Human Resources Management Unit – i Introduction

8/14/2019 Human Resources Management Unit i Introduction

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HUMAN RESOURCES MANAGEMENT

UNIT I

INTRODUCTION TO HRM: DEFINITION

Personnel administration is a method of developing the potentialities ofemployees so that they get maximum satisfaction out of their work and give their bestefforts to the organization

- PIGORS & MYERSPersonnel/HR management is a part of management process which is primarily

concerned with the human constituents of an organization- BRECH

IMPORTANCE OF HUMAN RESOURCES

The only resource which is able to produce an output greater than its input A living resource (ability to think, feel, etc.)

HR is more complex and unpredictable Distinctive background of every human being Value appreciation when time passes

OBJECTIVES OF HRM

Attaining economically and effectively the organization goals Serving to the highest possible degree, the individual goals Preserving and advancing the general welfare of the society

- MICHAEL JUCIUS

QUALITIES OF A GOOD PERSONNEL/HR MANAGER

Insight in human nature Freedom from bias Communication skills Leadership skills Organizational skills Counseling skills Problem solving skills Management change

EVOLUTION & GROWTH OF PERSONNEL/HR MANAGEMENT

In US:

YEAR SITUATION

Till 1932 Free market philosophy1932-1946 Government funded welfare programs1946-1970 Emphasis on training, prohibition of discrimination

1970 & beyond Occupational safety, growth of unions, change of personnel to HR

K.Prakash, Asst.Professor 1


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In India:

YEAR SITUATION

1931 Appointment of labour officers to settle worker grievances1948 The Factories Act (Appointment of welfare officers)

1965 21 companies had specialized personnel departments with officers1970 & beyond Importance of HR realized

HRM is not fully successful because

o Highly authoritarian cultureo Abundance of cheap labouro Weak labour movemento Technological backwardnesso Traditional management

Suggestions for improvement

Change in organization structure giving importance to line-staffrelationship

Giving adequate training and development to personnel/HR managers Recognising own perception of personnel/HR managers Giving importance to intrinsic motivation

MODEL STRUCTURE OF HR DEPARTMENT

Director Personnel/HR

Manager Manager Manager Manager (Personnel) (Administration) (HRD) (IR)

Executive Executive Executive(Appraisals) (T&D) (Legal)

PRO Canteen i/c Medical Welfare ExecutiveOfficer Officer

(Transports)

Executive Executive Executive(Planning & hiring) (Grievance handling) (Compensation)



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HR POLICIES

General statements which guide thinking and action in decision making

NEED FOR HR POLICIES For economical and effective production For scientific selection of workers (Scientific management by F.W. Taylor) For practical application of psychological principles For effective management of unions and work groups For providing welfare, compensation and safety to workers(legal compulsion)

TYPES OF HR POLICIES

I Classification on the basis of sources1. Originated policies (formally established by top managers)

2. Implied policies (not formally expressed but implied or inferred fromsuperiors actions)

3. Externally imposed policies (imposed by external agencies likeGovernment, trade associations, etc.)

II Classification on the basis of description1. General policies (formulated by top managers and relates to economic

security, social responsibility, creativity, etc)2. Specific policies (formulated by personnel manager and relates to specific

issues like staffing, compensation, collective bargaining, etc. It is framedaccording to general policies)

SCOPE

1. In selection Employment of local people, staff of competing firms, etc. Promotions Role of trade unions Expenses

2. In training Importance in the organization Purposes acceptable

3. In compensation Wage fixation according to market and industry Performance based wage fixation

4. In work Hours of work Rest periods Vacations Working conditions



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5. In employee care Sickness benefit Old age and unemployment benefits

GUIDELINES FOR POLICY FORMULATION

Policies should coincide with objectives

It should be of long range Policies should be flexible Policies should recognize informal groups Policies should recognize individual differences Policies must be impartial Policies must conform with Government regulations Policies must be prepared after careful analysis Policies should be in writing

ADVANTAGES OF A WRITTEN POLICY

Policy ensures uniformity Policy ensures continuity Policy promotes effective delegation of authority Policy promotes planning and teamwork Policy gives clarity and understanding Policy is a source of training and orientation

HR POLICIES & WORK CULTURE

1. There must be a person in the organization to initiate the need for the right policy2. Policies must be formulated after analyzing past practices, prevailing practices

and the attitudes of employees and management

3. Policy evaluation should be made according to the experience of affected andgained people4. Situational changes in work culture may affect HR policies

HR PLANNING

Long term planning (beyond 5 years)Nature of job, recruitment and selection process, job analysis, etc.

Short term planning (less than 5 years)Period of duty, type of employment, induction process, etc.

JOB ANALYSIS

It is the process by which a description is developed of the present method andprocedures of doing a job, its physical conditions, its relation to other jobs and otherconditions of employment.

OBTAINING DATA FOR JOB ANALYSIS

1.Questionnaire 2.Observation 3.Checkllist4.Technical conference 5.Interview



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USE OF JOB ANALYSIS

-Provides complete knowledge about jobs - Helps in revising the existing procedures-First step in selection - Helps in finding training needs-Forms the base for job evaluation - Helps in promotion

JOB DESCRIPTION

It is the result of job analysis. It includes Job location (division, department) Title of the job Job grade Purpose of the job Main tasks to be carried out Details of equipments used Location of the job and traveling required (if any) Special circumstances (shifts, OT, dangerous)

ROLE ANALYSIS TECHNIQUE

1. Manager defines the task. Immediate superior clears hisconfusions.

2. Manager lists his expectations in the group. Members also statetheir expectations. Conclusion is arrived.

3. Manager writes up the role which consists of all aspects ofwork.

JOB SPECIFICATIONIt is a statement of the minimum acceptable human qualities necessaryto perform a job satisfactorily.

It is difficult to prepare when compared with job description(Disagreements will be more).

SKILLS INVENTORY

Analyzing and recording the skills available in the organization Helping the employee in upgrading skills brings in more effort Helps in urgency Requires constant upgradation

END OF UNIT I



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UNIT II

RECRUITMENT & SELECTION

PURPOSE OF RECRUITMENT

1. To motivate the job seeker to apply for a job2. To get the right person for the right place3. To communicate job description and job specification for the job

seeker4. To make the job seeker understand the organization5. To fill the vacancies at the right time

STEPS

I Placing the requisition II Recruitment III SelectionIV Placement V Induction

I PLACING THE REQUISITION

1. Identification of future recruitment activities2. Sending the indent for recruitment to personnel department by the line

manager or head of the department3. Indent includes job description, job specification, number of

vacancies, nature of employment (temporary or permanent), salary,terms and conditions, etc.

II RECRUITMENT

It is the process of searching prospective worker and stimulating themto apply for jobs in the organization.Sources/Methods: Advertisements in newspapers/magazines (direct/indirect/agency) Employment exchanges

Educational institutions Labour contractors References by employees Unsolicited applications

III SELECTION



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It involves picking for hire a subset of workers from the total set ofworkers who have applied for the job.Selection instruments: Application scrutiny with the help of structured application form,

unstructured application form, weighted application form Interview - It is a face to face, observational and personal appraisal

method of evaluating the applicant where the interviewer has thedominant role.

Kinds of Interviews

1. The direct planned interview2. The indirect non-directive interview3. The patterned interview4. The stress interview5. The systematic depth interview

6. Panel or board interview7. Group interview

Procedure for an Interview

1. Reviewing background information2. Prepare a question plan3. Creating a helpful setting4. Conducting the interview5. Concluding the interview

Tests (Psychological)

To measure skills and abilities

Kinds

1. Knowledge tests2. Ability tests3. Aptitude tests4. Simulation exercises

Merits:-. Less time consuming. Knowing inside talents

Demerits:-

. Chances of bias

. Costly when compared to interview



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4. References

5. Physical examination

IV PLACEMENT

Matching people with exact positionsSelection and placement are inseparable small companies

V INDUCTION

Information the social setting of to the new employeeInformation include, Company history, products and operations. Organization structure and functions Company policies, rules and regulations Opportunities for promotion, etc.

RECRUITMENT COSTS

. It includes running the recruitment division fee paid foradvertising agency/ media recruitment and selection costs, etc.

. It can be reduced through Planning properly the process of recruitment Using properly the process of recruitment

Reduction employee turnover

FUNCTIONS OF HRM

TRANSFERS

It is the lateral movement of the employee in the hierarchy of positions with thesame pay and status.

Types of Transfers:

Production transfers (department to department)

Replacement transfers (Retaining experienced employees) Versatility transfers (job rotation) Shift transfers (same type of work) Remedial transfer(fault correction)

PROMOTIONSIt is the process of moving the employee to a higher position from the present

position.



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Requirements for a sound promotion scheme Uniforms distribution of promotional opportunities throughout the organization. Import knowledge about promotion for the employees Definite system of selection of employees Promotions should be finally sanctioned by the line heads. Promotional policy should include follow-up, counseling and review.

CAUSES OF INDISCIPLINE Ineffective leadership Low wages and poor working conditions Lack of promotional opportunities Unfair management practices Defective communication system Uninteresting work Drunkenness and family problems Outside political influences, etc.

DISCIPLINARY ACTIONSIndiscipline leads to various kinds of punishments like

Fine, Suspension, demotion, termination of services (Dismissal), etc.

DISMISSAL It is the ultimate penalty and rarely used. It is the immediate action takento terminate the employment contract of the employee without notice.

The employee is not usually entitled to PF or Gratuity benefits. Managersgenerally avoid it.

Employees may be transferred and / placed in dummy jobs so that they

resign themselves and quit.

RESIGNATION OR QUIT It is a voluntary separation.

Notice/ salary according to the terms of employment.

Exit Interviews: It is arranged to know the real reason for leaving a job. A leaving man is expected to speak frankly about his dissatisfaction. But, in

reality, it is not so.

Probing is required which is difficult for the interviewer. The exit interviews cover the following areas.

1. Ability and skills of the supervisor2. Opportunity for advancement3. Job freedom4. Planning and organization in the department5. Training received6. Feelings towards management, etc.



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RETRENCHMENT It is the termination of services due to surplus. Retrenchment is a permanent termination whereas layoff is only a

temporary denial.

Law says that employees shall not retrench any worker who has workedfor 240 days before retrenchment until.

1. Giving one month notice/wages2. Giving 15 days wages for every completed year as compensation3. Giving preferences to retrenched worker in future employment

If the organization has 100 or more workers, 3 months notice must begiven. Also, approval from the Government must be got.

VRS (VOLUNTARY RETIREMENT SCHEMES)

It is a special scheme offered to separate surplus employees Special packages and benefits will be allowed.

Merits:

Removal of surplus employees Saving money on long term basis

Demerits:

Cost factor Morale comes down Difficulty in settling down

PREVENTION OF EMPLOYEE TURNOVERRegarding Pay:

Increasing pay to meet competition Altering pay systems to reduce fluctuations

Regarding employee career: Providing better career and training opportunities

Implementing, promotion from within policies

Regarding conflicts: Improving communication Using team-building techniques Effective procedures for consultation, participation, etc.



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Regarding labour shortage: Improving recruitment selection and training Introduction better planning and scheduling methods

Regarding Poor work environment: Improving the work condition Giving adequate training

HRM UNIT III

PERFORMANCE APRAISAL/ PERFORMANCE EVALUATION

METHODS:

1. Ranking method2. Rating scale method3. Critical incident method

1. Ranking Method:

It is the oldest and simplest method Comparison of one man with all other men and placing him in a

simple rank order Difficult in large groups

2. Rating-Scale method:

There are two types of scales

1. Discrete: Tick marks any one of the criteria like Exceptional,Average, Poor, etc.

2. Continuous: Here, an uninterrupted line is provided.

There are 4 types of standards used in scales

1. Numerical standards: Numbers will be provided2. Descriptive-adjective standards: Descriptive adjectives are

used.Example: Very good, good, average, poor, very poor, etc.

3. Man-to-Man standards: Persons according to standard traitsare found and compared with others.4. Behavior sample standard: Description of the behavior in

every chosen factor

3. Critical incident technique:



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Find out the job requirements for each job Assign values by group of experts Observation and recording by supervisor

Removing subjectivity from evaluation Common appraisal form for all employees No consideration of specialized questions

MBO (Management by Objectives):

Each manager identifies his key effective areas Establishment of objectives (long and short term) with the help of

superior

Periodic review and updation of objectives can be done which isuseful for evaluation

Evaluation criteria for promotions

Individuals expectations Involvement level in the organization Training received and needed Individuals potential for growth Technical skills

Jobs performance Managerial skills Overall performance

Job Enrichment:

It is the technique for increasing an employees motivational potential Management allows the worker to do some of his works by the

supervisor

Workers will be given increased planning and controlling with lesssupervision and more self-evaluation It will be successful, only if the employee feels enriched

It increases employee responsibility and satisfaction

WAGE AND SALARY ADMINISTRATION



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Meaning: Wage: - Payments for hourly rated production workersSalary: - Payments to clerical, supervisory and managerial

employees.

WAGES CALCULATION

Minimum Wage:-

It is the statutory fixation of the Government under which wagesshould not be paid

It is irrespective of profits, financial conditions of the company, etc. It is calculated by analyzing

i. The standard working class familyii. Minimum food requirements

iii. Clothing requirements

iv. Miscellaneous items (fuel, lighting, etc)

Fair Wage:-

It is the above minimum wage and below living wage. It includes

i. The productivity of labourii. Competitor wages

iii. National income

iv. Place of industryv. Economy of the country

Living Wage:-

It helps not only in survival but also in preservation ofefficiency of the worker. It includes

i. Education

ii. Medical facilities, etc.

SALARY CALCULATION:-

The following factors are considered

Job complexity



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Employers ability to pay Employees education and experience

PERQUISITES: - Money given in addition to wages and salaries

Example: Incentives, profit share, etc.COMPENSATION PACKAGES:-

It includes: - Basic Pay, DA, HRA, and CCA (if applicable)PF, ESI are some standard deductions.

COST OF LIVING INDEX

Following factors are considered.

1. Minimum income for an average family

2. Countrys economy3. Growth rate4. Increase in prices of essential commodities

DEAR ALLOWANCE

Calculated as a percentage of basic pay 4 types of calculation

1. Flat Rate D.A. :-

Common rate to all categories of workers irrespective of wagelevels and consumer price index.2. Graduated scale of D.A.:-

D.A. increases with slab of salary but the percentage decreasessteadily

3. D.A. computed according to the changes in consumer price

index:-

A point in consumer price index is decided Flat rate D.A.is paid,, above this level for all workers.

4. D.A. linked to pay slab and to consumer price index :-

Differential rates of D.A above price index point. High rate of D.A. for low salary slab and vice-versa

Supreme court criteria for fixing D.A. :-1) Capacity to pay2) Regionally comparable rate



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3) Same D.A. for same wages

REWARDS AND INCENTIVES

Financial incentives - compensation plans

I. Plans with workers earnings varying in the same proportion as theextra output

II. Plans with workers earnings varying at lower rate than the increasein the output

III. Plans with workers earning varying proportionately more than outputIV. Plans with workers earnings varying in different proportions at

different levels of output

I 1. The straight piece-rate systemExample:- For every piece, Re.1/

2. The standard hour system :-Rate increases if the actual time decreases when compared to

standard time

II 1. Halsey system:-Standard time is fixedWage = Hourly rate for actual time + Bonus for time saved

Bonus = of time saved * Daily wagesTime taken

2. Rowan systemSame as in Halsey system but bonus percentage is directly

proportional to the rate of time saved

3. Bedeaux systemWage for standard time is fixed

Bonus = 75% of [points earned * hourly rate]

60

1 point = 1 minuteMax points = 8hrs * 60

= 480 points

4. Barth variable sharing systemWages = standard time * time taken * hourly rate



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III 1. High piece rate system Proportion of differential piece-rate system

IV 1. The Taylor differential Piece rate system:-

Output below standard : Low Piece rate Output above standard : High piece rate + bonus of 50% of hourlywage rate

2. The Gantt task system Output below standard : Minimum guaranteed hourly rate On meeting standards : 20% bonus + wages Exceeding standards : High Piece-rates

Non-Financial incentives

1. Promotions2. Additional responsibility3. Awards

Productivity-linked bonus:-

Payments of bonus usually at a differential piece rate for the excessouput when compared to a standard output.

Compensation criteria for effective administration:-

1. Compensation planning should be an integral part of financial planning

2. Plans must be relevant3. Proper communication system4. Proper organization structure for determining.

END OF UNT III



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UNIT IV

EMPLOYEE SAFETY & HEALTH

PREVENTIVE APPROACHES

Health education Audit of safety programs Safety training Stress management

HEALTH EDUCATION

It includes Class room sessions in which importance of health, fitness, fighting against

hazards, problems caused due to alcoholism and drug abuse are explained byexperts

Installation of fitness centers/providing health club memberships and sponsoringsports programs in which employees are trained/encouraged for health awareness

Medical examination and advice in which blood pressure, sugar levels, weightcontrol, etc will be examined and suggestions to health management will be given

AUDITING SAFETY PROGRAMS

Plan of each activity/program Report of happenings in each program Coverage of employees at all levels Special importance to employees working in hazardous/dangerous conditions Inspection of work surroundings

SAFETY TRAINING & EDUCATION



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Exhibiting easily visible safety signs at appropriate places Keeping slogan boards at various places Placing articles in organizations newsletters Class room discussions relating to accident prevention measures Careful design of jobs and equipments Enforcing the usage of protection equipments like shoes, gloves, glasses, noise

muffles, etc.

WORK STRESS

What is stress ? State its causes.

Stress can be defined as an adaptive response to an external factor that results inphysical, psychlogical or behavioural deviations in an individual. The various causes forstress are as follows.(i) Individual stressors :

Life and career changesPersonality typeRole characteristics(ii)Group stressorsLack of group cohesivenessLack of social supportConflict(iii)Organisational stressorsOrganisational policiesOrganisational structureOrganisational processes

Physical conditions.

Effects of stress

(i)Physical problems Nerve excitement, increased heartrate, decrease in bodytemperature

(ii)Psychlogical problems Anger, dispressions, tension, boredom, inability toconcentrate, job dissatisfaction

(iii)Behavioural problems Alcoholism, drug addiction, increased smoking habits,sleeplessness, under and over eating.

Various types of stress

There are three types of stresses(i)Psychological stressors

(ii)Organizational stressors(iii)Societal stressors



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(i) Psychological stressors :Life involves constant adaptation, stress remain within an organism in response in ademand for adaptation. These may precede the physical event, last longer and continueto evoke stress after physical event is past

Stressors are ofcatacysmic phenomena, individual crisis and daily hassels. Catacysmic type results from sudden, unique and powerful single

events and clusters of related events affecting large number ofpeople.

Individual crisis affect fewer people that challenge adoptiveabilities. Daily hassels refers to problems encountered in dailylife.

Some of the feelings of the people are - My role tends to interfere with my family life - I think that I am not learning enough in my present role for atking

up higher responsibility - I am unable to satisfy the conflicting demands of various people

around me - My role has lost its importance - I am overloaded with work - Other people do not allocate enough attention and time to my role - I lack sufficient knowledge to handle the responsibilities in my

role - I will have to perform things in my role that are against my better

judgement

- I am not clear on the scope and responsibilities of my job - I am not provided with communication needed to carry outresponisibilities assigned to me.

(ii)Organisational stressors :



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It consists of the following stressors. (a) Inter role distance stress(IRD): A conflict between

organizational and non organizational roles (b) Role stagnation(RS): it is due to gap between demand to

outgrow his previous role and to occupy new role efficiently

Role expectation conflict(REC): It is created by differentexpectations by different significant persons about the same role

(d) Role erosion(RE): when occupants feel that the some of theroles belonging to him or her is given to others

(e) Role overload(RO): when there are too many expectations fromthe significant roles in this role set, he experiences overload

(f) Role isolation(RI): it refers to the psychological distancebetween the occupants role and other roles in the same role set

(g) Personal inadequacy: (PI): when a person feels that he does nothave the necessary skills and training for effectively performingthe functions expected of his role.

(h) Self role distance(SRD): in case , a person goes against his self concept, then he experiences this type of stress

(i)Role ambiguity(RA): it is nothing but want of clarity about the expectations of arole which may arise out of lack of information or understanding

(j) Resource inadequacy(Rin): when the role occupants feels that he is not provided withadequate resources for the functions expected of his role

In the above ten, the higher the score one get, the morerole stress he has, the lower score represents lower stress(iii) Societal Stressors

The society also creates stresses. Every culture teachespeople what is stressful, what is a minor adjustment.

PERSONNEL OFFICE MANAGEMENT

FUNCTIONS

Liason with Government departments Implementation of companys terms and conditions of employment Office correspondence Maintenance of personnel records Personnel reports Attendance and salary

Time recording Merit rating Labour-management relations Grievance handling Public Relations In-house magazines



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ORGANISATION & METHODS

Determination of organizational goals Determination of task requirements Division of tasks into jobs

Integration of jobs into departments Selection of personnel Assignment of work positions to individuals Granting authority Determination of superior-subordinate relationship

MAINTANENCE OF PERSONNEL RECORDS

A record is a piece of writing or a chart which provides ready information andwhich preserves evidence for future reference or use.

Records are needed To supply information required by government agencies To conduct research in industrial relations To prepare training and development programs To review and revise pay scales To keep and maintain up-to-date data

A good record should be clear about the following:

The objectives for which it is maintained should be clearly stated It should be consistent with the requirements for which it is

maintained Maintenance should not be costly It should be periodically reviewed Information should be easily accessible Duplication of entries should be avoided. A responsible person should maintain the records

END OF UNIT IV



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UNIT V

TIME MANAGEMENT

IMPORTANCE OF TIME FACTOR

Time once lost is lost Increase in work pressure More information requirement Family, social and networking pressures

TIME WASTERS

Sl. No. Time wasters Overcoming techniques

1. Procrastination Planning, listing steps, setting deadlines, commitment2. Interruption Using multiple communication system, straight

communication, filtering visitors3. Lack of

concentration

Resolve problems, concentrate one job at a time, remove

distractions4. Unnecessarymeetings

Set deadlines

5. Too many reports,rules, junk mails

Granting authority, job enrichment, use of spamdetection software

PRIORITISING

Break the tasks into essential, necessary, non-essential tasks



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Essential Important tasks which one must do by himself/herselfNecessary Tasks to be done but can be delegated to reliable personsNon-essentials Tasks that can be done during spare time

WORK SCHEDULING

1. Keeping a daily routine 4. Concentrating on one task at a time2. Breaking jobs into manageable units 5. Planning tasks in advance3. Aim for high standards, not perfection

FUNCTIONS OF TIME OFFICE

Recording the in-time and out-time of employees and materials Passing on reports to higher officials Managing visitors Alarming necessary timings (shift start/end, breaks, etc)

FLEXIBLE WORK ARRANGEMENTS (FLEXITIME)

Followed when the jobs are independent and no close supervision is required Normally followed in IT and ITeS companies If dependency of higher authorities are more, work may shared between two

personsEND OF UNIT V

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Human Resources Management Unit – i Introduction