Hrm Lecture Notes for Pu, Mba 2nd Semester Essay

Lecture Notes for PU, MBA 2nd Semester Unit- 2 (Two) HUMAN RESOURCE PLANNING Human Resource Planning • Predetermining HR needs in terms of quality & quantity • Estimating the size & composition of future workforce • Due to the dynamic nature of environment – technological change, globalization, change in nature of job, OD, shortage & requirement of critical skills led to importance of HRP • HRP is the process of determining an organization’s HR needs – Decenzo &RobbinsHuman Resource Information System • HRIS is a device for providing skill inventory information • Computer based data system for systematically track most of the information about employee and jobs • Collect, analyze, store, retrieve & disseminate information about employees &job • Useful for storing employment, training and compensation information on each employee Contents of HRIS a) Personal data- name, address, dob, marital status ) Skill data- qualification, training, special skills, capabalities, language spoken etc c) Position data- current position, duties, responsibilities, occupational history, jobs held in other organizations, work locations etc. d) Compensation data- current salary, salary history, bonus, overtime payments, deduction from salary, tax information,award received etc. e) Performance data- current & past performance appraisal data Uses of HRIS • Human resource inventory development • Human resource forecast Human resource development • Job analysis • To make succession and replacement planning • To determine current & probable productivity of employee • Establish link between corporate objectives & strategies, corporate planning & HR planning Human Resource Inventory • Skill inventory of HR currently employed in the organization • It includes – names,education, training, salary level, languages spoken, capabalities & specialized skills of all employees From HRP viewpoint, What skills are currently available in the organization • Can take advantage of opportunities to expand or alter the organization’s strategies • Useful in- training need assessment, promotion & transfer • To identify current or future threats to organizations ability to perform • Staff turnover rate, sickness & absenteeism rate,etc. HRP Process Assessing current human resources – Human resource inventory, HRIS, Job analysis 2.Forecasting HR demand- external environmental forces, organizatinal objectives, business plan, succession plan, workforce factors such as:- work load norms, employee reallocation, seperation, turnover, contingent workforce – Management judgement, expert forecasts, statistical analysis may be used to forecast demand 3. Forecasting HR supply – Internal sources forecasts: potential additions & losses to HR inventory, – External sources forecast- education & training institute, labour market etc 4. Matching demand and supply forecast- shortage & surplus 5.Preparation of action plan – Recruitment action plan – Development action plan – Retention action plan – Redeployment action plan – Redundancy action plan – Promotion & succession action plan Unit: 3 (Three) JOB ANALYSIS Job analysis: The process of studying and collecting informations relating to the operations and responsibilities of a specific job.

The immediate product of this analysis are job description and job specification. It analyze the content & characteristics of the job and requirements/ qualifications needed to perform those jobs.Job description: Job description is an organized, factual statement of the duties and responsibilities of a specific job. It should tell what is to be done, how it is done, and why. It is a standard of function. It defines the authorized content of the job. It contains : job title, location, job summary, duties, machine, tools and equipments, materials used, supervision given or received, working conditions, hazards etc.

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Job specification A statement of the minimum acceptable human qualities necessary to perform a job properly.It is a standard of personnel and designates the qualities required for acceptable performance. A statement of human qualifications necessary to do the job.

Usually contains such items: education, experience, training, judgement, initiative, physical effort, physical skills, communication skills, emotional characteristics, sensory demands such as sight, smell, hearing and many others depends upon the nature of job. Uses of Job analysis • HRP- number & types of human resource are determined by the jobs which need to be staffed. Job related information is provided by JA.

Recruitment & selection- an understanding of the types of skills needed and the types of job that may open in future helps HR manager to plan recruitment and knowledge about the work to be done and qualifications needed helps to select right person- match the right people with the right job. • Training & development- what a given job demands from the incumbents in terms of knowledge & skills? Training & development programmes can be designed depending on the job requirements. • Job evaluation- determination of relative worth of each job to determine wage & salary differentials.Relative worth is determined mainly on the basis of job description & specification. • Remuneration- remuneration should be based on relative worth of each job. Employee need to be compensated on the grades of the job which they occupy. Otherwise feeling of inequity may arise. • Performance appraisal- Job Analysis helps to fix standards for performance in relation to which actual performance is compared and assessed.

• Safety & health- provides information regarding hazardous conditions, unhealthy environmental factors. So that corrective measures can be taken to minimize and avoid the possibility oh human injury. Personnel information- planning, acquisition, development, utilization and remuneration purpose Job Analysis helps by providing information.

Methods of collecting Job information • Observation- job analyst carefully observes the job holder at work and records what & how s/he does and how much time is needed for completion of given task. • Interview- job analyst interviews the job holder & supervisor about the job. Generally structured form is used.

The analyst must make judgements about the informations to be included and its degree of importance. Questionnaire- job holder fill in the given structured questionnaire, which are then approved by their supervisor. • Checklists- similar to questionnaire, but the response-sheet contains fewer subjective judgements and tends to be either yes-or-no variety. It can cover many activities but job holder has to tick only those tasks that are included in their jobs. • Technical conference method- a conference of supervisor who possess extensive knowledge about a job are used. • Diary method- job holders records in detai their activities each day in a diary.JOB ANALYSIS TECHNIQUES Job focused techniques • Functional job analysis (FJA) – used to analyze the nature of jobs in terms of data, people and things. Information collected is categorized under those three associated functions.

• Management position description questionnaire (MPDQ) – designed to analyze managerial position. Job analyst use a checklist containing 197 job factors related to managerial concern & responsibilities. A statistical analysis on job factors will be conducted to find the different job factors relating to the position of individual managers.Job analysis techniques • The hay plan- analyse managerial jobs. since executives are engaged in numerous tasks it is difficult to specify their duties and responsibility.

Hay plan is based on interview between job analyst & the person in the job. Information gathered using Hay plan relates to four aspects of managerial job: i) objective of the job ii) dimensions to be covered by the job holders in that position iii) nature & scope of the position iv) accountability Purpose : recruitment, selection, placement, job evaluation, management development & organizational analysis. Metods analysis – analysis of non managerial job. Studies motion at work. Method analysis is used in organizations that rely heavily on human labour to carry out repetitive and routine tasks accurately & efficiently.

• Person or behaviour- focused technique. • Position analysis questionnaire (PAQ) – to find the personal or behavioral requirements for performing a job. PAQ contains 194 items. 94 job items are categorized in 5 job dimensions: i) Job dimension relating to decision making /communication/ social responsibilities ii) Relating to performing skilled activities iii) Relating to physical activities/ environmental conditions iv) Relating to operating vehicles/ equipment v) Job dimension relating to information processing.All jobs are categorized under above 5 job dimensions. Information is collected through using a position questionnaire.

1. Person or behaviour- focused technique. Physical abilities analysis (PAA) – analyse the physical abilities/ strengths required by job holders to perform the jobs. The critical incident technique (CIT)- critical job incidents that represents effective or ineffective performance. This techniques identifies the crical incidents that occured durung last 6 to 12 months. Desirable or undesirable.

Guidelines-oriented job analysis (GOZA)- GOZA techniques analses job after completion of following steps: i) Listing the job domains of the incumbents ii) List the important or critical duties typically requiring person to perform in a job iii) Determine how frequently these critical duties are required to be performed & their importance iv) Determine requisite skills/ knowledge v) Determine physical characteristics vi) Describe other characteristics JOB ANALYSIS PROCESS Six steps in doing job analysis- According to Dessler Decide how you will use the information- it helps to determine the types of data and methods to collect.Review relevant background information- such as organization chart, process chart & job description Select representative positions- because there may be too many similar jobs to analyse. Eg. It is usually unnecessary to analyse the jobs of 200 assembly workers when a sample of 10 jobs will do Actually analyse the job- by collecting data on job activities, required employee behavior, working conditions and human traits and abilities needed to perform the job. Use one ore more methods and techniques of Job Analysis.

Verify the job analysis information- with job holder & immediate supervisor to confirm that informations is factually correct & complete.Develop a job description and job specification- Unit: 4 (Four) RECRUITMENT Recruitment is the process of searching for and obtaining applications so as to build a pool of job seekers from whom the right people for the right jobs may be selected. · The purpose of recruitment is to build a pool of applicants. · Recruitment represents the first contact an organization makes with potential employees. · It is through recruitment that many individuals will come to know a company and eventually decide whether they wish to work for it. · It is an ongoing process because employee leave the firm in search of greener pastures-some retire and some die in the saddle. More importantly, an enterprise grows, diversifies, takes over other units-all necessitating hiring of new employees.

· In fact, the recruitment function stops only when the company ceases to exist. · Theoretically, recruitment process is said to end with the receipt of application. FACTORS AFFECTING RECRUITMENT 1) External factors a.

Supply and demand- If the demand for a particular skill is high relative to the supply, an extraordinary recruiting efforts may be needed. The situation of demand and supply of specific skills affects recruitment. b.

Unemployment rate- If unemployment rate is high, recruitment process becomes simpler because large number of people can be attracted with minimum effort. c.Labor market- Availability of manpower in a local area, specially for non-managerial, supervisory and middle- management positions and in the country level for executive and professional positions has effect on recruitment. d. Political-legal- Reservations of jobs for scheduled castes, scheduled tribes, minorities and other ethnic and backward classes, child labor act have effect on recruitment. e.

Sons of soil- Preferences to local or people of their respective state in matters of employment. f. Image- It is the perception of the job-seekers about the company that matters in attracting qualified prospective employees. 2. Internal factors: a.Recruitment policy- Recruiting internally or externally, recruitment of local citizens, policy of temporary and part time workers. b.

Human resource planning- A company cannot attract prospective employees in sufficient numbers and with required skills overnight. It takes time. Effective HRP greatly facilitates the recruiting efforts. Size of the firm- Bigger the size less problematic.

Cost- Cost incurred in recruitment process, must operate within budgets, multiple job openings simultaneously may minimize cost. Growth & expansion- An organization going on growth and expansion will have more recruiting on hand than the one which finds its fortune declining. RECRUITMENT METHODS 1. Internal methods: Job posting, employee referral, human resource inventory search q Internal sources a) Present employees- Promotion, transfers, job rotation b) Employee referrals- “finders fees”, Microsoft, Wipro, Infosys, Texas instrument c) Formers employees- Retired employees may be willing to come back on part time basis, may recommend someone, people who have left the company for some reasons or other are willing to come back and work d) Previous applicants- Although not truly an internal source, can be contacted quickly to fill an unexpected opening.

2. External methods/sources: a) Advertisement – b) Professional or trade associations- c) Employment exchange- ) University/colleges- e) Walk-ins, write-ins and talk-ins- f) Consultants- g) Contractors- h) Competitors- i) E-recruiting- ALTERNATIVES TO RECRUITMENT Organizations search for alternatives to recruitment because of the cost of recruiting. The alternatives to recruitments are: a) Overtime- b) Employee leasing- Staff outsourcing, paying charges to a leasing company or consulting firm that handles payroll, employee benefits and routine HR functions for the client company. c) Temporary employment Unit- 5 (Five) SELECTION Selection is the process of choosing among people who apply for work with an organization.Selection process is a series of steps used to decide which recruits should be hired. Steps in selection:- Application form evaluation-> selection tests-> selection interview-> reference checks-> physical examination-> hiring decision Selection methods Qualification and experience method, work proficiency method, written test method, interview method, written test and interview method, comprehensive selection method. Selection Tests a. Intelligence tests Tests of general intellectual abilities.

They measures not a single trait but rather a range of abilities such as- reasoning, vocabulary, verbal fluency, numerical abilities, memory etc. b. Aptitude testsIt measures whether an individual has the capacity or latent ability to learn a given job if given adequate training. A capacity to learn in the future. To select person who will show a higher degree of success after the training period.

Specific capacities or aptitudes are- mechanical, clerical, linguistic, musical, academic etc. c. Achievement tests Concerned with what one has accomplished. When applicants claim to know something, an achievement test is given to measure how well they know it. Trade tests such as- electricians, typing, dictation, computer operator, machinists etc. It helps to shows the demonstrable relationship and job performance. d. Personality testsIt measures personality attributes of candidate such as emotional stability, confirmity, agreeableness, extroversion, smartness etc.

e. Interest tests/Vocational tests Most organization realize that a person who is interested in a job or tasks will do much better than who is uninterested. In this test applicants is asked whether s/he likes, dislikes the particular occupation, activities, peoples. Interest in specific profession and occupation is tested. Measures candidates preference in different types of job. f.

Situation tests It evaluates the candidate’s behavior in a particular situation or in a situation which is similar to some aspects of the job to be done in the future. g.Test batteries This test helps to fit candidate with wide array of jobs.

This test covers abilities such as- verbal, numerical, intelligence, finger and manual dexterity etc. Selection Interview An interview is a procedure designed to obtain information from a person through oral responses to oral inquiries. A selection procedure designed to predict future job performance on the basis of applicant’s oral responses to oral inquiries. Managers uses several types of interviews, such as: selection, appraisal and exit interviews Types of selection interviews – Gary Dessler Stuctured or Directive interview: An interview following a set sequence of questions.The questions and acceptable responses are specified in advance and the responses are rated for appropriateness of content. Unstructured or Nondirective interview: An unstructured conversational- style interview in which the interviewer pursues points of interest as they come up in response to questions.

Generally no set format to follow. Interview for the same job may or may not get the similar questions. A few questions may be specified in advance. Situational interview: A series of job related questions that focus on how the candidate would behave in a given situation.

Asks interviewees to describe how they would react to a hypothetical situation today or tomorrow.Behavioral interview: A series of job related questions that focuses on how the candidate reacted to actual situations in the past. Asks interviewees to describe how they reacted to actual situations in the past. Job related interview: A series of job related questions that focuses on relevant past job related behaviors. Asks job related questions to draw conclusions about what the applicant’s on the job performance will be based on his or her answers to questions about past experiences. Stress interview: An interview in which the applicant is made uncomfortable by a series of often rude questions. This technique helps identify hypersensitive applicants and those with low or high stress tolerance.

emi-structured interview: major questions to be asked are planned in advance and are same for all candidates but other questions vary from candidate to candidate. Interviewer are provided some flexibility. Puzzle questions: Recruiter for technical, finance, and other types of job like to use them to see how candidates think under pressure. E. g. An interviewer at Microsoft asked a tech service applicant this: ”Mike & Todd have $ 21 between them. Mike has $ 20 more than Todd.

How much money has Mike and how much money has Todd? ” Administering interview: • Personal or Individual interview • Panel Interview • Serial Interview • Mass Interview Telephone Interview • Computerized Interview Reliability and Validity of Tests • Reliability- It refers to the degree of consistency of results obtained. If a test possesses high relaiability , a person who is tested a second or third time with the same test under the same condition will obtain approximately the same score. • Validity- It refers to the relationship between the test score and performance on the job (accuracy). It is concerned with measuring important characteristics related to job behavior.

Types of validity i) Content validity- such a test can approximate the work to be done on the job. e. g.Typing test ii) Construct validity- is the degree to which a particular trait is related to successful performance on the job. Measurement of psychological quality of applicants such as intelligence (abstract in nature). Usually conducted by industrial psychologist by observig various behavior of the applicant and measuring how these behavior or traits relate to the job. iii) Criterion related validity- the degree to which a particular selection device accurately predicts the important elements of work behavior. Relationship between the test scores and job performance.

To establish criterion related validity one of two measures can be used a) Predictive validty- the degree to which test scores determine the future job behavior of the candidate.Present test score is compared with actual performance of the candidate generally after a year. If no clear relationship exists, then the test may have to be revised. (probationary period)- training,transfer, discharge (handle). b) Concurrent validity- it validates tests using current employees as the subjects.

The scores from the current employees are immediately analyzed with their previous performance appraisal report. If there is a relationship between test scores and performance, then a valid test has been found. Predictive validity can be used as screening device where as concurrent validity acts on current employees. Unit- 7 (Seven) TRAINING AND DEVELOPMENTTraining refers to the imparting of specific skill, abilities and knowledge to employee ( development of those employees who do not supervise activities of others, operative level) System and practices get outdated due to new discoveries in technology, including technical, managerial and behavioral aspects. In this context training enhances the knowledge, skills and attitudes of employees to increase efficiency and effectiveness on the prsent job as well as expected future job. The objective of training is to achieve a change in the behavior of those trained. It is expected that employees apply their newly acquired knowledge & skill on the job in such a way as to aid in the achievement of organizational goal. Need of training Training directly contributes to the development of human resources.

It is the most widely used HRD mechanism in the world for the development of human resources. It plays a great role in determining the efficiency and effectiveness of the organization. – Improved performance – Fill manpower needs – Prevent obsolescence – Aid in solving operational problems – Attitude formation – Improve health and safety – Benefit to employees themselves Determining training needs Training need is a gap between the existing capabilities of an employee and the requirement of the job. Job requirement – employee capability = training needs Methods of determining training needs Management audit methodEnvironmental assessment- environmental (political-legal, economic, socio-cultural, technological) changes are identified to determine training needs. • Objectives, strategies and structure change- training needs are identified to manage such changes. 2.

Task analysis method Collection and analysis of task related information- performance standards for each task are set- details are found about how tasks are done- training needs are identified for effective task performance. Job description, job specification, job performance standard 3. Performance analysis method i. Organizational performance method- specifies desired performance standard.Overall performance such as- goal achievement, production performance, quality control, sales performance,cost, absenteeism, labour turnover,accident rates etc.

It determines the overall training needs. ii. Employee performance analysis- identifies actual performance on the current job. Performance deficiencies and problem faced by the employees are identified to determine training needs through- employees performance appraisal reviews, career planning discussion, exit interview, performance test etc. 4. Supervisory recommendation method In this method supervisor identify gap in knowledge and skills and recommend needed training for the employees.

5.Training need survey method- In this method direct questioning is used to gather opinion about training needs through individual survey (each employee), group survey (group of present employees, former employees and supervisors). The result of survey becomes training needs. Competency survey- experts are asked to give opinion on desired competencies to perform the job effectively.

This desired competencies determines training needs. TRAINING PROCESS Organizational objectives and strategies- what business are we in? At what level of quality do we wish to provide this product or service? Where do we want to be in the future? Assessment of training needs-Job requirement – employee capability = training needs 3. Establishment of training goals- clear behavioral standard of expected results are necessary so that training programme can be effectively designed and results can be evaluated. It should be SMART.

4. Designing training programme- every training programme must address certain vital issues- i) who are the participants or trainees ii) who are the trainers iii) what methods and techniques are to be used for training iv) what should be the level of training v) what learning principles are needed vi) where is the programme conducted (vi) how far the program has been useful must be judged to get feedback. 5.Implementation of training programme- once the training programme has been designed, it needs to be implemented.

Programme implementation involves: i) deciding the location and organizing training and other facilities ii) scheduling the training programmes iii) conducting the programme iv) monitoring the progress of trainees. 6. Evaluation of the programme- since huge sum of money and time are spent on training programme, how far the program has been useful must be judged to get feed back. Types of training • Apprenticeship training- learning by doing under the guidance of experienced worker- craft & technical areas- mechanics, jewellers, carpenters..

Job instruction training (JIT)- specially useful for preparing supervisors to train operatives. Also known as ”training through step-by-step learning” steps: i) Preparation- providing informations about job, duties and responsibilities to the trainees. ii) Presentation- providing essential information in a clear manner by positioning the trainees at work site, telling & showing them each step of the job, stressing why and how each step is carried as it is shown. iii) Practise- having the trainee try out the job to show that s/he has understood the instructions, if there are any errors they are corrected. iv) Follow-up- encouraging the questions and allowing the trainee to work alone.Trainer follow up regularly.

It provides immediate feedback, quick correction of error and provision of extra practise if required. It is based on the principle, ”if the learner has not learned, the teacher has not taught. ” • Internship training- trainee is trained on the job by immediate superior. Working as a ”assistant to” type of position. Student of technical and professional subjects are sent to organizations to get practical experience of theoretical knowledge they have learnt in colleges. Trainee work as an employee for specific period. Off-the-job training • Lectures- • Seminars- small group meeting conducted according to an organizational plan.

Generally trainees sit facing one another around a conference table where instructor introduce the topics and invites views from the participants on problem areas related to the topics. Participants are expected to make some views and ask questions. Learn not only from the instructor but also from each other. • Role playing- trainees are assigned parts to play infront of the class. The role players are provided either with written or oral descriptions of a situation and the role they are to play. It provides an opprtunity for trainees to actually put in to practise the knowledge they have observed from text book, lectures and discussions. Simulation- a techniques that duplicates as nearly as possible the actual conditions encountered on the job.

It is abstraction of real working conditions in the lab or class room. Trainees are placed in such an artificial environment which looks alike the real working place & condition. Case study- from the written description of the actual business situation the trainees determine problems, analyze causes, develop alternative solutions and select the best alternatives as accurately as possible and implement it as manager faces and tackles. Provides opportunity to expose their analytical and judgemental abilities. Evaluating training programme The main objective of evaluating the training programme is: to determine if they are accomplishing specific training objectives, that is correcting performance deficiencies. • To ensure that any changes in trainee’s capability is due to training programme and not due to any other condition.

• To determine their cost effectiveness. • Finally, credibility of training is greatlt enhanced when it is proved that the organization has benefitted tangibly from it. Criteria for evaluation Criteria used for evaluating training effectiveness: Reaction criteria- reaction measures reveal trainees’ opinions regarding the training programme.

Learning criteria- learning measures assess the degree to which trainees have mastered the concepts, knowledge and skills of training.Behavior change criteria- behavior indicates the performance of learners. Changes in job behavior. Organizational results- examine the impact of training on the work group or the entire company. Process of training evaluation Steps: i.

Setting intended standards ii. Measuring actual outcomes iii. Finding deviation iv. Corrective action Methods for evaluating training progarmmes Observation method Observation method is done by closely observed during the training programme. Performance in practical work situation, participation in discussion, role play, timing , presentation method. The errors are carefully observed and recorded.

Test-retest methodIn this method participants are given a test to establish their level of knowledge before they enter the training programme. After the completion of training, they retake the test. The change in test scores indicate the change in the level of knowledge resulting from training. 3.

Pre-post performance method The actual job of each participants is evaluated and rated prior to training. After the training the participant’s job performance is reevaluated. Changes in job performance is attributed to training.

4. Experimental control group method Two groups are formed. One group is control group whose members work without undergoing training. Another group is experimental group whose member undergo training. Two groups are evaluated at the end of the training.

If the performance of the experimental group improves, training is regarded effective. 5. Training surveys Direct questioning to trainees to get reaction, generally after the end of training participants are asked to fill-up form containing- physical facilities, achievement of training objectives, contents, trainer effectiveness, suggestions for improvement etc. 6. Cost effectiveness analysis It assesss total value of training benefits against total cost of training. Training is effective if benefit exceeds costs. MANAGEMENT DEVELOPMENT • All those persons who have authority over others and are responsible for their activities & for the operations of an enterprise are managers.

Any activity designed to improve the performance of existing managers to provide for a planned growth of managers to meet future requirements is management development. • A systematic process of training & growth by which manegerial personnel gain & apply skill, knowledge, attitudes & insight to manage the works in their organization. Purpose: • Increase managerial capabalities • Enhance managerial effectiveness • Facilitate environmental adaptation • Improve managerial decision making • Facilitate managerial succession & career development • Aid managerial job satisfaction & retention MANAGEMENT DEVELOPMENT METHOD 1. On the job a. Coaching: when manager takes an active role in guiding another manager, it is called coaching.

If the coaching is done by someone other than immediate supervisor/manager, it is called mentoring. Coach sets goal, tells what, how, when it is to be done, follow up suggestions & correct errors. The effectiveness of this techniques on the ability of the coach. b. Understudy assignments: potential managers are assigned to work under experienced manager with a title ”assistant to”. S/he has to learn about the full duties & responsibilities of the position currently held by his superior.

Learns the complexities of problem that superior has faced and how to solve them, also learns decision making process. In the absence of superior has to work as ”acting” of superior.Organization ensures that a fully trained persons are available to replace manager during long absence, illness, transfer or promotion. c. Job rotation transfer or movement of executives from one job to another. The purpose is to provide diverse knowledge or overall knowledge and familiarizing with the different sectionsl job before they are posted as managers in the department.

d. Committee assignments Techniques where juniors are assigned to board or committes by the chief executives. In these committees, real problems are discussed, different views are debated and decisions are taken. The juniors get an opportunity to share in managerial decision making, to learn by watching others and to solve specific organizational problems. 2.

Off- the- job development a.Sensitivity training method to develop or changing behavior through group processess. Small group gather in unstructured learning situation where they discuss & interact with themselves. This discussion is facilated by professional behavioral scientist. Objectives are: • Improved understanding of how & why trainees act toward others and how their action affect others. • Insight in to why others act the way they do • Improved listening skill • Insight in to how group operates • Increased tolerance & understanding of others • Experimentation with new ways of acting toward people & feedback about how these new ways affect peopleGroup experience designed to provide maximum possible opportunity for the individuals to expose their behavior, give & receive feedback, experiment with new behavior & develop awareness of self & of others. – Chris Argyris 1.

Transactional analysis Used to improve interpersonal relations. In TA trainess are taught to analyze their interactions with others in terms of ego state being expressed. Basic assumptions of TA is that every individual personality holds three ego states: the parent, child and adult. The parent state is an ego state of authority & superiority. They are usually dominant, scolding and authoritative and they use frequently such words as ”should”, ”ought” and ”mustn’t”. The child contains all the influence that are natural to an infant, that is why they are emotional and acts according to the feeling of moment.

So in this ego state person may be obedient or manipulative, charming at one moment and repulsive the next. The adult stage is objective and rational. The adults deals with hear & know reality, listens with an open mind, state opinions, and actively engaged in probability estimating & rational decision making. It has been suggested that one who generally is low in parent, high in adult and high in child is likely to be most effective in dealing with others. 3. Lecture/seminar course 4.

Simulation exercise etc. Unit- 8 (Eight) CAREER PLANING AND DEVELOPMENT • A career is a sequence of positions occupied by a person during the course of a lifetime. – Decenzo & Robbins • Career is a sequence f separate but related work activities that provides continuity, order and meaning in a person’s life. – Edwin Flippo • A career is all the jobs that are held during one’s working life.

• A career path is the sequential pattern of jobs that form a career. • Career goals are the future positions one strives a part of career. • Career planning is the process by which one selects career goals and the path to these goals. The main purpose of career planning is to integrate individuals’ and organizational growth needs. • It helps to develop individuals and groups, provides opportunities and challenges and strengthens work cultures. • To increase managerial competence To attract competent person and retain them in the organization • To provide suitable promotional opportunities • To enable the employees to develop and make them ready to meet the future challenges • To increase the utilization of managerial reserves within an organization • To correct employee placement • To reduce employee dissatisfaction and turnover • To improve motivation and morale PROCESS OF CAREER PLANING: Self-assessment by employees- Exploring opportunities- Identification of occupational orientation Identification of high potential occupation- Setting career goals to meet the career issues- Setting career plans- Implementing career plans- CAREER DEVELOPMENT Career development consists of personal improvements undertaken by the individual employee, training, development and educational programs provided by the organization and various institutes.

• The career development is the process of guiding the placement, movement, and growth of employees through assessment, planned training activities and planned job assignment. • The most important aspect of career development is that every employee must accept their responsibility for development. • Various career development actions prove useful if an employee is committed to career development. The career development actions are: Job performance- Employee must prove that their performance on the job is to the level of standards established, if they wants career development.

• Exposure- They should expose their skills, knowledge, qualifications, achievements, performance etc. to those who take the decision about the career progress. • Resignation- Employee may resign the present job, if they find career opportunities elsewhere are better than those of the present organization. • Change the job- Employees who put organizational loyalty above career loyalty may change the job in the same organization if they find that career opportunities in other jobs in the same organization are better than those of present job. Career guidance- Counseling provides, information, advice and encouragement to switch over to other career or organization, where career opportunities are better.

• So, there are two types of mobility in career development actions- internal and external mobility. Why Career development program? Growth opportunities Quality of working life Competition for high talent personnel Avoid obsolescence Retention of personnel Improved utilization of personnel Effective organizational career development techniques include: • Challenging initial job • Dissemination of career option information • Job postings • Assessment centers • Career development workshops • Continuing education and training • Periodic job change Sabbaticals For more see: HRM- Decenzo and Robbins Individual career development is a three-step self-assessment process: • Identification and organization- Identify and organize your skills, interests, work-related needs, and values. • Conversion into general fields and a specific goals- Convert these inventories into general career fields and specific job goals. • Testing against realities- Test these possibilities against the realities of the organization or the job market. Unit- 9 (Nine) PERFORMANCE EVALUATION Once the employee has been selected, trained & motivated the next step of MGMT is to find out how effective it has been at hiring and placing.The tools used to ascertain whether an employee has shown her/his best performance on a given job is called performance evaluation. It is the assessment of an individual’s performance in a systematic way against such factors as job knowledge, quality & quantity of output, initiative, leadership abilities, dependability, cooperation, judgement etc. The assessment is not only concerned with past performance, it is also concerned with potentials of the employees for future performance.

Pupose of performance evaluation The overall objectives of PE is to improve the efficiency of an employee by attempting to mobilize the best possible efforts from individuals employed in it.Such evaluation achieves four objectives includiing the salary reviews; the development & training of individuals; planning job ratation and assistance promotion. – Cummings PE plans are designed to meet three needs, one of the organization & the other two of the individuals. i) They provide systematic judgements to back up salary increases, transfers, demotions or terminations. ii) They are means of telling a subordinate how they are doing and suggesting needed changes in their behavior, attitudes, skills or job knowledge.

They let them know where they stands with the boss. iii) They are used as a base for coaching and conselling the individual by the superior. Process of performance evaluationThe evaluation process consists following steps: Establish performance standards Communicate performance expectations to employees Measure actual performance Compare actual performance with standards Discuss the appraisal with the employees If necessary, initiate corrective action Uses of performance evaluation Performance feedback Reward management Training & development decisions Promotion, transfer, separation decisions Validation of selection tests Career & succession planning Supervisory understanding Policy formulation Methods of performance evaluation • Relative standards- performance of individuals are compared against other individuals.

Major relative standards major are: Individual ranking: supervisor or rater ranks the performance of subordinates in the order of their merit, starting from the best to worst or viceversa. Each individual gets their own rank, two or more person can not get the same rank. Group order ranking- employees are placed, grouped or ranked in to a particular classification by the evaluator according to the selected features such as; analytical ability, cooperativeness, dependability, self expression, judgement, leadership & organizing capacity etc. Such as- for outstanding A, B= very good, C= good, D= fair, E= poor and F= hopeless or distinction, first, second & third division. Paired comparison- appraiser compares each employee with every other employee, one at a time. E. g.

there are 5 employyes named A B C D & E. The performance of A is first compared with B and decision is made about whose performance is better. Then A is compared with C D & E in that order. Same procedure is repeated to other employees. After the completion of comparision, the results can be tabulated and a rank is created from the number of times each person is considered to be superior. Absolute standard Essay appraisal- the appraiser describes the performance, traits, behavior and potentiality of the employee on the job in a essay form. Checklist- a checklist of statements on the traits of the employees and their job is prepared in 2 columns that is ”yes” & ”no”.The supervisor tick these ”yes” & ”no” column according to their performance on given statement and forward the list to HR department where actual evaluation is done by alloting certain point to each ”yes”.

Forced choice- developed form of checklist, where two or more statement is provided to raters and raters has to identify which statement is most descriptive of the individuals being evaluated. The actual assessment is done by HR department. The main advantage of this method is that it reduces biasness because rater doesn’t know the right answer. Critical incident- this approach focuses on certain critical behavior of an employee that makes all the differences between effective and non effective performance on the job.Supervisor directly observes & records examples of behavior under the categories that indicate effective or ineffective performance frequently through out the year. This procedure can provide a sound basis for feedback to the individual so it is useful for devlopmental purpose. The danger is taht it may give the employees the impression that everything they do will be recorded which may harass them.

Graphic rating scale- this system consists of several numerical scales each representing a job related performance criteria such as- dependability, initiative, output, attendence, attitude, cooperation etc. Each scale ranges from excellent to poor. The rater checks the appropriate performance level on each criteria and computes the employees total numerical score.

Behaviourally anchored rating scales (BARS) Management by objective MBO is a process that converts organizational objectives in to individual objectives. Steps of MBO – Goal setting- generally supervisor & subordinates work together to establish goals. – Action planning- means are determined to achieve ends. This step includes identifying the activities necessary to accomplish the objectives, establishing the relationship between these activities, estimating time requirement and determining the resources required to complete each task. – Self control- subordinate themselves systematically monitor, measure and review their own performance.

Periodic review- the actual level of goal attainment is compared with the goals agreed upon. The evaluator explores reasons for goal that were not met and for the goals that were exceeded. Necessary corrective actions are taken. These reviews should take place at least two to three times a year. Factors that can distort appraisals • Leniency error- every evaluator has his or her own value system which acts as a standard against which appraisals are made.

Some evaluator mark high and others low. Positive leniency error and negative leniency error. If all individuals in an organization are appraised by the same person there will be no problem. Halo error- tendency to rate high or low on all factors due to the impression of high or low rating on some specific factor. • Similarity error- when evaluator rate other people in the same way that the evaluators perceive themseves, then they are making similarity error. • Low appraiser motivation- what are the consequenses of appraisa? Employee can be rewarde, not rewarded, punished , if evaluator knows, may not give the realistic appraisal. • Central tendency- reluctance to make extreme ratings in either direction; the inability to distinguish between and among ratees; a form of range restriction. Central tendency error prone rater rates all employees as average.

Inappropriate substitutes for performance- in many jobs it is difficult to get consensus on what is a good job, and it is even more difficult to get agreement on what criteria will determine performance. As a result appraisal is frequently made by using substitutes for performance; criteria that, it is hoped, closely approximate performance and act in its place. Suggestions for improved performance appraisal: i) behaviorally based measures ii) combine relative and absolute standard iii) ongoing feedback iv) multiple raters v) selective rating, trained appraisers, peer evaluations, post appraisal interview, rewards to accurate appraisers. Who should do the appraising? The immidiate supervisor Peer appraisals Rating committees Self ratings Appraised by subordinates 60 –degree feedback- ratings are collected ”all around” an employees, from supervisors, subordinates, peers and internal & external customers- a complete survey on individuals Unit- 10 (Ten) COMPENSATION ADMINISTRATION Compensation refers to all forms of financial returns, tangible service, and benefits employees receive as part of an employee relationship. -Milkovich Designing pay structure that will attract, retain and motivate the competent employees and which is perceived as fair by the employees, by considering the paying capacity of the organization is compensation management.

Purpose: • Establish fair & equitable pay system • Attract & retain competent human resources • Improve motivation & morale of employees Improve image of the organization as a ”fair pay” employer • Comply with legal framework related to compensation • Compensation administration Determinants of compensation policy 1. Legal framework 2. Union pressure 3. Organization’s compensation policies 4.

Equity considerations 5. Job evaluation 6. Competition 7.

Productivity Establishing pay plans Pay plan is concerned with assigning a monetary value to each job in the organization. Steps : Job analysis- process of describing the duties of a job, authority relationship, skills required, conditions of work and additinal relevant informations.Jobevaluation- systematically determining the value of each job in relation to all jobs within the organization. JE seeks to rank all the jobs in the organization & place them in a hierarchy that will reflect the relative worth of each job. Wage & salary survey- published surveys, consultant & agencies, advertisement, informal communication. Compensation structure- ranking, market rates for similar job, creation of job grades Difference between job evaluation & performance evaluation q Job evaluation i) The job is rated keeping in view such factors as responsibilities, experience, qualifications, skills, working conditions etc required for performance of the job. i) Job is rated before employee is appointed iii) Purpose is to establish satisfactory wage differentials iv) Not compulsory v) JE comittee & experts does JE q Performance evaluation i) Employee is rated on the basis of performance. ii) Performance evaluation takes place after the employees has been hired & placed on the job.

iii) Purpose is to reward, award, punish, assess training need iv) Compulsory & done regularly v) Performance evaluation is done by peers, employee themselves, supervisors, group of people or combination of these. Methods of job evaluation 1.Ranking method- worth of each job is assessed on the basis of its importance & content than compared with each other & rank of each job is determined. 2. Grading method- at first,the number of grade is decided; second, factors corresponding to these grades are developed; third, basic information about job are collected through job analysis; fourth, after analyzing these informations jobs are matched with the grades. The degree of skill, responsibility and other job characteristics are taken in to consideration while forming the job grade. 3.

Factor compariion method- i) Selection of key factors ii) Key factors may be- mental requirements, skills, physical efforts, job conditions etc. ii) These factors are assumed to be constant for all jobs. iv) All the jobs are compared one- by- one with the key factors v) The worth of the job is obtained by adding together all the point value. vi) It uses pay rate for each compensable factors. vii) Methods of job evaluation 4. Point method- evaluates the compensable factors. Uses points instead of pay rates according to the level/ degree of compensable factors. i) Compensable factors are determined- responsibilities, skills, efforts, job conditions etc.

Each factor is further subdivided in to sub factors. ii) Determine the level of factors- several levels are created for each factor. ii) Allocate points to sub factors and levels iv) Apply the point system matrix. Unit- 11 (Eleven) INDIECT FINANCIAL COMPENSATION Benefits are membership based rewards offered to all employees regardless of performance.

• It should not be expected to motivate employees. • Absence of adequate benefit can contribute to employee dissatisfaction and increased absenteeism and turnover. • Benefits: Something for everybody Types of benefits Legally required benefits: certain benefits must be supplied by the organizations for its employees, regardless of whether it wants to or not.

Such as social securities,unemployment compensation, workers compensation, disability 2.Voluntary benefits: rest period, holidays-dashain, tihar, vaccations-paid leave, sick leave, leave of absence- 14 days, pension & gratuity progarmmes, insurance, study leaves etc. SERVICES Those facilities which is provided by the organization at no cost to the employee or a significant reduction from what might have to be paid without the organization’s support. Such as- company sponsored events, counselling, cultural activities, credit unions, housing, free tea/coffee, discount, company picnic, educational assistance etc. Trends in benefits & services: Cafeteria style of benefits: the cafeteria approach allows employees to pick and choose those benefits that are desirable.

Core benefits are provided to all employees, remainder of the money to be spent on benefits left to the decision of each employee. INCENTIVES Monetary benefits paid to employees for outstanding performance. • Given in addition to wage & salary • Variable pay linked to performance Types of incentives Individual incentives: reward linked with the individual performance. Individual incentive plans are: a) Piece rate- compensation is based on number of units produced. Used for production worker. b) Commissions- based on sales performance in terms of value. Used for sales personnel.

c) Bonus- one-time lumpsum payments for meeting performance goal. Used for managerial & professional employees. 2. Group incentives- reward linked to the combined performance.Where task are interdependent and requires team work and the output of individual employee canot be measured such incentive is provided. Bonus, commission, piece rate. Organizational incentives- reward linked with the overall performance of the organization. a) Scanlon plan- it is based on the ratio of labor cost to productivity.

All employees are entitled to a share of saving in labor cost through bonus payments (productivity gain sharing). b) Suggestion plan- reward for useful ideas for improvement of organizational effectiveness from the employees. c) Employee shares some portion of profit.

Unit-12 (Twelve) HEALTH AND SAFETY The life of industrial workers is full of risks and hazards. Every year thousands of workers are injured in factories and mines.The injuries may be caused as a result of any unsafe activity, or as a result of some unsafe work conditions or unsafe acts of employees themselves, or defective plant or shop lay out, inadequate ventilation, unsafe and insufficient lighting arrangements, or insufficient space for movement inside the plant. One of the important consequences of all this is increased dangers to human life.

Partial disablement, total disablement, death. • Safety means freedom from the occurrence or risk of injury or loss. • Industrial safety or employee safety refers to the protection of workers from the danger of industrial accidents. • Accident is an unplanned and uncontrolled event in which an action and reaction of an object, a substance, a person, or a radiation results in personal injury. Causes of accidents: Human causes- carelessness, daydreaming, intoxication, inability to do the job, or other human deficiency etc. • Environmental causes– tools, equipment, physical plant & general work environment.

Among both these sources, the human factor is more responsible for the vast majority of accidents. Accident prevention measures include: • Education • Skill training • Engineering • Protection • Regulation enforcement as • Health- a state of complete physical, mental and social well being and not merely the absence of disease or infirmity. – WHO • Industrial health refers to a system of public health and preventive medicine which is applicable to industrial concerns. Industrial health is: i) the prevention and maintenance of physical, mental & social well being of workers in all occupations, ii) prevention among workers of ill health caused by the working conditions, iii) protection of workers in their employment from risks resulting from factors adverse to health and iv) placing and maintenance of the worker in an occupational environment adapted to their physical & psychological equipment.

The basic objective of industrial health is the prevention of disease and injury rather than the cure of disease. Unit-13 (Thirteen) LABOUR RELATIONS • Labor relations are the complex of interrelations among workers, managers and government. Employees, employers, their respective associations, government and judiciary are the parties which have stakes in labour relations. • Employees perceives LR as a method to improve their conditions of employment, to voice any grievances, to exchange views and ideas with management and to share in decision making.

• Trade unions look to LR in order to secure improved terms and conditions of employment and to obtain improved status for the workers in their work. • Employers have economic power in their hands and use it to affect workers’ destiny. They understand LR as a means to motivate workers and to sustain their commitment to work.

The role of employers’ association is relevant in as much as they represent employers in collective bargaining and develop machinery for avoidance or settlement of disputes. • The government seeks to protect the interest of both employers as well as employees. Constitute wage boards, labour courts, tribunals, and enacted a series of labour acts and policies. • The judiciary is relevant as it has the authority to settle any dispute and to review any legislation, particularly when it is against the constitutional provisions. Industrial dispute • Industrial dispute mainly relate to the strife between employers and employee. Industrial disputes mean any dispute or differences between employers and employers, or between employers and workmen, or between workmen and workmen, which is connected with the employment or non-employment or terms of employment or with the conditions of labour of any person.

– Industrial Dispute Acts, 1947, India Methods of settlement 1. Collective bargaining- representative of employee and management sit together and negotiate to settle the dispute. The collective bargaining process consists the following steps: i) organizing & certification, ii) preparation for negotiation iii) negotiation iv) ratification v) contract administration. 2. Conciliation- a process by which representative of workers and employers are brought together infront of third party, conciliator, with a view to persuading them to arrive at an agreement by mutual discussion between them.The third party may be an individual or group of people. Conciliator works as facilitator only, does not impose its views or decisions .

3. Mediation-where third party plays more active role and suggests various proposals for settlement of dispute but parties involved in the disputes are free to accept or reject such proposals. 4. Arbitration- is a procedure in which a neutral third party studies the bargaining situation, listens to both the parties and gather information and then makes recommendations that are binding on the parties. 5.

Adjudication- means a mandatory settlement of industrial dispute by a labour court or tribunal. Preventive measures:Institution of labor welfare officer & labor welfare work Works committees Bipartite & tripartite bodies Grievance procedures Workers’ participation Code of discipline, rules regulations etc. Collective bargaining Discipline Discipline- adherence to rules, regulations, procedures, and standard of acceptable behavior in an organizational setting. Disciplinary problems: • Attendance related- late for work, absenteeism, leaving work without permission, habitual tardiness, abuse of leave etc. • Job behavior related- insubordination, failure to obey safety rules, defective work, not reporting accidents, drunk, gambling, fighting on the job, destruction of property etc. Dishonesty related- theft, information falsification, punching time card of others, concealing defective work etc. • Outside activities related- unauthorized strike, working for competing firms, outside criminal activities, embrassing speeches, wage garnishing etc. Disciplinary action: i) Oral warning ii) written warning iii) suspension iv) Pay cut v) demotion vi) dismissal Grievances • Grievances are employee’s perception of unfair treatment on the job.

• When employees complaint is brought to the notice of management, it becomes a grievance. • Grievance is a written complaint filed by an employee claiming unfair treatment. Causes of grievancesInterpretation differences Management practices Labor union practices Personality traits Working conditions Handling employee grievances Open door policy- Employees are invited to walk in any time and express their grievances to higher level management. Legal compliance- Management takes legalistic view in handling grievances.

It follows the contract with employees and union. Handles the grievances as specified in the contract. Grievance procedure: • Grievant > Supervisor (verbal complaint) • Grievant > Department head (written complaint) • Grievant > Grievance committee (appeal for review) • Grievant > Top management ( appeal for review) Voluntary arbitration ( referred for arbitration) decisions binding on all Unit-14 (Fourteen) INTERNATIONAL HRM Due to the increasing trend of globalization, number of organizations of many countries are operating in different countries. Liberalization policy of developing countries has attracted many foreign direct investment as well as many multinational companies. In these companies people of many countries work together. Due to the competition in the global market- internationally oriented management practices have emerged and been adapted. IHRM is now of growing concern/importance for the companies that are operating or going to operate with the trend of globalization.The HRM issues and problems arising from the internationalization of business, and the human resource strategies, policies and practices which firms pursue in response to the internationalization process.

HR issues in international business: Selection & appointment • Recruitment policy – Ethnocentric: recruitment from parent country nationals – Polycentric: from host countries nationals – Geocentric: recruitment regardless of nationality – Regiocentric: recruitment made on the basis of regional needs 2. Criteria for selection: some of the most important criteria are- domestic employment record, technical & management expertise, language proficiency, family support, previous international experience & ability to operate independently. 3. Selection system 4.Preparation & training- what sort of special training do overseas candidates need four step approaches Level-1: training focuses on the impact of cultural differences & on raising trainees’ awareness of such differences & their impact on business outcomes. Level-2: aims at getting participants to understand how attitudes are formed & how they influence behavior Level-3: training provides factual knowledge about the target country, while Level-4: provides skill building in areas like language and adjustment and adaptation skills. Trends in expatriate training- first rather than providing only predeparture cross-cultural training, more firms are providing continuing, in-country cross-cultural training during the early stages of an overseas assignment. Second, employers are using returning managers as resources to cultivate the global mind-sets of their home office staff.Third, there is also increased use of software & internet for cross-cultural training. 5. Compensation- cost of living criteria, hardship allowances & others • The balance sheet approach- to equalize purchasing power across country. The basic idea is that each expatriate should enjoy the same standard of living s/he would have at home. • Incentives 6. Performance evaluation- 7. Repatriation- this is the problem of returning home after success or failure in the foreign assignment. If an organization fails to foresee the problems of repatriation, it will bring another big problem on the part of expatriates as well as the organization itself.Five factors important in international assignee success & their components: Job knowledge & motivation- managerial ability, organizational ability, imagination, creativity, administrative skills, alertness, responsibility, industriousness, initiative & energy, high motivation, frankness, belief in mission & job, perseverance Relational skills- respects, courtesy & fact, display of respect, kindness, empathy, non-judgmental, integrity, confidence flexibility/ adaptability- resourcefulness, ability to deal with stress, flexibility, emotional stability, willingness to change, tolerance for ambiguity, adaptability, independence, dependability, political sensitivity, positive self –image Extra-cultural openness- variety of out side interests, interest in foreign culture, openness, knowledge of local languages, outgoingness & extroversion, overseas experience Family situation- adaptability of spouse and family, spouse’s positive opinion, willingness of spouse to live abroad, stable marriage Source- Gary Dessler C Best of Luck C


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