Human

1 Discuss the managerial functions of Human Resource Management.

Managerial Functions Management is a multi-purpose organ which has three jobs, two of which are directly related to personnel managing a business: managing managers and managing workers and the work S Lawrence Appley says that Management is the accomplishment of results through the efforts of other people. In the opinion of Harold Koontz, It is the art of getting things done through people and with informally organized groups. In their view, management may be thought of as the process of allocating an organisations inputs (human and economic resources) by planning, organizing, directing and controlling for the purpose of producing outputs (goods and services) desired by its customers so that organisation job objectives are accomplished in the process, work is performed with and through organisation personnel in an ever changing business environment. (a) Planning is a pre-determined course of action. According to Allen, it is a trap laid to capture the future Terry is of the View that planning is the foundation of most successful actions of any enterprise. Planning is the determination of the plans, strategies, programmes, policies, procedures, and standards needs to accomplish the desired organisatoin objectives in fact, planning today avoids crisis tomorrow. (b) Organizing: After a course of action has been determined, an organisation should be established to carry it out. According to J.c. Massie, An organisation is a structure, a framework and a process by which a cooperative group of human beings allocates its tasks among its members, identifies relationships and integrates its activities towards common objectives. In the words of Drucker: The right organizational structure is the necessary foundation; without it, the best performance in all other areas of management will be ineffectual and frustrated. (c) Directing (motivating, actuating or commanding) the subordinates at any level is a basic function of the managerial personnel. According to McGregor, many managers would agree that the effectiveness of their organisatoin would be at least doubled if they could discover how to tap the unrealized potential present in their human resources (d) Coordinating and Controlling. Coordinating refers to balancing timing and integrating activities in an organisation, so that a unity of action in pursuit of a common purpose is achieved. In the words of Terry, Co-ordination deals with the task of blending efforts in order to ensure a successful attainment of an objective. (e) Controlling is the act of checking, regulating and verifying whether everything occurs in conformity with the plan that has been adopted, the instructions issued and the principles established. It is greatly concerned with actions and remedial actions. it is not just score-keeping. It is not just plotting the course and getting location reports; but rather it is steering the ship.

2 State the importance of Human Resource Planning. Importance of Human Resources The concepts of Manpower or human resource is meant as the total knowledge, skills creative abilities, talents and aptitudes of an organizations work force, as well as the values, attitudes and benefits of an individual involved It is the sum total of inherent abilities, acquired knowledge and skills represented by the talents and aptitudes of the employed persons. Of all the Ms in the management (i.e., the management of materials, machines, methods, money, motive power), the most important is M for men or human resources. In any organisation, Human resources are utilized to the maximum possible extent in order to achieve individual and organizational goals. An organizations performance and resulting productivity are directly proportional to the quantity and quality of its human resources. MANPOWER PLANNING DEFINED Manpower Planning and human resource planning are synonymous. In the past, the pharse manpower planning was widely used; but not the emphasis is on human resource planning which is more broad- based. Human resource or manpower planning is the process by which a management determines how an organisation should move from its current manpower positon to its desired manpower position. Through planning, a management strives to have the right number and the right number and the right kinds of people at the right places, at the right time, to do things which result in both the organisation and the individual receiving the maximum long-range benefit. Coleman has defined human resource or 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 organisation. Stainer defines manpower planning as Strategy for the acquisition, utilization, improvement, and preservation of an enterprises 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 According to Wickstrom, human-resources planning consists of a series of activities, viz., (a) Forecasting estimates based upon the specific future plans of a company; (b) Making an inventory of present manpower resources and assessing the extent to which these resources are employed optimally; (c) Anticipating manpower problems by projecting present resources into the future and comparing them with the forecast of requirements to determine their adequacy, both quantitatively and qualitatively; and (d) Planning the necessary programmes of requirements, selection, training, development, utilization, transfer, promotion, motivation and compensation to ensure that future manpower requirements are properly met. Human resources planning is a double-edged weapon. If used properly, it leads to the maximum utilization of human resources, reduces excessive labour turnover and high absenteeism; improves productivity and aids in achieving the objectives of an organisation. Faultily used, it leads to disruption in the flow of work, lower production, less job satisfaction, high cost of production and constant headaches of for the management personnel. Therefore, for the success of an enterprise,

human resource planning is a very important function, which can be neglected only at his own peril. It is as necessary as planning for production, marketing, or own peril, it is as necessary as planning for production, marketing, or capital investment. NEED FOR HUMAN RESOURCE PLANNING The necessity of Human resource planning for all organizations is for following reasons: (i) To carry on its work, every organisation needs personnel with the necessary qualifications, skills, knowledge, work experience and aptitude for work. These are provided through effective manpower planning. Since a large number of persons have to be replaced who have grown old, or who retire, die or become incapacitated because of physical or mental ailments, there is a constant need for replacing such personnel otherwise the work would suffer. Human resources planning is essential because of labor turnover which is unavoidable and even beneficial because it arises from factors which are socially and economically sound such as voluntary quits, discharges, marriage, promotions, or factors such as seasonal and cyclical fluctuations in business which cause a constant ebb and flow in the work force in many organisation. In order to meet the needs of expansion programmes which become necessary because of increase in the demand for goods and services by a growing population, a rising standard of living which calls for larger quantities of the same goods and services as also for new gods; the competitive position of a firm which bring it more business arising from improvements effected in the slump period; and the rate of growth of the organisation, human resource planning is unavoidable. The nature of the present work force in relation to its changing needs also necessitates are recruitment of new labour. To meet the challenge of a new and changing technology and new techniques of production, existing employees need to the trained or new blood injected in an organisation. Manpower planning is also needed in order to identify areas of surplus personnel or areas in which there is a shortage of personnel. If there is a surplus, it can be redeployed; and if there is shortage, it may be made good. Stainer recommends the following nine strategies for the man power planners: (a) They should collect, maintain and interpret relevant information regarding human resources. (b) They should report periodically man power objectives, requirements and existing employment and allied features of manpower. (c) They should develop procedures and technique to determine the requirements of different types of manpower over period of time form the standpoint of organisations goals; (d) They should employ suitable techniques leading to effective allocation of work with a view to improving manpower utilization; (e) They should conduct research to determine factors hampering the contribution of the individuals and groups to the organisation with a view to modifying or removing these handicaps.

(ii)

(iii)

(iv)

(v)

(vi)

(f) They should develop and employ methods of economic assessment of human resources reflecting its features as income-generator and cost and accordingly improving the quality of decisions affecting the manpower. (g) They should evaluate the procurement, promotion and retention of the effective human resources; and (h) They should analyse the dynamic process of recruitment, promotion and loss to the organ is an control these processes with a view to maximizing individual and group performance without involving high cost. Process of Human Resource Planning Human resource planning process is one of the most crucial complex and continuing managerial functions. It may be rightly regarded as a multi-step process of human resource planning such as: (a) Deciding goals or objectives; (b) Estimating future organizational structure and manpower requirements; (c) Auditing human resources; (d) Planning job requirements and job descriptions; (e) Developing a human resource plan.LongRange Objectives and Plan Overall requirements for human resources Inventory of present human resources Net New human resources requirements Action programmes for recruiting & selecting needed personnel Proced for evaluation effectiveness of human resources planniration

Short term goals, plans programmes and budgets

Work force requirements by occupational categories job skills, demographic

Inventory by occupational categories, job skills, demographic characterisitcs

Needed replacement or additions

Plans for developing, upgrading, transferring, in recruitment, and selecting needed people

Fig. Human Resource Planning System

Objectives of Human Resources Planning Human resource planning fulfills individual, organizational and national goals; but, according to Sikula, the ultimate mission or purpose is to relate future human resources to future enterprise needs so as to maximize the future return on investment in human resources. In effect, the main purpose is one of matching or fitting employee abilities to enterprise requirements, an emphasis on future instead of present arrangement. (A) Estimating the Future Organizational Structure of Forecasting the Manpower Requirements The management must estimate the structure of the organisation at a given point in time. For this estimate, the number and type of employees needed have to be determined. Many environmental factors affect this determination. They include business forecasts, expansion and growth, design and structural changes, management philosophy, government policy, product and human skills mix, and competition. Forecasting provides the basic premises on which the manpower planning is built, Forecasting is necessary for various reasons, such as: (a) The eventualities and contingencies of general economic business cycles (such of additional machinery and personnel, and a re-allocation of facilities, all of which call for advance planning of human resources. (b) An expansion following enlargement and growth in business involves the use of additional machinery and personnel, and a re-allocation of facilities, all of which call for advance planning of human resources. (c) Changes in management philosophies and leadership styles. (d) The use of mechanical technology (such as the introduction of automatic controls, or the mechanization of materials handling functions) necessitates changes in the skills of workers, as well as a change in the number of employees needed. (e) Very often, changes in the quantity or quality of products or services require a change in the organisation structure. Plans have to be made for this purpose as well. It may be noted that for purposes of manpower planning, the main dimensions to be taken into consideration are: (i) The total number of personnel available, this could be obtained from they pay-rolls and other personnel records, such as the applications for employment. The total number has to be classified on some basis, such as manual workers (i.e., daily-rated, weekly-rated or monthly-rated); clerical employees, ministerial staff, managers and other executives; specialists and skilled and unskilled workers; sex-wise distribution etc. (ii) The job-family, i.e., a detailed job-description for each position such as stenographers who may belong to various departments e.g., finance, marketing, personnel, public relations, general administration, etc. (i) (ii) Age distribution of the employees, available in the present departments, say in the age-groups 20-29 years; 30-45 years; 46 years and above. Qualification and experience desired, such as a person with 5 years 10 years experience in a particular branch/job; and whether under-graduate, post-graduate, or MBAs or graduates in

Science, Commerce, Arts, engineering, or professional diploma holders, etc; or with specialized knowledge in the field of marketing, finance, computer programming or engineering work. (iii) (B) The salary range, etc. Auditing Human Resource Once the future human resource needs are estimated, the next step to determine the present Supply of manpower resources. This is done through what is called Skills Inventory. A skills inventory contains data about each employees skills, abilities work preferences and other items of information which indicate his overall value to the company. (C) Job Analysis After having decided how many persons would be needed, it is necessary to prepare a job analysis, which records details of training, skills, qualification abilities, experience and responsibilities, etc., which are needed for a job. Job analysis includes the preparation of job descriptions and job specifications. This has been discussed in the later sections of this chapter. (D) Developing a Human Resources Plan This step refers to the development and implementation of the human resource plan, which consists in finding out the sources of labour supply with a view to making an effective use of these sources. The first thing, therefore, is to decide on the policy should the personnel be hired from within through promotional channels or should it be obtained from an outside source. The best policy which is followed by most organisatoins is to fill up higher vacancies by promotion and lower level positions by recruitment from the labour market.

RESPONSIBILITY FOR HUMAN RESOURCE PLANNING The responsibilities of the Personnel department are having the responsibilities in man power planning which have been stated by Geisler in the following words: i. ii. iii. iv. To assist, counsel and pressurize the operating management to plan and establish objectives; To collect and summarize data in total organizational terms and to ensure consistency with long-range objectives and other elements of the total business-plan; To monitor and measure performance, against the plan and keep the top management informed about it; and To provide the research necessary for effective manpower of organizational planning.

Manpower Plan Component The manpower plan can be broken down into three components: i. Forecasting estimating future needs and stock taking of available resources in the organisation.

ii. iii.

Recruitment plan, to meet the gap between the internal resource and estimated need by external recruitment; Training and Development plan to utilize fully the human resources of the organisation and to develop the potential resources.

3 Discuss the types of interviews.

One-On-One Interviews: One person interviews each candidate and makes the hiring decision. These interviews tend to be informal; however, it always depends on the employer's style. The interviewer will often have a series of prepared questions, but may have some flexibility in their choices. It is important to maintain eye contact with the person interviewing you. Panel/Board Interviews: Job seekers are interviewed by two or more individuals, who come to a consensus as to who is the best person for the position. Government, non-profit, and many high tech organizations commonly use this type of interview. Direct your attention at the beginning and end of your response to the person who asked you the question, while in between looking at each member of the panel in turn. If you can link your response to one that you have previously given, do so. If at all possible, get the panel members talking among themselves about your responses. Obtain the names of the interviewers prior to starting and use them during the conversation. Impromptu Interviews: This interview commonly occurs when employers are approached directly and tends to be very informal and unstructured. Applicants should be prepared at all times for on-the-spot interviews, especially in situations such as a job fair or a cold call. It is an ideal time for employers to ask the candidate some basic questions to determine whether he/she may be interested in formally interviewing the candidate. Dinner Interviews: These interviews may be structured, informal, or socially situated, such as in a restaurant. Decide what to eat quickly, some interviewers will ask you to order first (do not appear indecisive). Avoid potentially messy foods, such as spaghetti. Be prepared for the conversation to abruptly change from friendly chat to direct interview questions, however, do not underestimate the value of casual discussion, some employers place a great value on it. Be prepared to switch gears rapidly, from fun talk to business talk. Telephone Interviews: Have a copy of your resume and any points you want to remember to say nearby. If you are on your home telephone, make sure that all roommates or family members are aware of the interview (no loud stereos, barking dogs etc.). Speak a bit slower than usual. It is crucial that you convey your enthusiasm verbally, since the interviewer cannot see your face. If there are pauses, do not worry; the interviewer is likely just taking some notes. Group Interviews: You will meet the staff who will be your coworkers if you get hired. They will ask you several questions. They will be primarily testing your ability to work in a team environment. They want

to know how you will present information to other people, offer suggestions, relate to other ideas, and work to solve a problem. In short, your interpersonal skills will be tested. It is difficult to prepare for this type of interview except to remember what is being tested and to use the skills that you have, to be the best team player and/or leader you can be. This is a very casual type of interview, but leaving a positive and friendly impression is very important. Stress Interviews: These interviews are used primarily when the job the company is trying to fill involves an individual to perform under an extreme amount of stress. This interviewing style, when used, is typically found in the sales/marketing arenas. The candidate may have to wait a considerable amount of time for the interview to start, and the interviewer may not be friendly during the interview. This type of interview is used to assess an individual's ability to deal with unexpected as well as expected stressful situations. Second Interviews: Job seekers are invited back after they have passed the first initial interview. Middle or senior management generally conducts the second interview, together or separately. Applicants can expect more in-depth questions, and the employer will be expecting a greater level of preparation on the part of the candidates. Applicants should continue to research the employer following the first interview, and be prepared to use any information gained through the previous interview to their advantage. 4 State the objectives of Job Evaluation. The I.L.O. defines job evaluation as an attempt to determine and, compare demands which the normal performance of a particular job makes on normal workers without taking into account the individual abilities or performance of the workers concerned. We may define job evaluation as a process of analyzing and describing positions, grouping them and determining their relative value by comparing the duties of different positions in terms of their different responsibilities and other requirements. It is the quantitative measurements of relative job worth for the purpose of establishing consistent wage rate differentials by objectives means. It measures the differences between job requirements, the objective being the setting of pay for management purposes. It does not set the price of a job; it merely fixes its relatives worth. It presents and effort to determine the relative value of every job in a plant, and to determine what the fair basic wage for such a job should be. It is not evaluation the merit of the worker who is doing the work. It rates the job and not the qualities of the individual workers on the job, which is the task of employee rating.

Objectives of Job Evaluation According to I.L.O. Report the objectives of job evaluation are: To secure and maintain complete, accurate and impersonal descriptions of each distinct job or occupation in the entire plant; To provide a standard procedure for determining the relative worth of each job in a plant; To determine the rate of pay for each job which is fair and equitable with relation to other jobs in the plant, community or industry; To ensure that like wages are paid to all qualified employees for like work; To promote a fair and accurate consideration of all employees for advancement and transfer; To provide a factual basis for the consideration of wage rates for similar jobs in a community and in an industry; and To provide information for work organisation, employees selection, placement, training and numerous other similar problems.

5 Explain the objectives of wage administration.

Wage and salary administration affect levels of employee commitment to the organisation. However, fascinating the individuals job assignment is, the employee must be paid. Pay affects the way people work-how much and how well. A large part of the compensation that people receive from work is monetary. Although managers are expected to conserve money and distribute it wisely, many employees feel that they should get more of it for what they do. Wages, salaries and many employee benefits and services are form of compensation. Administration of employee compensation is called wage and salary administration. According to D.S. Beach Wage and Salary Administration refers to the establishment and implementation of sound policies and practices of employee compensation. It includes such areas as job evaluation, surveys of wage and salaries, analysis of relevant organizational problems, development and maintenance of wage structure, establishing rules for administrating wages, wage payment incentives, profit sharing, wage changes and adjustments, supplementary payments, control of compensation costs and other related items. The wage and salary administration aims to establish and maintain an equitable wage and salary structure and an equitable labor cost structure.

Objectives of Wage and Salary Administration : A sound plan of wage and salary administration seeks to achieve the following objectives :

To establish a fair and equitable compensation offering similar pay for similar work. To attract competent and qualified personnel. To retain the present employees by keeping wage levels in tune with competitive units. To keep labor and administrative costs in line with the ability of the organization to pay. To improve motivation and morale of employees and to improve union management relations. To project a good image of the company and to comply with legal needs relating to wages and salaries. To establish job sequences and lines of promotion wherever applicable. To minimize the chances of favoritism while assigning the wage rates.

Principles of Wage and Salary Administration : The following principles should be followed for an effective wage and salary administration ;

Wage policy should be developed keeping in view the interests of all concerned parties viz., employer, employees, the consumers and the society. Wage and salary plans should be sufficiently flexible or responsive to changes in internal and external conditions of the organization. Efforts should be made to ensure that differences in pay for jobs are based on variations in job requirements such as skill, responsibility, efforts and mental and physical requirements. Wage and salary administration plans must always be consistent with overall organizational plans and programmes. Wage and Salary administration plans must always be in conformity with the social and economic objectives of the country like attainment of equality in income distribution and controlling inflation, etc. These plans and programmes should be responsive to the changing local and national conditions. Wage and salary plans should expedite and simplify administrative process. Workers should be associated, as far as possible, in formulation and implementation of wage policy. An adequate data base and a proper organizational set up should be developed for compensation determination and administration. The general level of wages and salaries should be reasonably in line with that prevailing in the labor market. There should be a clearly established procedure for hearing and adjusting wage complaints. This may be integrated with the regular grievance procedure, if it exists. The workers should receive a guaranteed minimum wage to protect them against conditions beyond their control. Prompt and correct payments to the employees should be ensured and arrears of payment should not accumulate.

The wage and salary payments must fulfill a wide variety of human needs including the need for self actualization. Wage policy and programme should be reviewed and revised periodically in conformity with changing needs. For revision of wages, a wage committee should also be preferred to the individual judgement however unbiased of a manager.

6 Discuss the problems of implementing incentive plan.

Merits or Wage Incentive Schemes Such schemes are regarded as beneficial to both employers and workers. They are accepted as a sound technique for the achievement greater production on the ground that workers would work at their best if they are offered monetary rewards for good performance. If employers, the need for a vigorous supervision is reduced, and consequently there is a cut in the expenditure on supervision. Types of Wage Incentive Plans Wage Incentive plans may be discussed as (i) plans for blue-collar workers; (ii) plans for whitecollar workers; and (iii) plans managerial personnel-because each of these categories of employees has separate and distinct needs and specific plans tailored for each may prove beneficial. 1. Incentive Plans for Blue-Collar Workers: For Individuals: (A) Short-Term Plans These systems may be broadly classified into three categories: (a) Systems under which the rate of extra incentive is in proportion to the extra output; (b) Systems under which the extra incentive is proportionately at a lower rate than the increase in output; and (c) Systems under which the rate of incentives is proportionately higher than the rate of increase in output. Merits of Wage Incentive Plans: (i) When well-designed and properly applied, payment by result may generally be relied upon to yield increased output, lower the cost of production and bring a higher income to the workers. (ii) A works study associated with payment by result is a direct stimulus to workers to improve the organisation of work and to eliminate lost time and other waste. (iii) Labour and total cost per unit of output can be estimated more accurately in advance. (iv) Less direct supervision is needed to keep output up to a reasonable level. (v) The confliction interests of employers and employees are unified. Increased efficiency and smooth working can therefore be promoted and sustained.

Demerits of Wage Incentive Plans: (i) Quality tends to deteriorate unless there is a stricter system of checking and inspection. (ii) Payment by result may lead to opposition or restriction on output when new machines and methods are proposed or introduced. This is because of the hear that the job may be restudied and earnings reduced, (iii) When paid by result, workers and to regard their highest earnings as norms, and therefore, press for a considerable higher minimum wage. (iv) The amount and cost of clerical work increases. (v) There is a danger of disregarding safety regulations and thereby increasing the rate of accidents. (vi) Some workers tend to over-work and thus undermine their health. (vii) Jealousies may arise among workers because some are able to earn more than others or because fast workers are dissatisfied with the slower or older works in the group. (viii) It is difficult to set piece or bonus rates accurately. If they are too low, workers may be under pressure to work too hard and become dissatisfied; and if too high, they, may slacker their efforts to avoid a revision of rates. A successful wage incentives plan should consist of the following key points: The management should recognize that the effectiveness of an incentive depends on the total situation, which includes workers-management confidence, relations with the trade union, the quality of communication and of supervision and the traditions in an industry. Management should not introduce an incentive system until it has taken action to ensure full understanding of what is involved. This may call for procedures for the participation of employees and negotiations with the trade union. The management should avoid any action that may be interpreted as unfair. There must be proper machinery for handling grievances. The management should avoid actions that resemble rate cutting because of the need to change methods and rates from time to time. It is essential that the management pay in proportion to output, once this output has risen above that required amount guaranteed pay. The management should train supervisors all the way down line so that foremen and department managers are able to deal with problems within their won departments. Great care should be taken in setting up standards to avoid rates that are too loose or too tight.

7 Discuss the features of motivation.

Motivation is a state of mind. High motivation leads to high morale and greater production. A motivated employee gives his best to the organization. He stays loyal and committed to the organization. A sound motivation system in an organization should have the following features: Superior performance should be reasonably rewarded and should be duly acknowledged. If the performance is not consistently up to the mark, then the system must make provisions for penalties. The employees must be dealt in a fair and just manner. The grievances and obstacles faced by them must be dealt instantly and fairly. Carrot and stick approach should be implemented to motivate both efficient and inefficient employees. The employees should treat negative consequences (such as fear of punishment) as stick, an outside push and move away from it. They should take positive consequences (such as reward) as carrot, an inner pull and move towards it. Performance appraisal system should be very effective. Ensure flexibility in working arrangements. A sound motivation system must be correlated to organizational goals. Thus, the individual/employee goals must be harmonized with the organizational goals. The motivational system must be modified to the situation and to the organization. A sound motivation system requires modifying the nature of individuals jobs. The jobs should be redesigned or restructured according to the requirement of situation. Any of the alternatives to job specialization - job rotation, job enlargement, job enrichment, etc. could be used. The management approach should be participative. All the subordinates and employees should be involved in decision- making process. The motivation system should involve monetary as well as non- monetary rewards. The monetary rewards should be correlated to performance. Performance should be based on the employees action towards the goals, and not on the fame of employees. Motivate yourself to motivate your employees should be the managerial approach. The managers must understand and identify the motivators for each employee. Sound motivation system should encourage supportive supervision whereby the supervisors share their views and experiences with their subordinates, listen to the subordinates views, and assist the subordinates in performing the designated job.

Characteristics Or Features of Motivation Some important features of motivation may be brought out as follows: 1. Personal and Internal Feeling Motivation is a psychological phenomenon, which is generated within an individual in the form of an energetic force that drives him to behave or not to behave in certain ways. These are some environmental and other forces that trigger these drives. 2. Art of Stimulating Someone Or Oneself A manager can use motivation to inspire not only his subordinates, but to motivate himself also. For self-motivation, he has to take following steps

He should set a goal for himself and should not close sight of it. He should supplement his long term objectives with short-term goals. He should learn a challenging task every year. He should make his job a different one with a view to improving objectives for his position and increasing his productivity. He should develop an area of expertise by building on his strengths and developing his weaknesses into strengths. He should give himself the feedback and reward himself by celebrating his accomplishment.

3. Produces Goal Directed Behaviour Motivation is closely intertwined with behaviour. As a Behavioural concept, it directs human behaviour toward certain goals. 4. Motivation can be either Positive or Negative Positive motivation is also known as Carrot Approach and includes use of additional pays, incentives, praise possibility of becoming a permanent employee etc. Negative motivation is also called Stick Approach and implies punishment, such as reprimands, threat of demotion, threat of termination, etc. 5. The Central Problem of Motivation is HOW Motivation is necessary for successful achievement of goals. However, it is a complex process because different employees have different needs, their motives are varied and needs and motivates change from time to time. Moreover, motivation is partly logical and partly emotional. Further, people satisfy their needs in many different ways. Hence, the central problem of motivation is how to inspire such a typical group of individuals towards attainment of goals in a concerned manner. 6. Motivation is System Motivation is the result of interplay among three sets of different factors: Oriented

Influences operating within an individual, for example, his needs, tensions, motives, values, goals etc. Influences operating within the organisation for example, its structure, technology, physical facilities, various processes, the nature of job, advancement avenues etc. Forces operating in the external environment, for example, society is culture, norms, values, customs, government policy regarding the business of the enterprise etc.

7. Motivation is a Sort of Bargaining Inducements from the side of the enterprise and contributions from the side of the employees. 8. Motivation is different from Satisfaction Motivation refers to the drive and effort to satisfy a want or goal. Satisfaction refers to the contentment experienced when a want is fulfilled. In other words, motivation implies a drive toward an outcome and satisfaction is the outcome already experienced.8 Explain the importance of keeping correct personnel records.

Significance of Records A record is a piece of writing or a chart which provides ready information and which preserves evidence for future reference or use. The importance of records and reports for the management of an organisation cannot be over emphasized, for they enable it to get information with a view to taking timely decisions on issues pertaining to the different aspects or personnel management. The are needed: (i) To supply the information required by government agencies on the rate of accidents, on largescale absenteesims or turnover, or on wage rates occurring or prevailing in an organisation; (ii) To conduct research in the field of industrial relations; (iii) To enable personnel manager to prepare training and development programmes; (iv) To review and revise pay scale; and (v) To keep and maintain up-to-date data on leave, transfers, promotions, dismissals, strikes or lockouts, man days lost, expenditure incurred on employees benefits and services cases of indiscipline, etc. In the absence of reliable records and reports, the management would not be able to function; in fact, it would be paralyzed, for it would not know where the organizations weakness lies and what precautions to take to set matters right. Records By the term records is meant the preservation of information in files and documents. They are generally prepared and compiled from reports; and they are meant for long-term use. They contain, for the employer and the employee, information on job analysis, evaluation and description, and/or recruitment, selection, test scores; on the results of physical examinations; on the interviewers notations; on employee training and development and periodical appraisals; on transfers, promotions, discharge

dismissals, lay-offs; on grievances and on the disciplinary action taken against employees; on wages, salaries, pensions, provident fund contributions, employee benefits-and-services programmes; safety and a prevention measures and procedures; labour disputes cost of the recruitment of employees and of training methods; scrap loss; the rate and extent of absenteeism and labor turnover; suggestion schemes and a host of other activities in which an organisation is involved. We give below a specimen on an employee record maintained by a well-known organisation in India. Essential of a Good Record To be reliable and effective a record should be clear about the following : The objectives for which it is maintained should be clearly and adequately stated. It should be consistent with the requirements for which it is maintained and should be easily available. Its upkeep and maintenance should not be costly. It should be kept under lock and key to ensure that it is not mislaid or pilfered, or tampered with. It should be periodically reviewed and brought up to date. It should be maintained in such a manner that the information it contains is easily accessible. It should be easily identified and differentiated from another record. The records of different kinds of information should be kept and maintained in separate files and dockets for ready reference. Duplication of entries in different records should be avoided. Some particular person should be entrusted with the re of maintaining records A procedural manual should be maintained, detailing the procedure to be followed for maintaining and dealing with records.

PART B (4 15 = 60 marks) Answer any FOUR questions. 9 Differentiate between Human Resource Management and Personal Management.

Many students of management and laypeople often hear the term HRM or Human Resource Management and wonder about the difference between HRM and the traditional term Personnel Management. In earlier times, the Personnel Manager of a factory or firm was the person in charge of ensuring employee welfare and interceding between the management and the employees. In recent times, the term has been replaced with HR manager. This article looks at the differences in usage and scope of functions as well as the underlying theory behind these

nomenclatures. In the section on introducing HRM, we briefly looked at the main differences. We shall look into them in more detail here.Personnel Management

Traditionally the term personnel management was used to refer to the set of activities concerning the workforce which included staffing, payroll, contractual obligations and other administrative tasks. In this respect, personnel management encompasses the range of activities that are to do with managing the workforce rather than resources. Personnel Management is more administrative in nature and the Personnel Managers main job is to ensure that the needs of the workforce as they pertain to their immediate concerns are taken care of. Further, personnel managers typically played the role of mediators between the management and the employees and hence there was always the feeling that personnel management was not in tune with the objectives of the management.Human Resource Management

With the advent of resource centric organizations in recent decades, it has become imperative to put people first as well as secure management objectives of maximizing the ROI (Return on Investment) on the resources. This has led to the development of the modern HRM function which is primarily concerned with ensuring the fulfillment of management objectives and at the same time ensuring that the needs of the resources are taken care of. In this way, HRM differs from personnel management not only in its broader scope but also in the way in which its mission is defined. HRM goes beyond the administrative tasks of personnel management and encompasses a broad vision of how management would like the resources to contribute to the success of the organization.Personnel Management and HRM: A Paradigm Shift ?

Cynics might point to the fact that whatever term we use, it is finally about managing people. The answer to this would be that the way in which people are managed says a lot about the approach that the firm is taking. For instance, traditional manufacturing units had personnel managers whereas the services firms have HR managers. While it is tempting to view Personnel Management as outdated and HRM as modern, we have to recognize the fact that each serves or served the purpose for which they were instituted. Personnel Management was effective in the smokestack era and HRM is effective in the 21st century and this definitely reflects a paradigm shift in the practice of managing people.Conclusion

It is clear from the above paragraphs that HRM denotes a shift in focus and strategy and is in tune with the needs of the modern organization. HRM concentrates on the planning, monitoring and control aspects of resources whereas Personnel Management was largely about mediating between the management and employees. Many experts view Personnel Management as being workforce centered whereas HRM is resource centered. In conclusion, the differences between these two terms have to be viewed through the prism of people management through the times and in context of the industry that is being studied.

10 Explain the advantages of Job Analysis.

11 Discuss the merits and demerits of merit-based promotion.

Merit Promotion ProgramThe underlying principle of the Merit Promotion Program is the identification, qualification evaluation, and selection of candidates made without regard to political, religious, labor organization affiliation, marital status, race, color, sex, national origin, non-disqualifying physical or mental handicap, or age and shall be based solely on job-related criteria in accordance with legitimate position requirements. The Merit Promotion Program is directed toward: Contributing to the accomplishment of mission goals by staffing positions with high-quality employees Providing career opportunities for employees and ensuring that all employees are fully informed of those opportunities Bringing to the attention of management high-quality employees who have the capacity to perform in more responsible assignments Fostering and facilitating the mobility of employees in the interest of broadening their experiences and increasing their qualifications Ensuring the maximum utilization of employees in positions for which they are best qualified Ensuring that the skills, qualifications, achievements, and promotion potential of employees are recognized and fairly considered in the staffing process Encouraging employees to improve their performance to develop their knowledge, skills, and abilities.

An organization seeking to promote its workers may choose to do so based on seniority to take advantage of the employees' experience with the organization and to reward them for their service. Another option is to promote based on merit, a measure of the employees' contributions based on performance. Each method offers potential advantages and disadvantages for the organization.

No FavoritismA seniority-based promotion structure can eliminate the perception of favoritism. Employers typically won't have to worry about a newer worker coming in and quickly leapfrogging them to obtain a promotion simply because they are friends with an upper-level supervisor or because of the way they dress or that they are more effective at playing the game of corporate politics. Instead, workers have a sense that if they pay their dues, they will be rewarded at some point in the future.

Workplace HarmonyPromotion based on seniority can also help maintain a more harmonious workplace. Workers who know they need to put in the necessary time with the company before advancement opportunities present

themselves are less likely to resent those who attained promotion because they worked for the organization longer. This can eliminate the backstabbing often associated with merit-based programs where employees may attempt to present themselves in the most favorable manner possible, sometimes by attempting to make coworkers look incompetent.

Motivation BoostA merit-based program, on the other hand, can provide motivation leading to increased productivity. Workers who recognize that the best performers are the ones who get ahead may put forth the extra effort they believe it takes to receive promotions. For instance, salespeople who realize that a sales manager position is awarded to the person with the highest sales numbers may strive to produce the desired results, generating additional revenue for the company in the process.

Reward for AbilityWorkers possess varying levels of skills and abilities, and a merit-based program rewards those who may have the most to offer the organization in the long run. While tenured employees offer the benefit of greater experience, this does not necessarily equate with more ability. A less experienced worker possessing a greater flair for innovation or creativity may be more likely to generate ideas that help the company move forward in the future

12 Discuss the factors influencing wage policies.

Factors Influencing Wage and Salary Structure and Administration The wage policies of different organizations vary somewhat. Marginal units pay the minimum necessary to attract the required number and kind of labour. Often, these units pay only the minimum wage rates required by labour legislation, and recruit marginal labor. At the other extreme, some units pay well above the going rtes in the labour market. A sound wage policy is to adopt a job evaluation programme in order to establish fair differentials in wage based upon differences in job contents. Besides the basic factors provided by a job description and job evaluation, those that are usually taken into consideration for wage and salary administration are: The organisations ability to pay; Supply and demand or labour; The prevailing market rate; The cost of living; Living wage; Productivity; Trade Unions Bargaining power; Job requirements;

Managerial attitudes; and Psychological and Sociological factors

Principles of Wage & Salary Administration The commonly suggested principles governing fixation of wage and salary are: (i) There should be a definite plan to ensure that differences in pay for jobs are based upon variations in job requirements, such as skill, effort, responsibility or job or working conditions, and mental and physical requirements. (ii) The general level of wage and salaries should be reasonably in fine with that prevailing in the labour market. The labor market criterion is most commonly used. (iii) The plan should carefully distinguish between jobs and employees. A job carries a certain wage rate, and a person is assigned to fill it at that rate. Exceptions sometimes occur in vary high-level jobs in which the job-holder may make the ob large or small, depending upon his ability a contributions. (iv) Equal pay for equal work, i.e., if two jobs have equal difficulty requirements, the pay should be the same, regardless of who fills them. (v) An equitable practice should be adopted for the recognition of individual differences in ability and contribution. For some units, this may take the form of rate ranges, with in-grade increases; in others, it may be a wage incentive plan; it still others, it may take the form of closely integrated sequences of job promotion. (vi) There should be a clearly established procedure for hearing and adjusting wage complaints. This may be integrated with the regular grievance procedure, if it exists. (vii) The employees and the trade union, if there is one, should be informed about the procedure used to establish wage rates. Every employee should be informed of his own position, and of the wage and salary structure. Secrecy in wage matters should not be used as a cover-up for haphazard and unreasonable wage programme. (viii) The wage should be sufficient to ensure for the worker and his family reasonable standard of living. Workers should receive a guaranteed minimum wage to protect them against conditions beyond their control. (ix) The wage and salary structure should be flexible to that changing conditions can be easily met. (x) Prompt and correct payments of the dues of the employees must be ensured and arrears of payment should not accumulate. (xi) The wage and salary payments must fulfill a wide variety of human needs, including the need for self-actualization. It has been recognized that money is the only from of incentive which is wholly negotiable, appealing to the widest possible of seekers. Monetary payments often act as motivators and satisfiers interdependently of other job factors.

13 Explain the different sources of recruitment.

Sources of RecruitmentThe different sources of recruitment are classified into two categories, viz., 1. 2. Internal : sources of recruitment are from within the organisation. External : sources of recruitment are from outside the organisation.

Internal Sources of Recruitment

The internal sources of recruitment are:1. 2. Promotions : Promotion means to give a higher position, status, salary and responsibility to the employee. So, the vacancy can be filled by promoting a suitable candidate from the same organisation. Transfers : Transfer means a change in the place of employment without any change in the position, status, salary and responsibility of the employee. So, the vacancy can be filled by transferring a suitable candidate from the same organisation. 3. 4. 5. Internal Advertisements : Here, the vacancy is advertised within the organisation. The existing employees are asked to apply for the vacancy. So, recruitment is done from within the organisation. Retired Managers : Sometimes, retired managers may be recalled for a short period. This is done when the organisation cannot find a suitable candidate. Recall from Long Leave : The organisation may recall a manager who has gone on a long leave. This is done when the organisation faces a problem which can only be solved by that particular manager. After he solves the problem, his leave is extended.

Merits of Internal Sources

The benefits / advantages / merits of using internal sources of recruitment:1. 2. 3. 4. 5. 6. It is time saving, economical, simple and reliable. There is no need of induction training because the candidate already knows everything about the organisation, the work, the employee, the rules and regulations, etc. It motivates the employees of work hard in order to get higher jobs in the same organisation. It increases the morale of the employees and it improves the relations in the organisation. It reduce executive turnover. It develops loyalty and a sense of responsibility.

Demerits of Internal SourcesThe limitations / demerits of using internal sources of recruitment:1. 2. 3. 4. 5. 6. It prevents new blood from entering the organisation. New blood brings innovative ideas, fresh thinking and dynamism into the organisation. It has limited scope because it is not possible to fill up all types of vacancies from within the organisation. The position of the person who is promoted or transferred will be vacant. There may be bias or partiality in promoting or transferring persons from within the organisation. Those who are not promoted will be unhappy. The right person may be promoted or transferred only if proper confidential reports of all employees are maintained. This involves a lot of time, money and energy.

External Sources of Recruitment

The external sources of recruitment are:1. Management Consultants : Management consultants are used for selecting higher-level staff. They act as a representative of the employer. They make all the necessary arrangements for recruitment and selection. In return for their services, they take a service charge or commission. 2. Public Advertisements : The Personnel department of a company advertises the vacancy in newspapers, the internet, etc. This advertisement gives information about the company, the job and the required qualities of the candidate. It invites applications from suitable candidates. This source is the most popular source of recruitment. This is because it gives a very wide choice. However, it is very costly and time consuming. 3. Campus Recruitment : The organisation conducts interviews in the campuses of Management institutes and Engineering Colleges. Final year students, who're soon to get graduate, are interviewed. Suitable candidates are selected by the organisation based on their academic record, communication skills, intelligence, etc. This source is used for recruiting qualified, trained but inexperienced candidates. 4. 5. Recommendations : The organisation may also recruit candidates based on the recommendations received from existing managers or from sister companies. Deputation Personnel : The organisation may also recruit candidates who are sent on deputation by the Government or Financial institutions or by holding or subsidiary companies.

Advantages of External SourcesThe benefits / merits / advantages of using external sources of recruitment:1. 2. 3. 4. It encourages young blood with new ideas to enter the organisation. It offers wide scope for selection. This is because a large number of suitable candidates will come for the selection process. There are less chances of bias or partiality. Here there is no need to maintain confidential records.

Limitations of External Sources

The demerits / limitations of using external sources of recruitment:1. 2. 3. 4. It is very costly. This is because advertisements, test, medical examination etc., has to be conducted. It is very time consuming. This is because the selection process is very lengthy. It may not develop loyalty among the existing managers. The existing managers may leave the organisation if outsiders are given higher post.

14 Discuss Maslows theory of motivation.

Maslow's Theory of Motivation - Hierarchy of NeedsIn 1943, Dr. Abraham Maslow 's article "A Theory of Human Motivation" appeared in Psychological Review, which were further expanded upon in his book: Toward a Psychology of Being In this article, Abraham H. Maslow attempted to formulate a needs-based framework of human motivation and based upon his clinical experiences with people, rather than as did the prior psychology theories of his day from authors such as Freud and B.F. Skinner, which were largely theoretical or based upon animal behavior. From this theory of motivation, modern leaders and executive managers find means of motivation for the purposes of employee and workforce management. Abraham Maslow's book Motivation and Personality (1954), formally introduced the Hierarchy of Needs.

The basis of Maslow's motivation theory is that human beings are motivated by unsatisfied needs, and that certain lower factors need to be satisfied before higher needs can be satisfied. According to Maslow, there are general types of needs (physiological, survival, safety, love, and esteem) that must be satisfied before a person can act unselfishly. He called these needs "deficiency needs." As long as we are motivated to satisfy these cravings, we are moving towards growth, toward self-actualization. Satisfying needs is healthy, while preventing gratification makes us sick or act evilly.

As a result, for adequate workplace motivation, it is important that leadership understands the needs active for individual employee motivation. In this manner, Maslow's model indicates that fundamental, lower-order needs like safety and physiological requirements have to be satisfied in order to pursue higher-level motivators along the lines of self-fulfillment. As depicted in the following hierarchical diagram, sometimes called 'Maslow's Needs Pyramid' or 'Maslow's Needs Triangle', after a need is satisfied, it stops acting as a motivator and the next need one rank higher starts to motivate as it attain psychological precedence.Self-Actualization

Esteem Needs

Social Needs

Safety Needs

Physiological Needs

Self-ActualizationSelf-actualization is the summit of Maslow's motivation theory. It is about the quest of reaching one's full potential as a person. Unlike lower level needs, this need is never fully satisfied; as one grows psychologically there are always new opportunities to continue to grow. Self-actualized people tend to have motivators such as: Truth Justice Wisdom Meaning

Self-actualized persons have frequent occurrences of peak experiences, which are energized moments of profound happiness and harmony. According to Maslow, only a small percentage of the population reaches the level of self-actualization.

Esteem NeedsAfter a person feels that they "belong", the urge to attain a degree of importance emerges. Esteem needs can be categorized as external motivators and internal motivators. Internally motivating esteem needs are those such as self-esteem, accomplishment, and self respect. External esteem needs are those such as reputation and recognition. Some examples of esteem needs are: Recognition (external motivator) Attention (external motivator) Social Status (external motivator) Accomplishment (internal motivator) Self-respect (internal motivator)

Maslow later improved his model to add a layer in between self-actualization and esteem needs: the need for aesthetics and knowledge.

Social NeedsOnce a person has met the lower level physiological and safety needs, higher level motivators awaken. The first level of higher level needs are social needs. Social needs are those related to interaction with others and may include: Friendship Belonging to a group Giving and receiving love

Safety NeedsOnce physiological needs are met, one's attention turns to safety and security in order to be free from the threat of physical and emotional harm. Such needs might be fulfilled by: Living in a safe area Medical insurance Job security Financial reserves

According to the Maslow hierarchy, if a person feels threatened, needs further up the pyramid will not receive attention until that need has been resolved.

Physiological NeedsPhysiological needs are those required to sustain life, such as: Air Water Food Sleep

According to this theory, if these fundamental needs are not satisfied, then one will surely be motivated to satisfy them. Higher needs such as social needs and esteem are not recognized until one satisfies the needs basic to existence.

Applying Maslow's Needs Hierarchy - Business Management ImplicationsIf Maslow's theory is true, there are some very important leadership implications to enhance workplace motivation, and you don't need a masters in applied psychology, for it to be evident. There are employee motivation opportunities by motivating each employee through their style of management, compensation plans, role definition, and company activities. Physiological Motivation: Provide ample breaks for lunch and recuperation and pay salaries that allow workers to buy life's essentials. Safety Needs: Provide a working environment which is safe, relative job security, and freedom from threats. Social Needs: Generate a feeling of acceptance, belonging, and community by reinforcing team dynamics. Esteem Motivators: Recognize achievements, assign important projects, and provide status to make employees feel valued and appreciated. Self-Actualization: Offer challenging and meaningful work assignments which enable innovation, creativity, and progress according to long-term goals.

Remember, everyone is not motivated by same needs. At various points in their lives and careers, various employees will be motivated by completely different needs. It is imperative that you recognize each employee's needs currently being pursued. In order to motivate their employees, leadership must be understand the current level of needs at which the employee finds themselves, and leverage needs for workplace motivation.

Maslow's Theory - Limitations and CriticismThough Maslow's hierarchy makes sense intuitively, little evidence supports its strict hierarchy. Actually, recent research challenges the order that the needs are imposed by Maslow's pyramid. As an example, in some cultures, social needs are placed more fundamentally than any others. Further, Maslow's hierarchy fails to explain the "starving artist" scenario, in which the aesthetic neglects their physical needs to pursuit of aesthetic or spiritual goals. Additionally, little

evidence suggests that people satisfy exclusively one motivating need at a time, other than situations where needs conflict. While scientific support fails to reinforce Maslow's hierarchy, his thery is very popular, being the introductory motivation theory for many students and managers, worldwide. To handle a number of the issues of present in the Needs Hierarchy, Clayton Alderfer devised the ERG theory, a consistent needs-based model that aligns more accurately with scientific research.

15 Explain the specific areas requiring examination under Human Resource Audit.

PERSONNEL AUDIT An audit is, properly speaking, an examination and verification of accounts and records. Personnel auditing refers to an examination and evaluation of policies, procedures and practices to determine the effectiveness of personnel management. In other words, personnel audit or periodical reviews of the effectiveness of a management o Personnel Records/Reports are concerned with: (a) The measurement of the effectiveness of personnel programmes and activities; and (b) The determination of what should or should not be done in the future as a result of such measurement. The effectiveness of a personnel programme, like that of personnel research, is dependent upon available information, and its scope is as wide as the field of personnel management. The performance of people is a complex product of personnel interest, qualifications, commitment and expectations on the one hand, and of the employment environment (including working assignments, working condition, supervisions, leader ship, opportunity and challenge) on the other. Because manager-employee relationships, from recruitment to retirement, are inter-related to compose the total system, no part of that system can be ignored. Objectives of Personnel Audit The objectives of a personnel audit are: 1. To review the whole system of management programmes in which a management develops, allocates and supervises human resources in an organisation with a view to determining the effectiveness of these programmes. 2. To seek explanation and information; that is, to get answers to such questions as: Why did it happen? and What happened? 3. To evaluate the extent to which line managers have implemented the policies which have already been initiated; and 4. To evaluate the personnel staff and employees. According to Gray, the primary purpose of personnel audit is to know how the various units are functioning and how they have been able to meet the policies and guidelines which were agreed upon;

and to assist the rest of the organisation by identifying the gap between objectives and results, for the endproduct of an evaluation should be to formulate plans for corrections or adjustments. Importance of Personnel Audit In modern times, personnel and industrial relations audits have been widely accepted as tools with which managers can control the programmes and practices of the personnel and industrials relations departments. The importance of a personnel audit has increased in recent years because of the following reasons. A change in managerial philosophy and theory, as a result of which a management now feels that the employees participation in the activities of an organizations, and their identification with it, has a tremendous influence on the working of that organisation. The changing role of the government, which intervenes more often and more extensively now, to control manpower management by an organisation with a view to protecting the interests of the employees, providing them with better working conditions and ensuring their economic security. The increasing role played by trade unions and their strength, as a result of which they often question managerial competence in industrial relations. The rising wages, changes in the skills of technical and professional workers, and the increasing expenditure incurred on the industrial relations department these are the factors which have influenced and encouraged the trend in favour of a personnel audit.

Need for Personnel Audit According to Yoder, the need for personnel audit is largely influenced by several conditions, some of these are:

The Number of Employees: Very small units, because of the very small number of persons they employ, require comparatively little in the way of a formal audit. Organizational Structure: Continuing feedback is facilitated if an organisation has a personnel department. Communication and Feedback: An effective two-way communications system often reduces the need for a formal audit. Location and Dispersion: The need for a formal audit is directly related, to the number of isolated plants. Status of an industrial Relations Manager: If he participates in top management plans, reports, discussions and decisions, the need for a formal audit may be less frequently felt. Administrative Style the greater the delegation of authority and decentralization of power, the greater the value of a regular and formal audit.

Scope of Personnel Audit

The scope of a personnel audit is very wide. It represents a whole man approach; that is, it assumes that the management of human resources involves much more than the practice of recruiting, hiring, retaining and firing employees. it examines the concept of people management by supervisor at all levels. In the words of the National Industries Conference Board of the United States, the top management is interested in auditing all the programmes relating to employees; regard less of where they originate, or the channels through which they are administered. The field of personnel audit includes:

Job analysis; Recruitment; Testing; Selection; Training; Management development; Promotions and transfers; Rating; Labour relations; Morale development; Employee benefit and services; Employee communication Employee counseling Wage and salary administration Collective Bargaining Personal Management, Industrial Relations and research

Records to be Used The main records and statistics used in a personnel audit are: (a) Time standards (b) Cost records

(c) Test scores; (d) Training scores (e) Interview records; (f) Work stoppages; (g) Medical reports; (h) Accident reports; (i) Grievance reports; (j) Turnover reports; (k) Unit labor costs; and (l) Payroll data. In other words, both quantitative and qualitative yardsticks should be used for purposes of evaluation. Monappa and Saiyadain provide a number of yardsticks and indices, which are: average in the levels of employee turnover or absenteeism; cost figures for each major activity or function; accident frequencies; grievances; suggestions; internal data indicators wage and salary surveys, employees state insurance scheme stabilities, productivity indications for certain jobs and/or machines, staffing and manning tables, job analysis and descriptions; and evaluation data regarding instruments. Methods of Analysis The methods for analysis data and information are: Comparison of various time periods; Comparisons between departments and other companies; Trend lines, frequency distributions and statistical correlations; Ratio analysis; for example, labour cost per unit of output; Classification of data by kinds of employees, products and departments; Graphical is pictorial displays,

Frequency and Types of Audit It is a common practice to have an annual evaluation or audit. At the end of each calendar or fiscal year, a report is presented, covering statistical information on the activities performed, the results achieved, the costs and expenditure involved, a d comparisons of objectives and accomplishments. By a perusal of this report a great deal of useful information can be had about personnel activities. In some organizations, however, this personnel audit is conducted periodically, generally in accordance with the needs of each organisatoin. For example, attitude or morale surveys on particular

subjects or topics may be conducted, or special reports may be prepared on such issues as grievances, the working or seniority rules of the effects of overtime practices and collective bargaining agreements. Two practices are generally followed while conducting a personnel audit. In some cases, the audit is conducted by those employed in the organisatoin itself-generally by auditors or accounts. In other cases, the services of outside experts are engaged. The former is known as internal audit, while the latter is designated external audit. The advantages of having an outside auditor are that: (a) He has a background of knowledge of what other are doing in similar situations; (b) He has a professional attitude toward his work; and (c) He is objective in that he personally will not become a party to recommended changes. What appointing an outside auditor certain conditions should be kept in mind regarding his work; (i) He cannot work miracles. He can diagnose ills and recommended treatment, but the patient must provide the will to get well. (ii) He must receive top managements support. (iii) He cannot and should not relieve management of its responsibility for making the decisions. He can recommended, but the acceptance of his recommendations rests with management. The Audit Report The report should invariably be submitted, within a reasonable time, after the audit work is over. It should avoid the journalistic style; be based solely on the findings; be presented in a factual manner that is readily available for future reference; make use of graphic techniques where appropriate; and not be any longer than is necessary. The following items should be contained in the report: 1. Table of Contents. 2. Summary and conclusion, in which the entire report is summarized for the top executives. 3. Preface giving a brief statement of the objectives 4. The report proper, in which a major dividsion is covered as a special section. Each section should be complete, and should contain as many supporting data as are practical without making it too voluminous. Other data should be included in the appendix. 5. Summary: this is more complete than summary and conclusions at the beginning of the Report. 6. Appendix. This includes supporting data that would be too voluminous to appear in the body of the Report. 7. It should be signed by all members making the audit. Certain aspects of an audit report may be made available to the employees/Other phases of the audit may be appropriate to give only to top management.

1. Bring out the characteristics of Human Resource Management.

Human resources may be defined as the total knowledge, skills, creative abilities, talents and aptitudes of an organization's workforce, as well as the values, attitudes, approaches and beliefs of the individuals involved in the affairs of the organization. It is the sum total or aggregate of inherent abilities, acquired knowledge and skills represented by the talents and aptitudes of the persons employed in the organization. The human resources are multidimensional in nature. From the national point of view, human resources may be defined as the knowledge, skills, creative abilities, talents and aptitudes obtained in the population; whereas from the viewpoint of the individual enterprise, they represent the total of the inherent abilities, acquired knowledge and skills as exemplified in the talents and aptitudes of its employees. Human Resource Management: Defined Human Resource Management has come to be recognized as an inherent part of management, which is concerned with the human resources of an organization. Its objective is the maintenance of better human relations in the organization by the development, application and evaluation of policies, procedures and programmes relating to human resources to optimize their contribution towards the realization of organizational objectives. In other words, HRM is concerned with getting better results with the collaboration of people. It is an integral but distinctive part of management, concerned with people at work and their relationships within the enterprise. HRM helps in attaining maximum individual development, desirable working relationship between employees and employers, employees and employees, and effective modeling of human resources as contrasted with physical resources. It is the recruitment, selection, development, utilization, compensation and motivation of human resources by the organization. Human Resource Management: Evolution The early part of the century saw a concern for improved efficiency through careful design of work. During the middle part of the century emphasis shifted to the employee's productivity. Recent decades have focused on increased concern for the quality of working life, total quality management and worker's participation in management. These three phases may be termed as welfare, development and empowerment. Human Resource Management: Nature Human Resource Management is a process of bringing people and organizations together so that the goals of each are met. The various features of HRM include: It is pervasive in nature as it is present in all enterprises. Its focus is on results rather than on rules.

It tries to help employees develop their potential fully. It encourages employees to give their best to the organization. It is all about people at work, both as individuals and groups. It tries to put people on assigned jobs in order to produce good results. It helps an organization meet its goals in the future by providing for competent and well-motivated employees. It tries to build and maintain cordial relations between people working at various levels in the organization. It is a multidisciplinary activity, utilizing knowledge and inputs drawn from psychology, economics, etc.

Human Resource Management: Scope The scope of HRM is very wide: 1. Personnel aspect-This is concerned with manpower planning, recruitment, selection, placement, transfer, promotion, training and development, layoff and retrenchment, remuneration, incentives, productivity etc. 2. Welfare aspect-It deals with working conditions and amenities such as canteens, crches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc. 3. Industrial relations aspect-This covers union-management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc. Human Resource Management: Beliefs The Human Resource Management philosophy is based on the following beliefs: Human resource is the most important asset in the organization and can be developed and increased to an unlimited extent. A healthy climate with values of openness, enthusiasm, trust, mutuality and collaboration is essential for developing human resource. HRM can be planned and monitored in ways that are beneficial both to the individuals and the organization. Employees feel committed to their work and the organization, if the organization perpetuates a feeling of belongingness.

Employees feel highly motivated if the organization provides for satisfaction of their basic and higher level needs. Employee commitment is increased with the opportunity to discover and use one's capabilities and potential in one's work. It is every manager's responsibility to ensure the development and utilisation of the capabilities of subordinates. Human Resource Management: Objectives To help the organization reach its goals. To ensure effective utilization and maximum development of human resources. To ensure respect for human beings. To identify and satisfy the needs of individuals. To ensure reconciliation of individual goals with those of the organization. To achieve and maintain high morale among employees. To provide the organization with well-trained and well-motivated employees. To increase to the fullest the employee's job satisfaction and self-actualization. To develop and maintain a quality of work life. To be ethically and socially responsive to the needs of society. To develop overall personality of each employee in its multidimensional aspect. To enhance employee's capabilities to perform the present job. To equip the employees with precision and clarity in transaction of business. To inculcate the sense of team spirit, team work and inter-team collaboration. Human Resource Management: Functions In order to achieve the above objectives, Human Resource Management undertakes the following activities: 1. Human resource or manpower planning. 2. Recruitment, selection and placement of personnel. 3. Training and development of employees. 4. Appraisal of performance of employees.

5. Taking corrective steps such as transfer from one job to another. 6. Remuneration of employees. 7. Social security and welfare of employees. 8. Setting general and specific management policy for organizational relationship. 9. Collective bargaining, contract negotiation and grievance handling. 10. Staffing the organization. 11. Aiding in the self-development of employees at all levels. 12. Developing and maintaining motivation for workers by providing incentives. 13. Reviewing and auditing manpower management in the organization 14. Potential Appraisal. Feedback Counseling. 15. Role Analysis for job occupants. 16. Job Rotation. 17. Quality Circle, Organization development and Quality of Working Life. Human Resource Management: Major Influencing Factors In the 21st century HRM will be influenced by following factors, which will work as various issues affecting its strategy: Size of the workforce. Rising employees' expectations Drastic changes in the technology as well as Life-style changes. Composition of workforce. New skills required. Environmental challenges. Lean and mean organizations. Impact of new economic policy. Political ideology of the Government. Downsizing and rightsizing of the organizations. Culture prevailing in the organization etc.

Human Resource Management: Futuristic Vision On the basis of the various issues and challenges the following suggestions will be of much help to the philosophy of HRM with regard to its futuristic vision: 1. There should be a properly defined recruitment policy in the organization that should give its focus on professional aspect and merit based selection. 2. In every decision-making process there should be given proper weightage to the aspect that employees are involved wherever possible. It will ultimately lead to sense of team spirit, team-work and inter-team collaboration. 3. Opportunity and comprehensive framework should be provided for full expression of employees' talents and manifest potentialities. 4. Networking skills of the organizations should be developed internally and externally as well as horizontally and vertically. 5. For performance appraisal of the employees emphasis should be given to 360 degree feedback which is based on the review by superiors, peers, subordinates as well as self-review. 6. 360 degree feedback will further lead to increased focus on customer services, creating of highly involved workforce, decreased hierarchies, avoiding discrimination and biases and identifying performance threshold. 7. More emphasis should be given to Total Quality Management. TQM will cover all employees at all levels; it will conform to customer's needs and expectations; it will ensure effective utilization of resources and will lead towards continuous improvement in all spheres and activities of the organization. 8. There should be focus on job rotation so that vision and knowledge of the employees are broadened as well as potentialities of the employees are increased for future job prospects. 9. For proper utilization of manpower in the organization the concept of six sigma of improving productivity should be intermingled in the HRM strategy. 10. The capacities of the employees should be assessed through potential appraisal for performing new roles and responsibilities. It should not be confined to organizational aspects only but the environmental changes of political, economic and social considerations should also be taken into account. 11. The career of the employees should be planned in such a way that individualizing process and socializing process come together for fusion process and career planning should constitute the part of human resource planning.

To conclude Human Resource Management should be linked with strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility. All the above futuristic visions coupled with strategic goals and objectives should be based on 3 H's of Heart, Head and Hand i.e., we should feel by Heart, think by Head and implement by Hand. 1. Differentiate between Human Resource Management and Personnel Management.

Although Human resource management and Personnel management are subdivisions of management, both are entirely different areas. Human resource management is the intentional and articulate approach to the management of an organizations most treasured assets - the employees who independently and cooperatively contribute to the accomplishment of the objectives of the business establishments. However, Personnel management deals with finding, using and maintaining a contented workforce. It is a noteworthy part of management concerned with employees at work and with their connection within the organization. Many students of management and laypeople often hear the term HRM or Human Resource Management and wonder about the difference between HRM and the traditional term Personnel Management. In earlier times, the Personnel Manager of a factory or firm was the person in charge of ensuring employee welfare and interceding between the management and the employees. In recent times, the term has been replaced with HR manager. This article looks at the differences in usage and scope of functions as well as the underlying theory behind these nomenclatures. In the section on introducing HRM, we briefly looked at the main differences. We shall look into them in more detail here. Personnel Management Traditionally the term personnel management was used to refer to the set of activities concerning the workforce which included staffing, payroll, contractual obligations and other administrative tasks. In this respect, personnel management encompasses the range of activities that are to do with managing the workforce rather than resources. Personnel Management is more administrative in nature and the Personnel Managers main job is to ensure that the needs of the workforce as they pertain to their immediate concerns are taken care of. Further, personnel managers typically played the role of mediators between the management and the employees and hence there was always the feeling that personnel management was not in tune with the objectives of the management. Human Resource Management With the advent of resource centric organizations in recent decades, it has become imperative to put people first as well as secure management objectives of maximizing the ROI (Return on Investment) on the resources. This has led to the development of the modern HRM function which is primarily concerned with ensuring the fulfillment of management objectives and at the same time ensuring that the needs of the resources are taken care of. In this way, HRM differs from personnel management not only in its broader scope but also in the way in which its mission is defined. HRM goes beyond the administrative tasks of personnel management and

encompasses a broad vision of how management would like the resources to contribute to the success of the organization. Personnel Management and HRM: A Paradigm Shift ? Cynics might point to the fact that whatever term we use, it is finally about managing people. The answer to this would be that the way in which people are managed says a lot about the approach that the firm is taking. For instance, traditional manufacturing units had personnel managers whereas the services firms have HR managers. While it is tempting to view Personnel Management as archaic and HRM as modern, we have to recognize the fact that each serves or served the purpose for which they were instituted. Personnel Management was effective in the smokestack era and HRM is effective in the 21st century and this definitely reflects a paradigm shift in the practice of managing people. Key differentiators between Human Resource Management and Personnel Management Human Resource Management assists better litheness while Personnel management set rules and regulations within every organization. In a management sense, personnel management comprises of measures, reliability and control while HRM management actions take account of business requirements, flexibility and dedication. Human Resource Management treats public as a resource or as an asset, which should be issued for the benefit of an organization whereas Personnel management is carried out in accordance with the welfare of organization. The former is an integral part of the overall execution of the affairs of a company whereas the latter is an independent task of an organization. Conclusion It is clear from the above paragraphs that HRM denotes a shift in focus and strategy and is in tune with the needs of the modern organization. HRM concentrates on the planning, monitoring and control aspects of resources whereas Personnel Management was largely about mediating between the management and employees. Many experts view Personnel Management as being workforce centered whereas HRM is resource centered. In conclusion, the differences between these two terms have to be viewed through the prism of people management through the times and in context of the industry that is being studied.

2. What are the steps to be followed in Human Resource Planning?

Designing the Management System

The