HRM

HUMAN RESOURCE MANAGEMENT

UNIT - I : PERCEPTIVE IN HRM

Evolution of HRM – The importance of the human factor – objectives of HRM – Inclusive growth and affirmative action – Role of human resource manager.

Human resource polices – computer applications in human resource management – Human resource accounting & audit.

DEFINITION According to Edwin.B.Flipps “ HRM is the planning,

organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individuals, organizational and social objectives are accomplished ”.

“ HRM can be defined as a process of procuring, developing and maintaining competent human resource in the organisation so that the goals of an organization are achived in an effetive and efficient manner.

HRM is an art of managing people at work is such a manner that they give their best to the oraganisation for achieving its set goals.

OBJECTIVES :

1. To help the organization to attain its goals effectively and efficiently by providing competent and motivated employees.

2. To utilize the available human resources effectively.

3. To increase to the fullest the employees job satisfaction and self actualization.

4. To develop and maintains quality of work life (QWL) which makes employment in the organization a desirable personal and social situation.

5. To help in maintain ethical policies and behavior inside and outside the organization.

6. To establish and maintain cordial relations between employees and management.

7. To reconcile individual / group goals with organizational goals.

HRM Objective & Supporting Function

Social Objective

Legal ComplianceBenefits

Union_Mgt relations

Individual / Personal Objectives.

Training & developmentCompensation

Assessment

Organizational Objective

HR PlanningEmployee relation

SelectionTraining & development

Functional Objectives.

Appraisal Placement

Assessment

Nature and Scope Of HRM1. HRM is a Complex Dynamics.

A close observation of employees reveals its complex nature dealing with economic physiological, psychological, socio-logical & ethical beings.

2. HRM is a Social System. Management tasks, dealing with human

relationship, moulding & developing the human behaviour and attitude towards job & orgn requirement.HR manager involves himself in administering a social system. In this process the manager has to see that the economic satisfaction for a resonable livelyhood, social satisfaction of working together as members of a group & individual job satisfaction of a worker and attained

3. HRM is a Challenging Task:

The HR manager plays a crucial role in understanding the changing needs of the organization and society. Further he faces some challenging tasks in attaining the employee, organizational and social objective with the available resources.

HR manager should equip himself with good knowledge of disciplines economics, commerce management, sociology, psychology, engineering & technology & laws.

Scope Of HRM

Control

Human resource auditHR Accounting HR Information

System.

Acquisition

HR PlanningRecruitment

SelectionPlacement

Maintenance

RemunerationMotivation

Health & SafetySocial Security

Industrial relationPerformance approvals

Development

TrainingCareer development Org. DevelopmentInternal Mobility

HRM

The scope of HRM is indeed very vast & wide. It includes all activities staring from manpower planning till employees leaves the organization. Accordingly, the scope of HRM consist of acquisition, development, maintenance retention & control of human resources in the organization.

The National Institute of Personal Management – Calcutta has specified the Scope of HRM as follows.

1. The Labour (or) Personnel Aspect : This is concerned with manpower planning, recruitment, selection, placement, transfer, promotion, training and development, lay-off and retrenchment, remuneration, incentives, production etc.

2. Welfare Aspect : It deals with working conditions and amenities such as canteen, crèches rest and lunch room, housing, transport, medical assistance, education, health and safety, recreation facilities etc.

3. Industrial Relations Aspects : This covers union – management relations joint consultation, collective bargaining, grievance and disciplinary actions, settlements of disputes etc

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

MANAGERIAL FUNCTION OPERATIVE FUNCTION

PROCUREMENT

DEVELOPMENT

COMPENSATION

INTERGISTION MAINTANCE

PLANING

ORGANISING

STAFFING

DIRECTING

CONTROLLING

JOB ANALYSISHR PLANNINGRECUIRIMENTSELECTIONPLACEMENTINDUCTIONTRANSFERPROMOTIONSEPERATION

PERFORMANCEAPPRAISALTRANNINGEXECUTIVEDEVELOPMENTCAREER PLANNING & DEVELOPMENT

JOB EVALUVATIONWAGES & SALARY ADMINISTRATIONBONOUS & INCENTIVESPAYROLL

MOTIVATIONJOB SATISFACTIONGRIEVANCE REDRESSAL.COLLECTIVE BARGAINING CONFLICT MANAGEMENTPARTICIPATION OF EMPLOYEESDISCIPLINE

HEALTHSAFETYSOCIAL SECURITYWELFARE SCHEMESPERSONNEL RECORDSPERSONNEL RESEARCHPERSONNELAUDIT

The functions of HRM can be broadly classified into 1) Managerial functions and 2) Operative function.1. Managerial function : -

Planning : - is a predetermined course of actions. It is a process of determining the organization goals and formulation of policies & programs for achieving them.Forecasting:- is one of the elements of planning process.Organizing : - is a process by which the structure & allocation of jobs are determined.Staffing : - is a process by which mangers select, train, promote & retire their subordinates.Directing & Heading : - is a process of activating group efforts to achieve the desired goals.Controlling : - is the process of setting standards for performance, checking to see how actual performance compares with these set standards, and taking corrective actions as needed

2. Operative function : - also called service functions are those which are relevant to specific department.Procurement : - It involves procuring the right kind of people in appropriate number to be placed in the organization.Development:- This function involves activities meant to improve the knowledge, skills, aptitudes & values of employees so as to enable them to perform their jobs in a better manner in future.Compensation : - function involves determination of wages & salaries matching with contribution made by employees to organizational goals

Maintenance: - It is concerned with protecting & promoting employees while at work.

ROLE OF HRM

ROLE :The behavioural paterns expected by a manager within an organisation or a unit.

THE ROLE OF THE PERSONNEL MANAGER

MAIN ROLE1. The Conscience role.

2. The Counselor.

3. The Mediator.

4. The Spokesman.

5. The Problem Solver.

6. The Change Agent.

HR ROLE WELFARE ROLE CLERICAL ROLE

LEGAL ROLL

ADVISERY ADVISING MANAGEMENT OF EFFECTIVE USE OF HR RESOURCES.

1. RESEARCH IN PERSONNEL & ORGANIZATIONAL PROBLEMS.

1. TIME KEEPING.

1. GRIEVANCE HANDLING

MANPOWER PLANNING RERUITMENT SELECTION

2. MANAGING SERVIES, CANTEENS, GRAIN SHOP, TRANSPORT COOPERTIVES ETC.

2. SALARY & WAGES,ADMINISTARTION INCENTIVES.

2. SETTLEMENTS OF DISPUTES

TRAINING & DEVELPOMENT OF LINE MAN

3. GROUP DYNAMICS GROUP COUNSELLING, MOTIVATION, LEADERSHIP, COMMUNICATION etc.

3. MAINTANCE OF RECORD.

3. HANDLING DISCIPLINARY ACTIONS.

MEASUREMENT OF ASSESSMENT OF INDIVIDUAL & GROUP BEHAVIOUR

4. HUMAN ENGINEERING – MAN-MACHINE RELATIONSHIP.

4. COLLECTIVE BARGAINING.

5. JOINT CONSULTATIONS.

Qualities of a Manager :In order to succeed in Managing ,a Manager should

possess the following qualities:

1.Education 7.Technical knowledge 2.Training 8.Human relations attitude 3.Intelligence 9.Self-confidence.4.Leadership 5.Foresight6.Maturity

QUALITIES OF A HR MANAGER

1. Personal Attributes. Intelligence.

Educational Skills.

Discriminating Skills –b/w wrong / merit/ demerit.

Executing Skills.

Experience & Training.

2. Professional Attitudes.3. Qualifications: - MHRM, MA CIIR& PM , PGDPM.

Every manager is concerned with

1.Management of ideas - implies use of conceptualskills.

-distinct and scientific process.-Planning phase of management -creativity and innovation.

2.Management of things( non- human resources):

-Deals with the design of production system and acquisition, allocation and conversion of physical resources to achieve certain goals.

3.Management of people :

-is concerned with the procurement , development, maintenance and integration of human resources in the organisation.

• Conceptual skills;Ability to see the organisation as a whole to

recognise inter-relationships among different functions of the business and external force to guide.

Conceptual skills are used for abstract thinking and concept development involved in planning and strategy formulation

Human skill:Ability to work with , understand and motivate

other persons.

Technical skill:Ability to use the procedure , techniques and

knowledge of specialised field.

Careers in HRM:

Supervisors / Officer Level

Junior Management Level Jobs.

Middle Management Level Jobs.

Senior Management Level.

General Management Level / CEO /President Of The Company

EVOLUTION AND DEVELOPMENT1. Trade Union Movement Era.

2. Social Responsibility Era.

3. Scientific Management Era.

4. Human Relation Era.

5. Behavioral Science Era.

6. Systems Approach Era,

HRM MODELS

The Fomburn,Tichy and Devanna Model

The Harvard Model:Beer. Etal.

The Guest Model

The Warwick Model

THE FOMBRUN MODEL OF HRM

Human ResourceDevelopment

Appraisal

Rewards

Organisational EffectivenessSelection

THE HARVARD MODEL OF HRMStakeholder Interests

• Shareholders• Management

• Employee groups• Government• Community

• unions

Situational factors• Workforce characteristics• Business

strategy&philosophy• Labour market

• Unions• Task technology

• Laws and societal

values

HRM policy choices

• Employee influence

• Human resource

flow• Reward

system• Work systems

Human resource

outcomesCommitmentCompetenceCongruence

Cost effectiveness

Long term consequenc

e• Individual

well being• Organisati

o-naleffectivenes• Societal well being

THE GUEST MODEL OF HRM

HRM Strate-

gies

HRM practices• Hiring

• Training• Appraisal• Compens

ati-on• relation

HR outcomes• Commit

-ment• Quality• flexibilit

y

Behaviou-ral

outcomes• Motivat

io-n• Cooper

ati-on• Organis

-ational citizens

hip

Performance outcomes• Positive

• Productivit-y

• Innovation

• Quality• Negative

• Low Productiv

ity• Absenteei

s-m• turnover

Financial outcomes• Profits

• ROI

THE WARWICK MODEL OF HRMOuter context

Socio economicTechnical

Political-legalcompetitive

Inner contextCulture

StructurePolitics/leadership

Task technologyBusiness outputsBusiness

strategy content

ObjectivesProduct marketStrategy&tactis

HRM contentHRflows

Work systemReward systems

Employee relations

HRM contextRole

DefinitionOrganisationHR outputs

Human Resource Accounting

“Human resource accounting is the measurement of cost and value of the people for the organisation.”

Flamholtz“Human resource accounting is the measurement and

quantification of human organisational inputs such as recruiting,training experience and commitment”

Stephen Knauf

Features of HR Accounting:1. System of identification of HR2. Investments made in HR are recorded.3. Measurement of cost and value of HR.4. Records the changes occurring in HR.5. Information generated about HR is

communicated through financial statements to the parties.

6. HRA is a part of MIS.

OBJECTIVES:1.To furnish cost value information for making

management decision and maintaining human resources in order to attain cost effective organisational objectives.

2.To allow management personnel to monitor effectively the use of human resources.

3.To aid in the development of Mgt principles by classifying the financial consequences of various practices.

4.To develop methods of measuring HR cost and value.5.To test the valuation of HR varies in proportion

with their contribution to the organisation.

METHODS1.MONETARY MEASUREMENT

Historical cost opportunity costEconomic valuation Replacement costCapitalization of salary

2.NON-MONETARY MEASUREMENTskills inventoryperformance evaluationattitude measurementassessment of potential

ADVANTAGES 1.Improvement in internal management

decision.2.Motivation of employees for production

purposes.3.Saving of time in meeting of the executive.4.Indicator of the health of the enterprise.5.Impact on investors decisions.6.Decision about further requirement7.Assistance in planning.

Disadvantages

1.non-availability of standards 2.opposition of trade union3.Expenditure on HRA4.Variety of methods

COMPUTER APPLICATION IN HRME-Human resource management.E-Business / NEURAL NETWORKS.E- Job design & Job Analysis.E-Human Resource Planning.E-Recruitment.E- Selection.E- Performance Management.E- Training & Development.E- Compensation Management.E- HR Records.E- HR Information.E- HR- Audit.

HUMAN RESOURCE AUDIT

Audit is an examination and verification of accounts and records.

Hr audit refers to an examination and evaluation of policies, procedures and practices to determine the effectiveness and efficiency of HRM.

AREAS OF HR AUDIT

Include :

1. Mission statement relating to HR management.2. Objectives, goals & strategies of HR management.3. Accomplishment of HR management.4. Programmes of HRM including the detailed practices

& procedures.5. HRM Policies.6. Role of HRM in TQM.

OBJECTIVES OF HR AUDITS

1. To review the whole system of management programmes'.

2. To seek explanations & information's.

3. To evaluate the implemented policies.

4. To evaluate the personnel staff & employees.

NEED FOR HR AUDIT

1. The No: of Employees.

2. Organisational Structure.

3. Communication & Feedback,

4. Location and Dispensing.

5. Status of an Industrial Relation Manager.

6. Administrative Style.

Types of audit

• Internal audit• External audit

HR Audit Process

• Pre audit information• Pre-audit self assessment• On site review• Record review• Audit report

Benefits

1.Fostering strategic business plan2.Clarity of role of HR function3.Organisational competency analysis4.Hr system analysis5.Changes in the styles of top mgt6.ROI analysis7.Performance improvement mechanism.

HR POLICIESA Policy is a Plan Of Action.According to Brewster & Richbell defined HRM policies as “ a set of proposals and actions that act as a reference point for managers in their dealing with employees.HR policies constitute guides to action & guides the course of action intended to accomplish personnel objectives.Eg: HRM policy in Indian railways'.One of the personnel objectives of Indian Railways is to provide equal employment opportunities to the people of minority sections.Personnel policy of Indian railways relating to be above objectives is to fill 15% &7.5% of vacancies from those candidates belonging to scheduled castes and scheduled tribes respectively

CHARACTERISTICS OF HRP

1.Related to objectives 2.Easy to understand3.Precise4.Based on facts5.Review

Objectives of HR policies

1.maximum use of human resource2.Personnel development3.Sound Industrial Relation4. Proper recognition of work force and

protection of their prestige.5.Safeguarding the interests of labour and

management.

Need of HR policies

1.To achieve the objectives of the organisation.2.To achieve uniformity in decision.3.To delegate authority.4.To achieve better control.5.Evaluate efficiency.6.To motivate and create confidence among

employees.7.To guide the management.

Scope of HR policies

1.Recriutment /hiring of employees.2.Formulating terms and conditions of

employment.3.Manpower planning and development.4. Industrial relations.5.Communication with employees.

Types of HR policies

1.originated policies2.Appealed policies3.Imposed policies4.General policies5.Specific policies6.written/implied policies

Factors affecting Hr Policies

1.Laws of the country/social values and customes

2.Management philosophy3.Financial position of the organisation4.Union objectives and practices5.Type of workforce6.Stages of development

UNIT:II-HUMAN RESOURCE PLANNING

“Human resource planning is the process by which an organisation ensures that it has the right number and the kind of people ,at the right time, capable of effectively and efficiently completing those task that will help the organisation achieve its over all objectives.”

Decenzo and Robbins

According to Bruce. P.Coleman-

“Man power planning is the process of determining manpower requirements in order to carry out the integrated plan of the organisation.”

Need/Reasons for increasing focus on human resource planning:

1.Employment –growing unemployment situation.

2.Technological changes.3.Organisational changes.4.Demographic changes.5.Skill shortages6.Governmental influences 7.Legislative controls

8.Rise in employee turnover.9.To meet the needs of expansion and

diversification programmes of organissation.10.To identify area of surplus personnel area in

which there is a shortage of personnel.

Scope of HRP:1. Listing of current manpower/HR with the

organisation.2. Assessing the extent to which the current

manpower is utilised to the advantage of the organisation.

3. Phasing out the surplus manpower ,if any.4. Analysing the requirements of manpower in

future in the lights of expansion plans , retirement of personnel etc.

5.Making manpower procurement plans.

6.Designing training programmes for different categories of manpower.

HRP activities:Forecasting

InventoringAnticipating man power problems

Planning

Importance of HRP

1. Forecasting HR requirements .2. Checks the corporate plan of the

organisation , and makes effective management of changes.

ie.market conditionstechnology /productgovt regulationallocation of skills to persons.

3.Helps to improve overall business planning process.

4.Effective utilization of Human resources.5.Helps in filling the gaps.6.Facilitates economic development.7. It serves as a tool to evaluate the effect of

alternative manpower action and policies.

Objectives1. To ensure adequate supply of manpower

as and when required .2. To ensure proper use of existing human

resources in the organisation.3. To forecast future requirements of human

resources with different levels of skills.4. To assess surplus or shortage , if any of hr

available over a specified period of time.5. To anticipate the impact of technology on

jobs and requirements for human resources.

6.To control the human resources already deployed in the organisation.

7.To provide lead time available to select and train the required additional human resources over a specified time period.

8.To estimate the cost of Human resources.9.To maintain industrial relations.10.To obtain a good business environment.

Levels of human resource management

HRP is useful at different levels

1.At the national level:HRP by government at the national level covers• Population projections• Programme of economic development• Educational and health facilities• Occupational distribution and growth• Mobility of personnel across industries and

geographical region.

2.At the sector level:This would cover manpower requirements of

the • agricultural sector• Industrial sector• Service sector

3. At the industry level:This would forecast man power need for

specific industries , such as• Engineering• Heavy industires• Textile industries• Plantations industries 4.At the level of industrial unit:It relates to the manpower needs of a

particular enterprise.

FACTORS AFFECTING HRPEXTERNAL INTERNAL

• Government policies . strategies of the company• Level of economic . HR Policy of the company development including . formal and informal groups

future supply of HRS . job analysis• Business envt . time horizons• Information technology . type and quality of • Level of technology information .• International factors . companys production

operations policy. trade unions

Process of HRP

Objectives of human resource planningInventory of human resources skills(finding gaps) Demand and supply forecastingDetermine net manpower requirementsRedeployment and redundancy planEmployment programTraining and development programAppraisal of human resource planning

Problems in HRP:1.Lack of understanding of rationale of planning.2.Insufficient top management’s support.3.Insufficient initial efforts.4.Lack of coordination with other functions.5.Lack of integration with organisational plans.6.non-cooperation of operating managers.7.Expensive and time consuming.8.Resistance by employers and employees.9.uncertainties.10.Inadequacies of information system.

How to make HRP effective?Following are some of the steps that may

improve the effectiveness of HRP:1. HR plans must be viewed as an integral part

of corporate planning.HR plans should be tailored with the

objectives, strategies and overall environment of the particular organisation.

2. The support and commitment of the top management be ensured before starting the process of hrp planning.

3. Personnel records must be complete, up-to-date and reality available to ensure an adequate and strong date base serves as backbone for HRP.

4.The time horizon of the HRP should be appropriate to accommodate the changing needs and circumstances of the particular organisation.

5.Both quantitative and qualitative aspects of HR plans should be stressed in a balanced manner inorder to avoid conflicts between the two.

Forecasting for human resources requirement.

The demand for HR in organisation is subject to vary from time to time, depending upon both external and internal factors.

INTERNAL FACTORS: EXTERNAL

• Growth and expansion 1.Competition• Design and structure changes 2.economic &• Management philosophy political climate• Change in leadership style 3.technological • Employees resignation changes.• Retirement 4.government• Termination• deathTherefore while forecating future demand for

human resources in the organisation, these factors need to be taken into consideration.

Purpose of forecasting HR needs:Forecasting demand for human resources is good for

several reasons, because it can help:1. To Quantify the number of jobs required at given

time for producing a given number of goods (or) offering a given amount of services.

2. To Ascertain a staff-mix needed at different points time in the future.

3. To Ensure adequate availability of people with varying qualification and skills as and when required in the organisation.

The various techniques employed in HR forecasting are as follows :

Management judgementWork- study method Ratio – trend analysisDelphi technique Flow models Mathematical modelsComputerized forecast

1.Management judgement:This technique is very simple and time saving.Under this technique either a “bottom-up” or a “top-

down” approach is employed for forecasting future HR requirement of an organisation.

In case of bottom- up approach, the line managers prepare departmental requirements for HR and submit it to the top manager for their review and consideration.

In case of top-down approach the top managers prepare the departmental forecasts which are reviewed with the departmental heads .

It is suitable for small firms .

2. Work- study method: This method can be used when it is possible to

measure work and set standards and where job method do not change frequently.

In this method , as used by F.W. Taylor in his scientific management, time and motion study are used to ascertain standard time for doing a standard work.

Based on this,the number of workers required to do standard work is worked out.

3. Ratio-trend analysis:This is one of the quickest forecasting

technique.Under this method forecasting for future HR

requirement is made on the basis of time series data.This technique involves studying past ratio(eg: total

out-put/no:of workers , total sales volume /number of sales persons)and based on these forecasting is made for future ratios.

While calculating future ratios, allowances can be made for expected changes in the organisation, methods and job.

The demand for HR is calculated on the basis of established ratios between two variables.

4. Delphi technique:This is one of the judgemental methods of

forecasting HR needs.It is a more complex and time –consuming

technique which does not allow group members to meet face-to-face .

Therefore ,it does not require the physical presence of the group members.

5. Flow model: Is the simplest one and called as the Markov

model.This model involves the following:1.Determination of time period that will be covered

under forecast.2.Establishment of employee’s categories,also called

states.There should not be overlapping among the various categories.

3.Enumeration of annual flow among various categories or states for several time periods.

4.Estimation of probability of flow or movements from one category to another based on past trends in this regards.

6. Mathematical model: Mathematical model express relationship

between independent variable (production /sales) and dependent variable.(no: of workers required).

7. Computerized forecast:Is the determination of future staff needs by

projecting a firms sales, volume production and personnel required to maintain this required volume of output, using computers and software packages.

Supply Forecasting

• Supply Forecasting measures the number of people likely to be available from within and outside an organisation.

Sources of supplyInternal External*staffing tables /manning charts. *colleges/universities*Markov analysis *Skill inventories*replacement and succession planning

Markov analysisIt shows the percentage of employees who

remains in each job from one year to the next ,as also the proportion of those who are

promoted or transferred or who exit the organisation .

This movement of employee among different job classifcations can be forecasted based upon past movement patterns.

Past patterns of employee movement (transitions)are used to project future patterns.

• Markov analysis can be used to forecast employee movement pattern that may occur among

organisational units, between oragnisational levels,etc.

• The pattern of employee movements through various jobs is used to establish transitional probabilities and to develop a transition matrix.

• The transitional probabilities indicate what will happen to the initial staffing levels in each job category or the probability that employees from one category will move into another job category.

Transitional probabilities also determine the forecasted employee levels at the end of the year.

Transition matrix is used to forecast employment changes in future .This matrix can be used to forecast both demand and supply of labour.

For a Markov analysis to succeed, there should be enough employees in each job category , the nature of jobs should not have changed over time, and the situation should be stable.

RECRUITMENT

• “A process of locating , identifying and attracting capable applicants.”

• A process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organisation.”

Factors affecting recruitment

Internal factors External factorsSize of the organisation Demographic factors

Recruiting policy labour market

Image of organisation unemploymentsituation

Image of job labourlaws

legalconsiderations

Sources of recruitment

Internal sources External sources

Present employees Employment exchange

Employee referrals AdvertisementsFormerEmployees Employment

AgenciesPrevious Applicants Professional

associationCampus recruitmentDeputationWords-of-mouthJobfaircyberspace recruiting

Recruitment process

1.Recruitment planning2.Stategy development3.Searching4.Screening5.Evaluation and control

Recruitment process

Personnelplanning

Jobvacancies

Job analysis

RecruitmentPlanningNumbers

types

Employeerequistion

Searchingactivation

Applicantpool

Potentialhires

Evaluation and

controlStrategy

Development-where-how

-when

Applicantpopulation

screening

Method of recruitment

1.Direct method2.Indirect method3.Third party method

Effectiveness of recruitment programme:

1.A well –defined recruitment policy.2.A proper organisational structure.3.A well-laid down procedure for locating potential job

seekers.4.A suitable method and technique for tapping and

utilizing these candidates.5.A continuous assessment of effectiveness of recruitment programme and incorporation of

suitable modifactions from time to time to improve the effectiveness of the programme.

6.An ethically sound and fool-proof practice telling an applicant all about the job and its position, the firm to enable the candidate to judiciously decide whether or not to apply and join the firm , if selected.

SELECTION

• “Selection is the process of choosing from among the candidates from within the organisation or from the outside,the most suitable person for the current position or for the future position”

knootz

Selection methods 1.Preliminary interview2.Application blank3.Selection tests4.Selection interview5.Reference checks6.Medical examination /physical examination7.Final selection.

Preliminary interview:The purpose of the Preliminary interview is to eliminate unsuitable or unqualified candidates form the selection process.

It is also called courtesy interview.Application blank: is the commonest device for

getting information from a prospective candidate.

This serves as a personal record of the candidate bearing personal history profile, detailed personal activities, skills and accomplishments.

Selection test :To select right person for the job,

individual differences in terms of abilities and skills need to be measured for comparision. This is done through a process called selection test.

Tests:“A test is a systematic procedure for comparing the behavior of two or more persons.”

Selection Tests

Ability tests Personality tests

Aptitude test Interest testAchievement test Personality testIntelligence test Projective testJudgment test Attitude test

ABILITY TESTS:Aptitude Test:

It measure the ability and skills of the persons. It indicates how well a person would be able to perform after training.

It is also used to predict the future ability and performance of a person

Achievement Test:It is used to measure a person’s potential in a

given area or job. They are usually used for admission to specific courses in an academic institution.

It is also known as proficiency test or performance test or occupation or trade test.

Intelligence Test:

It measures general ability for intellectual performance and intelligence quotient of a candidate.

The core concept underlying in intelligence test is mental age. It is presumed that with physical age intelligence also grow.

Mental AgeIQ= *100

Actual Age

Judgment Test:This test are designed to know the ability

to apply knowledge in solving a problem.

PERSONALITY TESTS:These are tests used for measuring the interest and motivation of the people.

Interest Test: It is designed to identify person’s area of

interest and kind of work that will satisfy him.

Personality test:These test are designed to measure the

dimensions and traits of personality. Some of the personality tests are

• Minnesota Multiphasic Personality Inventory (MMPI),

• California Personality InventoryProjective Test:

Candidates are asked to project their own interpretation of certain standard stimulus situation basing on ambiguous pictures ,figures etc.

E.g. TAT) Thematic Appreciation Test. (RBT) Rorschach Blot Test.

Attitude Test:It measures the attitude , tendencies towards favoring, situation and action of a person. Test of social desirability, authoritarianism, employee morale are well known examples of attitude test.

Other test:• Graphology, • Polygraph test.

Advantages of testing:1. Predict future performance.2. Diagnosis the situation and behavior.3. Serves as a unbiased tool.4. Quantify the test results.Validation of test:

Validity is the most important criteria for the quality of a test. It is vital for a test to be valid in order for the results to be accurately applied and interpreted.

Interview:Interview is a face to face interaction, a

powerful exchange of ideas, answering of questions and communication between two or more persons.

Objectives:1. Judgment of applicant2. Additional information

TYPES OF INTERVIEW:Preliminary interview:

The interviews conducted to screen the applicants to decide whether further detailed will be required are called preliminary interview.

Patterned/ Structured/ Formal Interview:In this type of interview all the formalities,

procedures like fixing the value, time, panel of interviewers, opening and closing, intimating the candidates officially etc are strictly followed in arranging and conducting the interview.

Depth Interview:In this interview the candidates would

be extensively in core area of job skills and knowledge. Experts test the candidates knowledge in depth. Depth interviews are conducted for specialist jobs.

Stress Interview:This interview aims at testing the

candidate’s job behavior and level of withstanding during the period of stress and strain.

Other Interviews are:Group Discussion interviewPanel interviewInformal/ unstructured interviewDecision making interview.

Reference checks:The process of verifying information and obtaining additional feedback on an application.

Medical Examination:It is have proper matching of job requirement with the physical abilities of the candidate.

Final Selection:the candidates who have cleared all the above hurdles are finally selected and a letter of job offer is issued to them.

PLACEMENT

Placement is understood as assigning jobs to the selected candidates.

“the determination of the job to which an accepted candidate is to be assigned, and his assignment to that job.”

» Pigors and Myers

The importance of placement lies in the fact that, *a proper placement of employees reduces employees turnover,absenteeism,accidents

and dissatisfaction,on the other hand, and improves their morale,on the other.

Induction

Induction

• “Induction is the process of receiving and welcoming an employee when he first joins a company and giving him basic information he needs to settle down quickly and happily and start work”

Michael Armstrong

Obiectives of inductionObiectives of induction:1.To reduce the initial anxiety all new entrants feel when they

join a new job in a new organisation.2. To familiarize the new employees with the job, people ,

work-place ,work environment and the organisation.3.To facilitate outsider –insider transition in an intergrated

manner.4.To reduce exploitation by the unscrupulous co-workers.5.To reduce the cultural shock faced in the new organisation.

Benefits of induction programme 1. A well –designed induction programme reduces

anxiety, nervousness,absenteesim and employee turnover.

2. Induction helps minimize the reality or cultural shock new employees undergo on joining a new organisation.

3. Effective induction also helps integrate the new employees into the organisation and fosters feeling of belongingness to new organisation.

4. Induction also binds the newcomer and the present employees in a team.

The induction programme may be formal and informal.Informal-unplanned induction programme.

*supervisory system-The immediate job supervisor conducts the induction

programme for the new entrants.*buddy or sponsor system-

The immediate supervisor assigns the responsibility of induction of the new entrant to an old employee.

Formal-planned programme –HR specialists

PHASES OF INDUCTIONA carefully designed induction programme

consists of the following three phases:

1.General induction2.Specific induction3.Follow-up induction

Socialisation

Socialisation is the process of adaptation.

• Socialisation is the process of adaptationthat takes place as individuals attempt to learn

the values and norms of work roles.Socialisation is the process of adaptation.

Feldoman

“acquisition of work skills and abilities , adoption of appropriate role behaviour and adjustment to the norms and values of the work group.”

Phases of socialisation process1.Pre –arrival :Refers to all the learning that occurs before a

new member joins the organisation.

2.Encounter :The new member enters the organisation and role playing starts here.The member starts comparing expectations the image of the organisation which he had formed during pre-arrival phase with reality.

3.Metamorphosis : The member- masters the Skills required to adjust with the organisation’s norms and values. This is a stage going through changes.hence ,this is called metamorphosis stage.

Contents of socialization:

*Preliminary Learning.*Learning about the organisation.*Learning to function in the work group.*Learning how to perform the job.*Personal Learning.

Benefits:1. Helps in understanding organisation

culture.2. Contributes to employee’s long-term

success.3. Helps in adjustment4. Helps in employee engagement.5. Provides job satisfaction.

Unit: IIITRAINING AND EXECUTIVE DEVELOPMENTTypes of training methods, purpose, benefits

resistance,executive development programmes , common practices, benefits self –development, knowledge management.

“Training is the act of increasing the knowledge and skills of an employee for doing a particular job”

Edwin B.Flippo“Training is the systematic modification of

behaviour through learning which occurs as a result of education,instruction ,development and planned experience”

Need for training:Specifically , the need for training arises due to the

following reasons:1. To match the employee specifications with the

job-requirements and organisational needs.2. Organisational viability and the transformation

process.3. Technological advances4. Organisational complexity5. Human relations6. Change in the job assignment7. To meet challenges posed by the global

competition.

The need for training also arises to :1.Increase productivity2.Improve quality of the product/service.3.Help a company to fulfil its future personnel

needs.4.Improve organisational climate .5.Improve health and safety.6.Prevent obsolescence.7.Effect personal growth.8.Minimise the resistance to change 9.To act as mentor.

Objectives of training :1. Enhancing employee performance .2. Updating employee skills .3. Avoiding or delaying managerial

obsolescence4. Preparing for promotion and managerial

succession.5. Motivating employees .6. Gaining organizational excellence.

Importance of training :1. Better performance 2. Improved quality3. Less supervision4. Less learning period 5. High morale6. Personal growth7. Favourable organisational climate.

Methods of training

On-the –job training off-the –job training

1.On-the-training(OJT)2.Job Instruction training(JIT) Simulation methods Experiential methods

3.Coaching4.Job Rotation Knowledge –based methods

1.Role Play 1.Lectures 1. Sensitivity training

2.case study method 2. Conference & 2. Transaction analysis

3.Management games seminars 4.In basket exercise 3. Programmed

5.Vestibule training Instruction

On-the-job oriented training method:Are very popular and are widely used by majority organisations. The main objectives are centered around the job.(ie) learning on the job itself by a variety of methods.

1.On-the-job Training (OJT) :In this method , the new employee is placed on a job

and taught the skills necessary to perform it. A trainer or superior teaches the employee.

Since trainee learns by observing and handling the job, this method is also termed as “observing, and copying” or “learning by doing”.

2.Job Instruction Training (JIT):

In this method,a trainer or supervisor gives instructions to an employee how to perform his job. (actual work site)This method of training is appropriate for acquisition or improvement of motor skills and routine and repetitive operations.

3.Coaching:In this method , the superior teaches or guides

the new employee about the knowledge and skills of a specifcally defined job.The supervisor points out the mistakes committed by the new employee and then also gives suggestions to improve upon.

For coaching the trainee or new employee effectively, the superior must have interpersonal competence and be able to establish helping relationship with the trainee.

4.Job rotation:• In this method , a trainee moves from one

job to another and from one department /division to another.

• This type of training is more appropriate for developing multiskilling, operational flexibility, providing satisfaction from routine jobs and broading the overall persepective of the trainee.

Off –the- job trainingAre the Training given to the employee away

from the work place. Simulation , knowledge -based and

experiential methods are some of the off-the-job training methods.

I. Simulation methods:Is a techniques which duplicates ,the actual

conditions encountered on a job.These methods have been most widely used

in the aeronautical industry.

1. Role play:This is just like acting out a given role as in a

stage play. In this method of training , the trainees are

required to enact defined roles on the basis of oral or written description of a particular situation.

This method is mostly used for developing interpersonal interaction and relations among the employees working in sales, marketing , purchasing and the supervisors who deal with people.

2.Case study method:The case is an actual event or situation on

organsational problems which is a written description for discussion purpose.

Trainees are asked to analyse the events or circumstances with an objective to identify the problems ,trace out the causes for it and find out the solution to solve the problems.

This method is suitable for developing decision-making skills among the top and senior level managers.

3.Management games :The games is devised on the model of a business

situation. Then, the trainees are divided into groups who

represent the management of competing companies.

They make decisions just like these are made in real-life situations.

Decisions made by the groups are evaluated and the likely implications of the decisions are fed back to the groups.

The games goes on in several rounds to take the time dimension into account.

4.In-Basket Exercise:This is also called “in-tray” method of training.This is built around the incoming mail of a manager.The trainee is presented with a pack of papers and files in a

tray containing administrative problems and are asked to take decision on these within aspecified time limit.

The decisions taken by the trainees are compared with one another .

The trainees are provided feedback on their decisions .This forces them to reconsider their administrative actions and

behavoiural style .

Here occurs the learning of trainee.

5.Vestibule training:This is a system in which employees learn

their jobs on the equipment they will be using, but the training is conducted away from the actual work floor.

This type of training is commonly used for training personnel of clerical and semi-skilled grades.

The duration of training ranges from few days to a few weeks.

This method relates theory with practice.

II.Knowledge-based method :In this method, an attempt is made to impart

employees knowledge in any subject area covering the aspects like its concepts and theories , basic principles and pure and applied knowing of the subject.

1.Lectures: is a common method.In this method the trainer provides knowledge to the trainees usually from prepared notes.

Notes are also given to the trainees.This method is found more appropriate in situations where some information is required more participation from the audience.

It is a low cost method. The major limitation of this method is that it does

not provide for active involvement of the trainees.2.Conference /seminars:In this method , the trainer delivers a lecture on the

particular subject which is followed by queries and discussions.

The conference leader must have the necessaryskills to lead the discussion in a meaningful way

without losing sight of the topic or theme.This method is used to help employees develop

problem –solving skills.

3.Programmed Instructions:This is recently developed technique based on the

principle of positive reinforcement developed by B.F.Skinner .

This technique is used to teach non-motor and behavioural skills .

The subject matter to be learned is prepared and condensed into logical sequence from simple to more complex.

The trainer monitors trainee,s independent progress through the programme .

The trainee gets instant feedback on his learning.This method is expensive and time consuming.

III.Experiential method:The objective of these method is to help an

individual understand one -self and others.This is done through attitudinal change . Such understanding helps an individual

understand the dynamics of human relationships in a work situation, including at times his managerial style.

Sensitivity Training:The objective of sensitivity training is to increase participants

insights into their behaviour and the behaviour of others by encouraging an open expression of feelings in the trained guided T- group.

This is based on the assumption that newly sensitized employee will then find it easier to work together amicably as a group or team.

sensitivity training seeks to accomplish its aim of increasing interpersonal openness, greater concern for others, increased tolerance for individual difference s, enhanced listening skills,and increased trust and support.

T-group meets continually for period as long as 1 or 2 weeks.

• Transactional analysis:It is a technique of training developed by Eric

Berne. It is a tool of improving human relations and

interactions , and of promoting rational and mature behaviour.

It identifies 3 main aspects of human personality.

Parent(taught behaviour)Adult(thought behaviour)Child (felt behaviour)

This approach is useful for understanding peoples behaviour particularly when they are involved in inter-personal relationships.

Development of positive thinking , improvement in inter-personal relationship , proper motivation of people and organizational development are some of the important benefits of transactional analysis ,as a technique of training.

Other methods

*On the training

Apprenticeship trainingUnder study

*Off the job trainingDemonstrationBrainstormingField trips

Apprenticeship training:

Is an “earning while learning” arrangement for a required term.(one year or few months)

Training takes place under the supervision of an experienced person.

An apprentice receives knowledge and develops skills associated with a designated trade through on-the-job training.

Under study:It is a development technique to prepare a manager

for taking over the charge of his senior after his retirement, transfer , promotion or death.

The executive who is understudy acts as assistant to the superior executive whom he will succeed.

Senior manager teaches him all skills and imparts complete knowledge for the performance of the job.

• Demonstration:Is an instructional method in which an

instructor shows and explains .This method may be uesd to enrich and

increase the learners understanding.Practice must be included as a major

component of the method.

Brain storming: Developed by A.F OsbornIs a group creativity technique designed to

generate a large number of ideas for the solution of a problem.

Provides an opportunity for wide spread participation and involvement and stimulated thinking.

Field trips:A fieldtrip or fieldwork training is a journey by a

group of people to a place away from their normal environment.

Field trip provides an understanding of activities, working procedures or mgt processes of an organisation.

It enables the participants to interact with a real field setting or situtation , leading to direct learning.

Types of Training

1.Induction or Orientation Training2.Job Training3.Apprenticeship Training4.Internship Training5.Refresher Training or Retraining6.Training for Promotion.

TN.229

TRAINING PROCESS

1.Identification of training needs2.Setting training objectives.3.Designing training methods.4.Administration of training programmes.5.Evaluation of training.

K.111

Resistance to training

• Employee resist training because they resist change.

Resistance to change involves • employees behaviour designed to discredit, delay (or )• prevent the changes introduced for the development of an organization.

• They resist because they are afraid of their job security,working conditions ,status and other factors.

Sources of resistance

Individual resistance organizational resistanceHabits Limited focus of change Security group inertiaEconomic factor Threat to expertise Fear of the unknown Threat to establish Selective information power relationshipsprocessing Threat to establish

resource allocation

Factors that increase resistance to training

• Insecurity • Lack of communication• Rapid change • Loss of power and control • Emotional feelings

Managing resistance to training

• Participation and involvement• Good communication and education• Leadership• Negotiation and agreement• Willingness

Executive development programmes

“Any activity designed to improve the performance of existing managers and to provide for a planned growth of managers to meet future organisational requirements”

“ The process by which managers and executive acquire not only skills and competency in their present jobs but also capabilities for future managerial tasks of increasing difficulty and scope.”

Edwin B.Flippo

Objectives of executive development progamme :1. To improve the performance of managers at all

levels.2. To identify the persons in the organisation with

the required potential and prepare them for higher positions in future.

3. To stimulate creative thinking for improving methods and procedures and analytical abilities.

4. Provide opportunities to executives to fulfill their career aspirations.

5. To understand different function in a company.

Importance Of EDP

1.There is a rapid pace of technology change .Many automatic machines and equipments have been

introduced in modern organisations.The manager must have working knowledge of the

use of new technology.2.socio-cultural environment is changing at a fast

speed.The manager must have uptodate knowledge of

socio-cultural environment to understand the behaviour of people in a proper perspective.

3.There is a tough competition in the market and the consumers.

To understand and meet the needs of the consumers properly , executive development can be of great help.

4.Increased recognition of social responsibility by modern business houses has increased the need of executive development.

5.In order to satisfy the employee and to motivate them to contribute to the achievement of organisational objectives development of executives is necessary.

6.Frequent labour –management conflicts need trained managers to bring industrial peace in the enterprise.

Executive developments methods

On-the-job methods off-the-job methods

Coaching LectureJob rotation Case studiesUnderstudy assignments Group discussionCommittee assignments Transactional analysis

Role playingManagement gamesSensitivity trainingIn- basket exerciseOrganisation development

EDP PROCESS

• Identifying development needs• Appraisal of present managerial talent• Inventory of executive manpower• Developing development programmes• Conducting development programmes• Evaluating development programmes

BENEFITS OF EDP

1. It helps manager to develop their skills to face competition.

2. Developing better relations with the labour.3. It helps manager to have broad outlook.4. It helps in enhancing and motivating the

performance of executive 5. It makes executives to communicate effectively.

Self development:

Self-Development is taking personal responsibility for one's own learning and development through a process of assessment, reflection, and taking action.

When to use it?1.To continually update skills and to remain marketable

in the workplace. 2.To determine future career direction.

How to use self development ?1.Assess your current skills and interest through paper-and-

pencil career tests or through computer programs that analyze skills and interests.

2.Maintain a learning log or diary to help you analyze what you are learning from work experiences.

3.Write a personal vision and mission statement.4. Develop a personal development plan that identifies your

learning needs and goals.5. Find a mentor who can provide you with support, advice, and

assistance in your career direction. Become involved in professional organizations.

6.Read professional journals and trade magazines to keep current on the latest developments in your field.

Knowledge management (KM)

• Knowledge management (KM) comprises a range of strategies and practices used in an organization to identify, create, represent, distribute, and enable adoption of insights and experiences.

• Such insights and experiences comprise knowledge, either embodied in individuals or embedded in organizations as processes or practices.

“KM is the process by which information is used to create something actionable.”

Knowledge management elements :Knowledge creationKnowledge sharingKnowledge utilization

Significance of KM

• Tool for decision making• Provides opportunity for survival. • May reduce training time of new employees .• Promotes Recognisation .

UNIT:IV

What Is Compensation?• Compensation is the total reward received by

an employee in exchange for services performed for an organization.

• It can include both direct pay (salary and wages) and indirect pay (benefits programs).

Compensation refers to a wide range of financial and non-financial rewards to employees for their services rendered to the organisation.

Eg: It is paid in the forms of *Wages *Salaries

Employee benefits such as * paid vacations *Insurance *Maternity leave*Free travel facility*Retirement benefits

Monetary payment are a direct form of compensating the employees and have a great impact in motivating employees.

compensation

Financial Non-financial supplementary compensation

Wage salary job content fringe benefits

responsibility perquisitiesrecognitionworking conditionsupervision

The term “wages “ is used to denote remuneration to workers for doing manual

or physical work.”

wages

Hourly daily weekly even monthly basis

The term “salary” is usually defined to mean compensation to office

employees, foreman, managers and professional and technical staff.

salary

Monthly yearly

Objectives of compensation

1. Attracting and retaining personnel:Capable employees are attracted /retained in organisation

2.Motivating personnel :The employees are motivated for better performance .

• The employees do not leave the organisation frequently.

ELEMENTS OF COMPENSATION

In Industry , workers are compensated in form of following benefits :

1. Monthly wages and salary (or) total pay including basic wages , house rent allowances dearness allowance and city compensatory allowances.

2. Bonus at the end of the year.3. Economic benefits such as paid holiday , leave travel

concession.4. Contribution towards Insurance premium.5. Contribution towards Retirement benefits such as

Provident fund.6. Transport and Medical facilities.

• What are the components of a compensation system? • Compensation will be perceived by employees as fair if based on systematic components. Various compensation systems

have developed to determine the value of positions. These systems utilize many similar components including job descriptions, salary ranges/structures, and written procedures. The components of a compensation system include:

• Job Descriptions A critical component of both compensation and selection systems, job descriptions define in writing the responsibilities, requirements, functions, duties, location, environment, conditions, and other aspects of jobs. Descriptions may be developed for jobs individually or for entire job families.

• Job Analysis The process of analyzing jobs from which job descriptions are developed. Job analysis techniques include the use of interviews, questionnaires, and observation.

• Job Evaluation A system for comparing jobs for the purpose of determining appropriate compensation levels for individual jobs or job elements. There are four main techniques: Ranking, Classification, Factor Comparison, and Point Method.

• Pay Structures Useful for standardizing compensation practices. Most pay structures include several grades with each grade containing a minimum salary/wage and either step increments or grade range. Step increments are common with union positions where the pay for each job is pre-determined through collective bargaining.

• Salary Surveys Collections of salary and market data. May include average salaries, inflation indicators, cost of living indicators, salary budget averages. Companies may purchase results of surveys conducted by survey vendors or may conduct their own salary surveys. When purchasing the results of salary surveys conducted by other vendors, note that surveys may be conducted within a specific industry or across industries as well as within one geographical region or across different geographical regions. Know which industry or geographic location the salary results pertain to before comparing the results to your company.

• Policies and Regulations

Concepts of wages• Minimum wages :Providing for sustenance of life plus for preservation

of the efficiency of worker.• Fair wages : Equal to the rate prevailing in the same trade and in

the neighbourhood , or equal to the predominant rate for similar work throughout the country.

• Living wages:Higher than fair wages. Provides for bare essentials

plus frugal comforts.A-305

• What are different types of compensation? • Different types of compensation include: Base Pay • Commissions • Overtime Pay • Bonuses, Profit Sharing, Merit Pay • Stock Options • Travel/Meal/Housing Allowance • Benefits including: dental, insurance, medical, vacation, leaves,

retirement, taxes...

Factors affecting wages/salary:

1.Demand for and supply of labour.2.Ability to pay.3.Cost of living.4.Productvity of workers.5.Labour union.6.Government policy.7.Prevailing wage rates.8.Goodwill of the company.9.Educational qualification.10.Work experience.

11.Promotion possibilities.

Significance of wages and salary

• Act as motivator.• Helps in employee retention.• Provides satisfaction.• Used to attract workers/labour.

system of wages

Time rate system Piece Rate System Wage Incentive Plan

Individual Incentive Plans Group Incentive Plan

Based on time Based on productivity 1.Pristman’s plan2.Profit sharing

1.Halsey plan 1.Taylor plan2.Rowan plan 2.Merrick plan3.Emerson plan 3.Gantt plan4.Bedeaux plan

Time rate system:Under this system , the worker is paid for the

amount of time spent on the job.

The period of time may be an hour, a day ,a week, a fortnight or a month and the wage rate will depend upon the period of time.

Wage=No: of days worked X Rate per day

ADVANTAGES DISADVANTAGES1.Simple *Inefficiency2.Feeling of security * Lack of

motivation3.Equality of wages *Increased

supervision4.Better quality *fixed wage bill5.Less wastage6.Adaptability7.Acceptable to trade union

Piece rate system:Under this system , the output of work is the

basis of wage payment. A worker is paid according to the amount of

work completed or the number of units turned out irrespective of time taken.

Wages=No: of units produced x Rate per unit.

ADVANTAGES DISADVANTAGES

1.Incentives for higher production . *Low quality2.Fairness *Insecurity to workers3.Costing *Poor IR4.Lesser supervision *Difficulty in rate fixation5.Remedial transfer *More administrative work6.Economy *Wastage

*Health hazard*Opposition by trade unions.

Wage Incentive Plan

• An incentive is anything that attracts a worker and stimulates him to work.

“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 result.”

Types of incentive schemesIndividual incentive scheme:

Under this plan , employees are paid on the basis of individual result.

Based on time Based on productivity

1.Halsey plan 1.Taylor plan2.Rowan plan 2.Merrick plan3.Emerson plan 3.Gantt plan4.Bedeaux plan

Halsey premium plan:F. A HALSEY

Under this plan , a guaranteed wage based on past experience is determined.

If a worker saves time, he gets 50% of wages for time saved (called premium) in addition to normal wages .

It is optional for the workers to work on the premium or not.

Thus, this plan provides incentives to efficient workers

Halsey or Weir Plan

Total Wages (W) = T x R + 50% (S-T) x R

T= Time takenS= Standard TimeR= Rate of WageP= Bounce(50%)

Rowan premium plan:D.Rowan 1901

It similar to Halsey plan,the only difference is in regard to the determination of the premium.

Unlike a fixed % in case of Halsey plan, it considers premium on the basis of the proportion which the time saved bears to the standard time.

Total Wages (W) =

Rowan Plan

T x R+[ T x R xTime savedStandard Time ]

EMERSONS EFFICIENCY PLAN:In this plan Emerson suggested guaranteed wage

payment to all workers on time rate basis. In addition ,bonus or extra payment was suggested to

those who prove to be efficient . For determining efficiency , standard output per unit

of time or standard time for the job is determined .Efficiency is to be measured on the basis of

comparsion of actual performance with the standard fixed .

Bedeaux point plan:In this plan , every operation or job is

expressed in terms of so many standard minutes ,which is called bedeaux points or B”S, each representing one minute through time and motion study.

Thus there are 60 B”s in one hour. Each has a standard number of B”S.

The rate per hour is determined .

Taylor’s differential piece –rate system:-F.W. Taylor in 1880.According to him , it is possible to calculate standard workload

for every worker on the basis of time and motion studies .In this plan he suggested two piece rates for workers .The lower rate to those who are average or less efficient and

give production below the standard workload fixed. The higher piece rate is suggested for those who are above

average or efficient and give production over and above the standard workload fixed.

Naturally an efficient and sincere worker will be paid at a higher rate and an inefficient worker will be paid at a lower rate.

Merrick’s multiple piece rate plan:

According to this plan three pieces for a job is fixed.

Gantt Task- H.L.Gantt:under this system bonus % is multiplied by the value of standard time. Under this system fixed time rates are guaranteed. Output standards and time standards are established for the performance of each job.

Rates Bonus Incentives

Up to 83% Normal

Above 83% to 100% 110% of normal rate

Above 100% 120% of normal rate

Group incentive :1.Profit sharing : “profit sharing is a scheme whereby, a certain

percentage of the profits is distributed at fixed intervals, usually annually in some definite ratio to all the employees who have been the employees of the firm for a stated term.”

2.ESOP:“Employee stock ownership plan is a defined contribution of employee benefit that allows

employees to become owners of stock on the company they work for.”

Companies allow executives to purchase their shares at fixed prices . Stock options are valuable as long as the price of share keeps increasing.

The share price crashes when the company starts incurring loss, and executives stand to lose in the process.

Methods of Wage Payment

1. Payment by time2.Payment by result (PBR)

i)Straight piece workii)Differential piece –work system

3. Balance or Debt Method

K-169

• The Minimum Wages Act, 1948• The Payment of Wages Act, 1936• The Payment of Bonus Act,1965• The Equal Remuneration Act, 1976

Pay Commissions

Wage legislation in India

Supplemenrary compensation

• Modern organisation use supplementary compensation to retain the employees on a long-term basis.

• The supplementary compensation involves “fringe benefits” offered through several employee services and benefits such as housing, medical care & aid canteen uniform recreation,p.f,gratuity,health and group insurance,accident relief.

“Fringe benefits refers to various extra benefits provided to employees , in addition to the compensation paid in the form of wages or salary”.

“Fringe benefits may be defined as wide range of benefits and services that employees receive as an intergral part of their total compensation package.”

• Supplementary compensation has been given different titles in industry . Such a

“Service programmes”“Employee benefits”“Non-wage payment”

Purpose :1.To attract and maintain efficient human

resources with the organisation .2.To motivate the employees.

Types of supplementary compensation:Payment for time not worked.Hazards protectionEmployee servicesLegal payments.

Perquisities

“Are benefits initiated by industrial giants particularly for the executives.”

Include company car, club membership, paid holidays, furnished home,stock option schemes.

Perquisites are offered to retain competent executives.

Reward

Reward can be defined as “ something which is offered or given to the

employees, in return for some service or attainment.”

Reward is a dynamic instrument.It motivates employees higher performance.

Objectives of reward: 1.Improves individual and organsational

performance.2.Motivates employees.3.To achive integration.4.To encourage value added performance.5.To increase commitment.6.To enhance performance .7.To promote teamwork and quality.

Classification of reward

1.Monetary reward 2.non monetary reward

1.eg:cash , cheque , direch cash deposite2.gifts, trophies, desk items,personal gift items

etc.

Types of rewards1.Financial rewards: Financial reward are the direct monetary

reward encompassing the payment of cash compensation to employees for work accomplishment or effort.

Eg:Paid leave,Progression through the salaryMerit .

• 2.NON-FINANCIAL REWARD:Reward given to the worker other than the

money.Eg:Recognition,Achievement, responsibility,job

enrichment,Workers participation in management.

3.Organisational reward:People join organsations expecting rewards.Firms distribute money and other benefits in

exchange for the employee’s availability , competencies, and behaviour.

1.Membership and seniority based reward.2.Task performance based reward.3.Competency based reward.4.Job status based reward.Asw-390

CAREER MANAGEMENT

• A Career can be defined as all the jobs held by a person during his working life.

According to Edwin Flippo“a career is a sequence but related work

activities that provides continuity, order,and meaning in a person’s life.”

Career Management:“Is the process of designing and implementing

goals,plans and strategies to enable the organisation to satisfy employee needs while allowing individuals to achieve their career goals.”

Factors• A person’s career is shaped by many factors.• Education• Experience• Performance• Parents• Caste links and some occasional luck.

Career stages:

1.Exploratory stage 2.Establishment stage3.Mid career stage4.Late career stage5.Decline stage.

• Careering planning can be defined as a systematic process by which one decides his/her career goals and the path to reach these goals.

• Career planning is a managerial technique for mapping out the entire career of employees from the employment stage to the retirement stage.It involves discovery,development,planned employment and reemployment

Career goal:The future positions one strives to reach in his

career.

Career path:The sequential and progressive path or line

through which one moves towards his/her career goal.

Career Anchors:Are the basic drives acquired by an individual during the

socialisation process which urge him to take up career of certain types.

Five career anchors identified are :1.Managerial competence2.Technical –functional competence3.Security4.Creativity5.autonomy-independence

Career Progression:Making progress in one’s career through a series of right moves

in the form of promotion.

Mentor and porteges relationshipMentor and the proteges are the two participants in

mentoring relationships in the work place .The supervisors , reporting officer

Mentoring :A process wherein a senior employee serves in an

informal way as a teacher , guide,friend, philosopher and confidante to the new employee in the organisation

Mentoring process

1. Need assessment2. Program design3. Training4. Pairing5. evaluation

Classification of mentoring programs

Formal mentoringInformal mentoringCareer mentoringPsycho-social mentoringOne-to one mentoringGroup mentoringTeam mentoringPeer mentoringe-mentoring

Mentors and proteges relationship

Proteges are individuals who receive guidance, coaching, and support from the mentor.

The supervisors and reporting officer of the protege , plays a crucial role for the success of a mentoring programme.

They give Guidance, and cooperation.

Different roles of mentor :

Teacher ,guide,friend, philosopher ,advisor ,counselor.

Benefits of mentoring and proteges relationship:1. Improves self –confidence and self esteem.2. Increases motivation3. Helps in interpersonal skill development .4. Helps in shared learning .

Unit v:Performace appraisal

“is a systematic evaluation of the individual with regards to his/her performance on the job and potential development.”

It is also called merit rating

Objectives:

1.Facilitating promotion decisions.2.Encourages performance improvement3.Deternmining compensation changes.4.Improving overall organisational performance

Uses:1. Performance improvement2. Compensation adjustment3. Placement decision 4. Career planning and development5. Training and development 6. Employment opportunity.

Methods of performance appraisal

Traditional method s Modern methods1Ranking method 1.Management by objectives2Paired comparison 2.Behaviourally anchored rating

scales3.Grading 3.assessment centres4.Forced choice method 4.360-degree appraisal5.Forced distribution method 5.cost accounting method6.Checklist method 7.Critical incidents methods8.Graphic scale method9.Essay method10.Field review method 11.Confidential report

Promotion

“Promotion is the vertical movement of an employee within the organisation.””

“promotion refers to the upward movement of an employee from one job to another higher one, with increase in salary, status, and responsibilities.”

Types of promotion 1.Horizontal promotion:when an employee is shifted in the same category it is called

horizontal promotion Eg: a junior clerk promoted to senior clerk2.Vertical promotion:When an employee is promoted from a lower category to

higher category involving incrase in salary, status ,authority and responsibility.

3.Dry promotion :When promotion is made without increase in salary is called

dry promotion.Eg:A lower level manager is promoted to senior mgr without

increase in salary or pay.

BASIS FOR PROMOTION

Promotion on meritPromotion on the basis of seniorityPromotion on merit cum seniority basis

Benefits :

1.Provides personal satisfaction.2.Provides recognition3.Lesser cost of training4.Improves morale of employees.

Promotion policies:

1.Informal promotion system2.Open versus closed promotional systems.

Demotion

“the assignment of an individual to a job of lower rank and pay usually involving lower level of difficulty and responsibility”

Causes :1.Incompetence2.Adverse business conditions3.Disciplinary measures