HUMAN RESOURCE MANAGEMENT 611

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BBA_HRM_611

FACULTY OF BUSINESS, ECONOMICS & MANAGEMENT SCIENCES

QUALIFICATION TITLE: BACHELOR OF BUSINESS ADMINISTRATION

LEARNER GUIDE
MODULES: HUMAN RESOURCE MANAGEMENT 611 (1ST SEMESTER)

PREPARED ON BEHALF OF
PC TRAINING & BUSINESS COLLEGE (PTY) LTD AUTHOR: EDWARD HLENGWA EDITOR: ALPHA MSOMI FACULTY HEAD: PROF. ROSH MAHARAJ
Copyright 2013 PC Training & Business College (Pty) Ltd Registration Number: 2000/000757/07 All rights reserved; no part of this publication may be reproduced in any form or by any means, including photocopying machines, without the written permission of the Institution.

TABLE OF CONTENT TOPICS SECTION A: PREFACE 1. Welcome 2. Title of Modules 3. Purpose of Module 4. Learning Outcomes 5. Method of Study 6. Lectures and Tutorials 7. Notices 8. Prescribed & Recommended Material 9. Assessment & Key Concepts in Assignments and Examinations 10. Specimen Assignment Cover Sheet 11. Work Readiness Programme 12. Work Integrated Learning SECTION B: HUMAN RESOURCE MANAGEMENT 611 ( 1ST SEMESTER) TOPIC 1 : STRATEGIC ROLE OF HRM 1.1 Introduction to HRM 1.2 Scope of HRM 1.3 The Difference Between HRM and Personnel Management 1.4 Objectives of HRM 1.5 Importance of HRM 1.6 Systems Approach to HRM 1.7 Skills of HR Professionals 1.8 Strategic Human Resource Management/Planning 24 25 25 32 34
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5 6 6 6 7 7 7 7 8

11 13 14

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1.9 Line and Staff Aspects 1.10 Factors Influencing HRM 1.11 Using HRM to maintain a Competitive Advantage Review Questions TOPIC 2: JOB ANALYSIS 2.1 What is job analysis? 2.2 Uses of job analysis 2.3 The process of job analysis 2.4 Who should conduct the job analysis 2.5. Job Description 2.6 Job Specification Review Questions TOPIC 3: STRATEGIC HUMAN RESOURCE PLANNING MANAGEMENT 3.1 Introduction 3.2 Strategic human resource management 3.3 Traditional HR versus Strategic HRM 3.4 Evolving role of Strategic HRM 3.5 Manpower Planning 3.6 Process of Human Resource Planning (HRP) 3.7 Effective HRP Review Questions TOPIC 4: MANAGING DIVERSITY AND REGULATORY CHALLENGES 4.1 South Africas Diverse Population 4.2 Managing Diversity 4.3 Sexual Harassment Revision Questions

35 36 38 39

40 40 41 41 41 44 45

46 48 49 49 50 52 57 58

59 59 65 69
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TOPIC 5: MANAGING COMPENSATION AND BENEFITS 5.1 Compensation Objectives 5.2 Job Evaluation 5.3 Pay Systems 5.4 Guidelines for Pay Incentives 5.5 Benefits Revision Questions 70 73 75 76 76 78

TOPIC 6: ADDENDUM 611 (A) CASE STUDY FOR TUTORIAL TOPIC 7: ADDENDUM 611 (B); TYPICAL ASSIGNMENT QUESTIONS TOPIC 8: ADDENDUM 611 (C ) TYPICAL EXAMINATION QUESTIONS TOPIC 9: ADDENDUM 611 (D) EXAMINATION MARKING GUIDELINES

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PREFACE 1. WELCOME Welcome to the Faculty of Business, Economics & Management Sciences at PC Training & Business College. We trust you will find the contents and learning outcomes of this module both interesting and insightful as you begin your academic journey and eventually your career in the business world. This section of the study guide is intended to orientate you to the module before the commencement of formal lectures. The following lectures will focus on the common study units described: SECTION A: WELCOME & ORIENTATION Study unit 1: Orientation Programme Introducing academic staff to the learners by academic head. Lecture 1 Introduction of institution policies. Study unit 2: Orientation of Learners to Library and Students Facilities Lecture 2 Introducing learners to physical structures Study unit 3: Distribution and Orientation of Human Resource Lecture 3 Management 611 Material Study unit 4: Discussion on the Objectives and Outcomes of Lecture 4 Human Resource Management 611 Study unit 5: Orientation and guidelines to completing Assignments Lecture 5 Review and Recap of Study units 1-4

2. TITLE OF MODULES, COURSE, CODE, NQF LEVEL, CREDITS & MODE OF DELIVERY 2ND SEMESTER Title Of Module: Code: NQF Level: Credits: Mode of Delivery: 3. PURPOSE OF MODULE Human Resource Management 611 The purpose of this module is to give learners a thorough understanding of Human Resource Management required to enter the business/employment world. 4. LEARNING OUTCOMES On completion of this module, learners should have a basic/fundamental practical and theoretical knowledge of: Describe and implement the recruitment process Recognise the advantages and disadvantages of filling vacancies and evaluate the recruitment process Design and implement the selection process Recognise the importance of employee induction and design and implement the induction process Understand and implement the internal staffing process. BACHELOR OF BUSINESS ADMINISTRATION Human Resource Management 611
BBA_HRM_611

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5. METHOD OF STUDY The sections that have to be studied are indicated under each topic. These form the basis for tests, assignments and examination. To be able to do the activities and assignments for this module, and to achieve the learning outcomes and ultimately to be successful in the tests and examination, you will need an indepth understanding of the content of these sections in the learning guide and prescribed book. In order to master the learning material, you must accept responsibility for your own studies. Learning is not the same as memorising. You are expected to show that you understand and are able to apply the information. Use will also be made of
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lectures, tutorials, case studies and group discussions to present this module.

6. LECTURES AND TUTORIALS Learners must refer to the notice boards on their respective campuses for details of the lecture and tutorial time tables. The lecturer assigned to the module will also inform you of the number of lecture periods and tutorials allocated to a particular module. Prior preparation is required for each lecture and tutorial. Learners are encouraged to actively participate in lectures and tutorials in order to ensure success in tests, assignments and examinations. 7. NOTICES All information pertaining to this module such as tests dates, lecture and tutorial time tables, assignments, examinations etc. will be displayed on the notice board located on your campus. Learners must check the notice board on a daily basis. Should you require any clarity, please consult your lecturer, or programme manager, or administrator on your respective campus. 8. PRESCRIBED & RECOMMENDED MATERIAL 8.1 Recommended Material: Bachelor of Business Administration The prescribed text book for this module is: Grobler P., Warnich S, Carrell M.R., Elbert N.F., and Hatfield R.D.2006, Human Resource Management in SA. 3rd Edition. Bedfort Row. London. Recommended Material DeCenzo D. A. and Robbins S. P. Human Resource Management. 2010. 10th Edition. John Wiley and Sons (Asia) Pte Ltd. Nel P., Werner A., Du Plessis., Ngalo O., Poisat P. Sono T., Van Hoek L. And Botha C. 2011. Human Resources Management. 8th Edition. Oxford University Press Southern Africa (Pty) Ltd Cape Town

Human Resource Management 611 has a well balanced approach in that it is structured such that it not only informs and educates you about the theoretical back-ground required in the business world, but it also has a powerful practical element. Our practical syllabus follows strongly in line with that of solid
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management principles and standards currently employed by many enterprises today. The purchasing of prescribed books is for the learners own account and are compulsory for all learners. This guide will have limited value if not accompanied by the prescribed text books. 8.2Independent Research: The student is encouraged to undertake independent research with emphasis on the value of strategic thinking in companies and the formulation of Human Resource Management concepts. 8.3Library Infrastructure The following services are available to you: 8.3.1 Each campus keeps a limited quantity of the recommended reading titles and a larger variety of similar titles which you may borrow. Please note that learners are required to purchase the prescribed materials. 8.3.2 Arrangements have been made with municipal, state and other libraries to stock our recommended reading and similar titles. You may use these on their premises or borrow them if available. It is your responsibilities to safe keep all library books. 8.3.3 PCT&BC has also allocated one library period per week as to assist you with your formal research under professional supervision. PCT&BC has dedicated electronic libraries for use by its learners. The computers laboratories, when not in use for academic purposes, may also be used for research purposes. Booking is essential for all electronic library usage. 9.ASSESSMENT Final Assessment for this module will comprise two Continuous Assessment tests, an assignment and an examination. Your lecturer will inform you of the dates, times and the venues for each of these. You may also refer to the notice board on your campus or the Academic Calendar which is displayed in all lecture rooms. 9.1 Continuous Assessment Tests There are two compulsory tests for each module (in each semester) 9.2 Assignment There is one compulsory assignment for each module in each semester. Your lecturer will inform you of the Assessment questions at the commencement of this module.
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9.3 Examination There is one two hour examination for each module. Make sure that you diarize the correct date, time and venue. The examinations department will notify you of your results once all administrative matters are cleared and fees are paid up. The examination may consist of multiple choice questions, short questions and essay type questions. This requires you to be thoroughly prepared as all the content matter of lectures, tutorials, all references to the prescribed text and any other additional documentation/reference materials is examinable in both your tests and the examinations. The examination department will make available to you the details of the examination (date, time and venue) in due course. You must be seated in the examination room 15 minutes before the commencement of the examination. If you arrive late, you will not be allowed any extra time. Your learner registration card must be in your possession at all times. 9.4 Final Assessment The final assessment for this module will be weighted as follows: Continuous Assessment Test 1 Continuous Assessment Test 2 Assignment 1 Examination Total

40%

60% 100%

9.5 Key Concepts in Assignments and Examinations In assignment and examination questions you will notice certain key concepts (i.e. words/verbs) which tell you what is expected of you. For example, you may be asked in a question to list, describe, illustrate, demonstrate, compare, construct, relate, criticize, recommend or design particular information / aspects / factors /situations. To help you to know exactly what these key concepts or verbs mean so that you will know exactly what is expected of you, we present the following taxonomy by Bloom, explaining the concepts and stating the level of cognitive thinking that theses refer to. Competence Knowledge Skills Demonstrated observation and recall of information knowledge of dates, events, places
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knowledge of major ideas mastery of subject matter Question Cues list, define, tell, describe, identify, show, label, collect, examine, tabulate, quote, name, who, when, where, etc. understanding information grasp meaning translate knowledge into new context interpret facts, compare, contrast order, group, infer causes Comprehension predict consequences Question Cues summarize, describe, interpret, contrast, predict, associate, distinguish, estimate, differentiate, discuss, extend use information use methods, concepts, theories in new situations solve problems using required skills or knowledge Questions Application Cues apply, demonstrate, calculate, complete, illustrate, show, solve, examine, modify, relate, change, classify, experiment, discover seeing patterns organization of parts recognition of hidden meanings identification of components Analysis Question Cues analyse, separate, order, explain, connect, classify, arrange, divide, compare, select, explain, infer use old ideas to create new ones generalize from given facts relate knowledge from several areas predict, draw conclusions Synthesis Question Cues combine, integrate, modify, rearrange, substitute, plan, create, design, invent, what if?, compose, formulate, prepare, generalize, rewrite compare and discriminate between ideas Evaluation assess value of theories, presentations
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make choices based on reasoned argument verify value of evidence recognize subjectivity Question Cues assess, decide, rank, grade, test, measure, recommend, convince, select, judge, explain, discriminate, support, conclude, compare, summarize

PC TRAINING & BUSINESS COLLEGE FACULTY OF BUSINESS, ECONOMICS & MANAGEMENT SCIENCES

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ASSIGNMENT COVER SHEET NAME OF LEARNER: .. ICAS NO: QUALIFICATION: . . SURNAME: ID NUMBER: .. MODULE: ...........

SPECIALISATION: SEMESTER . ASSESSMENT RECORDS Content 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Total 100% Mark Allocation Examiners Mark DATE SUBMITTED: .. Moderators Marks

Remarks

NAME & SURNAME

SIGNATURE/DATE

EXAMINER:

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MODERATOR:

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VERIFYIER

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ASSIGNMENT GUIDELINES The purpose of an assignment is to ensure that the Learner is able to: Interpret, convert and evaluate text.
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 Have sound understanding of key fields viz principles and theories, rules, concepts and awareness of how to cognate areas. Solve unfamiliar problems using correct procedures and corrective actions. Investigate and critically analyse information and report thereof. Present information using Information Technology. Present and communicate information reliably and coherently. Develop information retrieval skills. Use methods of enquiry and research in a disciplined field.

ASSESSMENT CRITERIA

When the final Mark is allocated the above criteria must be taken into account

A. Content- Relevance: Has the learner Answered the Question B. Research (A minimum of TEN SOURCES is recommended) Reference , books, Internet, Newspapers, Text Books C. Presentation : Introduction, Body, Conclusion, Paragraphs, Neatness, Integration, Grammar / Spelling, Page Numbering, Diagrams, Tables, Graphs, Bibliography

NB: All Assignments are compulsory as they form part of continuous assessment that counts towards the final mark

11. WORK READINESS PROGRAMME (WRP) In order to prepare learners for the world of work, a series of interventions over and above the formal curriculum, are concurrently implemented to prepare
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learners. These include: Soft skills Employment skills Life skills End User Computing (if not included in your curriculum) The illustration below outlines some of the key concepts for Work Readiness that will be included in your timetable.
SOFT SKILLS
Time Management Working in Teams Problem Solving Skills Attitude & Goal Setting Etiquettes & Ethics Communication Skills

LIFE SKILLS
Manage Personal Finance Driving Skills Basic Life Support & First Aid Entrepreneurial skills Counselling skills

WORK READINESS PROGRAMM E EMPLOYMENT SKILLS

CV Writing Interview Skills Presentation Skills Employer / Employee Relationship End User Computing Email & E-Commerce Spread Sheets Data base Presentation Office Word

It is in your interest to attend these workshops, complete the Work Readiness Log Book and prepare for the Working World.

12 WORK INTEGRATED LEARNING (WIL) Work Integrated Learning forms a core component of the curriculum for the completion of this programme. All modules making of the Bachelor of Business Administration will be assessed in an integrated manner towards the end of the programme or after completion of all other modules. Prerequisites for placement with employers will include: Completion of all tests & assignment Success in examination Payment of all arrear fees
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 Return of library books, etc. Completion of the Work Readiness Programme. Learners will be fully inducted on the Work Integrated Learning Module, the Workbooks & assessment requirements before placement with employers. The partners in Work Readiness Programme (WRP) include:

Good luck and success in your studies Prof. Rosh Maharaj Senior Director: Faculty of Business, Economics & Management Sciences

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FACULTY OF BUSINESS, ECONOMICS & MANAGEMENT SCIENCES

QUALIFICATION TITLE: BACHELOR OF BUSINESS ADMINISTRATION

LEARNER GUIDE
MODULE: HUMAN RESOURCE MANAGEMENT 611(1ST SEMESTER)
TOPIC 1 : TOPIC 2 : TOPIC 3 : TOPIC 4 : TOPIC 5 : TOPIC 6 : TOPIC 7 : INTRODUCTION TO HUMAN RESOURCES MANAGEMENT HUMAN RESOURCES ENVIRONMENT WORKFORCE DIVERSITY AND REGULATION MANAGING DIVERSITY AND REGULATORY CHALLENGES MANAGING COMPENSATION AND BENEFITS ADDENDUM 611 (A) CASE STUDY FOR TUTORIAL DISCUSSION ADDENDUM 611: (B) ASSIGNMENT QUESTIONS ADDENDUM 611: (C ) EXAMINATION QUESTIONS ADDENDUM 611: (D) REVIEW QUESTIONS AND MODEL ANSWERS

TOPIC 8 : TOPIC 9 :

HUMAN RESOURCE MANAGEMENT 611 (1st SEMESTER) SECTION B: HUMAN RESOURCE MANAGEMENT 611 ( 1ST SEMESTER)

BBA

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TOPIC 1 : STRATEGIC ROLE OF HRM 1.12 Introduction to HRM 1.13 Scope of HRM 1.14 The Difference Between HRM and Personnel Management 1.15 Objectives of HRM 1.16 Importance of HRM 1.17 Systems Approach to HRM 1.18 Skills of HR Professionals 1.19 Strategic Human Resource Management/Planning 1.20 Line and Staff Aspects 1.21 Factors Influencing HRM 1.22 Using HRM to maintain a Competitive Advantage Review Questions TOPIC 2: JOB ANALYSIS 2.1 What is job analysis? 2.2 Uses of job analysis 2.3 The process of job analysis 2.4 Who should conduct the job analysis 2.5. Job Description 2.6 Job Specification Review Questions TOPIC 3: STRATEGIC HUMAN RESOURCE PLANNING MANAGEMENT 3.1 Introduction 3.2 Strategic human resource management 3.3 Traditional HR versus Strategic HRM Lecture 26 Lecture 26 Lecture 27
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Lecture 6 Lecture 7 7

Lecture 8-9 Lecture 10-16 Lecture 17 Lecture 18 Lecture 19 Lecture 20 Lecture 21 Lecture 22

Lecture 23 Lecture 23 Lecture 23 Lecture 24 Lecture 25 Lecture 25

3.4 Evolving role of Strategic HRM 3.5 Manpower Planning 3.6 Process of Human Resource Planning (HRP) 3.7 Effective HRP Review Questions TOPIC 4: MANAGING DIVERSITY AND REGULATORY CHALLENGES 4.1 South Africas Diverse Population 4.2 Managing Diversity 4.3 Sexual Harassment Revision Questions TOPIC 5: MANAGING COMPENSATION AND BENEFITS 5.1 Compensation Objectives 5.2 Job Evaluation 5.3 Pay Systems 5.4 Guidelines for Pay Incentives 5.5 Benefits Revision Questions TOPIC 6: ADDENDUM 611 (A) CASE STUDY FOR TUTORIAL TOPIC 7: ADDENDUM 611 (B): ASSIGNMENT QUESTIONS TOPIC 8: ADDENDUM 611 (C ): EXAMINATION QUESTIONS TOPIC 9: ADDENDUM 611 (D) EXAMINATION MARKING GUIDELINES

Lecture 28 Lecture 28 Lecture 29 Lecture 29

Lecture 30 Lecture 31 Lecture 32 Lecture 33

Lecture 34 Lecture 35 Lecture 35 Lecture 36 Lecture 37 Lecture 38 Lecture 38

Lecture 40

Lecture 41-44 Lecture 45

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TOPIC 1 1. INRODUCTION TO HUMAN RESOURCE MANAGEMENT THE SCOPE AND IMPORTANCE

LEARNING OUTCOMES After you have read this topic you should be able to: Outline the HRM approaches known in S.A List the features of HRM Describe the scope and importance of HRM Outline the systems approach to HRM 1.1INTRODUCTION It is important to put the subject matter into perspective based on the views of different authors. Human resource management (HRM) is the management of an organization's workforce, or human resources. (Grobler, Warnich , Carrell, Elbert and Hatfield 2006) and (DeCenzo and Robbins 2010). It is responsible for the attraction, selection, training, assessment, and rewarding of employees, while also overseeing organisational leadership and culture, and ensuring compliance with employment and labor laws. The art and science of HRM is indeed complex. HRM is both the art of managing people by recourse to creative and innovative approaches; it is a science as well because of the precision and rigorous application of theory that is required As outlined above, the process of defining HRM leads to two different definitions. The first definition of HRM views it as process of managing people in organisations in a structured and thorough manner. The second definition of HRM encompasses the management of people in organisations from a macro perspective i.e. managing people in the form of a collective relationship between management and employees. This approach focuses on the objectives and outcomes of the HRM function. What this means is that the HR function in contemporary organizations is concerned with the notions of people enabling, people development and a focus on making the employment relationship fulfilling for both the management and employees .
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1.2THE DIFFERENCE BETWEEN HRM AND PERSONNEL MANAGEMENT Many students of management and laypeople often hear the term Human Resource Management and wonder about the difference between HRM and the traditional term Personnel Management. Personnel Management Traditionally the term personnel management was used to refer to the set of activities concerning the workforce which included staffing, payroll, contractual obligations and other administrative tasks. In this respect, personnel management encompasses the range of activities that are to do with managing the workforce rather than resources. Personnel Management is more administrative in nature and the Personnel Managers main job is to ensure that the needs of the workforce as they pertain to their immediate concerns are taken care of. Further, personnel managers typically played the role of mediators between the management and the employees and hence there was always the feeling that personnel management was not in tune with the objectives of the management. Human Resource Management With the advent of resource centric organizations in recent decades, it has become imperative to put people first as well as secure managemen t objectives of maximizing the ROI (Return on Investment) on the resources. This has led to the development of the modern HRM function which is primarily concerned with ensuring the fulfillment of management objectives and at the same time ensuring that the needs of the resources are taken care of. In this way, HRM differs from personnel management not only in its broader scope but also in the way in which its mission is defined. HRM goes beyond the administrative tasks of personnel management and encompasses a broad vision of how management would like the resources to contribute to the success of the organization. Personnel Management and HRM: A Paradigm Shift? Cynics might point to the fact that whatever term we use, it is finally about managing people. The answer to this would be that the way in which people are managed says a lot about the approach that the firm is taking. For instance, traditional manufacturing units had personnel managers whereas the services firms have HR managers. While it is tempting to view Personnel Management as archaic and HRM as modern, we have to recognize the fact that each serves or served the purpose for which they were instituted. Personnel Management
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was effective in the smokestack era and HRM is effective in the 21st c entury and this definitely reflects a paradigm shift in the practice of managing people. Therefore, Human Resource Management is may be defined as the art of procuring, developing and maintaining competent workforce to achieve the goals of an organisation in an effective and efficient manner.

The HRM function has the following features: Pervasive force: HRM is pervasive in nature. It is present in all enterprises. It permeates all levels of management in an organisation. Action oriented: HRM focuses attention on action, rather than on record keeping, written procedures or rules. The problems of employees at work are solved through rational policies. Individually oriented: It tries to help employees develop their potential fully. It encourages them to give their best to the organisation. It motivates employees through a systematic process of recruitment, selection, training and development coupled with fair wage policies. People oriented: HRM is all about people at work, both as individuals and groups. It tries to put people on assigned jobs in order to produce good results. The resultant gains are used to reward people and motivate them toward further improvements in productivity. Future-oriented: Effective HRM helps an organisation meet its goals in the future by providing for competent and well-motivated employees. Development oriented: HRM intends to develop the full potential of employees. The reward structure is tuned to the needs of employees. Training is offered to sharpen and improve their skills. Employees are rotated on various jobs so that they gain experience and exposure. Every attempt is made to use their talents fully in the service of organisational goals. Integrating mechanism: HRM tries to build and maintain cordial relations between people working at various levels in the organisation. In short, it tries to integrate human assets in the best possible manner in the service of an organisation. Comprehensive function: HRM is, to some extent, concerned with any organisational decision which has an impact on the workforce or the potential workforce. Auxiliary service: HR departments exist to assist and advise the line or operating managers to do their personnel work more effectively. HR manager is a specialist advisor. It is a staff function.

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1.3 SCOPE OF AN HRM The scope of HRM is very wide. Research in behavioural sciences, new trends in managing knowledge workers and advances in the field of training have expanded the scope of HR function in recent years.: Personnel aspect: This is concerned with manpower planning, recruitment, selection, placement, transfer, promotion, training and development, lay off and retrenchment, remuneration, incentives, productivity, etc. Welfare aspect: It deals with working conditions and amenities such as canteens, creches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc. Industrial relations aspect: This covers union-management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc. 1.4 OBJECTIVES OF HRM The principal objectives of HRM may be listed thus: To help the organisation reach its goals: HR department, like other departments in an organisation, exists to achieve the goals of the organisation first and if it does not meet this purpose, HR department (or for that matter any other unit) will wither and die. To employ the skills and abilities of the workforce efficiently: The primary purpose of HRM is to make people's strengths productive and to benefit customers, stockholders and employees. To provide the organisation with well-trained and well-motivated employees: HRM requires that employees be motivated to exert their maximum efforts, that their performance be evaluated properly for results and that they be remunerated on the basis of their contributions to the organisation. To increase to the fullest the employee's job satisfaction and selfactualisation: It tries to prompt and stimulate every employee to realise his potential. To this end suitable programmes have to be designed aimed at improving the Quality of Work Life (QWL). To develop and maintain a quality of work life: It makes employment in the organisation a desirable, personal and social, situation. Without improvement in the quality of work life, it is difficult to improve organisational performance. To communicate HR policies to all employees: It is the responsibility of HRM to communicate in the fullest possible sense; tapping ideas, opinions and feelings of customers, non-customers, regulators and other external public as well as understanding the views of internal human resources.
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 To be ethically and socially responsive to the needs of society: HRM must ensure that organisations manage human resource in an ethical and socially responsible manner through ensuring compliance with legal and ethical standards.

1.5 IMPORTANCE OF HRM People have always been central to organisations, but their strategic importance is growing in todays knowledge-based industries. An organisations success increasingly depends on the knowledge, skills and abilities of employees, particularly as they help establish a set of core competencies that distinguish an organisation from its competitors. With an appropriate HR policies and practices an organisation can hire, develop and utilise best brains in the marketplace, realise its professed goals and deliver results better than others. Human Resource Management helps an organisation and its people to realise their respective goals thus: At the enterprise level : Good human resource practices can help in attracting and retaining the best people in the organisation. Planning alerts the company to the types of people it will need in the short, medium and long run. At the individual level : It promotes team work and team spirit among employee. It offers excellent growth opportunities to people who have the potential to rise. It allows people to work with diligence and commitment. At the society level : Employment opportunities multiply. Scarce talents are put to best use. Companies that pay that and treat people well always race ahead of others and deliver excellent results. At the national level : Effective use of human resources helps in exploitation of natural, physical and financial resources in a better way. People with right skills, proper attitudes and appropriate values help the nation to get ahead and complete with the best in the world leading to better standard of living and better employment. 1.6 SYSTEMS APPROACH TO HRM The systems approach was first applied by biologists in the 1920s as a framework for explaining how living organisms work and the concept was so successful that it is now applied to a wide variety of disciplines, including the management of organizations. We view organizations and the people that work in them as systems. The systems approach provides a framework for managing people.
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1.71The Organisation as a System An example is used to explain what the system approach is and how it operates? A MANUFACTURING BUSINESS is used as an example to explain the systems approach. Materials, money, electricity, machinery, etc. are all inputs in a factory. In a manufacturing process people use the inputs, to manufacture products which are the outputs of the system (factory). These outputs must be produced in sufficient quantities as well as good quality so that the system can achieve its goals, for e.g. a specific level of profit. The system will in turn need feedback; this may be in the form of money and information. We will discuss some aspects of the organisational system in a little more detail. Businesses should start of with a clear idea of their goals, decide on what outputs they need to set up processes to produce the outputs then organize the inputs. 1.6.2 Goals The basic goal of any organization is to sustain and enhance its activities. The ultimate goal is to make profits. Organizations such as government departments i.e. non-profit organizations exist to provide a quality service/product to their clients at reasonable and acceptable costs. Organisational goals should first be set and the departmental and individual employees goals should be based on these goals so that everybody in the organisation is working together to achieve common goals. When an organization sets a goal a target date should be set as well. Goals should always have target dates which can be short term (up to 1 year) medium term (1-3 years) or long term (longer than 3 years). 1.6.3 Outputs In order to meet customer needs the outputs must be supplied at the required quality, quantity, price and time. A vital point to note is that outputs from one department are usually inputs to other departments. 1.6.4 Processes In order for the organization to remain in business in the long term, the processes must be cost effective; this means the cost of running the organization must be less than the money coming into the organization. Processing methods should constantly be reviewed and improved where necessary to ensure high
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levels of efficiency and productivity so that the organization remains competitive. 1.6.5 Feedback When we talk about feedback in the businesses, we are actually talking about the revenue and information from the market place about the products. This feedback is vitally important because without money coming into the organization, the business would become bankrupt and without up to date information, management would not be able to react quickly and efficiently to changing circumstances, in the environment. Some examples of information fed back to an organization are customer needs, customer complaints, number of products sold, etc. Information is also required within the organization to monitor progress and take action where necessary. In order to evaluate the progress of an organisation (success or failure) management and workers must compare the information fed back to them with methods such as forecast or budgeted sales volumes and revenues and they should take action were necessary to ensure that standards are met. Since customer satisfaction is vitally important in any organization, questionnaires should be drawn up in which customers record their level of satisfaction with the products and services. Organizations should record both positive as well as negative reactions/opinions to give a balanced picture of what they feel of the products and services. This information should be fed back to as many people as possible within the organization, so that many people in the organization can become customer orientated. 1.6.6 Inputs Factors of production such as management, people, money, land, building, technology, etc. (these are the inputs to the organization) are required to produce the outputs. The quality and quantity of the inputs must be up to predetermined standards. 1.6.7 Relationships Relationships can be defined as the way in which people behave towards each other and understand each other over a period of time. The ways in which people relate to each other depends on a wide variety of factors such as their attitudes towards each other, whether they like each other, their values, goals, beliefs etc. Relationships can be negative as well as positive, negative relationships decrease efficiency within the organization, positive relationships help the organisation achieve its goals, and assist organizations in being more efficient, as well as competitive. However, positive relationships do not necessarily mean that there isnt any conflict, but the conflict should be constructive rather than destructive.
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The way in which organizations and people connect or link up with each other to exchange products, services, information and ideas, is known as networking and is an important aspect of relationships. Networks exist at different levels within the organisation. Networks are extremely important for the success of businesses and people within those organisations. An example of modern networking is the internet, which is becoming an extremely vital channel in the business world. THE EMPLOYEE AS A SYSTEM How can we manage individual employees and groups of employees effectively in order to achieve the goals of an organisation? To answer the above question, consider each employee as a system as the system provides managers with a framework that helps them to understand the main factors which have an impact on a persons work performance and serves as a basis for solving employee related problems. 1.6.8 Goals Work goals - a person must have a clear idea of exactly what should be achieved, as well as a target date (i.e. by when) in order to perform at a high level. Personal goals - aspects related to their education careers and income. These must be taken into account by management to ensure the highest possible levels of focus and motivation. Goals provide people with some sort of direction, if these goals are challenging they tend to motivate people through the satisfaction they experience when they achieve the goals. 1.6.9 Outputs It is vital that employees understand what outputs are expected of them as well as the quality, quantity, time and costs of these outputs. For instance, if the standards are higher than the employee performance, then the standards become the employee goals. 1.6.10 Process The process refers to the methods, techniques and behaviours, which are used in the job and the extent to which the employee demonstrates the efficient use of the inputs to achieve the required outputs. The process part of an employees performance is therefore the action part , as well as the contribution to the successful performance of the job by putting his or her inputs such as knowledge and skills into practice. The decision to establish the best methods,
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techniques and behaviours, for the successful performance of the job, is up to top management, but employees should also be given the opportunity to improve on them. 1.6. 11 Inputs There are two main types of inputs; they are environmental inputs and personnel inputs. Environmental inputs are all those inputs that come from sources external to the employee. Personal inputs are those which the employee brings with him/her to the workplace. Some environmental inputs are tools and equipment which the employee uses to do the job, information that the employee needs to perform the job as well as time. Time is included as an input in that it is a resource which is available to be used or misused. Some Personnel inputs are knowledge, skills, culture, values, standards, motivation, personality, physical attributes, ethics, ability, experience, personal biases and prejudices and so on. All these have an effect on employee performance and must be taken into consideration when managing people in organizations, especially where an employee has a personnel or performance problem. At times employee goals and work processes are very well established but the employee is still not able to perform at the required standard, because problems may arise with the inputs. An example to demonstrate this may be used. An employees goals might be well established, he/she may be ready to start work, but is unable to do so because there might be problems with equipment or tools, which should be attended to, or if the employee does not have the necessary skills or knowledge, then he/she should be trained. 1.6.12 Feedback The feedback of accurate and up to date information has the effect that: It encourages people to set their own goals. It motivates them to improve their performance to achieve their goals, constant feedback will provide employees with information that will enable them to improve on the quality of their work performance. When employees receive no feedback they become de-motivated. Feedback assists employees to learn the most effective methods of doing their jobs under different situations.
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 Managers should therefore ensure that employees are given feedback about their performance regularly in a form which they can understand and is meaningful to them. 1.6.13 Relationships Positive relationships between people in an organization will assist the organization to become more effective. Positive relationships help people to become more motivated and committed. Negative relationships tend to de-motivate people which inevitably results in poor levels of performance and productivity. Interpersonnel relationships are therefore important in an organization, and should be focused on in any organization.

1.6.14 Open Systems All people have to work within an environment where they are open to many types of influences or forces in the external environment. Organizations are affected in one way or another by environmental factors or macro factors Below is an illustration of an open system:

A brief explanation of these concepts is as follows: Economy - the rate at which prices increase (known as inflation rate) is one aspect of the economy that affects us all.

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Growth is another aspect that affects us all, if the economy grows sufficiently then more jobs become available and organizations flourish. Health - refers to the state of the health of the population as a whole. Safety and security - the law as well as government should guarantee the safety and security of the population in the country to enable people to live productive lives and for organizations to operate effectively. Competition - with a highly competitive business world, organizations are constantly developing better ways of producing products and designing new products which places pressure on their competitors. Education - one of the most important factors affecting the success of countries and the organizations operating in them. Trade unions - trade unions can play a major role in the wages which people earn and the benefits which they receive. Technology - computerization is the most common technology, computers affect most organizations and people working in them. Physical environment - imposes limitations on what organisations and people can do but they, in turn should respect and maintain the environment. The Law - rules, regulations and policies of a country with which individuals and organizations should behave and operate. Without laws there would be chaos. Politics -political issues of a country that affect citizens of the country. Politicians pass laws which control how we do business and how we treat people in the workplace. Social influences - such as peoples culture, language and religion. When dealing with people all these factors must be taken into account because they are directly or indirectly influenced by the environment in which they live and work. It is therefore essential that managers understand what is going on in the world around them and get involved in issues which impact on their organization.

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1.7 SKILLS OF THE HR PROFESSIONALS In order to compete through people, HR managers have to do a good job of managing human capital - the knowledge, skills, and capabilities that add value to organisations. They must develop strategies for hiring, training, evaluating, compensating and retaining people in the most appropriate manner. They must be able to integrate technology, processes and people with corporate strategy and deliver costeffective services to the satisfaction of customers. To perform these diverse roles, HR managers must possess excellent qualities of head and heart, in addition to having state of the art HR competencies, business competencies and change management competencies. 1.7.1 Qualities a. Personal attributes: The personnel manager, as in case of any other manager, must have initiative, resourcefulness, depth of perception, maturity in judgment and analytical ability. Freedom from bias would enable the personnel manager to take an objective view of management and workers. He must thus have intellectual integrity. Moreover, the personnel manager should be through with labour laws. An understanding of human behavior is essential to enable him to be familiar with human needs, wants, hopes and desires, values and aspirations, without which motivating people can be an onerous task. The personnel manager should possess other personal attributes like: i. Intelligence: This includes skills to communicate, articulate, moderate, understand, command over language, mental ability and tact in dealing with people intelligently, ability to draft agreements, policies, etc. ii. Educational skills: Personnel manager should possess learning and teaching skills as he has to learn and teach employees about the organisational growth, need for and mode of development of individuals, etc. iii. Discriminating skills: Personnel staff should have the ability and discretion to discriminate between right and wrong, between just and unjust, merit and demerit. iv. Executing skills: Personnel manager is expected to execute the management's decisions regarding personnel issues with speed, accuracy and objectivity. He should be able to streamline the office, set standards of performance, while coordinating, controlling and creating productive work spaces. The personnel manager is expected to have leadership qualities, deep faith in human values, empathy with human problems, visualizing future needs of employees, organisation, government, trade unions, society, etc. b. Experience and Training: Previous experience is undoubtedly an advantage provided the experience was in an appropriate environment and in the same
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area. Training in psychological aspects of human behavior, labour legislations and more specifically in personnel management and general management is an additional benefit. Experience in an enterprise in some other executive capacity can also help. c. Professional Attitudes: Professional attitude is relevant, particularly in the Indian context. The personnel manager's job, as in the case of other managers is getting professionalised. He should have patience and understanding and the ability to listen before offering advice. As mentioned earlier, he should have the knowledge of various disciplines like technology, engineering, management, sociology, psychology, philosophy, human physiology, economics, commerce and law. He must be able to combine social justice with a warm personal interest in people which must be secured by an uncommon degree of common sense, compassion and integrity. 1.7.2 Qualifications The job of a personnel manager is complex. Meeting the ever-increasing needs, aspirations and expectations of employees is not easy. To complicate his role further, top management expects the personnel manager to: Convey its commands, instructions, policies and programmes to employees in an effective way; Liaison with line managers smoothly; Look after the safety and welfare of employees; Take care of the legal provisions governing the workplace; Offer expert advice on issues relating to human resource planning, recruitment, Training, appraisal, compensation, etc. In union-management relations, the personnel man is expected to absorb frayed tempers, notes of discontent and disagreement while creating a dialogue and bringing about peace. While discharging the above duties and responsibilities, he is not expected to lose sight of his moral and social obligations towards employees and the general public. The question of prescribing a set of qualifications for a personnel manager, in view of the expanding list of tasks, makes the search for a suitable candidate rather challenging. Keeping the diversity and elasticity of the Personnel Manager's job in mind, the following educational qualifications may be necessary to achieve success, in addition to the personal attributes already mentioned. Degree from a recognised University Postgraduate degree/diploma in HRM/HRD/Labour Welfare/Social Work/ Psychology/Industrial Relations/MBA with Specialisation in HRM.
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 Degree in Law (desirable qualification) Knowledge of Local Language. More importantly possessing HR mastery, implying knowledge and understanding of areas such as staffing, development, appraisal, rewards, team building, and communication.

1.7.3 Business Mastery HR managers need to know the business of their organisation thoroughly its processes, products, customers, markets, people etc. This calls for an understanding of its technological, economic and financial strengths so that they can offer valuable advice and counsel to line managers while formulating and implementing strategies. 1.7.4 Change Mastery Another important capability that HR managers need is to be able to influence others and guide changes in organisations. Given the multifarious HR-related changes influencing present-day organisations, HR managers must be able to influence others. This, calls for interpersonal and problem solving skills, in addition to creativity and innovativeness. 1.8 STRATEGIC HUMAN RESOURCE MANAGEMENT Strategic management is a process in which an organisation makes decision about the future in the complex and rapidly changing world. Strategic management involves those decisions that define the overall mission and objectives of the organisation determining the most effective utilization of its resources, and crafting and executing the strategy in ways that produce the intended results. Strategic human resource management activities address a wide variety of people issues relevant to the business strategy. HRM crosses all the functional areas and is fully integrated with all the significant parts of the organization: operations, marketing, finance and so on. The difference between strategic HRM approach and the traditional HRM approach is shown below.

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Traditional HR versus Strategic HR Point of distinction Focus Role of HR Traditional HR Employee Relations Transactional change follower and respondent Slow, reactive, fragmented Short-tem Strategic HR Partnerships with internal and external customers Transformational change leader and initiator Fast, proactive and integrated

Initiatives Time horizon Control Job design

Key investments Accountability Responsibility for HR

Short, medium and long (as required) Bureaucratic-roles, Organic-flexible, whatever is policies, procedures necessary to succeed Tight division of Broad, flexible, cross-training labour; independence, teams specialisation Capital, products People, knowledge Cost centre Investment centre Staff specialists Line managers

1.9 HRM: LINE AND STAFF ASPECTS In a sense all managers are HR managers as they all get involved in activities like selecting, training, compensating employees. Currently, most companies have the HR department headed by a person with requisite qualifications in behavioural sciences. How do the duties of this HR manager relate to the line managers HR duties would be an interesting question to answer? Line managers have the final responsibility for achieving the organisations goals. They have also the authority to direct the work of subordinates. Staff managers usually help and advice line managers in achieving organisational goals. HR managers are staff experts; they assist line managers in areas like recruiting, selecting, training and compensating. Managing people, in a broader context, is every managers business and successful organisations generally combine the experience of line managers with the experience of HR specialists while utilising the talents of employees to their greatest potential.

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1.10 FACTORS INFLUENCING HRM Size of workforce: the size of the workforce, consequently, increases, throwing up additional challenges before HR managers in the form of additional demands for better pay, benefits and working conditions from various sections of the workforce constantly. Composition of workforce: the workforce composition is also changing over the years; the rising percentage of women and minorities in the workforce is going to alter workplace equations dramatically. Employee expectations: present day workers are educated, more demanding and are ready to voice strong, violent and joint protests in case their expectations are not met. Changes in technology: increased automation, modernisation and computerisation have changed the way that traditional jobs are handled. Life-style changes: the life-style patterns of employees have undergone a rapid change in recent times. Environmental challenges: privatisation efforts are likely to gather momentum in the coming years, as most of public sector units face survival problems. Personnel function in future: the personnel function in future is going to evolve thus: Job redesign Career opportunities Productivity Recruitment and selection Training and development Rewards Safety and welfare Changes in 21st century impacting HRM: some of the current trends that would have a significant impact on the way HR practices would get transformed in future.

1.10.1 CHALLENGES FACING HR MANAGERS IN THE TWENTYFIRST CENTURY Global alliances, cross-country mergers, acquisitions have become quite routine affairs now. In a volatile environment, changes of various kinds hit the firms from all corners. Successful managers have to anticipate and adjust to such changes quickly rather than being passively swept along or caught unprepared. If firms hire people who do not like surprises, probably they are not hiring the right people. Agility pays rich dividends and HR managers have an important role in creating a favorable work climate to initiate and implement changes quickly.
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1. Economic Challenges: Nowadays the world is shrinking in all major respects. People, goods, capital and information are moving around the globe as never before. Companies are trying to become global players just to survive; let alone prosper. Coca-cola, a leader in this respect, derives roughly 80 per cent of its profits from foreign sales. IBM, Mobil, Citicorp, Motorola, Gillette too earn more than half of their revenues from operations outside USA. International borders have been ruthlessly ignored or thoroughly discounted when it comes to serving business interests. Todays' managers in big firms are quite comfortable transacting business in multiple languages and cultures. In the new global marketplace HR managers are required to play challenging roles and create a competitive advantage for the firm. Competitive advantage refers to the ability of an organisation to formulate strategies to exploit profitable opportunities, thereby maximising its return on investment. To this end, global firms are continually reorganising their operations and refocusing their energies around their crucial areas of competence. AT&T, for example, has a global operations team of top executives to look into country-specific demands. Infosys technologies, Bharat Forge, Jubilant Oranosys, Asian Paints, Essel Propack, Micro Inks, Ranbaxy and Dr Reddy. Laboratories have created such global operations teams long back to explore overseas markets and exploit available opportunities. They have also been sending key management members to attend global seminars, workshops, and training sessions regularly. Companies like Colgate even proclaim, "we want to build a common corporate culture. We want them all to be Colgaters" - while trying to bridge the cultural gap between domestic employees and those in international operations. 2. Managing Knowledge Workers: Essentially, here we are looking at different kind of people who does not obey the principles of management for the traditional group. This boils down to higher educational qualifications, taking up responsibilities at a lesser age and experience, high bargaining power due to the knowledge and skills in hand, high demand for the knowledge workers, and techno suaveness. The clear shift is seen in terms of organization career commitment to individualized career management. Managing this set of people is essential for the growth of any industry but especially the IT, BPOs and other knowledge based sectors. 3. Managing Technological Challenges: In every arena organizations are getting more and more technologically oriented. Though it is not in the main run after the initial debates, preparing the work force to accept technological changes is a major Human Resource Management challenge. We have seen sectors like banking undergoing revolutionary changes enabled by technology.
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It is a huge challenge to bring in IT and other technology acceptance all levels in organizations. 4. Competence of HR Managers: As it is more and more accepted that lot of success of organizations depend on the human capital, this boils to recruiting the best, managing the best and retaining the best. Clearly HR managers have a role in this process. Often it is discussed about lack of competence of HR managers in understanding the business imperative. There is now a need to develop competent HR professionals who are sound in HR management practices with strong business knowledge. 5. Developing Leadership: It is quite interesting to note that there is less importance given to developing leadership at the organizational level. Though leadership is discussed on basis of traits and certain qualities, at an organisational level it is more based on knowledge. The challenge is to develop individuals who have performance potential on basis of past record and knowledge based expertise in to business leaders by imparting them with the necessary "soft skills". 6. Managing Change: Business environment in India is volatile. There is boom in terms of opportunities brought forward by globalisation. However this is also leading to many interventions in terms of restructuring, turnaround, mergers, downsizing, etc. Research has clearly shown that the success of these interventions is heavily dependent on managing the people issues in the process. HR has a pivotal role to play here. 1.11 USING HRM TO MAINTAIN COMPETITIVE ADVANTAGE Competitive advantage refers to the ability of an organisation to formulate strategies to exploit rewarding opportunities, thereby maximising its return on investment. Competitive Human Resource Management advantage occurs if customers perceive that they receive value from their transaction with an organisation. This requires single-minded focus on customer needs and expectations. To achieve this, the organisation needs to tune its policies in line with changing customer's requirements. The second principle of competitive advantage derives from offering a product or service that your competitor cannot easily imitate or copy. An organisation should always try to be unique in its industry along dimensions that are widely valued by customers. For example, Apple stresses its computers' usability; Mercedes Benz stresses reliability and quality; Maruti emphasizes affordability of its lower-end car Maruti 800. In order to enjoy the competitive advantage, the firm should be a cost - leader, delivering value for money. It must have a committed and competent workforce. Workers are most productive if
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(i)

they are loyal to the company, informed about its mission, strategic and current levels of success; (ii) involved in teams which collectively decide how things are to be done; and (iii) Are trusted to take the right decisions rather than be controlled at every stage by managers above them (Thompson). A good team of competent and committed employees will deliver the goals if they are involved in all important activities and are encouraged to develop goals that they are supposed to achieve. In recent years, a new line of thinking has emerged to support this view-known as Strategic Human Resources Management (SHRM).

REVIEW QUESTIONS 1. Define HRM and its objectives. 2. Why has the HRM function increased in stature and influence in many organisations? 3. Define HRM and outline its features clearly. 4. Why is it correct to say all managers are involved in the HRM function? 5. Describe HRs role as a strategic partner in formulating and in executive strategy. 6. What skills/competencies do HR professionals need to add value to the HR function? 7. Are people always an organisations most value assets? Why or why not? 8. Do pressures on cost containment work against effective management of people? Why or why not? 9. How do you think the internet will change the way in which HR processes, such as hiring, compensating, evaluating, and benefits are performed? 10.Arrange yourself in small groups of four or five students and compare and contrast the differences among the organisations you investigated. Can you isolate any factors that appear to influence how an organisation perceives the value of its employees? 11.Assume the position of a consultant hired to assess the approach towards human resources management taken by a client organisation. What factors might you evaluate whether an organisation uses a traditional or strategic approach to managing its human resources
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TOPIC 2 _____________________________________________________________ 2. JOB ANALYSIS

LEARNING OUTCOMES After you have read this topic you should be able to: Discuss the nature of job analysis Identify how job analysis information is used in other HR incentives Explain the process of job analysis Distinguish between job descriptions and job specifications Discuss why job analysis is changing as organisations change 2.1WHAT IS JOB ANALYSIS? Job analysis is a formal and detailed examination of jobs. It is a systematic investigation of the tasks, duties and responsibilities necessary to do a job. A task is an identifiable work activity carried out for a specific purpose. A duty is a larger work segment consisting of several tasks that are performed by an individual. 2.2USES OF JOB ANALYSIS Job analysis helps in understanding by drawing attention to a unit of work and its linkage with other units of work. More specifically, the use of job analysis may be summarised thus: a) Human resource planning: job analysis helps in forecasting human resource requirements in terms of knowledge and skills. b) Recruitment: job analysis is used to find out how and when to hire people for future job openings. c) Selection: without a proper understanding of what is to be done on job, it is not possible to select the right person. d) Placement and orientation: after selecting people, they have to be placed on jobs best suited to their interests, activities and aptitudes. e) Training: if there is any confusion about what the job is and what is supposed to be done, proper training efforts cannot be initiated. f) Counselling: managers can properly counsel employees about their careers when they understand the different jobs in the organisation. g) Employee safety: a thorough job analysis reveals unsafe conditions associated with a job.

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h) Performance appraisal: by comparing what an employee is supposed to be doing, to what the individual has actually done, the worth of that person can be assessed. i) Job design and redesign: once the jobs are understood properly, it is easy to locate weak spots and undertake remedial steps. j) Job evaluation: job analysis helps in finding the relative worth of a job, based on criteria such as degree of difficulty, type of work done, skills and knowledge. 2.3THE PROCESS OF JOB ANALYSIS The major steps involved in job analysis are as follows: a. Organisational analysis: an overall picture of various jobs in the organisation has to be obtained. This is required to find the linkages between jobs and organisational objectives, interrelationships between jobs and contribution of various jobs to the efficiency and effectiveness. b. Selection of representative positions to be analysed: it is not possible to analyse all the jobs. A representative sample of jobs to be analysed is decided keeping the cost and time constraints in mind. c. Collection of job analysis data: this step involves the collection of data on the characteristics of the job, the required behaviour and personal qualifications needed to carry out the job effectively. d. Preparation of job description: this step involves describing the contents of the job in terms of functions, duties, responsibilities, operations, etc. e. Preparation of job specification: this step involves conversion of the job what description statements into a job specification. 2.4WHO SHOULD CONDUCT THE JOB ANALYSIS? It is always better to use supervisors, job incumbents or some combinations of these to obtain information about jobs in organisation. The job incumbents offer a clear view of what work is actually done as against what work is supposed to be done. Further, involving job incumbents in the job analysis process might increase their acceptance of any work changes stemming from the results of analysis. 2.5JOB DESCRIPTION A job description (JD) is a written statement of what the job holder does how it is done, under what conditions it is done and why it is done. It describes what the job is all about, throwing light on job content, environment and conditions of employment. JDs are descriptive in nature and defines the purpose and scope of a job. The main purpose of writing a job description is to differentiate the job from other jobs and state its outer limits.
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 Contents: A job description usually covers the following information Job title: tells about the job title, code number and the department where it is done. Job summary: a brief write-up about what the job is all about. Job activities: a description of the tasks done, facilities used, extent of supervisory help, etc. Working conditions: the physical environment of job in terms of heat, light, noise and other hazards Social environments: size of work group and interpersonal interactions required to do the job. USES OF JOB DESCRIPTION Job description has several uses, such as: Preliminary drafts can be used as a basis for productive group discussions, particularly if the process starts at the executive level. It aids in the development of job specifications, which are useful in planning, recruitment, and training and in hiring people with required skills. It can be used to orient new employees towards basic responsibilities and duties. It is a basic document used in the developing performance standards. It can be used for job evaluation and wage and salary administration techniques. Moreover; a job description enables the manager to frame suitable questions to be asked during an interview. It is particularly helpful when the job application form is used as a tool for eliminating the unfit personnel. According to Zerga, who analysed 401 articles on the job description about 30 years ago, a job description helps us in: Job grading and specification Transfers and promotions Adjustments of grievances Defining and outlining promotional steps Establishing a common understanding of the job between employers and employees Investigating faulty work procedures or duplication of papers Maintaining, operating and adjusting machinery Time and motion studies Defining the limits of authority Facilitating job placement Studies of health and fatigue
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Scientific guidance Determining jobs suitable for occupational therapy Providing hiring specifications Providing performance indicators

Job descriptions also help executives, especially when they jointly discuss each others responsibilities. Overlapping or confusion can then be pointed out, questions can be raised about ambiguous areas and solutions can be drafted, which become a vehicle for organizational change and improvement. Some companies have more than one description for each job. A detailed version may be used in planning and hiring of management. 2.6.1 Problems with Job Description It is not easy to reduce all the essential components of a job in the form of a clear and precise document. Job descriptions are sometimes not updated as job duties change. They can limit the scope of activities of the holder, reducing organisational flexibility. 2.6.2 Writing a clear and specific Job Description The JD should indicate the nature and scope of the, including all important relationships. It should be brief, factual and precise. More specific words be chosen to show (i) the kind of work, (ii) the degree of complexity, (iii) the degree of skill required, (iv) the extent to which the problems are standardised and (v) the degree and type accountability. The extent of supervision available should also be clearly stated. The reporting relationships must also be clearly indicated. 2.6.3 Mode of writing Firstly, get the questionnaire about the job filled in by the immediate supervisor of employees. Secondly, the job analyst must observe the actual work done by the employee and complete the job description form. Thirdly, every effort must be made to involve the employee and the supervisor while finalising the JD. Finally, keep the JD up-to-date by keeping track of changing conditions and incorporating the relevant ones as and when needed.

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2.7JOB SPECIFICATION A job specification summarises the human characteristics needed for satisfactory job completion. It tries to describe the key qualifications someone needs to perform the job successfully. It spells out the important attributes of a person in terms of education, experience, skills, knowledge and abilities to perform a particular job. The job specification is a logical outgrowth of a job description, for each job description, it is desirable to have a job specification. This helps the organisation to determine what kind of persons is needed to take up specific jobs. The personal attributes are described through a job specification may be classified into three categories: Essential attributes: skills, knowledge and abilities (SKAs) a person must process. Desirable attributes: qualifications a person ought to process. Contra-indicators: attributes that will become a handicap to successful job performance. A job specification can be developed by talking with the current job holders about the attributes required to do the job satisfactorily. It is useful in the selection process because it offers a clear set of qualifications for an individual to be hired for a specific job. REVIEW QUESTIONS 1. Distinguish between job analysis, job description, job specification and role analysis. 2. What is job analysis? Describe the techniques used for analysis jobs. What is job description? Describe its features. How would you prepare a job description? Explain through examples. Multiple Choice Questions Select the most appropriate one 3. Which of the following is not offered in a job analysis? a. Worker attributes b. Performance appraisals c. Working conditions d. Job descriptions 4. The advantage of employing various methods of job analysis is a. Cost b. Complexity c. Accuracy d. Time e. Participation by job incumbents and managers 5. Job descriptions should be reviewed by a. Supervisors
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b. Job incumbents c. Human resource department d. None of the above e. All of the above TRUE/FALSE Questions 6. Supervisors should not be involved in job analysis. 7. Job descriptions are little more than a list of tasks. 8. Job analysis is an informal examination of jobs. 9. Job analysis helps in forecasting human resource requirements. 10.Jobs are generally evaluated by groups, not individuals.

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TOPIC 3 _____________________________________________________________ 3. THE HUMAN RESOURCES ENVIRONMENT ____________________________________________________________ LEARNING OUTCOMES After you have read this topic you should be able to: Strategic Human Resource Management Traditional HR versus strategic HR Meaning, objectives and importance of HRP Outline the HRP process Why an internal assessment of current jobs and skills is important to HRP The factors to be taken into account while forecasting the supply and demand for Human resources in an organisation 3.1INTRODUCTION While formulating the strategic plan HR management can play a vital role, especially in identifying and analysing external threats and opportunities. Environmental scanning that may be crucial to the company's success. HR management can also offer competitive intelligence (like new incentive plans being used by competitors, data regarding customer complaints etc.) that may be helpful while giving shape to strategic plans. Globalisation, deregulation and technological innovation have- in recent times- created the need for rather, faster and more competitive organisations. Under the circumstances, employee behaviour and performance is often seen as the best bet to push competitors to a corner and enhance productivity and market share. HR practices build competitiveness because they allow for strategic implementation, create a capacity for change and instill strategic unity.

Aspects of an organisation's internal and external environment in the changing workplace. There are various internal and external environment factors that can influence an organisation and its success. Some external factors, such as world economic conditions and capital availability, are almost impossible to control, but the organisation management must guide and inspire internal operations to ensure a competitive position in the marketplace. The main characteristics of an
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organisations internal and external environment in the changing workplace we face today are, marketability and innovation, operational efficiency, competition and economic factors. Internally, organisations these days need to be marketing machines. Customers expect value and with their ability to access data and product information without the help of the organisation, consumer demands include innovation and effective customer service. Consumers can easily compare prices and features on the Internet, so organisations need to enter the market environment quickly and definitively to ensure success. To be competitive on a world market scale an organisation needs to have an innovative product or service that is priced fairly and has an excellent marketing plan. Operational efficiency comes into play here as it is required to keep the price competitive. An organisation needs to ensure it has dynamic leadership and that cash flow is available. Sales revenue needs to be driven by marketing management by developing creative and effective ways to encourage customer purchases. The competition of the external environment shapes an organisations landscape. Company executives will often base their business strategies on other firms actions and gaining market share is their main goal. Taking market share from an inferior competitor is the most obvious way to accomplish growth objectives. However, by increasing promotional budgets to outspend smaller companies that cannot afford that type of publicity is another way to gain market share. The aspect of the external environment that has the biggest impact on an organisation is the economic conditions. Interest rates can stop a business expanding if they are high while taxation rates can feed economic expansion An organization's environment plays a vital role in its optimum functioning. When an organization handles its environment properly, it can handle all. The external factors that help organisations achieve optimal function are as follows: Economy: Economy plays a vital role in the success of a company. The economic growth, inventory levels, inflation rate, future trends, exchange rates, etc all determine the success of a business. Government: Government plays a vital role in forming the political climate and stability of a country. The policies of a government will define the corporate and personal taxes, export restrictions, import tariffs etc.
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 Legal: The laws of a country determine the labor laws, union laws, licensing laws etc. Technology: Technology is important because a company must follow it in order to achieve success. The level of technology determines the industrial productivity, new products and services, cost and accessibility of services etc. Social factor always have effect on business. For example, if there are change in consumer taste then this may effect businesses products. Therefore businesses need to carry out market research to identify customers need and want in order to develop new product. Therefore, in doing jobs people have to protect themselves gains hazardous influences of the environment and keep their personal health and safety on top . Managers have to see upon these things and its the Human Resource who has to play a key role in guiding towards awareness The internal factors are as follows: Management System Skill level of Labour Wastage Cost Production Method Inventory Management System Technical Knowledge Suppliers Shareholders Distributors Employees Partners Labor Supply

3.2STRATEGIC HUMAN RESOURCE MANAGEMENT SHRM is the pattern of planned human resource developments and activities intended to enable an organisation to achieve its goals (Wright and McMahan). This means accepting the HR function as a strategic partner in both the formulation of the company's strategic, as well as in the implementation of those activities through HR activities. HR function can also throw light on company's internal strengths and weaknesses. For example, IBM's decision to buy Lotus was probably prompted in part by IBM's conclusion that its own human resources were inadequate for the firm to reposition itself as an industry leader in networking systems (Dessler). Some firms even develop their strategies based on their own HRbased competitive advantage. Software Majors, Wipro, TCS have not slowed
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down their recruitment efforts during the lean periods, pinning hopes on their own exceptionally talented employee teams. In fact they have built their strategic and operating plans around outsourcing and sourcing contracts from US, Europe, Japan and Germany which would help them exploit the capabilities of their employees fully. HR has a great role to play in the execution of strategies. For example, HDFC's competitive strategy is to differentiate itself from its competitors by offering superior customer service at attractive rates (searching the right property, finishing legal formalities, offering expert advice while negotiating the deal, competitive lending rates, fast processing of applications, offering other financial products of HDFC at concessional rates, door-to-door service as per customers' choice etc. (HDFC's growth architecture, Business Today, Jan 6, 2001). Since the same basic services are offered by HDFC's competitors such as LIC Housing Finance GIC Housing Finance, banks and private sector, players like Dewan Housing Finance, Ganesh Housing, Live Well Home, Peerless Abassan etc. HDFC's workforce offers a crucial competitive advantage (highly committed, competent and customer-oriented workforce). HR can help strategy implementation in other ways. It can help the firm carry out restructuring and downsizing efforts without rubbing employees on the wrong side - say, through outplacing employees, linking rewards to performance, reducing welfare costs, and retraining employees. HR can also initiate systematic efforts to enhance skill levels of employees so that the firm can compete on quality. 3.3TRADITIONAL HR VERSUS STRATEGIC HR SHRM realises that people can make or break an organisation because all decisions made regarding finance, marketing operations or technology are made by an organisations people. So it accords highest priority to managing people and tries to integrate all HR programmes and policies with the overall corporate strategy. It compels people at all levels to focus more on strategic issues rather than operational issues. More importantly, it believes that there is no best way to manage people in any given organisation. Even within a given industry, HR practices can vary extensively, from one organisation to another. Armed with such a flexible approach, SHRM tries to develop a consistent, aligned collecting of practices, programmes and policies to facilitate the achievement of the organisation's strategic objective

3.4THE EVOLVING ROLE OF STRATEGIC HUMAN RESOURCE MANAGEMENT Strategic HR shifts attention, as against the traditional HR's focus on employee relations, to partnerships with internal and external groups. The focus on managing people is more systemic with an understanding of the myriad factors
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that impact employees and the organisation and how to manage multiple relationships to ensure satisfaction at all levels of the organisation, Strategic HR is transformational in nature, in that it helps the people and the organisation to adopt, learn and act quickly. "It will make sure that change initiatives that are focused on creating high performance teams, reducing cycle time for innovation, or implementing new technology are defined, developed and delivered in a timely way" (ULRICH, 1998). Strategic HR is proactive and considers various time frames in a flexible manner. Likewise it permits employees to process work and carry out job responsibilities in a free-flowing way. Rather than being enveloped by tight controls and excessive regulations, operations are controlled by whatever is necessary to succeed, and control systems are modified as needed to meet changing conditions. Job design is organic, specialisation is replaced by cross training and independent tasks are replaced by teams, encouraging autonomy at various levels. Above all, strategic HR believes that the organisation's key assets are its people. It realizes that an organisation can have competitive edge over its rivals if it is able to attract and retain knowledge workers who can optimally utilise and manage the organisation's critical resources. In the final analysis people are the organisation's only sustainable competitive advantage [Pfeffer, 1994]. While running the show, strategic HR, of course, argues that any individual in an organisation that has responsibility for people is an HR manager, regardless of the technical area in which he or she works. 3.5MANPOWER PLANNING Human Resource Planning (also called employment or personnel or manpower planning) is essentially the process of getting the right number of qualified people into the right job at the right time so that an organisation can meet its objectives. It is a system of matching the supply of people (existing employees and those to be hired or searched for) with openings the organisation expects over a given time frame. Human Resource Planning (HRP) is a forward looking function. It tries to assess human resource requirements in advance keeping the production schedules, market fluctuations, demand forecasts, etc., in the background. The human resource plan is subject to revision, of course, and is tuned to the requirements of an organisation from time to time. It is an integral part of the overall corporate plan and reflects the broad thinking of management about manpower needs within the organisation. The focus of the plan is always on getting right number of qualified people into the organisation at the right time. To this end, human resource plans are prepared for varying time periods, i.e.,
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short term plans covering a time frame of 2 years and long term plans encompassing a period of 5 or more years. 3.5.1 Need for Manpower Planning The basic purpose of having a human resource plan is to have an accurate estimate of the number of employees required, with matching skill requirements to meet organizational objectives. It provides information about the manner in which existing personnel are employed, the kind of skills required for different categories of jobs and human resource requirements over a period of time in relation to organisational objectives. It would also give an indication of the lead time that is available to select and train the required number of additional manpower. More specifically, HR planning is required to meet the following objectives: Forecast personnel requirements: HR planning is essential to determine the future manpower needs in an organisation. In the absence of such a plan, it would be difficult to have the services of right kind of people at the right time. Cope with changes: HR planning is required to cope with changes in market conditions, technology, products and government regulations in an effective way. These changes may often require the services of people with the requisite technical knowledge and training. In the absence of an HR plan, we may not be in a position to enlist their services in time. Use existing manpower productively: By keeping an inventory of existing personnel in an enterprise by skill, level, training, educational qualifications, work experience; it will be possible to utilize the existing resources more usefully in relation to the job requirements. This also helps in decreasing wage and salary costs in the long run. Promote employees in a systematic manner: HR planning provides useful information on the basis of which management decides on the promotion of eligible personnel in the organisation. In the absence of an HR plan, it may be difficult to ensure regular promotions to competent people on a justifiable basis. 3.5.2 Benefits of Manpower Planning Human Resource Planning is a highly important and useful activity. If used properly, it offers a number of benefits: Reservoir of talent: The organisation can have a reservoir of talent at any point of time. People with requisite skills are readily available to carry out the assigned tasks.

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 Prepare people for future: People can be trained, motivated and developed in advance and this helps in meeting future needs for high-quality employees quite easily. Likewise, human resource shortages can also be met comfortably (when people quit the organisation for various reasons) through proper human resource planning. Expand or contract: If the organisation wants to expand its scale of operations, it can go ahead easily. Advance planning ensures a continuous supply of people with requisite skills who can handle challenging jobs easily. Cut costs: Planning facilitates the preparation of an appropriate HR budget for each department or division. This, in turn, helps in controlling manpower costs by avoiding shortages/excesses in manpower supply. The physical facilities such as canteen, quarters, school, medical help, etc., can also be planned in advance. Succession planning: Human Resource Planning, as pointed out previously, prepares people for future challenges. The 'stars' can be picked up and kept ready for further promotions whenever they arise. All multinational companies for example, have this policy of having a 'hot list' of promising candidates prepared in advance e.g., HLL, Proctor & Gamble, Godrej consumer products etc. Such candidates are rolled over various jobs and assessed and assisted continuously. When the time comes, such people 'switch hats' quickly and replace their respective bosses without any problem. 3.6PROCESS OF HUMAN RESOURCE PLANNING The process of HRP usually followed in a large organisation, consists of the following steps: 3.6.1 Forecasting the Demand for Human Resources Most firms estimate how many employees they require in future. The demand for human talent at various levels is primarily due to the following factors: a. External challenges: These challenges arise from three important sources: Economic developments: Liberalization, opening up of banking sector, capital market reforms, the on-line trading systems have created huge demand for finance professionals during 1990-1995 in India. The late 90s saw the rise of manufacturing, FMCG, Pharmaceuticals, Auto-components, Healthcare and Chemical Industries in a steady manner. Consequently, the demand for Engineering and Management graduates, Scientists and Healthcare professionals has picked up in recent times. Political, legal, social and technical changes: The demand for certain categories of employees and skills is also influenced by changes in political, legal and social structure in an economy. Likewise, firms employing latest technology in construction, power, automobiles, software, etc., have greatly
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enhanced the worth of technicians and engineers during the last couple of ears. Technology, however, is a double-edged weapon and hence, its impact on HR plans is difficult to predict. For example, computerization programme in Banks, Railways, Post and Telegraph Departments may reduce demand in one department (book keeping, for example) while increasing it in another (such as computer operations). High technology with all its attendant benefits may compel organisations to go lean and downsize workforce suddenly. Employment planning under such situations becomes complicated. Competition: Companies operating in fields where a large number of players are bent upon cutting each other's throat (with a view to enhance their market shares) often reduce their workforce. Competition is beneficial to customers but suicidal for companies operating on thin margins. Such companies have to necessarily go 'lean' by reducing their workforce. On the other hand, companies that are doing well and progressing smoothly will always look for people with critical skills. b. Organisational decisions: The organisation's strategic plan, sales and production forecasts and new ventures must all be taken into account in employment planning. If Britannia Industries Ltd. expects higher demand for biscuits and bread, the long-term HR plan must take this into consideration. Likewise, if it tries to venture into other lucrative fields such as milk based products and confectionery items, the demand for people possessing requisite skills in those areas in the next couple of years should be looked into carefully. c. Workforce factors: Demand is modified by retirements, terminations, resignations, deaths and leaves of absence. Past experience, however, makes the rate of occurrence of these actions by employees fairly predictable. d. Forecasting techniques: The manpower forecasting techniques commonly employed by modern organisations are given below: Expert forecasts: In this method, managers estimate future human resource requirements, using their experiences and judgments to good effect. Trend analysis: HR needs can be estimated by examining past trends. Past rates of change can be projected into the future or employment growth can be estimated by its relationship with a particular index. 3.6.2 Preparing Manpower Inventory (Supply Forecasting) The basic purpose of preparing manpower inventory is to find out the size and quality of personnel available within the organisation to man various positions. Every organization will have two major sources of supply of manpower: internal and external. 3.6.2.1 Internal labour supply: A profile of employees in terms of age, sex, education, training, experience, job level, past performance and future potential
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should be kept ready for use whenever required. Requirements in terms of growth/diversification, internal movement of employees (transfer, promotions, retirement, etc.) must also be assessed in advance. The possibilities of absenteeism and turnover should be kept in mind while preparing the workforce analysis. Through replacement charts or succession plans, the organisation can even find out the approximate date(s) by which important positions may fall vacant. Frequent manpower audits may be carried out to find out the available talent in terms of skills, performance and potential. 3.6.2.2 External Labour supply Labour market: The geography area from which employee area recruited for a particular job Factors Affecting the External supply of human resource It is unrealistic to assume that every future vacancy can be filed from within an organization. There is particular true for international displaces where there is a global market for talent and the completion is fierce. Consequently, the organization must tap into the external lab our market (local, regional, interstate or international). Thus the HR manager needs to be alert to demographic changes such as the ageing population. Ageing Population: Occurs when the number of older people increase relative to the number of young people in the population OUTSOURCING: Subcontracting work to an outside company that specializes in and is more sufficient ta doing that kind of work Some of the important forecasting techniques may be summarized thus: (a) Staffing table: It shows the number of employees in each job. It tries to classify employees on the basis of age, sex, position, category, experience, qualifications, skills, etc. A study of the table indicates whether current employees are properly utilized or not. (b) Markov analysis: this technique uses historical rates of promotions, transfer and turnover to estimate future availabilities in the workforce. Based on past probabilities, one can estimate the number of employees who will be in various. (c) Skills inventory: A skills inventory is an assessment of the knowledge, skills, abilities, and experience and career aspirations of each of the current employees. This record should be updated at least every 2 years and should include changes such as new skills, additional qualifications, changed job duties etc. Of course, confidentiality is an important issue in setting up such an inventory. Once established, such a record helps an organisation to quickly match forthcoming job openings with employee backgrounds. 3.6.3 Determination of the Quality of Personnel
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The existing number of personnel and their skills (from human resource inventory) are compared with the forecasted manpower needs (demand forecasting) to determine the quantitative and qualitative gaps in the workforce. A reconciliation of demand and supply forecasts will give us the number of people to be recruited or made redundant as the case may be. 3.6.4 Formulating HR Plans Organisations operate in a changing environment. Consequently, Human resource requirements also change continually. Changes in product mix, union agreements, and competitive actions are some of the important things that need special attention. The human resource requirements identified along the procedure outlined in the above box need to be translated into a concrete HR plan, backed up by detailed policies, programmes and strategies (for recruitment, selection, training, promotion, retirement, replacement, etc.). Recruitment plan: Will indicate the number and type of people required and when they are needed; special plans to recruit right people and how they are to be dealt with via the recruitment programme. Redeployment plan: Will indicate the programmes for transferring or retraining existing employees for new jobs. Redundancy plan: Will indicate who is redundant, when and where; the plans for retraining, where this is possible; and plans for golden handshake, retrenchment, lay-off, etc. Training plan: Will indicate the number of trainees or apprentices required and the programme for recruiting or training them; existing staff requiring training or retraining; new courses to be developed or changes to be effected in existing courses. Productivity plan: Will indicate reasons for employee productivity or reducing employee costs through work simplification studies, mechanization, productivity bargaining; incentives and profit sharing schemes, job redesign, etc. Retention plan: Will indicate reasons for employee turnover and show strategies to avoid wastage through compensation policies; changes in work requirements and improvement in working conditions. Control points: The entire manpower plan is subjected to close monitoring from time to time. Control points be set up to find out deficiencies, periodic updating of manpower inventory, in the light of changing circumstances, be undertaken to remove deficiencies and develop future plans. 3.6.5 Job Diagnostic Survey Job Diagnostic Survey (JDS) is intended to: (a) diagnose existing jobs to determine whether (and how) they might be redesigned to improve employee
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motivation and productivity, and (b) evaluate the effects of job changes on employees. The instrument is based on a specific theory of how job design affects work motivation, and provides measures of (a) objective job dimensions, (b) individual psychological states resulting from these dimensions, (c) affective reactions of employees to the job and work setting, and (d) individual growth need strength (interpreted as the readiness of individuals to respond to "enriched" jobs). 3.6.6 Responsibility for HRP Top level executives are responsible for HR planning as it is one of the important factors influencing the success of an organisation. The plans are usually prepared by the Human Resource Division in consultation with other corporate heads. The responsibility and accountability for manpower aspects of various divisions is on their respective heads. They should undertake their own appraisals of future needs in such a way as to provide a concrete basis for organisation-wide forecasting and planning. The Human Resource Division must offer counsel and advice to various divisional heads and coordinate the various manpower estimates from time to time. Prof. Geisler outlined the responsibilities of Human Resource Department in respect of HR planning thus: Assist and counsel operating managers to plan and set objectives. Collect and summarise manpower data keeping long-run objectives and broad organisational interests in mind. Monitor and measure performance against the plan and keep top management informed about it. Provide proper research base for effective manpower and organisational planning. Limitations The problems faced by human resource professionals while preparing or administering HR Plans may be summarised thus: 3.6.7 Problems in HRP Accuracy: Projecting manpower needs over a period of time is a risky one. It's not possible to track the current and future trends correctly and convert the same into meaningful action guidelines. Factors such as absenteeism, labour turnover, seasonal trends in demand, competitive pressures, technological changes and a host of other factors may turn the best of manpower plans into fashionable, decorative pieces. Support: Planning is generally undertaken to improve overall efficiency. In the name of cost cutting, this may ultimately help management weed out unwanted labour at various levels. The few efficient ones that survive such
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frequent onslaughts complain about increased workload. Support from management is equally missing on more than one occasion. They are unwilling to commit funds for building an appropriate human resource information system. The time and effort involved - with no tangible, immediate gains - often force them to look the 'other way'. Numbers game: HRP, in the final analysis, may suffer due to an excessive focus on the quantitative aspects. The quality side of the coin (consisting of employee motivation, morale, career prospects, training avenues etc.) may be discounted thoroughly. 3.7 EFFECTIVE HUMAN RESOURCE PLANNING A comprehensive survey of human resource planning practices in 45 companies covering a cross-section of the manufacturing industry has indicated the scant attention that is being paid to human resource planning. Human resource specialists have pointed out the fact that most organisations do not have adequate records and information on human resources. Proper retrieval systems also are not available in most cases. The computerised personnel information systems unlike their counterparts in the Western world. Even the current technologies and knowledge in respect of HR planning is not put to use optimally. Such practices, inevitably, lead to ineffective HR planning. To compound the problem further, there are unpredictable external influences on manpower planning such as changes in labour market conditions, technology, market conditions, economic cycles, changes in social and economic values, political changes, etc. In such a scenario, it becomes difficult to forecast the personnel available with an organisation at a future date. While vacancies caused by retirements can be predicted accurately, other factors like resignations, turnover, deaths, and competitive attractions are difficult to forecast. This problem becomes mainly acute in respect of important personnel (especially at the middle and top level) because their replacements cannot be arranged in a short span of time. At times, top management support may not be available to the HR planning efforts. These problems could be avoided, if certain guidelines are followed: a. Objectives: The HR plan must fit in with the overall objectives of the organisation. Important aspects such as people working in the organisation, working conditions, human relationships, etc., must be kept in mind while developing the plan. b. Top management support: The plan must meet the changing needs of the organisation and should enjoy consistent support from top management. c. Employee skills inventory: The organisation must have an up-to-date employee skills inventory showing previous jobs held, tenure on current job, educational and training qualifications, specific knowledge and skills, prior
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work performance, past and current compensation, mobility factors. Markov Analysis (an approach to forecast the internal supply of manpower, tracking past patterns of personnel movements) may be pressed into service while preparing the manpower inventory. d. Human resource information system: To manage employee skills inventories, organisations should maintain computerised human resource information systems containing data on: individual demographics, career progression, appraisals, skills, interests, training, target positions, performance ratings, geographic preferences, promotability ratings, etc. e. Coordination: A separate HR planning division must be created, especially in large organisations, to coordinate HR planning exercises at various levels. The various plans for procurement, promotion and retention of human resources must be integrated properly. The ultimate objective must be to make use of the human resources in an optimal manner by filling future vacancies with the right type of people. REVIEW QUESTIONS 1. Outline the steps involved in the Human Resource Planning process. 2. Why is HR Planning more common among large organisations than among small ones? What are the advantages of HR planning for large organisations? 3. Discuss the problems in HRP. How can you plan for human resources in an effective manner? 4. Define HRP. Describe its characteristics and objectives. Explain the reasons for the growing interest in HRP in recent years. 5. Write short notes on: a. Markov Analysis b. Staffing Tables c. Skill Inventory d. Replacement charts 6. Discuss the various factors that affect the supply of human resources. 7. Distinguish between the quantitative and qualitative approaches to forecasting the need for human resources. 8. Assume you have to develop an HR plan for a new-generation private sector bank having branches in major towns in India: What specific external factors would be important for you to consider? Why? 9. How can organizations develop accurate HR plans which, in turn, are impacted by a number of environmental factors over which managers have little or no control? 10.When employees possess transferable skills and indulge in job hopping, developing effective human resource plans proves to be a tough exercise? Do you agree? Why or Why not?
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TOPIC 4 _____________________________________________________________ 4. MANAGING DIVERSITY AND REGULATORY CHALLENGES ________________________________________________________________ LEARNING OUTCOMES After you have read this topic you should be able to: Discuss the composition of the South African workforce Define diversity management, discuss why it is important Distinguish between the concepts of affirmative action and diversity management Indentify the primary principles of the South African Constitution and other related employment legislation regarding discrimination Discuss the two types of sexual harassment and how employers should respond to complaints. 4.1 SOUTH AFRICAS DIVERSE POPULATION To meet the challenge of the twenty- first century, South African businesses must have access to the best and brightest employees. The workforce must be willing and able to provide the skills and commitment necessary to compete in the world economy. They must be trained in new technologies, sometimes two or three times during their careers, just to stay even. Leaders must emerge from the workplace to motivate and direct the workforce. As in the past, these leaders must be able to understand the organisations and the employees needs and see that both are met. 4.2 MANAGING DIVERSITY A planned systematic and comprehensive managerial process for developing an organisational environment in which all employees, with thei similarities and differences, can contribute to the strategic and competitive advantage of the organisation, and where no-one is excluded on the basis of factors unrelated to productivity. An organisation must be clear about its motivation in managing diversity. Being in compliance with employment equity legislation is not enough. The organisation must recognise the business necessity of having a diverse workforce and tapping the potential if that workforce. Typically, such motivation is articulations mission statements or strategic plans.
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Thomas (1996) also indicates some generic reasons why organisations embark upon a managing diversity process. These include: Tapping into a range of skills which the organisation never had before Attracting and retaining the best talent Promoting greater productivity as a result of employee job satisfaction Developing enhanced creativity and problem-solving and the accompanying timeous responses to diverse customers and markets. Utilising all people to the maximum creating improved relations and communication between organised labour and management. 4.2.1 What is diversity? Diversity in the workplace can be generally defined as recognition of the groups of people who share such common traits. These traits the properties and characteristics that constitute a whole person both unite and divide us. In HR field and in SA organisations, however, the term diversity has three major working definitions: The politically correct term for employment equity/ affirmative action The recruitment and selection of ethnic groups and women. The management of individuals sharing a broad range of common traits. 4.2.2 Stereotypes and prejudices A stereotype is a fixed, distorted generalisation about the members of a group. Stereotyping that stems from the primary dimensions of diversity such as race, gender, age, physical abilities/qualities or sexual orientation and attributes incomplete, exaggerated or distorted qualities to members of this group. Stereotyping is not generalisation. A stereotype usually comes from outside sources, not individual experiences. Stereotyping negates peoples individuality and limits their potential. 4.2.3 Assimilation In the past, the workplace response to an influx of people who were different was assimilation. Assimilation assumed that the dominant groups performance and style were superior to those of persons who were not in the dominant group. This assumption devalued diversity in the organisation and reinforced the value of homogeneity. Finally, the energy and effort used by diverse employees to assimilate drains them of enthusiasm for reaching the goals of the organisation.

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4.2.4 Valuing diversity The first step in getting an organisation to value diversity is to acknowledge the fundamental difference between valuing diversity on the one hand, and employment equity and / or affirmative action on the other. Employment equity is a legal approach to workplace discrimination. Valuing diversity moves past both of these concepts and results in management designed to reap the benefits that a diverse workforce offers. 4.2.5 Diversity programmes Organisational diversity programmes have been in existence for only a few years in South Africa and vary substantially in their content, cost and effectiveness. The most common policies or programmes that employers classify are sexual harassment policies, providing physical access for employees with disabilities and the recruitment and selection of disadvantaged groups and women. The awerness and valuing diversity training programmes have not met with great success in South Africa, howerver. The possible reasons for their lack of success include: No follow-up activities after the initial training Few or no incentives for managers to increase the diversity of their work groups Top managements view of diversity as an HR issue, not as a key to the organisations long term success. 4.2.6 Diversity awerness training Awarness training seeks to motivate employees to recognise the worth and dignity of everyone in the workplace and to treat them with respect. It also seeks to diminish the negative impact of individual prejudices by getting each person to accept responsibility for the problem. Diversity training takes many forms. It may involve encounter-type retreats or quiet consciousness-raising sessions. The following are some exrcercises that may be used in diversity training: Value clarification. A checklist of values like punctuality, honesty, acceptance and financial success is prioritised by all individuals in terms of their own preference and how they believe the organisation ranks the values. Perceptual differences. The participants are asked to give a precise percentage definition of items such as always, frequently and almost always. Problem-solving case studies. The participants are given a partial description of a job applicant and are told to come up with a complete profile.
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 Exploring cultural assumptions. The participants can openly explore assumptions that one group may make about another. Personalising the experience. The awareness trainer may try to make everyone aware of their own uniqueness and of the possibility that they can be different. 4.2.7. Problems with diversity training All too often, many of the things that can go wrong in the process of managing diversity do. One critic of diversity training offers the following examples of mistakes made by diversity trainers: Trainers own psychological values are used as training templates Trainers have political agendas or support and promote particular special interest group. Training is too brief, too late, or only used in response to an existing crisis situation (such as a charge or lawsuit) Training is only provided as remediation and trainees are considered people with problems, or worse, they are considered to be the problem. Training does not distinguish among diversity, employment equity, affirmative action and cross- cultural management. The working definition of diversity is too narrow Political correctness is frequently the prevailing atmosphere People are forced to reveal private feelings or are subjected to uncomfortable, invasive physical and psychological exercise. Individual style of participants are not respected Training is canned, often presented too shallowly or too deeply ignoring the needs of the group and / or its members Only one group is expected to change Resource material contains outdated views and /or information Trainers are often chosen because they represent or are advocates for a specific minority group. Important issues, such as reverse discrimination may be ignored. 4.2.8 Language sensitivity Language sensitivity and guidelines for appropriate language help managers value a diverse workforce. Some rules would seem to be so obvious as to not need repeating. But unfortunately they do. Dont tell jokes directed at a group of people stereotyped because of their primary or secondary characteristics.
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 Use metaphors and analogies from diverse sources and diverse disciples, like the arts and science, as well as sports Avoid terms that devalue people crippled boy, girl or that spotlight differences black doctor, old supervisor Be aware of and sensitive to the preferences of members of diverse groups regarding titles or terminology. 4.2.9 The multicultural organisation. Organisations leading the pack in terms of diversity and reaping the greatest benefits are classified as multicultural organisations. These organisations actually value the diversity that they have created within their workforce. According to Richard Allen and Kendyl Montgomery (2001) this can be realised through a model of planned change consisting of three phases (see Figure 4.1). The three steps as indicated in figure 4.1 will be discussed briefly. Step 1: Unfreezing Top management need to begin the process of unfreezing the current culture by changing the system within which it operates. One indicator of successful diversity programmes is diverse company leadership, eg, creating diverse top management teams and boards of directors. One this done , top management must then create a vision for the future and communicate it to the rest of the organisation. Step 2: Moving Once the initial steps have been taken to unfreeze the culture, management must then move through a number of steps to achieve a complete culture change. This will include practices targeted at under-represented groups such as recruiting and outreach programmes, co-op and internship programmes, training and educational programmes and mentoring and career development programmes. However, it is important to remember that each of these practices, if done separately and not as part of a planned approach to organisational change, is much less likely to be successful in changing the organisations culture. Step 3: Refreezing For the whole process to be successful, it is important that the changes of the moving stage (step 2) are institutionalised. This objective can be accomplished by aligning the organisational policies, procedures and reward systems to the
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new culture. Without this critical step, the organisation will run the risk of going back to its old ways. The refreezing process can begin by reviewing existing policies and procedures to ensure they support rather than conflict with the new culture diversity. Once these steps have been completed successfully, the company will be in a much better position to reap the benefits of a truely multicultural organisation. Figure 4.1 A model for creating diversity
Step 1 : Unfreezing Top management commitment and vision Management symbolic communication and actions Goal setting

Step 2 : Moving Recruitment and outreach programmes Co-op and internship programmes

Training and education Mentoring and career development

Step 3 : Refreezing Policies and procedures Job descriptions Reward systems

Competitive advantage Improved creativity and decision making More agile and adaptive workforce Improved ability to market to a broader demographic area Increased market share

Source: Allen, R.S and Montgomery, K.A.(2001) Applying an organizational development approach to creating diversity. Organizational Dynamics, 30(1), 155. Used with permission from Elsevier.
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4.3 SEXUAL HARASSMENT Sexual Harassment has developed into one of the most controversial, complex and perhaps widespread HR problems in the world. The study found that only 5% of the men and women who had experienced harassment chose to report it. The primary reasons why the other 95% did not report their harassment include the following: The fear of losing ones job

The need for a future job reference The possibility of being considered a troublemaker The assumption that nothing would change if harassment was reported Concern about being accused of inviting the harassment A reluctance to draw public attention to private lives The prospect of emotional stress for filing a lawsuit and undergoing long, costly legal procedures.

4.3.1 Defining sexual harassment The Code of Good Practice on the handling of sexual harassment has provided a definition in this regard, which reads:

Sexual harassment is unwanted conduct of a sexual nature. The unwanted nature of sexual harassment distinguishes it from behaviour that is welcome and mutual. Sexual attention becomes sexual harassment if. The behaviours is persisted in, although a single incident of harassment can constitute sexual harassment, and /or The recipient has made it clear that the behaviour is considered offensive, and /or The perpetrator should have known that the behaviour is regarded as unacceptable.

4.3.2 Forms of Sexual Harassment 4.3.2.1 This for that or quid pro quo sexual harassment This form of sexual harassment relates to a situation where a victim is coerced into acceding to the sexual advances of a superior in exchange for work-related
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benefits and in so doing a link is established between sexual advances and the receipt or denial of specific employment benefits. The quid pro quo form of sexual harassment therefore describes a situation in which a supervisor offers job benefits in exchange for sexual favours. Quid pro quo harassment thus represent thus represents a breach of trust and/or abuse of power. 4.3.2.2 Cant take it any more or hostile environment This type of sexual harassment occurs when a co-worker or supervisor in the workplace makes sexual advances or comments to an employee that, while not affecting promotions or the future of the employee's job, makes the working environment of the employee offensive and hostile. In general, the comments tend to affect the employee's ability to do her job Some instances of hostile environment sexual harassment can be:

Personal questions of a sexual nature Vulgarities and other offensive language Physical conduct that is sexual or degrading to any reasonable person Any sexually explicit or offensive pictures or literature that is in plain site of other employees

4.3.3 Drawing up a good sexual harassment prevention policy.

Zero tolerance statement. One of the first and basic issues that needs to be included in a sexual harassment policy is a statement of zero tolerance Definition of sexual harassment. A definition of sexual harassment that is simple and clear must be highlighted in the policy. Examples of prohibited conduct. To enhance the policy, few clear examples of prohibited conduct that will or could be considered sexual harassment must be included. Duties and responsibilities. It is important to state in the policy that it is the duty of every person in the company to report questionable sexual conduct promptly. No retaliation. The policy, should state further that there will be no retaliation in respect of employees who report inappropriate sexual conduct or assist in its prevention. Complaint procedure. A proper complaint procedure should also be included in the policy. This is important, as it will help employees on what to do and where to go if they experience or observe sexual harassment.
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Investigating procedure. The investigating procedure should clearly spelled out in the policy. For example, the individual who will conduct the procedure needs to be disclosed. The policy should also stipulate that the results of the investigation will remain confidential shared only with those individuals who need to know.

4.3.4 Providing effective sexual harassment training Implementing a sexual harassment training programme for all employees is vital as this will enable the workforce to have the same knowledge and understanding of the issue. The key objective of this training is to eliminate sexual harassment from the workplace altogether. A properly implemented training programme can have an extremely positive effect on employee morale provided that the focus is on communication and empowerment tools for employees. Fighting sexual harassment can be used as a method for improving teamwork and solidifying the employees with a common goal. It is also important that, besides the general training, managers are trained to be able to recognise and deal with sexual harassment issues. They need to know the types of conduct that constitute sexual harassment, the procedures for taking a complaint and reporting it to the proper channels and methods for implementing prompt corrective action and identifying and dealing with their own behaviour. According to Orlov and Roumell, the following primary topics need to be addressed in any sexual harassment training programme:

Outline the legal definitions of sexual harassment with specific examples of two types of harassment Stress the concept of unwelcome sexual advances Clarify the company existing sexual harassment prevention policy and offer suggestions for improvements. Reinforce the organisations commitment and top managements support for maintaining a workplace free of sexual harassment. Emphasise each individual employees personal responsibility for the following the organisations policy in this regard and maintaining a workplace free of sexual harassment.
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Explain retaliation issues and give examples of how they can occur and how to avoid them Use role-playing exercises to heighten the awareness and understanding of what is and what is not appropriate conduct. Use additional role- playing exercises to develop skills for identifying, preventing, and stopping sexual harassing behaviours and other inappropriate conduct at the workplace Offer detailed guidance on how to avoid and how to handle being the target of sexual harassment Carefully instruct on the proper procedures for reporting sexual harassment complaints and a managers responsibility in this regard, listening skills should be stressed. Clarify all sexual harassment complaint investigation procedures and the role managers in investigating a complaint.

4.3.5 The importance of steps taken to prevent sexual harassment cannot be over-emphasized. Those steps should include: Creating a written anti-harassment policy Ensuring proper dissemination of the policy Establishing an effective complaint procedure Encouraging the reporting of sexual harassment Ensuring strict prohibition against retaliation Investigating all complaints promptly and thoroughly Taking appropriate remedial action This is just a thumbnail sketch on the subject

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REVIEW QUESTIONS

1. What are the keys to developing a successful diversity programme 2. Can the stereotypes of senior workers be changed by awareness training? 3. How can an employer minimise its legal liability in the area of sexual harassment 4. Define the two major types of sexual harassment- quid pro quo and hostile environment. Which occurs more often? Which is more serious? 5. What is meant by the term diversity? Why is diversity training an important concern for HR management. 6. Can stereotype of senior workers be changed by awareness training

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TOPIC 5 _____________________________________________________________ 5. MANAGING COMPENSATION AND BENEFITS LEARNING OUTCOMES After you have read this topic you should be able to: Explain the link pay, motivation pay, motivation and performance Define job evaluation and discuss four popular methods of performing it Develop a time-based pay system using pay grades and steps Understand the growth of employee benefits and their organisational objectives Discuss three types of individual incentives

5.1 COMPENSATION OBJECTIVES Organisations have many objectives in designing their compensation systems. The HR specialist must keep in mind the goals of the system and what the organisation needs to accomplish to attain these goals. Primarily, the goals of any organisation in designing a compensation system should be to attract and retain good employees. Figure 5.1 shows the objectives of any compensation system and how they are achieved. 5.1.1 Attracting employees Although most job applicants are not aware of the exact wages offered by different organisations for similar jobs within the local labour market, they do compare job offers and pay scales. Job applicants who receive more than one offer will naturally compare monetary offers. Most employers will try to remain competitive within the local labour market by offering salaries that are similar to those offered by competing employers. Conducting a wage survey is a difficult, expensive process for an individual organisation. A further requirement for conducting wage surveys is determining which information about each job is necessary.

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Figure 5.1 Objectives of a competitive system

Compensation Objectives 1. Attract good applications rate in the

Obtained by Wage survey to determine the going labour market

2. Retain good employee perceive

Job evaluation system that employees as equitable

3. Motivate employee

Reward good performance Offer incentives

4. Comply with the law

Documentation of HR records Government legislation

5.1.2 Retaining good employees After the organisation has attracted and hired new employees, the compensation system should not hinder efforts to retain productive employees. While many factors may cause employees to leave an organisation, inadequate compensation is often the cause of turnover. To retain good employees, the HR Manager must make sure that there is compensation equity within the organisation. Job satisfaction is often considered to be a strong determinant of turnover. However, employee perceptions of inequitable treatment have been found to be even stronger predictors of absence and job turnover than job satisfaction. 5.1.3 Motivation Employees expect that their performances will correlate with the rewards received from the organisation. Generally that perceived relationship takes the form exhibited in figure 5.2.

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Figure 5.2 Motivation and performance model

Employee sets expectations and goals

Performance is evaluated

Employee considers equity of performance rewards

Employees set expectations about rewards and compensation to be received if certain levels of performance are achieved. These expectations determine goals or levels of performance for the future. Employees achieving the desired levels of performance expect a certain level of compensation. If the employees see that hard work and superior performance are recognised and rewarded by the organisation, they will expect such relationships to continue in the future. Therefore, they will set higher levels of performance, expecting higher levels of compensation. To safeguard this relationship of performance and motivation which benefits the organisation and the employee, the organisation must provide the following: Accurate evaluation. Management must develop a system of accurate performance appraisal in order to identify those employees who are outstanding, average and poor performers. Performance rewards. Management should identify which rewards relate to performance levels and tell employees that pay, increased benefits, change in hours or working conditions or recognition will be directly related to high performance. Supervisors feedback. Supervisors must give complete and accurate feedback to employees when appraising their performances. Employees must be told what they are doing well and which performance areas need improvements.

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5.2 JOB EVALUATION Job evaluation is a process of systematically analysing jobs to determine the relative worth of jobs within the organisation. This analysis is the basis of a job hierarchy and pay ranges. The result is a pay system with the pay rate for each job commensurate with its status within the hierarchy of jobs. Job evaluation should not be confused with performance evaluation, the process of determining how well employees are accomplishing their jobs. Job evaluation does not review the employees within a position but rather assesses the worth of the position to the organisation. Through Job Evaluation, management can recruit productive employees to fill positions and maintain internal perceptions of pay equity by paying each position fairly in comparison with all other positions within the organisation. Job evaluation may also be used to involve employees in the evaluation process.

Table 5.1 Advantages and disadvantages of different job evaluation methods. Job evaluation methods Major advantages Job ranking method It is fast and easy to complete Because it can usually be done in hours, it is relatively inexpensive It is easy to explain Major disadvantages It is limited to smaller organisations where employees are very familiar with various jobs The method assumes equal intervals between the rankings and this is usually not true. The method is highly subjective. The classification descriptions are so broad that they do not relate to
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Job Classification Method

Because it has been used by numerous companies for

years it is readily accepted by employees. It is readily adaptable to very large organisations with many offices that are geographically dispersed. Because the classifications are broad and not specific, the system can last for years without substantial change. Point Method It is detailed and specific jobs are evaluated on a component basis and compared against a predetermined scale Employee generally accept this method because of its mathematical nature. The system is easy to keep current as jobs change Because of its quantitative nature, it is easy to assign monetary

specific jobs, this causes employees to question the grades of their respective jobs. Because of the broad and general classifications, job evaluators may abuse the system.

It is relatively time-consuming and costly to develop It requires significant interaction and decision making by the different parties involves in conducting the job evaluations.

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values to jobs Factor comparison method It is relatively detailed and specific jobs are evaluated on a component basis and compared against other jobs. It is usually easier to develop than the point method It is tied to external market wage rates. It is relatively difficult to explain to employees It is not easily adapted to changes in the jobs being evaluated.

Source: Byars, L.L. and Rue, L.W.(2000) Human Resource Management, 6th edn, Irwin/McGraw Hill: Boston ,p.327. Reproduced with permission of the McGraw- Hill 5.3 PAY SYSTEMS The method by which individuals are paid for performing their job constitutes the pay system of the organisation. Generally, people are compensated for the time they contribute to the job or the amount of work they produce on the job. 5.3.1 Methods of compensation Time based systems the more common type, are used for jobs in which employees are paid by the hours worked (hourly) or by the fraction of an annual rate of pay (salaried), such as a week or month. In general, jobs such as blue collar and unskilled positions are hourly paid, while white- collar workers are usually salaried employees who are paid monthly, semimonthly or weekly. Employee- based systems is paying for the skills they learn and use. Jobs that pay employees according to their performance are often referred to as performance-based systems or incentive pay systems. They include piecerate, sales commission and organisation-wide plan.

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5.4 GUIDELINES FOR INCENTIVES PLANS Incentive plans can provide that involvement and in general should adhere to the following guidelines: Bold incentives. Provide bold financial incentives to everyone, from the general manager to the sweeper. The ultimate recognition should be that their performance is linked to improved company performance. At least 25% of base pay should be attainable through incentives. Emphasis on team performance. Everyone in an incentives programme must clearly perceive how they can influence the results. Therefore their additional effort, cost-saving suggestion or emphasis on quality will affect the bottom line. Quick feedback. If possible, at least monthly feedback in terms of group or individual performance and the resulting bonus should be given. The money should be distributed separately from the regular pay cheque. Above average base. In contrast to what might be assumed, base pay should be set above the norm for comparable jobs in the geographical area. With incentives added, total pay will be substantially above the norm. Simple formula. Keep the formula and process straightforward. Peoples motivation to increase productivity and profits will not improve if they do not understand the formula 5.5 BENEFITS The policy of awarding employee benefits has increased dramatically in South Africa since Second World War. For many years, benefits were called fringe benefits. Few organisation, however, award benefits based on employee performance, instead, such benefits as paid vacations and pension plans are tied to factors other than performance. Government influence employee benefits through regulations concerning safety, healthcare, retirement and unemployment compensation and workers compensation.

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Table 5.2 Major employee benefits that are available Retirement plans Retirement fund Provident fund Annuities Health insurance Medical aid Hospitalisation Life/ disability insurance Life Cover Personal Accident Cover Disability cover Paid time off Holidays Vocations Sick leave Compassionate leave Maternity leave Moving leave Paternity leave Study leave Sporting leave Incentive leave

Other benefits Company cars Car allowance Transport allowance Housing subsidy Cash loans Clothing allowance Club subscriptions Bursaries Childcare Employee parking Subscriptions to professional associations.

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REVIEW QUESTIONS 1. Outline at least four reasons why organisation needs a compensation system. 2. Which jobs might effectively use performance- based pay systems? 3. What steps should an HR Specialist take to maximise employee performance motivated by the organisation? 4. What is the difference between employee evaluation and job evaluation? 5. What are the challenges in the design of team-based rewards 6. How can employee benefits attract, retain and motivate employees?

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TOPIC 6 8.ADDENDUM 611 (A): CASE STUDY FOR TUTORIAL DISCUSSION: BBA __________________________________________ WHICH IS MORE IMPORTANT RECRUITMENT OR RETAINING? Upton Electronics Limited is a peering and internationally reputed firm in the electronics industry. It is one of the largest firms in the country. It attracted employees from internationally reputed institutes and industries by offering high salaries, perks, etc. it has advertised for the position of an Electronic Engineer recently. Nearly 150 candidates applied for the job. Mr Sashidhar, an Electronics Engineering Graduate from Indian Institute of technology with 5 years experience in a medium-sized electronics firm, was selected from among the 130 candidates who took tests and interview. The interview board recommended an enhancement in his salary by R 5000 more than his present salary at his request. Mr Sashidar was very happy to achieve this and he was congratulated by a number of people including his previous employer for his brilliant interview performance, and wished him good luck. Mr Sashidar joined Uptron Electronics Ltd, on 21st January, 2002, with great enthusiasm. He also found his join to be quite comfortable and challenging one and he felt it was highly prestigious to work with his company during the formative years and his career. He found his superiors as well as subordinates to be friendly and cooperative. But this climate did not live long. After one year of his service, he slowly learnt about a number of unpleasant stories about the company, management, the superior-subordinate relations, rate of employee turnover, especially at higher level. But he decided to stay on as he had promised several things to the management in the interview. He wanted to please and change the attitude of management through his diligent performance, firm commitment and dedication. He started maximizing his contributions and the management got the impression that Mr Sashidar has settled down and will remain in the company. After some time, the superiors started riding rough-shod over Mr Sashidar. He was over-loaded with multifarious jobs. His freedom in deciding and executing was cut down. He was ill-treated on a number of occasions before his subordinates. His colleagues also started assigning their responsibilities to Mr. Sashidar. Consequently there were imbalances in his family life, social life and organizational life. But he seemed to be calm and contented. Management felt that Mr Sashidar had the potential to bear with many more organisational responsibilities. So the General Manager was quite surprised to see the resignation letter of Mr Sashidar along with a cheque equivalent to a months salary one fine morning
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on 18th January, 2004. The General Manager failed to convince Mr Sashidar to withdraw his resignation. The General Manager relieved him on 25 th January, 2004. The General Manager wanted to appoint a committee to go into the matter immediately, but dropped the idea later. QUESTIONS 1. What prevented the General Manager from appointing committee? 2. What is wrong the recruitment policy of the company? 3. Why did Saharas resignation surprise the General Manager?

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TOPIC 7 7. ADDENDUM 611 (B): ASSIGNMENT QUESTIONS: BBA

PC TRAINING & BUSINESS COLLEGE FACULTY OF BUSINESS, ECONOMICS & MANAGEMENT SCIENCES ASSIGNMENT COVER SHEET NAME OF LEARNER: .. ICAS NO: . QUALIFICATION: . SEMESTER: . ASSESSMENT RECORDS Content 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Total 100% Mark Allocation Examiners Mark SURNAME: ID NUMBER: .. MODULE: .. DATE SUBMITTED: .. Moderators Marks

Remarks

NAME & SURNAME EXAMINER: ----------------------------

SIGNATURE/DATE ------------------------

MODERATOR:

----------------------------

------------------------

VERIFYIER ASSIGNMENT GUIDELINES

----------------------------

--------------------------

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The purpose of an assignment is to ensure that the Learner is able to: Interpret, convert and evaluate text. Have sound understanding of key fields viz principles and theories, rules, concepts and awareness of how to cognate areas. Solve unfamiliar problems using correct procedures and corrective actions. Investigate and critically analyse information and report thereof. Present information using Information Technology. Present and communicate information reliably and coherently. Develop information retrieval skills. Use methods of enquiry and research in a disciplined field.

ASSESSMENT CRITERIA

When the final Mark is allocated the above criteria must be taken into account

A. Content- Relevance: Has the learner Answered the Question B. Research (A minimum of TEN SOURCES is recommended) Reference , books, Internet, Newspapers, Text Books C. Presentation : Introduction, Body, Conclusion, Paragraphs, Neatness, Integration, Grammar / Spelling, Page Numbering, Diagrams, Tables, Graphs, Bibliography

NB: All Assignments are compulsory as they form part of continuous assessment that counts towards the final mark

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ASSIGNMENT FOR BBA HUMAN RESOURCES MANAGEMENT 611 Question One In order to compete through people, HR managers have to do a good job of managing human capital the knowledge, skills and capabilities that add value to organizations. What skill competencies do HR professionals need to add value to the HR function? (20) Question Two Critically analyse the activities of the HR function and draw conclusions as to the degree to which the function contributes to the overall development of agreed business objectives within the organisation this analysis should include reference to the overall effectiveness of human resource planning. (20) Question Three Evaluate the advantages and disadvantages of quality circles. Question Four 4.1 In actual practice it is not always easy to find and select a suitable candidate for a job opening. Discuss some of the challenges and constraints recruiters face when hiring staff. (10) Promotion based either on meritorious performance or continuous service has powerful motivational value. Discuss the purposes and advantages of engaging in a promotion. (10)

(10)

4.2

Question Five Using a PESTLE analysis, Analyse the major external factors that you expect to influence the availability of suitable employees for your organisation. (30)

Total Marks: 100

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