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INTRODUCTION TO HRM- schedule of lectures
1. What is an Organization and what is Management
2. Understanding Personnel Management & HRM functions
3. Comparison between Personnel Management and HRM
4. Manpower Planning and Job Analysis
5. Recruitment and Induction
6. Performance Appraisal
7. Training and Development
8. Compensation and Reward Management9. Career Planning and Succession Planning
10. Work Motivation
11. Human Resources Information System (HRIS)
12. Quality of Work Life
13. Organizational Development
14. Management of Organizational Change
15. HRM Strategies for long-term growth
16. Productivity and HRM
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Books to be Read for Human Resource Management
1. Human Resource Management- P.Subba Rao
2. Personnel Management- C. B.Mammoria3. Human Resource Management-Dessler (Prentice Hall)
4. Personnel/ Human Resource Management-DeCenzo & Robbins(PHI)
5. Human Resource Management- D.K. Bhattacharya(Excel)
6. Human Resources Management- VSP Rao (Excel)
7. Managing Human Resource-Gomez(PHI)
8. Personnel Management-Edwin Flippo
9. Human Resource Management- Bohlander & Snell
10. Organizational Development- French & Bell (For O.D.only)
11. Managing Human Resources- Monappa
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Human Resource ManagementHuman Resource Management--An OverviewAn Overview
1.WHAT IS AN ORGANIZATION?
(a) What are its features?
(b) Which is its core function?
(c ) How does this core function perform its activities?
(d) What is the essence of the core function?
(e) What resources does the core function utilize?
(f) Which resource is the most important?
(g) Does the Organization have a context? What is it?
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Human Resource Management
Main task of Management is getting things done through and with people
Main job of Management is Economic Performance:
The sub-functions of Management are:
1. Managing the Business
2. Managing Managers
3. Managing Worker and Work
4. Managing Time
Definition of Management:
Management is the process of designing and maintaining an
environment in which individuals, working together in groups,
efficiently accomplish selected aims.
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Human Resource Management
The various dimensions of Management include:
Managers carry out the functions of Planning, Organizing, Staffing,
Leading, and Controlling.
Management applies to any form of organization It applies to managers at all organizational levels
The aim of all managers is the same: to create a surplus
Managing is concerned with productivity; this implies effectiveness
and efficiency.
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MANAGEMENT FUNCTIONSMANAGEMENT FUNCTIONS
Planning function determine an organizations objectives
and establish the appropriate strategies for achieving thoseobjectives
Organizing function creates a structure of task and authority
relationships that serves this purpose
Controlling function requires three elements
(a) Established standards of performance
(b) Information that indicates deviations between actual and
the established standards
(c )Action to correct performance that does not meet the
standards
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MANAGEMENT FUNCTIONSMANAGEMENT FUNCTIONS
Staffing function is the management of the human resource
including recruiting, appraising, training and developing,motivating and separating.
Leading function is the process that integrates the functions as
planning, organizing, and controlling
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MANAGEMENT FUNCTIONSMANAGEMENT FUNCTIONS
Planning determines whatresults the organization will
achieve
Organizing specifies how the results will be achieved
Controlling determines whether the results are achieved
Through planning,organizing and controlling, managers
exercise leadership
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Human Resource ManagementHuman Resource Management--An OverviewAn Overview
2. A LOOK AT THE PERSONNEL MANAGEMENT
FUNCTION
(a) The definition as described by IPM
(b) The definition as described by Edwin Flippo
3. ANALYSIS OF THE PM FUNCTION
4. UNDERSTANDING HUMAN RESOURCES
FUNCTION
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Human Resource ManagementHuman Resource Management
Definition of PM- Institute of Personnel Management (IPM) 1963
Personnel Management is the 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. Personnel Management
aims to achieve both efficiency and justice, neither of which can
be achieved without the other. It seeks to bring together and
develop into an effective organization the men and women who
make up an enterprise enabling each one to make his bestcontribution to its success as an individual and as a member of a
working group. It seeks to provide fair terms and conditions of
employment, and satisfying work for those employed.
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Definition OfPersonnel Management
Edwin Flippo
Personnel management is the planning, organizing, directing, andcontrolling of the procurement, development,compensation, integration,
maintenance, and separation of the human resources to the end that
individual, organizational, and societal objectives are accomplished.
Management functions Operative functions ObjectivesPlanning Procurement Individual
Organizing Development Organizational
Directing Compensation SocietalControlling Integration
Maintenance
Separation
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Evolution of the Personnel FunctionEvolution of the Personnel Function
1. RECRUITMENT MAN
- textile and jute mills required unskilled in large numbers- recruitment on daily basis- badli workers
- systematic records
2. LABOUR MAN
- tough person for dealing with unskilled workmen
- also their union leaders
3. INDUSTRIAL RELATIONS MAN
- dealing with union representatives
- manipulating them
- ensuring the organization needs are met
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Evolution of the Personnel functionEvolution of the Personnel function
4. LEGAL MAN
- Plethora of labour legislations
- dealing with Industrial Disputes in the various courts
- liaisoning with legal advisors and court authorities
5. WELFARE MAN
- Section-49 man
- various responsibilities laid down
-fulfilling them and satisfying the various authorities
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Personnel Mans Comprehensive ResponsibilitiesPersonnel Mans Comprehensive Responsibilities
Personnel Manager
Rec.-M Labour-M IR-M Legal-M Wlf.-M Admn.-M
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HRMHRM-- EvolutionEvolution
Period Emphasis Status Roles
1920-30 Welfare management
Paternalistic policies
Clerical Welfare Administrator,
Policeman
1940-60 Expanding the role to
Labour Welfare, I. R., &
Personnel Admn
Administr
ative
Appraiser
Advisor Mediator
Legal Advisor
1970-80 Efficiency, effectiveness
dimensions added
Emphasis on human
values, aspirations dignity,
usefulness
Develop
mental
Change agent,
Integrator
Trainer,
Educator
1990s Incremental productivity,
gains through human
assets
Proactive,
growth-
oriented
Developer, Counselor
Coach,Mentor,Problem
Solver
2000
onwards
Centrality of Role Strategic Partner in Top Mgt.
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Definition OfPersonnel Management
Torrington & Hall98
Personnel Management is workforce- centered, directed mainly at
organizations employees; finding and teaming them, arranging for them
to be paid, explaining managements expectations, justifying
managements actions, satisfying employees work-related needs, dealingwith their problems and seeking to modify management action that could
produce unwelcome employee response. Although indisputably a
management function, personnel management is never totally identified
with management interests, as it becomes ineffective when not able to
understand and articulate the aspirations and views of the workforce.
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Definition Of Human Resource Management
Torrington & Hall98
Human Resources Management is resource-centered, directed
mainly at management needs for human resources( not
necessarily employees) to be provided and deployed. Demand
rather than supply is the focus of the activity. There is greateremphasis on planning, monitoring and control, rather than
mediation. Problem- solving is undertaken with other members
of management on human resources issues rather than directly
with employees or their representatives. It is totally identified
with management interests, being a general management activity,and relatively distant from the workforce as a whole.
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Human Resource Management
Objectives of HRM-
1. To Help The Organization Reach Its Goals
2. To Employ The Skills And Abilities Of The Workplace Efficiently
3. To Provide The Organization With Well-trained And Motivated
Employees
4. To Increase To The Fullest The Employees Job Satisfaction And
Self-actualization
5. To Develop And Maintain A Quality Of Work Life
6. To Communicate HR Policies To All Employees
7. To Help Maintain Ethical Policies And Behavior
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Analysis OfPersonnel Management Function
PersonnelAdmn. Industrial Relations WelfareManpower Planning Recognition Medical
Recruitment Negotiation Crche
Induction Agreements Safety & Accident Prevn.
Probation Settlements Working Conditions
Confirmation Industrial Disputes TransportTransfer Discipline Recreation
Promotion Strikes & Lockouts Housing
Increments Productivity
Timekeeping
PayrollRecords & Stats.
Separation
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Human Resources Planning
Definitions:
1. HR planning is the process-including forecasting, developing and
controlling- by which a firm ensures that it has the right number of people
and the right kind of people at the right places at the right time doing workfor which they are economically most useful .(Geisler)
2. The HR planning process consists of forecasting and strategic planning,
and program implementation and evaluation.
Aspects include the following:
(a) The future plans, growth areas, additions/deletions ofbusiness/product/service lines
(b) The change in technology, work methods, location of plants, relocation of
people
(c) The productivity mix that is being planned
(d) The change in company systems, practices, including work culture( thephenomenon of delayerring and empowering people
(e) The proposed changes e, g, from functional to matrix structure
(f) A proper and full job profile to match the job task requirements
(g) An inventory based on HRIS to clearly indicate the existing capabilities
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Human Resources Planning
Activity Flow Chart
Corporate Mission-Strategy-Structure
Planning Horizon-HRI System- Inventory Profile
Need for Defining HRP
Basis for Planning-Demand-Supply
Environment( Ext. Int.)
Methods- Judgement-Ratios
Organization Process- Approvals
Changes Needs Deployment
Redeployment/Retraining/VRS
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HUMAN RESOURCE PLANNING
JOBANALYSIS consists of three parts
Job Description
Job Specification
Job Classification
Job Evaluation
JOB DESCRIPTION- is an organized, factual statement ofthe duties and responsibilities of a specific job. It should
tell what is to be done , how it is done and why.
JOB SPECIFICATION- is a statement of the minimum
acceptable qualities necessary to perform a job properly.
JOB CLASSIFICATION- grouping of jobs on some specific
basis such as kind of work or pay.
JOB EVALUATION- is a systematic and orderly process of
determining the worth of a job in relation to other jobs.
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HUMAN RESOURCE PLANNING
The first point of HRP is to determine the Quality and Quantity of
personnel to be recruited etc.
There is a need to have a Personnel Requisition Form duly authorized
without which no hiring/placement should be done.
Terminology used is detailed below:
Position- a group of tasks assigned to an individual
Job-group of positions that are similar as to the kind and level of workOccupation-is a group of jobs that are similar as to kind of work and
are found throughout the industry or throughout the country. An
occupation is a category of work found in many firms.
n. b. One can have a Position, Job and an Occupation simultaneously
JOBANALYSIS- is the process of studying and collecting informationrelating to the operations and responsibilities of a specific job.
n.b. Job Analysis is not to be confused with Motion Study which is the
process of finding out the easiest, most effective, and most
economical way of doing it.
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Human Resources Planning
Format ofPersonnel Requisition:
1. Requisition for which category e.g.Workmen/ Service StaffStaff/ Officers
2. Location of the Job/ Vacancy
3. Nature of the Vacancy-Permanent/ Temporary(months)
4. Number of Vacancies
5. Whether within sanctioned plan or not
6. Reason for Vacancy-Workload/Replacement
7. How is the vacancy sought to be filled-Transfer/Internal
promotions/Outside Recruitment
8. Job Description9. Job Specification
10. Originated/ Recommended/ Scrutinized/ Sanctioned
11. Copies to all concerned
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Human Resource Planning
Format of Job Description:
1. Job Title
2. Reporting To
3. Reporting to Job Holder
4. Overall Responsibilities
5. Main Tasks/ Accountabilities
6. Factor Analysis-situational, goals and activities
7. Resources Controlled(a) Total no. of staff- levels , categories etc (b) Annual Budget
(c) Floor Space (d )Value of Assets (e) Turnover
(f) Throughput
8. Decisions
9. Complexity- units, functions, tasks10. Contacts
11. Relation to other jobs- internal and external
12. Physical Environment
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Human Resources Planning
Format Job Specification
1. Job Title
2. Job Objective
3. Main Duties
4. Reporting To ND those reporting to Job Holder
5. Qualifications (a) Educational (b) Professional
6. Experience (a) Number of years (b) Nature of Experience
7. Knowledge-specialized, general, industry etc.8. Skills required e.g. communication, computer etc.
9. Other qualities e.g. leadership etc.
10. Age Range
11. Personality
12. Relationships- Superiors,Subordinates, Peers, others13. Aptitudes or Qualities
14. Attitudes
15. Circumstances orBackground
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Human Resources Planning
ROLE ANALYSIS
Job Analysis should be extended to include Role Analysis. The concept
of role is broader than that of job. A role would consist of the pattern
of expected behaviour, interactions, and sentiments for an individual
holding an assigned job.
e. g. a supervisor or boundary-spanning jobs like personnel manager or
credit officer etc.
Such roles require superior verbal skills, sensitivity to the values of theexternal personnel, and an aptitude for remembering details.
Job descriptions in two companies may look the same but the role
requirements could be substantially different e.g. Engineering Dept.
Supervisor-
(a) Democratic set-up-helping ,supporting, persuading talking freely andcheerfully, and empathetic understanding
(b) Authoritarian- aggressiveness in relation to others, insistence upon
adherence to prescribed patterns, impatience with faulty
performance, and supportive relationships with superiors rather thanwith subordinates.
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HUMAN RESOURCES PLANNING
For an understanding of the Human Resources Planning System it is
necessary to know the sub-systems which form a part of Human
Resources Management.
The sub-systems are as under:
1. Manpower Planning
2. Selection
3. Induction and Placement
4. Performance Appraisal5. Training and Development, and Career Planning
6. Compensation
7. Work and Involvement, and Quality of Work Life (QWL)
Issues involved
(a) HR strategies, systems and structure(b) Cross-functional teams, open communication system and data access
(c) Employee competency and development needs e.g customer orientn.
(d) Employee orientation towards organizational survival vis--vis
competition
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PROCESS OF JOBANALYSIS
Sources of Data
Job Analyst
EmployeeSupervisor
Job Description
TasksDuties
ResponsibilitiesJob Data
Tasks
Performance Standards
Knowledge Required
Skills Required
Experience Needed
Job Context
Duties
Equipment UsedMethods of
Collecting Data
Interviews
Observations
Records
DOT
Job SpecificationSkill Requirements
Physical Demands
Knowledge requirements
Abilities Needed
HR Functions
Recruitment
SelectionTraining & Devpt.
Performance Appraisal
Compensation Mgt.
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BASES FOR JOB DESIGN
THE JOB
For the job, including tasks,
duties,and responsibilities
to be performed
Reflected in the differenttalents,abilities, and skills of
employees
Concerns centering onefficient production
processes and work
method improvements
including human
capabilitiesand limitations
Organizational Objectives
Ergonomics Considern
Behavioural Concerns
Industrial Engineering
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HUMAN RESOURCES PLANNING
FORECASTING HR REQUIREMENTS ( DemandAnalysis)
(Trying to predict future staffing needs)1. Managerial Estimates
2. Sales Projections
3. Simulations
4. Vacancy Analysis
FORECASTING HR AVAILABILITY (Supply Analysis)
( Predicting worker flows and availabilities)
1. Succession or Replacement Charts
2. Skills Inventories (use of HRIS)3. Labor Market Analysis
4. Markov Analysis (Transition Matrix)
5. Personnel Ratios
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HUMAN RESOURCES PLANNING
VACANCY ANALYSIS
(Historic Departures)
Level Empl. Turn.% Expected Expected toVacancies remain
TOP MGT . 100 20% 20 80
MID MGT. 200 24% 48 152
LOW.MGT. 600 22% 132 468
SKILLED W 600 16% 96 504
ASSY WKRS 2000 12% 240 1760
TOTALS 3500 536 2964
Average turnover percentage= 536/ 3500= .1531
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Step 8
Step 7
Step 6
Step 5
Step 4
Step 3
Step 2
Step 1
Hiring Decision
Reference Checks
Medical Examination
Selection Interview
Selection Tests
Application Blank
Screening Interview
Reception
Steps in the Selection Process
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HUMAN RESOURCES PLANNING
PERSONNEL RATIOS
Past experience has developed these ratios for recruiting a Cost
Accountant.
For every 12 applications received only 1 looks promising enough to
invite for an interview
Of every 5 persons interviewed, only 1 is actually offered a position in
the organizationOf every 3 job offers made,only 2 accept the position
Of every 10 new workers who begin the training program,only 9
successfully complete the program
THUS 100 APPLICATIONS MUST BE RECEIVED, so that8.33 JOB INTERVIEWS CAN BE HELD, so that
1.67 JOB OFFERS CAN BE MADE, so that
1.11 PEOPLE MUST BE TRAINED, so that WE GET
ONE NEW COST ACCOUNTANT
HUMAN RESOURCES PLANNING
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HUMAN RESOURCES PLANNING
(HRIS)
PERSONAL DATA
Age, Gender, Dependents, Marital status, etc.
EDUCATION & SKILLS
Degrees earned, Licenses, Certifications
Languages spoken, Special skills
Ability/ knowledge to operate specific machines/equipment/software
JOB
HISTORYJob titles held, Location in Company, Time in each position, etc
Performance appraisals, Promotions received, Training & Develpt.
MEMBERSHIPS & ACHIEVEMENTS
Professional Associations, Recognition and Notable accomplishmnts
PREFERENCES & INTERESTSCareer goals, Types of positions sought
Geographic preferences
CAPACITY FOR GROWTH
Potential for advancement, upward mobility & growth in the Co.
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INDUCTION PROGRAMMEINDUCTION PROGRAMME
1. Organizational Issues
History of company Names and titles of key executives
Employees title and department
Layout of physical facilities
Probationary period Products/services offered
Overview of production process
Company policies and rules
Disciplinary procedures
Employees handbook
Safety steps
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INDUCTION PROGRAMMEINDUCTION PROGRAMME
2. Employee Benefits
Pay scales, pay days Vacations, holidays
Rest pauses
Training avenues
Counseling
Insurance, medical, recreation, retirement benefits
3. Introductions
To supervisors
To co-workers
To trainers
To employee counselor
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INDUCTION PROGRAMMEINDUCTION PROGRAMME
4. Job Duties
Job location Job tasks
Job safety needs
Overview of jobs
Job objectives
Relationship with other jobs
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HRMHRM-- INTRODUCTIONINTRODUCTION
PERFORMANCE APPRAISAL SYSTEM
I have six honest serving men,
They taught me all I knew,Their names are What and Why and When
How and Where and Who. Rudyard Kipling
ASPECTS OF PERFORMANCE APPRAISAL
WHAT: It is an assessment about how the employee is performing on the
job. Is it as per expectations, below expectations or above expectations.
WHY is it necessary to have an appraisal systems? Two objectives are
there- what are these ?
WHEN are appraisals to be done? Once a year? Twice a year ? Or once
in two years?Is there a process involved in appraisals? WHO is to be involved and
why must they be involved?
WHERE is it to be done? In the open or behind closed doors?
HOW- Methods of Performance Appraisal
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Performance Appraisal SystemPerformance Appraisal System
PURPOSES OF APPRAISAL
1. Assessing Performance2. Increment
3. Promotion
4. Transfer
5. Training6. Development
7. Termination
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Performance Appraisal SystemPerformance Appraisal System
Types of Appraisal Systems
1. Traits appraisal
2. Targets and Traits appraisal
3. MBO
4. 360 Degree appraisal system
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PERFORMANCE APPRAISAL SYSTEMPERFORMANCE APPRAISAL SYSTEM
Other Methods of Performance Appraisal:
1. Ranking2. Person-to person comparison
3. Grading
4. Graphic scales5. Checklists
6. Forced choice description
7.B
ES-expectation scalesBOS- observation scales
8. Essay
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PERFORMANCE APPRAISALPERFORMANCE APPRAISALTRAINING OF THE RATER:
1. The halo error2. The central tendency
3. Constant errors
(a) too harsh
(b) too easy or lenient
4. Miscellaneous errors
(a) similar-to me.
(b) contrast
(c )position
(d) biases of sex, race, religion, and nationality
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TRAINING AND DEVELOPMENTTRAINING AND DEVELOPMENT
TRAINING TERMINOLOGY
Training- is a process of learning a sequence ofprogrammed behaviour. It attempts to improveperformance on the current job or prepare for an intendedjob
Development it is related to training and covers not onlyactivities which covers improvement in job performance
but also brings about growth of the personality; helpsindividuals in the progress towards maturity and self-actualization of the persons potential capacities so that
they become not only better employees but also better menand women.Training a person for a bigger job isDevelopment which would include not only specific skillsand knowledge but also personality and mental attitudes
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TRAINING AND DEVELOPMENTTRAINING AND DEVELOPMENT
Training Terminology
Education is the understanding and intervention of knowledge. It
develops a rational and logical mind that can determine relationships
among pertinent variables and their character, and understanding of
basic principles and develop the capacities of analysis, synthesis and
objectivity, Usually, education is outside the purview of organizations
except of educational institutions.
Aspect Training Development
Term Short-term Long-term
Personnel Non-managers ManagersProcess Technical & Philosophical &
Mechanical Theoretical
TRAINING AND DEVELOPMENTTRAINING AND DEVELOPMENT
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TRAINING AND DEVELOPMENTTRAINING AND DEVELOPMENTThe Training Process involves:
1. Identification of performance opportunities and analysis of what
caused those opportunities to exist2. Identification of alternative solutions to the opportunity and
selection of the most beneficial solution
3. Design and implementation of the solution
4. Evaluation of the results
Training provides employees with the knowledge and skills toperform more effectively, preparing them to meet the inevitablechanges that occur in their jobs
Training is an opportunity for learning
Learning means a relatively permanent change in cognition(i.e.understanding and thinking) that results from experience andthat directly affects behaviour.
Learning happens because of many factors including design andimplementation of training, the motivation and learning style of the
trainees, and the learning climate in the organization
TRAINING AND DEVELOPMENTTRAINING AND DEVELOPMENT
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TRAINING AND DEVELOPMENTTRAINING AND DEVELOPMENT
Learning Objectives
Skill-Based LearningCompilation
Automaticity
Cognitive Knowledge
Declarative Knowledge
Procedural Knowledge
Strategic Knowledge
Attitudinal Learning
Affect/Feelings
LEARNING
T i i d D l tT i i d D l t
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Training and DevelopmentTraining and Development
Comparing Training and Development
Learning Training DevelopmentDimensions
Who? Non-managerial Managerial
What? Technical & Theoretical
Mechanical Conceptual ideasWhy? Specific job General Knowledge
related purpose
When? Short-term Long-term
TRAINING AND DEVELOPMENTTRAINING AND DEVELOPMENT
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TRAINING AND DEVELOPMENTTRAINING AND DEVELOPMENT
Purpose of Training:
1. To increase Productivity2. To improve Quality
3. To improve Organizational Climate
4. To improve Health and Safety
5. Obsolescence Prevention6. Personal Growth
Responsibility for Training
1. Top Management- frames training policy
2. Personnel Dept - plans, establishes and evaluates programmes3. Supervisors - implement and apply development procedure
4. Employees - who provide feedback, revision and suggestions
Training and De elopmentTraining and De elopment
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Training and DevelopmentTraining and Development
Active Learning
1. People remember only 10% of what they read
2. 20% of what they hear
3. 30% of what they see
4. 50% of what they see and hear
5. 70% of what they say6. 90% of what they say as they perform the
task
N.B. In other words, people learn best and more by doing than by
hearing.
T i i d D l tT i i d D l t
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Training and DevelopmentTraining and DevelopmentTraining Methods and Techniques
Classification of Training Methods
On the job Demon. & Apprenticeship Other Training
examples Methods
Vestibule Simulation Classroom
Methods
Lectures Conference Associations Audiovisua
Case Study
Role-Playing
Programmed
Instruction
TRAINING AND DEVELOPMENTTRAINING AND DEVELOPMENT
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TRAINING AND DEVELOPMENTTRAINING AND DEVELOPMENT
Classification of Training Methods:
1. Training in the field, on- the- job
Apprenticeship
In-Plant Training
Craftsmanship Training
2. Simulating Real Life SituationsRole Playing
Business Game
In-Basket Training
3. Laboratory TrainingSensitivity Training-T-Group and L-Group
Transactional Analysis
TRAINING AND DEVELOPMENTTRAINING AND DEVELOPMENT
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TRAINING AND DEVELOPMENTTRAINING AND DEVELOPMENT
Classification of Training Methods(contd.)
4. Sampling Real Life
Incidents, Case Method/Case Studies
5. Individualized Training or Counselling
Practicing Specific Skills
Reading and Writing Assignments
Postal Tuition
Programmed Instruction
6. Discussion Methods
Syndicate MethodSeminars , Conferences, Colloquium, Symposium
7. The Lecture Method
CAREER PLANNING
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CAREER PLANNING
( Balancing Individual and Organizational Needs)
Organizations Needs
Strategic Operational
Current competencies Employee turnover
Future competencies Absenteeism
Market changes Talent pool
Mergers, etc. Outsourcing
Joint ventures ProductivityCAREER MANAGEMENT
Personal Professional
Age/tenure Career stage
Family concerns Education & training
Spouse employment Promotion aspirations
Mobility Performance
Outside interests Potential
Current career path
Individual Needs
CAREER PLANNING OF HR MANAGEMENT
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CAREER PLANNING OF HR MANAGEMENT
Regl.HR
Associate
HR
Associate
Reg.HR
Manager
Asst. plt.
HR mgr.
HR
Super.
Corp.HR
Manager
Asst. div
HR Dir.
Plant
HR mgr
Corp.HR
Dir.
Div.HR
Dir.
VP-HR
ALTERNATIVE CAREER MOVES
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ALTERNATIVE CAREER MOVES
PROMOTION
EXITTRANSFER
DEMOTION
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CAREER PLANNING
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(Components of Career Planning)
Organization Individual
Career Planning Career Planning
Future Needs Self Awareness: Abilities
and interests
Career Ladders Planning Goals, Life & work
Assessment of Individual Planning to Achieve Goals
Potential
Connecting Organizational Alternatives: Internal & Extl.
Needs and Individual Need to Organization
Coordination and Audit of Career ladders: Internal and
Career System & Extl. To Organization
Synthesis
Placement
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HRM STRATEGIES FOR LONGHRM STRATEGIES FOR LONG--TERMTERM GROWTHGROWTH
1. Outsourcing HR activities
2. BPO and Call Centres
3. How to balance Work with Life (QWL)
4. Making HR activities Ethical
5. Managing Diversity6. Attitude towards Unions
7. Globalization
8. Corporate Re-organizations
9. New Organizational Forms10.Changing Demographics of the Workforce
11.Changed Employee Expectations
12.Loss of Joy and Pleasure
HRM d PRODUCTIVITYHRM d PRODUCTIVITY
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HRM and PRODUCTIVITYHRM and PRODUCTIVITY
Using HRM tools for achieving Productivity:
1. Attracting the right kind of people
2. Getting them to give of their best
3. Providing them with the right Leadership
4. Creating an Organizational Culture thatencourages Learning
5. Rewarding employees for their Performance
6. Training & Developing and Growth Opportunities
7. Making efforts to Retain employees
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Job Enrichment ( contd.)
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( )
-increasing the level of difficulty and responsibility of the job
-allowing employees to retain more authority and control over work
outcomes
-providing unit and individual job performance directly to employees-adding new tasks to the jobs that require training and growth
-assigning individuals specific tasks to enable them to become experts.
The above factors enable
(a) Greater role in the decision-making process
(b) More involved in Planning, Organizing, Directing and Controlling
(c) May be accomplished by formation of teams for self-management
JE is not a solution to problems of pay or benefits dissatisfaction,or
employee security
Moreover its not that all employees are dissatisfied with mechanicalwork on the assembly line and its not that all employees seek
responsibility and challenge in their jobs as they like their minds to
wander while they work.
Employee Empowerment
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This involves granting employees power to initiate change, thereby
encouraging them to take charge of what they do.
E encourages employees to become innovators and managers of their
own work, and it involves them in their jobs in ways that give themmore control and autonomous decision-making capabilities.
E involves pushing down decision-making responsibility to those
internal and external customers.
For encouraging E the following conditions are necessary
1. Participation: Employees must be encouraged to take control of
their work tasks. Employees, in turn, must care about improving their
work process and interpersonal work relationships
2. Innovation: The environment must be receptive to people with
innovative ideas and encourage people to explore new paths and totake reasonable risks at reasonable costs. An empowered
environment is created when curiosity is as highly regarded as is
technical expertise
Employee Empowerment (contd.)
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p oyee powe e (co d.)
3.Access to information: Employees must have access to a wide range
of information. Involved individuals decide what kind of information
they need for performing their jobs
4. Accountability: E does not involve being able to do whatever you
want. Empowered employees should be held accountable for their
behaviour toward others, producing agreed-on results, achieving
credibility,and operating with a positive approach
E thrives where the culture of the organization is open and receptive tochange. Culture is created through the philosphies of senior managers
and their leadership traits and behaviour.
Effective leadership in an empowered organization is highlighted by
managers who are honest, caring, and receptive to new ideas, and who
exhibit dignity and respect for employees as partners in organizationalsuccess.
INCENTIVE SCHEMES
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In the absence of incentive schemes employees tend to only meet the
minimum performance standards.However,when incentives are
linked to output, workers will increasingly apply their knowledge and
skills to their jobs and will be encouraged to work together as a team.
Incentive Plans are grouped under three categories:
1. Individual Incentive Plans
2. Group Incentive Plans
3. Enterprise Incentive PlansIndividual Group Enterprise
1.Piecework Team compensation Profit sharing
2.Standard hour plan Scalon Plan Stock options
3.Bonuses Rucker Plan ESOPS
4.Merit pay Improshare5.Lump-sum merit pay
6.Incentive awards
7.Sales incentives
8.Incentives for professional employees
Incentive schemes (contd.)
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Generally Incentive schemes are linked with organizational objectives
both on an individual or group basis. These could be
(a) Lowering labor costs
(b) Improving customer satisfaction(c) Expand product markets
(d) Maintain high levels of productivity and quality
Advantages of Incentive Pay Programs:
1. Employee efforts focus on specific performance targets
2. Variable costs linked to achievement of results
3. Both quality and quantity parameters are to be met
4. Incentives foster teamwork and unit cohesiveness
5. Incentives are a way to distribute success6. Incentives are a way to reward or attract top performers
Successful incentive programs should be- linked to valued behaviour,fair
to employees,set challenging but achievable productivity/quality
standards with payout formulas simple and understandable
Incentive schemes( contd.)
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( )
Individual Incentive Plans:
A) Piece Work
1. Straight Piecework-for each unit produced
2. Differential Piecework if production exceeds the standard output
higher rate is paid for all the output than the rate paid to those who
do not
n.b. is applicable where the work is readily measureable;quality is
less critical;job is fairly standardized and there is a steady flow ofwork
B) Standard Hour Plan
Standard Time is the predetermined time for completing a job. If a
job which requires 5 hours is completed in 4 and-a-half hours he
would be paid his wage rate times five hours.C) Bonus
It is a payment made beyond the wage rate and provides employees
with more wages for increased effort.It is more applicable to
executive and managerial employees also to all.
Incentive schemes(contd.)
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( )
Merit Pay:
This is paid to those who have achieved some objective performance
This will serve as a pay motivator especially for top performers while
sending a message to poor-performing employees. A strategic
compensation policy must differentiate between outstanding,good
and average performance. Furthermore,granted on the basis of merit
should be distinguishable from cost-of-living or other general
increases.Only a percentage of employees will be eligible for merit
awards(7to10%).
Problems with Merit Raises:
1. Money may not be adequate to raise base pays of all employees
2. Problems of defining performance clearly3. Employees unable to distinguish merit raises to their performance
4. Performance appraisal often at odds appraiser and appraisee
5. Lack of honesty and cooperation
6. Merit pay do not motivate higher levels of management
Incentive schemes ( contd.)
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Incentive Awards and Recognition
Employers should take care to tie awards to performance and deliver
awards in awards a in a timely, sincere and specific way
Employers are now thinking of awards and employee recognition morestrategically with programs closely aligned to their business goals
Sales Incentives
Sales jobs require good deal of enthusiasm and drive in view of the
competitive nature of selling. Incentive plans must provide a source of
cooperation and trust particularly when employees are away from the
office and cannot be supervised closely and who have to exercise a high
degree of self-discipline
Sales people can be measured by the rupee value of their sales as also bytheir ability to establish new accounts,promote new products or services
and provide various forms of customer service and assistance.
It may be noted that sales performance is affected by factors beyond their
control like economic and seasonal fluctuations, sales
competition,changes in demand and nature of sales territory etc.
Incentive Schemes ( contd.)
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Types of Sales Incentive Plans
(a) Straight salary plan:Helps to devote more time to providing more
services and building up goodwill with customers without affecting
income. However, the limitation is that there is no motivation tomaximize sales effort
(b) Straight commission plan:Provides maximum incentive and is easy to
compute and understand. It may be a percentage of sales but has the
following limitations
1.Emphasis is on sales volume rather than on profits
2.Customer service after the sale is likely to be neglected
3.Earnings tend to fluctuate between good and bad business periods
4.Salespeople are tempted to grant price concessions
(c ) Combined salary and commission plan: This is widely used andthere is the 70/30 distribution reasons being:has a right mix with
advantages of both the above systems; affords greaer flexibility could
maximize company profits;can develop favourable ration of expenses
to sales and the sales force can be motivated to meet marketing goals.
Job Satisfaction
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Definition: A pleasurable or positive emotional state resulting from the
appraisal of ones job experience
From the above it can be inferred that job satisfaction is the consequence
of employees perception of how well his job provides him thosethings which are considered to be important.
Job Satisfaction has three important aspects:
1. It can be said to be an emotional response( cannot be seen) to the job
situation
2. It will be measured in terms of how well the end results match(or
meet) or exceed expectations
3. It is always referred to in terms of several related attitudes
There are various factors which affect Job Satisfaction:
(a) Pay(b) The Work
(c) Promotions
(d) Supervision
(e) Work Group
(f) Working Conditions
Job Satisfaction( contd.)
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Ways of measuring Job Satisfaction:
(a) Rating Scales
1. General rating scales
2. Popular rating scales
Minnesota Satisfaction Questionaire
Job Description Index
Porter Need Identification Questionaire
(b) Critical IncidentsThis method was popularized by Frederick Herzberg and covers
incidents in the job situation which were particularly satisfying and
dissatisfying and related to those positive and negative attitudes.
(c ) Personal Interviews
This method provides an opportunities for in-depth interaction andclarification but the interviewer could be prejudiced and the manner
of questioning and recording the information could affect the
result.Besides the method is time-consuming and expensive.
Job Satisfaction ( contd.)
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Job Satisfaction ( contd.)
(d)Action Tendencies
Here the respondents are asked on how they feel like behaving with
respect to certain aspects of their job.Impact of Job Satisfaction on WorkPerformance
There is a big debate on whether job satisfaction has a positive effect on
productivity. But employees with satisfied employees are more effective
than those with dissatisfied employees.Just as job satisfaction is a result
of work experience, organizational effectiveness can be improved byidentification of causes for high dissatisfaction.
It must be noted that there is no definite linkage between satisfaction and
productivity. In other words,satisfied workers need not be the highest
producers.
Job Satisfaction andAbsenteeism
Research has shown that there is an inverse relationship between job
satisfaction and absenteeism.When Job satisfaction is high, absenteeism.
And when satisfaction is low, absenteeism is high.When an employee
feels is not that important he tends to remain frequently absent.
Job Satisfaction (contd.)
Oth l t d i t f J b S ti f ti
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Other related impacts of Job Satisfaction
-Better mental health and physical health
-Enthusiasm to learn new job-related tasks
-Fewer on- the- job accidents and grievances-Likely to engage in pro-social behaviour- tries to help colleagues,
customers and will to be cooperative
Relationship between Job Satisfaction and Productivity, Turnover
and Absenteeism
Productivity Turnover Absenteeism
No strong
Linkage
between
JS and
productivity
A moderate
relationship
exists
between JS
and turnover
Inverse
relationship
exists
between
Absenteeism
and JS
Assignment in HRM for Management students
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Assignment in HRM for Management students
This is a group assignment consisting of 5 students
1. A pharmaceutical company which has a good market and its factoryin Mumbai is unable to expand because of Government restrictions.
2. It plans to double its turnover and profits in 3-5 years
3. It has an employee strength of 1000 employees and has selected a
factory site in Goa where a state-of-art plant is being set up.
4. It would need only 500 employees to shift to Goa and would notrequire the others
5. The task is to address all the People issues and ensure a smooth
transfer of personnel to Goa and make the factory fully operational.
6. The Top Management would be given an incentive of Rs. 2 crores forthe successful completion of the job
7. The time limit for the completion of the job basically involving the
People issues is 6 months