“CONTENT Syllabus 7 (iii) Unit | Human Resource Management = 1 8 Unit I] Procurement - 32 Unit Il Training and Development = 71 Unit IV Performance Management System a 97 Unit V Compensation and Management = 120 Unit VI Emerging Horizons in Human Resource Management = 158 University Question Papers (with answers) os Pl onwards SOOSS Scanned with OKEN ScannerSyllabus B.Com. (Hons.) CBCS PAPER BCH 3.1 HUMAN RESOURCE MANAGEMENT Duration: 3 hours Marks: 100 Credits: Course Objective: The objective of this course is to enable learners to understand the importance of human resources and their effective management in organisations. Course Learning Outcomes: After completing the course, the student shall be able to: CO1: understand basic nature and importance of human resource management. C02: analyze thé current theory and practice of recruitment and selection. CO3: realize the importance of performance management system in enhancing employee performance. CO4: recommend actions based on results of the compensation analysis and design compensation schemes that are cost effective, that increase productivity of the workforce, and comply with the legal framework. COS: understand role of modern HRM in meeting challenges of changing business environment. COURSE CONTENTS Unit I Introduction: Meaning, importance and scope of HRM; Evolution of HRM; functions, status. and competencies of HR manager; Human Resource Planning—quantitative and qualitative dimensions; Job analysis—job description and job specification; HR Policies. Unit If Recruitment, Selection and Development: Recruitment, selection, placement, induction, and socialization - an overview; Developing Human Resources; Training - need, types, and evaluation; Role specific and competency based training. Unit I Performance Appraisal: Performance Appraisal Performance appraisal nature and objectives, methods of performance appraisal, potential appraisal & employee counseling; Job changes—transfers and promotions; HR audit. Unit IV Compensation: Job evaluation; Compensation—concept and policies, base and supplementary compensation, performance linked compensation— individual, group, and organisation level. (i @ Scanned with OKEN ScannerUnit V Employee Maintenance and Emerging Issues "= HRM: Employee health and safety, employee welfare, social security (excluding legal provisions); Grievance handling and redressal; Industrial disputes and settlement machinery; Emerging issues and challenges of HRM— employee empowerment, downsizing, work- life balance, use of technology in HRM functions; @-FIRM, green-HRM, outsourcing HRM, ethics in HRM (surveillance vs. privacy). Soooe scanned with OKEN ScannerHuman Resource Management Q. 1. Define HRM and discuss its features. (2014 June) ‘Ans, HRM stands for Human Resource Management. Human Resource refers to all the people working in an organisation at different levels. Management of the human resources with regard to their procurement, development, utilization and maintenance for the accomplishment of organisational goals is called Human Resource Management. Human resource management (HRM) refers to a formal system devised for the management of people within an organisation. It is concerned with the process of hiring and: developing employees so that they become valuable to the organisation. HRM is an essential function performed by each and every organisation. HRM is designed for the purpose of:maximising employees! performance. Itis the area of administrative focus that guides and governs the Employees of an organisation. Jt includes conducting job analysis, planning personnel needs, recruiting the right people, their orientation and training, Fanaging wages and salaries, providing benefits and incentives, evaluating performance, resolving disputes and communicating with all the employees at PT levels, Human resource management also involves motivating the workforce ond maintenance of healthy relationship with workforce and trade union. Hence human resource management is the process in which an organization undergoes the process of managing people in order to achieve its goals. ‘Some important definitions of HRM: TTIRM ie the planning, organising, directing and controlling of the procurement, development, compensation, integration maintenance and the separation of human resource to the ond that individual, organisational and social objectives are accomplished.” “HIRM is that part of management which is concerned with people Hosts be their relationship within an enterprise. Its aim is to bring together and devel ind with effective organisation of the men and women who make up an enterpris op into an aard for the wel-being ofthe individuals and of working groups, 1 en and having ‘make their best contribution to its success.” groups, to enable them to National Institute o “HRM is concerned with the people a Management (NIPM) organisation is made up-of people, acquiring their s , Management. Since eve motivating them to higher levels of performance and “rvices, developing their skill snnintain their commitment to the organisation are essen that they continue to ic ef Hal 5 objectives. to achieving organisational ecenzo and Robbins Scanned with OKEN Scanner2. @ Shiv Das DELHI UNIVERSITY SERIES i f procuring, developing « Hence HRM can be defined as a process of procu ving maintaining competent human resources in the organisation so that the gos an organisation are achieved effectively and efficiently. Tt simply is an art of managing people at work in such a manner that they contribute their best towards the accomplishment of organisational goals and objectives. Features of HRM: . : @ Deli ‘with Human Element. As it deals with the people at work, it needs to maintain and preserve human relations by developing them to the fullest. ; ; (ji) Pervasive function. HRM being a mandatory part of any organisation is all pervasive. It is the fundamental function allowing all levels of management to work efficiently. (i) Integral part of management. It is inherent in managing and is an integral part of the management. Every manager must possess skills to manage people under him in the best possible manner. (io) Variety of tasks. It involves a wide range of tasks to be performed ranging from human resource planning to recruitment, selection, placement, orientation, training and their compensation. (2) Continuous function. It is an ongoing function which never gets finished. It requires constant alertness and awareness of day-to-day operations. (vi) Multi-Disciplinary approach. It involves the application of knowledge drawn from several disciplines like sociology, anthropology, psychology, economics etc. Q. 2. What is the nature of HRM? Ans. HRM is a management function that helps managers to recruit, select, train and develop members for an organization. HRM is concerned with people's dimension in organizations. The following aspects constitute the core and nature of HRM: 1. A part of management discipline. HRM is a part of management discipline. It is not a discipline in itself but is only a field of study. HRM, being a part of management process, draws heavily from management concepts, inciples and techniques and appiy these in the management of human rescarcee > 2. Universal existence. HRM is pervasive in nature, It is present in all ente prises. It permeates al levels of management in an organisation, 3. Concerned with people. HRM is all about people at work, both as individ” als and groups. It tries to put people on assigned jobs in order to produce goo! results. The resultant gains are used to reward people and ae them to” wards further improvement in productivity, 4, Action oriented. HRM focuses attention on action, keeping, written procedures or rules. The problems of through rational policies. 5. Directed towards Achievement of objectives. HRM is directed towar4® achievement of organisational objectives by providing tools and techniques managing people in the organisation effectively, : 6. Integrating mechanism. HRM tries to build and maintain cordial relati°® between people working at different levels in the organisation. It tries to intee™ human assets in the best possible manner for achieving organisational g@ rather than on record employees are solv a Scanned with OKEN ScannerUnit I= HUMAN RESOURCE MANAGEMENT @ 3 7. Development oriented. HRM intends to develop the full potential of em- ployees. The reward structure is turned to the needs of employees. Training is provided to improve the skill of employees. Every attempt is made to use their talents fully in the service of organisational goals. 8. Continuous process. HRM is not a one short deal. It cannot be practised only one hour each day or one day a week, It requires constant alertness and awareness of human relations and their importance in every day operations. 9, Comprehensive function. HRM is concerned with managing people at work, It covers all types of people at all levels in the organisation. It applies to workers, supervisors, officers, managers and other types of personnel. Q. 3. Explain the objectives of Human Resource Management. Is it the responsibility of Human Resource Department only? (2010) "Ans, Human Resource is the aggregate of inherent abilities, acquired knowledge and skills represented by the talent and aptitude of the persons employed in an organisation. Management's basic job is the effective utilisation of human resources for the achievement of organisational objectives, that could be profitable operations and growth through the satisfaction of certain needs of customers and society. The effectiveness with which various kinds of human resources are coordinated and utilised is responsible for success or failure in achieving organisational objectives. Every. aspect’ 6f a firm's activities is determined by the competence, motivation’ and \genéral effectiveness of its human organisation. ‘ : Following are the main objectives of Human Resource Management (HRM): 1. Organisational objectives. These functions acknowledge the function of ree Tesource management in organisational effectiveness. HRM helps the business to accomplish main objectives. HRM is the means for an organisation to achieve effclency and effectiveness. It serves various functional 2 help an organisation to attain efficiency in its operations and attain its goals. Acquiring right people for the job and training and developing them, are the main organisational objectives of HRM. HRM ensures that right 1 e and umber of employees are always available to an organisation. Tt clso cans at Proper utlisation and maintenance ofthe workforce, i . . Functional objectives. These objectives attemy zaren department's contribution at a level suite for the onpaniaations tte an Human resources are required to be adjusted to-match the demends of the organisation, The HR department's level of service should be customised to suit the business it assists. HRM performs various functions for other departmente, HRM must make sure that the cost of maintaining an HR d cont he ah organisation should not exceed the benefits offered by i eee . Personal objectives. These objectives helps workers in attaini , personal goals. and objectives, uch ebjectves boost ‘the: ele lenie contribution to the organisation, Fulfilling such objectives helps an organisation in retaining, maintaining and motivating the workforce. It helps in vaising the level of performance and satisfaction of the employees. HRM aims at achieving ee eacee ot tne nplayers and in return get their commitment. For 2 for the employees is a personal objective. @ Scanned with OKEN Scanner4 m Shiv Das DELHI UNIVERSITY SERIES 4, Societal objectives. The societal objectives are socially and ethically accountable for the requirements and difficulties of society. HRM makes sure that an organisation must consider legal, ethical, social and environmental issues. HRM ensures. that legal issues like equal pay for equal work are not violated by an organisation. Various social issues can affect an organisation’s decisions regarding its human resource. For example, the society may restrict human resource decisions in employing the laws that deal with discrimination safety or other such aspects of societal concern. Other objectives (HRM): — To help an organisation achieve its goals and objectives. ~— To ensure effective utilisation and maximum development of human resources. ig — To ensure respect for human resources and to identify and satisfy the needs of the employees. — To ensure reconciliation of individual goals with organisational goals. — To provide job satisfaction to the employees and raise their morale. — To provide an organisation with well-trained, motivated and committed employees. — To develop and maintain quality of work life. — To establish and maintain an adequate organisational structure: of relationship among all the organisational members. — To ensure effective utilisation of human resources as all other organisational resources will be utilised by human resources. — To inculcate the sense, of team spirit, team work and inter-team collaboration within an organisation. — To enhance the knowledge, skills and capabilities of the employees so that they can perform their job to the best of their ability. Responsibility of HR Department. Though the HR Department is created under the supervision of a person designated as HR Manager, it should not be assumed that the other managers are relieved of this responsibility. Generally, the HR Department is assigned the operative functions of employment, training, development, appraisal, compensation, etc. HR Management is the prime responsibility of every Line Manager. The HR Department can do a great deal by assisting them in discharging this responsibility. HR Management is the responsibility of all those who manage people as well as the work of those who are employed as specialists. It is that part of management which is concerned with people at work and with their relationships within an enterprise. Q. 4. “HRM is a process of bringing people and organisations together 8° that the goals of each are met. It is a part of management process which is concerned with the management of human resource in an organisation.” Pas* your comments on this statement. What are the main functions of HRM? ~~ (2013 Now) Ans. Human Resource Management (HRM) is defined as the art of procuring: developing and maintaining competent workforce to achieve the goals of La organisation in an effective and efficient manner. In light of this definition. above statement holds true. People have always been central to organisation @ Scanned with OKEN ScannerUnit I-HUMAN RESOURCE MANAGEMENT # 5 but their strategic importance is growing in today’s knowledge based industries. ‘An organisation’s success depends on the knowledge, skills and abilities of employees. With appropriate HR policies.and practices an organisation can hire, develop and utilize best brains in the market place, achieve its professional goals and deliver results better than others. Main functions of HRM: * To help the organisation reach its goals. HR department like other departments is an organisation that exists to achieve the goals of the organisation first. + To employ skills and abilities of the workforce efficiently. The primary purpose of HRM is to make people's strengths productive and to benefit customers, stockholders and employees. To provide the organisation with well trained and well-motivated employees. HRM requires that the employees should be motivated to exert their maximum efforts, that their performance be evaluated properly for results and they be remunerated on the basis of their contribution to the organisation: * To maximise the employees’ job satisfaction and self-actualisation. It tries to prompt and stimulate every employee to realise his potential. To develop and maintain quality of work life. It makes employment in the organisation a desirable, personal and social situation by designing suitable programmes for improving OWL. To communicate HR ‘policies to all employees. To make people understand all the statutory and non-statutory (voluntary) benefits given to them by the organisation is also a job in HRM. + Q. 5. (@) “Human Resource Management is the responsibility of all managers.” Comment on this statement. (2015) (b) Distinguish between HRM and HRD. What competencies are required to be a successful HR manager? Or, Define competency in the context of HRM. Discuss its various types. Or, What are the various types of competencies in the context of HRM. Ans. (a) “Human Resource Management is the responsibility of all Managers.” This statement is aptly stated as each and every manager working in whichever department is constantly dealing with people who are nothing but valuable human resource of the company. It is the duty and responsibility of all the managers to get things done from the employees in a mutually beneficial set up. They are required to fulfil major objectives like: (f) Effective utilisation of human resources; (i Providing desirable working relationships among all members of the organisation; and (iif) Maximum individual development. In fulfillment of the above objectives all managers of the organisation are supposed fo perform the role of human resource manager by planning, devel administering policies and programmes designed to make ‘of an organisation's human resources. It is that part of ich is concerned with the people at work and with their @ Scanned with OKEN Scanner6 m Shiv Das DELHI UNIVERSITY SERIES relationship within an enterprise. Hence, it can be said all the managers are in Y. ers. “Oo peers Management (HRM) is directed mainly toway managerial needs for people resources in organisations, with greater empha: being placed on planing, monitoring and control rather than on problem solving and mediation, in Human Resource Management, deploying of human resoun? in correct numbers with the right skills a the right price is more important trace patronising involvement with people’s personal affairs. The human resource manager starts not from the organisation’s employees, but from the organisation's need for human resource; with demand rather than the supply The starting point of HRM is the recognition that people are not simply one cfs factors of production but the major source of competitive advantage, Han companies recruit, train, reward, motivate and discipline their employees is of crucial importance to business success, Human Resource Development the activities and processes und psychological, cultural, social and organisation in order to help them achi for the community. HIRD is not a set of techniques but a process of helping people to acquire fete encies: It is a process by which the employees of the organisation are helped in a continuous and planned way to * acquire or sharpen capabilities required to perform various functions of their present and future roles; + develop their general capabilities as individuals and brin; for organisational development purposes; * develop an organisational culture Pride of employees; and * HRD process is facilitated by mechanisms like rotation, training and career development. Competencies required to be a successful human resource manager. Competency is the set of demonstrable characteristics and skills that enable snd improve the efficiency of performance of a job. According to certain HR Scholars “Competence! is a combination of practical and theoretical knowledge, cognitive skills, behaviour and values used to improve performance or is the state or quality of being adequately or well qualified, having the ability to perform a specific role. In the context of HRM, competency is the combination of observable and measurable Knowledge, skills, abilities and personal attributes that contribute to enhance employce performance and ultimately organisational success, According to United Nations Industrial Development Organisation (UNIDO), ‘Competence is defined as knowledge, skill and specifications which can cause one person to act better, not considering his Special Proficiency in that job.’ According to Industrial Development Organisation of United States, Competencies are a collection of personal skills related to knowledge and personal specifications which make people competent without having practice and’ specialised knowledge’. Thus, competencies are measurable characteristics of a person which are related to efficient actions at work, organisation and special culture. (HRD) at the organisational level, includes lertaken to promote the intellectual, moral, ig out inner potential which is conducive to motivation and performance appraisals, job Scanned with OKEN ScannerUnit I- HUMAN RESOURCE MANAGEMENT @ 7 Following are certain core competencies associated with HRM: () Accountability. It is concerned with responsibility for own actions and decisions and demonstrates commitment to accomplish work in an ethical, efficient and cost effective way. (i) Adaptability. It is concerned with adjusting to planned work by gathering significant information and applying critical thinking to address demands of the changing environment (ii) Communication. It involves both speaking as well as listening, skills. It aims at exchange of information, ideas and facts for the purpose of common understanding. (jv) Leadership. It conveys one’s vision in ways that gain the support of others. Leaders act as monitors and motivators. They guide and direct the actions and efforts of the subordinates. (v) Team focus. Team focus is concerned with cooperation. It means working with others to achieve common goals. People with such competence participate in building a group-identity characterised by trust, pride and commitment. (vi) Inclusiveness. It is associated with fostering respect for all individuals and their points of view. It encourages interaction with all the members of the organisation. It demonstrates a personal commitment to create an amicable environment for everyone. (vii) Occupational knowledge/technology orientation. It is concerned with the appropriate level of proficiency in the principles and practices of one's field or profession. It demonstrates a commitment to continuous improvement, to include application and understanding of technolog Q.6.”To be a successful HR professional, one must have excellent qualities of head and heart.” Discuss. (2016) Ans. Certain essential qualities that a good HR professional must possess are: () Knowledge and expertise in Human Resources. An HR professional should have concrete knowledge in the field of human resource. He should be capable of handling the daily challenges associated with handling and managing people. A good HR professional should be able to solve all types of issues, patiently and fairly. (i) Communication. A good HR professional must possess good communication skills. He should be a good speaker as well as a good listener. He should be able to deal with people in a friendly and professional manner. He should be very good in written and formal communication. Effective communication is a key to success for an HR professional as he directly deals with the human element in the business. (ii) Management and self discipline. An HR professional should be good at time management and self discipline. He should set an example for others to follow. He should effectively and efficiently complete the tasks assigned to him. The manner in which he performs his job should set an example for others. A good HR professional should manage his time Scanned with OKEN Scanner1m Shiv Das DELHI UNIVERSITY SERIES efficiently and wisely. He should act as a guide for other workers so that they too can manage their time wisely. (je) Trustworthy. A good HR professional should be trustworthy. This is one of the most important qualities that an HR professional should possess because employees open up only to those whom they can trust Being trustworthy also involves the element of confidentiality. A good human resource professional should never lose his credibility. Hence an HR professional should try his best to keep his credibility. (©) Impartial. A good HR professional should have the ability to remain neutral. He should take his decisions based on facts and relevance of the available information. He ‘should not be guided by his intuitions and personal opinions. He should be practical and should be capable of performing well under pressure. His decisions should be based on facts not on emotions. . (vi) Enthusiasm to share, develop, coach and mentor. A good HR professional should have enthusiasm to coach and mentor people. He should have the quality of developing human resource for the organization. He should be capable of effectively sharing his knowledge and intellect with the people of the organization. Providing training to the employees is the most important job of any HR professional. He should keep the employees up-to-date and should help them in developing their skills and talent. He should provide sufficient knowledge to the people of the organization so that they can perform to the best of their ability. Q. 7. In what ways is Human Resource Management important for the success of modern day organisations? (2011) Ans. Human Resource Management is the management of people at work. HIRM is the part of the organisation that is concerned with the “people” dimension. Human resources are considered as the most important asset for any organisation. Their effective and efficient management is essential for any organisation. HRM plays a vital role in accomplishment of organisational goals and objectives. HRM ensures that organisations can operate efficiently and that employees are able to work in a safe environment. HRM is important as it is used for the purpose of recruiting, selecting, and training of workforce. It helps in implementing performance appraisals, ensuring workplace safety and motivating the employees. It improves communication within the organisation. HRM reduces the costs associated with employee turnover and hiring new workers to fill job positions. HRM makes sure that employees receive fait compensation for their work. It also helps in building a strong employer employee relationship and in increasing the level of employee satisfaction within the organisation. For the success of any organisation HRM plays an important role due to the following reasons: (@ Objective. HRM helps an organisation to achieve its objective from tim? to time by creating a positive and favourable attitude among workers: ] Scanned with OKEN Scanner‘Unit I-HUMAN RESOURCE MANAGEMENT @ 9 HRM aims at reducing w: available resources are Wiilised eel by on oreo makes sure that (ii Recruitment and training. HRM prepares plete andl seatepi the tight kind and number of people Tt teen Strategies for hiring 7 dete er of people. It designs the criteria that is be: suited for a specific job description. HRM formulates the obligati 7 employee and the scope of tasks assigned to him or her, HRM also plays an important role in providing necessary training to the employ ae per the needs of an organisation. Training helps in increasin; & the skills and knowledge of the employees. Thus, HRM plays an important role in __ enhancing the overall performance of the organisation. (iii) Performance appraisals. HRM motivates the people working in an organisation to work as per their potential. HR managers review the performance of the employees and provides them with necessary feedback. Hence performance appraisal when taken regularly encourages employees to perform their job to the best of their ability. __ This improves the performance of an organisation in the long run. (iv) Maintaining work atmosphere. HRM helps in maintaining good and healthy work environment within an organisation. The performance of an organisation is largely driven by the work atmosphere or work culture that exists at the workplace. Good working conditions is one of the benefits that the workers expect from an efficient HR team. It is the obligation of the HR department to provide a safe, healthy and clean environment to’the workers. HRM plays a key role in maintaining a spirit of teamwork and cooperation within the organisation thereby improving its performance. (©) Managing disputes. Another obligation of HRM is to settle down disputes and conflicts that exist within the organisation. There is a great possibility that conflicts and disputes may occur between the workers ind the employers. In such a situation HR manager acts as a consultant snd mediator to sort out various issues prevailing between the employers and the employees. HR department aims at resolving various issues within an organisation before they reach an uncontrollable point. Thus, HRM is important to maintain peace and harmony within the organisation. (vi) Developing public relations. HR manager also aims at establishing good public relations. They organise seminars, gatherings, meetings, Boo" Fe. on behalf of the company to create a positive image of company among the general public. HRM also helps the organisation in preparing a good business and. marketing strategy: Thus, HRM is Important for a business to enhance its favourable image emong the general public. wii) Compensation. HRM plays an important : pci iene for the eapleyess of the organisation. They set competitive wages and salaries. They carry out extend-ft wage ane salary surveys to maintain compensation costs line with the organisation’s current financial status and projected — Compensation plays an important role in. keeping the workforce t role in developing realistic Scanned with OKEN Scanner40 Shiv Das DELHI UNIVERSITY SERIES : ' ir rate of compensation increases the ' msvted and comme, Falk 9a a anton: Hees HRM boosts up the performance of the entire organisation by paying the -ying rate of compensation. . : iti) em vnc, FIRM roures that the organisation complies - various laws prevailing in the country. They complete the paperwork necessar for documenting that the company’s employees are eligible to work in the state and the country. HRM also makes sure that the company complies with all the other laws, which are mandatory for employment and other organisational aspects. ae |. (ix) Liability. HRM plays an important role in minimising the organisation's exposure and liability related to allegations of unfair employment practices. HRM identifies, investigates and resolves various workplace issues. HRM helps the organisation in various legal matters. Q.8. “Effective management of human resources is essential for the welfare of an organisation, a society and a nation.” Elaborate on this statement giving the importance of HRM. Ans. Importance of HRM: (a) At the Enterprise level: () Good human resource practices can help in attracting and retaining the best pedple in the organisation. Planning alerts the organisation and also tells as to what kind of people it will need in the short, medium and long run. (i) It helps “in. training people for challenging roles, developing right attitude towards the job and the organisation, promoting team spirit among employees and developing the spirit of loyalty and commitment through appropriate reward scheme’. (0) At the Individual level. Effective management of human resources helps the employees as well. (i) It promotes team-work and team spirit among the employees. (i) It offers excellent growth opportunities to people who have the potential to rise. (iii) It allows people to work with diligence and commitment. (0) At the Society level. Society, as a whole, is the major beneficiary of good human resource practices. () Employment opportunities multiply. (i) Scarce talent is put to the best use. Business organisations that pay well cae People well, will always race ahead of others and deliver excellent results. (@) At the National level. Effective use of human resources helps in exploitation of natural, physical and financial resources in a better way. People with right skills, proper attitude and appropriate values help the nation to get ahead and compete with the best in the world leading to eradication © unemployment and therefore better standards of living. ioe HEM involves all management decisions and practices that diretlY influence the people who work for the organisation”. Discuss. Or, Discuss the managerial and operative functions of a HR managet: Scanned with OKEN ScannerUnit I= HUMAN RESOURCE MANAGEMENT # 11 Ans, HRM is mainly concerned with two sets of functions viz, managerial and operative, Since all these functions involve direct or indirect interests of all of the employees of the organisation, this justifies the statement that “HRM involves all management decisions and practices that directly affect or influence the people who work for the organisation”. Managerial Functions, ‘The basic managerial functions are planning, anising, directing and controlling. * Plant . This function deals with determining the future course of action to achieve desired results. The HR manager is expected to determine the personnel programme regarding recruitment, selection and training of employees. + Organising. This function is primarily concerned with proper grouping of personnel activities, assigning of different groups of activities to different individuals and delegation of authority. * Directing. This involves supervising and guiding the personnel. The HR manager must take care of the concerns and expectations of employees at all levels. + Controlling. This, involves measuring the employees’ performance, correcting negative deviation and industrially assuring an efficient accomplishment of plants. Operative Functions. The operative functions of HR Manager are related to specific activities of personnel management viz. employment, development, compensation and industrial relations. s Procurement function. It is concerned with procuring and employing people with the necessary Knowledge, Skills and Abilities (KSAs). This involves job analysis, manpower planning, recruitment, selection, placement, induction and internal mobility. + Development. It is a process of improving, moulding, changing and developing the skills, knowledge, creative ability, aptitude, attitude, values and commitment based on present and future requirements both at the individual and organisational level. This mainly involves functions like Training, Executive development, Career and Succession planning and Human Resource Development. + Motivation and Compensation. It is a process which inspires people to give their best to the organisation through the use of intrinsic and extrinsic rewards. . + Maintenance, It is preventing and preserving the health (psychological ious statutory and non-statutory and physical) of employees through vari measures. * Integration function. Th is tries to integrate the goals of an organisation with employee aspirations through various employee centric programmes like redressing grievances promptly, instituting proper disciplinary measures, empowering people to decide things independently, ete. Q. 10. Explain the role/responsibilities of an HR manager. Ans. Role/responsibilities of an HR manager: ‘ () Assisting top management in policy formulation and implementation. The HR manager generally proposes and drafts new HR policies or policy @ Scanned with OKEN Scanner42 m Shiv Das DELHI UNIVERSITY SERIES ee ee ee final authority to decide on HR policies is with the top management of the organisation. ‘The HR manager also monitors the performance ot managers to ensure conformity with established HR policies, procedures and practice. To avoid confusion on HR policies, managers can even turn to the HR manager for olicy interpretation. P (i) Providing a host of service activities. An HR manager also engages ina host of service activities such as recruiting, selecting planning and conducting training programmes, and hearing employees’ concerns and complaints. His technical expertise in these areas forms the basis of HR programme design and implementation. (iii) Rendering advice and counsel as an in-house consultant. An HR manager often serves as an in-house consultant to supervisors and managers. Given his knowledge of internal employment issues (policies, labour agreements, past practices and needs of employees) as well as his awareness of external trends (economic and employment data, legal issues, and the like), the HR manager can be an invaluable resource person for making decisions. (iv) Serving as an employee advocate. One of the enduring roles of an HR manager is to serve as an employee advocate, i,, listening to the employees’ concerns and representing their needs to their superiors. Effective employee relations provide a support structure when disruptive changes interfere with normal daily activities. Q. 11. Critically examine the evolution of HRM in India. ‘Ans. Evoluation of HR in India. The roots of HRM in India lie back in the 1920s and 1930s when’ the Royal Commission was formed to examine the situation of labour in the country. The commission recommended appointment of labour officers and other changes. The changes suggested by the Royal ‘Commission led to the bringing in of standardisation and that was the first step towards introduction of personnel management. Formation of trade unions with close links with political leaders like Mahatma Gandhi affected the way industrial workers were managed. This transition made an adequate number of employees available to the industry and disciplined the rural and less educated workers. During this time various legistations related to labour management were passed and various disputes were settled. During that time there were various progressive employers who personally started taking care of thei employees. Tata steel introduced services of welfare measures for employees much before it become mandatory by law. : After Indian Independence various changes took place in the personnel management approach of organisations. Due to adoption of the policy of mixed economy after independence, both public and private sector co-existed in the economy. Public sector organisations were the largest employers and received huge investments. Along with industrialisation the movement of trade unions existed in India, It also resulted in emergence of personnel systems. The workers became more aware about their rights and it became difficult for organisations exploit them. The HRM function in the decades of 70s and 80s included the following: (i) Personnel and administration Scanned with OKEN ScannerUnit I- HUMAN RESOURCE MANAGEMENT m 13 (ii) Industrial relations Gii) Labour welfare During the same period there was a rise of managerial unionism where non workers without union rights joined to form associations that acted as pressure groups. Managerial unions exerted pressure on the public sector. This resulted in the need for managing the non-working staff. During this phase, Indian organisations started adopting tools and techniques that could help improving efficiency and productivity. From the mid 80s, HRM in Indian organisations grew through different phases under the influence of the following factors: () A welfare approach towards workers came into existence. (ji) A legislative framework for welfare of the employees came into picture. (ii) Government policies regarding labour management were introduced. (iv) Trade Unions emerged. (v) Concept of management started existing. (vi) Changes in the economy occurred. By this time various large organisations, business as well as non-business, had established separate departments to handle the personnel function with senior level managers handling them. Q. 12. Liberalisation, Privatisation and Globalization (LPG) have increased the challenges faced by HR managers. Do you agree with'the statement? Discuss. Or, Explain the changing role of Human Resource’ Management in today’s world. wt @ Or, Critically examine:the\“human resources policy measures’ undertaken by the government since. 1990s, Do you believe that these measures are adequate and in the right direction? Justify. ‘Ans. Human Resource Management (HRM) is the management of people at work. It seeks to achieve organisational, personal and societal goals. The objective is to attain maximum individual development, desirable working relationships between employers and employees and also employees and employees and effective moulding of human resources. HRM is the process of binding people and organisations together so that the objectives of each are attained. Globalisation and liberalisation has added new dimensions to HRM. In today’s world there is a mobility of manpower not only within the country but also people are being hired from across the globe. With this an assimilation is taking place of all kinds of races and new cultures, new ideas and new thoughts are being introduced in Human Resource Management making its role all the more important, Following are the challenges faced by HR managers: 1. Rework the vision and’ mission of the company. HRM is becoming increasingly involved with strategic planning and the development of means by which people can work proactively towards the achievement of organisational objectives. HR planning is closely linked with strategic planning, so as to support company mission and give incentives to support its achievement. 2. Attracting and Retaining Talent. The ability to attract and retain talent is a core HR capability that is critical to achieving sustainable business performance. One can retain the employees in the current situation only when a company creates a good employer brand, internally as well as externally by ensuring that People have good jobs which make them feel proud of working for the Scanned with OKEN Scanner14 m Shiv Das DELHI UNIVERSITY SERIES IT companies are facing a shortage of knowledgeable for the HR department. influence. It is the cre: organisation. Today, workers thereby creating a challenging situation 3, Empowering Employees. Empowering is mutual ve distribution of power. It is shared responsibility. In an ‘empowering organisation, managers should believe that leadership derives from all its employees and not Frome selected few. Managers of an empowering organisation should know that the company is most likely to succeed when employees have the tools, training, and authority to do their best ‘and understand that information is power and they share it with all the employees. 4, Managing Global Workforce. The biggest challenge that the organisations around the globe are: facing is to know the social classes and categories from which the new global workers are to be recruited, and to understand the systems of education and training that shape them so that they can be made socially and culturally fit to serve customers. Companies are going global due to which the svorkforee diversity is increasing. Managing the variety of people with different religious, cultural and moral backgrounds is a challenging task for the HR Managers in today’s world. 5. Managing Workplace Diversity. This is especially true for multinational companies (MNCs) who have operations on @ global scale and employ people from different countries and ethical and cultural backgrounds. Thus, an HR manager needs to be mindful and may employ a * think Global, Act Local’ approach in most circumstances. Thus, many local HR managers have to undergo cPltare-based Human Resource Management training to improve their abilities to motivate a group of professionals that are highly qualified but culturally diverse. Furthermore, HR professionals must assure the local professionals that these foreign talents are not a threat to their career advancement. 6 Eeonomic and Technological Changes. Several economic changes have oceurred that have altered employment and occupational patterns in India. A major change that is being observed is the shift of jobs from manufacturing and agriculture to service industry. The example of computerisation of banking industry which forced many to quit as they refused to adapt to the technological changes. The explosive growth of information technology, particularly that linked to the internet, has forced many changes throughout organisations of all types: 7. Challenges of Mergers and Acquisitions. Liberalisation, Privatisation a Globalisation (LPG), is as dangerous as it is beneficial. Increasing competition has forced the organisations to device ways and means to grow, perform and achieve excellence. Mergers and Acquisitions are being accepted as one of the most effective techniques to strengthen a company’s market position and adopt a new technology to gain competitive advantage over other organisations. The business situation keeps altering every day. Before even one comes to know, the ownership of the company changes hands, starting off a wave of uncertainty ® an acquired company. Suddenly the employees start feeling that their bosses have changed, if not physically, but in their attitude. Some of them fin themselves in grave danger of losing their jobs. A general de-motivating feeling perpetrates the organisation. The HR professionals have to perform certain activities with a set of skills and competencies. These include: (i) Creating transition teams. Especially those teams that will develop @ Scanned with OKEN ScannerUnit I-HUMAN RESOURCE MANAGEMENT m 15 infrastructure for new organisation process and design systems, address cultural issues etc. (i) Managing the learning processes. Since the new organisation will be having new set of business units with different technological needs. (iii) Recasting the HR department, ie., developing new policies and practices consistent with vision of new organisation. (iv) Providing inputs into managing the process of change. HR managers are the change champions providing the required change in the management skills to align the right people with appropriate knowledge and skill-base to meet the shared goals of the enterprise. 8, Other challenges: Ethics and Values. In the times when we are getting more professional and narcissist, it is very important to have Ethics and Values to be in place which also, in the lorig run decide the sustainability of the organisation. Balancing work and personal life, Huge responsibility is put on the shoulders of the HR Manager to create a balance between the work life and personal life by providing for flexi work hours, paternity leaves and vacations. Stress and Conflict. Long working hours, target pressures, high competition etc. add to the stress and conflicts in the Organisation. It is the duty of the HR Manager to have proper responses to the stress and conflicts before these cause damage to someone’s personality. Consultative approach. Developing continuous dialogue, open communication and participative decision-making are very important for implementing consultative approach. It is the HR Manager who can facilitate such approach to procure participative and democratic culture. Q. 13. Trace the development of Human Resource Management from its beginning in the 20 century till present. ‘Ans. Awareness regarding HRM was felt during the industrial revolution around 1850 in Western Europe and U.S.A. Only during the beginning of 20 century, it was felt in India. Since then to the present era, the development of HRM may be classified as follows: 1. Trade Union Movement Era. The conditions of workers in the aftermath of factory system as an outcome of industrial revolution, were very pathetic. The first world war worsened the situation. The Royal Commission of Labour in India in 1911, under the chairmanship of J.H. Whitely, recommended the abolition of the ‘Jobber’ system and the appointment of labour officers in industrial enterprise to perform the recruitment function as well as to settle workers’ grievances. Workers also started forming ‘trade unions’. The Trade Union Act, 1926 was passed in India. The basic object underlying trade union was to safeguard the worker's interest. 2. Scientific Management Era. The concept of scientific management was introduced by F.W. Taylor in the USA in the early part of 20th century as an altemative to the prevailing system of management by initiative and incentive based on his shop floor job experience. Taylor developed four principles of scientific management: (i) Development and use of scientific methods in setting work standards, Scanned with OKEN Scanner16 @ Shiv Das DELHI UNIVERSITY SERIES ining a fair work, and best way of doing work. 7) rae sdiection and placement of workers best suited to perform the various tasks and provision of their training and development for maximum efficiency. Ae (iii) Clear cut division of work and responsibility between management and workers. ; (iv) Harmonious relationship and close cooperation with workers to achieve performance of work in accordance with the planned jobs and tasks. In the scientific theory, Taylor viewed men and workers as one driven by fear of hunger and search for profit. Accordingly, if economic reward is tied up with the efforts put on the job, the worker will respond with his maximum physical capability. Taylor also developed several techniques to introduce his scientific ideas in management They were—1. Time study; 2. Motion study; 3. Standardization of tools, equipments, machinery and working condition; and 4. Incentiv 3. Human Relations Era. During the years 1925 to 1935, expe their opinions towards the human aspects of organis and his associates conducted a series of experi Hawthorne plant of the Western Electric Company ts The main findings of Hawthorne Experiments were as follows: (i) Physical environments at the work place do not have any on the efficiency of work (i) Favourable attitudes of workers and peyety impact on the morale and efficiency of w (iii) Fulfillment of the worker's social a beneficial impact on the morale and ettic (iv) Employee groups based on social interactions and common interests exercised a strong influence on worker's performance (v) Workers cannot be motivated solely by economic rewards. More important motivators are job security, recognition, right to express their opinion on matters related to them. The findings have stated that the relationship between the superiors and subordinates should relate to social and psychological satisfaction of the employees. : 4. Behavioural Science Era. Important elements of behavioural approach to HRM is as follows: (9 Individual behaviour is linked with the group behaviour. For example? Person may resist changing his behaviour as an individual. But he or Will readily do so if the group to which he or she belongs, decides ” __ change its behaviour. (@#) Informal leadership rather than the formal leadership of manager is 72% effective in influencing people to achieve standards of persormat According to their view, i more acceptable to the subordinates and hence more effective. ont (iii) By nature, people do not dislike work. Most people enjoy work 04 is motivated by self control and self development. expressed ton Mayo evial impact ts hac a beneticial scanned with OKEN ScannerUnit I-HUMAN RESOURCE MANAGEMENT 17 (iv) Expanding subordinate influence, self-control and_ self-direction can improve operating efficiency. 5, Systems Approach Era, A system may be defined as a set of interdependent parts forming an organized unit or entity. The parts, also known as sub-systems, interact with each other and are subject to change. These sub-systems are interrelated and interdependent. The system approach is characterized by the following features: () A system is a group of interrelated elements which are separate entities/ units. (ii) All the elements are interrelated in an orderly manner. (iii) There is the need for proper and timely communication to facilitate interaction between the elements. (jv) The interaction between the elements should Jead to achieve some common goal. At the heart of the systems approach is a Management Information System (MIS) and communication network for collection, analysis and flow of information to facilitate the function of planning and control. Modern thinkers consider HRM as a system that integrates activities with an objective to make the best use of resources which are always scarce. 6. Contingency Approach Era. Contingency refers to the immediate circumstances. Contingency approach believes that there is no one way of managing that works best in all situations. According to this approach, the best way to manage varies with the situation. Hence this approach is called as ‘situational approach’. There may not be one universal way of managing in all situations. A particular approach may yield fruitful results in one situation but may drastically fail in another situation. Therefore managers are to analyse different situations and then use the best approach suitable in that particular situation. Q. 14. Trace the events that led to the development of HRM in India. Ans. Like U.K and USA, the evolution and development of HRM in India was not voluntary. After the Second World War difficult conditions erupted in India. Malpractices in the recruitment of workers and payment of wages led to trade union movement. In 1931, on the recommendations of The Royal Commission of Labour, ‘Jobber’ system was abolished. After independence, the Factories Act, 1948 laid down provisions for Labour Officers, Labour welfare, safety and regulation of working hours and working conditions. Two professional bodies emerged. They are “The Indian Institute of Personnel Management’ (IIPM), Calcutta, now ‘Kolkata’ and the ‘National Institute of Labour Management (NILM), Bombay, now Mumbai. These two institutes are the guiding sources in Human Resource Management and Labour management. The massive thrust on basic industries in India during the First Five Year Plan (1956-61), which accelerated public sector undertakings, gave thrust to Personnel management and HRD practices. The professionalism in managing organizations became quite discernible by 1970s. There was a clear shift from welfare approach to efficiency approach. The two professional bodies IPM & NILM merged in 1980 to form National Institute of Personnel Management (NiPM) with Kolkata as its headquarters. : @ Scanned with OKEN Scanner18 m Shiv Das DELHI UNIVERSITY SERIES . has shifted to human values and Evolving along the years, the a Pee dha alte Seaiauing people te Prod uetivity inroust Peete Resource Management (HRM) 1990s, a new approach has emerged as Human ment (HRM), a development aspects of human resources, This approach focuses more on develop ieatigaat--calle foe Hose The changing internal environment in organizations eats Gea understanding of human resource management. The Brea climate of an organization is made up of traditions, values, habits, ways of organizing, and interpersonal relationships at work. Culture is reflected in organizational structure, strategy, systems, power and reward distribution, conformity, development process, motivational dynamics, organizational clarity, warmth and support received by employees, leadership styles, standard of performance and shared subordinate values. An effective work culture is flexible, integrated, decentralized, _performance-oriented, quality _ conscious, cooperative, collaborative, and supportive. The major elements of HRM strategy and functions can be related to organizational culture. Corporate mission, philosophy and strategic plan give birth to Culture in organizations. Q. 15. What are the recent.developments in the field of Human Resource Management? Ans. Recent Developments in Human Resource Management. Recent developments in the area of human resources managément include treating, the employees as economic, social, psychological and spiritital men and women. The important aspects of development of HRM year wise is shown below: + Inthe year 1995, emphasis shifted to human resources development (HRD), * In the year 1998, emphasis\on HRD, cultural diversity, teamwork and Participative management continued. Further, the newer areas emerged which included total quality in management in HRM, empowering the employees and developing empowered teams and integrating HRM with strategic management and the top Management. It was realised that HRM is the core of competencies of the 21st century corporations. In the year'1999, second National Commission on Labour was setup to study the labour conditions, In the year 2001, emphasis was laid on ‘smart sizing of the organisations’. * In the year 2002, emphasis shifted to positive attitude of the candidates/ employees rather than skill and knowledge. In the year 2003, there was a shift from intelligence quotient (IQ) to emotional quotient (EQ). In the year 2004, there was a shift from skilled workers to knowledge * In the year 2005, there and virtual structures, , p rhe ie pe, pet became the core of strategic management level. gement” {Ne Concept of HRM was relegated to human capital ‘ see emphasis was laid on retention management and With universties/oncenan 80urces by connpanies through allan b operations tcB*®: In the same year, there was a decline Was a shift from hierarchical structures to flexible Scanned with OKEN ScannerUnit I> HUMAN RESOURCE MANAGEMENT m 19 + The year 2009 saw a continuation of job cuts, pay costs and lay-offs due to prolonged global recession and crisis. “ : + In the year 2014, emphasis shifted to talent management and flexible human resource policies and practices. Q. 16. What is industrial psychology? What are the main objectives of industrial psychology? ‘Ans. Industrial Psychology is a scientific study of employees, workplaces, organizations and organizational behavior. Industrial psychology is also known as work psychology, organizational psychology or I-O psychology. An Industrial psychologist contributes by improving the workplaces, satisfaction and motivation levels of the employees, and helping the overall productivity of the organization. There is research done, after which suggestions, additions and improvements are made to various aspects like the feedback procedures, training of employees, job designs, team performances, organizational research, employee policies, recruitment policy, etc. Generally this helps when the organization is going through a transition phase, or during some new developments. Industrial psychologists are generally involved in research, and employ a variety of methods like surveys, case studies, interviews, experiments, observations arid quasi experiments for organizational improvements. There are also numerous quantitative techniques that are employed like regression, variance analysis, and different statistical modeling. Objectives of Industrial Psychology. The main objective of industrial psychology is to give the worker greater physical and mental ease at work. The Tim of industrial psychology is research rather than administration. The main objectives of industrial psychology are as explained below: ( Proper Man at Proper Place. Industrial Psychology has developed @ whole array of tests. By the use of systematic in-depth interviews and psychological tests such as intelligence, aptitude, skills, abilities and interest tests, the personnel characteristics of the persons are measured and proper man is selected and placed on the job. (i Proper Work Distribution. The next aim of Industrial Psychology is the proper distribution of work according to the ability and aptitude of the employees so that they feel satisfied and give maximum output at minimum costs. (ii) Minimising the Wastage. The Industrial Psychology also aims at minimising the wastage of manpower due to fatigue, illness, accidents etc. It studies several psychological factors causing fatigue or accidents and suggests measures for preventing the accidents or minimising fatigue. The techniques of motivation and morale are used for this purpose. (iv) Promotion of Labour Welfare. Industrial Psychology aims to promote labour welfarethrough job satisfaction, increase in labour efficiency, incentive provisions etc. (v) Improvement in Human Relations. The main aim of Industrial Psychology is to improve the human relations in the industry. Human relations may be defined as the “relations or contracts among individuals in an organisation and the group behaviour that emerges from these relations”. Industrial Psychology has made significant contribution in the sphere of human relations by developing concepts and techniques of leadership, supervision, communication and employee participation in management. Scanned with OKEN ScannerHI UNIVERSITY SERIES strial Relations. Industrial Paychology studies the (vi) Imp’ employees and offers suggestions to j (0) titade of SE ee auntie It assumes that all individuals. diffe from each other in degree though not in ae therefore, different treasures are adopted in solving the problems like promotions, transfer etc, relating to each individual, cei: Maximum Production. The chief aim of the organisation is to get the bes (ei Mawits from the available resources. Industrial Psychology helps in achieving this aim. The production is automatically increased if pro selection is made, the work is distributed properly, industrial relations are improved and human relations are promoted. ; Q. 17. What is the scope of work of an Industrial Psychologist? Ans. To achieve the aims and objectives of Industrial Psychology, the scope of work of the Industrial Psychologist can be described as follows: () To investigate and analyse in an unbiased manner the ways in which the human psychological problems are handled at present. (ii) To develop new methods of problem solving and/or modify the existing methods which have been tried and tested. (ii) To formulate certain principles and guidelines which will help in the solution of new problems. p In other words, we can say, that the scope of Industrial Psychology is limited to material and social environment to which an individual adapts himself while he is at work and by which his atlittide is modified. Industrial Psychology is the study of human behaviour at/ work; its scope is the entire process of management's dealings with people at work. Q. 18. To which areas of management are the principles, techniques and findings of Industrial Psychology applied ? Ans. The principles, techniques and findings of Industrial Psychology may be applied usefully to the following areas of management: ( Recruitment of Personnel. Psychology may help in recruiting right man for the right job. Accurate job analysis, standardised application forms, scientific screening of applications, use of psychological tests fot ational fitness, final overall rating and continuous review and follow- up of the entire programme are some of the areas where the psychologists can ood an important contribution, Several psychological tests may be : loped for proper screening of the people. (i Selection and Placement, To select the tight organisation, one should measure the ripen interests and temperaments, Industrial Psychology helps it Shiv Das DELI ovement in Indu: 20 the labour the next step is training the is tt they can perform. bel i ‘obs. It organising “an 2 tter at their present jobs. ’ Psychologist keeps amv, Aevelopment programme,’ the Industtt! r pment prc the executive group, "8* Of Boals in mind to increase the effectivencss° @ Scanned with OKEN Scanner‘Unit I-HUMAN RESOURCE MANAGEMENT a 21 (iv) Promotional Schemes. The promotion, demotion, transfer etc. of an employee should be based on abilities, usefulness and seniority. Performance, appraisal is one of the psychological techniques to recognise the people’s ability. Mere seniority should not be considered as the guiding principle for promotions. (2) Motivation. Industrial Psychology probes into the behaviour of people at work to determine the conditions in which an individual feels motivated and is willing to work wholeheartedly to maximise the productivity. Industrial Psychology has identified the financial and non-financial incentives which are used by the management to motivate the personnel. (vi) Attitude and Morale. To keep the morale of the personnel high is another significant problem of management. An industrial psychologist can go deep into the cause behind low morale of the employees and can determine the factors influencing the relationship between attitudes of employees and their performance. (vif) Wage and Salary Administration. The psychologists have developed the techniques of job evaluation, merit rating and job analysis as basis for rational wage and salary administration. Job analysis determines the job description and worth of the job, whereas merit rating evaluates the man. (viii) Public Relations. Industrial Psychology helps the management to develop effective and systematic public relations machinery in order to create a high image of the organisation. With. the rapid expansion and growth of industrial undertakings, the management is facing problems in effectively communicating its policies, procedures and practices to its employees, shareholders, consumers and general public. (i) Human Engineering. Human Engineering is designing and laying out equipment in order to get the greatest efficiency of man machine system. The industrial psychologists working in human engineering provide data on which management can decide to improve the design and the product for the comfort and to increase the sale to the satisfaction of the customers. (®) Accident Prevention. The Psychological Studies show that 98% of the accidents in the industry are preventable. It means personal or psychological factors play an important role in any programme of accident prevention. Monotony and fatigue studies help in minimising the accidents. Psychologists have made the contribution to the development of safety programmes and the prevention of accidents in the industry by analysing the factors that make man more accident prone than others. They have also suggested certain positive measures for reducing accident problems. (2) Organisational Behaviour. Managements in various public, private and even in other sectors, have been realising the importance of team spirit in the organisation and redesigning their organisational structures and policies based on research findings on organisational behaviour. Q.19. Give a detailed overview of the Organisation of the Human Resource Department. Ans. isation requires the creation of structural relationships among the eople and other resources to achieve the desired objectives. In order to combine and coordinate the efforts of people working at different levels in the organisation, proper relationship among them in terms of authority and responsibility should be set up. different departments, the pé Scanned with OKEN Scanner22 m Shiv Das DELHI UNIVERSITY SERIES ine Organisation. It is the oldest and the simples sonnel Department in Line Organis ; molt fo a nel nation structure and also known as the scalar or militar, organisation, Under this, the line of authority flows in a straight line from top tg the bottom of the organisation. Chief Executive HR Manager Recruitment | [Training | [Compensation] [ Welfare | [Industrial Manager_| | Manager Manager Officer_| | Relations Il. Personnel Department in Line and Staff Organisation. In order to achieve the benefits of both the line and functional organisation structures, the line and staff structure has been evolved. Under it, staff positions are attached to line executives. Line refers to those positions which have the responsibility and authority and are accountable for accomplishment of organisational objectives, Staff elements are those which have responsibility and authority for providing advice and service to line in the attainment of objectives. Under this, personne], department provides advice and assistance on.“personnel matters to all departments, Line and Staff Organisation is more suitable ‘to a large organisation, Chief Executive Personnel Manager Recruitment, Manager Office Marketing Office Production Office Structure. In a matrix organizational in that they are under dual authority. wroject team. Hence matrix V. Personnel Department in Matrix structure, employees have two superiors, ‘One chain of cominand is functional and the other is a p' structure is referred to as a multi-command system. Thus, the team of employees which comprise the personnel department have two superiors, ie, personnel manager (vertical dimension) and project manager (horizontal dimension). Both dimensions of structure are permanent and balanced, with power held equally by both the function head and a project manager. Scanned with OKEN Scanner24 m Shiv Das DELHI UNIVERSITY SERIES Marketing Director General Manager | { Manager | [ Manager Machines | | Electrical Marketing |; [Personnel } > [Finance a 7 1 1 | 1 ‘ |_(~ Personnel») : : ‘ Group | t ' ' 1 ' ' Light Industrial | 1 Per onnell ‘Machine : | ' 1 1 1 ' 1 ' ' 1 1 ' 1 Agricultural |__| t_( Personnel Machine Gtup Q. 20. Write a note on Human Resource Policies. Discuss their nature. What purpose do they serve? State the different types. (2011) Ans. Human resource policies are formal rules and procedures that dictate how certain matters should be addressed in the workplace including employee rights and duties. HR policies are tied to employment laws prevailing in the country. In order to avoid non-compliance and penalties from the government the employers must adhere to HR policies. HR policies are simply the guidelines on the approach an organisation intends to adopt in managing its workforce. It represents specific guidelines to HR managers on various matters related to em- ployment. HR policies are the formal rules and guidelines that organisations put in place to hire, train, assess and reward the members of their workforce. HR policies state the intent of the organisation about different aspects of human re- Source management like recruitment, promotion, compensation, training, selec- tion etc. They define the conceptions and values of the organisation on how people should be treated. Good HR policies provide general guidance on the ap- proach adopted by the organisation towards its employees and their manage- ment. Every organisation has a different set of circumstances and hence develops an individual set of human resource policies, Following are the main characteristics or nature of HR policies: () The HR policy presents the principles’ that guide the organisational ethical values of employees. (ii) HR policies are formulated after needs of the organisation. (ii) HI policies are reasonabl flexible to cover a normal considering the long range plans and ly stable but not rigid. The policies should be Tange of activities. Scanned with OKEN ScannerUnit I-HUMAN RESOURCE MANAGEMENT # 25 (jv) HR policies usually are formulated with due regard for the interest of all the concerned parties like employers, employees and the public. (0) HR policies are developed with active participation and support of the management and corporation. HR policies serve the following purposes: () HR policies provide clear communication between the organisation and their employees regarding their conditions of employment. (i) They help the organisation in treating all the employees equally and fairly. (ii) They guide the managers and supervisors in effectively handling people within an organisation. (iv) They create a basis for developing the employees handbook. Employee handbook is a book given to employees by an employer. It contains information about organisation's policies and procedures. (2) HR policies establish a basis for regularly reviewing possible changes that may influence employees and their performance. (vi) They help the managers and supervisors in conducting suitable training programmes. HR policies can be categorised on the basis of their source and their description: On the basis of source. Source based human policies are developed and formulated on the basis of the needs and wants of the employees. These can be further classified into the following — (i) Originated policies. These are the policies which are usually established by the senior managers in order to guide their subordinates. Senior managers provide guidance to the employees in order to develop their professional careers. Hence it is necessary to understand the originated policies for the empowerment of the employees of the organisation. (i) Implicit policies. These are the policies which are not formally expressed, they are inferred from the behaviour of managers which are also known as the implied policies. With the help of these policies the managers can express their intention in favour of the organisation. Such policies fulfill the needs of the managers. (iii) Imposed policies. These are imposed on the business by external agencies like trade unions, government, trade associations etc. (iv) Appealed policies. These policies arise as a particular case may not fall under the ambit of other policies. In such a situation subordinates may tequest or appeal for the formulation of specific policies. These policies are not actual policies. They are formed when prevailing circumstances do not fall in all the above mentioned policies on the basis of description. On the basis of description, policies maybe categorised into the following: (® General policies. These policies do not relate to any specific issue in Particular. Such policies are formulated by the top management. They are called general as they are not related to any specific issue in particular. (ii) Specific policies. These policies are related to specific issues like staffing, compensation, collective bargaining etc. These are related to specific Scanned with OKEN Scanner26 m Shiv Das DELHI UNIVERSITY SERIES issues of the company. Such policies are designed to undertake certa iesues of the organisation. ee Q 21. What are the benefits and leno of HR policies? Briefly ons involved in the formulation of policies. (2015) ae aman resource policies are the formal guidelines and rules that an organisation formulates with regards to the hiring, training, assessment ang rewarding of the employees of the organisation. Benefits of HR Policies: . ; The disputes, HR policies serve to prevent many disputes ang misunderstandings between the employer and the employee. A well drafted human resource policy will inform employees of their rights and duties. (i Rehires and promotions. HR policies explain the company’s stances on rehires and promotions. oo. (ii) Compensation and evaluations. HR staffers use a combination of analysis techniques and market surveys to determine the amount to compensate an employee while remaining competitive within the workforce. Further it sets policies relating to evaluation and management of human performance. () Training and development. HR policies include the training and professional development so that the employees know the resources that are available to them. (2) Employees’ issues. HR policies inform employees about how to handle the problems at work. They create avenues for employees to report any misconduct. (i) Labour law application. Labour laws are very vast and complex. Human resource policies include posting a breakdown of laws understand how the laws apply to them. (2ii) HR policies provide grounds for termination. (iii) Outlines the company’s internal policies and the company’s code of ethics. ° (i) Recruitment and employment. Advertising for hi i a . 18 for hiring employees is 2 Core function of HR because such policies provide right type of - ce foe Policies provide right type of people at «) Otis berets of HR policies are increased communication in the worl y i work ace ; luced management expenses and a more cooperative work Limitations of HR Policies: ( Recent origin. The concept i igi . The pt is of recent origin so it i y approved academic base and with the a of = neath _ *PPtoach will be developed. oe (ii) Lack of support of top mana; top level management. But in so the employees igement. HRM should have the rt of n suppo! oe Teality top management does not support it (ii) Improper actualization. HRM training and development 1 should be implemented by i 5 y assessing the ‘quirements of employees. The aspirations Scanned with OKEN ScannerUnit I- HUMAN RESOURCE MANAGEMENT @ 27 and needs of people should be taken into account while making HR policies. (iv) Inadequate development programmes. HRM needs implementation of programmes such as career planning, on-the-job training, development programmes, MBO, counselling etc. (2) Inadequate information. Some enterprises do not have requisite information about their employees in the absence of adequate information and data base in the system and hence may formulate inadequate policies. The development of HR policies depends upon the day-to-day problems arising in an organisation and their solutions. The process of Human Resource Policy formulation involves the following steps: (i Identifying the need. Identifying the purpose and objective which the organisation wishes to attain regarding its human resource department. Policies are required in various areas of personnel management such as hiring, training, compensation, employee relations, employee benefits, termination, industrial relations etc. (ii) Gathering information. Once the need for a policy has been accepted, the next step is to collect necessary facts for its formulation. The HR department should study existing documents, survey industry and community practices and policies and interview people within the organisation to collect appropriate information. The attitudes and philosophy of top management, social customs and values, aspirations of employees, labour legislation etc., all such factors need to be duly considered. (iii) Examining policy alternatives. On the basis of information collected, policy alternatives are evaluated and examined in terms of their contributions to organisational objectives. (iv) Putting the polici ing. After the necessary information has been gathered and the alternatives examined, the HR department can begin the actual work of formulating the written expressions of the company’s HR policies. While writing the policies emotional phrases should be avoided. (®) Getting approval. The HR department should send the policy draft to the top management for its approval. It is the top management which has the final authority to decide whether a policy adequately represents the organisation’s objectives or not. (vi) Communicating the policy. After getting the approval of the top management, the policy and procedure should be well communicated throughout the organisation to promote clear understanding of this newly formulated HR policy. (vii) Evaluating the policy. From time to time the policy should be evaluated There may be situations when an organisation is not getting the expected results. This requires modifications in the policies. Any serious difficulty with a policy along with suggestions should be reported to the top Scanned with OKEN Scanner28 @ Shiv Das DELHI UNIVERSITY SERIES management, Such knowledge will enable the management to decide whether there is a need to restate or reformulate the policy. Continuous revaluation and revision of the policies is needed to meet the current needs of the organisation. Q. 22. Why are HR policies needed? What are the essentials of sound HR policies? (2015) Ans. HR Policies are the policies and systems of codified decisions, established by an organisation, to support administrative personnel functions, performance management, employee relations and resource planning. Each company has a different ‘set of circumstances and so’ develops an individual’ set of human resource policies, Need for Human Resource Policies: () HR policies and procedures provide workplace structure. Absence of certain policies, such as working hours, disciplinary action, performance reviews, rules concerning worker safety, etc. leads to chaotic environment. * (i) Strategy. HR policies and procedures are necessary to achieve strategic goals of an organisation. Through a review of the company’s HR policies and procedures, leadership teams that develop strategic plans for the company learn what works and what doesn’t work concerning HR procedures and the work environment. (iii) Consistency. Achieving consistent operations is one of the reasons that HR policies and procedures are strongly recommended. Inconsistencies Jead to employee dissatisfaction and ultimately, workplace conflict. HR policies and procedures can prevent workplace conflict through providing a way for employment matters to be handled’ in a fair and consistent manner. (jv) Fairness. HR policies and procedures support equal employment opportunity in giving fair treatment to applicants and employees throughout the hiring process and the employment experience. (0) Best practices. Many organisations conduct routine analysis of their business operations. HR policies and procedures can aid in the analysis of HR practices and overall business practices. (0) Foundation of personnel functions. HR policies and procedures are a must for designing and implementing personnel functions such as recruitment, selection, personnel development, training and development, etc. A sound HR policy has the following essentials: () The HR policy should present the principle that will guide the organisation’s actions and reflect a faith in the ethical values of employees. (ii) The HR policy should be formulated after considering the long range plans and needs of the organisation. (iii) The HR policy must be reasonably stable but not rigid. It should be flexible to cover a normal range of activities. Change in a policy should be made only when it is essential and at fairly long intervals. Scanned with OKEN Scanner‘Unit I-HUMAN RESOURCE MANAGEMENT # 29, (jv) The HR policy should be formulated with due regard for the interests of all the concerned parties —the employers, the employees and the public community. (v) The HR policy must be developed with the active participation and support of the management and the cooperation of employees at the shop floor level and in, the office. It should be formulated with active participation of the trade unions as well. (vl) The HR policy should be definite so that itis easy to understand. It should be stated in clear, definite and easily understood terms so that what it proposes to achieve is evident. Q. 23. Define open door policy. (2016) Ans. Open door policy. It means that every manager's door in an organization is open to every employee. The purpose of this policy is to encourage open communication in an organization. It aims at encouraging open communication within an organization. Often companies opt for such policy to develop employee trust and to allow free flow of information within the organization. In simple words, it is a communication policy that encourages openness and transparency with the employees of that company. It helps in sustaining positive employee relations and encourages candid communication among employees. An open door policy promotes mutual respect and consideration in the work place and improves relationship among superiors and subordinates. Q. 24. Write a short note on Human Resource Inventory. ‘Ans. Human Resource inventory, also known as the skills inventory comprehensively lists down the basic information on all the employees, like their education, experiences, skills, age sex, salary related data, job preference and special achievements. It is.a vital tool used in HR planning and policy making, The information contained in the human inventory should be such that it is not only relevant to the current job position that an employee holds but can also be used by recruiters to consider the individual for other job openings that might come up in the future. Thus, the basic premise of maintaining a current skills inventory is to identify if there are gaps between the current level of skills and relevant knowledge possessed by the employees and the knowledge, skills and abilities (KSAs) needed to meet future business goals. Human resource inventory is the information or record about skills inventory of human resources currently employed is the organisation. It provides information about personal skill what they can do and what they are lacking, Various information included in the inventory are as follows: + Name, age, marital status of employee. + Formal academic qualification of employee. * Informal training and workshop undertaken by employee. * Specialised skills of the employees. + Experience from previous employment. * Current position held. * Job and location preference. * Salary level and benefits receiving * Performance rating of the employee, etc. @ Scanned with OKEN Scanner30m Shiv Daw DELHI UNIVERSITY SERIES Importance of WR inventory, Human resource inventory is very important document for HR planning, Its importance be listed as below: It provides information about skills and knowledge of employees currently working in organisation which can be reference for training and development planning, It is very useful to make planning, for recruitment and selection as it provides skills and abilities available in organi ; It helps in promotion and transfer of employees as it provides the information regarding, job preferences and interest of employees. It provides guideline for decision making, about displaying and eclively utilising current human resources in organisation. It helps to grab the opportunities for diversification and expansion of operation, Skills deficiency of employees can be managed effectively in an advance. + It provides information for job appraisal by rating their performance. Q. 25. Why achieving employee’s work-life balance is considered as a challenging issue for a HR Manager? What are the general workplace trends adopted by the companies for helping employees to have a work-life balance? Ans. Work-life balance is a concept that supports the efforts of employees to split their time and energy between work and the other important aspects of their lives. For an individual, work-life balance is a daily effort to make time for family, friends, community participation, spirituality, personal growth, self-care and other personal activities in addition to the demands of the workplace. The current newer generation of workers expects more. They do not live to work — they work to live. They do not see the point in earning higher salaries when they are never home to enjoy their salary. Because many employees experience a personal, professional and monetary need to achieve, work-life balance becomes challenging. Employers can assist the employees to maintain work-life balance by offering such opportunities as flexible work schedules, paid time off (PTO) policies, responsible time and communication expectations and company-sponsored family events and activities, ‘The pursuit of work-life balance reduces the experiences, when they spend majority of their days on work-related activities and feel as if they are neglecting the other important components of their lives, resulting in stress and unhappiness. Work-life balance enables employees to feel as Hn they are Paying attention to all the important aspects of their lives. Poor work-life balance leaves many employees feeling overworked and burnt out, pon increases absenteeism and reduces retention rates. BY supporting Her work-life balance, a company can expect more loyal employes faves the employees ing mene ee anacon ith both he jo and ‘ore motival i ie Workplace Trends for achi Work-life eee more efficient () Working hours. Providing more flexible and consultati torin tive restoring arrangements and working hours to including shift wen 6 hours to all the employees, including stress that an employee Scanned with OKEN Scanner‘Unit I-HUMAN RESOURCE MANAGEMENT 31 * Part time work. Providing more part time jobs with less hours ot fewer shits, or joe sharing arrangements to all the employees. + Reasonable working hours. Reducing excessively i and double shifts.” : A Dates Jaca (ii) Leaves: + Flexible leave arrangements. Providing greater flexibility in leave arrangements to suit employees’ personal circumstances, including leave for school holidays through purchased leave arrangements and extended leave without pay to provide full time care to family members. + Leave in single days. Allowing employees to request and take leave in single days and accrued hours as time off in liew of payment. (iif) Caring for family members: * In-house childcare services, co-coordinator to identify the availability of childcare, before and after-school care, vacation care facilities and to assist employees to find a suitable place for their children. * This service could be extended to assist the employees to find suitable eldercare residential or day-care facilities within the community for elderly family members. (iv) Provide time saving facilities and services for employees in workplaces, such as dry-cleaning pickup and drop off, access to readymade healthy take-away meals at the end of shifts, on-site ATMs, banking facilities and post boxes. (2) Job mobility. Providing increased mobility for employees to transfer between wards, hospitals, work areas and health services to find more suitable working arrangements that will assist them to better balance their current work and family/ personal responsibilities (vi) Safety and well-being. Improving safety, well-being and respect for all the employees in the workplace. scanned with OKEN Scanner