1 Human Resource Human Resource Management Management
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Human Resource Human Resource ManagementManagement
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Organization as Input-Output Organization as Input-Output systemsystem
Acquiring inputs from environment
Using financial resources by human resources
Conversion Process
By human resources
OutputsExporting to Environment
By human resources
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Meaning:Meaning:
It is a process of bringing people and organizations It is a process of bringing people and organizations together so that the goals of each are met.together so that the goals of each are met.
According to Invancevich and Glueck : “HRM is According to Invancevich and Glueck : “HRM is concerned with the most effective use of people to concerned with the most effective use of people to achieve organizational and individual goals.”achieve organizational and individual goals.”
According to Milkovich and Boudreau : “Human According to Milkovich and Boudreau : “Human Resource Management is a series of integrated Resource Management is a series of integrated decisions that form the employment relationship; decisions that form the employment relationship; their quality contributes to the ability of the their quality contributes to the ability of the organizations and the employees to achieve their organizations and the employees to achieve their objectives.”objectives.”
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Features of Human Resource Features of Human Resource ManagementManagement•A process•Pervasive force•Action Oriented•Individually Oriented•People Oriented•Development Oriented•Integrating Mechanism•Comprehensive Function•Auxiliary Service•Inter-disciplinary Function•Continuous Function
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Scope of HRMScope of HRM
The scope of HRM is very wide.
The Indian Institute of Personnel Management has specified the scope of HRM as follows:
Personnel Aspect
Welfare Aspect
Industrial Relations Aspect
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Comparison on HRM and Personnel Comparison on HRM and Personnel ManagementManagement
There have been several approaches on the concepts of relationship between HRM and Personnel management:
Comparison includes studying Similarity and Differences.
Armstrong suggests common features of Personnel management and Human Resource Management:
1. Strategies of both stem from the business strategy.
2. Both these recognize that line managers are responsible for managing people. And the line managers are enabled by the advice and support of the personnel department to carry out their responsibilities.
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3. 3. The value of personnel management and those of soft version of human resource management are identical vis-à-vis respect for individual, integration of individual needs and organizational goals, and development of people to accomplish competence to facilitate individual and organizational interests.
4. Both attach importance to the function of matching people to ever-changing business requirements.
5. Both use the same range of selection, competence analysis, performance management, training, management development and reward management techniques.
6. The soft version of human resource management and personnel management stresses the process of communication and participates within the employee relations analysis.
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Differences between Personnel Differences between Personnel Management and HRM Management and HRM
1. Personnel Management is a routine, maintenance-oriented administrative function; human resource management places emphasis on a continuous development of people at work.
2. Personnel Management function is mainly reactive and responds to the demands of an organization whenever they arise, while HRM is proactive function (more future oriented)
3. Personnel Management is seen as independent function and sub-functions without giving due-regard to organizational strategies and processes. HRM is viewed as sub-system of the organization as it takes into account its linkages and interfaces with all other parts of the organization.
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4. 4. Personnel Management has a narrow focus it mainly works on improving the efficiency of personnel in isolation without emphasizing the relevance of efficiency in the organizational context, while HRM undertakes a systems view which attempts to create a proper organizational culture.
5. Personnel management emphasizes on economic rewards and traditional job design for better performances, while HRM emphasizes on the satisfaction of higher needs for motivating people, such as autonomous work groups, challenging jobs, creativity.
6. Personnel Management considers job satisfaction and higher moral as a cause of improved performance, while HRM works on the premise that better performance itself is a source of satisfaction and high morale.
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Evolution of HRMEvolution of HRMThe evolution to the current state of HRM has passed through several stages:
Industrial RevolutionIndustrial Revolution
Scientific ManagementScientific Management
Trade UnionismTrade Unionism
Human Relations MovementHuman Relations Movement
Human Resources ApproachHuman Resources Approach
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HRM in changing environmentHRM in changing environmentThe job of an HR manager is to balance the The job of an HR manager is to balance the demands and expectations of the external demands and expectations of the external groups with the internal needs and achieve the groups with the internal needs and achieve the assigned tasks in an efficient ways.assigned tasks in an efficient ways.
So the HRM practices in an organization are So the HRM practices in an organization are influenced by two broad categories of factors– influenced by two broad categories of factors– Environmental factors and Organizational Environmental factors and Organizational factorsfactors..
I) Environmental factors:-I) Environmental factors:-• Economic Environment• Legal Environment• Technological Environment• Socio-cultural Environment
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Economic EnvironmentEconomic Environment• Population v/s workforce
• Workforce market conditions• National Income• Inflationary pressures
Legal EnvironmentLegal Environment• Political Stability
Technological EnvironmentTechnological Environment• Reengineering work processes
• Flexible Manufacturing Systems
Socio-Cultural EnvironmentSocio-Cultural Environment• Slashing of jobs
• Trade Unions• Work force diversity
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II) Organizational factorsII) Organizational factors• Organization’s StrategyOrganization’s Strategy
• Organizational CultureOrganizational Culture
• Organizational Financial PositionOrganizational Financial Position
Corporate level Strategy
Business level Strategy
Functional Level Strategy
High Performing Culture
Low Performing Culture
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III) International PerspectiveIII) International Perspective
Globalization of industries has led to the Globalization of industries has led to the considerations of following international factors.considerations of following international factors.
Cultural DiversityCultural Diversity• Individualism and Collectivism
• Power Orientation• Uncertainty Avoidance• Masculinity• Time Orientation
Workforce DiversityWorkforce Diversity• Parent-country national
• Host-country National• Third-country National
Language DiversityLanguage Diversity
Economic DiversityEconomic Diversity
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Role of HR PractitionerRole of HR PractitionerThe HR department generally acts in an advisory capacity; it The HR department generally acts in an advisory capacity; it provides information, offer suggestions, counsels and assists provides information, offer suggestions, counsels and assists all the line managers in the organization.all the line managers in the organization.
Various roles:-Various roles:-
• Advisory Role
• The Conscience Role
• Counsellors Role
• Mediator’s Role
• Representative Role
• Clerical Role
• Fire-Fighting / Legal Role
• Welfare Role
• Problem solver
• Change agent
• Decision Maker
• Executive
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HR PoliciesHR PoliciesAfter the establishment of objectives of Human After the establishment of objectives of Human Resource Management, HR policies are to be Resource Management, HR policies are to be formulated.formulated.
Definition:-Definition:-
A policy is a plan of action.A policy is a plan of action.
Brewster and Richbell defined “HR policies as a set of proposals and actions that act as a reference point for managers in their dealings with employees.”-They constitute guides to action.They constitute guides to action.-They furnish the general standards or bases on They furnish the general standards or bases on which decisions are based.which decisions are based.-Their genesis lies in an organization’s values, Their genesis lies in an organization’s values, philosophy, concepts and principlesphilosophy, concepts and principles
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Advantages of HR PoliciesAdvantages of HR PoliciesPolicies are useful instructional devices, that offer Policies are useful instructional devices, that offer various advantages to HR working at various levels.various advantages to HR working at various levels.
• DelegationDelegation• UniformityUniformity• Better ControlBetter Control• Standards of efficiencyStandards of efficiency• ConfidenceConfidence• Speedy DecisionsSpeedy Decisions• Coordinating DevicesCoordinating Devices
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Obstacles in Administrating HR Obstacles in Administrating HR Policies:-Policies:-
1.1. Managers are reluctant to follow Managers are reluctant to follow guidelines as it curtails their freedom.guidelines as it curtails their freedom.
2.2. Conflict between implied and Conflict between implied and expressed policy.expressed policy.
3.3. Not easy to Communicate.Not easy to Communicate.
4.4. Makes managers rigid.Makes managers rigid.
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Characteristics of sound HR Characteristics of sound HR Policy.Policy.
While developing a HR Policy, management While developing a HR Policy, management must pay attention to:-must pay attention to:-• Relation of policies with objectivesRelation of policies with objectives• Easy to understandEasy to understand• PrecisePrecise• Stable as well as flexibleStable as well as flexible• Based on factsBased on facts• Appropriate numberAppropriate number• Just, fair and equitableJust, fair and equitable• ReasonableReasonable• Based on Reviews.Based on Reviews.
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Coverage of HR Policies:-Coverage of HR Policies:-a) Social responsibilitya) Social responsibility
EquityEquity
Quality of Work LifeQuality of Work Life
b) Employment Practicesb) Employment Practices
c) Promotion Policiesc) Promotion Policies
d) Development Policiesd) Development Policies
e) Relations Policiese) Relations Policies
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Sources of content for formulating Sources of content for formulating policiespolicies
• Past experiences of the organization.Past experiences of the organization.• Existing practices and experiences in other Existing practices and experiences in other
organizationsorganizations• Attitudes and philosophies of managementAttitudes and philosophies of management• Knowledge and experience gained by all Knowledge and experience gained by all
line managers and personnel managers in line managers and personnel managers in
handling personnel issues.handling personnel issues.• Organizational policies. Organizational policies.
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Functions of HRMFunctions of HRMAs HRM is the management of human resources in an organization and is concerned with the creation of harmonious working relationship among its participants and bringing about their utmost individual development.
Functions of HRMFunctions of HRM
Managerial functionsManagerial functions
Operative functionsOperative functions
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Managerial FunctionsManagerial Functions Management is a multi-purpose organ which has Management is a multi-purpose organ which has
three jobs, two of which are directly related to three jobs, two of which are directly related to personnel managing a business –personnel managing a business –
““managing employees” and the “work”managing employees” and the “work”
a)a) PlanningPlanning
b)b) OrganisingOrganising
c)c) DirectingDirecting
d)d) Coordinating and ControllingCoordinating and Controlling
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Operative FunctionsOperative Functions
The operative functions of HRM are The operative functions of HRM are concerned with the activities specifically concerned with the activities specifically dealing with:dealing with:
1)1) The Procurement FunctionThe Procurement Function
2)2) The Development FunctionThe Development Function
3)3) The Compensating FunctionThe Compensating Function
4)4) The Integration FunctionThe Integration Function
5)5) The Maintenance FunctionThe Maintenance Function
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HRM and Corporate ObjectivesHRM and Corporate Objectives
HRM is being used to develop competitive advantage HRM is being used to develop competitive advantage and, therefore, its role in strategic management has and, therefore, its role in strategic management has been well recognized. “Strategic management is the been well recognized. “Strategic management is the continuous process of relating the organization with its continuous process of relating the organization with its environment by suitable course of action involving environment by suitable course of action involving strategy formulation and its implementation.”strategy formulation and its implementation.”
Strategy is course of action through which the Strategy is course of action through which the organization relates itself with the environment so as organization relates itself with the environment so as to achieve its objectives.to achieve its objectives.
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Corporate mission
and objectives
Environmental opportunities and threats
Strategic Alternatives
Corporate strengths
and weaknesses
Personal Values and aspirations of
strategists
Choice of strategy
Strategy Implementation
Activating strategy
Structural implementation
Behavioral implementation
Functional implementation
Role of HRM
Acquiring, Developing,
Integrating, and Retaining right
personnel
Role of HRM in corporate strategic management process
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Human Resource PlanningHuman Resource Planning
“Human Resource Planning is the process by which an organization ensures that it has the right number and kind of people, at the right place, at the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives.”
- HRP is a process- It involves determination of needs- It also takes into account the manpower availability at
a future period.
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Importance of Human Resource PlanningImportance of Human Resource Planning
• Reservoir of Talent• Prepare People for Future• Expand or Contract• Cut Costs• Succession Planning
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Human Resource Planning ProcessHuman Resource Planning Process
Organizational Objectives, Plans and policies
Human Resource Planning
Identification of human resource gap
Actions plan for bridging gap
Forecasting supply of human resources
Shortage of human resources
Forecasting needs for human resources
Surplus human resources
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Steps in HRPSteps in HRP
1 Organizational objectives, plans and policies1 Organizational objectives, plans and policies
2. Human Resource Planning2. Human Resource Planning
Forecasting the demand and supply of Forecasting the demand and supply of human Resourceshuman Resources
3. Identification of Human Resource Gap3. Identification of Human Resource Gap
4. Action Plans4. Action Plans
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Techniques for Forecasting Human Techniques for Forecasting Human Resource NeedsResource Needs
• Managerial judgement MethodManagerial judgement Method• Delphi TechniqueDelphi Technique• Work-Study TechniqueWork-Study Technique• Ratio-Trend AnalysisRatio-Trend Analysis• Statistical and Mathematical ModelsStatistical and Mathematical Models
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Forecasting of Human Resource SupplyForecasting of Human Resource Supply
• Human Resource Flow ModelHuman Resource Flow Model• Human Resource InventoryHuman Resource Inventory
Skills InventorySkills Inventory
Management InventoryManagement Inventory
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Barriers to effective Human resource Barriers to effective Human resource PlanningPlanning
1.1. Improper Linkage between HRP and Improper Linkage between HRP and Corporate StrategyCorporate Strategy
2.2. Inadequate Appreciation of HRPInadequate Appreciation of HRP
3.3. Rigidity in AttitudesRigidity in Attitudes
4.4. Environmental UncertaintyEnvironmental Uncertainty
5.5. Conflict between Long-term and short-Conflict between Long-term and short-term HRPterm HRP
6.6. Inappropriate HR Information SystemInappropriate HR Information System
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Job AnalysisJob Analysis
Developing an Organization’s structure results in creating Developing an Organization’s structure results in creating jobs which have to be staffed.jobs which have to be staffed.
Job:-Job:- A job may be defined as a “ Collection or aggregation A job may be defined as a “ Collection or aggregation of tasks, duties and responsibilities which as a whole, are of tasks, duties and responsibilities which as a whole, are regarded as a regular assignment to individual employees”regarded as a regular assignment to individual employees”
Job AnalysisJob Analysis is the process of studying and collecting is the process of studying and collecting information relating to the operations and responsibilities of information relating to the operations and responsibilities of a specific job. The immediate products of the analysis are a specific job. The immediate products of the analysis are job descriptions and job specifications”job descriptions and job specifications”
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Uses of Job analysisUses of Job analysis
• Organizational DesignOrganizational Design• Acquisition of personnelAcquisition of personnel• Human resource DevelopmentHuman resource Development• Job evaluation and compensationJob evaluation and compensation• Performance AppraisalPerformance Appraisal• Safety and HealthSafety and Health• Employee counsellingEmployee counselling
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Determination of uses of job analysis
Strategic Choices in job analysis
Information Collection
Information Processing
Job Description
Job Specification
JOB ANALYSIS PROCESS
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Job DescriptionJob DescriptionA job description is an organized, factual statement of duties and responsibilities of a specific job.
It is basically descriptive in nature. It provides both organizational information and functional information.
1. Job Identification
2. Job Summary
3. Job duties and responsibilities
4. Relation to other jobs
5. Supervision
6. Machine
7. Working Conditions
8. Hazards
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Job SpecificationJob Specification
Job Specification is a statement of the minimum acceptable human qualities necessary to perform a job properly.
It tells what kind of person to recruit and for what qualities that person should be tested.
1. Physical Characteristics
2. Psychological Characteristics
3. Responsibilities
4. Other features of demographic nature
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RecruitmentRecruitment
Recruitment is the process of finding and attracting capable Recruitment is the process of finding and attracting capable applicants for employment. The process begins when new applicants for employment. The process begins when new recruits are sought and ends when their applications are recruits are sought and ends when their applications are submitted. The result is a pool of applicants from which new submitted. The result is a pool of applicants from which new employees are selected. ----- employees are selected. ----- Werther and DavisWerther and Davis
Human Resource Planning
Job Analysis
Recruitment Selection Placement
Linkage of recruitment to human resource Acquisition
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Purpose and Importance of RecruitmentPurpose and Importance of Recruitment
Recruitment represents the first contact that a company Recruitment represents the first contact that a company makes with the personnel having potential to be makes with the personnel having potential to be employed.employed.• It determines the present and future human resource It determines the present and future human resource requirements in conjunction with human resource requirements in conjunction with human resource planning.planning.• It helps to increase the pool of potential personnel.It helps to increase the pool of potential personnel.• It helps in increasing the success rate of the selection It helps in increasing the success rate of the selection process.process.• It reduces the rate of initial turnover rate.It reduces the rate of initial turnover rate.• It helps in evaluating the effectiveness of various It helps in evaluating the effectiveness of various recruitment techniquesrecruitment techniques• It helps to meet the organization’s legal and social It helps to meet the organization’s legal and social obligations regarding composition of its workforce.obligations regarding composition of its workforce.
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Factors affecting recruitmentFactors affecting recruitment
Internal factors:Internal factors:
Company’s pay package;Company’s pay package;
Quality of work life;Quality of work life;
Organizational culture;Organizational culture;
Career planning and growth;Career planning and growth;
Company’s size;Company’s size;
Company’s products and services;Company’s products and services;
Geographical spread of the company’s operations;Geographical spread of the company’s operations;
Company’s growth rate;Company’s growth rate;
Role of trade unions;Role of trade unions;
Cost of recruitment;Cost of recruitment;
Company’s name and fame.Company’s name and fame.
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External factors:External factors:
Socio economic factors;Socio economic factors;
Supply and demand factors;Supply and demand factors;
Employment rate;Employment rate;
Labour market conditions;Labour market conditions;
Political, legal and governmental factors;Political, legal and governmental factors;
Information systems.Information systems.
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Sources of RecruitmentSources of Recruitment
Sources are those where prospective employees are Sources are those where prospective employees are available like employment exchange while techniques available like employment exchange while techniques are those, which stimulate the prospective employees are those, which stimulate the prospective employees to apply for jobs like nomination by employees, to apply for jobs like nomination by employees, advertising, promotion etc.advertising, promotion etc.
Internal sourcesInternal sources• Present Permanent employeesPresent Permanent employees• Present temporary and casual employeesPresent temporary and casual employees• Retrenched or retired employeesRetrenched or retired employees• Dependents of deceased, disabled, retired and Dependents of deceased, disabled, retired and present employeespresent employees• PromotionsPromotions• TransfersTransfers
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External SourcesExternal Sources
External sources are those, which are outside External sources are those, which are outside the organizational pursuits. These include:-the organizational pursuits. These include:-• Campus recruitmentCampus recruitment• Private Employment agenciesPrivate Employment agencies• Public Employment exchangesPublic Employment exchanges• Professional AssociationsProfessional Associations• Data BanksData Banks• Casual ApplicationsCasual Applications• Trade UnionsTrade Unions• AdvertisementsAdvertisements• Employee ReferralsEmployee Referrals
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SelectionSelection
Once the recruitment is through with, the management Once the recruitment is through with, the management has to perform the function of selecting the right has to perform the function of selecting the right candidate at right time.candidate at right time.
This is done through selection procedure and it a This is done through selection procedure and it a customized one.customized one.
It basically depends upon several factorsIt basically depends upon several factors• Company’s RequirementCompany’s Requirement• Financial resources allocated for the sameFinancial resources allocated for the same• Company’s past recordsCompany’s past records• Company’s image in the marketCompany’s image in the market
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Steps in selection procedure : -Development bases for selection
Job Analysis Application Blanks
Human Resource Plan Written Examination
Recruitment Preliminary Interview
Business Games
Tests
Final Interview
Assess the fit between Medical Examination
The job and the candidate Line Manager’s Decision
Employment
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Selection ProcedureSelection Procedure
• Job Analysis:-Job Analysis:- It is the basis for selecting the right candidate It is the basis for selecting the right candidate
Job descriptionJob description
Job specificationJob specification
Employee specificationEmployee specification
2.2. Recruitment:-Recruitment:- It refers to the process of searching for It refers to the process of searching for prospective employees and stimulating them to apply for jobs prospective employees and stimulating them to apply for jobs in an organization.in an organization.
3.3. Application Blank:-Application Blank:- It is a form through which the data is It is a form through which the data is collected about the candidates and the initial screening is collected about the candidates and the initial screening is done.done.
- Personal Background Information- Personal Background Information
- Educational Attainments- Educational Attainments
- Work experience- Work experience
- Salary- Salary
- Personal Details- Personal Details
- References- References
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4. Written Examination:-4. Written Examination:- The candidate qualified through the The candidate qualified through the application blank is required to pass through the written test.application blank is required to pass through the written test.
- Quantitative knowledge- Quantitative knowledge
- Aptitude reasoning- Aptitude reasoning
- General knowledge- General knowledge
- English language knowledge- English language knowledge
5. Preliminary Interview:-5. Preliminary Interview:- This interview is to solicit necessary This interview is to solicit necessary information from the prospective candidates and to assess the information from the prospective candidates and to assess the applicant’s suitability for the job.applicant’s suitability for the job.
This is known as stand-up interview.This is known as stand-up interview.
At this level business games are also used as a tool for judging At this level business games are also used as a tool for judging candidates suitability for the job, which mainly includes the candidates suitability for the job, which mainly includes the techniques used to judge the situation handling and problem techniques used to judge the situation handling and problem solving.solving.
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6. Group Discussions:-6. Group Discussions:- This technique is used in order to This technique is used in order to secure further information regarding the candidates suitability for secure further information regarding the candidates suitability for the job. the job.
7. Tests:-7. Tests:- It is a most significant stage in the process of selection. It is a most significant stage in the process of selection.
These employment tests are an instrument designed to measure These employment tests are an instrument designed to measure the nature and degree of one’s psychological potentialities, based the nature and degree of one’s psychological potentialities, based on psychological factors, essential to perform a job.on psychological factors, essential to perform a job.
Types of testsTypes of tests• Aptitude testsAptitude tests• Achievement testsAchievement tests• Situational testsSituational tests• Interest testsInterest tests• Personality testsPersonality tests
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8. Final Interview:-8. Final Interview:- In this the interviewer matches the information In this the interviewer matches the information obtained about the candidates through various means, to the job obtained about the candidates through various means, to the job requirements and to the information obtained through his own requirements and to the information obtained through his own observation.observation.
Types of interviewTypes of interview
Preliminary Interview
Core Interview
Decision-Making Interview
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9. Medical examination:-9. Medical examination:- Certain jobs require certain physical Certain jobs require certain physical qualities like clear vision, perfect hearing, unusual stamina, qualities like clear vision, perfect hearing, unusual stamina, tolerance of hard working conditions.tolerance of hard working conditions.
10. Reference Checks:-10. Reference Checks:- After the completion of the final After the completion of the final interview and medical examination, the personal departments interview and medical examination, the personal departments checks the references with the candidates.checks the references with the candidates.
11. Final decision by line managers:-11. Final decision by line managers:- The final decision has The final decision has to be made by the line manager, under whom the candidate to be made by the line manager, under whom the candidate has to actually perform.has to actually perform.
12. Employment:-12. Employment:- The successful and the unsuccessful The successful and the unsuccessful candidates have to be informed and the appointment letter candidates have to be informed and the appointment letter must be sent.must be sent.
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PlacementPlacement
When once the candidate reports for duty, the When once the candidate reports for duty, the organization has to place him initially in that job for organization has to place him initially in that job for which he is selected.which he is selected.
- Employees are trained for the job and also in relation Employees are trained for the job and also in relation to related jobs.to related jobs.- Employee is placed on the actual position, only when Employee is placed on the actual position, only when the probation period is over.the probation period is over.- if the performance is satisfactory then only the if the performance is satisfactory then only the candidates are regularized.candidates are regularized.
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INDUCTIONINDUCTION
““Induction is the process of receiving and welcoming Induction is the process of receiving and welcoming an employee when he first joins a company and giving an employee when he first joins a company and giving him the basic information he needs to settle down him the basic information he needs to settle down quickly and happily and start work.”quickly and happily and start work.”
This process is having lot of significance, as the rate This process is having lot of significance, as the rate of turnover among new employees is very high in of turnover among new employees is very high in comparison to senior executives.comparison to senior executives.
(Lectures, handbooks, films, group seminars are used (Lectures, handbooks, films, group seminars are used to impart the information to new employees about the to impart the information to new employees about the environment of the job)environment of the job)
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The employees are made aware with:-The employees are made aware with:-
(i)(i) About the companyAbout the company• History, growth, management, products, History, growth, management, products,
markets, customers etcmarkets, customers etc• Basic conditions of employment-hours of Basic conditions of employment-hours of
work, shifts, holidays, retirement benefits work, shifts, holidays, retirement benefits etc.etc.
• Pay, allowances, deductionsPay, allowances, deductions• Grievances proceduresGrievances procedures• Canteen and restaurant facilitiesCanteen and restaurant facilities• Unions, negotiating machineriesUnions, negotiating machineries
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(ii) About the department(ii) About the department•The department head introduces the new employee The department head introduces the new employee to the important employees of the department.to the important employees of the department.•Functioning style of the departmentFunctioning style of the department•Work distribution, assignment, working hours etc.Work distribution, assignment, working hours etc.
(iii) About the superiors, subordinates etc(iii) About the superiors, subordinates etc•To person whom he has to reportTo person whom he has to report•To the persons with whom his work is relatedTo the persons with whom his work is related•To the persons who are to report himTo the persons who are to report him•To his colleaguesTo his colleagues
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Objectives of InductionObjectives of Induction• Putting new employees at easePutting new employees at ease•Creating the interest in his job and the companyCreating the interest in his job and the company•Providing basic information about working Providing basic information about working arrangementsarrangements•Indicating the standards of performance and Indicating the standards of performance and behaviourbehaviour•Informing them about training facilitiesInforming them about training facilities•Creating the feeling of social securityCreating the feeling of social security•Minimizing the reality shock which would be Minimizing the reality shock which would be caused due to incompatibility.caused due to incompatibility.
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Internal MobilityInternal Mobility
The lateral or vertical movement The lateral or vertical movement (promotion, transfer, (promotion, transfer, demotion or separation)demotion or separation) of an employee within an of an employee within an organization is called internal mobility. organization is called internal mobility.
It may take place between jobs in various departments or It may take place between jobs in various departments or divisions. divisions.
Some employees may leave the organization for reasons Some employees may leave the organization for reasons such as better prospects, retirement, terminations etc. such as better prospects, retirement, terminations etc. Such movements are known as external mobility.Such movements are known as external mobility.
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TransfersTransfers
A transfer is a change in job assignment. A transfer is a change in job assignment. It may involve a promotion or demotion or It may involve a promotion or demotion or no change at all in status and no change at all in status and responsibility.responsibility.
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Purpose of TransferPurpose of Transfer
• To meet the organizational requirements To meet the organizational requirements • To satisfy the employee needsTo satisfy the employee needs• To utilize employees betterTo utilize employees better• To make the employee more versatile To make the employee more versatile • To adjust the workforce To adjust the workforce • To provide reliefTo provide relief• To reduce conflictsTo reduce conflicts• To punish employee To punish employee
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PromotionPromotion
• Promotion refer to upward movement of an Promotion refer to upward movement of an employee from current from current job to employee from current from current job to another that is higher in pay, responsibility another that is higher in pay, responsibility and/or organizational level. promotion brings and/or organizational level. promotion brings enhanced status, better pay, increased enhanced status, better pay, increased responsibility, better working condition to the responsibility, better working condition to the promote.promote.
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Purpose of promotionPurpose of promotion
• To utilize the employee skill, knowledgeTo utilize the employee skill, knowledge• To develop competitive spirit To develop competitive spirit • To develop competent internal source of To develop competent internal source of
employeesemployees• To promote employee self-development To promote employee self-development • To promote interest in training To promote interest in training • To build loyaltyTo build loyalty• To reward committedTo reward committed
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DemotionDemotion
• Demotion is the downward movement of an employee Demotion is the downward movement of an employee in the organizational hierarchy with lower status and in the organizational hierarchy with lower status and pay.pay.
• It is a downgrading process where the employee It is a downgrading process where the employee suffers considerable emotional and financial loss in suffers considerable emotional and financial loss in the form of lower rank, power and status, lower pay the form of lower rank, power and status, lower pay and poor working conditions. and poor working conditions.
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Causes of DemotionCauses of Demotion
• A promote is unable to meet the challenges A promote is unable to meet the challenges posed by the new jobposed by the new job
• Due to adverse business Due to adverse business conditions,organization may decide to lay off conditions,organization may decide to lay off some and downgrade other jobs.some and downgrade other jobs.
• Demotion may be used as disciplinary tools Demotion may be used as disciplinary tools against errant employeesagainst errant employees
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SeparationsSeparations
““A separations is a decision that the individual A separations is a decision that the individual and the organization should part.” and the organization should part.” separations can take several forms, such as separations can take several forms, such as temporary leaves of absence, attrition, temporary leaves of absence, attrition, layoffs.layoffs.
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SeparationsSeparations
• Temporary leaves of absence Temporary leaves of absence • ResignationResignation• RetirementRetirement• DeathDeath• Lay off and retrenchment Lay off and retrenchment • OutplacementOutplacement• SuspensionSuspension• Discharge and dismissalDischarge and dismissal
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Training Organization and individual should develop and Organization and individual should develop and
progress simultaneously for their survival and progress simultaneously for their survival and attainment of mutual goals.attainment of mutual goals.
In order to meet these, organization’s formulate In order to meet these, organization’s formulate human resource training programmes.human resource training programmes.
According to dale S. Beach-
“Training is the organizational procedure by which people gain knowledge and skill for a definite purpose.”
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Need for trainingNeed for training
Training is not something just meant for new employees Training is not something just meant for new employees but even it is needed on a continuous basis.but even it is needed on a continuous basis.
• To match the employee specification with the job To match the employee specification with the job requirement and organizational needs.requirement and organizational needs.
• Organizational viability and the transformation Organizational viability and the transformation processprocess• Technological advancesTechnological advances• Organizational complexityOrganizational complexity• Human relation Human relation • Change in job assignment Change in job assignment
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Training objectivesTraining objectives
To prepare the employee both new and old to meet the present as To prepare the employee both new and old to meet the present as well as the changing requirement of the job.well as the changing requirement of the job.
• To prevent obsolescence.To prevent obsolescence.• To impart the new entrants the basic knowledge and skill To impart the new entrants the basic knowledge and skill
needed for the job.needed for the job.• To prepare the employee for higher level tasksTo prepare the employee for higher level tasks• To assist employees to function more effectively in their present To assist employees to function more effectively in their present
positionspositions• To build up a second line of competent officer and prepare them To build up a second line of competent officer and prepare them
to occupy more responsible position.to occupy more responsible position.• To ensure smooth and efficient working of a department.To ensure smooth and efficient working of a department.• To ensure economical output of required qualityTo ensure economical output of required quality
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ASSESSMENT OF TRAINING ASSESSMENT OF TRAINING NEEDSNEEDS
Training needs are identified on the basis of organizational analysis, job Training needs are identified on the basis of organizational analysis, job analysis and man analysis.analysis and man analysis.
• Organizational requirement/weaknessesOrganizational requirement/weaknesses• Department requirement/weaknessesDepartment requirement/weaknesses• Job specificationJob specification• Identifying specific problemsIdentifying specific problems• Anticipating failure problem.Anticipating failure problem.• Management' requestsManagement' requests• ObservationObservation• InterviewsInterviews• Group conferencesGroup conferences• Questionnaire surveys Questionnaire surveys
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PRINCIPLE OF TRAININGPRINCIPLE OF TRAINING
• Motivation Motivation • Progress informationProgress information• Reinforcement Reinforcement • PracticePractice• Full v/s partFull v/s part• Individual differences Individual differences
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AREAS OF TRAININGAREAS OF TRAINING
• Company policies and proceduresCompany policies and procedures• Specific skill Specific skill • Human relationsHuman relations• Problem solvingProblem solving• Managerial and supervisory skillsManagerial and supervisory skills• Apprentice trainingApprentice training
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Types of TrainingTypes of Training
A variety of training programmes are used in different A variety of training programmes are used in different organizations, depending on requirements and size of organizations, depending on requirements and size of their manpower. Some of the commonly used their manpower. Some of the commonly used programmes may be listed thus:programmes may be listed thus:
• Orientation TrainingOrientation Training• Job Instruction TrainingJob Instruction Training• Refresher TrainingRefresher Training• Apprenticeship TrainingApprenticeship Training• Vestibule TrainingVestibule Training
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Training methodsTraining methods
• On the job trainingOn the job training
– Job-rotationJob-rotation– CoachingCoaching– Job InstructionJob Instruction– Training Through Step-by-stepTraining Through Step-by-step– Committee AssignmentsCommittee Assignments
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• Off the job trainingOff the job training
– Vestibule TrainingVestibule Training– Role PlayingRole Playing– Lecture Method Lecture Method – Conferences or DiscussionsConferences or Discussions– Programmed Instruction Programmed Instruction
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Advantage of trainingAdvantage of training
• Increased productivityIncreased productivity• Heightened moraleHeightened morale• Reduced supervisionReduced supervision• Reduced accidentsReduced accidents• Increased organizational stability Increased organizational stability
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Evaluation of Training ProgrammeEvaluation of Training ProgrammeThe process of training evaluation has been defined as The process of training evaluation has been defined as “any “any attempt to obtain information on the effects of training attempt to obtain information on the effects of training performance and to assess the value of training in the light of performance and to assess the value of training in the light of that information.”that information.”
Evaluation helps in controlling and correcting the training Evaluation helps in controlling and correcting the training programme.programme.
Hamblin suggessted five levels at which evaluation of training can Hamblin suggessted five levels at which evaluation of training can take place:- take place:-
• ReactionsReactions• LearningLearning• Job BehaviourJob Behaviour• OrganizationOrganization• Ultimate ValueUltimate Value
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Methods of EvaluationMethods of Evaluation
• QuestionnairesQuestionnaires
• TestsTests
• InterviewsInterviews
• StudiesStudies
• Human Resource factorsHuman Resource factors
• Cost Benefit analysisCost Benefit analysis
• FeedbackFeedback
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CAREER PLANNINGCAREER PLANNING
Individual Career PlanningIndividual Career Planning
Organizational Career Organizational Career PlanningPlanning
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WHAT IS CAREER PLANNING?WHAT IS CAREER PLANNING?Career is all the jobs that are held during one’s working life.
Career Path is the sequential pattern of jobs that form a career.
Career Planning is the process by which one selects career goals and
the path to these goals
Career Development is those personal improvements one undertakes
to achieve a personal career plan.
Career Management is the process of designing and implementing
goals, plans and strategies to enable the organization to satisfy
employee needs while allowing individuals to achieve their career
goals.
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CAREER STAGES:CAREER STAGES:
1.1. ExplorationExploration
2.2. EstablishmentEstablishment
3.3. Mid-Career stageMid-Career stage
4.4. Late CareerLate Career
5.5. DeclineDecline
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P
E
R
F
O
R
M
A
N
C
E
AGEStages in Career Development
Exploration
Establish -ment
Transition from college
to work
Getting first job
and being
accepted
Mid- career
Performance increaseor
decrease or maintain
Late Career
The elder states person
Decline
Retirement
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NEED FOR CAREER PLANNINGNEED FOR CAREER PLANNING
To attract competent persons and to retain them in To attract competent persons and to retain them in
the organizationthe organization
To provide suitable promotional opportunitiesTo provide suitable promotional opportunities
To enable the employees to develop and make them To enable the employees to develop and make them
ready to meet future challengesready to meet future challenges
To increase the utilization of managerial reservesTo increase the utilization of managerial reserves
To correct employee placement To correct employee placement
To reduce employee dissatisfaction and turnoverTo reduce employee dissatisfaction and turnover
To improve motivation & morale.To improve motivation & morale.
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PROCESSPROCESS
Individual needs and aspirations
Organizational needs and
opportunities
Individual strengths and weaknesses
Placement on career
path
Review of
career plans
Career Planning Process
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Benefits of Career Planning to EmployeesBenefits of Career Planning to Employees
In the present context, because of change in the In the present context, because of change in the perspective of criteria for measuring success, the perspective of criteria for measuring success, the role of career planning for employees has role of career planning for employees has expanded.expanded.
Career planning benefits employees in following Career planning benefits employees in following ways:-ways:-
• Explicit career pathExplicit career path• Focused self-DevelopmentFocused self-Development• Increased productivityIncreased productivity
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Career Planning Benefits Career Planning Benefits to Organizationto Organization
From an organization’s point of view, career planning has a long-term orientation for filling various positions from internal sources. When this practice is followed, the organization derives the following benefits from career planning:
• Assured availability of talent• Attracting and retaining talent• Promoting organizational image• Protecting Interests of Special Groups of Employees
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SUCCESSION PLANNINGSUCCESSION PLANNINGDefinitionDefinition: A succession plan is a plan for : A succession plan is a plan for
identifying who is currently in post and who is identifying who is currently in post and who is available and qualified to take over in the event of available and qualified to take over in the event of retirement, voluntary retirement, dismissalretirement, voluntary retirement, dismissal
Three Main Elements.Three Main Elements.- The purpose of succession planning is to identify and
develop people to replace current job holders in key positions.
- It enables to maintain the steady flow of internal talent to fill important vacancies
- It emphasizes on “hiring from within” and creates a healthy environment, where employees have careers and merely job.
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Need for Succession PlanningNeed for Succession Planning
Organizations exist as on-going concerns while personnel come in and go out on regular basis. Therefore, the continued existence of an organization over time requires a succession of personnel to key positions.
So, this basically requires the succession planning:-• Identification of right personnel• Grooming of successors• Boosts the morale of meritorious employees
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Measures for effective Succession Measures for effective Succession PlanningPlanning
Since succession planning is essential for every large organization but obstacles generate due to faulty organizational practices, some measures are needed to make succession planning effective.
• Involvement of Supervisory Board• Driven by CEO• Procedural Consistency• External benchmarking• Pool of Successors• Objectivity• Application of emotional intelligence
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Executive DevelopmentExecutive Development
It is a systematic process of growth and development by which managers develop their abilities to manage
Role of the organization:
The role of the company in management development is to establish the programme & the development opportunities for its present and potential managers.
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Who is a manager and what does he Who is a manager and what does he do?do?
The word manager has been used to mean people at different levels of hierarchy.
All those who perform all or some of the basic functions of management to some degree regularly or occasionally are known as managers.
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Knowledge and skills of the manager: Knowledge and skills of the manager:
1}1} Technical Skills : -
2} Human Skills : -
3} Conceptual Skills : -
These skills need constant up gradation as the process of evolution of executive development programme has gained momentum.
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Evolution of executive Evolution of executive development:development:
Shift from owner managed to professionally managed enterprises.
Management has been recognized as a distinct kind of occupation consisting of acquired skills and a unified body of knowledge.
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Objectives of executive developmentObjectives of executive development
To overhaul the management machinery. To improve the performance of the managers. To give the specializes on overall view of the function of
an organization and equip them to co-ordinate each other’s efforts.
To identify the persons with the required potential and prepare them for positions.
To increase the morale of employees. To increase the versatility of the mgt. Group. To keep the executives updated with the changes in
their fields. To improve thought process and analytical ability. To stimulate creative thinking.
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Essential ingredients of the executive Essential ingredients of the executive development programmes.development programmes.
Analysis of organizational present and development needs.
Appraisal of present management talent.
Inventory of management manpower.
Planning of individual development programme.
Establishment of development programme.
Evaluation of the programme.
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Techniques of management developmentTechniques of management development
There are mainly two types of techniques by which managers can acquire the knowledge, skills and attitudes and make themselves competent.
Techniques
On – the Job Off – the Job
Coaching The case methodIncident method
Job Rotation Role playingIn basket method
Understudy Business gamesSensitivity training
Multiple Management SimulationGrid training Conferences
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On the Job Techniques: -On the Job Techniques: -
Job Rotation
Under study
Multiple management
Coaching
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Off – the Job Techniques: -Off – the Job Techniques: -
• Incidents method• Role playing• In-basket method• The case study• Business games• Simulation• Managerial grid• Conferences• lectures
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ORGANISATIONAL ORGANISATIONAL
RENEWALSRENEWALS
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ORGANISATION: ORGANISATION:
Can be defined as a group of people combined together be defined as a group of people combined together for accomplishment of a common goal….for accomplishment of a common goal….
RENEWALS : RENEWALS :
Can be defined as a rejuvenating activity……. Can be defined as a rejuvenating activity…….
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THEN WHAT IS ORGANISATIONAL THEN WHAT IS ORGANISATIONAL RENEWALS??RENEWALS??
Can be defined as an activity of making change in the Can be defined as an activity of making change in the internal environment commensurating with the internal environment commensurating with the external environment……. external environment…….
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NEED FOR ORGANISATIONAL NEED FOR ORGANISATIONAL RENEWALSRENEWALS
Changing economic landscape Changing economic landscape Customer’s awareness Customer’s awareness Technological changesTechnological changes
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EFFECTS OF “ORGANISATIONAL EFFECTS OF “ORGANISATIONAL RENEWALS”RENEWALS”
POSITIVE EFFECTSPOSITIVE EFFECTS Coping up with the changing environment.Coping up with the changing environment. Adoption of new techniques.Adoption of new techniques. Freedom from monotonous jobs.Freedom from monotonous jobs. Increase in the efficiency. Increase in the efficiency.
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REQUISITES FOR THE REQUISITES FOR THE IMPLEMENTATION OF ORG. IMPLEMENTATION OF ORG. RENEWALS………RENEWALS……… Vision defined by leadership.Vision defined by leadership. Managing the risk.Managing the risk. Innovation starts with creativity.Innovation starts with creativity. Organizational integration Organizational integration
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IMPROVING BUSINESS BY IMPROVING BUSINESS BY REDESIGNING WORK SYSTEM….REDESIGNING WORK SYSTEM….
Studying the overall system.Studying the overall system.
Interconnectedness of the sub-systems.Interconnectedness of the sub-systems.
How the system fits into the environment.How the system fits into the environment.
““What if “ scenario.What if “ scenario.
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RENEWAL FRAMEWORK….RENEWAL FRAMEWORK….
GET GROUNDED. GET GROUNDED. GET REAL.GET REAL. GET GOING.GET GOING.
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Compensation SystemCompensation System
An organization exists to accomplish the specific An organization exists to accomplish the specific goals and objectives. The employees hired by the goals and objectives. The employees hired by the organization helps in the fulfillment of these goals. organization helps in the fulfillment of these goals.
These employees have their own needs. Needs can be These employees have their own needs. Needs can be satisfied by providing money, goods and / or satisfied by providing money, goods and / or services in return of their services. services in return of their services.
The organizations have to use reward system which The organizations have to use reward system which helps in building a competitive / strategic helps in building a competitive / strategic advantage. advantage.
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Compensation SystemCompensation System
“ Compensation includes direct cash payments, indirect payments in the form of employee benefits and incentives to motivate employees to strive for higher levels of productivity.”
Its components:-• Wage and Salary• Incentives• Fringe benefits• Perquisites
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Compensation Systems Should Compensation Systems Should Include: - Include: -
1)1) Signal to employees the major objectives of the Signal to employees the major objectives of the organizations, such as quality, customer focus etc;organizations, such as quality, customer focus etc;
2)2) Attract and retain the talent, an organization needs;Attract and retain the talent, an organization needs;
3)3) Encourage employees to develop the skills and Encourage employees to develop the skills and abilities they need; abilities they need;
4)4) Motivate employees to perform effectively;Motivate employees to perform effectively;
5)5) Create the type of culture the company seeks to Create the type of culture the company seeks to engender. engender.
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Compensation Management ProcessCompensation Management Process
Organization’s Strategy
Compensation Policy
Job Analysis & Evaluation
Analysis of contingent factors
Design and implementation of compensation plan
Evaluation and Review
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Equity TheoryEquity Theory
Employees want to be treated fairly. Equity is the Employees want to be treated fairly. Equity is the balance between the inputs an individual brings to a balance between the inputs an individual brings to a job and the outcomes he / she receives from it.job and the outcomes he / she receives from it.
Employee inputs include:- Employee inputs include:- Experience, education, special skills, effort and time Experience, education, special skills, effort and time
worked.worked.
Outcomes include:-Outcomes include:-Pay, benefits, achievement, recognition and any other Pay, benefits, achievement, recognition and any other
rewards. rewards.
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Designing Equitable Compensation Designing Equitable Compensation Systems:-Systems:-
THERE ARE THREE ELEMENTS OF EQUITY:-THERE ARE THREE ELEMENTS OF EQUITY:-
Internal Equity:-Internal Equity:- Refers to the relation ship among jobs Refers to the relation ship among jobs within a single organization.within a single organization.
External Equity:-External Equity:- Refers to comparisons among Refers to comparisons among individuals in the same job within the same individuals in the same job within the same organization.organization.
Establishing Internal Equity:-Establishing Internal Equity:- Job evaluation methods. Job evaluation methods.
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Job EvaluationJob Evaluation
Job evaluation deals with money and work. It determines Job evaluation deals with money and work. It determines the relative worth or money value of jobs. the relative worth or money value of jobs.
Wendell l. French defined job evaluation as, “a Wendell l. French defined job evaluation as, “a process of determining the relative worth of the process of determining the relative worth of the various jobs within the organisation, so that various jobs within the organisation, so that differential wages may be paid to jobs of different differential wages may be paid to jobs of different worth . worth .
Thus, job evaluation may be defined as a process of Thus, job evaluation may be defined as a process of determining the relative worth of jobs, ranking and determining the relative worth of jobs, ranking and grading them by comparing the duties and grading them by comparing the duties and responsibilities like skill, knowledge of a job with other responsibilities like skill, knowledge of a job with other jobs with a view to fix compensation. jobs with a view to fix compensation.
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Objectives of Job - EvaluationObjectives of Job - Evaluation(1)(1) To gather data and information relating to job To gather data and information relating to job
description, job specification and employee description, job specification and employee specifications of various jobs. specifications of various jobs.
(2)(2) To compare the duties, responsibilities and demands To compare the duties, responsibilities and demands of a job with that of other jobs. of a job with that of other jobs.
(3)(3) To determine the hierarchy and place of various jobs To determine the hierarchy and place of various jobs in an organisation. in an organisation.
(4)(4) To determine the ranks or grades of various jobs.To determine the ranks or grades of various jobs.
(5)(5) To ensure fair and equitable wages on the basis of To ensure fair and equitable wages on the basis of relative worth or value of jobs. relative worth or value of jobs.
(6)(6) To minimise wage discrimination based on sex, age, To minimise wage discrimination based on sex, age, caste, region, religion etc. caste, region, religion etc.
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Procedure of Job - EvaluationProcedure of Job - Evaluation
The basic procedure of job evaluation is to compare the The basic procedure of job evaluation is to compare the job content of one job with those of another job. job content of one job with those of another job.
INDIAN INSTITUTE OF PERSONNEL MANAGEMENT INDIAN INSTITUTE OF PERSONNEL MANAGEMENT has evolved the following steps for evaluating job. has evolved the following steps for evaluating job.
1}1} Analyse and prepare job descriptionAnalyse and prepare job description
2}2} Select and prepare a job evaluation plan. Select and prepare a job evaluation plan.
3}3} Classify jobs Classify jobs
4}4} Install the programme Install the programme
5}5} Maintain the programme.Maintain the programme.
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Essentials for the of job evaluation Essentials for the of job evaluation programmeprogramme
1)1) Compensable factors should represent all of the Compensable factors should represent all of the major aspects of job content. major aspects of job content.
Avoid duplication in excess.Avoid duplication in excess. Be definable & measurable Be definable & measurable Not excessive cost. Not excessive cost. 2)2) Operating managers must be convinced about the Operating managers must be convinced about the
techniques and programmes.techniques and programmes.3)3) Complete information has to be provided to the Complete information has to be provided to the
employeesemployees4)4) All groups and grades of employees must be covered All groups and grades of employees must be covered
under this programmeunder this programme5)5) The techniques selected must be understandableThe techniques selected must be understandable6)6) Trade union’s acceptance and support must be Trade union’s acceptance and support must be
obtained. obtained.
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Job Evaluation Methods / Job Evaluation Methods / TechniquesTechniques
Job Evaluation Methods / TechniquesJob Evaluation Methods / Techniques
Quantitative Quantitative Qualitative Qualitative
Points RatingPoints Rating Factors Factors RankingRanking
Method Method Comparison Comparison MethodMethod
MethodMethod
Job Job classificationclassification
& Grading & Grading MethodMethod
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Non – Quantitative methodNon – Quantitative method
Ranking MethodRanking Method(a)(a) Simple RankingSimple Ranking
(b)(b) Ranking the key jobsRanking the key jobs
(c)(c) Paired ComparisonPaired Comparison
(d)(d) Single factor ranking method. Single factor ranking method.
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ADVANTAGESADVANTAGES
1]1] It is a simplest and most cost effective method.It is a simplest and most cost effective method.
2]2] This method is appropriate in small This method is appropriate in small organization.organization.
3]3] It is useful as a first and basic step of job It is useful as a first and basic step of job
evaluation. evaluation.
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DISADVANTAGESDISADVANTAGES
1]1] This provides no yardstick for measuring the This provides no yardstick for measuring the relative worth of one job to another. relative worth of one job to another.
2]2] Job requirements, job specifications and Job requirements, job specifications and employee specifications are not considered in employee specifications are not considered in evaluationevaluation
3]3] It does not indicate the extent or degree to It does not indicate the extent or degree to which one job is worthy than the other. which one job is worthy than the other.
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JOB CLASSIFICATION AND JOB CLASSIFICATION AND GRADING METHODSGRADING METHODS
Class and grade are used differently in this method.Class and grade are used differently in this method.
A GRADE is a group of different jobs of similar difficulty A GRADE is a group of different jobs of similar difficulty or requiring similar knowledge and skill to perform. or requiring similar knowledge and skill to perform.
A CLASS is a subdivision of a given occupation.A CLASS is a subdivision of a given occupation.
Under this method, jobs at different levels in the Under this method, jobs at different levels in the organizational hierarchy are divided into various organizational hierarchy are divided into various grades with a clear cut definition of each grade.grades with a clear cut definition of each grade.
Grades are formulated on the basis of nature of tasks, Grades are formulated on the basis of nature of tasks, requirements of skill, knowledge, responsibilities and requirements of skill, knowledge, responsibilities and authority of various jobs. authority of various jobs.
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QUANTITATIVE TECHNIQUESQUANTITATIVE TECHNIQUES
POINTS RATING METHOD:-POINTS RATING METHOD:-
This is a first method developed on the quantitative This is a first method developed on the quantitative basis. basis.
This method is analytical in the sense that the jobs are This method is analytical in the sense that the jobs are broken into components for the purpose of broken into components for the purpose of comparison.comparison.
The factors like skill, knowledge, responsibility, working The factors like skill, knowledge, responsibility, working conditions etc are given numerical values. These conditions etc are given numerical values. These totals are calculated and the values for each job is totals are calculated and the values for each job is calculated and accordingly compared. calculated and accordingly compared.
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ADVANTAGES : -ADVANTAGES : -
1)1) Same pay (rates) scale can be arrived at for the Same pay (rates) scale can be arrived at for the same jobs.same jobs.
2)2) Definitions are written in applicable terms to the Definitions are written in applicable terms to the jobs.jobs.
3)3) Points score cannot be manipulated.Points score cannot be manipulated.
4)4) Wage differentials would be systematic and Wage differentials would be systematic and according to the content of job.according to the content of job.
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DISADVANTAGES : -DISADVANTAGES : -
1)1) It is difficult to determine factor levels and assign It is difficult to determine factor levels and assign point values.point values.
2)2) It is somewhat difficult to explain this method to It is somewhat difficult to explain this method to employees.employees.
3)3) Operation of this method needs heavy expenditure. Operation of this method needs heavy expenditure.
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FACTOR COMPARISON METHODFACTOR COMPARISON METHOD
this method is based on both principles of points rating this method is based on both principles of points rating and ranking.and ranking.
Under this, first the components sub – factors are Under this, first the components sub – factors are ranked under various factor (rating) headings. ranked under various factor (rating) headings.
Then monetary values are assigned to the components Then monetary values are assigned to the components or sub – factors. or sub – factors.
Thus, each job is ranked a number of times. Thus, each job is ranked a number of times.
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ADVANTAGESADVANTAGES
1)1) It is analytical $ quantitative It is analytical $ quantitative
2)2) It is a combination of 2 good methods. It is a combination of 2 good methods.
3)3) Modus operandi is really understandable.Modus operandi is really understandable.
4)4) The technique is reliable and valid compared to The technique is reliable and valid compared to other techniques as it consists of 2 aspects other techniques as it consists of 2 aspects
factor rank order factor rank order
factor comparisonfactor comparison
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DISADVANTAGESDISADVANTAGES
1)1) It is costly and somewhat difficult to operate It is costly and somewhat difficult to operate compared to the conventional non – quantitative compared to the conventional non – quantitative methods. methods.
2)2) This technique does not consider all the sub – This technique does not consider all the sub – factors as the operation of the system would be factors as the operation of the system would be difficult if it considers all the factors.difficult if it considers all the factors.
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ESTABLISHING EXTERNAL ESTABLISHING EXTERNAL EQUITYEQUITY
Employers need to compete for the skills and knowledge Employers need to compete for the skills and knowledge they require to operate their businesses ----- in order they require to operate their businesses ----- in order to attract workers with needed skills and to motivate to attract workers with needed skills and to motivate and retain those already employed. and retain those already employed.
They use wage and salary surveys to find out what other They use wage and salary surveys to find out what other organizations are paying for particular skills. organizations are paying for particular skills.
Then, in setting pay rates, they seek to integrate the Then, in setting pay rates, they seek to integrate the external information with what they have learned external information with what they have learned through the internal evaluation of jobs. through the internal evaluation of jobs.
This process is called pricing the wage structure. This process is called pricing the wage structure.
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Establishing Pay RatesEstablishing Pay Rates
The need for equity is the most important factor in determining pay rates.
This is achieved through following steps:-
1. Find out the worth of each job through job evaluation.
2. Conduct a salary survey to find what other employers are paying for comparable jobs.
3. Group similar jobs into pay grades
4. Price each pay grade by using wage curves
5. Fine tune pay rates.
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Types of Wage PaymentsTypes of Wage Payments1.1. Time rate system:- Oldest MethodTime rate system:- Oldest Method
Under this system, workers are paid according to the Under this system, workers are paid according to the work done during a certain period of time.work done during a certain period of time.
The essential point is that the production of a worker is The essential point is that the production of a worker is not taken into consideration in fixing the wages.not taken into consideration in fixing the wages.
Advantages:- Advantages:- - Employees maintains the quality of the production.Employees maintains the quality of the production.- All the workers doing same work gets same All the workers doing same work gets same
wages, so no jealousy.wages, so no jealousy.- Provides stable earnings to the employees.Provides stable earnings to the employees.
Disadvantages:-Disadvantages:-
-- No difference between effective and non-effective No difference between effective and non-effective employeesemployees
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2.2. Piece Rate System:-Piece Rate System:-
Under this system, workers are paid according to Under this system, workers are paid according to the amount of work done or the number of units the amount of work done or the number of units completed, the rate of each unit being settled in completed, the rate of each unit being settled in advance, irrespective of time taken to do the advance, irrespective of time taken to do the task.task.
WE=NRWE=NR
Workers earning = Number * Rate per piece.Workers earning = Number * Rate per piece.
Merits:-Merits:-
1.1. The workers are paid according to their efficiency The workers are paid according to their efficiency as reflected in the amount turned by him.as reflected in the amount turned by him.
2.2. The total unit cost of production remains lower as The total unit cost of production remains lower as the unit production increases.the unit production increases.
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3. Balance or Debt Method3. Balance or Debt Method
This is a combination of time and piece rates.
The worker is guaranteed an hourly or a day-rate with an alternative piece rate.• If the earnings of a worker at piece rate>Amount through time basis =he gets credit for the balance
• If the earnings through piece rate = time basis = question of excess payment do not arises.
• If the earnings of a worker at piece rate<Amount through time basis = he is paid on the basis of time rate.
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Pay for PerformancePay for Performance
An incentive or reward can be anything that attracts an employee’s attention and stimulates him to work.
According to BURACK and SMITH –” An incentive scheme is a plan or programme to motivate individuals or group performance. An incentive programme is most frequently built on monetary rewards but may also include a variety of non-monetary rewards.”
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Classification or types of incentives:-Classification or types of incentives:-
Incentives can be classified into:-
DIRECT COMPENSATION
INDIRECT COMPENSATION
Direct Compensation :- It includes the basic salary or wage that the individual is entitled to for his job, over-time work and holiday premium, bonuses based on performance.
Indirect Compensation :- It includes protection programmes (insurance plans, pensions), pay for time not worked, services and perquisites. ---These are maintenance factors.
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Determinants of incentivesDeterminants of incentives
The individuals
Work situation
-Technology
- Satisfying job assignment
- Feedback
- equity
Incentive plan
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Incentive PaymentsIncentive PaymentsIncentives are monetary benefits paid to workmen in Incentives are monetary benefits paid to workmen in recognition of their outstanding performance.recognition of their outstanding performance.
ILO refers to incentives as “PAYMENT BY RESULTS”ILO refers to incentives as “PAYMENT BY RESULTS”
- The primary advantage of incentives is the The primary advantage of incentives is the inducement and motivation for higher efficiency and inducement and motivation for higher efficiency and greater output.greater output.
- Increased earnings would enable the employees to Increased earnings would enable the employees to improve their standard of living and help the improve their standard of living and help the organization to improve their production capacity.organization to improve their production capacity.
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Types of Incentive PlansTypes of Incentive Plans
(i)(i) Plans for blue collar workersPlans for blue collar workers
(ii)(ii) Plans for white collar workersPlans for white collar workers
(iii)(iii) Plans for managerial personnelPlans for managerial personnel
Incentive for Blue collar workersIncentive for Blue collar workers
(A) Short-Term(A) Short-Term- Systems under which the rate of extra incentive Systems under which the rate of extra incentive
is in proportion to the extra output.is in proportion to the extra output.
- Systems under which the extra incentive is Systems under which the extra incentive is proportionately at a lower rate than the increase proportionately at a lower rate than the increase in output.in output.
- Systems under which the rate of incentives is Systems under which the rate of incentives is proportionately higher than the rate of increase proportionately higher than the rate of increase in output.in output.
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Long term incentive plans for blue Long term incentive plans for blue collar workers.collar workers.
Under such plans, each member of group receive a Under such plans, each member of group receive a bonus based on the output of the group as a bonus based on the output of the group as a whole.whole.
The most important reason for adopting group plan The most important reason for adopting group plan – as the jobs are interrelated.– as the jobs are interrelated.
1.1. One worker’s performance reflects not only his One worker’s performance reflects not only his effort, but also of co-workers.effort, but also of co-workers.
2.2. It encourages co-operation among group It encourages co-operation among group members.members.
3.3. Group production levels tend to be more stable Group production levels tend to be more stable than individual ones.than individual ones.
4.4. Group plans also facilitate on-the job training.Group plans also facilitate on-the job training.
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Group incentive plansGroup incentive plans
-Profit SharingProfit Sharing
- Scanlon plan ( plan to reduce the cost of - Scanlon plan ( plan to reduce the cost of operation and improving working methods and operation and improving working methods and sharing in the gains of increased productivity.sharing in the gains of increased productivity.
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Incentive plans for White collar Incentive plans for White collar workersworkers
75% organization pay this incentive to their sales 75% organization pay this incentive to their sales team.team.
Due to:-Due to:-- The unsupervised nature of most sales work.The unsupervised nature of most sales work.- Tradition in the marketTradition in the market- The assumptions that incentives are needed to The assumptions that incentives are needed to
motivate salesmen.motivate salesmen.
(a)(a) Straight salary methodStraight salary method
(b)(b) Straight commissionStraight commission
(c)(c) Combination plansCombination plans
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In many organizations, the managers are paid In many organizations, the managers are paid BONUS.BONUS.
There are two types of bonus.There are two types of bonus.
1)1) Determined by formula , like as increase Determined by formula , like as increase in salesin sales
2)2) Determined by some discretion used in Determined by some discretion used in the allocation of bonusthe allocation of bonus
For top level management bonuses are For top level management bonuses are generally tied to overall corporate results.generally tied to overall corporate results.
Incentives for managerial personnel
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Non-monetary incentivesNon-monetary incentivesWhile monetary incentives often appear as important While monetary incentives often appear as important motivators, many factors unrelated to money can also motivators, many factors unrelated to money can also serve as “attention-getters” and “encouragers of serve as “attention-getters” and “encouragers of action”.action”.
Examples:-Examples:-
--A person with strong need for affiliation may respond A person with strong need for affiliation may respond readily to job assignments.readily to job assignments.
-The opportunity to communicate with and relate to others -The opportunity to communicate with and relate to others is a factor many workers emphasize.is a factor many workers emphasize.
-An employee with high-level desires for power may -An employee with high-level desires for power may respond easily to opportunity, where he can gain respond easily to opportunity, where he can gain leadership.leadership.
-Persons interested in enhancing their reputations and -Persons interested in enhancing their reputations and receiving recognition in the eyes of others, respond to receiving recognition in the eyes of others, respond to verbal praise.verbal praise.
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Services & BenefitsServices & Benefits
Besides base compensation and incentives, Besides base compensation and incentives, employees are provided various types of benefits and employees are provided various types of benefits and services by the organizations.services by the organizations.
These are called by various names such as fringe These are called by various names such as fringe benefits, employee welfare, wage supplements, sub benefits, employee welfare, wage supplements, sub wages, supplementary compensation, social security wages, supplementary compensation, social security etc.etc.
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Definition:-Definition:-
“ Fringe benefits are supplements to wages received by workers at a cost to the employers. The term encompasses a number of benefits-paid vacation, pension, health and insurance plans, etc.—which usually add up to something more than a fringe and is sometimes applied to a practice that may constitute dubious benefits for workers.”
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Features of Fringe BenefitsFeatures of Fringe Benefits
• Fringe Benefits are provided to employees in addition to Fringe Benefits are provided to employees in addition to their wages and other performance related incentives.their wages and other performance related incentives.
•These are provided to employees not for the performance These are provided to employees not for the performance of any specific jobs but are offered to them as means for of any specific jobs but are offered to them as means for facilitating the performance of their jobs.facilitating the performance of their jobs.
•These are provided to all employees irrespective of their These are provided to all employees irrespective of their work efficiency.work efficiency.
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Types of benefitsTypes of benefitsThere are numerous types of benefits which may be There are numerous types of benefits which may be provided to employees, and there are different ways provided to employees, and there are different ways to classify them.to classify them.
One such classification may be STATUTORY and One such classification may be STATUTORY and VOLUNTARY benefits.VOLUNTARY benefits.
Various benefits provided by an organization may be Various benefits provided by an organization may be classified under two groups:------classified under two groups:------• Employee welfareEmployee welfare• Social SecuritySocial Security
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Major benefits offered in INDIAMajor benefits offered in INDIA• Payments for time not workedPayments for time not worked
- Weekly off-day- Weekly off-day
- Gazzetted holidays- Gazzetted holidays
- Personal leave- Personal leave• Retirement BenefitsRetirement Benefits
- Provident Fund Scheme- Provident Fund Scheme
- Pension Scheme- Pension Scheme
- Gratuity- Gratuity• Compensation BenefitsCompensation Benefits• Insurance BenefitsInsurance Benefits• Recreation BenefitsRecreation Benefits
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Performance AppraisalPerformance Appraisal
After an employee has been selected for a job, has After an employee has been selected for a job, has been trained to do it and has worked on it for a period been trained to do it and has worked on it for a period of time, his performance should be evaluated. of time, his performance should be evaluated.
Performance evaluation or appraisal is the Performance evaluation or appraisal is the process of deciding how employees do their jobs process of deciding how employees do their jobs and performance here refers to the degree of and performance here refers to the degree of accomplishment of the tasks. accomplishment of the tasks.
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Definitions:-Definitions:-
Performance appraisal is the method of evaluating the Performance appraisal is the method of evaluating the behaviour of employees in the work spot, normally behaviour of employees in the work spot, normally including both the quantitative and qualitative aspects including both the quantitative and qualitative aspects of job performance. So, performance appraisal is a of job performance. So, performance appraisal is a systematic and objective way of evaluating both work systematic and objective way of evaluating both work related behaviour and potential of employees. related behaviour and potential of employees.
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Features:- Features:-
1}1} The appraisal is a systematic process.The appraisal is a systematic process.
2}2} It provides an objective description of an employee’s It provides an objective description of an employee’s relevant strengths and weaknesses. relevant strengths and weaknesses.
3}3} It tries to find out how well the employee is performing It tries to find out how well the employee is performing the job.the job.
4}4} The appraisal is carried out periodically, according to The appraisal is carried out periodically, according to definite plan.definite plan.
5}5} It is not job-evaluation, but refers to how well one is It is not job-evaluation, but refers to how well one is doing the job.doing the job.
6}6} It may be formal or informal in nature.It may be formal or informal in nature.
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Objectives of performance appraisalObjectives of performance appraisal
Performance appraisal could be taken either for Performance appraisal could be taken either for evaluating the performance of employees or for evaluating the performance of employees or for developing them.developing them.
Evaluation of employees ie appraisal serves several Evaluation of employees ie appraisal serves several useful purposes:-useful purposes:-
Compensating decisions Compensating decisions Promotion decisionsPromotion decisions Training and development programs. Training and development programs. FeedbackFeedback Personal developmentPersonal development
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WHAT IS TO BE APPRAISED ?WHAT IS TO BE APPRAISED ?
Every organization has to decide upon the content to be Every organization has to decide upon the content to be appraised before the programme is approved. appraised before the programme is approved. Generally, the content to be appraised is determined Generally, the content to be appraised is determined on the basis of job analysis.on the basis of job analysis.
The content to be appraised may be in the form of The content to be appraised may be in the form of contribution to organizational objectives like contribution to organizational objectives like production, savings in terms of cost, return on capital production, savings in terms of cost, return on capital etc.etc.
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WHO WILL APPRAISE ?WHO WILL APPRAISE ?
The appraiser may be any person who has thorough The appraiser may be any person who has thorough knowledge about the job content, contents to be knowledge about the job content, contents to be appraised, standards of contents, and who observes appraised, standards of contents, and who observes the employee white performing a job.the employee white performing a job.
SupervisorsSupervisors
PeersPeers
SubordinatesSubordinates
Self-appraisalSelf-appraisal
Users of services and consultants.Users of services and consultants.
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WHEN TO APPRAISE ?WHEN TO APPRAISE ?
Informal appraisals are conducted whenever the Informal appraisals are conducted whenever the supervisor or personnel managers feel it is necessary. supervisor or personnel managers feel it is necessary. However, systematic appraisals are conducted on a However, systematic appraisals are conducted on a regular basis, say, for ext; every six months or regular basis, say, for ext; every six months or annually. annually.
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The Performance Appraisal ProcessThe Performance Appraisal Process
Performance appraisal is planned, developed and Performance appraisal is planned, developed and implemented through a series of steps.implemented through a series of steps.
(a)(a) Establish performance standards.Establish performance standards.
(b)(b) Communicate the standards.Communicate the standards.
(c)(c) Measure actual performanceMeasure actual performance
(d)(d) Compare actual performance with standards and Compare actual performance with standards and discuss the appraisal discuss the appraisal
(e)(e) Taking corrective action, if necessary.Taking corrective action, if necessary.
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Methods of Performance AppraisalMethods of Performance Appraisal
IndividualIndividual Multiple-PersonMultiple-Person OtherOther
EvaluationEvaluation evaluationevaluation methodsmethods
MethodsMethods methodsmethods
- Confidential report - Confidential report - Ranking - Ranking - Performance - Performance
teststests
- Essay evaluation- Essay evaluation - Paired comparison- Paired comparison - Field review- Field review
- Critical incidents- Critical incidents - Forced distribution- Forced distribution technique technique
- Graphic rating scale- Graphic rating scale
- Behaviorally anchored rating scales - Behaviorally anchored rating scales
- MBO.- MBO.
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Individual Evaluation Methods:Individual Evaluation Methods:
Here Employees are evaluated once at time without Here Employees are evaluated once at time without comparing them with other employees:comparing them with other employees:
1)1) Confidential ReportConfidential Report
2)2) Essay evaluationEssay evaluation
3)3) Critical Incident TechniqueCritical Incident Technique
4)4) Graphic Rating ScaleGraphic Rating Scale
5)5) MBOMBO
6)6) Behaviorally Anchored Rating ScaleBehaviorally Anchored Rating Scale
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BARS IS CONTRUCTED BY BARS IS CONTRUCTED BY
Collecting critical incidentsCollecting critical incidents
Identifying performance dimensionsIdentifying performance dimensions
Reclassification of incidentsReclassification of incidents
Assigning score values to incidentsAssigning score values to incidents
Producing the final instrumentProducing the final instrument
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What is 360What is 360 assessment ? assessment ?
It’s a full-circle overview of a person’s performance on It’s a full-circle overview of a person’s performance on the job. Instead of a single evaluation from the boss, a the job. Instead of a single evaluation from the boss, a person receives feedback from many workplace person receives feedback from many workplace source.source.
The boss still gives input, but peers and direct reports The boss still gives input, but peers and direct reports
also set involved in the evaluation process. The also set involved in the evaluation process. The
person participating in a 360person participating in a 360 gets to rate his or her gets to rate his or her
performanceperformance
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Advantages of 360Advantages of 360 feedback system feedback system
Everybody involved in the process benefits:Everybody involved in the process benefits:- Participants gets a fairer, well – rounded impression Participants gets a fairer, well – rounded impression
of how their work is viewed by others.of how their work is viewed by others.- Bosses get an overall perspective about a persons Bosses get an overall perspective about a persons
skills.skills.- Peers and direct reports get an opportunity to share Peers and direct reports get an opportunity to share
concerns which helps them to contribute constructive concerns which helps them to contribute constructive changes.changes.
- Team members can use the information to identify Team members can use the information to identify and prioritize team development needs.and prioritize team development needs.
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Features of 360Features of 360 feedback: feedback:
- It is an assessment process used to improve It is an assessment process used to improve managerial effectiveness by providing the manager managerial effectiveness by providing the manager with a more complete assessment.with a more complete assessment.
- The process involves obtaining feedback from the The process involves obtaining feedback from the manager’s key contacts,manager’s key contacts,
The manager himself The manager himself SubordinatesSubordinates Peers Peers ManagerManager CustomersCustomers supplierssuppliers
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Features of 360Features of 360 feedback: feedback:
- Feedback is normally gathered by means of a Feedback is normally gathered by means of a questionnaire, which asks participants to rate the questionnaire, which asks participants to rate the individual according to observed behaviours.individual according to observed behaviours.
- The 360The 360 process will not suit all the companies. process will not suit all the companies. Presenting the results of the appraisal to managers in Presenting the results of the appraisal to managers in a constructive way is critical to the success to the a constructive way is critical to the success to the process.process.
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360360 performance appraisal performance appraisal
This is an attempt to the updation of the traditional This is an attempt to the updation of the traditional employee appraisal process & is one of the employee appraisal process & is one of the fashionable techniques of the mid 1990s, fitting in with fashionable techniques of the mid 1990s, fitting in with other news tools called team mgt, employee other news tools called team mgt, employee empowerment and total quality management. empowerment and total quality management.
360360 - feedback, as the term implies, brings together - feedback, as the term implies, brings together formal appraisals from everybody that the person formal appraisals from everybody that the person being assessed comes into contact with line mangers, being assessed comes into contact with line mangers, subordinates, colleagues, peers, and even outsiders subordinates, colleagues, peers, and even outsiders such as clients.such as clients.
Another name for it is multi – source feedback and a Another name for it is multi – source feedback and a variant is upward feedback, in which subordinates variant is upward feedback, in which subordinates appraise their supervisor’s performance.appraise their supervisor’s performance.
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How does the checkpoint 360How does the checkpoint 360 system work ?system work ?
1)1) The standard checkpoint survey has to items and The standard checkpoint survey has to items and takes approx. 15 minutes to complete it covers takes approx. 15 minutes to complete it covers competencies in the areas of communications, competencies in the areas of communications, leadership, adaptability, Relationships, task leadership, adaptability, Relationships, task Management, Production, Development of others. Management, Production, Development of others.
2)2) Results from all these surveys are compiled in a Results from all these surveys are compiled in a confidential feed back report.confidential feed back report.Graphs and charts relate the data in a detailed, Graphs and charts relate the data in a detailed, easy – to – understand format. easy – to – understand format.
3)3) Participants use the information from the feedback Participants use the information from the feedback report to establish goals and ongoing action plans, report to establish goals and ongoing action plans, aimed at better utilizing their strong points and aimed at better utilizing their strong points and improving their weaker skills.improving their weaker skills.
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Potential AppraisalPotential Appraisal
Evaluating what a person can perform or do is called Evaluating what a person can perform or do is called ‘potential appraisal or evaluation’.‘potential appraisal or evaluation’.
Potential refers to the abilities present but not currently Potential refers to the abilities present but not currently utilized. It is a latent capacity in a person to discharge utilized. It is a latent capacity in a person to discharge a responsibility.a responsibility.
““people are like icebergs. What you see above the people are like icebergs. What you see above the surface is only a small part. A large part of the surface is only a small part. A large part of the attributes needed to perform excellently in future job, attributes needed to perform excellently in future job, which I call potential is not immediately visible. It is which I call potential is not immediately visible. It is hidden below surface”.hidden below surface”.
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Potential AppraisalPotential Appraisal
It is characterized by following attributes:It is characterized by following attributes:
1)1) Ability to foresee future opportunities Ability to foresee future opportunities
2)2) Consistency in approach and performanceConsistency in approach and performance
3)3) Responsive to condition whatever comes in the Responsive to condition whatever comes in the way.way.
4)4) Person with hight level of integrity.Person with hight level of integrity.
5)5) Broader vision and micro perception.Broader vision and micro perception.
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Why potential appraisal objectives:-Why potential appraisal objectives:-
1)1) To promote an employee to higher levels of jobs To promote an employee to higher levels of jobs involving higher order or responsibility, which the involving higher order or responsibility, which the employee can effectively discharge without being employee can effectively discharge without being over burden and stretched. over burden and stretched.
2)2) Assist the organization to allocate jobs among Assist the organization to allocate jobs among employees as per their capabilities so that employees as per their capabilities so that organizational responsibilities are discharged organizational responsibilities are discharged effectively.effectively.
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Evaluation of Employee Potential:Evaluation of Employee Potential:
1)1) Determination of role dimensionDetermination of role dimension
2)2) Determination of mechanismDetermination of mechanism
3)3) Linking potential with other elements. Linking potential with other elements.
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INDUSTRIAL RELATIONSINDUSTRIAL RELATIONS
• According to Armstrong- “Industrial relation is concerned with the system and
procedures used by unions and employers to determine the reward for effort and other conditions of employment, to protect the interest of the employed and their employers, and to regulate the ways in which employers treat their employees.”
• According to Industrial Labour Organization (ILO)- “Industrial relation deal with either the relationship between
the state and employers and workers organization or the relation between the occupational organizational themselves.”
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Features of industrial relationsFeatures of industrial relations
• Relation between employees and employerRelation between employees and employer• The outcome of the practice of human resource HRM The outcome of the practice of human resource HRM
and employment relationsand employment relations• Accommodating other party’ interest, values and Accommodating other party’ interest, values and
needsneeds• Governed by the system of rules and regulationsGoverned by the system of rules and regulations• To maintain harmonious relation between employees To maintain harmonious relation between employees
and employerand employer• Trade union is another important institution in the Trade union is another important institution in the
industrial relationindustrial relation• Develop the skills and methods of adjusting Develop the skills and methods of adjusting
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Objectives of industrial relationsObjectives of industrial relations
• To promote and develop congenial labour To promote and develop congenial labour management relationsmanagement relations
• To enhance the economic status of the worker To enhance the economic status of the worker by improving wages, benefits and by helping by improving wages, benefits and by helping in evolving sound budgetin evolving sound budget
• To regulate the production by minimizing To regulate the production by minimizing industrial conflicts through state control industrial conflicts through state control
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PARTICIPANTS IN IRPARTICIPANTS IN IR
• Workers & their organizationsWorkers & their organizations
• Managers and their organizationsManagers and their organizations
• Role of governmentRole of government
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ASPECTS OF IRASPECTS OF IR
DEVELOPMENT OF HEALTHY LABOUR DEVELOPMENT OF HEALTHY LABOUR MANAGEMENT RELATIONSMANAGEMENT RELATIONS
• Existence of responsible trade unions Existence of responsible trade unions
• Collective bargaining,plant discipline & Collective bargaining,plant discipline & satisfactory trade unionsatisfactory trade union
• Government Government
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ASPECTS OF IRASPECTS OF IR
MAINTENANCE OF INDUSTRIAL PEACE MAINTENANCE OF INDUSTRIAL PEACE • Legislative enactments & administrative action, labour Legislative enactments & administrative action, labour
courts.courts.• Implementation & evaluation Committees Implementation & evaluation Committees
INDUSTRIAL DEMOCRACYINDUSTRIAL DEMOCRACY• Joint management councilsJoint management councils• Recognition of human rights “Labour is no longer an Recognition of human rights “Labour is no longer an
article or a commodity of commerce”article or a commodity of commerce”• Suitable environment to adapt.Suitable environment to adapt.
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STRATEGIES OF IRSTRATEGIES OF IR
INTERNALSTRATEG IES
EXTERNALSTRATEG IES
INDUSTRIAL RELATIO NSSTRATEG IES
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INTERNAL STRATEGIESINTERNAL STRATEGIES
• The attitudes of management to employees & The attitudes of management to employees & unionsunions
• The attitudes of employees to managementThe attitudes of employees to management• The attitudes of employees to unionsThe attitudes of employees to unions• The prosperity of company, degree to which it The prosperity of company, degree to which it
expands ,stagnates or run down expands ,stagnates or run down • Extent to which technological changes are Extent to which technological changes are
likely to affect employment conditions & likely to affect employment conditions & opportunitiesopportunities
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EXTERNAL STRATEGIESEXTERNAL STRATEGIES
• The effectiveness of unions & its officials The effectiveness of unions & its officials and extent to which officials can control and extent to which officials can control the activities of supervisors within the the activities of supervisors within the company.company.
• The extent to which bargaining is carried The extent to which bargaining is carried out at national or local plant level.out at national or local plant level.
• .the legal framework within which .the legal framework within which industrial relations exists.industrial relations exists.
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SCOPE OF IR WORKSCOPE OF IR WORK• Administration,including overall Administration,including overall
organization,supervision and co-ordination.organization,supervision and co-ordination.• Liaison with outside groups and personnel Liaison with outside groups and personnel
departments as well as with various cadres of the departments as well as with various cadres of the management staff.management staff.
• The drafting of regulations,rules,laws or orders,and The drafting of regulations,rules,laws or orders,and their construction and interpretation.their construction and interpretation.
• Employee counseling on all types of personnel Employee counseling on all types of personnel problems-educational , vocational, health, or problems-educational , vocational, health, or behavior problems.behavior problems.
• Suggestions plans and their uses in labour , Suggestions plans and their uses in labour , management and production committees.management and production committees.
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FUNCTIONAL REQUIREMENTS OF A FUNCTIONAL REQUIREMENTS OF A SUCCESSFUL IR PROGRAMMESUCCESSFUL IR PROGRAMME
• Top management supportTop management support• Sound personnel policiesSound personnel policies• Adequate practices should be developed by Adequate practices should be developed by
professionalsprofessionals• Detailed supervisory trainingDetailed supervisory training• Follow-up of resultsFollow-up of results
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