Human resouce managt.

First yearHuman resource Management

Paper-580/1.7

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Kawinder jit Rakesh Kumar

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Contents

• Unit I –Nature and Scope Of HRM Assign: Make an appointment with HR manager of a company whose turnover is

more than Rs. 100 crores p.a. understand the scope of HRM as practiced by this company.

• Unit II-.Human resource planning Assign.- if you are recruiting salesgirls for cosmetic counters in department

stores, what screening technique would you use to ensure that you have the right pool of candidates from which to choose?

• Unit III-Training and Development Human Resource Assign.-you have been asked to train a student to sit at the reception

during the regular receptionist’s lunch hour. This student has to be able to perform many, if not all, of the functions performed by the full-time employee. Design a suitable training program, and justify it.

• Unit IV-Performance Management and Appraisal Assign.-. Make an appointment with the HR manager of an industrial firm.

Understand how the company sets wages, including how it decides upon incentive payments. and how seniority is taken into account .

• Unit V-Employee and Labor Relations Assign.-. Make an appointment with a trade union leader to understand why

unions are important, and what functions they perform for their members and for the management

Unit I

Make an appointment with HR manager of a company whose turnover is more

than Rs. 100 crores p.a. understand the scope of HRM as practiced by this

company.

Human Resource Management - Introductionand brief overview

Human Resource Management, or HRM for short, captures all the activities that link the organization with the people it employs. HRM encompasses a broad set of activities, which aim towards personnel selection, personnel orientation, placement and separation, job analysis and design, job and performance appraisal, training, career planning, security safety and health, union relations and wages and salaries. HRM functions are performed within the predetermined managerial context. Thus, HRM does not include organizational strategic planning or management control functions. However, HRM is shaped according to the strategic priorities of the organization.

Scope of HRM

• HR planning how many qualified people are required, available at appropriate time &place.

• Job analysis and design

Job analysis is an analysis, in which information about job is systematically collected, evaluated and organized. Job design involves the detailed specification of the activities that the employee should perform as well as the skills and the experience he [the employee] should display.

Scope of HRM (cont.)• Recruitment and selection The selection process is

a series of specific steps used to decide which recruits should be hired. The process begins when recruits apply for employment and ends with the hiring decision. Though the final hiring decision is made by the immediate supervisor or manager in many cases the HRM department evaluates applicants in regard to their potential suitability through the use of valid procedures.

• Orientation and remuneration orientation is a socialization process via which an individual’s personality and organizational culture and values are met. Compensation is what employees receive in exchange for their contribution to the organization. When managed correctly, it helps the organization achieve its objectives and obtain, maintain, and retain a productive workforce

Scope of HRM (cont.)

• Motivation and communication are essential for solid accomplishments that superiors and subordinates can recognize and appreciate.

• Welfare, safety and health- employers must compensate workers for on-the-job injuries and comply with laws aimed at furthering societal objectives or face legal sanctions. The intent of these laws is to help employees deal with hardships and protect them from future workplace hazards. Although these mandate coverages are expensive, they are common in developed nations. The challenge for HR specialists becomes how to comply proactively with the least cost to the employer and the greatest

benefit for the employees.

Scope of HRM (cont.)

• Industrial relation - Union relations- the systems, rules and procedures used by unions and employers

FIELD STUDY REPORT ON

PROFILE: HPCL, a Fortune 500 company, is one of the major integrated

refining and marketing oil company in India. It is a mega Public Sector Undertaking (PSU) with Navratna status. HPCL accounts for about 16% of the market share and 10.3% of the nation’s refining capacity with two coastal refineries, one at Mumbai (West Coast) having a capacity of 5.5 MMTPA (Million Metric Tonnes Per Annum) and the other in Vishakapatnam (East Coast) with a capacity of 7.5 MMTPA. HPCL also holds an equity stake of 16.95% in Mangalore Refinery & Petrochemicals Limited (MRPL), a state-of-the-art refinery at Mangalore with a capacity of 9 MMTPA. HPCL is well on its way towards setting up another grassroots refinery in the state of Punjab, called Guru Gobind Singh Refineries Limited. HPCL also owns and operates the country’s largest Lube Refinery, producing Lube Base Oils of international standards. With a capacity of 335,000 Metric Tonnes. This refinery accounts for over 40% of the country’s total Lube Base Oil production.

To succeed in the competitive environment the Corporation had taken up HR initiatives such as

• Organizational transformation,• Balanced Score Card, • Competency Mapping, • bench marking of refineries and• terminals for product specifications / safety

Hindustan Petroleum Corporation Limited today is the second largest integrated oil Company in India-playing a significant role in the nation's economic development and growth.

PRODUCTS AT A GLANCE

• · PETROL• · DIESEL• · LIGHT DIESEL OIL• · LIQUEFIED PETROLEUM GAS• · KEROSENE• · AVIATION TURBINE FUEL• · NAPHTHA FURNACE OIL• · BITUMEN LOW SULPHUR• · HEAVY STOCK LUBES• · GREASES PROPYLENE

Human Resource Management : In HPCL HR department is ensuring focus in

enhancing the capabilities of the employees of the corporation to rise up to the emergingchallenges in the oil sector. Towards this

training and development receives continuousattention to our endeavor to be a learning organization. HPCl is very good at human

resources and has a total of 10891 employees as of 31.03.2007

HR planning

Human resource Panning is a forward looking function for HPCL where to assess manpower requirements in advance keeping the production schedules, market fluctuations, demand forecasts, etc in background

Recruitment :

By and large, the recruitment in Management Cadre is made in entry level positions. Applications are invited from bright, result-oriented, young and energetic persons with good initiative through open advertisement.

Campus Recruitment: HPCL also visits Engineering & Management Institutes for campus recruitment of

• · Engineers – From IITs,NITs, etc.• · MBAs – Premier Management Institutions• · Chartered Accountants – Institute of Chartered

Accountants of India (ICAI

applicable benefits

• · Contributory Provident Fund• · Contributory Medical Insurance Scheme• · Group Savings Linked Insurance Scheme• · Group Personal Accident Insurance Scheme• · Gratuity and are members of the HPCL Employees

Superannuation Benefit Fund• Scheme• · DA, HRA, Conveyance etc.• · Benefits like Furniture Loan, Vehicle Loan, Housing

Loan, Medical, Home Lease etc. are also available to Officers satisfying minimum service criteria

Motivation

HR policies at HPCl revolve around the basic tenet of creating a highly motivated, vibrant& self-driven team. The Company cares for each & every employee and has in-built systems to recognize & reward them periodically. Motivation plays an important role in HR Development. In order to keep its employees motivated the company has incorporated schemes such as Reward and Recognition Scheme, Grievance Handling Scheme and Suggestion Scheme. It is a fact that human displays best performance under pressures, but that should be relevant and unidirectional and must be generated by humans own system. The technique of making human to act on self-generated pressure is called “Motivation”“ Motivation is ignition to capability system, which has potential to earn huge benefit with almost no cost incur”.

Behavior Mapping It is of paramount importance to understand the behavioral profile of individual

team members to form a balanced Team. There are many tools are available but use of DISC measure is one among the most effectives. There are four tendencies in DISC profile

• D- Dominance- Inclination towards suppressing opposition to meet goal (Seek power authority, honor instant result, accept challenges, decisive, pick up authority, manage conflict, and prefer freedom)- Illogical & Unethical Dominant attitude generates grievance & unrest which are harmful for team bonding.

• I- Influence- Try to reach goal by influencing or convincing others. (Contacting &impressive, reasonably lenient, amicable, motivating, assertive and optimistic, enterprising and social) – The approach must be tactical, time bound task focused and shall not be carried away by personal feeling of individuals.

• S- Steadiness – Rely upon untiring cooperation get the solution (Consistent, develop expertise, helping, loyal, good listener, good pacifier stick to rules, norms, avoid conflict, avoid risk & change)- Attitude is well supportive for performing stage but poor contributor during forming, storming and norming stages.

• C-Conscientiousness—Work conscientiously in the domain of constant environment to ensure quality. (Systematic and sticks to standard and procedures, diplomatic in handling conflicts, strive for quality ,accuracy, prefer analytical approaches, clarity, controlled methodologies ,performance savvy , Cautious, make appreciation) – Good executing attitude but not participative in imprudently change management

SOCIAL OBJECTIVES

HPCL, as part of its social commitment, assists in community welfare programmes for uplifting the weaker sections of the society. The major socio-economic welfare oriented activities include various income generating schemes, vocational training, scholarships for SC/ST students, drinking water facilities, health and family welfare camps and distribution of free medicines, etc

• Good communication, oral and written

• Good organizational ability

• Self confidence

• A willingness to take on routine administrative tasks

• A ability to relate well with others

• Goal oriented

• Confident

• Patient &courteous

• Team player

• Complete product knowledge

• Pleasing personality

• Make sure candidate sale the product that has same sale cycle that you have

• Make sure candidate is good in calculations

• There should be different sale job for different sale person

• Candidate should maintain fairly same environment that is similar to yours

You have been asked to train a student to sit at a reception during the regular receptionist

lunch hour .this student has to perform many, if not all ,of the functions performed by the full

time employee .design a suitable training programme and justify it

Getting beyond “hello”-professional telephone courtesy and customer

Customer service excellence- how to deliver exceptional customer service

Delivering exceptional client service-how to build lasting partnership

Receptionist training

• Telephone Techniques• Dealing with incoming calls.• How to sound confident, interested and helpful.• Outgoing calls.• How to deal with telephone calls and visitors

simultaneously.• Complaint Handling• Establishing source of complaint.• Remaining polite and helpful.• Developing a Personal Commitment to Quality Service• Helping customers to make the right choice.• Discretion and tactfulness.

• Communication Skills and How to Use Them• Examining the importance of body language

and telephone behavior.• The Importance of First Impressions• Projecting a professional image.• Using your voice.• How to remain calm and composed under

pressure.• Customer Relations• What influences customer choice.• Understanding customer needs and

attitudes.• Dealing with awkward customers on the

telephone and face-to-face.

Unit IV

Make an appointment with the HR manager of an industrial firm. Understand how the company sets

wages, including how it decides upon incentive payments. and how seniority is taken into account .

Employee Compensation

One of the most difficult functions of HRM is that of determining

rates of monetary compensation Wage & salary refers to the establishment & implementation of the sound

policies & practices of the employees compensation . It includes such areas as job evaluation , surveys of wage & salary, analysis of relevant organizational problems ,development & maintenance of wage

structure, profit sharing & incentives etc.

Definition:

Compensation: Compensation may be defined” as money received in the

performance of work , plus many kinds of benefits & services that organization provides their employees .” Money is included under direct compensation while benefits come under Indirect Compensation. may consist of life ,accident & health insurance ,employer’s contribution to retirement ,pay for vacation or illness .

Wages: Wages are defined as the remuneration paid for the services of labor

in production, periodically to an employees /worker. These are generally refers to hourly rate or daily rate paid to such groups as production & maintenance employees (Blue Collar).

Salary: Salary on the other hand refers weekly or monthly rates paid to the

weekly or monthly rates paid to clerical, administrative & professional employees (White collar workers

PRINICPLES Of WAGE & SALARY ADMINISTRATION

• There should be definite plan to ensure that differences in pay for jobs are based upon difference in job requirements.

• The general level of wages and salaries should be reasonably in line with that prevailing in the labor market.

• Wage and salary plans and policies should be sufficiently flexible.

• Job evaluation (A systematic comparison done in order to determine the worth of one job relative to another ) must be done scientifically.

• Wage and salary administration plans must always be consistent with overall organizational plans and programmes.

ELEMENTS/INGREDIENTS OF A GOOD WAGE PLAN

• Should be easily understandable;

• Easy Computation;

• Capable of motivating Employees;

• Should provide remuneration as soon as employees have made efforts;

• Should be relatively stable

FACTORS AFFECTING WAGE AND SALARY ADMINISTRATION IN AN ORGANISATION

– The organization ability to pay: the companies with good sales & high profits have the ability to pay higher wages to the employees as compare to any other small scale company .

– Supply & Demand Force of labor : the demand for certain skills is high & supply is low the price to be paid for these skills will be high & similarly if demand for skill is low & supply of manpower is more than salary paid will be low .

– Prevailing Market Rate: The next factor is the prevailing market rate or known as going market rate or comparable wage ..

– The Cost of living: The Cost of living is the usually regarded as automatic minimum pay criterion & it is based on the increase or decrease in an acceptable cost of living index .

– The Living wages : It means that the wages paid should be adequate to enable employees to maintain himself & his family at a reasonable level of existence .

– Productivity : It is the another criteria measured in the terms of output per man hour ..

– Trade Union Bargaining Power : The trade unions play an important role ,generally the stronger & powerful the trade union, the higher wages,

– Job Requirements : The more difficult a job is more higher is the wages. Managerial Attitudes : The managerial attitudes desires to improve or maintain morale & to attract high caliber employees to reduce turnover& to provide high living standard .

– Psychological & Social Factors: These determine in a significant measure how hard a person will work for the compensation received

WAGE CONCEPTS

Minimum Wage: must provide not merely for the bare sustenance of life but for the preservation of the efficiency of the workers by providing some measure of education, medical requirements and amenities.

Living Wage: It represents a standard of living, which provides not merely for bare physical sustenance but decency, protection against illness, requirements of essential social needs and some insurance against important misfortunes;

Fair Wage: The wage, which is decided according to the productive contribution of the work done by him.

PAY FOR PERFORMANCE/INCENTIVE

There are several types of Performance linked reward schemes

• Schemes based on individual or small group performance including piece rates, traditional merit pay and sales commission.

• Incentive schemes which may relate pay to profits on the basis of pre determined formula.

• Bonus schemes based on contribution to productivity and profitability according to a predetermined formula with gains sometimes distributed among the individual employees on the basis of merit rating.

• Productivity bargaining.• Employee stock options plan (ESOP)• Competency based pay.

Here is an attempt to peer into the wage structure of workers in GTN Textiles , Alwaye (Kerala)

COMPANY PROFILEGTN Textiles LTD, Alwaye, was incorporated on

August 02, 1962 in Alwaye, and commissioned in 1964 for the manufacture of cotton yarn with a capacity of 12000 spindles. In 1966,the company was taken over by the present management, the GTN group.

The GTN group, which started with a single unit at Alwaye, has gradually grown into a multi location ,multi-unit textile group with spindle age nearing 150000. GTN Textiles, Alwaye unit has an installed capacity around 40000 spindles.

Group Companies:

• GTN Textiles Ltd: 150000 spindles(Alwaye, Medak, Nagpur & Shahad Nagar)• Patspin India Ltd: 100% export oriented

cotton yarn spinning unit in collaboration with M/S ITOCHU Corporation, Japan with latest Trutztscher, Rieter, Toyoda, Luwa, Spinlab, Uster equipments to produce counts from 245 to 805 combed of world class quality standard

The personnel or human resource manager has to identify these issues:

Pay& stability of employment Occupational stress

Participative management Recognition

Grievances procedure Adequacy of resources

Seniority& merit in promotionEmployment on permanent basis

Do you receive equal treatment in all matters like employeecompensation, job security etc?

Do you receive equal treatment in all Distributionmatters like employee compensation, jobsecurity etc?

Yes 96 No 4 Total 100

96% of the respondents agree that they receive equal treatment in all matters like employee compensation, job security etc

Are you able to meet your requirements with the currentwages?

Are you able to meet your requirements with Distributioncurrent wages? Yes 60 No 40 Total 10060% of the respondents admit that they are able to meet

their requirements with the current wages. 40% of the workers are not satisfied with the present wages.

Conclusion

The study has revealed that the indices wage strategy of workers at GTN

are favorable. But Wage system canbe made effective, if we take into consideration the indices

prevailing for the same. There should be clearly establishedprocedures for hearing& adjusting complaints concerning wages A

systematic performance appraisal system should beimplemented in the worker category also. Based on the feedback

obtained, areas of improvement can be identified, which promotes a positive work environment that contributes to productivity.

Unit V

Make an appointment with a trade union leader to understand why unions are

important, and what functions they perform for their members and for the management.

Trade union

A Trade Union is an association of workers in any trade or allied traders for the protection and enhancing their interests in regard to wages, hours and conditions of labor and/or the provision, from their common funds, of assistance to members during strikes, sickness, unemployment, old age etc.

The secretary of the Indian Labour Federation, or “Standing Committee of the All-India Trade Union Congress,” as it is called, is Mr. Chiman Lal, who claimed that under this federation are combined 97

unions, with 1,500,000 members.. Brief history: Trade Unionism is a new thing in India. Before

1918 it did not exist except for a few unions for white workers. It was out of the strike movement of 1918 that the unions came into existence. The first one was organised at Madras by Mr. B. P. Wadia. Since then the progress of the

movement has been both rapid and successful. The amount of success can be determined from the huge number of

organised members, representing about 25 per cent. of the total number of the factory-going workers.

Principle of Trade Unionism

• Unity is strength.

• Equal pay for equal work for the same job.

• Security of service.

Role of Trade Union:

• The Trade Unions are organized by the workers to solve the labor problems created by or due to industrialization. Various agencies in the field of labor are working to tackle these problems. They use the methods of labor legislation and labor administration. Trade Unions deal or handle these problems more effectively and efficiently. It tries to facilitate the welfare of workers; eliminate exploitation through organized action like collective bargaining, welfare work, strikes etc.

• Thus, it is concluded that the primary role of a Trade Union is to protect the workers and to channelize their efforts into more rational directions.

Functions of Trade Unions

• The functions of Trade Unions are wide and comprehensive. These functions have been termed as:

(i) Militant or protective functions, and(ii) Fraternal, ministrant or positive functions.The former functions aim at securing better conditions of

work and employment for members through militant activities such as strikes, gheraos etc., if there is a failure of collective bargaining. The latter functions provide benefits to their members and support them during strikes/lockouts or during periods of temporary unemployment by giving them financial support out of the funds raised with their contributions.

Why are they important?

The answer lies in the All India Central Council of Trade Unions- AICCTU is a fighting trade union centre of the Indian working class. AICCTU ’s motto of organizing the unorganized and unionizing the ununionized has established it as a trusted trade union centre among large sections of the most exploited and oppressed workers in different corners of India.

AICCTU fights •

for full democratic rights of the Indian people particularly of the rural poor, oppressed nationalities, women, national minorities and dalits.

• for enforcing the right to work and provision of social insurance for the old, weak and disabled.

• for a needs-based minimum wage leading to the formulation of a uniform national wage policy and for implementation of the principle of equal pay for equal work.

• for proper education, housing and health care services.• for introducing a six-hour working day with overall improvement in

working conditions.• for greater participation of women in organized production, the

eradication of gender discrimination and sexual harassment in the workplace, and for securing equal rights and full maternity benefits to all women workers.

• for abolition of child labor and all forms of bonded labor.• against the contract labor and all forms of bonded labor.• against industrial pollution, environmental degradation and industrial

health hazards and for adequate safety measures to prevent industrial accidents.

• for abolition of all occupations which go against basic human dignity and full provision of alternative employment for the affected workers.

Common Provisions in Union-Management Agreements

Union recognition. Normally near the beginning of a contract, this clause states management's acceptance of the union as the sole representative of designated employees.

Union security. To ensure that the union maintains members as new employees are hired and current employees quit, a union security clause commonly is demanded by the union.

Wage rates. The amount of wages to be paid to workers (or classes of workers) is specified in the wage clause.

Cost of living. Increasingly, unions are demanding and receiving automatic wage increases for workers when price levels go up.

Insurance benefits. This section specifies which insurance benefits the employer provides and how much the employer contributes toward those benefits. Frequently included benefits are life, hospitalization, and surgical insurance

• Pension benefits. The amount of retirement income, years of service required, penalties for early retirement, employer and employee contributions, and vesting provisions.

• Income maintenance. To provide workers with economic security, some contracts give guarantees of minimum income or minimum work. Other income maintenance provisions include severance pay and supplements to the state unemployment insurance.

• Time-off benefits. Vacations, holidays, rest breaks, wash-up periods, and leave-of absence provisions typically are specified in this clause.

• Strike/lockouts. It is common to find clauses in which the union promises not to strike for the duration of the contract in return for management's promise not to lock employees out of work during a labor dispute.

• Seniority clause. Unions seek contract terms that cause personnel decisions to be made on the basis of seniority. Often senior workers are given preferential treatment in job assignments, promotions, layoffs, vacation scheduling, overtime, and shift preferences.

• Management rights. Management must retain certain rights to do an effective job. These may include the ability to require overtime work, decide on promotions into management, design jobs, and select employees. This clause reserves to management the right to make decisions that management thinks are necessary for the organization's success.

Discipline. Prohibited employee actions, penalties, and disciplinary procedures are either stated in the

contract or included in the agreement by reference to the documents that contain the information.

Dispute resolution. Disagreements between the union and management are resolved through procedures

specified in the contract.

Thank you