hierarchy resulting in organizational effectiveness and employee satisfaction. To develop competitive spirit and inculcate the zeal in the employees to acquire the skill, knowledge etc required by higher level jobs. To develop competent internal source of employees ready to take up jobs at higher levels in the changing environment. To promote employees self development and make them await their term of promotions.
Promotion
Purposes of Promotion To promote a feeling of content with the existing conditions of the company and a sense of belongingness. To promote interest in training and development programmes and in team development areas. To reward committed and loyal employees To get rid of the problems created by the union leaders by promoting them to officer levels.
Promotion
Basis of merit Merit is taken as a basis for promotion. Merit denotes an individual employees skill, knowledge, ability, efficiency & aptitude as measured from educational, training & past employment record. Advantages of merit system: a) The resources of higher order of an employee can be better utilized at higher level. It results in optimum utilization of human resources in an organization. b) Competent employees are motivated to exert all their resources and contribute them to the organizational efficiency & effectiveness. c) It encourages the employees to acquire new skills, knowledge etc for all-round development.
Promotion
Basis of merit Disadvantages of merit system: a) Merit denotes mostly the past achievement, efficiency but not the future success. Hence the purpose of promotion may not be served if merit is taken as the sole criteria for promotion. b) Some of the techniques of merit measurement are subjective. c) Many employees, particularly trade union leaders distrust the managements integrity in judging merit.
Promotion
Seniority as a basis of promotion Seniority refers to relative length of service in the same job and in the same organization. The logic behind considering the seniority as a basis of promotion is that there is a positive correlation between the length of service and the amount of skill & knowledge acquired by the employee. Advantages : a) Relatively easy to measure the length of service and judge the seniority. b) Full support of the trade unions is likely. c) No scope for favoritism & discrimination. Every party trusts the managements action. d) Gives a sense of certainty of getting promotion to every employee. e) Senior employees have a sense of satisfaction.
Promotion
Seniority as a basis of promotion Disadvantages a) The assumption that the length of service & learning are correlated not correct in many cases. Employees learn upto a certain stage & beyond that, the learning ability or the cognitive process diminishes. b) Demotivates the young & competent employees & may result in employee turnover. c) No zeal and interest to develop as everyone will be promoted over a period of time. d) Organizational effectiveness may drop.
Promotion
Seniority cum Merit Managements may prefer merit but trade unions may favor seniority. Hence a combination of both seniority & merit considered as the basis for promotion. It satisfies the management requirement of organizational effectiveness and the employees need for giving consideration to the length of service. In short it is striking a balance between seniority and merit and a new basis for promotion developed.
Promotion
Seniority cum Merit The various ways in striking the balance between seniority & merit are: a) Minimum length of service & merit under this method, the employees who complete some minimum service are eligible for promotion & then merit is taken as the sole criteria for selecting from these eligible candidates. b) Minimum merit & seniority minimum score of merit necessary for the future job is determined and all employees who secure this minimum score are eligible. From the eligible candidates, the selection is by seniority. c) Measurement of seniority & merit through a common factor
Promotion
Benefits of promotion a) Better utilization of employees skills & knowledge. b) Creates and increases interest in other employees. c) Increases in acquiring higher qualifications & in training & development d) Improved employee morale & job satisfaction
Promotion
Problems with promotion a) Disappointment of some employees some employees not promoted feel disappointed when their colleagues with similar qualifications & experience are promoted either due to favoritism or due to lack of systematic promotion policy. They may develop negative attitude and reduce their contributions.
Promotion
Problems with promotion b) Some employees refuse promotion sometimes the employee may refuse promotion. Such instances include promotion together with transfer to an unwanted place, promotion to that level where the employee feels he may be incompetent in that job etc.
Promotion
Problems with promotion c) Not able to relieve employees some superiors may not relieve their subordinates who are promoted because of their indispensability in the present job. Promotion problems can be minimized through career counselling by the superiors & by formulating systematic promotion policy.
Promotion
Promotion policy a) Consistency policy should be applied uniformly to all employees irrespective of their background. b) Free from bias be impartial and no room for nepotism, favoritism etc. c) Equal opportunities across all categories of jobs, departments, regions etc.
Promotion
Promotion policy d) Open policy every eligible employee should be considered for promotion rather than a closed system which considers only a class of employees. e) Clear norms / criteria the policy should contain clear cut norms & criteria for judging merit, length of service etc. f) Authority the appropriate authority should be defined & entrusted with the task of making the final decision. g) Counselling promotional counselling, encouragement, guidance & follow-up regarding promotional opportunities should be a part of the policy.
Transfer
Meaning A lateral shift causing movement of individuals from one position to another. May not involve any change in duties, responsibilities & compensation. Change in assignment in which the employee moves from one job to another in the same level of hierarchy requiring similar skills & in the same level of pay.
Transfer
Reasons of transfer To meet the organizational requirements of change in technology, change in schedules, change in product line, fluctuations & market etc. To satisfy the employees needs of working in a department where they feel opportunities for advancement are better, wanting to move nearer to their native place etc. To utilize employees skill, knowledge etc where they are more suitable or badly needed. To improve employees background by placing him in different jobs of various departments, units, regions etc. To correct inter personal conflicts. To adjust the workforce of one section /plant in other section/plant during lay-off, closure or adverse business conditions. To punish the employees who violate the disciplinary rules To help the employees whose working hours or place of work is inconvenient to them. To minimize fraud, bribe etc.
Transfer
Types of transfers Production transfer- transfers caused due to changes in production. Replacement transfer transfers caused due to initiation or replacement of a long standing employee in the same job. Rotation transfer transfers initiated to increase the versatility of employees. Shift transfer transfers of an employee from one shift to another. Remedial transfer transfers initiated to correct the wrong placements. Penal transfer transfers initiated as a punishment for indisciplinary action of employees.
Transfer
Categories of transfer Employee initiated transfer Company initiated transfers Public initiated transfers Benefits of transfer
Transfers benefit both the employees and the organization. Transfers reduce employees monotony, boredom etc & increase employees job satisfaction. Improves employees skills, knowledge etc Correct erroneous placement & inter personal conflicts. Improves employees morale Prepare the employee to meet organizational exigencies including fluctuations in business and organizational requirements.
Demotions
Meaning & definition It is also one type of internal mobility It is the opposite of promotion It is the reassignment of a lower level job to an employee with delegation of responsibilities & authority required to perform that lower level job & normally with lower level pay. Generally, organizations use demotions less frequently as it affects the morale of the concerned employee as well as other employees.
Demotions
Reasons for demotions Unsuitability of the employee to higher level jobs employees promoted based on seniority & past performance sometimes do not meet the requirements of the higher level job. Such employees may have to be demoted to the lower level job where their skills, knowledge & aptitude may be utilized.
Demotions
Reasons for demotions Adverse business conditions sometimes adverse business conditions may force the organization to reduce quantity / quality of production, withdrawal of some product lines, closure of certain departments or plants. Organizations may resort to economy drives. In such cases, junior employees may be retrenched & senior employees may be demoted to junior level jobs.
Demotions
Reasons for demotions New technology new technology & new methods of operations demand higher level skills. If the existing employees do not develop themselves to meet these new requirements, organizations demote them to the lower level jobs where they are suitable. Disciplinary grounds if the employees behavior calls for some action but not that serious to terminate the service, the employee may be demoted.
Demotions
Demotion principles Organizations should clearly specify the demotion policy. Otherwise the superiors may demote the employees according to their whims & fancies. Specification of circumstances under which an employee will be demoted like reduction in operations, indisciplinary cases Specification of a superior who is authorized & responsible to initiate a demotion. Jobs from & to which demotions will be made and specifications of lines or ladders of demotion.
Demotions
Specification of basis for demotion like length of service, merit or both. Should provide for an open policy rather than a closed policy. Specification of provisions regarding pleasing the demoted employees in their original place if normal conditions are restored. Specification of nature of demotion, i.e. whether it is permanent or temporary. Specifying the guidelines for determining the seniority of demoted employees.
Wage & Salary Administration

Introduction Wage & Salary Administration is essentially the application of a systematic approach to the problem of ensuring that employees are paid in a logical, equitable & fair manner. Wage & Salary Administration is the most important aspect of human resource management. The compensation & benefits paid to employees has a direct correlation with their performance.

Definitions Wage is defined by ILO as the remuneration paid by the employer for the services of hourly, daily, weekly & fortnightly employees. It is the remuneration paid to blue collar employees. Salary is defined as the remuneration paid to the clerical & managerial personnel employed on monthly or annual basis. In todays context, the distinction between wage & salary is not valid & the two terms are used interchangeably.

Definitions Earnings are the total amount of remuneration paid to employees during the given period & includes the basic pay, dearness allowance, house rent allowance, city compensatory allowance, overtime, LTA, medical reimbursement, conveyance allowance, other allowances etc.

Definitions Nominal wage is the wage paid in monetary terms. Real wage is the wage arrived after discounting nominal wage by the living cost. It represents the purchasing power of nominal wage. Take home salary is the amount of salary left after making authorized deductions like PF contribution, income tax, insurance premiums etc.

Definitions Minimum wage is the amount of remuneration which could meet the normal needs of an average employee regarded as a human being living in a civilized society. It is defined as the amount of remuneration sufficient to enable a worker to live in reasonable comfort, having regard to all obligations to which an average worker would ordinarily be subjected to.

Definitions Statutory minimum wage is the amount of remuneration fixed according to the provisions of the Minimum Wages Act, 1948. Need based minimum wage is the amount of remuneration fixed on the basis of norms accepted at the 15th session of the Indian Labour Conference held at New Delhi in July, 1957. The Conference recommended that minimum wages should ensure the minimum needs of industrial workers.

Definitions Norms laid down in the conference on need based minimum wages are : 1) In calculating the minimum wage, the standard working class family is taken as three consumption units for one earner, the earnings of women, children are disregarded. 2) Minimum food requirements calculated on the basis of a set intake of calories as recommended by Dr. Aykroyd for an average Indian adult of moderate activity. 3) Clothing requirements estimated on the basis of per capita consumption of 18 yards per annum per person i.e. 72 yards for a family of four.

4) For housing, the rent corresponding to the minimum area provided for under Government Industrial Housing Scheme to be considered for fixing the minimum wage 5) Fuel, lighting & other miscellaneous items of expenditure to be considered at 20% of the total minimum wage

Definition Fair wage refers to the wage received by workers performing work of equal skill, difficulty or unpleasantness. Incentive wage is the remuneration paid over & above the normal wage as an incentive for employees contribution to the increased production, time saving, material saving etc. Wage rate is the amount of remuneration for a unit of time excluding incentives, overtime etc. Standard wage rate is the amount of wage fixed for a unit of time fixed on the basis of job evaluation standards.

Need for sound salary administration Most of the employees satisfaction & work performance are based on this. Internal inequalities in salary are viewed seriously by some employees. Employees always tend to compare their salary with others. Employees compare the pay of different employees with their skill, knowledge, performance etc.

Objectives of wage & salary administration To acquire qualified competent personnel To retain present employees To secure internal & external equity To ensure desired employee behavior To keep labor costs in line with the ability of the organization to pay To pay according to the content & difficulty of the job & in tune with the effort & merit of the employees To facilitate payroll administration of budgeting & wage & salary control To simplify collective bargaining procedures & negotiations

Factors affecting wage / salary levels Remuneration in comparable industries the organization should try to pay atleast equal to the going rate for similar jobs in similar organizations in order to secure & retain competent employees, to follow the directive of courts of law, to meet the trade unions demands, to satisfy the employees need for same social status as that of same categories of employees in comparable organizations.

Factors affecting wage / salary levels Firms ability to pay one important consideration in fixing the salary levels is the ability of the firm to pay. In examining the paying capacity of an organization, apart from profitability, various expenses that the industry has to bear, certain trends in prices of products that are to be charged by the industry should also be taken into account. Trade unions demand higher wages when the companys financial position is sound.

Factors affecting wage / salary levels Relating to price index the cost of living is another important factor that influences the quantum of salary. The employees expect that their purchasing power be maintained at least at the same level, if not increased by adjusting wages to changes in cost of living. Dearness allowance is an allowance granted to the employees with a view to combating onslaughts of soaring prices. In some labour agreements, an escalator clause is provided for automatic increase based on cost of living index.

Factors affecting wage / salary levels Productivity productivity increase is also the result of employee satisfaction and contribution to the organization. But wage productivity linkage does not appear to be so easy since many problems crop up in respect of the concept and measurement of productivity. It is possible to link the wages to productivity in some organizations and may not be possible in some others. However, changes in productivity have their impact on remuneration.

Factors affecting wage / salary levels Union pressure and strategies the wages are also often influenced by the strength of unions, their bargaining capacity and their strategies. Arthur M. Ross concluded that real hourly earnings have advance more sharply in highly organized industries than in less unionized industries. Trade unions influence may be on the grounds of wages in comparable industries, firms financial position, rising living cost, government regulation etc. Unions generally pressurize management through collective bargaining strategies, political tactics & resorting to go slow, tool down & strikes etc.

Factors affecting wage / salary levels Government legislations - Government legislations influence wage determination. The two important legislations which affect wage fixation are: the Payment of Wages Act, 1936 & the Minimum Wages Act, 1948.

Factors affecting wage / salary levels The important provision of the Payment of Wages Act, 1936 are: ensuring proper payment of wages and avoiding all malpractices like nonpayment, under payment, delayed and irregular payment, payment in kind and under measurement of work. The act covers all employees drawing wage upto Rs.1000 per month. The act also stipulates time for payment of dues to the discharged employees. The act also stipulates that the organizations with less than 100 workers should pay the wage by the 7th of next month & the organizations with more than 100 employees should pay by the 10th of next month.

Factors affecting wage / salary levels The important provisions of the Minimum Wages Act, 1948 are. The act seeks to protect the workers from under payment of wages for their efforts. It presented the guidelines for the fixation of minimum wages which is just sufficient to meet the basic needs of workers and to keep a mans body and soul together.
Wage Incentives
All plans that provide extra pay for extra performance in addition to regular wages for a job. Refers to increased willingness as distinguished from capacity. Incentives increase the national momentum towards productivity. It is any formal and announced programme under which the income of an individual, a small group, a plant workforce or all the employees of a firm are partially or wholly related to some measure of productivity output.
Wage Incentives
According to the National Commission on Labour, wage incentives are extra financial motivation. They are designed to stimulate human effort by rewarding the person over and above the time rated remuneration, for improvements in the present or targeted results.
Wage Incentives
Objectives of wage incentive schemes 1. To improve the profit of a firm through a reduction in the unit costs of labor and materials or both. 2. To avoid or minimize additional capital investment for expansion of production capacity. 3. To increase a workers earnings without dragging the firm into a higher wage rate structure. 4. To use the same as a tool for better utilization of manpower, better production scheduling and control.
Wage Incentives
Merits of wage incentive schemes 1. Employers benefited due to reduced supervision. There is a cut in the expenditure on supervision. 2. Workers benefited due to the compensation linking with productivity. 3. Worker have the advantage of working in a relatively calm atmosphere to the extent to which supervision over their activities is relaxed.
Types of Incentive Plans

Halsey Premium Plan The days wage is assured and a bonus calculated on the basis of the time saved. Bonus = x Time saved x Daily wage Time taken Example : Std. Time for a job - 8 hours Wage rate - 0.50 / hour Work completed in - 6 hours Bonus - 0.66 Total wage - 4.66

Halsey Premium Plan Merits Guarantees fixed wage to slow workers & extra bonus to efficient workers. Reduced cost of labor since the piece rate decreases with increased production. Simple in design & hence easy to introduce Demerits Left to the workers to decide whether or not to product more after the standard has been reached.

The 100 Percent Premium Plan Tasks standards set by time study and expressed in time rates per piece. A definite hourly rate is paid for each task hour of work performed. The worker is paid the full value of the time saved. Example: Standard time for task - 10 hours Task completion time - 8 hours Hourly rate - 0.50 Total earnings - Rs.5.00

Taylors Differential Piece Rate Plan Introduced by F.W. Taylor Sufficient incentive to induce workmen to produce upto their full capacity. One rate for those who reach the standard. Lower rate for those below standard. Workers expected to produce certain units of work in a certain period of time. The standard production is determined through time & motion studies. The standard fixed is not unduly high and within reach of average workers.

Taylors Differential Piece Rate Plan Example: Standard time for 10 pcs - 8hrs Basic piece rate - 0.10 Incentive for those who complete within time - 120%

Taylors Differential Piece Rate Plan
Worker No of units completed % efficiency Total amount Effective piece rate
A B C D E
10 9 8 11 12
100 90 80 110 120
1.20 0.90 0.80 1.32 1.44
0.12 0.10 0.10 0.12 0.12
A,B&C are better off compared to D & E. D & E more than 100% efficient gets the same effective piece Rate as A who is just 100% efficient.
Profit Sharing
An agreement freely entered into, by which an employee receives a share fixed in advance of the profits. The theory behind profit sharing is that management should feel its workers will fulfill their responsibilities more diligently if they realize that their efforts may result in higher profits, which will be returned to the workers through profit sharing. Profit sharing usually involves the determination of an organizations profits at the end of the fiscal year & the distribution of a percentage of profits to workers qualified to a share in the earnings.
Profit Sharing
The agreement is voluntary & based on joint consultation made freely between the employers & the employees. The payment may be in the form of cash, stock of future credits of some amount over and above the normal remuneration paid to employees in a given situation. The proportion of the profits to be distributed among the employees is determined in advance.
Profit Sharing
Types of Profit Sharing Current profits in the form of cash or cheque or stocks as soon as the profits are determined. Deferred profits credited to employee accounts to be paid at the time of retirement or in particular circumstances. Combination i.e. part in cash & part placed in the employees account in a trust fund.
Bonus
An extra amount to the workers beyond the normal wage. A share of the workers in the prosperity of an organization. Various commissions, acts & amendments Bonus commission appointed in December 1961with M.R.Mehar as chairman submitted report in 1961. Payment of bonus act, 1965 Review committee with B.K.Nadan as chairman in April 1972 Act amended in 1972, again in 1975, again 1977, in 1980 & in1985.
Bonus
Bonus is a right of the worker Bonus should be paid unit-wise, with a view to create a sense of belongingness among the workers. Bonus to be paid from the available surplus. Employees working in factories & covered by Factories Act, 1948 eligible. Those working in universities, Govt. departments, hospitals etc not covered. Minimum bonus 8.33% of basic + D A irrespective of the surplus. Maximum bonus 20% Salary upto Rs.2500 per month eligible for bonus. Salary beyond Rs.1600 per month will be taken as Rs 1600 for bonus calculations.
ESOPs
Stock options allows the employees to purchase the shares of the company at a fixed and reduced price. Stock options are viewed as performance based incentives. Promotes the concept of employee ownership. Supports a change in employee attitudes & behavior leading to enhanced business performance. Enables organizations to retain efficient employees. Falling share prices may result in loss to employees. Unsound stock market conditions may cause inconvenience to employees in encashing their investment. Lack of transparency can earn accusations of favoritism.
Human Resource Records

Need for HR Records & HRIS Information required for various purposes like Performance Appraisal, Salary Fixation, Promotions, Transfers, Career Planning & Development Information also required for assessing the performance of various HR programmes Information required to effect continuous improvements in HR development programmes.

Meaning & Types of Records Records are informational documents utilized by an organization to carry out its functions. Records are descriptive reports or charts that provide ready information and preserves evidence for future reference Records provide tangible evidence of the past activities of an organization HR records contain information about employment salaries & wages, absenteeism, productivity, employee turnover, employee welfare, employee satisfaction surveys.

Types of records 1. Conventional papers, cards, charts, files, blueprints etc. 2. Modern video films, audio cassettes, magnetic tapes, compact disks, floppy etc. Contents of HR records Job specification, job description, recruitment, Selection, test and interview scores, performance appraisal, training records, PF, gratuity, medical benefits, absenteeism, suggestion schemes etc

Importance of HR records To supply information required by management for developing / modifying HR policies. To identify training needs and design training programmes. To take personnel decisions such as transfer, promotion, layoff, suspension, dismissal etc. To compensate the employees for the services rendered by them. To maintain up to date data on leaves, training, promotions, retirements, strikes etc.

Essentials of a good HR record Objectives for which it is maintained should be clearly and adequately stated. Should be consistent with the requirements for which it is maintained. Should be easily retrievable. Upkeep and maintenance should not be expensive. Should be kept under lock & key to avoid pilferage and tampering. Should be easily identified and differentiated from other records.

Duplication of entries in different records should be avoided. Persons responsible for maintaining each record should be clearly specified. Procedural manual detailing the procedure to be followed for maintaining and dealing with the records should be available.

Essentials of record keeping Simplicity Accuracy Economy Usefulness

Principles of record keeping Purpose for which the record is kept must be justifiable Records must be capable of verification Records must be classified. Some classifications are according to time i.e. chronological & some classifications may be based on the subjects Records must be precise The system should be flexible either to expand or contract according to circumstances
Human Resource Audit

An audit is a review and verification of completed transactions to see whether they represent the true state of affairs of the business. An audit is an examination & verification of accounts & records. HR audit refers to the examination & evaluation of policies, procedures & practices to determine the effectiveness and efficiency of HRM.

HR audit refers to: 1. The measurement of the effectiveness of the human resource managements mission, objectives, strategies, policies, procedures, programmes. 2. The determination of what should or should not be done in the future as a result of such measurement.

Objectives of HR audit 1. To review the whole systems of management programmes in which a management develops, allocates & supervises human resources in an organization with a view to determine the effectiveness of these programmes. 2. To seek explanations i.e. to get answers to such questions as what happened?, why did it happen? etc.

Objectives of HR audit 3. To evaluate the extent to which the line managers have implemented the policies already initiated. 4. To evaluate all the personnel in the organization. 5. To know how the various units are functioning and whether they have been able to meet the policies and guidelines. 6. To Identify the gaps between the objectives and the actual results to formulate corrective actions plans.

Need for HR audit is determined on the basis of the following factors: 1. The number of employees 2. Organizational structure 3. Communication and feedback system 4. Location of various units 5. Status of industrial relations manager 6. Extent of decentralization
Indicators for HR audit Function

Procurement
Qualitative
Job description & specification, exit interviews Wage survey, job evaluation
Quantitative
Turnover rates, selection ratio, recruitment lead time Salary differentials, number of employees earning incentives
Compensation
Labor relations
Contract interpretations, Work stoppages in labor management number of days time committees required for grievance redressal Employee handbook, voluntary participation in optional activities Suggestion ratios, accident rates, number of grievances Time taken for training, increase in productivity
Integration & maintenance
Training & development Training programmes, career planning
HRIS Definition
HRIS is a method by which an organization collects, analyses and reports information about people and jobs. It applies to information needs at macro and micro levels. HRIS is basically a data base system that offers important information about employees in a central and accessible location. When such information is needed, the data can be retrieved and used to facilitate human resource planning decisions.
HRIS Objectives
Computerized HRIS is designed to achieve the following objectives: 1. To offer an adequate, comprehensive and on-going information system about people and jobs. 2. To supply up-to-date information at a reasonable cost. 3. To offer data security and personal privacy.
Need for Computerized HRIS

1. Costly exercise HR records, if kept manually, do not offer up-to-date information at short notice. The clerical work involved is quite labor intensive and costly. 2. Inaccurate the manual transfer of data is prone to errors. Entries may get missed out, may be made twice and may be transferred to wrong documents.
Need for Computerized HRIS

3. Fragmentation information is not available at a central, easily accessible place since records are kept at separate locations, handled by different persons in different departments. 4. Difficult to analyze the manual analysis of data is time consuming and may not be available for decision making purposes.
Benefits of HRIS
1. HRIS can process, store and retrieve enormous quantities of data in an economical way. 2. The records can be updated quickly. 3. There is improved accuracy. 4. Information can be readily manipulated, merged and disaggregated in response to special and complex demands and presented promptly. 5. HRIS can greatly reduce fragmentation and duplication of data.
Setting up HRIS
1. Plan the information needs of an organization should be spelt out initially. This involves a detailed study of the activities carried out internally, work patterns and relationships, constraints affecting the system etc. 2. Design at this stage, the system analyst examines the flow of information, identifies gaps and outlines steps needed to organize the flow of information in an economical and effective manner.
Setting up HRIS
3. Implement this step involves setting up of HRIS, taking the organizational needs into account. Adequate training is arranged for employees so that they can learn to handle the system comfortably. Facilities are upgraded, procedures are also streamlined with a view to integrate HRIS with various organizational components.
Setting up HRIS
4. Evaluate it involves measuring the contributions of the system and identifying the gaps and undertaking remedial steps to ensure its smooth operation. The system is continually evaluated in the light of changes within and outside the organization.
Computerized HRIS Subsystems

1. Recruitment information advertisement details, applicant profile, placement data. 2. Personnel administration information leaves, transfers, promotion, increment etc. 3. Manpower planning information career planning , succession planning, inputs for skill development etc.

4. Training information designing course material, arranging need based training, appraisal of the training programmes. 5. Health information data relating to health, safety and welfare of the employees. 6. Appraisal information performance appraisal information that serves as input for training , promotions , career planning, succession planning etc.

7. Payroll information data regarding wages, salaries, allowances , incentives , French benefits , deductions for PF etc. 8. Personnel research information historic and current data about employees attitude, turnover , absenteeism etc which may be used for different types of analysis.
Personnel Inventory
Personnel inventory is a list of personnel and their background. HRIS contributes to the development of the personnel inventory for manpower planning. The information needed for personnel inventory is obtained from job applications and questionnaires filled by employees from time to time.
Personnel Inventory
1. 2. 3. 4. 5. 6. 7. 8. A typical personnel inventory offers the following types of information: Name and address Age , sex, marital status , dependents Educational background Languages known Past experience, skills and abilities Current carrier information Transfer, promotion details Training information
Personnel Inventory
9. Leave, absence information 10. Salary , allowances, benefits 11. Seniority 12. Increment date 13. Rewards and distinctions 14. Discipline , punishments 15. Career interests 16. Date for superannuation

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Nature & Scope of HRM

Nature & Scope of HRM

Nature & Scope of HRM

HRM & HRD

Differences Between Personnel Management & HRM

Differences Between Personnel Management & HRM

Organization Structure & HRM

Organization Structure & HRM

Organization Structure & HRM

Organization Structure & HRM

Factors Affecting HRP

Factors Affecting HRP

Factors Affecting HRP

Factors Affecting HRP

Requisites for Successful HRP

Requisites for Successful HRP

Recent Trends in HRP

Job Design Objectives

Process of Job Analysis

Job Analysis Information & Facts

Sources of Job Analysis Information

Characteristics of Good Job Description

Contents of Job Description

Benefits of Job Analysis

Benefits of Job Analysis

Job Evaluation Objectives

Job Evaluation Objectives

Job Evaluation Principles

Job Evaluation Procedure

Job Evaluation Procedure

Factors Affecting Recruitment Policy

Centralized & Decentralized Recruitment

Merits of Centralized Recruitment

Merits of Centralized Recruitment

Merits of Decentralized Recruitment

2. Retrenched / retired employees

Why Prefer Internal Sources?

Why Prefer Internal Sources?

Modern Sources of Recruitment

Factors Affecting Recruitment

Evaluation And Control

Significance of Selection Process

Decision making interview

Training and Development

Differences between Training & Development

Purpose Duration For whom

Benefits of Training to the Organization

Benefits of Training to the Organization

Benefits of Training to the Individual

Need for Training

Need for Training

Need for Training

Need for Training

TNA Training Needs Analysis

TNA Training Needs Analysis

TNA Training Needs Analysis

Job rotation Coaching Job instruction Step by step Committee assignments

On the Job Training Methods

On the Job Training Methods

On the Job Training Methods

On the Job Training Methods

Off the Job Training Methods