HRM 16th Sept

INTRODUCTION TO HRM/PM:-

Origins of personnel functions in India- personnel role today,

Characteristics of today's work force, job design, analysis &

Evolution of personnel planning, recruitment, induction, performance

Appraisal, employee training and development , job rotation &

Transfer promotion policies, career planning, compensation

Management, factors influencing wages, salaries, incentives, fringe

Benefits & their relevance personal philosophy trends in participation

Management personnel manual.

FUNCTIONS OF HRM

Managerial Function

Planning Organizing Directing Controlling

Operative Function

1. Employment• Job Analysis• HRP• Recruitment• Selection• Induction• placement

2. Human Resources

Development• Performance Appraisal• Training• Management Development• Career Planning& Development• Organizational change & Development

3. Compensation• Job Evaluation• Wage & Salary• Administration• Fringe Benefits

Operative Function

4. Human Relation 5. Effectiveness of HRM• Organizational Health• Human Resource Accounting, Auditing, Research

FUNCTIONS OF HRM

I) Managerial Functions

a) Planning

b) Organizing

c) Directing

d) Controlling

II) Operative Functions

1. Employment

a) Job Analysis

b) Human Resources Planning

c) Recruitment

d) Selection

e) Placement

f) Induction and Orientation

2. Human Resources Development

a) Performance Appraisal

b) Training

c) Management Development

d) Career Planning and Development

e) Organisation Development

3. Compensation

a) Job Evaluation

b) Wage and Salary Administration

c) Incentives

d) Bonus

e) Fringe Benefits

f) Social Security Measures

4. Human Relations

5. Effectiveness of Human Resources Management

HUMAN RESOURCES MANAGEMENT

DEFINITIONS

David A. Decenzo & sttephen P. Robbins: “A process consisting

of four functions-acquisition, development, motivation and

maintenance of human resources.”

Edward Flippo: “Personnel Management is the planning,

organizing, directing and Controlling of the procurement,

development, compensation, integration, maintenance and

Separation of human resources to the end that individual,

organizational and societal Objectives are accomplished.”

OBJECTIVES OF HUMAN RESOURCE MANAGEMENT

1. Industrial peace

2. Achieve High Productivity

3. Improve Quality of Working Life (QWL) of Employee

4. Obtain and Sustain Competitive Advantage through Empowerment

ROLE OF HUMAN RESOURCE MANAGER / CHALLENGES

FACED BY H.R.D. MANAGER

1) Enlarging the scope on personnel Management

2) Focus on Knowledge and Skill

3) Structure and Size of Enterprise

4) Globalization of Business

5) Managerial Skill in HRD

6) Number of Employees

7) Quality of Employees

8) Sustainable Competitive Advantage

9) Empowerment of Employees

10) Government Intervention

11) Social Orientation

12) Reservation Issues

13) Manpower Costs

14) Future Challenges

A) JOB ANALYSIS

DEFINITIONS

According to Edwin Flippo, “ Job analysis is the process of

studying and Collecting information relating to the operations

and responsibility Of a specific job.”

According to David A. Decenzo and Stephen P. Robbins. “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.”

COMPONENTS OF JOB ANALYSIS

1) Job Description

2) Job specification

1. JOB DESCRIPTION

MEANING

Job description is a statement describing the job and

Gives All necessary details of the job for which the recruitment

is to be made.

DEFINITION

According to Edwin Flippo, Job description is,” an organized

factual statement Of the duties and responsibilities of a specific job.

It should tell what is to be done, How it is done, and why.”

2. JOB SPECIFICATION

MEANING:

Job specification refers to a summary of the personal

characteristics required for performing the job in an acceptable

manner.

DEFINITION:

According to Edwin Flippo, job specification is “a statement

of minimum acceptable human qualities necessary to perform

a job properly.”

HRP

Recruitment & Selection

Training & Development

Job Evaluation

Remuneration

Performance Appraisal

Personnel Information

Safety & Health

JobAnalysis

Job Description

JobSpecification

USES OF JOB ANALYSIS

PROCESS OF JOB ANALYSIS

1) Collection Of Background Information

2) Selection Of Representative Position To Be Analyzed

3) Collection Of Job Analysis Data

4) Developing A Job Description

5) Developing A Job Specification

6) Developing Employee Specification

JOB DESCRIPTION & JOB SPECIFICATION IN JOB

ANALYSIS

JOB DESCRIPTION JOB SPECIFICATION

a) Job title a) Education

b) Location b) Experience

c) Job Summary c) Training

d) Duties d) Judgement

e) Machines, tools and e) Initiative

equipment

f) Materials & forms used f) Physical skills

g) Working conditions g) Responsibilities

h) Communication

Skills

TECHNIQUES OF JOB ANALYSIS

1. Interviews

2. Direct observations

3. Maintenance of long records

4. Questionnaires

5. Critical incident technique

(s. rao pg no. 85)

B) JOB DESIGN

MEANING:

Job design involves conscious efforts to Organized

tasks, duties and responsibilities into a unit of Work to achieve

certain objective.

DEFINITION:

According to Michael Armstrong, “Job design is the process

Of deciding on the contents of a job in terms of its duties &

Responsibilities, on the methods to be used in carrying out the job,

In terms of techniques, systems & procedures, & on the

Relationships that should exist between the jobholder & his superiors,

Subordinates & colleagues”.

STEPS IN JOB DESIGN

1) The specification of individual tasks

2) The specification of the method of performing

each tasks

3) The combination of tasks into specific jobs to be

assigned to individuals

FACTORS AFFECTING JOB DESIGN

I ORGANISATIONAL FACTORS

1) Characteristics of task

2) Work flow

3) Ergonomics

4) Work practices

II ENVIRONMENTAL FACTORS

1) Employee Abilities & Availability

2) Social & Cultural Expectations

III BEHAVIOURAL ELEMENTS

1) Feedback

2) Autonomy

3) Use of abilities

4) Variety

TECHNIQUES OF JOB DESIGN

1) Work / Job Simplification

2) Job Rotation

3) Job Enlargement

4) Job Enrichment

5) Autonomous / Self Directed Teams

6) High Performance Work Design

1) WORK / JOB SIMPLIFICATION:

Job simplification technique, the job is simplified

Or specialized. A given job is divided into small subparts and

Each part is assigned to one individual employee.

2) JOB ROTATION:

Job rotation involves moving employees from job to

job to add variety and reduce boredom by allowing them to

perform a variety of tasks.

3) JOB ENLARGEMENT :

Job enlargement refers to the expansion of the number of

different tasks performed by an employee in a single job.

4) JOB ENRICHMENT :

Job enrichment involves adding more motivators to a job

To make it more rewarding. Job becomes enriched when it gives

Job-holder more decision-making, planning and controlling

Powers.

According To Herzberg, An Enriched Job Has Following

Characteristics1) Direct Feedback

2) Client Relationship

3) New Learning

4) Scheduling Own Work

5) Unique Experience

6) Control Over Resources

7) Direct Communication Authority

8) Personal Accountability

STEPS INVOLVE IN JOB ENRICHMENT

1) Selecting the jobs

2) Identifying the changes

3) Changing the contents of a job

4) Training, guiding, developing and motivating employees

5) Integrating the newly enriched jobs into the daily work

routine of the organization

5) AUTONOMOUS / SELF-DIRECTED TEAMS:

A self directed work team is an intact group of employees

who are responsible for a ‘whole’ work process or segment that

delivers A product/service to an internal or external customer.

6) HIGH PERFORMANCE WORK DESIGN:

This technique acts as a means of improving performance

In an environment where positive and demanding goals are set. In

Many organizations, such high performance work design does not

Work efficiently.

PERSONNEL PLANNING / MANPOWER PLANNING

MEANING

Human Resource Planning is a strategy for the

a) Procurement, b) Development, c) Allocation, and d) Utilization

b) of an organization’s human resources.

Areas of Human Resource Planning

1) Forecasting

2) Acquiring

3) Developing

4) Maintaining

PERSONNEL / MANPOWER PLANNING

DEFINITION

Coleman has defined personnel/ manpower planning as “ the process of

Determining manpower requirements and the means for meeting those

Requirements in order to carry out the integrated plan of the

Organization”

Stainer defines manpower planning as “Strategy for the acquisition,

utilization, Improvement and preservation of an enterprise's human

resources. It Relates to establishing job specifications or the quantitative

requirements of jobs Determining the number of personnel required

and developing sources Of manpower.”

FEATURES OF PERSONNEL / MANPOWER PLANNING

1. Facilitates the control manpower cost

2. Facilitates recruitment of suitable manpower

3. Facilitates proper placement

4. Facilitates adjustment of vacancies

5. Promotes cordial industrial relations

6. Facilitates manpower development

OBJECTIVES OF PERSONNEL / MANPOWER PLANNING

1. Optimum use of human resources

2. Meeting future manpower needs

3. Scientific recruitment

4. Availability of manpower

5. Development of manpower

NEED OF PERSONNEL / MANPOWER PLANNING

1) To meet the manpower need of business enterprise

2) To arrange for the replacement of existing manpower

3) To meet growing manpower requirement due to expansion

4) To meet the challenges of changing technological

environment

5) To adjust staff requirements of departments

6) Recruitment and selection of employees

7) Placement of manpower

8) Training of manpower

ADVANTAGES OF PERSONNEL / MANPOWER PLANNING

1. Facilitates recruitment and selection

2. Raises effectiveness of HRD programmers

3. Ensures orderly working and growth of an organization

4. Regulates cost factor

5. Encouragement to the existing employees

6. Prevents sudden disruption

LIMITATIONS / PROBLEMS OF PERSONNEL / MANPOWER

PLANNING

1. Future manpower needs are uncertain

2. Surplus manpower makes HRP redundant

3. Time-consuming and costly

4. Inadequate attention to environmental changes

5. Shortage of skilled labour turnover

SCOPE OF PERSONNEL/MANPOWER PLANNING

1. Estimation of manpower requirements and recruitment

2. Manpower allocation

3. Manpower motivation

PROCESS OF PERSONNEL/MANPOWER PLANNING

1. Analyzing The Organizational Plans

2. Forecasting The Overall Human Resource Requirements

3. Supply Forecasting

4. Estimating The Net Human Resource Requirement

5. Action Plan For Redeployment, Redundancy/ Retrenchment

6. Forecast Future Supply From All The Sources

7. Action Plan For Recruitment, Development Etc.

8. Modify The Organizational Plan

9. Retention Plan

10.Evaluation And Control

FACTOR AFFECTING HRP

EXTERNAL FACTOR INTERNAL FACTOR

1) Government’s Policies 1) Policies and Strategies

2) Level of Economic Development 2) HR policy of the company

3) Business Environment 3) Formal & Informal Groups

4) Level of Technology 4) Job Analysis

5) Natural Factors 5) Time Horizons

6) International Factors 6) Type & Quality of Information

7) Internal Factors 7) Company's Productional

Operations policy

8) Trade Unions

RECRUITMENTDEFINITIONS

Recruitment is defined as," a process to discover the sources of

Manpower to meet the requirements of the staffing schedule and

to employ effective Measures for attracting that manpower in

adequate numbers to facilitate Effective selection of an efficient

workforce.

Edwin B. Flippo defined recruitment as “the process of searching

for Prospective employees and stimulating them to apply for

jobs in the organization.”

FACTOR AFFECTING RECRUITMENT

a) Image of Organization a) Demographic

Factors

b) Quality of work life b) Industrialization

c) Company’s size c) Labour Market

d) Company’s products d) Employment Rate

e) Role of Trade Unions

Internal Factor External Factor

SOURCES OF RECRUITMENT

INTERNAL RECRUITMENT

1) Present Permanent Employees

2) Present Temporary or Casual Employees

3) Retrenched or Retired Employees

4) Dependents of Deceased, Disabled , Retired and Present

Employees

External Sources

1) Campus Recruitment

2) Private Employment Agencies/ Consultants

3) Public Employment Exchanges

4) Professional Associations

5) Data Banks

6) Casual Applicants

7) Similar Organizations

8) Trade Unions

SELECTION

MEANING

Selection is the process of picking individuals (out of the pool

of job applicants) With requisite qualifications and competence

to fill jobs in the organization.

A formal definition of selection is it is the process of

differentiating Between applicants in order to identify

(and hire) those with a greater Likelihood of success in a job.

STEPS IN SCIENTIFIC SELECTION PROCESS

1) Job Analysis 8) Final Interview

2) Recruitment 9) Medical Examination

3) Application Form 10) Reference Checks

4) Written Examination 11) Line Manager’s Decision

5) Preliminary Interview 12) Employment

6) Business Games

7) Tests

INDUCTION

MEANING:

Induction is a systematic and planned introduction of employees

to their Jobs, their co-workers and the organization.

“Induction is the process of receiving and welcoming an employee

When he first joins a company and giving him the basic

information

He needs to settle down quickly and happily and start work.”

PLACEMENT

Placement refers to the allocation of people to jobs. It

Includes initial assignment of new employees, and

promotion, transfer or demotion of present employees.

HUMAN RESOURCE DEVELOMENTHRD is enabling the employees to acquire technical,

Managerial and behavioral skills and knowledge.

DEFINITION:

“HRD from the organizational point of view is a process in

which the employees of an organization are helped/motivated to

acquire and develop technical, managerial and behavioral knowledge,

skill and abilities and mould the values, belief and attitudes necessary

to perform Present and future roles by realizing the highest human

potential With a view to contribute positively to the organization.”

FEATURES OF HUMAN RESOURCE DEVELOPMENT

1) HRD is a systematic and planned approach

2) HRD is a continuous process

3) HRD develops the skills and knowledge.

4) It is multi-disciplinary

5) HRD is embodied with techniques and processes

NEEDS FOR HUMAN RESOURCE DEVELOPMENT

1) Change in economic polices

2) Changing job requirements

3) Need for multi-skilled human resources

4) Organizational viability and transformation process

5) Technological advances

6) Organizational complexity

7) Human relations

PERFORMANCE APPRAISALE

MEANING:

Performance appraisal is a systematic and orderly Evaluation of

performance of employees at work by their superiors.

DEFINITION

According to Dale Beach performance appraisal means “the

Systematic evaluation of the individual with respect to his

Performance on the job and his or her potential for

development.”

PERFORMANCE APPRAISAL PROCESS

1) Establishing performance standards

2) Communicating standards to employees

3) Measuring actual performance

4) Comparing actual performance with the standards set

5) Discussing actual performance with the employee

(Appraisal Interview)

6) Offering guidance for ;improving performance

(follow-up measures)

METHODS OF PERFORMANCE APPRAISAL

-Graphic Rating Scales

-Ranking Method

- Paried Comparison Method

- Forced Distribution Method

- Checklist Methods

A) Simple Checklist

B) Weighted Checklist

C) Critical Incident Method

-Essay Or Free Form Appraisal

-Group Appraisal

-Confidential Reports

-Behaviourally Anchored Rating-

Scales

- Assessment Centre

- Human Resource Accounting

- Management By Objectives

- Psychological Appraisals

BENEFITS OF PERFORMANCE

APPRAISAL

1. Suitable Placement

2. Assistance In Self-improvement

3. Incentive To Grow And Develop

4. Effective Training Programme

5. Introduction Of Sound Personnel Policies

6. Cordial Employer-employees Relations

7. Human Resource Planning And Development

8. Employee Communication

9. High Employee Morale

EMPLOYEE TRAINING

MEANING:

Training and development refer to the imparting of

Specific skills, abilities and knowledge to an employee.

Training and development need=

standard performance - actual performance

DEFINITION:

According to Edwin Flippo, “training is the

Act of increasing the knowledge and skill of an employee

For doing a particular job.”

INPUTS IN TRAINING AND DEVELOPMENT

1) Skills

2) Education

3) Development

4) Ethics

5) Attitudinal changes

6) Decisions making and problem solving skills

FACTORS PURPOSES• Technological Advancement T Improve productivity

• Organizational Complexity R Prevention of Obsolescence

• Job Requirements A Preparation for Higher-

• Human Relations I -level jobs

•Top Management Support N

I

N Improve Morale

G

TRAINING METHODS

ON-THE-JOB METHODS OFF-THE-JOB METHODS

- Job Rotation - Vestibule Training

- Coaching - Role Playing

- Job Instruction or - Lecture Methods

training Through - Conference & Discussion

step-by-step - Case study

-Committee Assignments - Programmed Instruction

-Apprentice training

TRAINING PROCEDURE/STEPS

1) Identifying training needs

2) Setting training objectives and policy

3) Designating training programme

4) Preparation of the learner

5) Presentation of operations and knowledge

6) Implementing training programme

7) Follow-up and evaluation

MANAGEMENT DEVELOPMENT

Management development is a systematic process of

growth and development by which the managers develop

their abilities to manage. It improve managerial skills and

knowledge to employees.

IMPORTANT STEPS IN MANAGEMENT DEVELOPMENT

PROCESS

1) Analysis of organizational present & development needs

2) Appraisal of present management talent

3) Inventory of management manpower

4) Planning of individual development programme

5) Establishment of development programme

6) Evaluation of the programme

IMPORTANT TECHNIQUES OF MANAGEMENT DEVELOPMENT

ON-THE JOB TECHNIQUE

-Coaching

- Job Rotation

- Under Study

- Multiple

Management

OFF-THE-JOB TECHNIQUES-The Case Method- Incident Method- Role Playing - In Basket Method- Business Game- Simulation- Grid Training- Conferences- Lecturers

CAREER PLANNING

According to Edwin Flippo, “A career is a sequence

of separate but related work activities that provide

continuity, order and meaning to a person’s life.”

Career Planning stands for the forward-looking

employment policies of the organization.

SCOPE OF ORGANISATION CAREER PLANNING

1) Human Resource Forecasting & planning

2) Career Information

3) Career Counseling

4) Career pathing

5) skill assessment training

6) succession planning

BENEFITS OF CAREER PLANNING PROGRAMME

1) Quality production & employee loyalty

2) Employee motivation

3) Linking of individual career goals with organizational goals

4) Facilitates managerial succession

5) Facilitates career success

6) Job satisfaction to employees

7) Reduces turnover and absenteeism

8) Understanding of career opportunities

9) Better image in the employment market

STEPS IN CAREER PLANNING

1) Analysis Of Personnel Situation

2) Projection Of Personnel Situation

3) Identifying Career Needs

4) Selection Of Priorities

5) Development Of Career Plans

6) Write Up Of Formulated Career Plans

7) Managerial Planning

8) Implementation

9) Review And Evaluation

10)Future Needs

IMPORTANT POINTS FOR EMPLOYEES CAREER

DEVELOPMENT

1) Identification Of Employees Needs And Aspirations

2) Analysis Of Career Opportunities & Supplying Information To

Employees

3) Career Counselling

4) Motivation Of Employees

5) Internal Publicity To Career Information

6) Making Career Planning A Continuous Activity

7) Providing Services Of Experts

8) Career Development Workshops

9) Continuing Education & Training

10) Periodic Job Changes

COMPENSATION MANAGEMENT

WAGE & SALARY ADMINISTRATION:

MEANING:

Wage And Salary Administration refers to the establishment

And implementation of sound policies and practices of Employee

compensation.

JOB EVALUATIONMEANING:

Job evaluating means determining the relative worth of a jobIn an organization by comparing it with other jobs within the organization and with job market outside.

DEFINITION:British Institute of Management defined job evaluation, “the

process of analyzing and assessing the content of jobs, within the organization, so that differential wages May be paid to jobs of different worth.”

According to Edwin B. Flippo, “Job evaluation is a systematic and orderly Process of determining the worth of a job in relation to other jobs”.

JOB EVALUTION

OBJECTIVES OF JOB EVALUATION

1) To gather data and information.

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.

4) To determine the ranks or grades of various jobs.

5) To ensure fair and equitable wages.

6) To minimize wage discrimination

PROCEDUCRE OF JOB EVALUATION

1) Analyze and prepare job description.

2) Select and prepare a job evaluation plan.

3) Classify jobs.

4) Install the programme.

5) Maintain the programme.

JOB EVALUATION METHODS/TECHNIQUES

I. NON-ANALYTICAL METHODS

1. Ranking method

2. Job-grading method

II.ANALYTICAL METHODS

1. Point-Ranking Method

2. Factor- Comparison Method

JOB ROTATION

MEANING

Job rotation implies systematic movement of employees from

One job to the other job.

BENEFITS OF JOB ROTATION

1) Raises intrinsic reward potential of job

2) Beneficial to the organization

3) Worker becomes competent in several jobs

4) Improves inter-departmental co-operation

5) Motivates employees

6) Remove monotony

7) Develops wide skills among workers

JOB TRANSFER

DEFINITION:

Yoder and associates have defined transfer as “a lateral

Shift causing movement of individuals from one position to another

Usually without involving any marked change in duties,

responsibilities, Skill needed or compensation.”

PURPOSES FOR JOB TRANSFERS

1) Variation in the volume of work

2) Providing training to employees

3) Rectification of poor placement

4) Satisfying personal needs of employees

5) Meeting mutual needs of employees

6) Meeting organizational needs

7) Solution to poor performance

8) Avoiding fatigue and monotony

9) Removing poor personal relations

10)Providing relief and to punish employees

TYPES OF TRANSFERS

1) Production Transfers

2) Replacement Transfers

3) Versatility Transfers

4) Shift Transfers

5) Remedial Transfers

PROCEDURE FOR TRANSFERS

1) Intra-departmental Transfers

2) Inter-departmental Transfers

PROMOTIONS

MEANING:

Promotion is an upward advancement of an employee in

An organization to another job, which commands better pay/wages,

Better status/ prestige, and higher opportunities / challenges,

Responsibility, and authority, better working environment, hours of

work and facilities, and a higher rank.

DEFINITION:

According to Edwin Flippo, “Promotion involves a change

From one job to another that is better in terms of status and

Responsibilities.

BENEFITS OF PROMOTINA. Benefits of Promotion to Employees:

1) Higher salary

2) Higher status

3) Incentive to work efficiently

4) Psychological satisfaction

5) Change in the nature of work

B. BENEFITS OF PROMOTION TO THE MANAGEMENT

1) Raise the morale of employees

2) It reduces the rate of labour turnover and absenteeism

3) Ensure orderly functioning of the organization

4) Creates a sense of loyalty

5) Develop cordial labour-management relations.

METHODS OF PROMOTION

A. Promotion by seniority

B. Promotion by merits

FACTOR INFLUENCING WAGE & SALARY STUCURE AND

ADMINISTRATION

1) The Organization's ability to pay

2) Supply and demand of labour

3) Prevailing market rate

4) The cost of living

5) Productivity

6) Trade union’s bargaining power

7) Job requirements

8) Managerial attitudes

9) Psychological and social factors

10)Skill levels available in the market

COMPENSATION (REMUNERATION)

Remuneration is the compensation an employee

receives in return for his or her contribution to the

organization.

employees standard of living, status in the society,

Motivation, loyalty, and productivity depend upon the

Remuneration.

COMPONENTS OF REMUNERATION

A.FINANCIAL BENEFITS

1)Wages and Salary

2)Incentives

3)Fringe benefits

4)Perquisites

B.NON-FINANCIAL BENEFITS

1)Challenging job

2)Responsibilities

3)Recognition, Growth prospects

4)Supervision

5)Working conditions

FACTOR INFLUENCING WAGE & SALARY STUCURE AND

ADMINISTRATION

A.EXTERNAL FACTORS

1) Labour Market

2) Cost of Living

3) Lobour Unions

4) Labour Laws

5) Society

6) The Economy

B. INTERNAL FACTORS

1) Business strategy

2) Job evaluation and performance appraisal

3) The employee

1) MINIMUM WAGE:

The wage which must provide not only for the bare

Sustenance of life, but for the preservation of the efficiency of

The worker. For this purpose, the minimum wage must

Provide for some measure of education, medical requirements

And amenities.

LIVING WAGE:

Living wage is one which should enable the earner to

provide for Himself and his family not only and bare essential of

food, clothing and shelter But a measure of frugal comfort,

including education for his children, Protection against ill-health,

requirements of essential social needs And a measure of insurance

against the more important misfortunes, including Old age.

FAIR WAGE:It is the wage which is above the minimum wage but Below

the living wage

TYPES OF WAGES

1) Time Rate:

under this system workers are paid according to the

Work done during a certain period of time, at the rate of so

Much per hour, per day, per week, per fortnight or per

Month or any other fixed period of time.

2) Piece Rate:

under this system, workers are paid according to the

Amount of work done or the number of units completed, the

Rate of each unit being settled in advance, irrespective of the

Time to complete a job.

ADVANTAGES OF INCENTIVE PAYMENTS

1)Motivation of employees

2)Financial benefit

3)Reduction in the cost of production

4)Increase in production capacity

5)Beneficial to employer

6)Better utilization of resources

LIMITATIONS OF INCENTIVE PAYMENTS

1)Possibility of quality deterioration

2)Labour cost may increase

3)Dissatisfaction among employees

4)Neglect of security rules

PREREQUISITES FOR AN EFFECTIVE INCENTIVE

SYSTEM

1)The co-operation of workers

2)The scheme must be based on scientific work measurement

3)Indirect workers should also be covered

4)There should be management commitment

5)There is greater need for planning

6)Reward should be clearly and closely linked to the efforts

7)The scheme should operate by means of a well-defined and easily

understood formula.

GROUP INCENTIVE PLAN

MEANING

In the group incentive plan, the entire group of

workers will have to work efficiently in a collective

manner and also share the benefit collectively.

ADVANTAGES OF GROUP INCENTIVES

1)Better co-operation among workers

2)Less supervision

3)Reduced incidence of absenteeism

4)Reduced clerical work

5)Shorter training time

DISADVATAGES OF GROUP INCENTIVES

1)An efficient worker may be penalized for the

inefficiency of the other members in the group

2)The incentive may not be strong enough to serve

its purpose.

3)Rivalry among the members of the group defeats

the very purpose of team work and cooperation.

FRINGE BENEFITS

The term fringe benefits refers to various extra

benefits provided to employees, in addition to the

compensation paid in the form of wages or salary.

Balcher defines fringe benefits as, “ any wage cost

not directly connected with the employees' production

effort, performance, Service or sacrifice.”

TYPES OF FRINGE BENEFITSI.Payment For Time Not Worked By The Employees

a)Holidays b) vacations c) leave with pay and allowances.

II.Contingent And Deferred Benefits:

a)Pension payment b) group life insurance benefit c) sick leave,

III.Legally Required Payments

a)Old age, disability and health insurance b) unemployment

compensation c) worker’s compensation

IV.Misc. Benefits:

a)Travel allowances b) company car and membership of clubs,

OBJECTIVES OF FRINGE BENEFITS

1)To create and improve sound industrial relations

2)To boost up employee morale

3)To motivate the employees by identifying and satisfying their

unsatisfied needs

4)To protect the health of the employees and to provide safety to

the employees against accidents

5)To provide qualitative work environment and work life

6)To create a sense of belongingness among employees and to

retain them

FACTORS INFLUENCING FRINGE BENEFITS

1)Organization financial ability to provide the benefits

2)Employees deficiencies or needs

3)The bargaining strength of trade unions

4)Employees significance to the organization

5)Tax benefits to the organization and individual

employees

6)Organization's awareness and policy towards social

responsibility

WORKERS’ PARTICIPATION IN

MANAGEMENT

The concept of workers’ participation in management

is considered as a mechanism where workers have a say in the

decision-making process of an enterprise.

The concept of workers’ participation in management

crystallizes the concept of industrial democracy, and indicates

an attempt on the part of an employer to build his employees

into a team which work towards the realization of a common

objective.

NEED OF PARTICIPATIVE MANAGEMENT

1)Giving higher status and psychological satisfaction to workers

2)Cordial labour-management relations

3)Creating uniform approach of employer and workers

4)Raising industrial production

5)Creating platform for direct negotiations

6)Creating responsible approach among workers

7)Removing grievances of workers

8)Raising employee morale

METHODS/WAYS/TECHNIQUES OF

PARTICIPATIVE

MANAGEMENT

1)Participation At The Board Level

2)Participation Through Ownership

3)Participation Through Complete Control

4)Participation Through Staff or Works Councils

5)Participation Through Joint Councils and Committees

6)Participation Through Collective Bargaining

8) Participation Through Job Enlargement and Job

Enrichment

9) Participation Through Suggestion Schemes

10)Participation Through Quality Circles

11)Empowered Teams

12)Total Quality Management

13)Financial Participation

PERSONNEL MANUAL

Personnel Policies

According to Edwin B. Flippo, “A policy is man-made

rule or Pre-determined course of action that is established to

guide the Performance of work toward the organization

objectives. It is a type of standing plan that serves to guide

subordinates in the execution of their tasks.”

PRINCIPLES OF PERSONNEL POLICIES

1)Principle of scientific selection

2)Principle of fair work environment

3)Principle of training

4)Principle of individual development

5)Principle of participation

6)Principle of fair remuneration

7)Principle of incentive

8)Principle of labour-management co-operation

PERSONNEL MANUAL

A document/ booklet which contains the details of

Personnel policies of an organization is called personnel

Policy manual/personnel manual.

It is a comprehensive document which serves as a guide to

or reference book to employees, managers and supervisors

BENEFITS OF PERSONNEL POLICY MANUAL

1)Gives clear explanation of existing policies

2)Useful tool in supervisory training

3)Document of company’s faith on fair personnel policies

4)Act as readymade guide to personnel policies and procedures

5)Training manual for supervisory staff

6)Avoids indecision on personnel matters

7)Avoids unfair employment practices

8)Acts as a communication device

PREPARATION OF PERSONNEL MANUAL

1)Taking firm decision to prepare policy manual

2)Giving suitable authority to in charge, personnel policy manual

3)Appointing to small committee for manual preparation

4)Interviewing supervisors for information collection

5)Preparing first draft of policy manual

6)Circulating first draft for review and recommendations

7)Final printing of manual

8)Periodical revision and updating of the manual

SEPARATIONS

Voluntary Involuntary1)Quits 1) Discharges2)Retirements 2) Layoffs

3) Retrenchment4) VRS5) Rightsizing

EMPLOYEE STOCK OWNERSHIP PLANS (ESOPs)

Under the Employee stock ownership plans,

employee are offered the company's shares at a

concessional price. When the market price of the shares

increases, the employees earn substantial capital gains

MERITS OF ESOPs

1)Enables a company to retain efficient employees

2)Linked compensation package closely to employees performance

3)Encourages the employees to work efficiently.

4)It develops a sense of ownership and responsibility.

DEMERITS OF ESOPs

1)Can be used only by profit making companies

2)Employees will suffer loss if the share prices are falling

3)Unsound stock market fluctuations cause inconvenience to

employees

4)Lack of transparency may lead to criticisms on the ground of

favoritism

HUMAN RESOURCE INFORMATION SYSTEM (HRIS)

HRIS is a systematic procedure for collecting, storing,

Maintaining and retrieving data needed by an organization about

Its human resources and various activities that are relevant for

their management.

360-Degree Feedback

The 360-degree technique is understood as

systematic collection of performance data on an individual

or group, derived from a number of stakeholders.

•Broad based and comprehensive

•Rating committees

•Self appraisal method

TYPES OF INCENTIVES

I.Earnings vary in the same proportion as output

a)Straight piece work

b)Standard hour

II.Earnings vary less proportionately than output

a)Halsey plan

b)Rowan plan

c)Barth scheme

d)Bedaux plan

DIFFERENCE BETWEEN HRM AND PM1)Meaning/Nature

2)Function

3)Evolution

4)Rules

5)Initiative

6)Speed of decision making

7)Motivation of people

8)Conflict handling

9)Training and development

10)Behavior norms (vipul 16)

IMPORTANT CHARACTERISTICS OF TODAY’S WORKFORCE

1)Composition of Workforce

2)Employment In Factories

3)Industrial Labor Growth

4)Roots In Villages

5)Limited Education

6)Absence of Unity

7)Labor Turnover Among Industrial Workforce

(vipul 22)

TECHNIQUES OF HR DEMAND FORECASTING1)Managerial Judgement

2)Regression analysis

3)Work-study techniques

4)Delphi technique

5)Flow models

6)Other forecasting techniques

(Aswathappa 83,84…)

TECHNIQUES OF HR DEMAND FORECASTING1)Existing Human Resources

2)Internal Sources of Supply

3)External Sources of Supply

(Aswathappa

83,84…)

INDUCTION METHODFormal Informal

Individual Collective

Serial Disjunctive

Investiture Divestiture

(Aswathappa 83,84…)

INDUCTION PROCESS1)Reporting for duty

2)Welcome the new employee

3)Introduction to the organization

4)Organizational head introduces to important employees

5)Departmental head introduces to all the employees

6)Supervisor concerned introduces to his co-workers

7)Providing information about the duties .

8)Supervisor clarifies the doubts of new employee about the work

(subba rao 151)

CONTRACTING AND SUB CONTACTING

(vipul 62,63…)

DEFINITION

According to the International Labor Organization (ILO), “

Industrial Relations deal with either the relationship between the

state and employees' and workers’ organizations or the relation

between the occupational organization themselves.”

IMPORTANCE

1)More production

2)Industrial peace

3)Encouragement to collective bargaining and labour

participation in management

4)Better treatment to workers

5)Prosperity to employer and employees

(subba rao)

TRADE UNION

Trade Unions are voluntary organizations of employees or

Employers formed to promote and protect their interests through

collective action. Though the terms employees and employers are

used, when we say trade unions they generally refer to employees.

PROBLEMS OF TRADE UNIONS

1)Outsider political Leadership

2)Small size of Unions

3)Low membership

4)Poor financial position

5)Inactive functioning

6)Victimization

7)Political and outside leadership (subba Rao)