View
242
Download
1
Category
Preview:
Citation preview
8/6/2019 Hrm Study Materials
1/28
2. Human Resource management (HRM)
2.1 Introduction to HRM
HRM is a broad concept; Personnel management and human resource development
are a part of HRM.
HRM is management function that helps managers recruit, select, train anddevelops members for an organization. HRM involves all management decisions
and practices that directly affect or influence the people or human resources who
work for the organization.
Human Capital or managing talent: the term human capital describes the economic
value of employees knowledge, skills, power and capabilities.
The Idea that organizations compete through people highlights the fact that
success increasingly depends on an organizations ability to manage talent, or
Human capital.
Human Capital Management refers to the task of measuring the cost and effect
relationship of various HR programs and policies on the bottom line of the
organization. It seeks to obtain additional productivity.
Industrial Relation is concerned with systems, rules and procedure used by
unions and employers to determine the reward for effort and other conditions of
employment, to protect the interest of the employed and their employers, and to
regulate the ways in which employers treat their employees.
It covers the following areas
1. Collective bargaining2. Role of management, unions and government3. Machinery for resolution of industrial dispute4. Individual grievance and disciplinary policy and practice5. Labour legislation6. Industrial relations training
Personnel management is a responsibility of all those who manage people as
well as being a description of the work of those who are employed as specialists. It is
that part of management which is concerned with people at work and with their
relationships within an enterprise. It applies not only to industry and commerce but
to all fields of employment.
2.2 The functions of HRM can be broadly classified into two categories, viz.
1. Managerial Functions and2. Operative Functions
1. Managerial Functions involve
Planning: it is a pre-determined course of action. Planning is determination of
personal programs and changes in advance that will contribute to the
organizational goals. In other words, it involves planning of human resources,
8/6/2019 Hrm Study Materials
2/28
requirements, recruitment, selection, training etc. It also involves forecasting of
personnel needs, changing values, attitudes and behavior of employees and their
impact on organization.
Organizing: An organization is a means to an end. It is essential to carry out the
determined course of action. According to J. C Massie, an organization is a
structure and a process by which co-operative group of human beings allocated its
task among its members, identifies relationships and integrates its activities
towards common objective.
Directing: It is the basic function of personnel management which includes
motivating, commanding, leading and activating people. Direction is an important
managerial function in building sound industrial and human relationships besides
securing employees contribution.
Controlling: It is the function ofchecking, verifying and comparing of the actual
with the plans, Identification of deviations if any and correcting of identified
deviations.
2. Operative functions: Operative Functions of Personnel management are
related to specific activities of personnel management, viz., employment,
development, compensation and relations, which interact with managerial
functions.
1. Employment: It is concerned with securing and employingthe people possessingrequired kind and level of human resources necessary to achieve the organizational
objectives. It covers the functions such as the Job analysis, Human resource
planning, recruitment, selection, placement, induction and orientation.
a. Job analysis: it is the process ofstudying and collecting the information related tooperations and responsibilities of a specific job, which includes
- Collection of data, information, facts and ideas relating to various aspects of jobsincluding men, machines and materials.
- Preparation of job description, job specification, job requirements and employeespecification which will help in identifying the nature, levels and quantum of
human resources.
- Providing the guides, plans and basis for job design and for all operative functionsof HRM.
b. Human resource planning: it is a process for determination and assuring thatthe organization will have an adequate number of qualified persons, available at
proper times, performing jobs which would meet the needs of the organization and
which would provide satisfaction for the individuals involved. It involves
- Estimation of present and future requirements and supply of human resourcesbasing on objectives and long range plans of the organization.
8/6/2019 Hrm Study Materials
3/28
- Calculation of net human resources requirements based on present inventory ofhuman resources.
- Taking steps to mould, change, and develop the strength of existing employees in theorganization so as to meet the future human resource requirements.
- Preparation of action programmes to get the rest of human resources from outsidethe organization and to develop the human resources of existing employees.
c. Recruitment: It is the process of searching for prospective employees andstimulating them to apply for jobs in an organization.
d. Selection: It is the process of ascertaining the qualifications, experience, skill,knowledge etc. of an applicant with a view to appraising his/her suitability to a job
appraising.
e. Placement: It is the process of assigning the selected candidate with the mostsuitable job in terms of job requirements. It is matching of employee specifications
with job requirements. This function includes:
a) Counseling the functional managers regarding placement.b) Conducting follow-up study, appraising employee performance in order to
determine employee adjustment with the job.
c) Correcting misplacements if any.f. Induction and Orientation: they are the techniques by which a new employee is
rehabilitated in the changed surrounding and introduced to the practices, policies,
purposes and people of the organization. It involves,
a)Acquaint the employee with the company philosophy, objectives, policies,career planning and development, opportunities, product, market share, social
and community standing, company history, culture etc.
b) Introduce the employee to the people with whom he has to work such as peers,supervisors and subordinates.
c) Mould the employee attitude by orienting him to the new working and socialenvironment.
g. Human Resource Development: it is the process of improving, moulding andchanging the skills, knowledge, creative ability, aptitude, attitude, values,
commitment etc., based on present and future job and organizational requirements.
This function includes:
i. Performance appraisal: it is the systematic evaluation of individualswith respect to their performance on the job and their potential for
development. It includes,
- Developing policies, procedures and techniques.- Helping functional managers- Reviewing of reports and consolidation of reports.- Evaluating the effectiveness of various programmes.
8/6/2019 Hrm Study Materials
4/28
ii. Training: It is the process of imparting the employees the technical andoperating skills and knowledge.
1. Internal Mobility: It includes vertical and horizontal movement of an employeewithin an organization. It includes internal and external mobility.
2. Transfer: It is the process of placing employees in the same level of jobs where theycan be utilized more effectively in consistence with their potentialities and needs of
the employees and the organization.
3. Demotion: it deals with downward reassignment to an employee in theorganization. Demotion moves an individual into a lower-level job that can provide
developmental opportunities. Although such a move is ordinarily considered
unfavorable, some individuals actually may request it in order to return to their
technical roots. It is not uncommon for organizations to appoint temporary leaders
with the provision that they will eventually step down to resume their former
position.
iii. Organizational Development: It is a planned process designed to improveorganizational effectiveness and health through modifications in individual and
group behavior, culture and systems of the organization using knowledge and
technology of applied behavioral science.
Compensation: It is the process of providing adequate, equitable and fair
remuneration to the employees. It includes job evaluation, wage and salary
administration, incentives, bonus, fringe benefits, social security measures etc.
Job evaluation: it is the process of determining relative worth of jobs:
a. Select suitable job evaluation techniqueb. Classify jobs into various categories.c. Determining relative value of jobs in various categories.
Wage and salary administration: this is the process of developing and operating
a suitable wage and salary programme. It covers:
a) Conducting and wage and salary surveyb) Determining wage and salary rates based on various factorsc) Administering wage and salary programmesd) Evaluating its effectiveness
Incentives: It is the process of formulating, administering and reviewing the
schemes of financial incentives in addition to regular payment of wages andsalary. It includes:
a. Formulating incentive payment schemes.b. Helping functional managers on the operation.c. Review them periodically to evaluate effectiveness.
Bonus: A bonus is an incentive payment that is given to an employee beyond
ones normal base wage.
8/6/2019 Hrm Study Materials
5/28
Spot Bonus: An Unplanned bonus given to Employee effort unrelated to an
established performance measure.
It includes payment of statutory bonus according to the Payment of Bonus Act,
1965 and its latest amendments.
Fringe Benefits: These are the various benefits at the fringe of the wage.
Management provides these benefits to motivate the employees and to meet
their lifes contingencies. These benefits include:
a) Disablement benefitsb) Housing facilitiesc) Educational facilities to employees and childrend) Canteen facilitiese) Recreational facilitiesf) Conveyance facilitiesg) Credit facilitiesh) Legal clinici) Medical, maternity and welfare facilities
j) Company storesSocial Security measures: managements provide social security to their
employees in addition to the fringe benefits. These measures include:
a) Workmens compensation to those workers (or their dependents) whoinvolve in accidents.
b) Maternity benefits to women employees.c) Disablement benefits/allowance.d) Sickness benefits and medical benefits.e) Dependent benefits.f) Retirement benefits like provident fund, pension, gratuity etc.
Human relations: It is the process of interaction among human beings. Human
relations is an area of management in integrating people into work situation in a
way that motivates them to work together productively, co-operatively and with
economic, psychological and social satisfaction. It includes:
a) Understanding and applying the models of perception, personality,learning, intra and inter personal relations, intra and inter group
relations.b) Motivating the employeesc) Boosting employee moraled) Developing communication skillse) Developing the leadership skillsf) Redressing employee grievances properly and in time by means of a well
formulated grievance procedure.
8/6/2019 Hrm Study Materials
6/28
g) Handling disciplinary cases by means of an established disciplinaryprocedure.
h) Counseling the employees in solving their personal, family and workproblems and releasing their stress, strain and tensions.
i) Improving quality of work life of employees through participation andother means.
Effectiveness of Human Resources Management:
Effectiveness of various Personnel programmes and practices can be measured
or evaluated by means of organizational health and human resource accounting.
Organizational Health: Organizational health may be studied through the
result of employees contribution to the organization and the employee job
satisfaction. Low rate of absenteeism and labour turnover and high rate of
employee commitment indicate employee satisfaction about the job and the
organization.
Human Resource Accounting: It is a measurement of the cost and value of
human resource to the organization. Human resource management is said to be
effective if the value and contribution of human resources to the organization is
more than the cost of human resource.
Human Resource Audit: Human resource audit refers to an examination and
evaluation of policies, procedures and practices to determine the effectiveness of
HRM. Personnel audit measures the effectiveness of personnel programmes and
practices, and determines what should or should not be done in future.
Human Resource Research: it is the process of evaluating the effectiveness of
human resources policies and practices and developing more appropriate ones. It
includes:
a) Conducting morale, attitude, job satisfaction and behavioral surveys.b) Collecting of data and information regarding wages, cost-benefit analysis
of training, benefits, productivity, absenteeism, employee turnover,
strikes, accidents, operations, working hours, shifts etc.
c) Tabulating, computing and analyzing of the data and informationd) Report writing and submission to the line manager.e) Finding out the defects and short comings in the existing policies,
practices etc.f) Developing more appropriate policies, procedures, programmes of
personnel.
g) Mission, Objectives, Strategy and Tactics (MOST) and HRMMission: The basic purpose of the organization as well as its scope of operation.
Mission of Merck Company To provide society with superior products and
services by developing innovations and solutions that improve the quality of life and
8/6/2019 Hrm Study Materials
7/28
satisfy customer needs, and to provide employees with meaningful work and
advancement opportunities, and investors with a superior rate of return.
Mission statement helps a corporation to link its activities to the needs of society
and legitimize its existence.
Objectives: Objectives are the open ended attributes denoting a future state or
outcome that a corporation strives for.
Strategy: it is fairly broad statement of intent which shows the types of action
required to achieve the objectives.
Tactics: tactics are action plans through which strategies are implemented.
Standard hour Plan: An incentive plan that sets rates based on the completion of
a job in a predetermined standard time.
Relocation services: Services provided to an employee who is transferred to a
new location, which might include help in moving, selling a house, orienting to a
new culture, and/or learning a new language.
Outplacement services: services provided by organizations to help terminated
employees find a new job.
Corporate Social Responsibility
The responsibility of the firm to act in the best interests of the people and
communities affected by its activities.
Companies are discovering that being socially responsible helps the bottom line.
Moreover, workers applying for jobs are saying corporate responsibility is now more
important to their job selection. One of HRs leadership roles is to spearhead the
development and implementation of corporate citizenship throughout the
organization.
Knowledge worker
The workers whose responsibility extends beyond the physical execution of work to
include planning, decision making, and problem solving.
HRIS human Resource Information System
A computerized system that provides current and accurate data for purposes of
control and decision making. HRIS is a potent weapon for lowering administrative
costs, increasing productivity, speeding up response times, and improving decision
making and customer service.
The most obvious impact has been operational- that is, automating routineactivities, alleviating administrative burdens, reducing costs, and improving
productivity internal to HR function itself.
Reactive change: Change that occurs after external forces have already affected
performance.
Proactive change: change initiated to take advantage of targeted opportunities,
particularly in fast changing industries in which followers are not successful.
8/6/2019 Hrm Study Materials
8/28
Total Quality management;
It is a set of principles and practices whose core ideas include understanding
the customer needs, doing things right the first time and striving for continuous
improvement.
Six Sigma: a process used to translate customer needs into a set of optimal tasks
that are performed in concert with one another. Six sigma is a statistical method of
translating a customers needs into separate tasks and defining the best way to
perform each task in concert with the others.
Reengineering:
Fundamental Rethinking and Radical Redesign of Business processes to achieve
dramatic improvements in cost, quality, service and speed. Reengineering often
requires that managers start over from scratch in rethinking how work should be
done, how technology and people should interact, and how entire organizations
should be structured.
Downsizing: planned elimination of jobs. But downsizing is no longer being
regarded as a short term fix when times are tough. Its now become a tool
continually used by companies to adjust to changes in technology, globalization, and
the firms business direction.
Outsourcing: Contracting outside the organization to have work done that could
be done by internal employees.
Off-shoring: the business practice of sending jobs to other countries. Off-shoring,
also referred to as global sourcing, is the controversial practice of moving jobs
overseas. Nonetheless, almost half of 500 senior finance and HR leaders surveyed
said their firms are either off shoring or are considering off shoring in the next three
years, according to a study by Hewitt Associates.
Employee leasing: the process of dismissing employees who are then hired by a
leasing company (which handles all HR-related activities) and contracting with that
company to lease back the employee.
Professional Employer Organizations (PEO) typically a larger company
takes over the management of a smaller companys HR tasks and becomes a co-
employer to its employees. The PEO performs all the HR duties of an employer
hiring, payroll, and performance appraisal. Managing Diversity: managing diversity
means being acutely aware of characteristics common to employees, while alsomanaging these employees as individuals. It means not just tolerating or
accommodating all sorts of differences but supporting, nurturing, and utilizing
these differences to the organizations advantage.
Strategic Vision
A statement about where the company is going and what it can become in the
future; clarifies the long term direction of the company and its strategic intent.
8/6/2019 Hrm Study Materials
9/28
Core values
The strong and enduring beliefs and principles that the company uses as a
foundation for its decisions.
Strategic Planning
Procedures for making decisions about the organizations long term goals and
strategies.
Human resource planning
The process of anticipating and providing for the movement of people into, within,
and out of an organization.
Strategic Human resources Management (SHRM)
The pattern of Human Resources deployments and activities that enable an
organization to achieve its strategic goals.
Environmental scanning: it is the systematic monitoring of the major external
forces influencing the organization. Major factors are:
a) Economic factorsb) Industry and competitive trendsc) Technological trendsd) Government and legislative issuese) Social concernsf) Demographic and labour market trendsCultural Audits:
Audits of the culture and quality of work life in an organization. In an organization,
employee oriented cultures are critical to success, they often conduct cultural audits
to examine the attitudes and beliefs of the workforce as well as the activities they
engage in. This analysis focuses on whether the critical values are embraced and
demonstrated by the employees throughout the organization.
Cultural audits essentially involve discussions among top level managers of how the
organizations culture reveals itself to employees and how it can be influenced or
improved.
Retrenchment: it is the permanent termination of an employee due to economic
reason. It should not be on the grounds of illness, retirement, winding up of
business etc. The employer has to give three months notice before retrenching the
worker and get prior approval from the government.Layoff: a layoff is a temporary removal of an employee due to reasons beyond the
control of the employer ex: global competition, reduction in product demand, change
in technology that reduce the need of workers, and mergers and acquisitions are the
primary factors behind all layoffs. According to Industrial disputes Act 1947, the
employee gets only 50% of normally eligible total basic wages plus dearness
allowance during the period of lay off.
8/6/2019 Hrm Study Materials
10/28
Flexible Work Schedule
Job Sharing
The arrangement whereby two part-time employees perform a job that otherwise
would be held by one full-time employee.
Job sharers may work three days a week, creating an overlap day for extended face-
to-face conferencing.
Telecommuting
The use of personal computers, networks, and other communications technology
such as fax machines to do work in the home that is traditionally done in the
workplace.
Advantages of Telecommuting
a) Increased flexibility for employeesb)Ability to attract workers who might not otherwise be availablec) Less burden on working parentsd) Less time and money wasted on physical commutinge) Increased productivityf) Reduced absenteeism
Temping:
The notion of a clearly defined employer-employee relationship becomes difficult to
uphold in triangular relationships like in the case of temporary agency work where
the agencies employees are working at the site of the client company.
People associated with temping agencies at times get long breaks.
Earlier people found these long breaks and uncertainty to be a major disadvantage.
Today, surprisingly many find these breaks attractive and useful and prefer to be
part of temping agencies.
Reasons: more time with family and children. Opportunity to travel and be with
spouse especially when they are posted outside India.
Spirituality has become a major part of training sessions in organizations. Self
management and meditation seem to be working wonders on stressed out
employees.
2.2 Recruitment
Edwin B. Flippo defined recruitment as
the process of searching for prospective
employees and stimulating them to apply for jobs in the organization.
It deals with:
a) Identification of existing sources of applicants and developing them.b) Creation/identification of new sources of applicants.c) Stimulating the candidates to apply for jobs in the organization.d) Striking a balance between internal and external sources.
8/6/2019 Hrm Study Materials
11/28
Objectives of Recruitment
(i) To attract people with multi-dimensional skills and experiences that suits thepresent and future organizational strategies.
(ii) To induct outsiders with a new perspective to lead the company.(iii) To develop an organizational culture that attracts competent people.(iv) To devise methodologies for assessing psychological traits.(v) To search for talent globally and not just with the company.(vi) To anticipate and find people for positions that does not yet exist yet.Internal RecruitingJob Posting
Organizations can use skills inventories to identify internal applicants for job
Vacancies, because it is hard to identify all current employees who might be
interested in the opening, firms often use job posting and bidding. In the past, job
posting was little more than the use of bulletin boards and company publications.
Today, postings are computerized and easily accessible to employees via thecompanys intranet
Software allows employees to match an available job with their skills and experience.
External Recruiting
Walk-ins provide an important external source of applicants. As labor shortages
increase, however, organizations must become more proactive in their recruiting
efforts
a) External recruiting can be done through:b) Media advertisingc) E-recruitingd) Employment agenciese) Executive search firmsf) Special-events recruitingg) Internships
Media Advertisements
Media include:
a) Newspapersb) Trade and professional publicationsc) Billboardsd) Subway and bus cardse) Radiof) Telephoneg) Television
Recruitment strategies
8/6/2019 Hrm Study Materials
12/28
(i) In sourcing: companies recruit their own candidates, employ them, train anddevelop them and utilize them.
(ii) Outsourcing: External organizations whose core business is to providehuman resources, is called outsourcing.
Sources of RecruitmentTraditional Sources Modern Sources
Internal External Internal External
Present Permanent and
Temporary Employees
Campus Recruitment Employee
Referrals
Walk-in
Consult-in
Retrenched /Retired
Employees
Private employment
agencies
Head Hunting
Body Shopping
Dependents of
deceased/disabled/retired
employees.
Public Employment
exchanges
Mergers and
Acquisitions
Data banks, casualapplicants,
Tele Recruiting
Professional
associations, trade
unions etc.
Outsourcing
Modern External Sources of Recruitment
1) Walk-in The companies advertise candidates to attend interview directlywithout prior application on a specified date, time and at a specified place. The
suitable candidates from among the interviewees will be selected for appointment
after screening the candidates through tests and interviews. Walk-ins are
basically done for time saving and fast appointment of employees.
2) Consult-in The busy and dynamic companies encourage the potential jobseekers to approach them personally and consult those regarding jobs. The
companies select the suitable candidates from among such candidates through the
selection process.
3) Head hunting The companies request the professional organizations to searchfor the best candidates particularly for the senior executive positions. The
professional organizations search for the most suitable candidates and advise the
company regarding the filling up of positions. Head hunters are also called
Search consultants.
4) Body Shopping Professional organisations and the hi-tech training institutesdevelop the pool of human resources for the possible employment. The prospective
employers contact these organizations to recruit the candidates. Consulting
organizations also contact the prospective employers to supply suitable candidates
to place them in the right employment. The professional training institutes are
called body shoppers and these activities are known as body shopping.
8/6/2019 Hrm Study Materials
13/28
5) Mergers and Acquisitions Business alliances like acquisitions, mergers, andthe take overs help in getting human resources. In addition, the companies do
also have alliances in sharing their human resources on ad-hoc basis.
6) E- Recruitment Using internet as a source of recruitment is common inmodern days. Organizations advertise the job vacancies through the World Wide
Web (www). The job seekers send their applications and resume through e-mail
using internet. Many advantages are there for e-recruitment, such as low cost per
candidate, reduction in time, increase in selection ratio, HR personals can
concentrate on strategic issues, and increased efficiency and effectiveness of
recruitment.
Selection
It is the process of ascertaining the qualifications, experience, skill, knowledge etc.
of an applicant with a view to appraising his/her suitability to a job appraising. This
function includes:
a) Framing and developing applicationsb) Creating and developing valid and reliable testing techniques.c) Formulating interviewing techniquesd) Checking of referencese) Setting up medical examination policy and procedure.f) Line managers decision.g) Sending letters of appointment and rejection.h) Employing the selected candidates who report for duty.
Effectiveness ofSelection Procedure
The objective of the selection decision is to choose the individual who can most
successfully perform the job from the pool of qualified candidates. The company to
ascertain whether the candidates specifications are matched with the job
specifications. The following essentials are noted:-
a) Job requirements are met like specification and description.b) Employee specifications (physical, mental, social, behavioural, etc.)c) Suitable candidates are attracted.d)Authority of selection based on the job analysis and work load.e) Availability of job descriptions and job specifications beforehand.f) Availability of sufficient number of applicants.Stepsin Scientific Selection Process
i. Job analysis include job description, job specification and employeesspecifications.
ii. Human Resource plan the required number of and kind of employees for afuture date. This is the basis for the recruitment function.
8/6/2019 Hrm Study Materials
14/28
iii. Recruitment the process of searching for prospective employees andstimulating them to apply for jobs in an organization.
iv. Development ofBasis for selection The company develops or borrows theappropriate bases/techniques for screening the candidates in order to select the
appropriate candidates for the jobs.
v. Application Form or Application Blank A device used to screen thecandidates at the preliminary level. Many companies formulate their own
style of application blank depending upon the requirements of information
based on the size of the company, nature of business, type and level of job etc.
These include a) Personal background information b) educational attainments
c) work experiences d) salary expectations e) references etc.
vi. Written Examination on the basis of application blank, writtenexamination is conducted to check the candidates arithmetical ability, logical
reasoning, and knowledge in various disciplines, general knowledge and
English language skills.
vii. Preliminary Interview this is to solicit necessary information from theprospective candidates to assess the candidates suitability to the job. The
information given by the candidate may be related to the job specification and
the job description. Preliminary interviews are short and also known as stand
up interview or sizing up interview, because it is used as a measure to
eliminate the wrong candidates.
viii. Business games These are used for selecting management trainees,executive trainees, and managerial personnel at junior, middle and top
management positions. Business games are to find out the candidates ability
in decision making, problem solving, identifying potentials, human relation
skills etc.
ix. Group discussion GD is a method where groups of successful candidatesare brought around a conference table and are asked to discuss either a case
study or a subject matter. The candidates are required to analyze, discuss and
find alternative solutions and select a sound solution. In group discussion,
Candidates analytical ability, leadership skills, interpersonal relationship,
communication skills, values and attitude are identified.
x. Test Different types of tests are conducted by organizations to test thecandidates suitability on the job. These include psychological test to know the
behaviour pattern, aptitude tests to know the mental and physical aptitude
such as mechanical, clerical, manipulative capacity etc. Intelligent Quotient
(IQ) =
, Emotional Quotient (EQ) =
, skill tests
to know the artistic ability, mechanical aptitude tests to know the mechanical
8/6/2019 Hrm Study Materials
15/28
ability, psychomotor tests to know the motor skills, clerical aptitude tests to
know computation and comprehension abilities, achievement tests to test the
job knowledge and work experiences, situational tests to test the ability of
candidate to face the situation, interest tests to know the likes and dislikes of
the type of jobs, officers, organizations etc. are all conducted by various
institutions based on the strategies adopted for selection. Personality tests are
conducted to know the candidates value system, his emotional reactions,
maturity and characteristic mood.
xi. Multidimensional testing The need for multi-skills is being felt by most ofthe companies consequent upon globalization, competitiveness, and the
consequent customer centered strategies.
xii. Final Interview Different types of interviews are conducted like informal,formal, planned, patterned, non-directive, depth, stress interview and panel
interview. Informal interview can be conducted at any place by any person to
secure the basic information which is non-job related. Unstructured interviews
are with freedom given to the candidates express his background,
expectations, interest etc. Structured interview is a formal interview where all
the formalities and procedures are met like fixing the value, time, opening and
closing the interview and informing the candidate about the job characteristics
etc. Formal interview is conducted as a panel interview where panels of
experts interview each candidate and judges his/her performance individually
and prepares scores. The questions for the interview is preplanned and
structured, and experts are allotted different areas and questions to be asked.
In Depth interview candidate would be examined extensively in core areas of
job skills and knowledge. It is usually conducted for specialized jobs.
xiii. Decision Making Interview After the candidates are examined by theexperts in the core areas of the job, the head of the department/section head
interviews the candidate once again, mostly through informal discussion.
Interest of the candidate in the job, reaction/adaptability to working
conditions, career planning, promotional opportunities, work adjustment,
allotment etc. and the salary, allowances, benefits etc. are also discussed and
finalized.
Training and DevelopmentTraining improves changes, and moulds, the employees skills, knowledge,
behaviour and aptitude and attitude towards the requirements of the job and the
organization. Thus training bridges the differences between job requirements and
employees present specifications. It includes:
a) Identification of training needs of the individuals and the company.b) Developing suitable training programmes.
8/6/2019 Hrm Study Materials
16/28
c) Helping and advising line management in the conduct of trainingprogrammes.
d) Imparting of requisite job skills and knowledge to employees.e) Evaluating the effectiveness of training programmes.
Management Development: It is the process of designing and conducting suitable
executive development programmes so as to develop the managerial and human
relations skill of employees. It includes:
a) Identification of the areas in which management development is needed.b) Conducting development programmes.c) Motivating the executives.d) Designing special development programme for promotione) Using the services of specialists, and/or utilization of the institutional
executive development programmes.
f) Evaluating the effectiveness of executive development programmes.Difference between Training and Development
Area Training Development
Content Technical skills and
knowledge
Managerial and behavioural skills and
knowledge
Purpose Specific job related Conceptual and general knowledge
Duration Short-term Long term
For whom Mostly technical and non-
managerial personnel
Mostly for managerial personnel.
Benefits of training
1. Improved productivity and profitability2. Improved job knowledge and skills3. Improves morale of the workforce4. Employees identify the organizational goals5. Helps to create a better corporate image6. Improves relationship between boss and subordinate7. Helps to prepare the guidelines for work8. Aids in understanding the organizational policies9. Helps in effective decision making and problem solving10.Provides information for future requirements11.Aids in developing leadership skills, motivation, loyalty, and better attitudes12.Improves labour management relations13.Reduces outside consultation costs by utilizing the internal consulting14.Aids in improving organizational communication.
Need for Training
8/6/2019 Hrm Study Materials
17/28
1. To match the employee specifications with the job requirements andorganizational needs
2. Organizational viability and the transformation process.3. Technological advances4. Organizational complexity5. Human Relations6. Change in the job assignment.
Training Objectives
i. To prepare the employee to meet the present and changing requirementsof the job and organization.
ii. To prevent obsolescence.iii. To impart knowledge and skills to the new entrants.iv. To prepare employees for higher level tasks.v. To assist employees to function more effectively.vi. To build up second line of competent officers.vii. To ensure smooth and efficient working of a department.viii. To ensure economical output of required quality.ix. To improve individual and collective morale, a sense of responsibility,
cooperative attitudes and good relationships.
Career planning and development: it is the planning of ones career and
implementation of career plans by means of education, training, job search and
acquisition of work experiences. It includes internal and external mobility.
Assessment of Training Needs
Training needs are identified on the basis of organizational analysis, job analysis
and manpower analysis. Training programmes, training methods and course
content are to be planned on the basis of training needs. Training needs are
those aspects necessary to perform the job in an organization in which employee
is lacking attitude/aptitude, knowledge and skill.
Training Pitfalls
a)Attempting to teach too quicklyb) Trying to teach too muchc) Viewing all trainees as the samed) Giving very little time to practicee) Offering very little to the trainee in the form of encouragement, praise or
reward
Learning Principles: The Philosophy of Training
Training efforts are invariably based on certain learning oriented guidelines:
8/6/2019 Hrm Study Materials
18/28
a) Modeling: It is simply copying someone else's behaviour. (like showing thevideotapes of desired behaviour while at work)
b) Motivation: For learning to happen, it is important to motivate the traineefirst.
c) Reinforcement: If behaviour is rewarded, it probably will be repeated.Positive reinforcement consists of rewarding desired behaviours.
d) Feedback: Feedback helps an employee find where he stands. People learnbest if reinforcement is given as soon as possible.
e) Spaced practice: Learning takes place easily if the practice sessions arespread over a period of time.
f) Whole learning:Employees learn better if the job information is given as anentire logical process.
g)Active practice: Learning is enhanced when trainees are provided ampleopportunities to repeat the task.
h) Relevance: training should be as real as possible so that trainees cansuccessfully transfer the new knowledge to their jobs
i) Environment: employees learn faster in comfortable environmentsAreas of Training
j) Knowledgek) Technical skillsl) Social skillsm)Techniques
Types of training
a) Skills training: here certain basic skills like reading, writing, computing,speaking, listening, problem solving etc are taught.
b) Refresher training: here the focus is on short term courses that would helpemployees learn about latest developments in their respective fields.
c) Cross functional training: this helps employees perform operations in areasother than their assigned job.
d) Team training: this is concerned with how team members shouldcommunicate with each other, how they should cooperate to get ahead, how
they should handle conflicting situations, how to find their way using collective
wisdom etc.
e) Creativity training: this helps employees to think unconventionally, breakthe rules, take risks, go out of the box and develop unexpected solutions.
f) Diversity training: it aims to create better cross cultural sensitivity with theaim of fostering more harmonious and fruitful working relationships among a
firm's employees.
8/6/2019 Hrm Study Materials
19/28
g) Literacy training: this is generally offered to those employees with weakreading, writing or arithmetic skills.
Training methods
Number of programmes are available for training. Some of these are new and
modern training methods. Basically, training methods are classified into on-the job
and off-the job training.
On-the-Job Training Methods Off-the Job Training Methods
Job rotation Vestibule training
Coaching Role playing
Job instruction Lecture MethodsTraining through step-by step Conference or discussion
Committee assignments Programmed instruction
On-the Job training methods (OJT) OJT are most commonly used method.
Individual is placed on a regular job and taught skills necessary to perform the job
effectively. Job rotation is giving the trainee different experiences and knowledge
into job assignments. Usually different departments are given to know the aptitude
of the candidate. Coachingis the training given by a supervisor under whom the
trainee is placed. Regular feedback given by the supervisor makes the trainee
understand the job and the responsibility.J
ob instruction is also known as thetraining through step by step. Each step in performing a certain task is explained in
this method. Committees assignments are specific tasks are given to a group of
individuals to solve an organizational problem. Team work and interpersonal
relationship is being given importance in this type of training.
Off- the Job Training Under this method, trainee is separated from the job
situation and his/her attention is focused on learning the material related to the
future job performance. Information Technology and Multi-media technology are
used extensively in this type of training. Vestibule trainingis actual work
situation is simulated in a class room. Materials, files, equipment or machinery is
used in the class room for training.Role playingis defined as a method of human
interaction that involves realistic behaviour in imaginary situations. Lecture
method is the traditional and most commonly used off-the job training method as it
can take more number of employees. To be effective the trainer should motivate the
employees and initiate participation. Conferences or discussion is usually used
for clerical, supervisory personnel, and professional employees. Ideas, facts,
Objectives
of Training
InnovativeProblemSolving
Regular
8/6/2019 Hrm Study Materials
20/28
examples, tests assumptions and conclusions are used for better performance.
Programmed instructions is a new method and popular in recent years. The
subject matter to be learned is presented in a series of carefully planned sequential
units. These units are arranged from simple to more complex levels of instruction.
The trainee goes through these units by answering questions or filling the blanks.
Motivation
Motivation as a concept was recognised in 1912 by Frederick Taylor, but it wasnt
fully considered until about 1950-60; when it was discussed by many early theorists
in relation to behavioural responses. Many Psychologists have described motivation
as a need, desire or want which serves to drive behaviour towards a desired goal
(Kleinginna & Kleinginna, 1981).Furthermore, Franken (1994) classifiedmotivation as the arousal, direction and persistence of behaviour. It is apparent
that there are no simple clear definitions of motivation. Historically motivation as a
concept has its roots in the traditional view of pay rewards as incentives or external
rewards. However, with the advent of non-financial incentives such as more work
benefits there seems to be a shift towards internal rewards as sources of motivation.
Throughout this time period various theories of motivation have been developed
such as Maslows hierarchy of needs (1954), Herzbergs two-factor model (1959),
Lockes goal setting theory (1968), Warrs vitamin theory (1987), Hackman &
Oldhams Job Characteristic Model (1979), Reinforcement Theory Skinner (1953),
Adams Equity Theory (1963) and Vrooms Expectancy Theory (1964). A large
number of theories of motivation have been developed, varying in usefulness and
applicability to modern day organisations.
Theory X and Theory Y - McGregor
McGregor (1960) classified two of the three common-sense approaches as theory X
and theory Y, and suggested that they are adopted by different individuals or the
same person at different times (McGregor 1960, Argyris 1964, Schein 1988). The
term theory is not used in reference to theoretical frameworks but as a descriptive
term to explain the different approaches. It has been suggested that theory X can be
used to describe individuals who cannot be trusted and are lazy and unreliable. It is
said that such individuals are motivated with the use of financial rewards and
threats of punishment. Thus, without these rewards individuals seek their own
goals, which are often in conflict with the goals of the organisation (McGregor 1960).Theory Y is the opposite of theory X where the individual seeks self-development
and works in line with the goals of the organisation. Theory Z, the social approach,
is where an individuals behaviour is determined by social interactions at work; the
person feels a sense of belonging at work and is motivated by such feelings more
than financial rewards.
Maslows Theory
8/6/2019 Hrm Study Materials
21/28
We each have a hierarchy of needs that ranges from "lower" to "higher." As lower
needs are fulfilled there is a tendency for other, higher needs to emerge. Daniels.
Maslows theory maintains that a person does not feel a higher need until the needs
of the current level have been satisfied. Maslow's basic needs are as follows:
1) Basic Human Needs food, air, water, clothes, sex etc.2) Safety and Security Protection, Stability, Pain avoidance, Routine/order.3) Social Needs Love and Belongings Affection, acceptance, inclusion.4) Esteem Needs Self Respect, SelfEsteem, and Respected by others.5) Self- Actualization Achieve full potential, Fulfillment.
Herzbergs Theory
Herzbergs (1959) Two-Factor model consists of a two part process where factors are
both external and internal to the person. The internal factors are termed
motivational needs and the external factors are hygiene needs. Motivational
needs accounted for peoples achievement, recognition, advancement, responsibility,
the work itself, and growth possibilities. Hygiene needs accounted for peoples pay,
status, job security, working conditions, company policy, peer relations, and
supervision.
Lockes Goal setting theory
Lockes (1968) goal setting theory can be classified as achievement motivation and
can be further segmented into mastery goals, (also known as learning goals)
which, involves mastering new knowledge or skills; performance goals (also known
as ego-involvement goals) which involves performing well on basic standards with
minimal effort; and social goals, which looks at relationships among people. In
well-structured environments students with mastery goals tend to perform better
than students with either performance or social goals. However, in real world
situations high levels of achievement is dependent on maintaining all three goals
(Ames 1992). Thus it is suggested that people are motivated to either avoid failure
or achieve success (Dweck 1986) It has also been suggested that people who set
strong, hard goals are more likely to achieve them (Doyle 2003).
Hackman & Oldham (H O Theory)
Hackman & Oldham (1979) believed that job characteristics consisting of five
elements which are skill variety, task identity, task significance, autonomy
and feedback, influences individuals motivation and psychological well-being,
resulting in positive work outcomes. If an individuals job possesses all these
characteristics then that person will have an internal desire to perform well i.e. be
intrinsically motivated. This theory seems to be more adaptable to the work
environment but it is not without its limitations as not all jobs may fit into such a
rigid structure of having five job characteristics. There are other factors also to be
8/6/2019 Hrm Study Materials
22/28
taken into account, such as individual differences which would be addressed later
on within the discussion section of this report. Having discussed the intrinsic
theories of motivation an attempt is now made to explore theories of motivation
which adopt a more extrinsic approach.
Reinforcement theory establishes the fundamental and basic ideas of the
influences of consequences on behaviour. The ideas of this theory were clearly
identified within Skinners (1953) experimental work involving the influence of
reward on behaviour. To add further clarification to this theory it simply means
that people would probably work harder if they know it would result in positive
outcomes. It works on the premises that rewards increase behaviour while
punishment decreases behaviour.
Equity Theory (Adams, 1963) focuses on the individual and how that person
strives to motivate themselves through feelings of equity or inequity i.e. whether or
not the situation is fair or unfair. Furthermore, it was proposed that negative
feelings in an individual can motivate that person to do something to rectify their
situation. Huseman, Hatfield & Miles (1987) suggested that the greater the
inequity a person feels the greater the distress felt by the individual; therefore the
distress causes the individual to work harder at restoring equity. However, such
negative feelings can also lead to a state of de-motivation.
Expectancy theory by Vroom
The basis for Vrooms (1964) expectancy theory lies in the assumption that people
expect certain actions to be able to achieve desired outcomes where the desired
outcomes are believed to be worth striving for or avoiding. Motivation is dependent
on the strength of the expectancy and the significance of the desired outcomes to the
individual. Again this theory like its predecessors assumes that all individuals
operate under the same frameworks.
Performance Management
Evaluating and analyzing the performances of all individuals in the organization
against the benchmarks set and developing individuals as per the required
standard to meet the organizational goals. Performance Evaluation is the
process of appraising employees job performance. The following are the steps
involved in measuring the performance of individual employees.
8/6/2019 Hrm Study Materials
23/28
Performance management cycle has the following steps:
1) Performance planning2) Mid-year review3) Final review and feedback4) Normalization.The planning will include:1) Selection ofKRAs (Key Result Areas)2) Setting target and actions plans to achieve the KRAs3) Designing and allocating the responsibilities4)Assigning weight age to the responsibilities.
The issues in managing performance in Global environment
1.Culture and performance
2. Rewarding Performance
3. Virtual teams
4. Underperformers
5. Subsidiary performanceThe performance appraisal methods and common errors
appraisal methods common errors Essay appraisal. Graphic rating scale. Field review. Forced-choice rating. Critical incident appraisal. Management-by-objectives approach. Ranking methods. Assessment centers 360 degree feedback
Halo effect Bias Leniency and Strictness Central Tendency Favorable Impressions Recency
Effective Communication
Communicating effectively, either orally or in writing, depends on understanding
the business client and responding to each situation from the clients point of view.
In todays competitive business environment improving communication with
clientele promotes business success.
8/6/2019 Hrm Study Materials
24/28
Verbal Communication
Verbal communication is the use of language or words in oral or written. Any
language can be used for the business communication; however, internationally
accepted business communication language is English. Choosing words words are
the smallest units of messages. Give importance to words, an effective word is one
that your received will understand and that will elicit the response you want. Use a
Dictionary and a Thesaurus the two most valuable resources for the business
communicator.
Six Principles for selecting words for effective messages
1. Choose understandable words2. Use specific, precise words3. Choose strong words4. Emphasize positive words5. Avoid overused words6. Avoid obsolete words.
Developing written business messages
The process for developing written business messages consists of the following three
steps:
1. Planning2. Drafting3. Finalizing
1. Planningis the step taken before putting words. Analyze the situationby asking the crucial questions like, who will receive the message? What
are the constraints? What does the receiver need to know? What action do
I want my receiver to take?
2. Draftingthe message is using the mental or recorded notes draft thesentences. Apply the principles of communication and use the view point
of the receiver and focus on the content. Writers Block is the difficulty
in putting the thoughts into words.
3. Finalize the message involves proofreading the document to determinewhere it needs to be revised and edited. Both are similar processes with
different objectives. Revising focus on content; editing focus on mechanics.
Non-Verbal Communication
Its not always just what you say. Its also how you say it. Nonverbal
communication is usually understood as the process of communication through
sending and receiving wordless messages.
8/6/2019 Hrm Study Materials
25/28
Such messages can be communicated through gesture; body language or posture;
facial expression and eye contact; object communication such as clothing, hairstyles
or even architecture; symbols and info graphics; prosodic features of speech such as
intonation and stress and other paralinguistic features of speech such as voice
quality, emotion and speaking style.
Body language
Clusters of body parts are used to understand body language / gestures. Your eyes,
your posture, your overall body language, even your appearance at the time the
communication is exchanged, and the voice in which you offer the exchange makes
an impact on the effectiveness of communication.
In verbal communication, an active dialogue is engaged with the use of words. At
the same time, however, non-verbal communication takes place, relying on
nonverbal cues, such as gestures, eye contact, facial expressions, even clothing andpersonal space.
Nonverbal cues are very powerful, making it crucial that you pay attention to your
actions, as well as the nonverbal cues of those around you. If, during your meeting,
participants begin to doodle or chat amongst themselves, they are no longer paying
attention to you: Your message has become boring or your delivery is no longer
engaging.
Once again, you need to be mindful of cultural differences when using or
interpreting nonverbal cues. For instance, the handshake that is so widely accepted
in Western cultures as a greeting or confirmation of a business deal is not accepted
in other cultures, and can cause confusion.
While eye contact, facial expressions, posture, gestures, clothing and space are
obvious nonverbal communication cues, others strongly influence interpretation of
messages, including how the message is delivered. This means paying close
attention to your tone of voice, even your voices overall loudness and its pitch.
Be mindful of your own nonverbal cues, as well as the nonverbal cues of those
around you. Keep your messages short and concise. This means preparing in
advance whenever possible. And for the impromptu meeting, it means thinking
before you speak.
Object Communication:
The most common form of object communication is clothing. The types of clothing
that people wear are often used to determine their personality. Good examples of
8/6/2019 Hrm Study Materials
26/28
clothing as object communication are school uniforms, military uniforms, dressing
by doctors, nurses, bishops etc.
Haptics: Touches that can be defined as communication include: Handshakes,
holding hands, kissing (cheek, lips, hand), back slap, high five, shoulder pat,
brushing arm, etc.
Each of these give off nonverbal messages as to the touching person's intentions/
feelings. They also cause positive or negative feelings in the receiver.
Chronemics: The way we perceive time, structure our time and react to time is a
powerful communication tool. Punctuality, willingness to wait etc.
Oculesics: People use their eyes to indicate their interest. This can be done
through eye contact. For example, when a professor is giving a lecture, a student
may communicate disinterest by reading a magazine instead of looking at the
professor's presentation.
Handshakes
Three steps to a proper handshake:-
i. As you're approaching someone, extend your right arm when you're aboutthree feet away. Slightly angle your arm across your chest, with your thumb
pointing up.
ii. Lock hands, thumb joint to thumb joint. Then, firmly clasp the other person'shand without any bone crushing or macho posturing.
iii. Pump the other person's hand two to three times and let goPhone tips
a)Answer in a prompt and courteous mannerb) Treat everyone with respectc) Keep a calm but neutral tone of voiced) Keep a relaxed body posturee) Inform callers we want to connect them to the resource/person they need.f) Empathize with the callerg) Focus on the problemh) Do not blindly transfer callersi) Answering Your Phone
j) Always identify yourself when you answer the phone: "This is (Name)."k) Speak in a pleasant tone of voice - the caller will appreciate it.l) Learn to listen actively and listen to others without interrupting.m)When you are out of the office or away from your desk for more than a few
minutes, forward your phone to voicemail.
n) Use the hold button when leaving a line so that the caller does notaccidentally overhear conversations being held nearby.
8/6/2019 Hrm Study Materials
27/28
o) If the caller has reached a wrong number, be courteous. Be businesslike andbe effective.
p) Speaking to the point and ending conversations within a reasonable timeframe without being rude or rushing the callers.
Taking Messages
a) When taking messages be sure to ask for: (1) Caller's name (asking the callerfor correct spelling if required) (2) Caller's phone number and/or extension
(including area code)
b) Repeat the message to the caller.c) Be sure to fill in the date, time, and your initials.d) Place the message slip in the called party's inbox or in a conspicuous place in
their office, such as their chair.
Making Calls
When you call someone and they answer the phone, do not say "Who am I speaking
with?" without first identifying yourself: "This is (name). To whom am I speaking?"
Always know and state the purpose of the communication.
When you reach a wrong number, don't argue with the person who answered the
call or keep them on the line. Say: "I'm sorry, I must have the wrong number. Please
excuse the interruption." And then hang up.
If you told a person you would call at a certain time, call them as you promised. If
you need to delay the conversation, call to postpone it, but do not make the other
person wait around for your call.
If you don't leave a number/message for someone to call you back, don't become
angry if they are not available when you call again.
How to End Conversations Gracefully
There are several ways that you can end a long phone call without making up a
story or sounding rude:
Leave the conversation open.
Promise to finish your discussion at another time.
Tell the person how much you've enjoyed speaking with him/her.
Be honest and polite.
Communicate powerfully by Email
Considerations before writing an Email Messagea) What is the purpose of the communication?b) Is the information personal, official or confidential?c) Is there an alternative communication method?d) Is the use of this communication tool an avoidance mechanism?
8/6/2019 Hrm Study Materials
28/28
For further reading
1. P. Subha Rao, Human Resource Management, Himalaya PublishingHouse, Chapter 1, 2, 5, 6, and 7
2. Krizan, Merrier, Logan, Williams, Effective Business Communication,Cengage Learning, Chapter 4, 5, 13, 15, and 17.
3. Rai and Rai, Managerial Communication, Himalaya Publishing House,Chapter 2, 4, 9, 11, 16 and 24.
4. Stephen P. Robbins, Organizational Behaviour, 13thEdition, PearsonHouse, Chapter 06, and 07.
Recommended