MBA 028(SOULTION)Managing Human Resources(2011-12)
SECTION A1.Attempt all questionsANSWER A) Key Differences
Between Personnel Management and Human Resource ManagementThe
following are the major differences between Personnel Management
and Human Resource Management:1. The part of management that deals
with the work force within the enterprise is known as Personnel
Management. The branch of management, whichfocuses on the best
possible use of the enterprises man power is known as Human
Resource Management.2. Personnel Management treats workers as tools
or machines whereas Human Resource Management treats it as an
important asset of the organization.3. Human Resource Management is
the advanced version of Personnel Management.4. Decision Making is
generally slow in Personnel Management but the same is
comparatively fast in Human Resource Management.5. In Personnel
Management there is a piecemeal distribution of initiatives.
However, integrated distribution of initiatives is there in Human
ResourceManagement.6. In Personnel Management, the basis of job
design is the division of work while, in the case of Human Resource
Management, employees are divided intogroups or teams for
performing any task.7. In PM, the negotiations are based on
collective bargaining with the union leader. Conversely, in HRM,
there is no need for collective bargaining asindividual contracts
exist with each employee.8. In PM, the pay is based on job
evaluation. Unlike HRM, where the basis of pay is performance
evaluation.ANSWER B) Human Resource DevelopmentHuman Resource
Development isthe part ofhuman resource managementthat specifically
deals withtraining and developmentof the employees in the
organization.Human resource development includes training a person
after he or she is first hired, providing opportunities to learn
new skills, distributing resources that are beneficial for the
employee's tasks, and any other developmental activities.ANSWER C)
Job Description and Job SpecificationBoth job description and job
specification are essential parts of job analysis information.
Writing them clearly and accurately helps organization and workers
cope with many challenges while onboard.
ANSWER D) The 360 evaluation feedback method was first used in
the 1940s. Analogous to the multiple points on a compass, the 360
method provides each employee the opportunity to receive
performance feedback from his or her supervisor, peers, staff
members, co-workers and customers.360-degree feedback or
multi-source feedback is an appraisal or performance assessment
tool that incorporates feedback from all who observe and are
affected by the performance of a candidate.
ANSWER E) Fringe benefits are forms of compensation you provide
to employees outside of a stated wage or salary. Common examples of
fringe benefits includemedicalanddental insurance, use of a company
car,housing allowance, educational assistance,vacationpay,sickpay,
meals and employee discounts.ANSWER F) Grievance is formal
complaint which demonstrates any kind of dissatisfaction in an
employee, arising out of the factors which are related to his
job.The important steps in grievance handling procedure are:
i.) Accepting the grievance and acknowledging itii.) Carefully
listening the problemiii.) Understanding the redefining the problem
to ensure that both the parties are at the same level of
understandingiv.) Gathering the information all facts and figures
.vi.) Offering the best solutionvii.) Follow upANSWER G) Fair
WagesA fair wage is something more than the minimum wages. Fair
wage is a mean between the living wage and the minimum wage. While
the lower limit of the fair wage must obviously be the minimum
wage, the upper limit is the capacity of the industry to pay fair
wage compares reasonably with the average payment of similar task
in other trades or occupations requiring the same amount of
ability. Fair wage depends on the present economic position as well
as on its future prospects. Thus the fair wages depends upon the
following factors :(1) Minimum Wages(2) Capacity of the industry to
pay(3) Prevailing rates of wages in the same or similar occupations
in the same or neighbouring localities(4) Productivity of labour(5)
Level of national income and its distribution.(6) The place of the
industry in the economy of the country.ANSWER H) Voluntary
retirement scheme is a method used by companies to reduce surplus
staff. This mode has come about in India as labour laws do not
permit direct retrenchment of unionized employees.VRS applies to an
employee who has completed 10 years of service or is above 40 years
of age. ?It should apply to all employees (by whatever name
called), including workers and executives of a company or of an
authority or of a co-operative society, excepting directors of a
company or a co-operative society.ANSWER I) It is a blank form in
which we can collect the required information from the applicant.
The content of application blanks are:
Personal Data (Address, contact number, etc)
Marital Data
Educational details.
Experience details.
Extracurricular activities.
References.ANSWER J) Advantages of External SourcesThe benefits
/ merits / advantages of using external sources of recruitment:- It
encourages young blood with new ideas to enter the organisation. It
offers wide scope for selection. This is because a large number of
suitable candidates will come for the selection process. There are
less chances of bias or partiality. Here there is no need to
maintain confidential records.
SECTION BANSWER 2. ANSWER A) The evolution ofhuman
resourcemanagement as a distinct profession dates back to the
industrial revolution when factories established personnel
departments to look into wages and welfare of workers.To understand
the evolution ofHuman ResourceManagement, one must first understand
its basis.The origins of workforce management lies in the
arrangements made for the welfare of apprenticesworking with the
master craftsmen in the putting out system that prevailed during
the medieval ages. The industrial revolution that led to the
establishment of factories displaced the putting out system.The
workers in the early factories faced long hours of works under
extremely unhygienic conditions, and mostly lived in slums. This
soon resulted in several labor riots, the most famous being Ludds
riots of 1811 in Nottingham, England, precipitated by reduced
wages. The government soon intervened to provide basic rights and
protections for workers, and the need to comply with such statutory
regulations forced factory owners to set up a formal mechanism to
look into workers wages and welfare, and redress other issues
concerning labor. This led to the emergence ofPersonnel
Managementas a distinct profession.ThePersonnel
ManagementApproachThePersonnel Managementapproach that remained in
vogue for much of the 20th Century remained administrative in
nature. Arising out of the need to enforce statutory compliance, it
concerned itself primarily with employee record keeping adherence
to the stated policies while implementing functions such
asrecruitment, training and wage administration taking welfare
oriented measures such as providing medical care, vaccinations,
housing facilities and the like attempting toincrease
productivitythrough wage increases and training, and enforcement of
standards derived from work studies influenced by the scientific
management approach promulgated by Frederick Taylor and the like
dealing with trade unions and trying to solve industrial disputes
throughcollective bargainingand other industrial relations
approaches. conducting performance appraisals or reportcardof past
performance to determine pay and promotions The Personnel
Management approach tried to convince workers of the business
interests, and convince management of workers interest and social
obligations. It rarely had a direct say in the companys strategy
and did not involved itself with operations aspects, remaining a
purely staff function. The Traditional Human Resource ApproachThe
latter decades of the twentieth century saw the winds
ofchangestarting to affect the personnel management profession.
Elton Mayos Hawthorne Studies had debunked Taylors Scientific
Management approach toward productivity increase, and established
that the major drivers of productivity and motivation were
non-monetary factors. A host of new theories emerged based on this
newbehavioral perspective. Some of the popular theories that struck
ground was Douglas McGregors Theory X and Theory Y, Abraham Maslows
hierarchy of needs theory that recognized the concept of
individuals aspiring to reach a state of self actualization, Victor
Vrooms Expectation Theory, Alderfers ERG Theory, and more.
Government interventions led to the enactment of new legislations
that guaranteed workers more rights.
What is the difference between HRD and HRM?HRD and HRM are both
practices that deal with human resources of a company. Usually in
large organizations, there exists entire departments dedicated to
HRM where trained professionals work together solely towards the
amelioration of this aspect, dealing with both HRD and HRM
functions.HRD is human resource development. HRM is human resource
management. HRD deals with functions such as performance
development and management, training, career development,
mentoring, coaching, succession planning, tuition assistance, key
employee identification, etc. HRM deals with functions such as
employee training, recruitment, performance appraisals as well as
duly rewarding the employees. HRD is a part of HRM. HRM deals with
all HR initiatives while HRD only deals with the development
factor. HRM functions are more formal than of HRD functions.
ANSWER B)AHRIS, or Human Resource Information System, is a
software solution for small to mid-sized businesses to help
automate and manage their HR, payroll, management and accounting
activities.A HRIS generally should provide the capability tomore
effectively plan, control and manage HR costs; achieve improved
efficiency and quality in HR decision making; and improve employee
and managerial productivity and effectiveness.A HRIS offers HR,
payroll, benefits, training, recruiting and compliance
solutionsMost are flexibly designed with integrated databases, a
comprehensive array of features, and powerful reporting functions
and analysis capabilities that you need to manage your workforce.
This can give back hours of the HR administrators day previously
spent attending to routine employee requests.AHRIS also facilitates
communication processesand saves paper by providing an
easily-accessible, centralized location for company policies,
announcements, and links to external URLs. Employee activities such
as time-off requests and W-4 form changes can be automated,
resulting in faster approvals and less paperwork.An affordable
Human Resource Information System (HRIS), for example Sage HRMSs
e-capabilities,allows companies to manage their workforcethrough
two powerful main components:HR&Payroll. In addition to these
essential software solutions, HRIS offers other options to help
companies understand and fully utilize their workforces collective
skills, talents, and experiences.Some of the most popular modules
are: Organization charts(Create professional looking, dynamic
organization charts) Employee self service(Employees can update
personal information and view benefits elections, absence
transactions, time-off balances and payroll information) Benefits
Administration(Save paper and postage, take weeks off the benefits
open enrollment period, reduce administration time, and improve
data accuracy) Track training for employeesSelecting the right HRIS
is important. Your company will need to make sure that they can
customize the system to meet its specific and unique needs and that
it is a system that will grow with your company.
ANSWER C)Training an erudition process that embroils the
procurement of knowledge, honing of skills, rubrics, or change in
insolences and components to enhance the employees
performance.Difference between Training and
Development?Training:The emphasis of training is on the development
of skills. Training is about divulging new information and making
us cognizant on how to make use of the information. Training is
also hooked on to the awareness of the trainer.
Development:Development is an incessant, general and vigorous
expansion of skills and knowledge. Development is targeted at
long-term career growth rather than instantaneous
performance.Explain following job training methods:a. Coaching The
goal of coaching is to improve the performance of the employee.
Coaching focuses on the individual needs of an employee and is
considered to be less formal than any other type of training.
b. Mentoring There is a very thin line to differentiate between
coaching and mentoring. Where coaching is done online, mentoring is
done offline and is just a help offered by one person to another in
carrying out the work without any hurdles.
c. Job rotation Job rotation is usually done to give an enlarged
perspective of the business or to give global opportunities to the
employee. It is mostly used for junior employees who can
prospectively replace senior level employees.
d. Job Instruction Technique This training method focuses on
knowledge, skills and attitude development. It consists of 4
steps,
i. Plan Making the trainer aware of the kind of work you
carry.ii. Present the trainer presents the synopsis as well as the
different aspects of the workiii. Trial You actually step into the
shoes of the other person and perform the chores to gain practical
experience before taking over completelyiv. Follow up the trainer
follows up with the employee so as to avoid any kind of mistakes
made by the trainee. The need for Training and DevelopmentBefore we
say that technology is responsible for increased need of training
inputs to employees, it is important to understand that there are
other factors too that contribute to the latter. Training is also
necessary for the individual development and progress of the
employee, which motivates him to work for a certain organisation
apart from just money. We also require training update employees of
the market trends, the change in the employment policies and other
things.The following are the two biggest factors that contribute to
the increased need to training and development in organisations:1.
Change:The word change encapsulates almost everything. It is one of
the biggest factors that contribute to the need of training and
development. There is in fact a direct relationship between the
two. Change leads to the need for training and development and
training and development leads to individual and organisational
change, and the cycle goes on and on. More specifically it is the
technology that is driving the need; changing the way how
businesses function, compete and deliver.2. Development:It is again
one the strong reasons for training and development becoming all
the more important. Money is not the sole motivator at work and
this is especially very true for the 21st century. People who work
with organisations seek more than just employment out of their
work; they look at holistic development of self. Spirituality and
self awareness for example are gaining momentum world over. People
seek happiness at jobs which may not be possible unless an
individual is aware of the self. At ford, for example, an
individual can enrol himself / herself in a course on self
awareness, which apparently seems inconsequential to ones
performance at work but contributes to the spiritual well being of
an individual which is all the more important.The critical question
however remains the implications and the contribution of training
and development to the bottom line of organisations performance. To
assume a leadership position in the market space, an organisation
will need to emphasise on the kind of programs they use to
improvise performance and productivity and not just how much they
simply spend on learning!ANSWER D)Amonetarygiftprovided to
anemployeebased onperformance, which is thought of as one way
toenticethe employee to continue delivering positiveresults.
Incentive pay may come in theformof abonus, profit-sharing,
orcommission.PRE-REQUISITES OF EFFECTIVE INCENTIVE SYSTEM
All things considered, it may be concluded that in many
industries or undertakings and for a large group of operations,
well-designed systems of payment by results shall yield advantages
to all concerned. Many of these advantages will be realized
provided sufficient safeguards are provided. Such p re-requisites
are:
1. The co-operation of workers in the implementation of an
incentive scheme is essential because the employees somehow devise,
if they do not like a scheme, ingenious ways of evading or
sabotaging the plan, often with the tacit connivance of the foreman
or supervisor,'' Workers' co-operation may be secured through
proper discussion with their representatives. In particular,
workers' co-operation is necessary in:(i) The methods followed in
measuring the results or output upon which payment is based;
(ii) The methods followed in setting wage rates for different
classes of work; and
(iii) Appropriate safeguards concerning earnings, job security
and settlement of disputes over piece-work rates and allotted
time.
2. The scheme must be based on scientific work measurement. The
standards set must be realistic and must motivate workers to put in
better performance. Workers must be provided with necessary tools,
equipment and materials so as to enable them reach their
standards.
3. Indirect workers, such as supervisors, foremen, charge hands,
helpers, crane operators, canteen staff, store keepers, and
clerical staff should also be covered by incentive schemes.
4. There should be management commitment to the cost and time
necessary to administer incentive schemes properly, and these must
be carefully assessed before embarking on an incentive programme.
There are many situations in which the potential gains are just not
worth the cost and effort involved.
5. There is greater need for planning. Many incentive schemes,
started hurriedly, planned carelessly, and implemented
indifferently have failed and have created more problems for the
organisation than they have tried to solve.
6. The other safeguards are:
(i) The incentive scheme should be appropriate to the type of
work carried out and the workers employed.
(ii) The reward should be clearly and closely linked 10 the
efforts of the individual or group.
(iii) Individuals or groups should be able to calculate the
reward they get at each of the levels of output they are capable of
achieving.
(iv) Individuals or groups should have a reasonable amount of
control over their efforts and therefore their rewards.
(v) The scheme should operate by means of a well-defined and
easily- understood formula.
(vi) The scheme should be properly installed and maintained,
(vii) Provisions should be made for controlling the amounts
paid, to en- sure that they are proportionate to effort.
(viii) Provisions should be made for amending rates in defined
circumstances
(ix) Create incentives for performance and disincentives for
non-performance.
(x) Set and review specific objectives for each employee
periodically.Advertisements
ANSWER E)promotion and what are the bases of promotionIt is the
rising movement of an employee from current job to another, i.e.
higher pay scale, more responsibility and at higher organizational
level. There may be DRY PROMOTION, in which an employee is promoted
at higher level job without increase in pay. Promotion is a
motivational tool for the employees.
Promotion may be on two bases:
Merit based promotion: when the promotion takes place on the
basis of an employees performance in the current job. It is done on
the basis of his skills, knowledge and ability.
Seniority based promotion: Here the employee who has given the
long service in the organization gets promoted. There is no scope
for favoritism.In simpler terms, promotion refers to upward
movement in present job leading to greater responsibilities, higher
status and better salary. Promotion may be temporary or permanent
depending upon the organizational requirement. According to
Clothier and Spriegel,
promotion is the transfer of an employee to a job which pays
more money or one that carries some preferred status.
In the corporate sector employee promotions doesn't make much
difference as that of in government sector. In the government the
wordpromotionis the ultimate desire for an employee for the service
rendered by him in the organisation and this is the only way for an
employee career development in the government sector. Promotion is
the ultimate motivating factor for any employee because moves
employee forward in hierarchy of concern organisation added with
additional responsibility, higher respect, honour, with increase in
grade pay and allowances.In countries like India, employee
promotions are withhold by employers if any enquiry is pending on
concerned employee due to his disobedience of duties or misuse of
his powers especially in government departments. Until clearance of
enquiry pending before COMPETENT AUTHORITY on concerned employee
promotion will not be given. It is the responsibility of employee
on whom enquiries pending should prove his innocence before
concerned competent authority.
Employers should not show any discrimination between men and
women with regard to promotion according to section 5 of Equal
Remuneration Act, 1976.Purpose and Advantages of Promotion
Promotion stimulates self-development and creates interest in
the job. According toYoder,promotion provides incentive to
initiative, enterprise and ambition; minimizes discontent and
unrest; attracts capable individuals; necessitates logical training
for advancement and forms an effective reward for loyalty and
cooperation, long service etc. The purposes and advantages of
promotions are to: recognize employees performance and commitment
andmotivate him towards better performance; develop competitive
spirit among employees for acquiring knowledge and skills for
higher level jobs; retain skilled and talented employees; reduce
discontent and unrest; To fill up job's vacant position that is
created due to retirement, resignation or demise of an employee.In
this case next senior employee will be promoted to the vacant job.
utilize more effectively the knowledge and skills of employees; and
attract suitable and competent employees.SECTION CANSWER 3Functions
of Human Resource ManagersThe goal of a human resource manager is
to strengthen the employer-employee relationship. This goal is
supported by a variety of functions within the human resources
department and throughout the organization. In a small business,
the human resource manager may have a great degree of latitude, as
well as the time to devote to employee interaction with a small
workforce. Both of these are key elements of an effective human
resources leader, although she must accomplish a number of
functions to achieve this goal.Manage HR DepartmentThe manager of
the human resources department is responsible for ensuring that
department employees are well-versed in their areas of expertise.
The various disciplines of HR require expertise in compensation,
benefits, safety, payroll, recruiting and training. Ideally, the
human resource manager is a generalist, which means his expertise
is cross-discipline. An article on the All Business website titled
Should Your Office Manager Also Handle HR Duties? cautions small
businesses to reconsider a decision to combine two roles into one,
such as the office manager and the human resource manager. A
thousand things can go wrong if this individual is not aware of the
potential liabilities inherent in HR management, the article
warns.Knowledge of LawsManaging the human resources department also
requires knowledge of federal and state employment and labor laws
and regulations that apply to human resources professionals. For
example, the human resource manager will designate the HIPAA
(Health Insurance Portability and Accountability Act) officer in
charge of all medical and health-related records for the
workplace.Interaction With Executive LeadershipAn effective human
resource manager is in constant communication with executive
leadership. The HR department is not a revenue-generating source.
Consequently, it is important for an organizations leaders to
understand the return on investment (ROI) in human resources
activities as a contribution to the companys bottom line. In a
small business, the ROI may be more readily seen than in a large
conglomerate. The human resource manager for a small business, and
thus a smaller workforce, can easily implement methods and
strategies that may show faster results. The bureaucratic hierarchy
of a large organization often puts many more layers of authority
between the human resource manager and executive
leadership.Employee RelationsA human resource manager who stays in
her office all day will not be effective at building strong
relationships with employees. Another function of the human
resource manager is to gain the trust and confidence of
employees--the best way to establish trust and confidence is
through daily interaction with the workforce. According to the U.S.
Bureau of Labor Statistics, Human resources occupations require
strong interpersonal skills. Again, with a smaller workforce, the
results of an HR manager's interpersonal skills may be seen more
quickly than in a large organization. Employee relations is a large
part of the human resources managers job function, because employee
concerns encompass a wide range of issues over which the manager
has influence. The human resource manager is the face of HR and
therefore relied upon to be both human resources expert and
employee advocate.
ORHuman Resource Management:Human Resource Management has come
to be recognized as an inherent part of management, which is
concerned with the human resources of an organization. Its
objective is the maintenance of better human relations in the
organization by the development, application and evaluation of
policies, procedures and programs relating to human resources to
optimize their contribution towards the realization of
organizational objectives.
In other words, HRM is concerned with getting better results
with the collaboration of people. It is an integral but distinctive
part of management, concerned with people at work and their
relationships within the enterprise. HRM helps in attaining maximum
individual development, desirable working relationship between
employees and employers, employees and employees, and effective
modeling of human resources as contrasted with physical resources.
It is the recruitment, selection, development, utilization,
compensation and motivation of human resources by the organization.
HRM vs Strategic HRMHRM is Human Resources Management which is a
strategic approach to themanagementof employees. HRM involves the
process of employing people, developing their skills/capacities,
and utilizing their services. But today, HRM has come across many
changes, and the latest one is the Strategic HRM which is the most
powerful idea currently. Strategic HRM can be termed as a branch of
HRM.In HRM, traditional methods are followed. Traditional methods
means the selection or recruitment process and imparting training.
This HRM process did not have any specific rules for different
areas like recruitment, training, and utilizing the services. This
is what makes the Strategic HRM different from HRM. In Strategic
HRM, there are specific rules specified for specialized fields.In
HRM, there are no separate people for different areas whereas in
Strategic HRM there are different people who are skilled in
specific areas. It is not that the same persons will handle
recruitment, training, and employee appraisal.As the term itself
denotes, Strategic HRM deals with strategic aspects of HRM. Unlike
HRM, Strategic HRM mainly focuses on the programs with long-term
objectives. Though HRM and Strategic HRM focus on increasing
employee productivity, Strategic HRM uses many strategic
methods.Unlike the traditional HRM, Strategic HRM uses more
sophisticated methods for improving overall employee motivation and
productivity. Unlike the traditional HRM, Strategic HRM uses more
systematic tools.While the traditional HRM focuses mainly on
employee relations, Startegic HRM focuses on partnerships with
internal and external customers. When HRM has only short-term
goals, Strategic HRM has long-term goals.When considering job
design, there is a tight division of labor and independence
specialization in HRM. On the other hand, the job division in
Strategic HRM is flexible. When HRM has staff specialists,
Strategic HRM has line managers.Summary:1. HRM involves the process
of employing people, developing their skills/capacities, and
utilizing their services. Strategic HRM can be termed as a branch
of HRM.2. While traditional HRM focuses mainly on employee
relations, Startegic HRM focuses on partnerships with internal and
external customers.3. When HRM has only short-term goals, Strategic
HRM is for long-term goals.4. When HRM has staff specialists,
Strategic HTM has line managers.5. When considering job design,
there is a tight division of labor and independence specialization
in HRM. On the other hand, job division in Strategic HRM is
flexible.
ANSWER 4.Manpower Planning which is also called as Human
Resource Planning consists of putting right number of people, right
kind of people at the right place, right time, doing the right
things for which they are suited for the achievement of goals of
the organization. Human Resource Planning has got an important
place in the arena of industrialization. Human Resource Planning
has to be a systems approach and is carried out in a set procedure.
The procedure is as follows:1. Analysing the current manpower
inventory2. Making future manpower forecasts3. Developing
employment programmesImportance of Manpower Planning
1. Key to managerial functions-The four managerial functions,
i.e., planning, organizing, directing and controlling are based
upon the manpower. Human resources help in the implementation of
all these managerial activities. Therefore, staffing becomes a key
to all managerial functions.2. Efficient utilization-Efficient
management of personnels becomes an important function in the
industrialization world of today. Seting of large scale enterprises
require management of large scale manpower. It can be effectively
done through staffing function.3. Motivation-Staffing function not
only includes putting right men on right job, but it also comprises
of motivational programmes, i.e., incentive plans to be framed for
further participation and employment of employees in a concern.
Therefore, all types of incentive plans becomes an integral part of
staffing function.4. Better human relations-A concern can stabilize
itself if human relations develop and are strong. Human relations
become strong trough effective control, clear communication,
effective supervision and leadership in a concern. Staffing
function also looks after training and development of the work
force which leads to co-operation and better human relations.5.
Higher productivity-Productivity level increases when resources are
utilized in best possible manner. higher productivity is a result
of minimum wastage of time, money, efforts and energies. This is
possible through the staffing and it's related activities (
Performance appraisal, training and development, remuneration)Steps
in Manpower Planning1. Analysing the current manpower
inventory-Before a manager makes forecast of future manpower, the
current manpower status has to be analysed. For this the following
things have to be noted- Type of organization Number of departments
Number and quantity of such departments Employees in these work
unitsOnce these factors are registered by a manager, he goes for
the future forecasting.
2. Making future manpower forecasts-Once the factors affecting
the future manpower forecasts are known, planning can be done for
the future manpower requirements in several work units.The Manpower
forecasting techniques commonly employed by the organizations are
as follows:i. Expert Forecasts:This includes informal decisions,
formal expert surveys and Delphi technique.ii. Trend
Analysis:Manpower needs can be projected through extrapolation
(projecting past trends), indexation (using base year as basis),
and statistical analysis (central tendency measure).iii. Work Load
Analysis:It is dependent upon the nature of work load in a
department, in a branch or in a division.iv. Work Force
Analysis:Whenever production and time period has to be analysed,
due allowances have to be made for getting net manpower
requirements.v. Other methods:Several Mathematical models, with the
aid of computers are used to forecast manpower needs, like budget
and planning analysis, regression, new venture analysis.3.
Developing employment programmes-Once the current inventory is
compared with future forecasts, the employment programmes can be
framed and developed accordingly, which will include recruitment,
selection procedures and placement plans.4. Design training
programmes-These will be based upon extent of diversification,
expansion plans, development programmes,etc. Training programmes
depend upon the extent of improvement in technology and advancement
to take place. It is also done to improve upon the skills,
capabilities, knowledge of the workers.ORSelection: Meaning and
Steps Involved in Selection Procedure!Finding the interested
candidates who have submitted their profiles for a particular job
is the process of recruitment, and choosing the best and most
suitable candidates among them is the process of selection. It
results in elimination of unsuitable candidates. It follows
scientific techniques for the appropriate choice of a person for
the job.The recruitment process has a wide coverage as it collects
the applications of interested candidates, whereas the selection
process narrows down the scope and becomes specific when it selects
the suitable candidates.Stone defines, Selection is the process of
differentiating between applicants in order to identify (and hire)
those with a greater likelihood of success in a job.Steps Involved
in Selection Procedure:A scientific and logical selection procedure
leads to scientific selection of candidates. The criterion
finalized for selecting a candidate for a particular job varies
from company to company.Therefore, the selection procedure followed
by different organizations, many times, becomes lengthy as it is a
question of getting the most suitable candidates for which various
tests are to be done and interviews to be taken. The procedure for
selection should be systematic so that it does not leave any scope
for confusions and doubts about the choice of the selected
candidate (Figure 5.6).
Brief details of the various steps in selection procedure are
given as follows:1. Inviting applications:The prospective
candidates from within the organization or outside the organization
are called for applying for the post. Detailed job description and
job specification are provided in the advertisement for the job. It
attracts a large number of candidates from various areas.2.
Receiving applications:Detailed applications are collected from the
candidates which provide the necessary information about personal
and professional details of a person. These applications facilitate
analysis and comparison of the candidates.3. Scrutiny of
applications:As the limit of the period within which the company is
supposed to receive applications ends, the applications are sorted
out. Incomplete applications get rejected; applicants with
un-matching job specifications are also rejected.4. Written
tests:As the final list of candidates becomes ready after the
scrutiny of applications, the written test is conducted. This test
is conducted for understanding the technical knowledge, attitude
and interest of the candidates. This process is useful when the
number of applicants is large.Many times, a second chance is given
to candidates to prove themselves by conducting another written
test.5. Psychological tests:These tests are conducted individually
and they help for finding out the individual quality and skill of a
person. The types of psychological tests are aptitude test,
intelligence test, synthetic test and personality test6. Personal
interview:Candidates proving themselves successful through tests
are interviewed personally. The interviewers may be individual or a
panel. It generally involves officers from the top management.The
candidates are asked several questions about their experience on
another job, their family background, their interests, etc. They
are supposed to describe their expectations from the said job.
Their strengths and weaknesses are identified and noted by the
interviewers which help them to take the final decision of
selection.7. Reference check:Generally, at least two references are
asked for by the company from the candidate. Reference check is a
type of crosscheck for the information provided by the candidate
through their application form and during the interviews.8. Medical
examination:Physical strength and fitness of a candidate is must
before they takes up the job. In-spite of good performance in tests
and interviews, candidates can be rejected on the basis of their
ill health.
9. Final selection:At this step, the candidate is given the
appointment letter to join the organization on a particular date.
The appointment letter specifies the post, title, salary and terms
of employment. Generally, initial appointment is on probation and
after specific time period it becomes permanent.10. Placement:This
is a final step. A suitable job is allocated to the appointed
candidate so that they can get the whole idea about the nature of
the job. They can get adjusted to the job and perform well in
future with all capacities and strengths.ANSWER 5Compensation
management is one of the most challenging human resource areas
because it contains many elements and has a far-reaching effect on
the organisation's goals. The purpose of providing compensation is
to attract, retain and motivate employees. There are two main types
of financial compensation.
1. Direct financial compensation- the pay that a worker receives
as wages, salaries, commissions and bonuses, and2. Indirect
financial compensation- all financial rewards that are not included
in direct compensation (i.e. benefits).An example ofdirect
financialcompensationis the money the worker receives as wages at
the end of the week, or as a salary paid at the end of the month.
Many companies pay salaries straight into the employee's bank
account.
An example ofindirect financial compensationis when the company
contributes to an employee's housing subsidy or a pension plan.
Not all compensation is financial. A worker can get great
satisfaction from his work and enjoy the environment in which he
works. This is called non-financial compensation and cannot be
counted in terms of money. For example, a veterinarian might enjoy
working outside, going to farms to treat animals and deliver
calves. A publisher might enjoy the challenge of producing books
that will enrich people's lives.
It is not always possible to provide a perfect pay package (the
agreement between the organisation and the employee about how much
money and other benefits the employee will receive). Because of
this, some companies allow their employees to work out their own
compensation packages. India:Central government employees draw more
salary along with benefits than state government employees,
compared with private sector employees. There is a particular pay
structure fixed for every government employee in India which is not
in private companies. The pay structure of government employees in
India is as follows
Employee salary:Basic pay+Grade pay+Dearness Allowance(DA)+House
Rent Allowance (HRA)+City Compensatory Allowance (CCA)
The details of above said components of salary of government
employees are as follows. Basic pay:The primary component of
employee salary which is bases for calculation of other components
in the employee salary. Grade pay:An amount which is fixed by the
government on the range of employee in governmenthierarchy. (for
example; Group A officers have high grade pay than Group B
officers.) Dearness Allowance:Certain percentage of the amount on
basic pay. This percentage varies from state government to Central
government employees.An allowance paid to employees on the basis of
consumer Price index. Consumer price index denotes the cost of the
products which influences by the inflation. (in simple terms cost
of living) At present, 41% is for state government employees and 72
% is for Central government employees as dearness allowance on
their basic pay. House Rent Allowance (HRA):Certain percentage of
the amount on basic pay. This percentage varies from state
government to Central government employees. This allowance is paid
to employees are meeting house rent expenditure. City Compensatory
Allowance (CCA):An allowance paid according to the city or town
where employee do the job and the purpose of this allowance is to
compensate high cost of living especially in cities like Mumbai,
Delhi, Calcutta and Hyderabad et cetera . Government decides the
amount of allowance to be paid to employees on basis of city or
town.OREmployee retention refers to the various policies and
practices which let the employees stick to an organization for a
longer period of time. Every organization invests time and money to
groom a new joinee, make him a corporate ready material and bring
him at par with the existing employees. The organization is
completely at loss when the employees leave their job once they are
fully trained. Employee retention takes into account the various
measures taken so that an individual stays in an organization for
the maximum period of time.Need & Importance of Employee
RetentionLet us understand why retaining a valuable employee is
essential for an organization. Hiring is not an easy process:The HR
Professional shortlists few individuals from a large pool of
talent, conducts preliminary interviews and eventually forwards it
to the respective line managers who further grill them to judge
whether they are fit for the organization or not. Recruiting the
right candidate is a time consuming process. An organization
invests time and money in grooming an individual and make him ready
to work and understand the corporate culture:A new joinee is
completely raw and the management really has to work hard to train
him for his overall development. It is a complete wastage of time
and money when an individual leaves an organization all of a
sudden. The HR has to start the recruitment process all over again
for the same vacancy; a mere duplication of work. Finding a right
employee for an organization is a tedious job and all efforts
simply go waste when the employee leaves. When an individual
resigns from his present organization, it is more likely that he
would join the competitors:In such cases, employees tend to take
all the strategies, policies from the current organization to the
new one. Individuals take all the important data, information and
statistics to their new organization and in some cases even leak
the secrets of the previous organization. To avoid such cases, it
is essential that the new joinee is made to sign a document which
stops him from passing on any information even if he leaves the
organization. Strict policy should be made which prevents the
employees to join the competitors. This is an effective way to
retain the employees. The employees working for a longer period of
time are more familiar with the companys policies, guidelines and
thus they adjust better:They perform better than individuals who
change jobs frequently. Employees who spend a considerable time in
an organization know the organization in and out and thus are in a
position to contribute effectively. Every individual needs time to
adjust with others:One needs time to know his team members well, be
friendly with them and eventually trust them. Organizations are
always benefited when the employees are compatible with each other
and discuss things among themselves to come out with something
beneficial for all. When a new individual replaces an existing
employee, adjustment problems crop up. Individuals find it really
difficult to establish a comfort level with the other person. After
striking a rapport with an existing employee, it is a challenge for
the employees to adjust with someone new and most importantly trust
him. It is a human tendency to compare a new joinee with the
previous employees and always find faults in him. It has been
observed that individuals sticking to an organization for a longer
span are more loyal towards the management and the
organization:They enjoy all kinds of benefits from the organization
and as a result are more attached to it. They hardly badmouth their
organization and always think in favour of the management. For them
the organization comes first and all other things later. It is
essential for the organization to retain the valuable employees
showing potential:Every organization needs hardworking and talented
employees who can really come out with something creative and
different. No organization can survive if all the top performers
quit. It is essential for the organization to retain those
employees who really work hard and are indispensable for the
system.The management must understand the difference between a
valuable employee and an employee who doesnt contribute much to the
organization. Sincere efforts must be made to encourage the
employees so that they stay happy in the current organization and
do not look for a change.ANSWER 6:Concept of Industrial
Relations:The term Industrial Relations comprises of two terms:
Industry and Relations. Industryrefers to any productive activity
in which an individual (or a group of individuals) is (are)
engaged. By relations we mean the relationships that exist within
the industry between the employer and his workmen..The term
industrial relations explains the relationship between employees
and management which stem directly or indirectly from
union-employer relationship.Definitions:The term industrial
relations has been variously defined.J.T. Dunlopdefines industrial
relations as the complex interrelations among managers, workers and
agencies of the governments.According toDale Yoderindustrial
relations is the process of management dealing with one or more
unions with a view to negotiate and subsequently administer
collective bargaining agreement or labour contract.Importance of
Industrial Relations:The healthy industrial relations are key to
the progress and success. Their significance may be discussed as
under Uninterrupted production The most important benefit of
industrial relations is that this ensures continuity of production.
This means, continuous employment for all from manager to workers.
The resources are fully utilized, resulting in the maximum possible
production. There is uninterrupted flow of income for all. Smooth
running of an industry is of vital importance for several other
industries; to other industries if the products are intermediaries
or inputs; to exporters if these are export goods; to consumers and
workers, if these are goods of mass consumption. Reduction in
Industrial Disputes Good industrial relations reduce the industrial
disputes. Disputes are reflections of the failure of basic human
urges or motivations to secure adequate satisfaction or expression
which are fully cured by good industrial relations. Strikes,
lockouts, go-slow tactics, gherao and grievances are some of the
reflections of industrial unrest which do not spring up in an
atmosphere of industrial peace. It helps promoting co-operation and
increasing production. High morale Good industrial relations
improve the morale of the employees. Employees work with great zeal
with the feeling in mind that the interest of employer and
employees is one and the same, i.e. to increase production. Every
worker feels that he is a co-owner of the gains of industry. The
employer in his turn must realize that the gains of industry are
not for him along but they should be shared equallyand generously
with his workers. In other words, complete unity of thought and
action is the main achievement of industrial peace. It increases
the place of workers in the society and their ego is satisfied. It
naturally affects production because mighty co-operative efforts
alone can produce great results. Mental Revolution The main object
of industrial relation is a complete mental revolution of workers
and employees. The industrial peace lies ultimately in a
transformed outlook on the part of both. It is the business of
leadership in the ranks of workers, employees and Government to
work out a new relationship in consonance with a spirit of true
democracy. Both should think themselves as partners of the industry
and the role of workers in such a partnership should be recognized.
On the other hand, workers must recognize employers authority. It
will naturally have impact on production because they recognize the
interest of each other. Reduced Wastage Good industrial relations
are maintained on the basis of cooperation and recognition of each
other. It will help increase production. Wastage of man, material
and machines are reduced to the minimum and thus national interest
is protected.Thus, it is evident that good industrial relations is
the basis of higher production with minimum cost and higher
profits. It also results in increased efficiency of workers. New
and new projects may be introduced for the welfare of the workers
and to promote the morale of the people at work. An economy
organized for planned production and distribution, aiming at the
realization of social justice and welfare of the massage can
function effectively only in an atmosphere of industrial peace. If
the twin objectives of rapid national development and increased
social justice are to be achieved, there must be harmonious
relationship between management and labor.Objectives of Industrial
Relations:The main objectives of industrial relations system are:-
To safeguard the interest of labor and management by securing the
highest level of mutual understanding and good-will among all those
sections in the industry which participate in the process of
production. To avoid industrial conflict or strife and develop
harmonious relations, which are an essential factor in the
productivity of workers and the industrial progress of a country.
To raise productivity to a higher level in an era of full
employment by lessening the tendency to high turnover and frequency
absenteeism. To establish and promote the growth of an industrial
democracy based on labor partnership in the sharing of profits and
of managerial decisions, so that ban individuals personality may
grow its full stature for the benefit of the industry and of the
country as well. To eliminate or minimize the number of strikes,
lockouts and gheraos by providing reasonable wages, improved living
and working conditions, said fringe benefits. To improve the
economic conditions of workers in the existing state of industrial
managements and political government. Socialization of industries
by making the state itself a major employer Vesting of a
proprietary interest of the workers in the industries in which they
are employed. ORGrievance means any type of dissatisfaction or
discontentments arising out of factors related to an employees job
which he thinks are unfair. A grievance arises when an employee
feels that something has happened or is happening to him which he
thinks is unfair, unjust or inequitable. In an organization, a
grievance may arise due to several factors such as:1. Violation of
managements responsibility such as poor working conditions2.
Violation of companys rules and regulations3. Violation of labor
laws4. Violation of natural rules of justice such as unfair
treatment in promotion, etc.Various sources of grievance may be
categorized under three heads: (i) management policies, (ii)
working conditions, and (iii) personal factors
1.Grievance resulting from management policies include: Wage
rates Leave policy Overtime Lack of career planning Role conflicts
Lack of regard for collective agreement Disparity between skill of
worker and job responsibility2. Grievance resulting from working
conditions include: Poor safety and bad physical conditions
Unavailability of tools and proper machinery Negative approach to
discipline Unrealistic targets3. Grievance resulting from
inter-personal factors include Poor relationships with team members
Autocratic leadership style of superiors Poor relations with
seniors Conflicts with peers and colleaguesGrievance Procedure
Grievance procedure is a Step by step process an employee must
follow to get his or her complaint addressed satisfactorily. In
this process, the formal (written) complaint moves from one level
of authority (of the firm and the union) to the next higher
level.
Grievance procedure is a formal communication between an
employee and the management designed for the settlement of a
grievance. The grievance procedures differ from organization to
organization.
1. Open door policy2. Step-ladder policyOpen door policy: Under
this policy, the aggrieved employee is free to meet the top
executives of the organization and get his grievances redressed.
Such a policy works well only in small organizations. However, in
bigger organizations, top management executives are usually busy
with other concerned matters of the company. Moreover, it is
believed that open door policy is suitable for executives;
operational employees may feel shy to go to top management.
Step ladder policy: Under this policy, the aggrieved employee
has to follow a step by step procedure for getting his grievance
redressed. In this procedure, whenever an employee is confronted
with a grievance, he presents his problem to his immediate
supervisor. If the employee is not satisfied with superiors
decision, then he discusses his grievance with the departmental
head. The departmental head discusses the problem with joint
grievance committees to find a solution. However, if the committee
also fails to redress the grievance, then it may be referred to
chief executive. If the chief executive also fails to redress the
grievance, then such a grievance is referred to voluntary
arbitration where the award of arbitrator is binding on both the
parties.GRIEVANCE PROCEDURE IN INDIAN INDUSTRY
The 15th session of Indian Labor Conference held in 1957
emphasized the need of an established grievance procedure for the
country which would be acceptable to unions as well as to
management. In the 16th session of Indian Labor Conference, a model
for grievance procedure was drawn up. This model helps in creation
of grievance machinery. According to it, workers representatives
are to be elected for a department or their union is to nominate
them. Management has to specify the persons in each department who
are to be approached first and the departmental heads who are
supposed to be approached in the second step. The Model Grievance
Procedure specifies the details of all the steps that are to be
followed while redressing grievances. These steps are:
STEP 1:In the first step the grievance is to be submitted to
departmental representative, who is a representative of management.
He has to give his answer within 48 hours.
STEP 2:If the departmental representative fails to provide a
solution, the aggrieved employee can take his grievance to head of
the department, who has to give his decision within 3 days.
STEP 3:If the aggrieved employee is not satisfied with the
decision of departmental head, he can take the grievance to
Grievance Committee. The Grievance Committee makes its
recommendations to the manager within 7 days in the form of a
report. The final decision of the management on the report of
Grievance Committee must be communicated to the aggrieved employee
within three days of the receipt of report. An appeal for revision
of final decision can be made by the worker if he is not satisfied
with it. The management must communicate its decision to the worker
within 7 days.
STEP 4:If the grievance still remains unsettled, the case may be
referred to voluntary arbitration.
ANSWER 7:SHORT NOTES:i)Internal sources of Recruitment
(A) Internal Sources:Best employees can be found within the
organisation When a vacancy arises in the organisation, it may be
given to an employee who is already on the pay-roll. Internal
sources include promotion, transfer and in certain cases demotion.
When a higher post is given to a deserving employee, it motivates
all other employees of the organisation to work hard. The employees
can be informed of such a vacancy by internal advertisement.Methods
of Internal Sources:The Internal Sources Are GivenBelow:1.
Transfers:Transfer involves shifting of persons from present jobs
to other similar jobs. These do not involve any change in rank,
responsibility or prestige. The numbers of persons do not increase
with transfers.2. Promotions:Promotions refer to shifting of
persons to positions carrying better prestige, higher
responsibilities and more pay. The higher positions falling vacant
may be filled up from within the organisation. A promotion does not
increase the number of persons in the organisation.A person going
to get a higher position will vacate his present position.
Promotion will motivate employees to improve their performance so
that they can also get promotion.3. Present Employees:The present
employees of a concern are informed about likely vacant positions.
The employees recommend their relations or persons intimately known
to them. Management is relieved of looking out prospective
candidates.The persons recommended by the employees may be
generally suitable for the jobs because they know the requirements
of various positions. The existing employees take full
responsibility of those recommended by them and also ensure of
their proper behaviour and performance.
ii) Management Development programsManagement Development
Program (MDP)The UC Management Development Program (MDP) is a
system wide initiative designed to strengthenleadership
capabilities in four UC Core Competency areas: People Management
Employee Engagement Exercising Influence Change ManagementAn
energizing program relevant to the demands facing University
managers, it benefits Middle Managers who manage other Managers,
Supervisors and Leads. Managers whose primary role involves
translating strategy and executing work through others will find
this program most relevant.Participants in the program increase
their knowledge of best management practices by: Learning from top
professionals through interactive presentations, case studies and
exercises Completing self-assessments Building action plans
Developing an extended network of peers from other academic and
administrative units who share similar challenges and experiences
Working together to identify strategies for incorporating the
information learned back on the job
iii) Environmental scanning in SHRMEnvironmental scanning refers
to possession and utilization of information about occasions,
patterns, trends, and relationships within an organizations
internal and external environment. It helps the managers to decide
the future path of the organization. Scanning must identify the
threats and opportunities existing in the environment. While
strategy formulation, an organization must take advantage of the
opportunities and minimize the threats. A threat for one
organization may be an opportunity for another.Internal analysis of
the environmentis the first step of environment scanning.
Organizations should observe the internal organizational
environment. This includes employee interaction with other
employees, employee interaction with management, manager
interaction with other managers, and management interaction with
shareholders, access to natural resources, brand awareness,
organizational structure, main staff, operational potential, etc.
Also, discussions, interviews, and surveys can be used to assess
the internal environment. Analysis of internal environment helps in
identifying strengths and weaknesses of an organization.While
inexternal analysis, three correlated environment should be studied
and analyzed immediate / industry environment national environment
broader socio-economic environment / macro-environmentExamining
theindustry environmentneeds an appraisal of the competitive
structure of the organizations industry, including the competitive
position of a particular organization and its main rivals. Also, an
assessment of the nature, stage, dynamics and history of the
industry is essential. It also implies evaluating the effect of
globalization on competition within the industry. Analyzing
thenational environmentneeds an appraisal of whether the national
framework helps in achieving competitive advantage in the
globalized environment. Analysis ofmacro-environmentincludes
exploring macro-economic, social, government, legal, technological
and international factors that may influence the environment. The
analysis of organizations external environment reveals
opportunities and threats for an organization.Strategic managers
must not only recognize the present state of the environment and
their industry but also be able to predict its future positions.iv)
Performance Appraisal systemPerformance Appraisal is the systematic
evaluation of the performance of employees and to understand the
abilities of a person for further growth and development.
Performance appraisal is generally done in systematic ways which
are as follows:1. The supervisors measure the pay of employees and
compare it with targets and plans.2. The supervisor analyses the
factors behind work performances of employees.3. The employers are
in position to guide the employees for a better
performance.Objectives of Performance AppraisalPerformance
Appraisal can be done with following objectives in mind:1. To
maintain records in order to determine compensation packages, wage
structure, salaries raises, etc.2. To identify the strengths and
weaknesses of employees to place right men on right job.3. To
maintain and assess the potential present in a person for further
growth and development.4. To provide a feedback to employees
regarding their performance and related status.5. To provide a
feedback to employees regarding their performance and related
status.6. It serves as a basis for influencing working habits of
the employees.7. To review and retain the promotional and other
training programmes.
