“You can get capital and erect building

but it takes people to build a business”.

–Thomas J Watson, Founder, IBM

HUMAN RESOURCE
MANAGEMENT

MB 206
TOPIC : 1
 COURSE COVERAGE
• Human Resource Management :
- Scope and coverage,
- Structure and functions of HR department,
- Role of HR manager.
 What is HRM?
Human Resource Management is a series of integrated
decisions that form the employment relationship; their
quality contributes to the ability of the organizations and the
employees to achieve their objective.
__________George T.Milkovich & Johri W.Boudreau
Human Resource Management is concerned with the people
dimension in management. Since every organisation is made
up of people, acquiring their services, developing their
skills, motivating them to higher levels of performance and
ensuring that they continue to maintain their commitment to
the organisation are essential to achieving organisational
objectives. __________David A Decenzo & Stephen P Robbins
Human Resource Management is the planning,
organising, directing and controlling of the
procurement, development, compensation, integration,
maintenance and separation of human resources to the
end that individual, organisational, and social
objectives are accomplished.
__________Edwin B Flippo
 Evolution of HRM in India
• Labour Officer : - Recruiting - Record keeping - Labour laws
-Statutory Requirements - Working Conditions - Safety - Welfare
# Tata Steel Works, Jamshedpur (Mr Naoroji)
# Royal Commission on Labour, 1931 – recommended Labour Oficer
for factories
# Bombay Mill Owners’ Association, 1935
# Indian Jute Mills Association, 1936

• Labour Welfare Officer : Statutory Requirements under Factories Act,

1948 and Mines Act, 1952 – 500/more workers
• Personnel Officers/managers (Legal Experts) [ Rise of TUs: Increase
in Legal process] – Time keeping - Security - Wage - Administration
• Early 60s : Management Schools : Specialists
- Legal, Organisational, Personnel Related
-Support to Operations as subsidiary & not as direct contributing
team member
• Open Organisational Culture, Environment of Trust &
Dependence, Freedom of Decision Making, Motivated Employees
HUMAN RESOURCE MANAGEMENT : Pro-active
function
 Structure of HR Deptt
• Place of HR Deptt in overall set up
- Small Organisation
Manager

Production Mgr Sales Mgr Office Mgr Accountant

Personnel Assistant
- Large scale Organisation
CMD

Director- Prodn Director- Fin Director- HR Director - Mkt

 HR Function in a Corporate

CMD
Dir ( HR
)

GM ( CSR GM ( Admin & Welfare GM ( PR GM ( HR GM ( Vigilance

GM (HRD)
) ) ) ) )

VARIOUS DESIGNATIONS IN HR
DIRECTOR – HR GM – HR / ED – HR DGM – HR

SENIOR MANAGER – HR CHIEF MANAGER – HR

MANAGER – HR DEPUTY MANAGER – HR

PERSONNEL OFFICER SENIOR PERSONNEL OFFICER

 Functions
OBJECTIVES : of HR functions include:
• Effective utilisation of Human resources
• Desirable working relationship
• Maximum individual development

Traditionally the functions are:

• Attracting and retaining talents through Selection & Staffing
• Creating and running systems and processes for managing people
through:
training and development
compensation and rewards management
performance management
industrial relations management
Human Resource Information Systems management
 Functions
Currently, the functions are:

• Helping an organisation achieve its business objectives through

designing, developing and implementing people and performance
management strategies through:

1.Human Resource Planning : Job Analysis, Forecasting &

Inventory, Recruitment & Selection, Placement & Induction
2. Human Resource Development : Performance Appraisal, Training,
Motivation, Management Development, Career Planning,
Organisational Development
3. Compensation Management : Job Evaluation, Wage & Salary
Administration, Incentives, Social Security
4. Employee Relations : Relations with Trade Unions,
Communication, Negotiation, Grievance handling, Counselling
5. HR Evaluation : Audit, Research & Analysis, HR Accounting
Recruitment &
Selection
“All we can do is bet on the
people whom we pick. So my
whole job is picking the
right people.”

Jack Welch
CEO, General Electric
 Business External
Vision & Plans of Internal
Employment
Promote
Mission the Exchange
Statements organizati Transfer
Job Advertisement
on Campus
MANPOWER Position-w
Analysis
PLANNING ise Agencies/Cons
(Job Job ultants
requirements) Descriptio References
Recruitm
n& Online
ent
Proce Job Others
(How
dure Sourc
Specificati -Forced
many,
es
on Applicants
where, Polic -Died in
what, y Preparation Harness
when)
of -Sons of the
Pool
soilof
Notification
Receivin
potentially
-Retd
RECRUITMENT g
qualified
employees’Job
PROCESS Applicants
children
 RECRUITMENT POLICIES
INTERNAL FACTORS
• ORGANISATIONAL POLICIES
• AGREEMENT BETWEEN MANAGEMENT & UNION
EXTERNAL FACTORS
• PROVISIONS UNDER THE CONSTITUTION OF INDIA
- Article 16 under Fundamental Rights (Right to Equality)
- Article 16 under Fundamental Rights (Rights against Exploitation)
- Article 46 : SC, ST and other weaker sections
- Industrial Disputes Act, 1947 : Retrenched employee
- Employment Exchanges (Compulsory Notification of Vacancies) Act, 1957
- Apprentices Act, 1961
- Contract Labour (regulation & Abolition) Act, 1970

• COURT ORDERS: INJUNCTIONS, AWARDS, BANS

• ECONOMIC FACTORS – MARKET VOLATILITY, ENVIRONMENTAL

UNCERTAINTY, RECESSION ETC.

• TECHNOLOGICAL CHANGES – CONTINUOUSLY CHANGING PRODUCTION LINE

PRACTICES NECESSITATING CHANGES IN SKILL PROFILE REQUIRED OF
EMPLOYEES, FAST CHANGES IN MARKET DEMANDS, CHALLENGES IN THE
CONTEMPORARY BUSINESS ETC.
 PROCEDURE
• Job Analysis - Process of obtaining and
analyzing information about the job
• Job Description - An organized, factual
statement of duties & responsibilities of a
specific job
• Job Specification - Statement of
knowledge, skills and abilities necessary to
perform a job properly
 SOURCES OF RECRUITMENT

Recruitment can broadly be divided into two categories :-

1. Internal recruitment
2. External Recruitment, from outside markets

Internal Recruitment
• Vacancies are made known to own employees and they are
asked to apply for the posts if they fulfill the criteria of
qualifications, age, experience and personal profile (to fit with
the attributes required of the job holder).
• Internal applicants undergo test/ interview in a similar manner
as if they were external candidates.
• Preference over external candidates and some times they are
treated exactly at par with external candidates till the
appointment is made.
• Bilateral agreement with the management
External Recruitment

Notifying the vacancies through

• Employment exchange as required by Compulsory
Notification of Vacancies Act., 1959, if there are already
more than 25 employees in the organization.
• Private employment agencies, including head hunters
• Professional associations such as Institute of Engineers,
All India Medical Association, All India Management
Association, Institute of Chartered Accountants etc.
• Campus recruitment
• Leading newspapers (Advertising)
• References : Political leaders, union executives
• On-line
• Others : Forced applications, Died in harness, sons of the
soil, etc.
ADVANTAGES /DISADVANTAGES
INTERNAL EXTERNAL
• FAMILIARITY • NEW BLOOD
• BETTER USE OF • NEW
TALENT INSIGHT/PERSPECTIVE
• ECONOMIC • LESS CHANCE OF
• EASILY AVAILABLE GROUPISM
• MOTIVATOR DISADVANTAGES
DISADVANTAGES • ADJUSTMENT PROBLEM
• INBREEDING • LONGER ORIENTATION
TIME
• LACK OF VARIETY
• ATTITUDE OF EARLIER
• HIGH TRAINING ORGN
COST
• MAY SELECT WRONG MAN
 ADVANTAGES /DISADVANTAGES
EMPLOYMENT EXCHANGE
• Economic (no cost) • Limited choice
• Negligible loss of time • Low caliber
• Good source • High Training cost
ADVERTISING
ADVERTISING • High cost
• Right candidates apply • Time consuming
• Wide choice • Administration of large no. of
candidates at each stage
CAMPUS CAMPUS
• Economic (no cost) • Generally no work history
• Wide choice among desired • High aspirants
quality of students • Adaptation to orgn. culture is
long
 ADVANTAGES /DISADVANTAGES
PLACEMENT AGENCIES PLACEMENT AGENCIES
• Accuracy with JD & JS • Limited choice
• Less time consuming • May be poor fit to JD & JS
• Professional approach • Old inventory
• Confidential • Costly

REFERENCES (POLITICAL LEADERS, UNION REFERENCES (POLITICAL LEADERS, UNION

LEADERS, etc.) LEADERS, etc.)
• Economic • Limited choice
• Pre-disposed to accept work environment • High training cost
• Loyal to organisation • Embarrassment if rejected

ON-LINE ON-LINE
• Wider reach • Response not limited to right catchment area
• Low cost
• Time saving
• Wider choice
• Quality data collection OTHERS
• May be unemployable
OTHERS • Adjustment difficulties with old employees
• Economic • Limited choice
• Known as individuls
• Knowledge of the company
 Selection Process
RECRUITMENT :
POOL METHODS OF
OF SELECTION
POTENTIALLY WRITTEN/
QUALIFIED JOB SCREENI TRADE TEST
APPLICANTS SELECTIO NG
SELECTIO GROUP
N APPLICA
N DISCUSSION
PROCEDU NTS:
FIXING
PROCESS CRITERIA: INTERVIE
RE BASIS –
NOTIFICA W
• 1/2/3 TIER VERIFICATION:
TION HEALTH,
SELECTION
• RESERVATION REFEREE,
• ELIMINATION POLICE,
CRITERIA VIGILANCE
HIRING DECISION
• ENCLOSED
ISSUE OF
DOCUMENTS
APPOINTMENT
• EVALUATION
 Testing for Employee Selection
• Uses of Tests
– Reliability (repeatability of test results)
– Validity (measures what it purports to measure)
• Types of Tests : Written or Psychometric
– Intelligence
– Mechanical comprehension
– Personality and interests
– Ability/achievement (current capabilities/knowledge)
– Aptitude (performance potential)
– Management assessment center
 Psychometric Tests: examples

PERSONALITY TESTS
• 16PF (Personality Factors)
• MBTI (Myers-Briggs Type Indicator)
• FIRO – B (Fundamental Interpersonal
Relationship Orientation Behaviour)
 GROUP DISCUSSION
• Topic discussed among a group for 15-20
minutes
• Types:
1. Normal
2. Case Study
3. Role Play
4. Stress (Abstract topic)
5. Judges: Communication, Comprehension, Logic,
Leadership, etc.
 Interviewing: Purpose
• Interviewer gets to know the candidate
• Candidate gets to know about the job being offered
• Candidate gets to know the organisation in which the work is done

TYPES:
• Preliminary Interview : preliminary screening to determine whether a
detailed interview will be worthwhile.
• Extensive Interview : In-depth Interview May be structured/ unstructured.
• Stress Interview – Deliberate attempts to create pressure to observe how an
applicant performs under stress.

PROCESS: 3 Step

• Step One Define the Job

• Step Two Assess the Candidate
• Step Three Document & Decide
W-A-S-P Interview
ADVANTAGES/DISADVANTAGES
• Potential for Collecting Information –
• Potential for Giving Information
• Human Aspect-

Disadvantages of Interviewing
• Too many complexities are tested in too little time
• Artificial situation – result may reveal that candidate
is good in interviewing but may not be good at work
• The interviewee is always on his guard and does not
expose the weaknesses – may choose the wrong man
• Time consuming procedure
 Potential Biases in Interviews
• Halo Effect – attach very high value to one particular characteristic
which dominates the appraisal of his entire personality
• Leniency – in ratings by a panel one rater can show consistent
leniency by giving high scores and the other may give low scores.
Leniency indicates lack of confidence and interest in rating
• Projection – when interviewer expects his own qualities, skills, values
in an applicant and resembles candidates similar to him in terms of
age, appearance, manners, opinions and background
• Stereotyping – when interviewers have already formed some mental
association between a particular trait, culture and personality, i.e,
holds a stereotype of what represents a good applicant
• Central Tendency – interviewers tend to rate a candidate in the
medium scale, say in a 5 point scale, tendency to rate at 3.
Potential Biases in Interviews (cont’d)
• Negative information is given unduly high
weight
• The interviewer may make a decision
concerning the applicant’s suitability within the
first four or five minutes of the interview
• The interviewer may forget much of the
interview’s content within minutes after its
conclusion
 VERIFICATION
• HEALTH/ MEDICAL
- Check physical fitness
- protect against unwarranted claims for
compensation
- proper job distribution
• REFEREE
• POLICE
 Letter of Initial Offer
Date
<Name of the selected candidate>
<Address>

Dear Mr. / Ms. .............,

Welcome to (Organization Name)!

It gives us great pleasure to offer the role of _____________, for which you
interviewed with us.

This job, as explained to you, is in the Management Grade ______ of our company.
The compensation and other benefits that you would be entitled to are stated in
the enclosure to this letter. We request you to go through the same and return
the enclosed duplicate copy of this letter in acceptance of the same.

Accordingly, we will arrange to issue to you a detailed letter of appointment on the

date of your joining us, which we agreed between us will be any day on or
before ________.
The role, in which you join us, is a very important one which will entail
dealing with important and sensitive information, records and such
other matters of the company. You will, therefore, be required to sign a
“Code of Conduct and Secrecy Agreement” of our company at the time
of your joining the company.

We look forward to you joining our team. We are sure that you will have
a bright career with our company.

We take this opportunity to welcome you and your family into the folds
of our company.

Kind Regards

<Name of the Business Leader>

<Designation>
<Company>
Training & Development
 Concept of Training & Development
TRAINING is a learning process that involves the
acquisition of knowledge, sharpening of skills,
concepts, rules, or changing of attitudes and
behaviours to enhance the performance of
employees.
Training seeks a relatively permanent change in
an individual that will improve his/ her ability to
perform on the job. It involves changing of Skills,
Attitude and Knowledge
DEVELOPMENT helps the individual handle future
responsibilities, with less emphasis on present job duties.

•It is more future oriented and more concerned with

education than training.
•Management Development activities attempt to instill
sound reasoning processes to enhance one’s ability to
understand and interpret knowledge.
•It focuses on the personal growth & on Analytical,
Conceptual and Human skills.

Learning is a relatively permanent change in behavior

that results from direct or indirect experience.
Difference Between Training & Development
Training Development
• Operatives • Executives
• Develops special skills • Develops total personality
• One-time process • Continuous process
• Initiative comes from • Initiative comes from
management self
• Result of external • Result of internal
motivation motivation
• Preparation to meet • Preparation to meet future
present need of individual need of individual
• Reactive process • Pro-active process

http://www.scribd.com/doc/32808023/training-and-development
 What is Training need?
Discrepancy/ gap between what an organisation
expects to happen and what actually occurs

What is Needs Assessment?

Process by which an organisation’s training needs are
identified and articulated. It identifies performance
requirements and the gap between what performance is
required and what presently exists.
 Purpose
• Objective analysis of organisation’s training requirements
• Foundation for effective HRD effort
• Identifies :
Where & what kind of programme/interventions are needed
Who needs to be included
Whether there are any roadblocks to their effectiveness

Type of Needs
• Performance Deficiency
• Democratic
• Pro-active - Diagnostic - Analytic
• Compliance
 Methodology
Training Needs Identification

Organisational Level Individual Level

Organisational Analysis
Task Analysis Man Analysis
 Organisational Analysis
• Process used to better understand the characteristics
of the organisation to determine where training &
T&D efforts are needed and conditions within which
they will be conducted
Task Analysis/ Operations Analysis
• Systematic collection of data about a specific job or group of
jobs to determine what an employee should be taught to
achieve optimal performance
Man Analysis
• Determines training needs of individual employees
• Focus is on how well each employee is performing his key
tasks
 Training Methods - Types
• On the Job Training
✔ Job Instruction Training
✔ Job Rotation
✔ Coaching &
✔ Mentoring
• Off the Job Training/Class room Training
✔ Lecture
✔ Conference
✔ Audio-Visual
✔ Experiential Techniques : Case Study, Business Games, In-Basket
Exercise, Vestibule Training, Role Play
✔ Sensitivity Training
• Self-Paced Training
✔ Computer-based Training : Multimedia CD Rom; Intranet /Internet
 Non Training Methods
• Job Enrichment : Vertical job loading; employees at lower levels
assigned jobs previously done by employees of one level up
•Job Enlargement : Horizontal job loading
•Job Rotation

Group Level Interventions

•Team building refers to transformation of groups into
Autonomous Work Teams horizontally
•Motivation, Participation in development and implementation of
more efficient operation methods with least supervisory and
control activities.
•Ouality Circle, Think Tank Teams (T Team, Japan), Zero Defect,
America, Shop Improvement Group, India, Etc.
 Evaluation: Definition
• The systematic collection of descriptive and
judgemental information necessary to make
effective training decisions related to the
selection, adoption, value and modification
of various instructional activities (Goldstein,
1986)
 Reasons for Evaluating Training
❑Companies are investing millions in training
programs to help gain a competitive advantage,
they expect the outcomes or benefits related to
training to be measurable.
❑To identify the program’s strengths and
weaknesses.
❑To assess whether content, organization, and
administration of the program contribute to
learning and the use of training content on the job.
❑To identify which trainees benefited most or least
from the program.
 Reasons for Evaluating Training
▣ To determine the financial benefits and
costs of the programs.
▣ To compare the costs and benefits of
training versus non-training investments.
▣ To compare the costs and benefits of
different training programs to choose the
best program.
▣ To gather data to assist in marketing training
programs.
 Training evaluation involves:

▣ Formative evaluation – evaluation

conducted to improve the training process.

▣ Summative evaluation – evaluation

conducted to determine the extent to which
trainees have changed as a result of
participating in the training program.
 4 Level Training Outcomes by Donald
KirkpatrickMeasuring ROI of Training.ppt
L1 – Reaction :
•Administered immediately after the training
•Data compiled into reports
L2 – Knowledge / Learning :
•Measures Change in Learning
•Pre and Post
•L2 can be
Measure change noticed by Manager
Measure change noticed by Self
Measure change through a neutral assessment
4 Level Training Outcomes by Donald Kirkpatrick
L3 – Behavior
•Measures change in actions or new behavior
•Participants follow an action plan & report it
•Post Training Workshops
•Success Case Studies

L4 – Results
•Measures business results
•Difficult to measure because of dynamic external
variables that impact results too
•L4 can be implemented if Training Department is
involved in ‘Consulting’ along with training