BBA

GGS Indraprastha University

BBA (B&I) 309: Human Resource Management

L-4, T-0, Credits: 04

Unit I lectures:-12

Introduction: Concept, nature, scope, objectives and importance of HRM; Evolution of HRM; Challenges of HRM; Personnel
Management vs. HRM., Strategies for the New Millennium: Role of HRM in strategic management; human capital; emotional
quotient; mentoring; ESOP; flexi-time; quality circles; Kaizen TQM and Six Sigma.

Unit II lectures:-14
Acquisition of Human Resources: HR Planning; Job analysis – job description and job specification; recruitment – sources and
process; selection process – tests and interviews; placement and induction. Job changes – transfers, promotions/demotions,
separations.

Unit III lectures:-8

Training and Development: Concept and importance of training; types of training; methods of training; design of training
programme; evaluation of training effectiveness; executive development – process and techniques; career planning and development.

Unit IV lectures:-12

Compensation and Maintenance: Compensation: job evaluation – concept, process and significance; components of employee
remuneration – base and supplementary; Performance and Potential appraisal – concept and objectives; traditional and modern
methods, limitations of performance appraisal methods, 360 degree appraisal technique; Maintenance: overview of employee welfare,
health and safety, social security.
 UNIT-I

INTRODUCTION:

HUMAN RESOURCE MANAGEMENT

According to Flippo, “HRM is the planning, organizing, directing & controlling of the procurement, development, compensation,
integration, maintenance & reproduction of human resources to the end that individual, organizational & societal objectives are
accomplished.”

MEANING OF HRM: -

HRM is management function that helps managers to recruit, select, train and develop members for an organization. Obviously
HRM is concerned with the people’s dimensions in organizations. HRM refers to set of programs, functions, and activities designed
and carried out

OBJECTIVES OF HRM: -

1. Societal Objectives: Be ethically and socially responsible to the needs and challenges of the society.

2. Organizational Objectives: To bring about organizational effectiveness.

3. Functional Objectives: To maintain department’s contribution and level of services at a level appropriate to the organization’s
needs.

4. Personal Objectives: To assist employees in achieving their personal goals, at least in so far as these goals enhance the individual’s
contribution to the organization.

CORE ELEMENTS OF HRM

• People

• Management

• Integration & Consistency

• Influence

• Applicability

SCOPE OF HRM: -

From Entry to the Exit of an employee in the organization, scope of HRM can be described based on the following activities of
HRM.

The following HRM Activities comes under the Scope of HRM –

1. HR Planning
p
2. Job Analysis

3. Job Design

4. Recruitment & Selection

↳
opp
5. Orientation & Placement
T9D
Appet

Pat
6. Training & Development

7. Performance Appraisals a
our
of
mya
8. Job Evaluation

9. Employee and Executive Remuneration

10. Motivation

11. Communication

12. Welfare

13. Safety & Health

14. Industrial Relations

FUNCTIONS OF HRM ALONG WITH OBJECTIVES

HRM Objectives Supporting HRM Functions

1. Legal
- Compliance - socia
- objective
Social Objectives 2. Benefits
-

3. Union Management Relations

-

-
1. Human Resource Planning
-
2. Employee Relations
3. Recruitment & Selection
Organizational Objectives Y
4. Training & Development

T
5. Performance Appraisals
6. Placement & Orientation
-
7. Employee Assessment

-
1. Performance Appraisals
Functional Objectives 2. Placement & Orientation
-
-
3. Employee Assessment

-
1. Training & Development
2. Performance Appraisals
-
Personal Objectives -
3. Placement & Orientation
v
4. Compensation
-
5. Employee Assessment

Managerial Functions of HRM

1. Planning: Forecasting manpower needs

2. Organizing: Organizing manpower and material resources

3. Staffing: Recruitment & Selection

4. Directing: Issuance of orders and instructions, providing guidance and motivation of employees to follow the path laid-down.

5. Controlling: Regulating personnel activities and policies according to plans.

Operational Functions of HRM

1. Procurement: Planning, Recruitment and Selection, Induction and Placement

2. Development: Training, Development, Career planning and counseling.

 3. Compensation: Wage and Salary determination and administration

4. Integration: Integration of human resources with organization.

5. Maintenance: Sustaining and improving working conditions, retentions, employee communication

6. Separations: Managing separations caused by resignations, terminations, lay offs, death, medical sickness etc.

ROLE OF HRM

1. Advisory Role
2. Personnel Policies
3. Personnel Procedures
4. Functional Role
5. Service Role

Role of HR Managers according to Today’s scenario:-

1. Humanitarian Role
2. Counselor
3. Mediator
4. Spokesman
5. Problem Solver
6. Change Agent
7. Management of Manpower Resources

Role of HR Managers according to Futuristic viewpoint:-

-Emprovement)
1. Protection and enhancement of human and non-human resources
- -
-

2. Finding the best way of using people to accomplish organizational goals

-

3. Improve organizational performance

-

4. Integration of techniques of information technology with the human resources

-

5. Utilizing behavioral scientists in the best way for his people

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6. Meeting challenges of increasing organizational effectiveness

-

7. Managing diverse workforce

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IMPORTANCE OF HUMAN RESOURCE MANAGEMENT

An organisation cannot build a good team of working professionals without good Human Resources. The beneficial effects of these
- -
-

functions are discussed here:

-
1. Recruitment and Training Recently
The HR managers come up with plans and strategies for hiring the right kind of people. They design the criteria which is best suited
for a specific job description. When needed, they also provide training to the employees according to the requirements of the
organisation.

-
2. Performance Appraisals

Performance appraisals, when taken on a regular basis, motivate the employees.

-

3. Maintaining Work Atmosphere

 A good working condition is one of the benefits that the employees can expect from an efficient human resource team. A safe, clean
- -

and healthy environment can bring out the best in an employee.

-

4. Managing Disputes

They take timely action and prevent things from going out of hands.
-

5. Developing Public Relations

The HR department plays an active role in preparing the business and marketing plans for the organisation too.
--

SIGNIFICANCE OF HRM can be discussed at four levels which are as follows:

1. Corporate Level

a. Hiring required skill set and retaining them through effective human resource planning, recruitment, selection, placement,
orientation and promotion policies.

b. Development of employees by enhancing necessary skills and right attitude among employees through training, development,
performance appraisals etc.

c. HRM also takes care of optimum utilization of available human resource.

d. HRM also ensures that organization has a competent team and dedicated employees in future.

2. Significance at Professional Level

a. HRM also leads to improved quality of work life; it enables effective team work among employees by providing healthy working
environment. It also contributes to professional growth.

b. By providing opportunities for personal development of an employee enabling healthy relationships among teams and allocating
work properly to employees as well as teams.

3. Significance at Social Level

a. HRM plays important role in the society, it helps labour to live with pride and dignity by providing employment which in turn
gives them social and psychological satisfaction.

b. HRM also maintains balance between open jobs and job seekers.

4. Significance at National Level

HRM plays a very significant role in the development of nation. Efficient and committed human resource leads to effective
exploitation and utilization of nation’s natural, physical and financial resources. Skilled and developed human resource ensures the
development of that country. If people are underdeveloped then that country will be underdeveloped. Effective HRM enhances
economic growth which in turn leads to higher standard of living and maximum employment.

EVOLUTION OF HUMAN RESOURCE MANAGEMENT

Period before industrial revolution – The society was primarily an agriculture economy with limited production. Number of
specialized crafts was limited and was usually carried out within a village or community with apprentices assisting the master
craftsmen. Communication channel were limited.
 Period of industrial revolution (1750 to 1850) – Industrial revolution marked the conversion of economy from agriculture based to
industry based. Modernization means if communication gave way to industrial setup. A department was set up to look into workers
wages, welfare and other related issues. This led to emergence of personnel management with the major task as

↑
- Worker’s wages and salaries
- Worker’s record maintenance
- Worker’s housing facilities and health care
An important event in industrial revolution was growth of Labour Union (1790) – The works working in the industries or factories
were subjected to long working hours and very less wages. With growing unrest, workers across the world started protest and this
led to the establishment of Labour unions. To deal with labour issues at one end and management at the other Personnel
Management department had to be capable of politics and diplomacy, thus the industrial relation department emerged.

Post Industrial revolution – The term Human resource Management saw a major evolution after 1850. Various studies were
released and many experiments were conducted during this period which gave HRM altogether a new meaning and importance.
A brief overview of major theories release during this period is presented below
- Frederick W. Taylor gave principles of scientific management (1857 to 1911) led to the evolution of scientific human resource
management approach which was involved in
- Worker’s training
- Maintaining wage uniformity
- Focus on attaining better productivity.
- Hawthorne studies, conducted by Elton Mayo & Fritz Roethlisberger (1927 to 1940). – Observations and findings of Hawthrone
experiment shifted the focus of Human resource from increasing worker’s productivity to increasing worker’s efficiency through
greater work satisfaction.
- Douglas McGregor Theory X and Theory Y (1960) and Abraham Maslow’s Hierarchy of needs ( 1954) – These studies and
observations led to the transition from the administrative and passive Personnel Management approach to a more dynamic Human
Resource Management approach which considered workers as a valuable resource.
As a result of these principles and studies, Human resource management became increasingly line management function, linked to
core business operations. Some of the major activities of HR department are listed as-
1. Recruitment and selection of skilled workforce.
2. Motivation and employee benefits
3. Training and development of workforce
4. Performance related salaries and appraisals.

CHALLENGES OF HRM IN INDIAN ECONOMY OR CHALLENGES OF MODERN MANAGEMENT:-

1. Globalization: - HR managers have to deal with Growing internationalization, more heterogeneous functions and involvement in
employee’s personal life.

2. Corporate Re-organizations:- It is the role of HRM to deal with the anxiety, uncertainties, insecurities and fears during the
dynamic trends of Reorganization that relates to mergers and acquisitions, joint ventures, take over, internal restructuring of
organizations.

3. New Organizational forms: -HRM faces the challenge to deal with new forms of organizational structure.

4. Changing Demographics of Workforce: - Dual career couples, large chunk of young blood between age old superannuating
employees, working mothers, more educated and aware workers etc.

5. Changed employee expectations: - Traditional allurements like job security, house, and remunerations are the things of olden
times, now employees are demanding empowerment and equality with management.

6. New Industrial Relations Approach: - Unions have understood that strikes and militancy have lost their relevance and unions are
greatly affected by it. How to adopt a proactive industrial relations approach which should enable HR specialist to look into
challenges unfolding in the future and to be prepared to convert them into opportunities.

7. Renewed People Focus: - The challenge of HR manager is to focus on people and make them justifiable and sustainable.

8. Managing the Managers: - The challenge of HRM is how to manage this tribe? How to make them realize that the freedom given
to them is to enable them make quick decisions in the interest of the organization and not to resort to witch-hunting.

9. Weaker Society interests: - It is a challenge of today’s HR managers to see that these weaker sections are neither denied their
rightful jobs nor are discriminated against while in service.

10. Contribution to the success of organizations: - The biggest challenge to an HR manager is to make all employees contribute to the
success of the organization in an ethical and socially responsible way. Because society’s well being to a large extent depends on its
organizations.

HRM VS PERSONNEL MANAGEMENT

Main Differences between Personnel Management and HRM
Professor John Storey brilliantly portrayed these differences in 27 areas of people management in 1992 in his book titled
Developments in the Management of Human Resources. These differences are illustrated in Table

Points of Difference Personnel Management HRM

On the basis of Beliefs and assumptions

Contract Careful delineation of Aim to go beyond contract

written contracts

Rules Importance of devising 'Can-do' outlook; Impatience with 'rule'

clear rules/mutually

On the basis of Strategic aspects

Key relations Labour management Customer

Corporate plan Marginal Central

Speed of decision Slow Fast

On the basis of Line management

Management role Transactional Transformational leadership

Key managers Personnel/ IR specialists General/business/line managers

Communication Indirect Direct

 Standardization High (e.g. 'parity' an Low (e.g. 'parity' not seen as relevant)
issue)

Prized management Negotiation Facilitation

skills

On the basis of Key levers

Selection Separate, marginal task Integrated, key task

Pay Job evaluation (fixed Performance-related

grades)

Conditions Separately negotiated Harmonization

Labour-management Collective bargaining Towards individual contracts

contracts

Job categories and Many Few

grades

Communication Restricted flow Increased flow

Job design Division of labour Teamwork

STRATEGIC HUMAN RESOURCE MANAGEMENT: -

What is Strategy?

“Strategy is a way of doing something. It includes the formulation of goals and set of action plans for accomplishment of that goal.”

What is Strategic Management?

“A Process of formulating, implementing and evaluating business strategies to achieve organizational objectives is called Strategic
Management”

Definition of Strategic Management: -

“Strategic Management is that set of managerial decisions and actions that determine the long-term performance of a corporation. It
includes environmental scanning, strategy formulation, strategy implementation and evaluation and control.”

The study of strategic management therefore emphasizes monitoring and evaluating environmental opportunities and threats in the
light of a corporation’s strengths and weaknesses.

Steps in Strategic Management:

1. Environmental Scanning: Analyze the Opportunities and Threats in External Environment

2. Strategy Formulation: Formulate Strategies to match Strengths and Weaknesses at corporate level, Business Unit Level and
Functional Level.

3. Strategy Implementation: Implement the Strategies

4. Evaluation & Control: Ensure the organizational objectives are met.

IMPORTANCE & BENEFITS OF STRATEGIC MANAGEMENT

• Allows more effective allocation of time and resources

• Creates framework for internal communication

 • Provides basis for the clarification of responsibilities

• Encourages forward thinking

• Encourages favorable attitude towards change.

• Allows identification, prioritization and exploration of opportunities.

• Provides an objective view of management problems.

• Represents framework for improved co-ordination and control

• Minimizes the effects of adverse conditions and changes

• Allows major decisions to better support established objectives

ROLE OF HRM IN STRATEGIC MANAGEMENT

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1. Role in Strategy Formulation: HRM is in a unique position to supply competitive intelligence that may be useful in strategy
formulation. Details regarding advanced incentive plans used by competitors, opinion survey data from employees, elicit
information about customer complaints, information about pending legislation etc. can be provided by HRM.
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2. Role in Strategy Implementation: HRM supplies the company with a competent and willing workforce for executing strategies. It
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&

is important to remember that linking strategy and HRM effectively requires more than selection from a series of practice choices.
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The challenge is to develop a configuration of HR practice choices that help implement the organization’s strategy and enhance its
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competitiveness.
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HUMAN RESOURCE DEVELOPMENT

HRD is a process of organizing and enhancing the physical, mental and emotional capacities of individuals for productive work.

Proactive HRD Strategies for long term planning and growth

In today’s fast changing, challenging and competitive environment HRD has to take a proactive approach that is to seek preventive
care in human relations. Using HRD strategies maximizations of efficiency and productivity could be achieved through qualitative
growth of people with capabilities and potentialities to grow and develop. HRD is always a function of proper utilization of creative
opportunities and available environment through acquisition of knowledge, skills and attitudes necessary for productive efforts.

Long-term growth can also be planned by creating highly inspired groups of employees with high aspirations to diversify around
core competencies and to build new organizational responses for coping with change.

A proactive HRD strategy can implement activities that are geared up and directed at improving personal competence and
productive potentialities of human resources.

Following strategic choices can be considered which would help today’s organizations to survive and grow.

Change Management: Manage change properly and become an effective change agent rather than being a victim of change itself.

Values: Adopt proactive HRD measures, which encourage values of openness, trust, autonomy, proactively and experimentation.

Maximize productivity and efficiency: Through qualitative growth of people with capabilities and potentialities to grow and
develop thrive to maximize productivity and efficiency of the organization.

Activities directed to competence building: HRD activities need to be geared up and directed at improving personal competence
and productive potentialities of manpower resources.

HUMAN CAPITAL
Meaning
 In an organizational context, Human Capital refers to the collective value of the organization's intellectual capital (competencies,
knowledge, and skills). This capital is the organization's constantly renewable source of creativity and innovativeness (and imparts it
the ability to change) but is not reflected in its financial statements. Unlike structural capital, human capital is always owned by the
individuals who have it, and can 'walk out the door' unless it is recorded in a tangible form, or is incorporated in the organization's
procedures and structure.

Definition
The term ‘human capital’ is widely used in HR to describe people at work and their collective knowledge, skills, abilities and
capacity to develop and innovate. Human capital aims to provide quantitative, as well as qualitative, data on a range of measures
(such as labour turnover or employee engagement levels) to help identify which sort of HR or management interventions will drive
business performance.
However, the evaluation of human capital remains difficult for most companies. There are a number of reasons for this:
• The contribution of people is difficult to isolate from other factors such as the economic situation, market forces and customer or
social trends.
• The value of people is often expressed in qualitative rather than quantitative terms that make it difficult to represent in traditional
accountancy models.
• HR data has traditionally been collected for administrative rather than evaluation purposes.
• HR people do not always have the skills or resources to interpret or explain data to evaluate the contribution of people to business
performance.
• Senior leaders or stakeholders do not recognise human capital as a performance measure and therefore do not demand human capital
information.
EMOTIONAL QUOTIENT (EQ)

While it is often misunderstood as intelligence quotient (IQ), Emotional Quotient is different because instead of measuring your
general intelligence, it measures your emotional intelligence. Emotional Quotient is the ability to sense, understand and
effectively apply the power and acumen of emotions to facilitate high levels of collaboration and productivity. In the business
environment, Emotional Quotient is important because it helps you leverage your awareness of emotions for effectiveness in the
workplace.

Emotional quotient (EQ), also called emotional intelligence quotient, is a measurement of a person's ability to monitor his or her
emotions, to cope with pressures and demands, and to control his or her thoughts and actions.

The Five Areas of Emotional Quotient

The TTI Emotional Quotient report focuses on five areas within interpersonal and intrapersonal intelligence. Intrapersonal
intelligence is the ability to understand oneself, while interpersonal intelligence is the ability to understand others.

Intrapersonal Emotional Quotient

• Self-Awareness – The ability to recognize and understand your moods, emotions and drives, as well as their effect on others.

• Self-Regulation – The ability to control or re-direct disruptive impulses and moods and the propensity to suspend judgment and
think before acting.

• Motivation – A passion to work for reasons that go beyond money and status and a propensity to pursue goals with energy and
persistence.

Interpersonal Emotional Quotient

• Social Skills – A proficiency in managing relationships and building networks.

 • Empathy – The ability to understand the emotional makeup of other people.

Applications of Emotional Quotient in Your Business

With TTI Emotional Quotient, you can improve the coaching and development process by giving superior performers the
opportunity to truly understand their emotional intelligence. The TTI Emotional Quotient report will help identify ways they can
take action to accelerate their Emotional Quotient development and leverage their new knowledge to make better decisions on the
job

MENTORING

Who is a Mentor?

A Mentor is a person who gives the guidance and assistance to the Mentees.

Mentees are the persons who are under the guidance of MENTOR.

A mentor is a guide who can help the mentee to find the right direction and who can help them to develop solutions to career issues.
Mentors rely upon having had similar experiences to gain an empathy with the mentee and an understanding of their issues.
Mentoring provides the mentee with an opportunity to think about career options and progress.
A mentor should help the mentee to believe in herself and boost her confidence. A mentor should ask questions and challenge, while
providing guidance and encouragement. Mentoring allows the mentee to explore new ideas in confidence. It is a chance to look
more closely at yourself, your issues, opportunities and what you want in life. Mentoring is about becoming more self aware, taking
responsibility for your life and directing your life in the direction you decide, rather than leaving it to chance.

What is MENTORING?

"Mentoring is to support and encourage people to manage their own learning in order that they may maximize their potential,
develop their skills, improve their performance and become the person they want to be."
For Example:- While making the Projects of students, the teacher who is guiding the students is the “Mentor” and the students who
under the guidance of the teacher are “Mentees”.

EMPLOYEE STOCK OWNERSHIP PLAN (ESOP)

ESOP’s are Employee Stock Option Plans under which employees receive the right to purchase a certain number of shares in the
company at a predetermined price, as a reward for their performance and also as motivation for employees to keep increasing their
performance. Employees typically have to wait for a certain duration known as vesting period before they can exercise the right to
purchase the shares.
The main aim of giving such a plan to its employees is to give shares of the company to its employees at a discounted price to the
market price at the time of exercise. Benefits of ESOP’s
The major benefits of awarding Employee Stock Options are mentioned below:
1. Lock-in Period:
ESOP’s come with a lock-in period known as vesting period and employees can exercise the options only after this period. If the
employee leaves the organisation before completing the specified period – these ESOP’s get lapsed and the employee will not get
any benefit.
2. A ‘Sense of Ownership’ for the employees:
When the employees are given shares of the same company in which they are working, it gives them a sense of feeling that now they
are not employees of this organisation but are the owners. In fact, since employees directly benefit from the increase in the share
price, they focus on overall value creation for the company.
3. ‘Kind’ instead of ‘Cash’
 ESOP’s are a way of awarding the employees in kind instead of cash. In the initial days of ESOP’s in India, small organisations who
were cash strapped used to give ESOP’s to their employees to increase the overall pay package.
Word of Caution: Infosys earlier used to award ESOP’s to almost all its employees but has now started awarding ESOP’s judicially
as awarding too many ESOP’s may dilute the promoters’ & investors’ stake.

Taxation of ESOP’s in India

The manner of computation of Tax of ESOP’s in the hands of the employee has been explained hereunder:-
1. At the time of giving ESOP’s: The benefits arising on ESOP’s are taxed as Perquisites in the hands of the employee and form a
part of the employee’s salary income. The employer is also required to deduct TDS in respect of such perquisite. The perquisite
value is computed as the difference between the fair market value of the share and the Exercise price.
2. At the time of sale of such ESOP’s by the employee: The gains arising on the sale of ESOP’s are considered to be Capital Gains;
Capital Gains Tax is levied on such gains and tax is liable to be paid in the year in which such ESOP’s are sold. The Capital Gain is
computed as the difference between the sale price and the price at which it was awarded by the Employer.
The Capital Gains treatment further depends on the holding period of the ESOP’s i.e. if the shares are held for less than 12 months –
Short Term Capital Gains Tax@ 15% is levied and if the shares are held for more than 12 months- Long Term Capital Gains Tax is
levied (this is currently NIL). Thus, if such ESOP’s are held by the employee for more than 12 months, the gains arising on the sale
of such ESOP’s is effectively exempt from Tax.

FLEXI-TIME

What is Flexi-time?
“Flexi-time is a scheme where an organisation gives its employees the opportunity of a flexible working hours arrangement.”
Under flexi time, there is normally a core period of the day when employees must be at work (eg between 10 am and 4pm), whilst
the rest of the working day is "flexi time", in which staff can choose when they work, subject to achieving total daily, weekly or
monthly hours. An employee must work between the basic core hours and has the flexibility to clock in / out between the other
hours.
An example of a typical flexi time day is below:
• Begin work between 0700 – 1000 (flexi time)
• Must be there between 1000 – 1200 (core time)
• Lunch break between 1200 – 1400 (flexible lunch hour)
• Must be there from 1400 – 1600 (core time)
• Leave between 1600 – 1900 (flexi time)
The hours you work between these times are credited to your flexi time balance.
Most schemes allow you a credit or debit margin, often of about 8 hours.
For example, if you work a 35-hour week, then, over four weeks, you will be obliged to work for 140 hours. If you work more than
the required hours in those four weeks then you will be in credit. If you work fewer hours then you will be in deficit. If you exceed a
stipulated credit level you might lose those extra hours you have worked, but if you go into excess deficit you might lose pay, have
to use up annual leave to make the difference or be disciplined.

Benefits to your Organisation

Introducing flexible working could bring the following benefits to your business.
1. Greater staff morale and job satisfaction. Most employers offering flexi time working report improvements in recruitment,
absenteeism and productivity
2. Reduces stress and fatigue and unfocussed employees
3. Increases employee satisfaction and production
4. Greater staff retention and increased ability to attract new staff. Recruitment costs are thus reduced.
5. Ability to attract a higher level of skills because the business is able to attract and retain a skilled and more diverse workforce.
 6. Measures employee’s attendance – you only pay or time in attendance (delayed arrival caused by traffic congestion, delayed
trains etc. are at employees expense)
Benefits to your employees
1. Increased opportunity to fit other commitments and activities in with work, and make better use of their free time.
2. More in control of their workloads, and manage a better balance between life and work. Allows you to schedule your travel;
time to avoid congestion
3. Allows you bank time to be used for leisure / personal activities
4. Avoid the stress of commuting at peak times if their start and finish times are staggered or if they work from home
5. Personal matters can be sorted without having to take time off
6. helpful for people caring for children or other dependants, but others may find flexible working helpful too
Disadvantages of Flexi time
1. If the scheme is not monitored properly, there is potential for employees to abuse the system. For example if time is recorded
on paper or spreadsheets by staff they can easily fabricate their time.
2. Administration of the system may make demands upon a HR department and create additional workload.

QUALITY CIRCLES

A Quality Circle is a volunteer group composed of workers (or even students) who meet to discuss workplace improvement, and
make presentations to management with their ideas, especially relating to quality of output in order to improve the performance of
the organization, and motivate and enrich the work of employees. Typical topics are improving occupational safety and health,
improving product design, and improvement in manufacturing process.

The ideal size of a quality circle is from eight to ten members.

Quality circles have the advantage of continuity; the circle remains intact from project to project. (For a comparison to Quality
Improvement Teams see Juran's Quality by Design.

Quality circles were first established in Japan in 1962, and Kaoru Ishikawa has been credited with their creation. The movement in
Japan was coordinated by the Japanese Union of Scientists and Engineers (JUSE).

The use of quality circles then spread beyond Japan. Quality circles have been implemented even in educational sectors in India and
QCFI (Quality Circle Forum of India) is promoting such activities.

There are different quality circle tools, namely:

* The Ishikawa diagram - which shows hierarchies of causes contributing to a problem

* The Pareto Chart - which analyses different causes by frequency to illustrate the vital cause
* The PDCA-Deming wheel - Plan, Do, Check, Act, as described by W. Edwards Deming

A typical Quality Circle group will display a good approach to:

* Analysing the context of a problems and its situation
* Define exactly what the problem is and the relationship between its component parts
* Identify and verify that the causes are indeed causes, ensuring that solutions address the real problem
* Define, quantify and measure the impact of a given problem
* Understand the quality objectives
* Create a solution to a given problem

Quality Circle groups generally address issues such as improving safety, improving product design, and improving manufacturing
process. Because Quality Circle groups remain intact from project to project they have the advantage of consistency, though they
retain the option to call in expertise or request training when needed.
Techniques used by a Quality Circle group will usually consist of process capability flow charts, lot sampling, brainstorming, cause
and effect analysis, reverse engineering, value analysis, and pare to analysis.

KAIZEN IS…
…a system of continuous improvement in quality, technology, processes, company culture, productivity, safety and leadership.

What is Kaizen?

Kaizen was created in Japan following World War II. The word Kaizen means "continuous improvement". It comes from the
Japanese words ("kai") which means "change" or "to correct" and ("zen") which means "good".

Kaizen is a system that involves every employee - from upper management to the cleaning crew. Everyone is encouraged to come
up with small improvements & suggestions on a regular basis. This is not a once a month or once a year activity. It is continuous.
Japanese companies, such as Toyota and Canon, a total of 60 to 70 suggestions per employee per year are written down, shared and
implemented.

In most cases these are not ideas for major changes. Kaizen is based on making little changes on a regular basis: always improving
productivity, safety and effectiveness while reducing waste.

In business Kaizen encompasses many of the components of Japanese businesses that have been seen as a part of their success.
Quality circles, automation, suggestion systems, just-in-time delivery, Kanban and 5S are all included within the Kaizen system of
running a business.

Kaizen involves setting standards and then continually improving those standards. To support the higher standards Kaizen also
involves providing the training, materials and supervision that is needed for employees to achieve the higher standards and maintain
their ability to meet those standards on an on-going basis.

TQM (TOTAL QUALITY MANAGEMENT)

TQM describes a management approach to long–term success through customer satisfaction. In a TQM effort, all members of an
organization participate in improving processes, products, services, and the culture in which they work.
The 7c’s of Total Quality Management are as follows:-

① Commitment
⑪ culture
us
⑳ Confine
⑳ Geoperation
⑧ custome
four
① Coupo
SIX-SIGMA

What is SIX-SIGMA?

A comprehensive and flexible system for achieving, sustaining and maximizing business success; uniquely driven by close
understanding of customer needs, disciplined use of facts, data, and statistical analysis, and diligent attention to managing,
improving and reinventing business processes. It is a break through strategy to significantly improve customer satisfaction and
shareholder value by reducing variability in every aspect of business.
  DMAIC: refers to data driven quality strategy for improving processes. This is used to improve an existing business process.
 DMADV: Refers to data driven quality strategy for designing products and processes. This is used to create new
process/product design to get defect free performance.

00 Deim
measure
Analyze
Improve
Control

ACTIONS TO IMPROVE PROCESSES

 Technology up gradation

 Integration of several functions

 Improvement in communication, in information flows

 Alignment of business goals, objectives with business

 Associates

 Improvement in logistics

 Improvement of communication skills of staff members

 Improving the work atmosphere within the organisation

UNIT-II

ACQUISITION OF HUMAN RESOURCES

HUMAN RESOURCE PLANNING (H R P)

“HRP is a Process, by which an organization ensures that it has the right number and kind of people at the right place, at the right
time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives.”

“HRP also includes estimation of how many qualified people are necessary to carry out the assigned activities, how many people
will be available, and what, if anything, must be done to ensure personnel supply equals personnel demand at the appropriate point
in the future.”
 MEANING / PURPOSE OF HRP

• In simple words HRP is understood as the process of forecasting an

organization’s future demand for and supply of the right type of people
in the right numbers.

• It is only after HRP is done, that the company can initiate and plan the
recruitment and selection process.

• HRP is a sub-system in the total organizational planning.

• HRP facilitates the realization of the company’s objectives by providing right type and right number of personnel.

• HRP is important because without a clear-cut manpower planning, estimation of a organization’s human resource need is reduced
to mere guesswork.

NEED & IMPORTANCE OF HRP

1. Forecast future personnel needs:

2. Cope with change

3. Creating highly talented personnel

4. Protection of weaker sections

5. International strategies

6. Foundation of personnel functions

7. Increasing investments in HR
8. Resistance to change & move

HRP SYSTEM

HRP System includes the following elements or sets for planning:-

o Overall Organizational Objectives

o Business Environment
o Forecasting Manpower Needs
o Assessing Manpower Supply
o Matching Manpower Demand-Supply factors

Based on these elements we can draw “HRP System Architecture” as under.

Business Environment

Organization Objectives & Goals

Manpower Forecast Manpower Supply Assessment

Manpower Programming

Manpower Implementation

Control & Manpower

 HRP PROCESS

HRP Process can be depicted in the following diagram:-

1. ORGANIZATIONAL OBJECTIVES & POLICIES: -

The objectives of HR plan must be derived from organizational objectives like specific requirements of numbers and characteristics
of employees etc. Specific policies need to be formulated to address the following decisions:-

• Internal Hiring or External Hiring?

• Training & Development plans

• Union Constraints

• Job enrichment issues

• Rightsizing organization
 • Automation needs

• Continuous availability of adaptive and flexible workforce

2. CURRENT MANPOWER STOCK

Current manpower stock must be continuously maintained by every department in the organisation. Manpower inventory must have
the detailed biodata of each individual. This record not only helps in employee development but also in finding out the surplus/
shortage of manpower.

3. (A).MANPOWER DEMAND FORECASTING: -

It is the process of estimating the future quantity and quality of people required.

Demand forecasting should be based on following factors.

a) Internal Factors: -

• Budget constraints

• Production levels

• New products and services

• Organizational structure

• Employee separation

b) External Factors: -

• Competition environment

• Economic climate

• Laws and regulatory bodies

• Technology changes

• Social Factors

Reasons for Manpower Demand Forecasting: -

• To quantify jobs

• To determine the Staff-mix

• To assess staffing levels and avoid unnecessary costs

• Prevent shortages of people

• Monitor compliances of legal requirements with regards to reservations

3. (B).MANPOWER SUPPLY FORECASTING: -

This process measures the number of people likely to be available from within and outside the organization after making allowance
for absenteeism, internal movements and promotions, wastages, changes in hours and other conditions of work.

Reasons for Manpower Supply Forecasting:

• Clarify Staff-mixes exist in the future

• Assess existing staff levels

• Prevent shortages

• Monitor expected future compliance of legal requirements of job reservations

Supply Analysis covers:

 Existing Human Resources: The existing employees can be categorized as skills inventories (non-managers) and managerial
inventories (managers)

Skill inventory (non-managers) would include the following;

• Personal data

• Skills

• Special Qualifications

• Salary

• Job History

• Company data

• Capabilities

• Special preferences

Management inventories (managers) would include the following

• Work History

• Strengths

• Weaknesses

• Promotion Potential

• Career Goals

• Personal Data

• Number and Types of Subordinates

• Total Budget Managed

• Previous Management Duties

Internal Supply: -

Internal supply techniques help to assess the following

• Inflows and outflows (transfers, promotions, separations, resignations, retirements etc.)

• Turnover rate (No. Of separations p.a. / Average employees p.a. X 100)

• Conditions of work (working hours, overtime, etc.)

• Absenteeism (leaves, absences)

• Productivity level

• Job movements (Job rotations or cross functional utilizations)

External Supply: -

External sources are required for following reasons

• New blood,

• New experiences

• Replenish lost personnel

• Organizational growth

• Diversification

External sources can be colleges and universities, consultants, competitors and unsolicited applications.

4. DETERMINING NET REQUIREMENT

The HR manager needs to ensure the demand and supply of the manpower before deriving at any conclusion.
5. REDEPLOYMENT AND REDUNDANCY
In redeployment the surplus employees in one department can be transferred to another department where deficit of employees is
estimated and in case of redundancy where surplus employees cannot be redeployed, they can be offered voluntary retirement
scheme.

6. EMPLOYMENT PROGRAMME
Here it is required to prepare programmes of recruitment, selection, transfer and promotion to achieve organization goal.

7. TRAINING AND DEVELOPMENT

It is very necessary for the employees to keep them updated in the job they are doing.

8. EVALUATION OF HUMAN RESOURCE PLANNING

After doing all the above steps it is necessary to evaluate the effectiveness of human resource planning.

HR PLAN IMPLEMENTATION: -

A series of action programs are initiated as a part of HR plan implementation as under.

1. Recruitment & Selection: Employees are hired against the job vacancies. Based on the manpower demand and supply forecasts
made, hiring of employees is initiated based on supply forecasts.
2. Training and Development: The training and development program is made to cover the number of trainees, existing staff etc. The
programs also cover the identification of resource personnel for conducting development program, frequency of training and
development programs and budget allocation.
3. Retraining and Redeployment; New skills are to be imparted to existing staff when technology changes or product line
discontinued. Employees need to be redeployed to other departments where they could be gainfully employed.
4. Retention Plan: Retention plans cover actions, which would reduce avoidable separations of employees. Using compensation plans,
performance appraisals, avoiding conflicts, providing green pastures etc, can do this.
5. Downsizing plans: Where there is surplus workforce trimming of labor force will be necessary. For these identifying and managing
redundancies is very essential.
6. Managerial Succession Planning; Methods of managerial succession plans may vary. Most successful programs seem to include
top managements involvement and commitment, high-level review of succession plans, formal performance assessment and
potential assessment and written development plans for individuals.

7. Control & Evaluation of HRP: -

HR Plan must also clarify responsibilities for control and establish reporting procedures, which will enable achievements to be
monitored against the plan. The HR Plan should include budgets, targets and standards. These plans may simply be reports on the
numbers employed, recruited against targets etc.

JOB ANALYSIS

JOB:

“Job is a ‘group of tasks to be performed every day.”

JOB ANALYSIS

“Job Analysis is a systematic exploration of activities within a job. It is a basic technical procedure that is used to define duties and
responsibilities and accountabilities of the job.”

MEANING OF JOB ANALYSIS

 Job Analysis is a process of collecting information about a job. The process of job analysis results into two outcomes:-

• Job Description

• Job Specification

The information collected under job analysis is:

1. Nature of jobs required in a concern.
2. Nature/ size of organizational structure.
3. Type of people required to fit that structure.
4. The relationship of the job with other jobs in the concern.
5. Kind of qualifications and academic background required for jobs.
6. Provision of physical condition to support the activities of the concern.
For example- Separate cabins for managers, special cabins for the supervisors, healthy condition for workers, and adequate store
room for store keeper.

ADVANTAGES OF JOB ANALYSIS

1. Job analysis helps the personnel manager at the time of recruitment and selection of right man on right job.
2. It helps him to understand extent and scope of training required in that field.
3. It helps in evaluating the job in which the worth of the job has to be evaluated.
4. It also helps to chalk out the compensation plans for the employees.
5. It also helps the personnel manager to undertake performance appraisal effectively in a concern.

STEPS OF JOB ANALYSIS

1.Collecting and recording job information

2.Checking the job information for accuracy

3.Writing job description based on information collected to determine the skills, knowledge, abilities and activities required

4.Updating and upgrading this information

BARRIERS OF JOB ANALYSIS

• Support from Top Management

• Single means and source, reliance on single method rather than combination

• No Training or Motivation to Jobholders

• Activities and Data may be Distorted

PROCESS OF JOB ANALYSIS

Step 1: Strategic Choices

Step 2: Collecting Information

Step 3: Processing Information

Step 4: Job Description

Step 5: Job Specification

Step 1: Strategic Choices: -

Timing and frequency of Job Analysis: When do you do Job Analysis?

 • Initial stage, for new organization

• New Job is created

• Changes in Job, Technology and Processes

• Deficiencies and Disparities in Job

• New compensation plan is introduced

• Updating and upgrading is required.

Sources of Job Data: For job analysis number of human and non-human sources is available besides jobholder himself. Following
can be sources of data available for job analysis.

Non-Human Sources to collect data Human Sources to collect data

Existing job descriptions and specifications

Equipment maintenance records

Job Analysis
Equipment design blueprints
Job Incumbents
Architectural blueprints of work area
Supervisors
Films of employee working
Job Experts
Training manuals and materials

Magazines, newspapers, literatures

Step 2: Collecting Information: -

Information collection is done on the basis of following 3 parameters

a) What Type of Data should be collected for Job Analysis:

• Work Activities (Tasks details)

• Interface with other jobs and equipments (Procedures, Behaviors, Movements)

• Machines, Tools, Equipments and Work Aids (List, Materials, Products, Services)

• Job Context (Physical, Social, Organizational, Work schedule)

• Personal Requirement (Skills, Education, Training, Experience)

b) What type of Methods to be used for Data Collection:

• Observation

• Interview

• Questionnaires

• Checklists

• Technical Conference

• Diary Methods

c) Who is going to Collect Data?

• Trained Job Analysts

• Supervisors

• Job Incumbents
 Step 3: Processing Information: -

Once the job information is collected it needs to be processed, so that it would be useful in various personnel functions.

Methods of data collection:

1. Observation: Job Analyst carefully observes the jobholder and records the information in terms of what, how the job is done and
how much time is taken.

2. Interview: In this analyst interviews the jobholders, his supervisors to elicit information.

3. Questionnaires: A standard questionnaire is given to jobholder about his job, which can be filled and given back to supervisors or
job analysts. The questionnaire may contain job title, jobholder’s name, manager’s name, reporting staff, description of job, list of
main duties and responsibilities etc.

4. Checklists: It is more similar to questionnaire but the response sheet contains fewer subjective judgments and tends to be either yes
or no variety.

5. Technical Conference: Here a conference of supervisors is used. The analysts initiate the discussions providing job details.

6. Diary Methods: In this method jobholder is required to note down their activities day by day in their diary. If done faithfully this
technique is accurate and eliminates errors caused by memory lapses etc.

Step 4: JOB DESCRIPTION

“Job Description implies objective listing of the job title, tasks, and responsibilities involved in a job.”

Job description is a word picture in writing of the duties, responsibilities and organizational relationships that constitutes a given job
or position. Job description is a broad statement of purpose, scope, duties and responsibilities of a particular job.

This type of document is descriptive in nature and it constitutes all those facts which are related to a job such as:
1. Title/ Designation of job and location in the concern.
2. The nature of duties and operations to be performed in that job.
3. The nature of authority- responsibility relationships.
4. Necessary qualifications that is required for job.
5. Relationship of that job with other jobs in a concern.
6. The provision of physical and working condition or the work environment required in performance of that job.

ADVANTAGES OF JOB DESCRIPTION

• It helps the supervisors in assigning work to the subordinates so that he can guide and monitor their performances.
• It helps in recruitment and selection procedures.
• It assists in manpower planning.
• It is also helpful in performance appraisal.
• It is helpful in job evaluation in order to decide about rate of remuneration for a specific job.
• It also helps in chalking out training and development programmes.

Format of Job Description

• Job Title

• Region/Location

• Department

• Reporting to (Operational and Managerial)

• Objective

• Principal duties and responsibilities

 Step 5: JOB SPECIFICATIONS

“Job Specification involves listing of employee qualifications, skills and abilities required to meet the job description. These
specifications are needed to do job satisfactorily.”

In other words it is a statement of minimum and acceptable human qualities necessary to perform job properly. Job specifications
seeks to indicate what kind of persons may be expected to most closely approximate the role requirements and thus it is basically
concerned with matters of selection, screening and placement and is intended to serve as a guide in hiring.

The contents are:

1. Job title and designation
2. Educational qualifications for that title
3. Physical and other related attributes
4. Physique and mental health
5. Special attributes and abilities
6. Maturity and dependability
7. Relationship of that job with other jobs in a concern.

ADVANTAGES OF JOB SPECIFICATION

1. It is helpful in preliminary screening in the selection procedure.
2. It helps in giving due justification to each job.
3. It also helps in designing training and development programmes.
4. It helps the supervisors for counseling and monitoring performance of employees.
5. It helps in job evaluation.
6. It helps the management to take decisions regarding promotion, transfers and giving extra benefits to the employees.

Contents of Job Specifications

1.Physical Characteristics

2.Psychological characteristics

3.Personal characteristics

4.Responsibilities

5.Demographic features

RECRUITMENT & SELECTION

RECRUITMENT

“Recruitment is the Process of finding and attracting capable applicants for employment. The Process begins when new recruits are
sought and ends when their applications are submitted. The result is a pool of application from which new employees are selected.”

PURPOSE AND IMPORTANCE OF RECRUITMENT: -

1.Determine the present and future requirements in conjunction with personnel planning and job analysis activities

2.Increase the pool of job candidates at minimum cost

3.Help increase success rate of selection process by reducing number of under-qualified or over-qualified applications.

4.Reduce the probability that job applicants once selected would leave shortly

5.Meet legal and social obligations

6.Identify and prepare potential job applicants

7.Evaluate effectiveness of various recruitment techniques and sources for job applicants.

SOURCES OF RECRUITMENT

INTERNAL RECRUITMENT

Advantages Disadvantages

1.Less Costly 1.Old concept of doing things

2.Candidates already oriented towards 2.It abets raiding

organization 3.Candidates current work may be
3.Organizations have better knowledge affected
about internal candidates 4.Politics play greater roles
4.Employee morale and motivation is 5.Morale problem for those not
enhanced promoted.

EXTERNAL RECRUITMENT

Advantages Disadvantages

1.Better morale and motivation

1.Benefits of new skills and talents associated with internal recruiting is
denied
2.Benefits of new experiences
2.It is costly method
3.Compliance with reservation policy
becomes easy 3.Chances of creeping in false positive
and false negative errors
4.Scope for resentment, jealousies, and
heartburn are avoided. 4.Adjustment of new employees takes
longer time.

RECRUITMENT PROCESS
SELECTION: -

“Selection is the process of differentiating between applicants in order to identify and hire those with a greater likelihood of success
in a job.”

Selection is the process of picking up individuals (out of the pool of job applicants) with requisite
requisite qualifications and competence to
fill jobs in the organization. A formal definition of Selection is as under

DIFFERENCE BETWEEN RECRUITMENT AND SELECTION:

Recruitment Selection

1.Selection
Selection is concerned with picking up
the right candidates from a pool of
1.Recruitment
Recruitment refers to the process of applicants.
identifying and encouraging prospective
2.Selection on the other hand is negative
employees to apply for jobs.
in its application in as much as it seeks to
2.Recruitment
Recruitment is said to be positive in its
eliminate as many unqualified applicants
approach as it seeks to attract as many
as possible in order to identify the right
candidates as possible.
candidates.

PROCESS / STEPS IN SELECTION

BARRIERS TO EFFECTIVE SELECTION: -

1.Perception: We all perceive the world differently. Our limited perceptual ability is obviously a stumbling block to the objective
and rational selection of people.

2.Fairness: Barriers of fairness includes discrimination against religion, region, race or gender etc.

3.Validity: A test that has been validated can differentiate between the employees who can perform well and those who will not.
However it does not predict the job success accurately.

4.Reliability: A reliable test may fail to predict job performance with precision.

5.Pressure: Pressure brought on selectors by politicians, bureaucrats, relatives, friends and peers to select particular candidate are
also barriers to selection.

Example: - The following diagram shows the number of applicants in accordance with the ‘action steps’ to be taken while the
Recruitment & Selection process.
INDUCTION & ORIENATION

“It is a Planned Introduction of employees to their jobs, their co-workers and the organization per se.”

Orientation conveys 4 types of information:

1. Daily Work Routine

2. Organization Profile

3. Importance of Jobs to the organization

4. Detailed Orientation Presentations

Purpose of Orientation Program

1. To make new employees feel at home in new environment

2. To remove their anxiety about new workplace

3. To remove their inadequacies about new peers

4. To remove worries about their job performance

5. To provide them job information, environment

Problems of Orientations

1. Busy or Untrained supervisor

2. Too much information

3. Overloaded with paperwork

4. Given menial tasks and discourage interests

5. Demanding tasks where failure chances are high

6. Employee thrown into action soon

7. Wrong perceptions of employees

What is the difference between induction and orientation?

Induction referred to formal training programs that an employee had to complete before they could start work

Orientation was the informal information giving that made the recruit aware of the comfort issues - where the facilities are, what
time lunch is and so forth.

How long should the induction process take?

It starts when the job ad is written, continues through the selection process and is not complete until the new team member is
comfortable as a full contributor to the organization's goals.

The first hour on day one is a critical component - signing on, issuing keys and passwords, explaining no go zones, emergency
procedures, meeting the people that you will interact with all have to be done immediately. Until they are done the newcomer is on
the payroll, but is not employed.

After that it is a matter of just in time training - expanding the content as new duties are undertaken.

We only employ new people one at a time - how can we induct them?

There are some issues, which cannot wait - they vary according to your situation. Perhaps a buddy system on the job may be the best
way to deal with these. Other subjects may be incorporated with refresher training for current staff, or handled as participant in an
outside program. Perhaps some can wait until there are groups of people who have started in the last few months.
This may take some creative thinking, but the answer is quite simple - until the new people are integrated then they are less useful.
The math is often amazingly simple - not taking the time to train consumes more time than the training would.

PLACEMENT

Placement is allocation of people to jobs. It is assignment or reassignment of an employee to a new or different job.

UNIT-III

TRAINING & DEVELOPMENT

“Training & Development is any attempt to improve current or future employee performance by increasing an employee’s ability to
perform through learning, usually by changing the employee’s attitude or increasing his or her skills and knowledge.”

MEANING OF TRAINING & DEVELOPMENT: -

The need for Training and Development is determined by the employee’s performance deficiency, computed as follows.

Training & Development Need = Standard Performance – Actual Performance

We can make a distinction among Training, Development and Education.

Difference between Training and Development

Training Development

Training is skills focused Development is creating learning abilities

Training is presumed to have a formal

Development is not education dependent
education

Training needs depend upon lack or Development depends on personal drive

deficiency in skills and ambition

Trainings are generally need based Development is voluntary

Training is a narrower concept focused Development is a broader concept

on job related skills focused on personality development

Development includes training wherever

Training may not include development
necessary

Training is aimed at improving job Development aims at overall personal

related efficiency and performance effectiveness including job efficiencies

IMPORTANCE OF TRAINING & DEVELOPMENT

• Helps remove performance deficiencies in employees

• Greater stability, flexibility and capacity for growth in an organization

• Accidents, scraps and damages to machinery can be avoided

• Serves as effective source of recruitment

• It is an investment in HR with a promise of better returns in future

• Reduces dissatisfaction, absenteeism, complaints and turnover of employees

NEED OF TRAINING

Individual level

• Diagnosis of present problems and future challenges

• Improve individual performance or fix up performance deficiency

• Improve skills or knowledge or any other problem

• To anticipate future skill-needs and prepare employee to handle more challenging tasks

• To prepare for possible job transfers

Group level

• To face any change in organization strategy at group levels

• When new products and services are launched

• To avoid scraps and accident rates

TYPES OF TRAINING

1. Orientation Training-Given to new & inexperienced employees.

2. Job Training- Given to Existing employees.

3. Safety Training- Given to new & existing employees.

4. Promotional Training- Given to existing employees.

5. Refresher Training- Given to existing employees.

6. Remedial Training- Given to Existing employees.

METHODS OF TRAINING

1. On the Job Trainings: These methods are generally applied on the workplace while employees are actually working.
Following are the on-the-job methods.

Advantages of On-the-Job Training:

It is directly in the context of job

It is often informal

It is most effective because it is learning by experience

It is least expensive

Trainees are highly motivated

It is free from artificial classroom situations

Disadvantages of On-the-Job Training:

Trainer may not be experienced enough to train

It is not systematically organized

Poorly conducted programs may create safety hazards

On the Job Training Methods

1.Job Rotation: In this method, usually employees are put on different jobs turn by turn where they learn all sorts of jobs of
various departments.
 2.Job Coaching: An experienced employee can give a verbal presentation to explain the nitty-gritty’s of the job.

3.Job Instruction: It may consist instructions or directions to perform a particular task or a function. It may be in the form
of orders or steps to perform a task.

4.Apprenticeships: Generally fresh graduates are put under the experienced employee to learn the functions of job.

5.Internships and Assistantships: An intern or assistants are recruited to perform a specific time-bound jobs or projects
during their education. It may consist a part of their educational courses.

2. OFF THE JOB TRAININGS

These are used away from work places while employees are not working like classroom trainings, seminars etc. Following
are the off-the-job methods;

Advantages of Off-the-Job Training:

Trainers are usually experienced enough to train

It is systematically organized

Efficiently created programs may add lot of value

Disadvantages of Off-the-Job Training:

It is not directly in the context of job

It is often formal

It is not based on experience

It is least expensive

Trainees may not be highly motivated

It is more artificial in nature

OFF THE JOB TRAINING METHODS

1.Classroom Lectures: It is a verbal lecture presentation by an instructor to a large audience.

2.Audio-Visual: It can be done using Films, Televisions, Video, and Presentations etc.

3.Simulation: creating a real life situation for decision-making and understanding the actual job conditions give it.
Following are some of the simulation methods of trainings

i. Case Studies

ii. Role Plays

iii. Sensitivity Trainings

4.Programmed Instructions: Provided in the form of blocks either in book or a teaching machine using questions and
Feedbacks without the intervention of trainer.

5.Computer Aided Instructions: It is extension of PI method, by using computers.

6.Laboratory Training

Barriers to Effective Training:

1.Lack of Management commitment

2.Inadequate Training budget

3.Education degrees lack skills

4.Large scale poaching of trained staff

5.Non-coordination from workers due to downsizing trends

6.Employers
Employers and B Schools operating distantly

7.Unions
Unions influence

How To Make Training Effective?

1.Management
Management Commitment

2.Training
Training & Business Strategies Integration

3.Comprehensive
Comprehensive and Systematic Approach

4.Continuous
Continuous and Ongoing approach
app

5.Promoting
Promoting Learning as Fundamental Value

6.Creations
Creations of effective training evaluation system

DESIGN OF TRANING PROGRAMME

Without a coach, designing your own training plan for the entire season can be a little overwhelming. To simplify the process I've
broken it down into 10 easy steps. Follow these steps to design a plan for yourself with the accuracy of a seasoned coach.
Step 1- Set goals.
goals
Step 2- Evaluate event demands
Step 3- Establish schedule framework
Step 4- Periodize your training plan
Step 5- Schedule recovery weeks
Step 6- Schedule performance testing
Step 7- Assign general and race-specific
race specific preparation periods
Step 8- Schedule daily workouts
Step 9- Follow the plan
Step 10- Keep track of yourself

EVALUATION OF TRAINING PROGRAMMES

KIRKPATRICK'S 4 LEVELS:-
LEVELS

The most widely used and popular model for the evaluation of training programs is known as "The Four Levels of Learning
Evaluation."
The idea behind the model is for an organization to have meaningful evaluation of learning in the organization. The degree of
difficulty increases as you move through the levels. However, the knowledge learned regarding the effectiveness of the training
program more than compensates for this.
The four levels of the model are:
Level 1: Reaction
Level 2: Learning
Level 3: Behavior
Level 4: Results

Level 1: Reaction
Kirkpatrick refers to Level 1 as a measure of customer satisfaction. Most of the forms that people fill out at the end of a class or
workshop are instruments for measuring Level 1.
Level 2: Learning
Kirkpatrick defines learning as the extent to which participants change attitudes, increase knowledge, and/or increase skill as a result
of attending a program.
Level 3: Behavior
Level three can be defined as the extent to which a change in behavior has occurred because someone attended a training program.
Level 4: Results
This involves measuring the final results that occurred because a person attended a training session. This can include increased
production, improved work quality, reduced turnover, etc.
Level four can be difficult because you must determine what final results occurred because of attendance and participation in a
training program.
EVALUATE THE OUTCOMES OF A TRAINING PROGRAMME
Evaluating the outcome of a training programme is usually done at the end of a major project cycle, such as after one, two, or three
years. These evaluations are often performed by a team that can spend the time to collect data, make judgments, and propose
recommendations for future action.
There are three ways to conduct training evaluations:
• Internal evaluations
Internal evaluations are performed with staff members of the project and the agency that administers the project. They have the
advantages of using existing staff who are more readily available, and the costs are less since outside consultants do not need to be
employed.
• External evaluations
These evaluations are performed with consultants or other experts brought in from outside the agency. External evaluations are more
objective and impartial; outside consultants do not have a personal interest in the findings and outcomes of the study.
• A combination of internal and external evaluation
A third type of evaluation combines elements of the first two, using a team composed of project staff members and outside
consultants. This type of evaluation has many advantages. For one, local staff, working closely with outside consultants, can
facilitate collection of the data from THPs and community members. And local staffs who work on an evaluation team with outside
consultants have the opportunity to develop better evaluation skills.
One of the greatest advantages of a combined external and internal evaluation is that it lends itself to a participatory type of
evaluation that includes all groups involved.

CAREER PLANNING

Career planning is the process or activities offered by the organization to individuals to identify strengths, weaknesses, specific goals
and jobs they would like to occupy.
Career as a concept means a lifelong sequences of professional, eeducational
ducational and developmental experiences that projects an
individual through the world of work. It is a sequence of positions occupied by a person during his life.

OBJECTIVES OF CAREER PLANNING

1.Build
Build commitment in the individual

2.Develop
Develop long-range
long perspective

3.Reduce
Reduce personal turnover expenses

4.Lessen
Lessen employee obsolescence

5.Ensure
Ensure organizational effectiveness

6.Allow
Allow individual to achieve personal and work related goals.

IMPORTANCE OF CAREER PLANNING

Career planning is important because it helps the individu

individual
al to explore, choose and strive to derive satisfaction with his own career
objectives.

CAREER DEVELOPMENT

Career Development emphasizes on the following:-

following:

• How individuals manage their careers within and between organizations

and,
• How organizations structure the career progress of their members, it can
also be tied into succession planning within most of the organizations

UNIT-IV

COMPENSATION & MAINTENANCE:

JOB EVALUATION

Job evaluation is a process of analyzing and assessing the various jobs sy

systematically
stematically to ascertain their relative worth in an
organization.

Jobs are evaluated on the basis of content, placed in order of importance. This establishes Job Hierarchies, which is a purpose
purpo of
fixation of satisfactory wage differentials among various jobs.

Jobs are ranked (not jobholders)

Job Evaluation involves determination of relative worth of each job for the purpose of establishing wage and salary differentials.
Relative worth is determined mainly on the basis of job description and job specification
specification only. Job Evaluation helps to determine
wages and salary grades for all jobs. Employees need to be compensated depending on the grades of jobs which they occupy.

Clearly remuneration must be based on the relative worth of each job.

SCOPE OF JOB EVALUATION

EVA
 The job evaluation is done for the purpose of wage and salary differentials, demand for and supply of labour, ability to pay,
industrial parity, collective bargaining etc

PROCESS OF JOB EVALUATION:

1.Defining objectives of job evaluation

i. Identify jobs to be evaluated (Benchmark jobs or all jobs)

ii. Who should evaluate job?

iii. What training do the evaluators need?

iv. How much time involved?

v. What are the criteria for evaluation?

vi. Methods of evaluation to be used

2.Wage Survey

3.Employee Classification

4.Establishing wage and salary differentials.

METHODS OF JOB EVALUATION

A. Analytical Methods

• Point Ranking Methods: Different factors are selected for different jobs with accompanying differences in degrees and points.

• Factor Comparison Method: The important factors are selected which can be assumed to be common to all jobs. Each of these
factors are then ranked with other jobs. The worth of the job is then taken by adding together all the point values.

B. Non-Analytical Methods

• Ranking Method: Jobs are ranked on the basis of its title or contents. Job is not broken down into factors etc.

• Job Grading Method: It is based on the job as a whole and the differentiation is made on the basis of job classes and grades. In
this method it is important to form a grade description to cover discernible differences in skills, responsibilities and other
characteristics.

DRAWBACKS IN JOB EVALUATION:

• Encourages employees on how to advance in position when there may be limited opportunities for enhancement as a result of
downsizing.

• It promotes internal focus instead of customer orientation

• Not suitable for forward looking organizations, which has trimmed multiple job titles into two or three broad jobs.

COMPONENTS OF EMPLOYEE REMUNERATION

What is Salary?

"Salary" is the remuneration received by or accruing to an individual, periodically, for service rendered as a result of an express or
implied contract.

An employee is getting paid in lieu of the work done by him/her for the organization, he is employed in.

Employees total compensation consists of four-components.

Although the relative proportion of each component in the total compensation varies from firm-to-firm. But the structure of
Compensation is almost the same, which is as follows:-
 1. Basic pay

2. Dearness allowance

3. House rental allowance

4. Medical allowance

5. City compensatory allowance

6. Conveyance allowances

7. Incentives

8. Fringe benefits

I. Basic Pay

It is the fixed & primary part of the pay-package.

For Blue-Collared employees, basic wage may be based upon the work done (i.e. piece wage system)

For White-Collared employees, basic wage is generally time bound (i.e. time wage system)

Factors which determine the basic wage/salary :-

1. Job-Evaluation
2. Demand for & supply of Labor
3. Prevailing wage-rate
4. Statutory requirements (minimum wage-rate)
5. Employer’s ability to pay

II. Allowances

These allowances ensure the retention and prolonged years of service of am employee in the same organization, as it provides job &
salary satisfaction.

1. Dearness allowance- This allowance is given to deal with the pressure of inflation in the economy. It protects the real income (what
we get in-hand) against inflation.

2. House rental allowance- Those employers who do not provide living accommodation to its employees, they provide HRA to its
employees. It is calculated as a percentage of basic pay.

3. City compensatory allowance- This kind of allowance is generally paid to employees in Metropolitan Cities or other big cities where
Cost of Living is comparatively higher than other cities.

4. Conveyance allowances- Some employers pay Travelling Allowance to their employees. It is usually fixed sum, which is paid to
cover some part of travelling charges.

5. Incentives- Incentive Compensation is the Performance-Linked remuneration. It is paid with a view to inspire, encourage & motivate
employees to work hard & do better. Incentives can be both Individual & Group- Based.

6. Fringe Benefits - These are the additional benefits that an employee gets in addition to the Basic Pay. This is usually paid to
Executive-Class Employees.

PERFORMANCE APPRAISALS

“It is formal, structured system of measuring, evaluating job related behaviors and outcomes to discover reasons of performance and
how to perform effectively in future so that employee, organization and society all benefits.”
Performance Appraisals is the assessment of individual’s performance in a systematic way. The performance is measured against
such factors as job knowledge, quality and quantity of output, initiative, leadership abilities, supervision, dependability, co-
operation, judgment, versatility and health. Assessment should be confined to past as well as potential performance also.

Performance Appraisals and Job Analysis Relationship

Job Analysis  Performance Standards  Performance Appraisals

Translate job
Describe the work and Describe the job relevant
requirements into levels
personnel requirement of strengths and weaknesses
of acceptable or
a particular job. of each individual.
unacceptable performance

POTENTIAL APPRAISAL

Potential Appraisal is the identification of the hidden talents and skills of a person. The person might or might not be aware of them.
Potential appraisal is a future – oriented appraisal whose main objective is to identify and evaluate the potential of the employees to
assume higher positions and responsibilities in the organizational hierarchy. Many organisations consider and use potential appraisal
as a part of the performance appraisal processes.

OBJECTIVES OF PERFORMANCE APPRAISALS

4 Goals of Performance Appraisals

General Goals Specific Goals

Individual needs

Performance feedback
Developmental Use
Transfers and Placements

Strengths and Development needs

Salary

Promotion

Retention / Termination
Administrative Decisions / Uses
Recognition

Lay offs

Poor Performers identification

HR Planning

Training Needs

Organizational Goal achievements

Organizational Maintenance
Goal Identification

HR Systems Evaluation

Reinforcement of organizational needs

Validation Research

Documentation For HR Decisions

Legal Requirements

Performance Appraisal Process

1.Objectives definition of appraisal

2.Job expectations establishment

3.Design an appraisal program

4.Appraise the performance

5.Performance Interviews

6.Use data for appropriate purposes

7.Identify opportunities variables

8.Using social processes, physical processes, human and computer assistance

Difference between Traditional and Modern (Systems) approach to Appraisals

Categories Traditional Appraisals Modern, Systems Appraisals

Guiding Individualistic, Control oriented, Systematic, Developmental, Problem

Values Documentary solving

Leadership
Directional, Evaluative Facilitative, Coaching
Styles

Frequency Occasional Frequent

Formalities High Low

Rewards Individualistic Grouped, Organizational

TECHNIQUES / METHODS OF PERFORMANCE APPRAISALS

Numerous methods have been devised to measure the quantity and quality of performance appraisals. Each of the methods is
effective for some purposes for some organizations only. None should be dismissed or accepted as appropriate except as they relate
to the particular needs of the organization or an employee.

Broadly all methods of appraisals can be divided into two different categories.

• Past Oriented Methods

• Future Oriented Methods

TRADITIONAL METHODS OF PERFORMANCE APPRAISAL:-

1.Rating Scales: Rating scales consists of several numerical scales representing job related performance criterions such as
dependability, initiative, output, attendance, attitude etc. Each scales ranges from excellent to poor. The total numerical scores are
computed and final conclusions are derived.

2.Checklist: Under this method, checklist of statements of traits of employee in the form of Yes or No based questions is prepared.
Here the rater only does the reporting or checking and HR department does the actual evaluation.

3.Forced Choice Method: The series of statements arranged in the blocks of two or more are given and the rater indicates which
statement is true or false. The rater is forced to make a choice. HR department does actual assessment.

4.Forced Distribution Method: Here employees are clustered around a high point on a rating scale. Rater is compelled to distribute
the employees on all points on the scale. It is assumed that the performance is conformed to normal distribution.

5.Critical Incidents Method: The approach is focused on certain critical behaviors of employee that makes all the difference in the
performance. Supervisors as and when they occur record such incidents.

6.Behaviorally Anchored Rating Scales: statements of effective and ineffective behaviors determine the points. They are said to be
behaviorally anchored. The rater is supposed to say, which behavior describes the employee performance.
7.Field Review Method: This is an appraisal done by someone outside employees’ own department usually from corporate or HR
department.

8.Performance Tests & Observations: This is based on the test of knowledge or skills. The tests may be written or an actual
presentation of skills. Tests must be reliable and validated to be useful.

9.Confidential Records: Mostly used by government departments, however its application in industry is not ruled out. Here the
report is given in the form of Annual Confidentiality Report (ACR) and may record ratings with respect to following items;
attendance, self expression, team work, leadership, initiative, technical ability, reasoning ability, originality and resourcefulness etc.
The system is highly secretive and confidential.

10. Essay Method: In this method the rater writes down the employee description in detail within a number of broad categories
like, overall impression of performance, promoteability of employee, existing capabilities and qualifications of performing jobs,
strengths and weaknesses and training needs of the employee.

11. Cost Accounting Method: Here performance is evaluated from the monetary returns yields to his or her organization. Cost to
keep employee, and benefit the organization derives is ascertained. Hence it is more dependent upon cost and benefit analysis.

12. Comparative Evaluation Method (Ranking & Paired Comparisons): These are collection of different methods that
compare performance with that of other co-workers. The usual techniques used may be ranking methods and paired comparison
method.

• Ranking Methods: Superior ranks his worker based on merit, from best to worst. However how best and why best are not
elaborated in this method. It is easy to administer and explanation.

• Paired Comparison Methods: In this method each employee is rated with another employee in the form of pairs. The
number of comparisons may be calculated with the help of a formula as under.

N x (N-1) / 2

MODERN METHODS OF PERFORMANCE APPRAISAL:-

1.Management by Objectives (MBO): It means management by objectives and the performance is rated against the achievement of
objectives stated by the management. MBO process goes as under.

• Establish goals and desired outcomes for each subordinate

• Setting performance standards

• Comparison of actual goals with goals attained by the employee

• Establish new goals and new strategies for goals not achieved in previous year.

2.Psychological Appraisals: These appraisals are more directed to assess employee’s potential for future performance rather than
the past one. It is done in the form of in-depth interviews, psychological tests, and discussion with supervisors and review of other
evaluations. It is more focused on employees emotional, intellectual, and motivational and other personal characteristics affecting
his performance. This approach is slow and costly and may be useful for bright young members who may have considerable
potential. However quality of these appraisals largely depends upon the skills of psychologists who perform the evaluation.

3.Assessment Centers: An assessment center is a central location where managers may come together to have their participation in
job related exercises evaluated by trained observers. It is more focused on observation of behaviors across a series of select exercises
or work samples. Assessees are requested to participate in in-basket exercises, work groups, computer simulations, role playing and
other similar activities which require same attributes for successful performance in actual job. The characteristics assessed in
assessment center can be assertiveness, persuasive ability, communicating ability, planning and organizational ability, self
confidence, resistance to stress, energy level, decision making, sensitivity to feelings, administrative ability, creativity and mental
alertness etc.

4.360-Degree Feedback: It is a technique which is systematic collection of performance data on an individual group, derived from a
number of stakeholders like immediate supervisors, team members, customers, peers and self. In fact anyone who has useful
information on how an employee does a job may be one of the appraisers. This technique is highly useful in terms of broader
 perspective, greater self-development
self development and multi
multi-source
source feedback is useful. 360-degree
360 degree appraisals are useful to measure inter-
int
personal skills, customer satisfaction and team building skills
skills.

Essentials of a Good Performance Appraisal System:

1. Standardized Performance Appraisal System

2. Uniformity of appraisals

3. Defined performance standards

4. Trained Raters

5. Use of relevant rating tools or methods

6. Should be based on job analysis

7. Use of objectively verifiable data

8. Avoid rating problems like halo effect, central tendency, leniency, severity etc.

9. Consistent Documentations maintained

10. No room for discrimination based on cast, creed, ra

race, religion, region etc.

THE 360 DEGREE APPRAISAL TECHNIQUES

360O system involves evaluation of a manager by everyone above, alongside and below him. Structured questionnaires are used to
collect responses about a manger from his bosses, peers and subordinates. Each manger is assessed by a minimum of fifteen
colleagues, at least two of them being these bosses, four of them peers, and six of them subordinates. The responses are presented
collectively to assess in the form of charts and graphs. Comments and interpretations are presented later. Counseling sessions
session are
arranged
ged to solve the weaknesses identified in the 360 degree assessment. Several corporations like General Electric, Reliance
Industries, Crompton Greaves, Godrej Soaps, Wipro, Infosys, Thermax, etc. are making use of this technique.
 The 360-degree appraisal has four integral components:
1. Self-appraisal.
2. Superior’s Appraisal.
3. Subordinate’s Appraisal.
4. Peer Appraisal.
1. Self-appraisal. It gives the employee absolute freedom to objectively look at his/her strengths and areas of development along with
an opportunity to assess the performance. Self-appraisal also provides the opportunity to the employee to express his/her career
moves for the future.
2. Superior’s Appraisal. Superior’s appraisal puts career aspirations of the employee in proper perspective. On the one hand, superior
must communicate to the employee in clear way what the organization plans for the employee. On the other hand, if the employee
has entirely unrealistic aspirations then also it is superior’s responsibility to share with the employee the realistic picture given
his/her strengths, development areas, experience, qualifications and the organisation’s ability to provide growth.
3. Subordinate’s Appraisal. The purpose of subordinate’s appraisal is to get first hand assessment of how the subordinates perceive
their superior to be in terms of style of functioning, etc.
4. Peer Appraisal. They must include peers both form within the department as well as from the other departments which are directly
connected with the working of employee’s department. Peer appraisal must strive to get the feedback on employee’s working style
and may include ability to appreciate other people’s view.

Benefits of 360 degree feedback

1. A more balanced view of individual performance
2. More likely to cause behaviour change
3. Reveals unique information not captured by other methods
4. Often the only reliable feedback source for top-level managers
5. Increases understanding performance expectations
6. Powerful lead in to self-directed learning and development
7. Brings a competency framework to life
8. Provides organisation-wide insights

The Drawbacks of 360 Degree Feedback

1. Fear of receiving or giving feedback
2. Questionnaire too rigid and not relevant to job
3. No way to overcome the development gaps exposed
4. A focus on pay or 'appraisal'

OVERVIEW OF EMPLOYEE’S WELFARE, HEALTH & SAFETY and SOCIAL SECURITY

[International Labour Organization] ILO at its Asian Regional Conference, defined labour welfare as a term which is understood to
include such services, facilities and amenities as may be established in or in the vicinity of undertakings to enable the persons
employed in them to perform their work in healthy, congenial surroundings and to provide them with amenities conducive to good
health and high morale.

WELFARE PROVISIONS ARE PROVIDED BY THESE AGENCIES:-

1. Central Government
2. State Government
3. Employees
4. Trade Unions
5. Charitable/Social Service Organisations

EMPLOYEE HEALTH & SAFETY

According to joint ILO/WHO Committee, an organizational health, industrial health is:-

 1. Promotion & maintenance of physical, mental & social well-being of workers in all occupations.
2. Preventions among workers of ill-health caused by working conditions. (respiratory diseases due to smoke at work-place)
3. Protection of workers in their employment from risk-resulting from factors adverse to health.
4. Planning & maintenance of the worker in an occupational environment adapted to his physical & psychological equipment.

MEASURES FOR ENSURING INDUSTRIAL HEALTH

1. Safety Committee
2. Safety training
3. Material handling equipments
4. Guarding of machines
5. Maintenance of plant
6. Regular inspection
7. Equipment re-design
8. Proper clothing
9. Clean floors
10. Safety campaign

EMPLOYEE SOCIAL SECURITY

According to ILO, Social Security is the protection which society provides for members through a series of public measures, against
the economic & social distress that otherwise would be caused by the stoppage or substantial reduction of earning resulting from
sickness, maternity, employment, injury, unemployment, invalidity, old age & death, the provision of subsidies for families with
children.

The following are the ACTS made to ensure SOCIAL SECURITY:-

1. Worker’s Compensation Act, 1923

2. The Employee’s State Insurance Act, 1948
3. The Employee’s Provident Funds & Miscellaneous Provisions Act, 1952
i) Provident Fund Scheme
ii) Employee’s Pension Scheme, 1995
iii) Employee’s Deposit Linked Insurance Scheme, 1976
4. The Maternity Benefit Act, 1961
5. The Payment Of Gratuity Act, 1972

References:
1) Chhabra, T. N; Human Resource Management; Dhanpati Rai and Co. Pvt. Ltd New Delhi 2003.

2) Dr. Gupta, C. B.; Human Resource Management, Sultan Chand and Sons, New Delhi, 2003
3) Rao, V S P, Human Resource Management, Text and Cases, Excel Books,2004.
4) http://www.mentorset.org.uk
5) http://en.wikipedia.org