HRM involves managing the people and human resources of an organization. It includes functions like recruitment, training, performance management, and compensation. The objectives of HRM are to meet organizational goals, legal and social responsibilities, and individual employee needs. HRM helps organizations select, develop and motivate high-performing employees while ensuring ethical and lawful treatment. It also assists with managing challenges brought by globalization, reorganizations, new organizational structures and a changing workforce demographic.
HRM involves managing the people and human resources of an organization. It includes functions like recruitment, training, performance management, and compensation. The objectives of HRM are to meet organizational goals, legal and social responsibilities, and individual employee needs. HRM helps organizations select, develop and motivate high-performing employees while ensuring ethical and lawful treatment. It also assists with managing challenges brought by globalization, reorganizations, new organizational structures and a changing workforce demographic.
HRM involves managing the people and human resources of an organization. It includes functions like recruitment, training, performance management, and compensation. The objectives of HRM are to meet organizational goals, legal and social responsibilities, and individual employee needs. HRM helps organizations select, develop and motivate high-performing employees while ensuring ethical and lawful treatment. It also assists with managing challenges brought by globalization, reorganizations, new organizational structures and a changing workforce demographic.
Definition 1 Integration HRM is a series of integrated decisions that form the employment relationships their !"ality contri#"tes to the a#ility of the organi$ations and the employees to achie%e their o#&ecti%es'( Definition 2 Influencing HRM is concerned with the people dimensions in management. Since every organization is made p of people! ac"iring their services! developing their s#ills! motivating them to higher levels of performance and ensring that they contine to maintain their commitment to the organization are essential to achieving organizational o$%ectives. &his is tre! regardless of the type of the organization government! $siness! edcation! health! recreational! or social action.' Definition ( Applicability HRM planning! organizing! directing and controlling of the procrement! development! compensation! integration! maintenance and separation of hman resorces to the end that individal! organizational and social o$%ectives are accomplished.' M)*+,+- ./ HRM0 1 HRM is management fnction that helps managers to recrit! select! train and develop mem$ers for an organization. .$viosly HRM is concerned with the people2s dimensions in organizations. HRM refers to set of programs! fnctions! and activities designed and carried ot 3ore elements of HRM 4eople0 .rganizations mean people. ,t is the people who staff and manage organizations. Management0 HRM involves application of management fnctions and principles for ac"isitioning! developing! maintaining and remnerating employees in organizations. ,ntegration 5 3onsistency0 Decisions regarding people mst $e integrated and consistent. ,nflence0 Decisions mst inflence the effectiveness of organization reslting into $etterment of services to cstomers in the form of high "ality prodcts spplied at reasona$le cost. *pplica$ility0 HRM principles are applica$le to $siness as well as non1$siness organizations too! sch as edcation! health! recreation and the li#e. O)*ECT+,ES O- HRM. / 1. Societal .$%ectives0 &o $e ethically and socially responsi$le to the needs and challenges of the society while minimizing the negative impact of sch demands pon the organization. 1 2. .rganizational .$%ectives0 &o recognize the role of HRM in $ringing a$ot organizational effectiveness. HRM is only means to achieve to assist the organization with its primary o$%ectives. (. /nctional .$%ectives0 &o maintain department2s contri$tion and level of services at a level appropriate to the organization2s needs. 6. Personal Objectives: To assist emlo!ees in ac"ievin# t"eir ersonal #oals$ at least in so %ar as t"ese #oals en"ance t"e in&ivi&'al(s contrib'tion to t"e or#ani)ation* T"is is necessar! to maintain emlo!ee er%ormance an& satis%action %or t"e 'rose o% maintainin#$ retainin# an& motivatin# t"e emlo!ees in t"e or#ani)ation* SCO0E O- HRM. / /rom )ntry to the )7it of an employee in the organization Scope of HRM can $e descri$ed $ased on the following activities of HRM. 8ased on these activities we can smmarize the scope of HRM into 9 different categories as mentioned $elow after the activities. :ets chec# ot $oth of them. HRM *ctivities 1. HR 4lanning 2. ;o$ *nalysis (. ;o$ Design 6. Recritment 5 Selection <. .rientation 5 4lacement =. &raining 5 Development 9. 4erformance *ppraisals >. ;o$ )valation ?. )mployee and )7ective Remneration 1@. Motivation 11. 3ommnication 12. Aelfare 1(. Safety 5 Health 16. ,ndstrial Relations 9 3ategories of Scope of HRM 1. ,ntrodction to HRM 2. )mployee Hiring (. )mployee and )7ective Remneration 6. )mployee Motivation <. )mployee Maintenance =. ,ndstrial Relations 9. 4rospects of HRM RO1E O- HRM 1. *dvisory Role0 HRM advises management on the soltions to any pro$lems affecting people! personnel policies and procedres. a. 4ersonnel 4olicies0 .rganization Strctre! Social Responsi$ility! )mployment &erms 5 3onditions! 3ompensation! 3areer 5 4romotion! &raining 5 Development and ,ndstrial Relations. 2 $. 4ersonnel 4rocedres0 Relating to manpower planning procedres! recritment and selection procedres! and employment procedres! training procedres! management development procedres! performance appraisal procedres! compensation procedres! indstrial relations procedres and health and safety procedres. 2. /nctional Role0 &he personnel fnction interprets and helps to commnicate personnel policies. ,t provides gidance to managers! which will ensre that agreed policies are implemented. (. Service Role0 4ersonnel fnction provides services that need to $e carried ot $y fll time specialists. &hese services constitte the main activities carried ot $y personnel departments and involve the implementation of the policies and procedres descri$ed a$ove. Role of HR Managers B&odayC 1. Hmanitarian Role0 Reminding moral and ethical o$ligations to employees 2. 3onselor0 3onsltations to employees a$ot marital! health! mental! physical and career pro$lems. (. Mediator0 4laying the role of a peacema#er dring disptes! conflicts $etween individals and grops and management. 6. Spo#esman0 &o represent of the company $ecase he has $etter overall pictre of his company2s operations. <. 4ro$lem Solver0 Solving pro$lems of overall hman resorce management and long1term organizational planning. =. 3hange *gent0 ,ntrodcing and implementing instittional changes and installing organizational development programs 9. Management of Manpower Resorces0 8roadly concerned with leadership $oth in the grop and individal relationships and la$or1 management relations. Role of HR Managers B/treC 1. 4rotection and enhancement of hman and non1hman resorces 2. /inding the $est way of sing people to accomplish organizational goals (. ,mprove organizational performance 6. ,ntegration of techni"es of information technology with the hman resorces <. Dtilizing $ehavioral scientists in the $est way for his people =. Meeting challenges of increasing organizational effectiveness 9. Managing diverse wor#force -UNCT+ONS O- HRM A1ONG 2+TH O)*ECT+,ES HRM .$%ectives Spporting HRM /nctions Social .$%ectives B(C :egal 3ompliance 8enefits Dnion Management Relations 3 .rganizational .$%ectives B9C Hman Resorce 4lanning )mployee Relations Recritment 5 Selection &raining 5 Development 4erformance *ppraisals 4lacement 5 .rientation )mployee *ssessment /nctional .$%ectives B(C 4erformance *ppraisals 4lacement 5 .rientation )mployee *ssessment 4ersonal .$%ectives B<C &raining 5 Development 4erformance *ppraisals 4lacement 5 .rientation 3ompensation )mployee *ssessment Managerial -"nctions of HRM 1. 4lanning0 4lan and research a$ot wage trends! la$or mar#et conditions! nion demands and other personnel $enefits. /orecasting manpower needs etc. 2. .rganizing0 .rganizing manpower and material resorces $y creating athorities and responsi$ilities for the achievement of organizational goals and o$%ectives. (. Staffing0 Recritment 5 Selection 6. Directing0 ,ssance of orders and instrctions! providing gidance and motivation of employees to follow the path laid1down. <. Controlling. Reg"lating personnel acti%ities and policies according to plans' O#ser%ations and comparisons of de%iations .perational /nctions of HRM 1. 4rocrement0 4lanning! Recritment and Selection! ,ndction and 4lacement 2. Development0 &raining! Development! 3areer planning and conseling. (. 3ompensation0 Aage and Salary determination and administration 6. ,ntegration0 ,ntegration of hman resorces with organization. <. Maintenance0 Sstaining and improving wor#ing conditions! retentions! employee commnication =. Separations. Managing separations ca"sed #y resignations3 terminations3 lay o4s3 death3 medical sic5ness etc' 3H*::)+-)S ./ HRM ,+ ,+D,*+ )3.+.ME or 3H*::)+-)S ./ M.D)R+ M*+*-)M)+& 1. -lo$alization0 1 -rowing internationalization of $siness has its impact on HRM in terms of pro$lems of nfamiliar laws! langages! practices! competitions! attitdes! management styles! wor# ethics and more. HR managers have a challenge to deal with more fnctions! 4 more heterogeneos fnctions and more involvement in employee2s personal life. 2. Corporate Re/organi$ations. / Reorgani$ation relates to mergers and ac!"isitions3 &oint %ent"res3 ta5e o%er3 internal restr"ct"ring of organi$ations' +n these sit"ations3 it is di6c"lt to imagine circ"mstances that pose a greater challenge for HRM than reorgani$ations itself' +t is a challenge to manage employees7 an8iety3 "ncertainties3 insec"rities and fears d"ring these dynamic trends' (. Ne9 Organi$ational forms. / The #asic challenge to HRM comes from the changing character of competitions' The competition is not #et9een indi%id"al :rms #"t #et9een constellations of :rm' Ma&or companies are operating thro"gh a comple8 9e# of strategic alliances3 forgings 9ith local s"ppliers3 etc' These relationships gi%e #irth to completely ne9 forms of organi$ational str"ct"re3 9hich highly depend "pon a reg"lar e8change of people and information' The challenge for HRM is to cope 9ith the implications of these ne9ly net9or5ed relations more and more3 in place of more comforta#le hierarchical relationships that e8isted 9ithin the organi$ations for ages in the past' 6. 3hanging Demographics of Aor#force0 1 3hanges in wor#force are largely reflected $y dal career coples! large chn# of yong $lood $etween age old sperannating employees! wor#ing mothers! more edcated and aware wor#ers etc. &hese dynamic wor#forces have their own implications for HR managers and from HRM point of view is a tre challenge to handle. <. 3hanged employee e7pectations0 1 Aith the changes in wor#force demographics! employee e7pectations and attitdes have also transformed. &raditional allrements li#e %o$ secrity! hose! and remnerations are not mch attractive today! rather employees are demanding empowerment and e"ality with management. Hence it is a challenge for HRM to redesign the profile of wor#ers! and discover new methods of hiring! training! remnerating and motivating employees. 5 =. +ew ,ndstrial Relations *pproach0 1 ,n today2s dynamic world! even nions have nderstood that stri#es and militancy have lost their relevance and nions are greatly affected $y it. &he trade nion mem$ership has fallen drastically worldwide and the ftre of la$or movement is in danger. &he challenge $efore HRM is to adopt a proactive indstrial relations approach which shold ena$le HR specialist to loo# into challenges nfolding in the ftre and to $e prepared to convert them into opportnities. 9. Renewed 4eople /ocs0 1 &he need of today2s world and $siness is the people2s approach. &he strctre! strategy! systems approach which wor#ed in post war era is no more relevant in today2s economic environment which is characterized $y over capacities and intense competition. &he challenge of HR manager is to focs on people and ma#e them %stifia$le and sstaina$le. >. Managing the Managers0 1 Managers are ni"e tri$e in any society! they $elieve they are class apart. &hey demand decision1 ma#ing! $ossism! and operational freedom. However in the post li$eralization era! freedom given to managers is grossly missed to get rid of talented and hard wor#ing %niors. &he challenge of HRM is how to manage this tri$eF How to ma#e them realize that the freedom given to them is to ena$le them ma#e "ic# decisions in the interest of the organization and not to resort to witch1hnting. ?. Aea#er Society interests0 1 *nother challenge for HRM is to protect the interest of wea#er sections of society. &he dramatic increase of women wor#ers! minorities and other $ac#ward commnities in the wor#force has reslted in the need for organizations to ree7amine their policies! practices and vales. ,n the name of glo$al competition! prodctivity and "ality the interests of the society arond shold not $e sacrificed. ,t is a challenge of today2s HR managers to see that these wea#er sections are neither denied their rightfl %o$s nor are discriminated against while in service. 1@. 3ontri$tion to the sccess of organizations0 1 &he $iggest challenge to an HR manager is to ma#e all employees contri$te to the sccess of the organization in an ethical and socially responsi$le way. 8ecase society2s well $eing to a large e7tent depends on its organizations. STRATEG+C HUMAN RESOURCE MANAGEMENT: , Strategy0 Strategy is a way of doing something. ,t incldes the formlation of goals and set of action plans for accomplishment of that goal.' Strategic Management0 6 * 4rocess of formlating! implementing and evalating $siness strategies to achieve organizational o$%ectives is called Strategic Management' ;e:nition of Strategic Management. / Strategic Management is that set of managerial decisions and actions that determine the long1term performance of a corporation. ,t incldes environmental scanning! strategy formlation! strategy implementation and evalation and control.' &he stdy of strategic management therefore emphasizes monitoring and evalating environmental opportnities and threats in the light of a corporation2s strengths and wea#nesses. Steps in Strategic Management0 1. )nvironmental Scanning0 *nalyze the .pportnities and &hreats in )7ternal )nvironment 2. Strategy /ormlation0 /ormlate Strategies to match Strengths and Aea#nesses. ,t can $e done at 3orporate level! 8siness Dnit :evel and /nctional :evel. (. Strategy ,mplementation0 ,mplement the Strategies 6. )valation 5 3ontrol0 )nsre the organizational o$%ectives are met. +M0ORTANCE < )ENE-+TS O- STRATEG+C MANAGEMENT *llows identification! prioritization and e7ploration of opportnities. 4rovides an o$%ective view of management pro$lems. Represents framewor# for improved co1ordination and control Minimizes the effects of adverse conditions and changes *llows ma%or decisions to $etter spport esta$lished o$%ectives *llows more effective allocation of time and resorces *llows fewer resorces and lesser time devoted to correcting ad hoc decisions 3reates framewor# for internal commnication Helps to integrate the individal $ehaviors 4rovides $asis for the clarification of responsi$ilities )ncorages forward thin#ing )ncorages favora$le attitde towards change. RO1E O- HRM +N STRATEG+C MANAGEMENT Role in Strategy /ormlation0 HRM is in a ni"e position to spply competitive intelligence that may $e sefl in strategy formlation. Details regarding advanced incentive plans sed $y competitors! opinion srvey data from employees! elicit information a$ot cstomer complaints! information a$ot pending legislation etc. can $e provided $y HRM. Dni"e HR capa$ilities serve as a driving force in strategy formlation. Role in Strategy ,mplementation0 HRM spplies the company with a competent and willing wor#force for e7ecting strategies. ,t is 7 important to remem$er that lin#ing strategy and HRM effectively re"ires more than selection from a series of practice choices. &he challenge is to develop a configration of HR practice choices that help implement the organization2s strategy and enhance its competitiveness. HUMAN RESOURCE -E.E/OPMENT Definition 10 Organizing and enhancing capacities to produce. HRD is a process of organizing and enhancing the physical! mental and emotional capacities of individals for prodctive wor#. Definition 20 Bring possibility of performance and growth HRD means to $ring a$ot the possi$ility of performance improvement and individal growth. Hman resorce development is a process to help people to ac"ire competencies and to increase their #nowledge! s#ills and capa$ilities for $etter performance and higher prodctivity. 0roacti%e HR; Strategies for long term planning and gro9th ,n today2s fast changing! challenging and competitive environment HRD has to ta#e a proactive approach that is to see# preventive care in hman relations. Dsing HRD strategies ma7imizations of efficiency and prodctivity cold $e achieved throgh "alitative growth of people with capa$ilities and potentialities to grow and develop. HRD is always a fnction of proper tilization of creative opportnities and availa$le environment throgh ac"isition of #nowledge! s#ills and attitdes necessary for prodctive efforts. :ong1term growth can also $e planned $y creating highly inspired grops of employees with high aspirations to diversify arond core competencies and to $ild new organizational responses for coping with change. * proactive HRD strategy can implement activities that are geared p and directed at improving personal competence and prodctive potentialities of hman resorces. /ollowing strategic choices can $e considered which wold help today2s organizations to srvive and grow. 3hange Management0 Manage change properly and $ecome an effective change agent rather than $eing a victim of change itself. Gales0 *dopt proactive HRD measres! which encorage vales of openness! trst! atonomy! proactivity and e7perimentation. Ma7imize prodctivity and efficiency0 &hrogh "alitative growth of people with capa$ilities and potentialities to grow and develop thrive to ma7imize prodctivity and efficiency of the organization. *ctivities directed to competence $ilding0 HRD activities need to $e geared p and directed at improving personal competence and prodctive potentialities of manpower resorces. 8 &)*M )//)3&,G)+)SS Ahat is the definition of a teamF * team is defined as a reasona$ly small grop of people! who $ring to the ta$le a set of complementary and appropriate s#ills! and who hold themselves mtally acconta$le for achieving a clear and identifia$le set of goals. &eams can $e very effective. ,n many sitations teams can achieve more than individals wor#ing on their own. &eams can $ring to $ear a wider range of s#ills and e7perience to solve a pro$lem. &eams also prodce $etter "ality decisions. Ahen a team has $een wor#ing on a pro$lem! and they have a sense of commitment to the common soltion Ahat do we mean $y team effectivenessF * team can $e considered to $e effective if their otpt is %dged to meet or e7ceed the e7pectations of the people who receive the otpt. 4rodcing a "ality otpt is not enogh to %dge the effectiveness of the team. &he second criteria! is that the team shold still $e a$le fnction effectively after they have completed their tas#. ,t shold not $e torn apart $y dissension. /inally! effectiveness is %dged $y whether the team feels satisfied with its efforts. ,f the team mem$ers are pleased with their efforts! if the e7perience has $een a good one! if time spent away from their normal wor# has $een worth the effort! the team has li#ely $een effective. Ahat then are the factors that contri$te towards an effective teamF &here are three areas of grop $ehavior that mst $e addressed for teams to $e effective. &he team mst wor# hard. &he effort that the team pts in to get the %o$ done is dependent on whether the natre of the tas# motivates the mem$ers of the team and whether the goals are challenging.&he team mst have the right mi7 of s#ills to $ring to the ta$le. &hese s#ills inclde technical! pro$lem solving and interpersonal s#ills. &he team mst $e a$le to develop appropriate approaches to pro$lem solving. &his depends on developing a plan of attac# and sing appropriate techni"es for analysis. &he following factors contri$te to hard wor#! s#ill development and effective pro$lem solving strategies0 &he tas# itself shold $e motivating. &he tas# itself shold $e seen as $eing worthwhile. ,t needs to $e a whole piece of wor# with a clear and visi$le otcome so that people can feel a sense of ownership. &he otcome of the tas# shold $e perceived as $eing important to other peopleHs lives. ,t shold affect others in the organization or impact on the e7ternal cstomer. 9 &he %o$ shold provide the team with an opportnity for self1 reglation. &hey shold decide how the wor# is to $e done. Meaningfl feed$ac# shold $e provided on the how well the team is performing. &he team needs challenging goals! which are clearly defined. Ahen challenging goals are set the team will mo$ilize its efforts to find innovative ways to achieve feats that may have $een considered impossi$le. 4roviding a challenging %o$ is the most important motivator to sstain grop effort. -oals provide a sense of direction to the team so that when conflict occrs it is possi$le to channel the conflict more constrctively $y retrning to the goals for direction. &he team needs to $y in to the goals. &hey mst have the opportnity to $y in and commit to achieving the goals. -oals need to $e challenging! $t not impossi$le to achieve. &hey also need to $e measra$le so that progress towards achieving them can $e monitored and reslts confirmed. Rewards are important. &he rewards need to sit the personal characteristics of the people on the team. Ahatever form the reward ta#es! it is important that grop effort $e recognized. .ne shold avoid the destrctive effect of trying to single ot individals from the grop! when there has $een a grop effort. Rewards merely reinforce these conditions for fostering grop effort. &he team shold have the right mi7 of s#ills. &he right mi7 of s#ills shold $e $roght to the tas# at hand. ,t is also a "estion of careflly reviewing the %o$ to determine what relevant s#ills is re"ired and selecting staff so that the team has the right $alance. 4roviding relevant training then ma#es p any shortfall in s#ills. &echnical s#ills are re"ired. /or teams who are trying to improve a process that cts across department $ondaries! each fnction shold $e represented. .ne shold achieve a $alance of s#ills. &his means avoiding having a preponderance of s#ills and e7perience in one specialized area. Sheer nm$ers may weigh the soltion towards the dominant grop. ,n the case of permanent wor# teams it is li#ely that team mem$ers will not have all the tas# relevant s#ills at the onset. Ahen the grop is new! it is li#ely that mem$ers will $ring narrow s#ills learned in their old roles. &hey will need to develop $roader s#ills for the new %o$. &o ensre that this is done! training and coaching shold $e provided. 10 &he mem$ers of the team need to have pro$lem solving and decision1ma#ing s#ills as well as technical s#ills. Ahen a $siness is ma#ing its first ventre into team $ased wor#! it is li#ely that people will not have a good grasp of the techni"es related to pro$lem analysis and soltion. &hese relevant s#ills mst $e ac"ired! so it will $e necessary to provide training. .ver a period of time staff will $ecome e7perienced in pro$lem solving techni"es and the organization will develop a repertoire of s#ills among the staff so this training will not always $e necessary. ,nterpersonal s#ills are also important. &his is not as o$vios as it may sond. Most people do not listen well. :istening is mch more than $eing "iet when some else is tal#ing. *ctive listening is re"ired. Many people do not spea# to the point $t ram$le on or go off at a tangent. Most people do not ta#e criticism well and tend to $e defensive a$ot their own opinions. *gree on a code of condct. *t the $eginning of the team pro%ect it is important to develop a code of condct for meetings. &he team needs to agree on a set of rles to ensre that their efforts are prposefl and that all mem$ers contri$te to the wor#. &he most critical rles pertain to attendance! open discssion! sing an analytical approach! not plling ran# over other mem$ers! planning the wor# and sharing wor# assignments. &his will ensre that the wor# is done well and done on time. &he team mst develop effective pro$lem solving strategies. /or the team to $e a$le to develop an appropriate strategy! it mst have a clear definition of the pro$lem! #now what resorces it has availa$le and the limits! and nderstand the e7pectations. ,t mst then develop a pro$lem1solving plan! $ased on the approach sggested in the section on continos improvement. Ahen this does not happen! people are passive. &heir s#ills and #nowledge are not tilized and they waste their time. Special teams have special isses. /rom the perspective of organisational improvement we are interested in three types of teams. .ne is the pro$lem solving team! another is the wor# team and then there is the senior management team.4ro$lem solving teams are set p with a clearly defined tas# to investigate a pro$lem and recommend a soltion. Sometimes the same team will go on to implement the soltion. Ahen their tas# is completed the team is dis$anded and mem$ers go $ac# to their normal organisational dties. &here are two important isses facing these teams. .ne is getting started and the other is handing over the recommendations for implementation. &he #ey to getting started is to ensre that the team 11 is committed to achieving an agreed set of goals. -oals serve to focs the teamHs effort. ,mplementation is important. ,t will not %st happenI it mst $e planned. &he implementers mst $e $roght into the soltion stage so that they develop a sense of ownership towards the soltion and $y into it. &he $est way to do this is to have the pro$lem solving team do the implementation. *nother approach is to phase the implementers into the team so that the mem$ership changes prior to the implementation. Ahatever approach is sed one shold remem$er that the idea is to implement a soltion and not to prodce a report. Aor# teams are different in that they are a fi7ed part of the organization. &hey have an ongoing fnction! which is to control a set of activities that ma#e p a discrete operation in the overall $siness process. &hey need to focs on the critical factors in their process and to control these factors to ensre a "ality prodct. HUMAN RESOURCE P/ANN+NG ( H R P ) Definition 10 1 Need, Availability, Supply!emand HR4 incldes estimation of how many "alified people are necessary to carry ot the assigned activities! how many people will $e availa$le! and what! if anything! mst $e done to ensre personnel spply e"als personnel demand at the appropriate point in the ftre.' Definition 20 1 "ight numbers, #apability, Organization Ob$ectives HR4 is a 4rocess! $y which an organization ensres that it has the right nm$er and #ind of people at the right place! at the right time! capa$le of effectively and efficiently completing those tas#s that will help the organization achieve its overall o$%ectives.' Definition (0 1 %ranslation of ob$ectives into &" numbersHR4 is a process of translating organizational o$%ectives and plans into the nm$er of wor#ers needed to meet those o$%ectives.' M)*+,+- J 4DR4.S) ./ HR4 ,n simple words HR4 is nderstood as the process of forecasting an organization2s ftre demand for and spply of the right type of people in the right nm$ers. ,t is only after HR4 is done! that the company can initiate and plan the recritment and selection process. HR4 is a s$1system in the total organizational planning. HR4 facilitates the realization of the company2s o$%ectives $y providing right type and right nm$er of personnel. HR4 is important $ecase withot a clear1ct manpower planning! estimation of a organization2s hman resorce need is redced to mere gesswor#. 12 NEE; < +M0ORTANCE O- HR0 /orecast ftre personnel needs0 &o avoid the sitations of srpls or deficiency of manpower in ftre! it is important to plan yor manpower in advance. /or this prpose a proper forecasting of ftres $siness needs helps yo to ascertain or ftre manpower needs. /rom this angle! HR4 plays an important role to predict the right size of manpower in the organization. 3ope with change0 HR4 ena$les an enterprise to cope with changes in competitive forces! mar#ets! technology! prodcts and government reglations. Sch changes generate changes in %o$ content! s#ills demands and nm$er of hman resorces re"ired. 3reating highly talented personnel0 Since %o$s are $ecoming highly intellectal and incm$ents getting vastly professionalized! HR4 helps prevent shortages of la$or cased $y attritions. /rther technology changes wold frther pgrade or degrade %o$s and create manpower shortages. ,n these sitations only accrate hman resorce planning can help to meet the resorce re"irements. /rther HR4 is also an answer to the pro$lems of sccession planning. 4rotection of wea#er sections 0 * well1conceived personnel planning wold also help to protect the interests of the S3JS&! physically handicapped! children of socially oppressed and $ac#ward classes who en%oy a certain percentage of employments notwithstanding the constittional provisions of e"al opportnity for all. +nternational strate#ies: +nternational e0ansion strate#ies lar#el! &een& 'on e%%ective HRP* 1it" #ro2in# tren&s to2ar&s #lobal oerations$ t"e nee& %or HRP %'rt"er becomes more imortant as t"e nee& to inte#rate HRP more closel! into t"e or#ani)ation 3ees #ro2in#* T"is is also beca'se t"e rocess o% meetin# sta%%in# nee&s %rom %orei#n co'ntries #ro2s in a comle0 manner* 4o'n&ation o% ersonnel %'nctions: HRP rovi&es essential in%ormation %or &esi#nin# an& imlementin# ersonnel %'nctions s'c" as recr'itment$ selection$ ersonnel &eveloment$ trainin# an& &eveloment etc* ,ncreasing investments in HR0 *nother importance is the investment that an organization ma#es in hman capital. ,t is important that employees are sed effectively throghot their careers. 8ecase hman assets can increase the organization vale tremendosly as opposed to physical assets Resistance to change 5 move0 &he growing resistance towards change and move! self evalation! loyalty and dedication ma#ing it more difficlt to assme that organization can move its employees everywhere. Here HR4 $ecomes very important and needs the resorces to $e planned careflly. .ther $enefits0 /ollowing are the other $enefits of HR4. 1. Dpper management has a $etter view of HR dimensions of $siness 13 2. Management can anticipate im$alances $efore they $ecome nmanagea$le and e7pensive. (. More time is provided to locate talent 6. 8etter opportnities e7ists to inclde women and minorities in ftre growth plans <. 8etter planning of assignments to develop managers =. Ma%or and sccessfl demands on local la$or mar#ets can $e made. HR4 SES&)M HR0 System as s"ch incl"des follo9ing elements or sets for planning .verall .rganization .$%ectives 8siness )nvironment /orecasting Manpower +eeds *ssessing Manpower Spply Matching Manpower Demand1Spply factors 8ased on these elements we can draw HR4 System *rchitectre' as nder. 14 5'siness Environment Or#ani)ation Objectives 6 Goals Mano2er 4orecast Mano2er S'l! Assessment Mano2er Pro#rammin# Mano2er +mlementation Control 6 Mano2er Eval'ation S'rl's Mano2er S"orta#e o% Mano2er HR4 4R.3)SS .rganizational .$%ectives 5 4olicies0 1 &he o$%ectives of HR plan mst $e derived from organizational o$%ectives li#e specific re"irements of nm$ers and characteristics of employees etc. HR4 needs to s$1serve the overall o$%ectives $y ensring availa$ility and tilization of hman resorces. Specific policies need to $e formlated to address the following decisions. ,nternal Hiring or )7ternal HiringF &raining 5 Development plans Dnion 3onstraints ;o$ enrichment isses Rightsizing organization *tomation needs 3ontinos availa$ility of adaptive and fle7i$le wor#force Manpower Demand /orecasting0 1 ,t is the process of estimating the ftre "antity and "ality of people re"ired. &he $asis shold $e annal $dget and long term corporate plans -eman& %orecastin# s"o'l& be base& on %ollo2in# %actors* Internal 'actors( ) 8dget constraints 4rodction levels +ew prodcts and services .rganizational strctre Emlo!ee searation *+ternal 'actors( ) 3ompetition environment )conomic climate :aws and reglatory $odies &echnology changes Social /actors "easons for ,anpower !emand 'orecasting( ) &o "antify %o$s &o determine the Staff1mi7 &o assess staffing levels and avoid nnecessary costs 4revent shortages of people Monitor comliances o% le#al re7'irements 2it" re#ar&s to reservations Manpo9er -orecasting Techni!"es. / Management ;dgment0 ,n this techni"es managers across all the levels decide the forecast on their own %dgment. &his can $e $ottom1 p or top1down approach and %dgments can $e reviewed across departments! divisions and top management can conclde on final nm$ers of manpower re"ired. 15 Ration1&rend *nalysis0 &his techni"e involves stdying past ratios! and forecasting ftre ratios ma#ing some allowance for changes in the organization or its methods. Aor# Stdy &echni"es0 ,t is possi$le when wor# measrement to calclate the length of operations and the amont of manpower re"ired. &he starting point can $e prodction $dget! followed $y standard hors! otpt per horI man1hors re"ired etc cold $e compted. Delphi &echni"es0 &his techni"e solicits estimates from a grop of e7perts! and HR4 e7perts normally act as intermediaries! smmarizes varios responses and report the findings $ac# to e7perts. /low Models0 &his techni"e involves the flow of following components. Determine the time re"ired! )sta$lish categories! 3ont annal movements! )stimate pro$a$le transitions. Here demand is a fnction of replacing those who ma#e a transition. Manpower Spply /orecasting0 1 &his process measres the nm$er of people li#ely to $e availa$le from within and otside the organization after ma#ing allowance for a$senteeism! internal movements and promotions! wastages! changes in hors and other conditions of wor#. "easons for ,anpower Supply 'orecasting( 3larify Staff1mi7es e7ist in the ftre *ssess e7isting staff levels 4revent shortages Monitor e7pected ftre compliance of legal re"irements of %o$ reservations Supply Analysis covers( )7isting Hman Resorces0 HR *dits facilitate analysis of e7isting employees with s#ills and a$ilities. &he e7isting employees can $e categorized as s#ills inventories Bnon1managersC and managerial inventories BmanagersC S-ill inventory would include the following. 4ersonal data S#ills Special Kalifications Salary ;o$ History 3ompany data 3apa$ilities Secial re%erences ,anagement inventories would include the following Aor# History 16 Strengths Aea#nesses 4romotion 4otential 3areer -oals 4ersonal Data +m$er and &ypes of S$ordinates &otal 8dget Managed Previo's Mana#ement -'ties Internal Supply: - ,nternal spply techni"es help to assess the following ,nflows and otflows Btransfers! promotions! separations! resignations! retirements etc.C &rnover rate B+o. .f separations p.a. J *verage employees p.a. L 1@@C 3onditions of wor# Bwor#ing hors! overtime! etc.C *$senteeism Bleaves! a$sencesC 4rodctivity level 8ob movements (8ob rotations or cross %'nctional 'tili)ations) )7ternal Spply0 1 )7ternal sorces are re"ired for following reasons +ew $lood! +ew e7periences Replenish lost personnel .rganizational growth Diversification )7ternal sorces can $e colleges and niversities! consltants! competitors and nsolicited applications. HR Plan +mlementation: , A series of action programs are initiated as a part of HR plan implementation as "nder' Recritment 5 Selection0 )mployees are hired against the %o$ vacancies. 8ased on the manpower demand and spply forecasts made! hiring of employees is initiated $ased on spply forecasts. /or this internal and e7ternal sorces of manpower are tilized. * formal selection $oard is esta$lished to interview and select the $est of the candidates for the re"ired vacancies. /inally the selected employees also need to $e placed on proper %o$s. Here some companies recrit employees for specific %o$s while others recrit fresh trainees in large nm$er and train them for ftre manpower needs. &raining and Development0 &he training and development program is charted ot to cover the nm$er of trainees! e7isting staff etc. &he programs also cover the identification of resorce personnel for 17 condcting development program! fre"ency of training and development programs and $dget allocation. Retraining and RedeploymentI +ew s#ills are to $e imparted to e7isting staff when technology changes or prodct line discontined. )mployees need to $e redeployed to other departments where they cold $e gainflly employed. Retention 4lan0 Retention plans cover actions! which wold redce avoida$le separations of employees. Dsing compensation plans! performance appraisals! avoiding conflicts! providing green pastres etc! can do this. Downsizing plans0 Ahere there is srpls wor#force trimming of la$or force will $e necessary. /or these identifying and managing redndancies is very essential. Managerial Sccession 4lanningI Methods of managerial sccession plans may vary. Most sccessfl programs seem to inclde top managements involvement and commitment! high1level review of sccession plans! formal performance assessment and potential assessment and written development plans for individals. * typical sccession planning involves following activities. *nalysis of demand for managers and professionals *dit of e7isting e7ectives 4ro%ection of ftre li#ely spply from internal and e7ternal sorces ,ndividal career path planning 3areer conseling *ccelerated promotions 4erformance related training and development Strategic recritment Control < E%al"ation of HR0. / HR 4lan mst also clarify responsi$ilities for control and esta$lish reporting procedres! which will ena$le achievements to $e monitored against the plan. &he HR 4lan shold inclde $dgets! targets and standards. &hese plans may simply $e reports on the nm$ers employed! recrited against targets etc. SD33)SS,.+ 4:*++,+- Meaning of Sccession 4lanning Sccession planning is the process or activities connected with the sccession of persons to fill #ey positions in the organization hierarchy as vacancies arise. &he focs of attention is towards Mwhich2 person the sccession planning is needed. &he focs is not more on career development $t it is more towards what #ind of person is re"ired to fill the ftre vacancy. Sccession planning focses on identification of vacancies and locating the pro$a$le sccessor. /or e7ample in 18 sccession planning the #ey concern can $e who will $e ne7t 3). or what will happen if the Mar#eting Manager retires in coming March. ,mportance of Sccession 4lanning Sccession planning helps when there is a sdden need arises de to reason or retirement of a #ey employee. ,ndividal employee comes to #now in advance the level to which he can rise if he has the a$ility and aptitde for it. ,ndividal employee or sccessor feels happy when he feels that organization is ta#ing care of his talents and aspirations. Sccession planning helps create loyalty towards the organization and improved motivation and morale of individal employees. .rganization gains sta$le wor#force and low employee trnover. Dltimately organization $ecomes sccessfl in accomplishing its goals effectively. 3*R))R 4:*++,+- 3areer planning is the process or activities offered $y the organization to individals to identify strengths! wea#nesses! specific goals and %o$s they wold li#e to occpy. 3areer as a concept means a lifelong se"ences of professional! edcational and developmental e7periences that pro%ects an individal throgh the world of wor#. ,t is a se"ence of positions occpied $y a person dring his life. 3areer may also $e defined as amalgamation of changes in vales! attitdes and motivation that occrs as a person grows older. ,n career planning! organization is concerned with strategic "estions of career development. /rther the organization is concerned a$ot if it shold employ more gradates! more engineers! more scientists or more accontants etc. 3areer planning provides pictre of sccession plan for employees as per organizational needs. ,t focses on the $asis of performance! e7perience! cold $e placed where! when and how. 3areer planning is a process of integrating the employees2 needs and aspirations with organizational re"irements. .$%ectives of 3areer 4lanning 1. 8ild commitment in the individal 2. Develop long1range perspective (. Redce personal trnover e7penses 6. :essen employee o$solescence <. )nsre organizational effectiveness =. *llow individal to achieve personal and wor# related goals. ,mportance of 3areer 4lanning 3areer planning is important $ecase it helps the individal to e7plore! choose and strive to derive satisfaction with his own career o$%ectives. 19 ;.8 *+*:ES,S ;.80 ;o$ is a Mgrop of tas#s to $e performed everyday.' ;.8 *+*:ES,S Definition 10 /0rocess of #ollecting Information1 ;o$ *nalysis is a process of stdying and collecting information relating to operations and responsi$ilities of a specific %o$. &he immediate prodcts of this analysis are M;o$ Description2 and M;o$ Specifications2.' Definition 20 /Systematic *+ploration of Activities1 ;o$ *nalysis is a systematic e7ploration of activities within a %o$. ,t is a $asic technical procedre that is sed to define dties and responsi$ilities and acconta$ilities of the %o$.' Definition (0 /Identifying 2ob "e3uirements1 ;o$ is a collection of tas#s that can $e performed $y a single employee to contri$te to the prodction of some prodct or service! provided $y the organization. )ach %o$ has certain a$ility re"irements Bas well as certain rewardsC associated with it. ;o$ *nalysis is a process sed to identify these re"irements.' M)*+,+- ./ ;.8 *+*:ES,S ;o$ *nalysis is a process of collecting information a$ot a %o$. &he process of %o$ analysis reslts into two sets of data. ;o$ Description ;o$ Specification *s a reslt ;o$ analysis involves the following steps in a logical order. Steps of 2ob Analysis 1. 3ollecting and recording %o$ information 2. 3hec#ing the %o$ information for accracy (. Ariting %o$ description $ased on information collected to determine the s#ills! #nowledge! a$ilities and activities re"ired 6. Dpdating and pgrading this information 4DR4.S) ./ ;.8 *+*:ES,S0 1 Hman Resorce 4lanning BHR4C0 1 &he nm$ers and types of personnel are determined $y the %o$s! which need to $e staffed. ;o$ related information in the form of ;o$ *nalysis serves this prpose or se. Recritment 5 Selection0 1 Recritment precedes %o$ analysis. ,t helps HR to locate places to o$tain employees. ,t also helps in $etter continity and planning in staffing in the organization. *lso selecting a good candidate also re"ires detailed %o$ information. 8ecase the o$%ective of hiring is to match the right candidate for right %o$ 20 &raining 5 Development0 &raining and development programs can $e designed depending pon %o$ re"irement and analysis. Selection of trainees is also facilitated $y %o$ analysis. ;o$ )valation0 ;o$ evalation means determination of relative worth of each %o$ for the prpose of esta$lishing wage and salary credentials. &his is possi$le with the help of %o$ description and specificationsI i.e. ;o$ *nalysis. Remneration0 ;o$ analysis also helps in determining wage and salary for all %o$s. 4erformance *ppraisal0 4erformance appraisal! assessments! rewards! promotions! is facilitated $y %o$ analysis $y way of fi7ing standards of %o$ performance. 4ersonnel ,nformation0 ;o$ analysis is vital for $ilding personnel information systems and processes for improving administrative efficiency and providing decision spport. Safety 5 Health0 ;o$ *nalysis helps to ncover hazardos conditions and nhealthy environmental factors so that corrective measres can $e ta#en to minimize and avoid possi$ility of hman in%ry. 4R.3)SS ./ ;.8 *+*:ES,S 4rocess 10 Strategic 3hoices 4rocess 20 3ollecting ,nformation 4rocess (0 4rocessing ,nformation 4rocess 60 ;o$ Description 4rocess <0 ;o$ Specification Strategic 3hoices0 1 *+tent of involvement of employees( )7tent of employee involvement is a de$ata$le point. &oo mch involvement may reslt in $ias in favor of a %o$ in terms of inflating dties and responsi$ilities. &oo less involvement leads to sspicion a$ot the motives $ehind the %o$. 8esides it may also lead to inaccrate information. Hence e7tent of involvement depends on the needs of the organization and employee. 4evel of details of $ob analysis( &he natre of %o$s $eing analyzed determines the level of details in %o$ analysis. ,f the prpose were for training programs or assessing the worth of %o$! levels of details re"ired wold $e great. ,f the prpose is %st clarification the details re"ired wold $e less. %iming and fre3uency of 2ob Analysis( Ahen do yo do ;o$ *nalysisF ,nitial stage! for new organization +ew ;o$ is created 3hanges in ;o$! &echnology and 4rocesses Deficiencies and Disparities in ;o$ 21 +ew compensation plan is introdced Dpdating and pgrading is re"ired. 0ast)oriented and future)oriented 2ob Analysis( /or rapidly changing organization more ftre oriented approach wold $e desired. /or traditional organizations past oriented analysis wold $e re"ired. However more ftre oriented analysis may $e derived $ased on past data. Sources of 2ob !ata( /or %o$ analysis nm$er of hman and non1 hman sorces is availa$le $esides %o$holder himself. /ollowing can $e sorces of data availa$le for %o$ analysis. +on1Hman Sorces Hman Sorces )7isting %o$ descriptions and specifications )"ipment maintenance records )"ipment design $leprints *rchitectral $leprints of wor# area /ilms of employee wor#ing &raining manals and materials Magazines! newspapers! literatres ;o$ *nalysis ;o$ ,ncm$ents Spervisors ;o$ )7perts 3ollecting ,nformation0 1 ,nformation collection is done on the $asis of following ( parameters %ypes of !ata for 2ob Analysis( Aor# *ctivities B&as#s detailsC ,nterface with other %o$s and e"ipments B4rocedres! 8ehaviors! MovementsC Machines! &ools! )"ipments and Aor# *ids B:ist! Materials! 4rodcts! ServicesC ;o$ 3onte7t B4hysical! Social! .rganizational! Aor# schedleC 4ersonal Re"irement BS#ills! )dcation! &raining! )7perienceC ,ethods of !ata #ollection( .$servation ,nterview Kestionnaires 3hec#lists &echnical 3onference Diary Methods 5ho to #ollect !ata6 &rained ;o$ *nalysts Spervisors 22 ;o$ ,ncm$ents 4rocessing ,nformation0 1 .nce the %o$ information is collected it needs to $e processed! so that it wold $e sefl in varios personnel fnctions. Specifically %o$ related data wold $e sefl to prepare %o$ description and specifications! which form the ne7t two processes of %o$ analysis. M)&H.DS ./ D*&* 3.::)3&,.+0 Observation( ;o$ *nalyst careflly o$serves the %o$holder and records the information in terms of what! how the %o$ is done and how mch time is ta#en. ,t is a simple and accrate method! $t is also time consming and inapplica$le to %o$s involving mental activities and no$serva$le %o$ cycles. &he analysts mst $e flly trained o$servers. Interview( ,n this analyst interviews the %o$holders! his spervisors to elicit information. ,t can $e Strctred or Dnstrctred ,nterview. *gain this is also a time consming method in case of large organizations. 4ls there is also a pro$lem of $ias. 7uestionnaires( * standard "estionnaire is given to %o$holder a$ot his %o$! which can $e filled and given $ac# to spervisors or %o$ analysts. &he "estionnaire may contain %o$ title! %o$holder2s name! managers name! reporting staff! description of %o$! list of main dties and responsi$ilities etc. ,t is sefl in large nm$er of staffs and less time consming. However the accracy of information leaves mch to $e desired. #hec-lists( ,t is more similar to "estionnaire $t the response sheet contains fewer s$%ective %dgments and tends to $e either yes or no variety. 4reparation of chec#list is a challenging %o$ itself. %echnical #onference( Here a conference of spervisors is sed. &he analysts initiate the discssions providing %o$ details. However this method lac#s accracy. !iary ,ethods( ,n this method %o$holder is re"ired to note down their activities day $y day in their diary. ,f done faithflly this techni"e is accrate and eliminates errors cased $y memory lapses etc. Kantitative Methods of ;o$ Data 3ollection0 1 4osition *nalysis Kestionnaire B4*KC0 1 4*K is a highly specialized instrment for analyzing any %o$ in terms of employee activities. &he 4*K contains 1?6 %o$ elements on which %o$ is created depending on the degree to which an element is present. &hese elements are groped together into = categories. 1. D Dsa$ility J Dse of ;o$ 2. , ,mportance of ;o$ (. & &ime 6. 4 4ossi$ility of .ccrrence of ;o$ 23 <. * *pplica$ility of ;o$ =. S Specialty &as#s of ;o$ &he primary advantage of 4*K is that it can $e sed to analyze almost every %o$. &his analysis provides a comparison of a specific %o$ with other %o$ classifications! particlarly for selection and remneration prposes. However 4*K needs to $e completed $y trained %o$ analysts only rather than incm$ents. Management 4osition Description Kestionnaire BM4DKC0 1 Highly strctred "estionnaire! containing 2@> elements relating to managerial responsi$ilities! demand! restrictions and other position characteristics &hese 2@> elements are groped nder 1( categories. 4*K and M4DK yield standardized information a$ot the wor#er and the %o$. /nctional ;o$ *nalysis0 1 ,t is a wor#er oriented %o$ analytical approach! which attempts to descri$e the whole person on the %o$. 8*RR,)RS ./ ;.8 *+*:ES,S Spport from &op Management Single means and sorce! reliance on single method rather than com$ination +o &raining or Motivation to ;o$holders Acti%ities and ;ata may #e ;istorted ;.8 D)S3R,4&,.+ ;o$ Description implies o$%ective listing of the %o$ title! tas#s! and responsi$ilities involved in a %o$.' ;o$ description is a word pictre in writing of the dties! responsi$ilities and organizational relationships that constittes a given %o$ or position. ,t defines contining wor# assignment and a scope of responsi$ility that are sfficiently different from those of the other %o$s to warrant a specific title. ;o$ description is a $road statement of prpose! scope! dties and responsi$ilities of a particlar %o$. 3ontents of ;o$ Description 1. ;o$ ,dentification 2. ;o$ Smmary (. ;o$ Dties and Responsi$ilities 6. Spervision specification <. Machines! tools and materials =. Aor# conditions 9. Aor# hazards >. Definition of nsal terms /ormat of ;o$ Description ;o$ &itle RegionJ:ocation 24 Department Reporting to B.perational and ManagerialC .$%ective 4rincipal dties and responsi$ilities /eatres of -ood ;o$ Description 1. Dp to date 2. 4roper ;o$ &itle (. 3omprehensive ;o$ Smmary 6. 3lear dties and responsi$ilities <. )asily nderstanda$le =. State %o$ re"irements 9. Specify reporting relationships >. Showcase degrees of difficlties ?. ,ndicates opportnities for career development 1@. .ffer $ird2s1eye1view of primary responsi$ilities 8O5 SPEC+4+CAT+ONS ;o$ Specification involves listing of employee "alifications! s#ills and a$ilities re"ired to meet the %o$ description. &hese specifications are needed to do %o$ satisfactorily.' ,n other words it is a statement of minimm and accepta$le hman "alities necessary to perform %o$ properly. ;o$ specifications see#s to indicate what #ind of persons may $e e7pected to most closely appro7imate the role re"irements and ths it is $asically concerned with matters of selection! screening and placement and is intended to serve as a gide in hiring. 3ontents of ;o$ Specifications 1. 4hysical 3haracteristics 2. 4sychological characteristics (. 4ersonal characteristics 6. Responsi$ilities <. Demographic featres /rther the %o$ specifications can $e divided into three $road categories *ssential Attributes !esirable Attributes #ontra)Indicators 8 indicators hampering the success of $ob 8O5 E.A/UAT+ON ;o$ )valation involves determination of relative worth of each %o$ for the prpose of esta$lishing wage and salary differentials. Relative worth is determined mainly on the $asis of %o$ description and %o$ specification only. ;o$ )valation helps to determine wages and salary grades for all %o$s. )mployees need to $e compensated depending on the grades of %o$s which they occpy. Remneration also involves fringe $enefits! $ons and other $enefits. 3learly remneration mst 25 $e $ased on the relative worth of each %o$. ,gnoring this $asic principle reslts in ine"ita$le compensation. * perception of ine"ity is a sre way of de1motivating an employee. ;o$ evalation is a process of analyzing and assessing the varios %o$s systematically to ascertain their relative worth in an organization. ;o$s are evalated on the $asis of content! placed in order of importance. &his esta$lishes ;o$ Hierarchies! which is a prpose of fi7ation of satisfactory wage differentials among varios %o$s. ;o$s are ran#ed Bnot %o$holdersC Scope of ;o$ )valation &he %o$ evalation is done for the prpose of wage and salary differentials! demand for and spply of la$or! a$ility to pay! indstrial parity! collective $argaining and the li#e. 4rocess of ;o$ )valation0 1. Defining o$%ectives of %o$ evalation a. ,dentify %o$s to $e evalated B8enchmar# %o$s or all %o$sC $. Aho shold evalate %o$F c. Ahat training do the evalators needF d. How mch time involvedF e. Ahat are the criteria for evalationF f. Methods of evalation to $e sed 2. Aage Srvey (. )mployee 3lassification 6. )sta$lishing wage and salary differentials. Methods of ;o$ )valation *nalytical Methods 4oint Ran#ing Methods0 Different factors are selected for different %o$s with accompanying differences in degrees and points. /actor 3omparison Method0 &he important factors are selected which can $e assmed to $e common to all %o$s. )ach of these factors are then ran#ed with other %o$s. &he worth of the %o$ is then ta#en $y adding together all the point vales. +on1*nalytical Methods Ran#ing Method0 ;o$s are ran#ed on the $asis of its title or contents. ;o$ is not $ro#en down into factors etc. ;o$ -rading Method0 ,t is $ased on the %o$ as a whole and the differentiation is made on the $asis of %o$ classes and grades. ,n this method it is important to form a grade description to cover discerni$le differences in s#ills! responsi$ilities and other characteristics. 4itfalls of ;o$ )valation0 )ncorages employees on how to advance in position when there may $e limited opportnities for enhancement as a reslt of downsizing. 26 ,t promotes internal focs instead of cstomer orientation +ot sita$le for forward loo#ing organizations! which has trimmed mltiple %o$ titles into two or three $road %o$s. 8O5 -ES+GN T"e /o#ical Se7'ence to 8ob Anal!sis is 8ob -esi#n* Definition 10 Integration of wor-, rewards and 3ualification ;o$ Design integrates wor# content Btas#s! fnctions! relationshipsC! the rewards and "alifications re"ired inclding s#ills! #nowledge and a$ilities for each %o$ in a way that meets the needs of employees and the organization.' Steps in ;o$ Design0 1 1. Specification of ,ndividal &as#s 2. Specification of Methods of &as#s 4erformance (. 3om$ination of &as#s into Specific ;o$s to $e assigned to individals /actors affecting ;o$ Design0 1 .rganizational factors0 3haracteristics of &as#s B4lanning! )7ection and 3ontrolling of &as#C Aor# /low B4rocess Se"encesC )rgonomics B&ime 5 Motion StdyC Aor# 4ractices BSet of ways of performing tas#sC )nvironmental /actors0 )mployee *$ilities and *vaila$ility Social and 3ltral )7pectations 8ehavioral )lements0 /eed$ac# *tonomy Dse of *$ilities Gariety &)3H+,KD)S ./ ;.8 D)S,-+0 1 Aor# Simplification0 ;o$ is simplified or specialized. &he %o$ is $ro#en down into small parts and each part is assigned to an individal. &o $e more specific! wor# simplification is mechanical pacing of wor#! repetitive wor# processes! wor#ing only on one part of a prodct! predetermining tools and techni"es! restricting interaction amongst employees! few s#ills re"irement. Aor# simplification is sed when %o$s are not specialized. ;o$ Rotation0 Ahen incm$ents $ecome $ore of rotine %o$s! %o$ rotation is an answer to it. Here %o$s remain nchanged! $t the incm$ents shift from one %o$ to another. .n the positive side! it increases the intrinsic reward potential of a %o$ $ecase of different s#ills and a$ilities needed to perform it. Aor#ers $ecome more competent in several %o$s! #now variety of %o$s and improve the self1 image! personal growth. /rther the wor#er $ecomes more vala$le to 27 the organization. 4eriodic %o$ changes can improve interdepartmental cooperation. .n the negative side! it may not $e mch enthsiastic or efficiency may not $e more. 8esides %o$s may not improve the relationships $etween tas#! while activities and o$%ectives remain nchanged. /rther training costs also rise and it can also de1motivate intelligent and am$itios trainees who see# specific responsi$ilities in their chosen specialties. ;o$ )nlargement0 ,t means e7panding the nm$er of tas#s! or dties assigned to a given %o$. ;o$ enlargement is natrally opposite to wor# simplification. *dding more tas#s or dties to a %o$ does not mean that new s#ills and a$ilities are needed. &here is only horizontal e7pansion. ,t is with same s#ills ta#ing additional responsi$ilities li#e e7tending wor#ing hors etc. ;o$ enlargement may involve $rea#ing p of the e7isting wor# system and redesigning a new wor# system. /or this employees also need to $e trained to ad%st to the new system. ;o$ enlargement is said to contri$te to employee motivation $t the claim is not validated in practice. Benefits of 2ob *nlargement( 9. &as# Gariety :. Meaningfl Aor# Modles ;. /ll *$ility Dtilization <. Aor#er 4aced 3ontrol =. Meaningfl 4erformance /eed$ac# !isadvantages of 2ob *nlargement 1. High &raining 3osts 2. Redesigning e7isting wor# system re"ired (. 4rodctivity may not increase necessarily 6. Aor#load increases <. Dnions demand payhi#e =. ;o$s may still remain $oring and rotine ;o$ )nrichment0 ;o$ enrichment is improvisation of $oth tas#s efficiency and hman satisfaction $y $ilding into people2s %o$s! "ite specifically! greater scope for personal achievement and recognition! more challenging and responsi$le wor# and more opportnity for individal advancement and growth. *n enriched %o$ will have more responsi$ility! more atonomy Bvertical enrichmentC! more variety of tas#s Bhorizontal enrichmentC and more growth opportnities. &he employee does more planning and controlling with less spervision $t more self1evalation. ,n other words! transferring some of the spervisor2s tas#s to the employee and ma#ing his %o$ enriched. 8enefits of ;o$ enrichment 1. ,t $enefits employee and organization in terms of increased motivation! performance! satisfaction! %o$ involvement and redced a$senteeism. 28 2. *dditional featres in %o$ meet certain psychological needs of %o$holders de to s#ill variety! identity! significance of %o$ etc. (. ,t also adds to employee self1esteem and self1control. 6. ;o$ enrichment gives stats to %o$holder and acts as a strong satisfier in one2s life. <. ;o$ enrichment stimlates improvements in other areas of organization. =. )mpowerment is a $y1prodct of %o$ enrichment. ,t means passing on more athority and responsi$ility. Demerits of ;o$ )nrichment 1. :azy employees may not $e a$le to ta#e additional responsi$ilities and power. ,t won2t fetch the desired reslts for an employee who is not attentive towards his %o$. 2. Dnions resistance! increased cost of design and implementation and limited research on long term effect of %o$ enrichment are some of the other demerits. (. ;o$ enrichment itself might not $e a great motivator since it is %o$1intrinsic factor. *s per the two1factor motivation theory! %o$ enrichment is not enogh. ,t shold $e preceded $y hygienic factors etc. 6. ;o$ enrichment assmes that wor#ers want more responsi$ilities and those wor#ers who are motivated $y less responsi$ility! %o$ enrichment srely de1motivates them <. Aor#ers participation may affect the enrichment process itself. =. 3hange is difficlt to implement and is always resisted as %o$ enrichment $rings in a changes the responsi$ility. *tonomos of Self1Directed &eams0 )mpowerment reslts in self1directed wor# teams. * self directed team is an intact grop of employees responsi$le for whole wor# segment! they wor# together! handle day1to1day pro$lems! plan and control! and are highly effective teams. High 4erformance Aor# Design0 ,mproving performance in an environment where positive and demanding goals are set leads to high performance wor# design. ,t starts from the principle of atonomos grops wor#ing and developing an approach! which ena$les grop to wor# effectively together in sitations where the rate of innovation is very high. .perational fle7i$ility is important and there is the need for employees to gain and apply new s#ills "ic#ly with minimm spervision. However de to $reacracy high performance wor# design does not wor#. D)S,-+,+- ;.8S M.&,G*&,+- ;.8S &he concept of motivating %o$s relates to ;o$ design. ;o$ design affects employee prodctivity! motivation and satisfaction. ;o$ design 29 is a conscios effort to organize tas#s! dties and responsi$ilities into a nit of wor# to achieve certain o$%ectives. How a %o$ design creates a motivating %o$ can $e seen with the help of certain components of %o$ design! namely! %o$ rotation! %o$ enlargement! %o$ enrichment! wor# simplification etc. Aor# simplification simplifies the %o$ $y $rea#ing down the %o$ into small parts. Simplified %o$s are easy to perform hence employees find it easy to do. &raining re"irements are redced and it $enefits the organizations in terms of cost. ;o$ rotation means movement of employees of %o$ to %o$ across the organization. ,t improves the intrinsic reward potential of a %o$ $ecase of different s#ills and a$ilities are needed to perform a %o$. Aor#ers $ecome more competent in several %o$s rather than only one. ,t also improves wor#ers self image! provides personal growth and ma#es wor#ers more vala$le to the organization. 4eriodic %o$ change can improve inter1departmental cooperation. )mployees $ecome more nderstanding to each other2s pro$lems. 3onse"ently it provides a high level of motivation to employees $ecase %o$s itself $ecome motivators. Hence %o$ rotation helps the %o$ $ecome more motivating. ;o$ enlargement involves e7panding nm$er of tas#s or dties assigned to a given %o$. ;o$ enrichment involves improving tas# efficiency and hman satisfaction. ;o$ enrichment provides greater scope for personal achievement and recognition! more challenging and responsi$le wor# and more opportnity for individal advancement and growth. *n enriched %o$ gives vertical enrichment in the form of more responsi$ility and atonomy and a horizontal enrichment in the form of variety of tas#s and more growth opportnities. &he employee does more planning and controlling with less spervision $t more self1 evalation. *ll these factors lead to increased level of motivation and hence ma#e the %o$s more motivated. 3onsidering a$ove e7amples! we can say that designing %o$s is actally sing the relevant and right techni"es of %o$ design! li#e rotation! enrichment! simplifications and ma#e the %o$s more motivating to perform. So we can say that Designing ;o$s is actally creating Motivated ;o$s. 8O5 SAT+S4ACT+ON ;o$ satisfaction is the reslt of varios attitdes possessed $y an employee towards his %o$! related factors and life in general. &he attitdes related to %o$ may $e wages! spervision! steadiness! wor#ing conditions! advancement opportnities! recognitions! fair evalation of wor#! social relations on %o$! prompt settlement of grievances etc. 30 ,n short %o$ satisfaction is a general attitde! which is the reslt of many specific attitdes in three areas namely! %o$ factors! individal characteristics and grop relationships otside the %o$. 3omponents of ;o$ Satisfaction 4ersonal factors0 Se7! Dependents! *ge! &imings! ,ntelligence! )dcation and 4ersonality. ;o$ inherent factors0 &ype of wor#! S#ills! .ccpational stats! -eography! Size of plant Management controlled factors0 Secrity! 4ayment! /ringe $enefits! *dvancement opportnities and Aor#ing conditions! 3o1wor#ers! Responsi$ilities! Spervision ;o$ Satisfaction 5 8ehavior relationship is descri$ed throgh following e7amples. Satisfaction 5 &rnover Satisfaction 5 *$senteeism Satisfaction 5 *ccidents Satisfaction 5 ;o$ 4erformance 1OR9 SAMP/+NG -e%inition :: Meas'rin# an& 7'anti%!in# activities;A meas'rement tec"ni7'e %or t"e 7'antitative anal!sis o% non,reetitive or irre#'larl! occ'rrin# activit!*; Meanin# o% 1or3 Samlin# 1or3 samlin# is base& on t"e t"eor! t"at t"e ercenta#e o% t"e n'mber o% observations on a artic'lar activit! is a reliable meas're o% t"e ercenta#e o% t"e total act'al time sent on t"at activit!* Aor# sampling operates $y an o$server ta#ing a series of random o$servations on a particlar NthingN of interest Bmachine! operating room! doc#! etc.C to o$serve its NstateN Bwor#ing! idle! sleeping! empty! etc.C. Ahen enogh samples are ta#en! an analysis of the o$servations yields a statistically valid indication of the states for each thing analyzed. *ssme! for e7ample! that yo wish to determine the proportion of time a factory operator is wor#ing or idle. *lso assme that 2@@ random o$servations were made of the operator and dring 26 of these he or she was o$served to $e idle. &herefore! yo find that the individal is wor#ing 19=J2@@ O >>P of the time. *dvantages of Aor# Sampling,t is relatively ine7pensive to se and e7tremely helpfl in providing a deeper nderstanding of all types of operations. Ahen properly sed! it can help pinpoint those areas! which shold $e analyzed in! frther detail and can serve as a measre of the progress $eing made in improving operations .Kestions of wor# sampling stdy Ahat is or e"ipmentJasset tilizationF 31 Ahen we are not adding vale to the prodct! how are we spending or timeF How are or inter1dependent systems performingF Ahere shold we focs or continos improvement activitiesF Distinction $etween Aor# sampling and N&ime StdiesN Aor# sampling is lower cost $ecase it ses random samples instead of continos o$servations. Many operators or machines can $e stdied $y a single o$server Aor# sampling can span several days or wee#s! ths minimizing the effects of day to day load or e"ipment variations Aor# Sampling tends to minimize operator $ehavior modification dring o$servation. 1or3 Samlin#$ in #eneral$ &oes not re7'ire a traine& time,st'&! anal!st to ta3e t"e observations* Also$ sto2atc"es or ot"er timin# &evices are not re7'ire&* Man! st'&ies ma3e 'se o% o%%,s"i%t tec"nicians or oerators to ta3e t"e observations* 1or3 samlin# Met"o&olo#! *n analyst R*+D.M:E o$serves an activity Be"ipment! operating room! prodction lineC and notes the particlar states of the activity at each o$servation. &he ratio of the nm$er of o$servations of a given state of the activity to the total nm$er of o$servations ta#en will appro7imate the percentage of time that the activity is in that given state. +ote that random o$servations are very critical for a wor# sampling stdy. * $rief e7ample might $e that 99 of 1@@ o$servations showed a machine to $e rnning. Ae might then conclde! within certain statistical limits! that the e"ipment is operational 99P of the time. RECRU+TMENT 6 SE/ECT+ON R)3RD,&M)+& Definition .f Recritment0 'inding and Attracting Applications Recritment is the 4rocess of finding and attracting capa$le applicants for employment. &he 4rocess $egins when new recrits are soght and ends when their applications are s$mitted. &he reslt is a pool of application from which new employees are selected.' M)*+,+- ./ R)3RD,&M)+&0 Recritment is nderstood as the process of searching for and o$taining applicants for %o$s! from among them the right people can $e selected. &hogh theoretically recritment process is said to end with the receipt of applications! in practice the activity e7tends to the screening of applications so as to eliminate those who are not "alified for the %o$. 32 4DR4.S) *+D ,M4.R&*+3) ./ R)3RD,&M)+&0 1 1. Determine the present and ftre re"irements in con%nction with personnel planning and %o$ analysis activities 2. ,ncrease the pool of %o$ candidates at minimm cost (. Help increase sccess rate of selection process $y redcing nm$er of nder1"alified or over1"alified applications. 6. Redce the pro$a$ility that %o$ applicants once selected wold leave shortly <. Meet legal and social o$ligations =. ,dentify and prepare potential %o$ applicants 9. )valate effectiveness of varios recritment techni"es and sorces for %o$ applicants. /*3&.RS -.G)R+,+- R)3RD,&M)+& )7ternal /actors0 Demand and Spply BSpecific S#illsC Dnemployment Rate B*rea1wiseC :a$or Mar#et 3onditions 4olitical and :egal )nvironment BReservations! :a$or lawsC ,mage ,nternal /actors Recritment 4olicy B,nternal Hiring or )7ternal HiringFC Hman Resorce 4lanning B4lanning of resorces re"iredC Size of the .rganization B8igger the size lesser the recritment pro$lemsC 3ost -rowth and )7pansion 4lans R)3RD,&M)+& 4R.3)SS Recritment 4lanning +m$er of contacts &ypes of contacts Recritment Strategy Development Ma#e or 8y )mployees &echnological Sophistication Ahere to loo# How to loo# ,nternal Recritment BSorce 1C 4resent employees )mployee referrals &ransfers 5 4romotions /ormer )mployees 4revios *pplicants )valation of ,nternal Recritment )7ternal Recritment BSorce 2C 33 4rofessionals or &rade *ssociations *dvertisements )mployment )7changes 3amps Recritment Aal#1ins ,nterviews 3onsltants 3ontractors Displaced 4ersons Radio 5 &elevision *c"isitions 5 Mergers 3ompetitors )valation of )7ternal Recritment Searching Sorce activation Selling Screening of *pplications )valation and 3ost 3ontrol Salary 3ost Management 5 4rofessional &ime spent *dvertisement 3ost 4rodcing Spporting literatre Recritment .verheads and )7penses 3ost of .vertime and .tsorcing 3onsltant2s fees )valation of Recritment 4rocess Retrn rate of applications sent ot Sita$le 3andidates for selection Retention and 4erformance of selected candidates Recritment 3ost &ime lapsed data ,mage pro%ection ,+&)R+*: R)3RD,&M)+& *dvantages Disadvantages 1. :ess 3ostly 2. 3andidates already oriented towards organization (. .rganizations have $etter #nowledge a$ot internal candidates 6. )mployee morale and motivation is enhanced 1. .ld concept of doing things 2. ,t a$ets raiding (. 3andidates crrent wor# may $e affected 6. 4olitics play greater roles <. Morale pro$lem for those not promoted. )L&)R+*: R)3RD,&M)+& 34 *dvantages Disadvantages 1. 8enefits of new s#ills and talents 2. 8enefits of new e7periences (. 3ompliance with reservation policy $ecomes easy 6. Scope for resentment! %ealosies! and heart$rn are avoided. 1. 8etter morale and motivation associated with internal recriting is denied 2. ,t is costly method (. 3hances of creeping in false positive and false negative errors 6. *d%stment of new employees ta#es longer time. S):)3&,.+0 1 M)*+,+- ./ S):)3&,.+0 Selection is the process of pic#ing p individals Bot of the pool of %o$ applicantsC with re"isite "alifications and competence to fill %o$s in the organization. * formal definition of Selection is as nder Definition of Selection0 0rocess of differentiating Selection is the process of differentiating $etween applicants in order to identify and hire those with a greater li#elihood of sccess in a %o$.' D,//)R)+3) 8)&A))+ R)3RD,&M)+& *+D S):)3&,.+0 Recritment Selection 1. Recritment refers to the process of identifying and encoraging prospective employees to apply for %o$s. 2. Recritment is said to $e positive in its approach as it see#s to attract as many candidates as possi$le. 1. Selection is concerned with pic#ing p the right candidates from a pool of applicants. 2. Selection on the other hand is negative in its application in as mch as it see#s to eliminate as many n"alified applicants as possi$le in order to identify the right candidates. 4R.3)SS J S&)4S ,+ S):)3&,.+ 1. 4reliminary ,nterview0 &he prpose of preliminary interviews is $asically to eliminate n"alified applications $ased on information spplied in application forms. &he $asic o$%ective is to re%ect misfits. .n the other hands preliminary interviews is often called a cortesy interview and is a good p$lic relations e7ercise. 2. Selection &ests0 ;o$see#ers who past the preliminary interviews are called for tests. &here are varios types of tests condcted depending pon the %o$s and the company. &hese tests can $e *ptitde &ests! 4ersonality &ests! and *$ility &ests and are condcted 35 to %dge how well an individal can perform tas#s related to the %o$. 8esides this there are some other tests also li#e ,nterest &ests Bactivity preferencesC! -raphology &est BHandwritingC! Medical &ests! 4sychometric &ests etc. (. )mployment ,nterview0 &he ne7t step in selection is employment interview. Here interview is a formal and in1depth conversation $etween applicant2s accepta$ility. ,t is considered to $e an e7cellent selection device. ,nterviews can $e .ne1to1.ne! 4anel ,nterview! or Se"ential ,nterviews. 8esides there can $e Strctred and Dnstrctred interviews! 8ehavioral ,nterviews! Stress ,nterviews. 6. Reference 5 8ac#grond 3hec#s0 Reference chec#s and $ac#grond chec#s are condcted to verify the information provided $y the candidates. Reference chec#s can $e throgh formal letters! telephone conversations. However it is merely a formality and selections decisions are seldom affected $y it. <. Selection Decision0 *fter o$taining all the information! the most critical step is the selection decision is to $e made. &he final decision has to $e made ot of applicants who have passed preliminary interviews! tests! final interviews and reference chec#s. &he views of line managers are considered generally $ecase it is the line manager who is responsi$le for the performance of the new employee. =. 4hysical )7amination0 *fter the selection decision is made! the candidate is re"ired to ndergo a physical fitness test. * %o$ offer is often contingent pon the candidate passing the physical e7amination. 9. ;o$ .ffer0 &he ne7t step in selection process is %o$ offer to those applicants who have crossed all the previos hrdles. ,t is made $y way of letter of appointment. >. 3ontract of )mployment0 *fter the %o$ offer is made and candidates accept the offer! certain docments need to $e e7ected $y the employer and the candidate. Here is a need to prepare a formal contract of employment! containing written contractal terms of employment etc. )SS)+&,*:S ./ * -..D S):)3&,.+ 4R*3&,3) 1. Detailed %o$ descriptions and %o$ specifications prepared in advance and endorsed $y personnel and line management 2. &rained the selectors (. Determine aids to $e sed for selection process 6. 3hec# competence of recritment consltants $efore retention <. ,nvolve line managers at all stages =. *ttempt to validate the procedre 9. Help the appointed candidate to scceed $y training and management development 8*RR,)RS &. )//)3&,G) S):)3&,.+0 1 36 1. 4erception0 Ae all perceive the world differently. .r limited perceptal a$ility is o$viosly a stm$ling $loc# to the o$%ective and rational selection of people. 2. /airness0 8arriers of fairness incldes discrimination against religion! region! race or gender etc. (. Galidity0 * test that has $een validated can differentiate $etween the employees who can perform well and those who will not. However it does not predict the %o$ sccess accrately. 6. Relia$ility0 * relia$le test may fail to predict %o$ performance with precision. <. 4ressre0 4ressre $roght on selectors $y politicians! $reacrats! relatives! friends and peers to select particlar candidate are also $arriers to selection. TRA+N+NG 6 -E.E/OPMENT Definition of &raining 5 Development0 Improve performance >%raining ? !evelopment is any attempt to improve crrent or ftre employee performance $y increasing an employee2s a$ility to perform throgh learning! sally $y changing the employee2s attitde or increasing his or her s#ills and #nowledge.' M)*+,+- ./ &R*,+,+- 5 D)G):.4M)+&0 1 &he need for &raining and Development is determined $y the employee2s performance deficiency! compted as follows. &raining 5 Development +eed O Standard 4erformance *ctal 4erformance Ae can ma#e a distinction among &raining! Development and )dcation. Distinction $etween &raining and )dcation &raining )dcation *pplication oriented ;o$ e7perience Specific &as# in mind +arrow 4erspective &raining is ;o$ Specific &heoretical .rientation 3lassroom learning 3overs general concepts Has 8road 4erspective )dcation is no $ar &raining0 &raining refers to the process of imparting specific s#ills. *n employee ndergoing training is presmed to have had some formal edcation. +o training program is complete withot an element of edcation. Hence we can say that &raining is offered to operatives. )dcation0 ,t is a theoretical learning in classrooms. &he prpose of edcation is to teach theoretical concepts and develop a sense of reasoning and %dgment. &hat any training and development program mst contain an element of edcation is well nderstood $y HR Specialists. *ny sch program has niversity professors as resorce persons to enlighten participants a$ot theoretical #nowledge of the topics proposed to discss. ,n fact organizations depte or encorage 37 employees to do corses on part time $asis. 3).s are #nown to attend refresher corses condcted $y $siness schools. &he edcation is more important for managers and e7ectives rather than low cadre wor#ers. *nyways edcation is common to all employees! their grades notwithstanding. Development0 Development means those learning opportnities designed to help employees to grow. Development is not primarily s#ills oriented. ,nstead it provides the general #nowledge and attitdes! which will $e helpfl to employers in higher positions. )fforts towards development often depend on personal drive and am$ition. Development activities sch as those spplied $y management development programs are generally volntary in natre. Development provides #nowledge a$ot $siness environment! management principles and techni"es! hman relations! specific indstry analysis and the li#e is sefl for $etter management of a company. .$%ectives of BMD4C Management Development 4rograms .R *dvantages of Development 1. Ma#ing them Self1starters 3ommitted Motivated Reslt oriented Sensitive to environment Dnderstand se of power 2. 3reating self awareness (. Develop inspiring leadership styles 6. ,nstill zest for e7cellence <. &each them a$ot effective commnication =. &o s$ordinate their fnctional loyalties to the interests of the organization Difference $etween &raining and Development &raining Development &raining is s#ills focsed Development is creating learning a$ilities &raining is presmed to have a formal edcation Development is not edcation dependent &raining needs depend pon lac# or deficiency in s#ills Development depends on personal drive and am$ition &rainings are generally need $ased Development is volntary &raining is a narrower concept focsed on %o$ Development is a $roader concept focsed on 38 related s#ills personality development &raining may not inclde development Development incldes training wherever necessary &raining is aimed at improving %o$ related efficiency and performance Development aims at overall personal effectiveness inclding %o$ efficiencies Ahat are the &raining ,nptsF S#ills )dcation Development )thics 4ro$lem Solving S#ills Decision Ma#ing *ttitdinal 3hanges ,mportance of &raining 5 Development Helps remove performance deficiencies in employees -reater sta$ility! fle7i$ility and capacity for growth in an organization *ccidents! scraps and damages to machinery can $e avoided Serves as effective sorce of recritment ,t is an investment in HR with a promise of $etter retrns in ftre Redces dissatisfaction! a$senteeism! complaints and trnover of employees +eed of &raining ,ndividal level Diagnosis of present pro$lems and ftre challenges ,mprove individal performance or fi7 p performance deficiency ,mprove s#ills or #nowledge or any other pro$lem &o anticipate ftre s#ill1needs and prepare employee to handle more challenging tas#s &o prepare for possi$le %o$ transfers -rop level &o face any change in organization strategy at grop levels Ahen new prodcts and services are lanched &o avoid scraps and accident rates ,dentification of &raining +eeds BMethodsC ,ndividal &raining +eeds ,dentification 1. 4erformance *ppraisals 2. ,nterviews (. Kestionnaires 6. *ttitde Srveys <. &raining 4rogress /eed$ac# =. Aor# Sampling 39 9. Rating Scales -rop :evel &raining +eeds ,dentification 1. .rganizational -oals and .$%ectives 2. 4ersonnel J S#ills ,nventories (. .rganizational 3limate ,ndices 6. )fficiency ,ndices <. )7it ,nterviews =. M8. J Aor# 4lanning Systems 9. Kality 3ircles >. 3stomer Satisfaction Srvey ?. *nalysis of 3rrent and *nticipated 3hanges 8enefits of &raining +eeds ,dentification 1. &rainers can $e informed a$ot the $roader needs in advance 2. &rainers 4erception -aps can $e redced $etween employees and their spervisors&rainers can design corse inpts closer to the specific needs of the participants (. Diagnosis of cases of performance deficiencies can $e done Methods of &raining .n the ;o$ &rainings0 &hese methods are generally applied on the wor#place while employees is actally wor#ing. /ollowing are the on1 the1%o$ methods. *dvantages of .n1the1;o$ &raining0 ,t is directly in the conte7t of %o$ ,t is often informal ,t is most effective $ecase it is learning $y e7perience ,t is least e7pensive &rainees are highly motivated ,t is free from artificial classroom sitations Disadvantages of .n1the1;o$ &raining0 &rainer may not $e e7perienced enogh to train ,t is not systematically organized 4oorly condcted programs may create safety hazards .n the ;o$ &raining Methods 1. ;o$ Rotation0 ,n this method! sally employees are pt on different %o$s trn $y trn where they learn all sorts of %o$s of varios departments. &he o$%ective is to give a comprehensive awareness a$ot the %o$s of different departments. *dvantage employee gets to #now how his own and other departments also fnction. ,nterdepartmental coordination can $e improved! instills team spirit. Disadvantage ,t may $ecome too mch for an employee to learn. ,t is not focsed on employees own %o$ responsi$ilities. )mployees $asic talents may remain nder tilized. 2. ;o$ 3oaching0 *n e7perienced employee can give a ver$al presentation to e7plain the nitty1gritty2s of the %o$. 40 (. ;o$ ,nstrction0 ,t may consist an instrction or directions to perform a particlar tas# or a fnction. ,t may $e in the form of orders or steps to perform a tas#. 6. *pprenticeships0 -enerally fresh gradates are pt nder the e7perienced employee to learn the fnctions of %o$. <. ,nternships and *ssistantships0 *n intern or an assistants are recrited to perform a specific time1$ond %o$s or pro%ects dring their edcation. ,t may consist a part of their edcational corses. .ff the ;o$ &rainings0 &hese are sed away from wor# places while employees are not wor#ing li#e classroom trainings! seminars etc. /ollowing are the off1the1%o$ methodsI *dvantages of .ff1the1;o$ &raining0 &rainers are sally e7perienced enogh to train ,t is systematically organized )fficiently created programs may add lot of vale Disadvantages of .ff1the1;o$ &raining0 ,t is not directly in the conte7t of %o$ ,t is often formal ,t is not $ased on e7perience ,t is least e7pensive &rainees may not $e highly motivated ,t is more artificial in natre .ff the ;o$ &raining Methods 1. 3lassroom :ectres0 ,t is a ver$al lectre presentation $y an instrctor to a large adience. *dvantage ,t can $e sed for large grops. 3ost per trainee is low. Disadvantages :ow poplarity. ,t is not learning $y practice. ,t is .ne1way commnication. +o athentic feed$ac# mechanism. :i#ely to $oredom. 2. *dio1Gisal0 ,t can $e done sing /ilms! &elevisions! Gideo! and 4resentations etc. *dvantages Aide range of realistic e7amples! "ality control possi$le!. Disadvantages .ne1way commnication! +o feed$ac# mechanism. +o fle7i$ility for different adience. (. Simlation0 creating a real life sitation for decision1ma#ing and nderstanding the actal %o$ conditions give it. /ollowing are some of the simlation methods of trainings a. 3ase Stdies0 ,t is a written description of an actal sitation and trainer is spposed to analyze and give his conclsions in writing. &he cases are generally $ased on actal organizational sitations. ,t is an ideal method to promote decision1ma#ing a$ilities within the constraints of limited data. Role 4lays0 Here trainees assme the part of the specific personalities in a case stdy and enact it in front of the adience. ,t is more emotional orientation and improves interpersonal relationships. *ttitdinal change is another reslt. &hese are generally sed in MD4. 41 $. Sensitivity &rainings0 &his is more from the point of view of $ehavioral assessment! nder different circmstances how an individal will $ehave himself and towards others. &here is no preplanned agenda and it is instant. *dvantages increased a$ility to empathize! listening s#ills! openness! tolerance! and conflict resoltion s#ills. Disadvantage 4articipants may resort to their old ha$its after the training. 6. 4rogrammed ,nstrctions0 4rovided in the form of $loc#s either in $oo# or a teaching machine sing "estions and /eed$ac#s withot the intervention of trainer. *dvantages Self paced! trainees can progress at their own speed! strong motivation for repeat learning! material is strctred and self1contained. Disadvantages Scope for learning is lessI cost of $oo#s! manals or machinery is e7pensive. <. 3ompter *ided ,nstrctions0 ,t is e7tension of 4, method! $y sing compters. *dvantages 4rovides acconta$ilities! modifia$le to technological innovations! fle7i$le to time. Disadvantages High cost. =. :a$oratory &raining 8arriers to )ffective &raining0 1. :ac# of Management commitment 2. ,nade"ate &raining $dget (. )dcation degrees lac# s#ills 6. :arge scale poaching of trained staff <. +on1coordination from wor#ers de to downsizing trends =. )mployers and 8 Schools operating distantly 9. Dnions inflence How &o Ma#e &raining )ffectiveF 1. Management 3ommitment 2. &raining 5 8siness Strategies ,ntegration (. 3omprehensive and Systematic *pproach 6. 3ontinos and .ngoing approach <. 4romoting :earning as /ndamental Gale =. 3reations of effective training evalation system +N-UCT+ON 6 OR+ENAT+ON Definition 10 0lanned Introduction ,t is a 4lanned ,ntrodction of employees to their %o$s! their co1 wor#ers and the organization per se.' .rientation conveys 6 types of information0 1. Daily Aor# Rotine 2. .rganization 4rofile (. ,mportance of ;o$s to the organization 6. Detailed .rientation 4resentations4rpose of .rientation 1. &o ma#e new employees feel at home in new environment 2. &o remove their an7iety a$ot new wor#place (. &o remove their inade"acies a$ot new peers 42 6. &o remove worries a$ot their %o$ performance <. &o provide them %o$ information! environment &ypes of .rientation 4rograms 1. /ormal or ,nformal 2. ,ndividal or -rop (. Serial or Dis%nctive 4rere"isites of )ffective .rientation 4rogram 1. 4repare for receiving new employee 2. Determine information new employee wants to #now (. Determine how to present information 6. 3ompletion of 4aperwor# 4ro$lems of .rientations 1. 8sy or Dntrained spervisor 2. &oo mch information (. .verloaded with paperwor# 6. -iven menial tas#s and discorage interests <. Demanding tas#s where failre chances are high =. )mployee thrown into action soon 9. Arong perceptions of employees Ahat is the difference $etween indction and orientationF ,ndction referred to formal training programs that an employee had to complete $efore they cold start wor# Orientation 9as the informal information gi%ing that made the recr"it a9are of the comfort iss"es / 9here the facilities are3 9hat time l"nch is and so forth'How long shold the indction process ta#eF ,t starts when the %o$ ad is written! contines throgh the selection process and is not complete ntil the new team mem$er is comforta$le as a fll contri$tor to the organizationHs goals. &he first hor on day one is a critical component 1 signing on! issing #eys and passwords! e7plaining no go zones! emergency procedres! meeting the people that yo will interact with all have to $e done immediately. Dntil they are done the newcomer is on the payroll! $t is not employed. After that it is a matter of &"st in time training / e8panding the content as ne9 d"ties are "nderta5en' 2e only employ ne9 people one at a time / ho9 can 9e ind"ct them= &here are some isses! which cannot wait 1 they vary according to yor sitation. 4erhaps a $ddy system on the %o$ may $e the $est way to deal with these. .ther s$%ects may $e incorporated with refresher training for crrent staff! or handled as participant in an otside program. 4erhaps some can wait ntil there are grops of people who have started in the last few months. 43 This may ta5e some creati%e thin5ing3 #"t the ans9er is !"ite simple / "ntil the ne9 people are integrated then they are less "sef"l' The math is often ama$ingly simple / not ta5ing the time to train cons"mes more time than the training 9o"ld' Ahat levels of staff need indctionF E%ery#ody' The CEO needs to 5no9 di4erent things to the temporary concierge3 #"t e%eryone needs a planned program of ind"ction and orientation' 4:*3)M)+& 4lacement is allocation of people to %o$s. ,t is assignment or reassignment of an employee to a new or different %o$. MD:&, SQ,::,+- Mlti S#illing is &he ,ntegrated S#ills 4rogram that has $een developed to $ild on the e7isting s#ills of the crrent wor# force to redce redndancies and avoid downsizing sitations. &he o$%ective of this program is to gain total integration of s#ills. &he program is $ased arond Mon1the1%o$2 5 Moff1the1%o$2 competence. &hat is the a$ility to do the %o$ on the shop floor Btraining to gain wor# e7perienceC and Moff1the1%o$2 Btraining in the classroomC to gain nderpinning #nowledge. &he program re"ires the individal to demonstrate competence in a nm$er of different s#ills and this competence is measred and assessed on the %o$.Mlti1s#illing of corse wor#s $est with more advanced s#illed wor#ers $ecase their individal s#ills levels are developed enogh where they can flidly transition from one s#ill to the ne7t withot degradation of a s#ills performance. ,f yo are mlti1 s#illing and a great percentage of yor wor#ers are having pro$lems e7ecting one of the s#ills effectively it is pro$a$ly a good signal yo need to go $ac# to $asics with that s#ill and pll it ot of the mlti1 s#illing se"ences. *nother advantage of mlti1s#illing is the positive effect of what is called Nconte7tal learningN. 3onte7tal learning involves discovery and improvement from two s#ills! which donHt! on the srface! appear to have a direct relationship.&he disadvantages of mlti1s#illing inclde the o$vios danger of moving on to "ic#ly toward advanced s#ills and com$inations withot sfficiently drilling $asic s#ills. Ahile there is a great desire to learn "ic#ly , thin# this is one of the reason we are seeing $etter s#illed from some of the $est wor#ers. &he conse"ence is that we $ecome Npartially s#illedN. &he greater the nm$er of partial s#ills we develop! the less chance we ever have of reaching or fll potential. 3H*+-) M*+*-)M)+& 44 3hange vis1R1vis Recritment 4erformance *ppraisals Meaning of 3hange0 *lterations in 4eople! Strctre and &echnology )7ternal /orces of 3hange0 Mar#etplace :a$or mar#ets )conomic 3hanges &echnology :aws and Reglations ,nternal /orces of 3hange 3orporate Strategies Aor#place &echnology and )"ipments )mployee *ttitdes 3hange *gents0 BAho can $ring a$ot changeFC Managers )7ternal 3onsltants Staff Specialists 4rocess of 3hange B:ewins stepsC Dnfreezing 3hanging Refreezing Ahite water rapids metaphor :ac# of Sta$ility :ac# of 4redicta$ility Girtal 3haos 3onstant 3hange Resistance to 3hange Dncertainty and *m$igity 4ersonal :oss 3oncerns Dis$elief in 3hange $enefits &echni"es of Redcing Resistance to 3hange )dcation and 3ommnication +egotiation Maniplation and 3o1optation 4articipation /acilitation 3oercion 3hange Management Strctral 3hanges &echnological 3hanges 4eople 3hanges 45 *thority 3oordination 3entralization 4rocesses Methods )"ipments *ttitdes )7pectations 8ehaviors .rganizational Development &echni"es Srvey /eed$ac# Sensitivity &raining 4rocess 3onsltation &eam 8ilding ,nter1grop Development 3onditions /acilitating 3hange Dramatic 3risis :eadership 3hange Aea# 3ltre Eong and Small .rganization BageingC &he Road to 3hange in 3ltre *nalyze the cltre +eed for change +ew leadership Reorganize Restrctre +ew stories and ritals 3hange the %o$ systems &KM GJs. Reengineering &KM B&otal Kality ManagementC Re engineering 3ontinos 3hange /i7ing and ,mproving Mostly focsed on M*s1,s2 Systems indispensa$le 8ottom to &op Radical and .ne time 3hange Redesigning Mostly focsed on Mwhat can $eF2 &op to 8ottom Managing Downsized Aor#force .pen and honest commnication *ssistance to them Help for srvivors of the downsized Stress in Aor#place .pportnities stress Demands stress 3onstraints stress How to redce wor#place stress )mployee selection .rganizational commnication 4erformance 4lanning ;o$ redesign especially when processes change! %o$s merged! and relocation happens 46 )mployee conseling &ime management programs Ahat is creativityF 3om$ining new ideas in ni"e ways or associating ideas in nsal ways Ahat is innovationF &rning creative ideas into sefl prodcts! services or methods of operations ( Sets of varia$le simlate innovation Strctral 3hanges 3ltral 3hanges H"man Reso"rces Changes 3hange Defined N3hange is the window throgh which the ftre enters yor life.N ,tHs all arond yo! in many types and shapes. Eo can $ring it a$ot yorself or it can come in ways Ahy 3hange ManagementF Eo can $ring the change a$ot yorself or it can come in ways that give yo little choice a$ot its what! when! and how. /ighting against change can slow it down or divert it! $t it wonHt stop it however. ,f yo wish to scceed in this rapidly changing new world Nyo mst learn to loo# on change as a friend 1 one who presents yo with an opportnity for growth and improvement.N ? &he rate of change in todayHs world is constantly increasing. )verything that e7ists is getting old! wearing ot and shold $e replaced. NRevoltionary technologies! consolidation! well1fnded new competition! npredicta$le cstomers! and a "ic#ening in the pace of change hrled nfamiliar conditions at management.N 9 &re sccess and long1term prosperity in the new world depends on yor a$ility to adapt to different and constantly changing conditions. &he strategic selection of the $est strategic positioning in the playing field! or the 8siness Space! yor firm mst ta#e is complicated $y the fact that the characteristics of the 8siness Space change over time. &oday! the world is a different place than it was yesterday. N*t certain points! the difference $ecomes material. Sccessfl firms recognize change. Gery sccessfl ones anticipate it.N > )voltionary B4lannedC 3hange verss Revoltionary *ction How yo change a $siness nit to adapt to shifting economy and mar#ets is a matter of management style. )voltionary change! that involves setting direction! allocating responsi$ilities! and esta$lishing reasona$le timelines for achieving o$%ectives! is relatively painless. However! it is rarely fast enogh or comprehensive enogh to move ahead of the crve in an evolving world where sta#es are high! and 47 the response time is short. Ahen faced with mar#et1driven rgency! a$rpt and sometimes disrptive change! sch as dramatic downsizing or reengineering! may $e re"ired to #eep the company competitive. ,n sitations when timing is critical to sccess! and companies mst get more efficient and prodctive rapidly! revoltionary change is demanded. Ahen choosing $etween evoltionary change and revoltionary action! a leader mst prse a $alanced and pragmatic approach. Swinging too far to revoltionary e7treme may create Nan organizational cltre that is so impatient! and so focsed on change! that it fails to give new initiatives and new personnel time to ta#e root! sta$ilize! and grow. AhatHs more! it creates a high1tension environment that intimidates rather than nrtres people! leaving them with little or no emotional investment in the company.N 6 Resistance to 3hange Most people donHt li#e change $ecase they donHt li#e $eing changed. N,f yo want to ma#e enemies! try to change somethingN! advised Aoodrow Ailson. Ahen see#ing to change an organization! itHs strategy or processes! leaders rn into +ewtonHs law that a $ody at rest tends to stay at rest. *dvocates for change are greeted with sspicion! anger! resistance! and even sa$otage. 6 N+ot invented hereN syndrome also #eeps many sond ideas from gaining the o$%ective assessment they deserve...More &odayHs Aorld Realities &he magnitde of todayHs environmental! competitive! and glo$al mar#et change is nprecedented. ,tHs a very interesting and e7citing world! $t itHs also volatile and chaotic0 Golatility descri$es the economyHs rate of change0 e7tremely fast! with e7plosive psrges and sdden downtrns. 3haos descri$es the direction of the economyHs changes0 weHre not sre e7actly where weHre headed! $t we are swinging $etween the varios alternatives at a very high speed. =
&o cope with an npredicta$le world yo mst $ild an enormos amont of fle7i$ility into yor organization. Ahile yo cannot predict the ftre! yo can get a handle on trends! which is a way to ta#e advantage of change and convert ris#s into opportnities. 3reating 3hange for ,mprovement and 3ompetitive *dvantage 3hange creates opportnities! $t only for those who recognize and seize it. NSeeing is the first step! seizing the second! and continosly innovating is the third.N < ,nnovation redefines growth opportnities. *s crrent prodcts are $ecoming o$solete faster than ever! in order to 48 srvive and prosper! organizations continally need to improve! innovate and modify their prodcts and services. &he Silicon Galley slogan N)at lnch and yo are lnchN is more than a reflection of increasingly intense wor# ethic. Riding the wave of change is $ecoming the most important part of the $siness. Ahile the economy is shifting and innovation is rampant! Ndoing it the same wayN is a recipe for corporate e7tinction. 1 Sccessfl change efforts are those where the choices $oth are internally consistent and fit #ey e7ternal and sitational varia$les. NEo have to find s$tle ways to introdce change! new concepts! and give feed$ac# to people so that they can accept and grow with it.N 6 *nticipating 3hange &here is $ig difference $etween anticipating and gessing. *nticipation means e7pecting! $eing aware of something in advance! to regard it as possi$le. &he a$ility to anticipate is one of the #ey ingredients of efficient speed and change management. N8eing a$le to anticipate that which is li#ely to occr in the ne7t few months and the ne7t few years is enogh to give yo an edge over ??P of the poplation who simply go along with whatever happens.N 9 How can yo see the ftreF *ctally! anticipation is natral 1 everyone does it every day. Dnfortnately! most people limit e7ercising their anticipatory s#ills to daily rotine matters. *ll yo really need to start applying these s#ills for yor $siness is a small head start...More Starting with Eorself &he $est place to start change is with yorself. ,f whatever yo do doesnHt wor#! yo mst $e fle7i$le 1 yo mst change yor action plan if the crrent one does not prodce the re"ired reslts. ,f yo want other people to change! yo mst $e prepared to ma#e the first step yorself. ,f yo cannot change yor environment! yo shold change yor attitde. &o achieve effective personal change! consider practicing the +:4 &echnology of *chievement that was specially developed to discover how people can e7cel! and most particlarly when managing change 1 how to create the Hdifference that ma#es the differenceH...More :eading 3hange&he old ways of management no longer wor# and will never wor# again. Sccessfl change re"ires leadership. Ahen change fails to occr as planned! the case if often to $e fond at a deeper level! rooted in the inappropriate $ehavior! $eliefs! attitdes! and assmptions of wold1$e leaders. = :eadership is all a$ot the process of change0 how to stay ahead of it! master it! $enefit from the opportnities it $rings. &he $est leaders stri#e first $y ta#ing the 49 offensive against economic cycles! mar#et trends! and competitors. &hey discover the most effective ways for achieving significant change 1 Na change that identifies the realities of the $siness environment and reorders them so that a new force is a$le to leverage! rather than resist! those realities in order to achieve a competitive advantage.N 6 &he following system will help yo to nleash the power of yor organization and reshape it into a more competitive enterprise0 Develop a vision. &o create a seamless $ridge from the vision to action! start with yor top management team 1 they shold nderstand and em$race yor vision. *lign all yor people against the endgame. ,nvite their opinion regarding critical isses sch as the direction yo shold $e headed! the changes yo have to ma#e! and the resorces yo have to ac"ire. Dsing the employee feed$ac#! develop a strategic plan. Stay laser1focsed on the methods that will drive yor $siness nit towards its stated o$%ectives. 8ild a diverse leadership grop representing all the #ey constitencies of yor organization. &hey will share responsi$ility for plan management. Share detail information a$ot the company and the change progress 1 people have to nderstand where yo are and where yo are going in order to contri$te effectively to yor mission.Managing .rganizational 3hange Sccess in $siness doesnHt come from feeling comforta$le. ,n todayHs technology1driven world! $siness life cycles have accelerated e7ponentially. &he challenge is to #eep a step ahead of changing mar#et conditions! new technologies and hman resorces isses. &he wheel of $siness evoltion is a framewor# and set of tools! which ena$les yo to manage the comple7 process of organizational change and transformation more effectively. &he se"ence of the eight segments 1 $siness environment! $siness ecosystem! $siness design! leadership style! organizational vales! management process! #nowledge management systems! and performance measres 1 reflects the learning cycle that occrs when otside1in or $ottom1p learning ta#es place.8ehavioral 3hange &he challenge and the shape of an organizationHs $ehavioral change program depend on the corporate cltre and the targeted $ehaviors that need to $e changed. Eor change program needs to $e e7plicitly $ilt arond these challenges. NGery often! these programs involve the creation of incentives which elegantly reinforce the desired $ehavior Band therein reinforce the change loop in the learning dynamicC.N > ...Motivating )mployees to )m$race 3hange 50 Eo have a choice of instrments to motivate yor people to em$race change. 4erformance1incentive levers are especially sefl in driving those who lac# direction or initiative. Eo may also encorage employee feed$ac# on where and how the company can ta#e corrective action and reward employees for their contri$tion. ,n any case! Nonce yo open the gates and encorage employees to serve as agents of change! yo mst demonstrate that their inpt will have a real1world impact on the way yor company does $siness.N 6 .n the other side! yo have to $e rather aggressive when dealing with people who view change as a threat and create road$loc#s that stall progress. *nyone who thin#s that itHs harmless to ma#e e7ceptions for a few people and shift resorces to accommodate poor performers is missing an important point. N,tHs not a few people who are at sta#e! itHs the corporate cltreN! says Miles -reer! of Savannah )lectric. N8y permitting those who resist or retaliate against change to remain in the company! yo $roadcast a message that sggests spporting the companyHs mission statement is optional. )ven worse! yo permit the least1committed employees to taint and inflence the attitde and performance of their peers.N Moving with Speed ,n the new economy where everything is moving faster and itHs only going to get faster! the new mantra is! NDo it more with less and do it faster.N 1 &o $e a$le to move with speed! companies need to esta$lish a change1friendly environment and develop for ma%or competencies0 fast thin#ing! fast decision ma#ing! fast acting! and sstaining speed. Ma#ing Kic# Decisions throgh )sta$lishing -iding 4rinciples /ast companies that have demonstrated the a$ility to sstain srge and velocity all have esta$lished sets of giding principles to help them ma#e "ic# decisions. *$andoning theoretical and politically correct HvalesH and $reacratic procedres in favor of a practical! down1to1earth list of giding principles will help yor company ma#e the decision1ma#ing process mch faster. .nly one "estion will need to $e as#ed of any proposed corse of action0 Does it fit or giding principlesF PER4ORMANCE APPRA+SA/S Definition 10 Systematic *valuation ,t is a systematic evalation of an individal with respect to performance on the %o$ and individal2s potential for development.' Definition 20 'ormal System, "easons and ,easures of future performance ,t is formal! strctred system of measring! evalating %o$ related $ehaviors and otcomes to discover reasons of performance and how 51 to perform effectively in ftre so that employee! organization and society all $enefits.' Meaning of 4erformance *ppraisals 4erformance *ppraisals is the assessment of individal2s performance in a systematic way. ,t is a developmental tool sed for all rond development of the employee and the organization. &he performance is measred against sch factors as %o$ #nowledge! "ality and "antity of otpt! initiative! leadership a$ilities! spervision! dependa$ility! co1operation! %dgment! versatility and health. *ssessment shold $e confined to past as well as potential performance also. &he second definition is more focsed on $ehaviors as a part of assessment $ecase $ehaviors do affect %o$ reslts. 4erformance *ppraisals and ;o$ *nalysis Relationship ;o$ *nalysis 4erformance Standards 4erformance *ppraisals Descri$e the wor# and personnel re"irement of a particlar %o$. &ranslate %o$ re"irements into levels of accepta$le or naccepta$le performance Descri$e the %o$ relevant strengths and wea#nesses of each individal. .$%ectives of 4erformance *ppraisals Dse of 4erformance *ppraisals 1. 4romotions 2. 3onfirmations (. &raining and Development 6. 3ompensation reviews <. 3ompetency $ilding =. ,mprove commnication 9. )valation of HR 4rograms >. /eed$ac# 5 -rievances 6 -oals of 4erformance *ppraisals -eneral -oals Specific -oals Developmental Dse ,ndividal needs 4erformance feed$ac# &ransfers and 4lacements Strengths and Development needs *dministrative Decisions J Dses Salary 4romotion Retention J &ermination Recognition :ay offs 52 4oor 4erformers identification .rganizational Maintenance HR 4lanning &raining +eeds .rganizational -oal achievements -oal ,dentification HR Systems )valation Reinforcement of organizational needs Docmentation Galidation Research /or HR Decisions :egal Re"irements 4erformance *ppraisal 4rocess 1. .$%ectives definition of appraisal 2. ;o$ e7pectations esta$lishment (. Design an appraisal program 6. *ppraise the performance <. 4erformance ,nterviews =. Dse data for appropriate prposes 9. ,dentify opportnities varia$les >. Dsing social processes! physical processes! hman and compter assistance Difference $etween &raditional and Modern BSystemsC approach to *ppraisals #ategories %raditional Appraisals ,odern, Systems Appraisals -iding Gales ,ndividalistic! 3ontrol oriented! Docmentary Systematic! Developmental! 4ro$lem solving :eadership Styles Directional! )valative /acilitative! 3oaching /re"ency .ccasional /re"ent /ormalities High :ow Rewards ,ndividalistic -roped! .rganizational &)3H+,KD)S J M)&H.DS ./ 4)R/.RM*+3) *44R*,S*:S +meros methods have $een devised to measre the "antity and "ality of performance appraisals. )ach of the methods is effective for some prposes for some organizations only. +one shold $e dismissed or accepted as appropriate e7cept as they relate to the particlar needs of the organization or an employee. 8roadly all methods of appraisals can $e divided into two different categories. 53 4ast .riented Methods /tre .riented Methods 4ast .riented Methods 1. Rating Scales0 Rating scales consists of several nmerical scales representing %o$ related performance criterions sch as dependa$ility! initiative! otpt! attendance! attitde etc. )ach scales ranges from e7cellent to poor. &he total nmerical scores are compted and final conclsions are derived. *dvantages *dapta$ility! easy to se! low cost! every type of %o$ can $e evalated! large nm$er of employees covered! no formal training re"ired. Disadvantages Rater2s $iases 2. 3hec#list0 Dnder this method! chec#list of statements of traits of employee in the form of Ees or +o $ased "estions is prepared. Here the rater only does the reporting or chec#ing and HR department does the actal evalation. *dvantages economy! ease of administration! limited training re"ired! standardization. Disadvantages Raters $iases! se of improper weighs $y HR! does not allow rater to give relative ratings (. /orced 3hoice Method0 &he series of statements arranged in the $loc#s of two or more are given and the rater indicates which statement is tre or false. &he rater is forced to ma#e a choice. HR department does actal assessment. *dvantages *$sence of personal $iases $ecase of forced choice. Disadvantages Statements may $e wrongly framed. 6. /orced Distri$tion Method0 here employees are clstered arond a high point on a rating scale. Rater is compelled to distri$te the employees on all points on the scale. ,t is assmed that the performance is conformed to normal distri$tion. *dvantages )liminates Disadvantages *ssmption of normal distri$tion! nrealistic! errors of central tendency. <. 3ritical ,ncidents Method0 &he approach is focsed on certain critical $ehaviors of employee that ma#es all the difference in the performance. Spervisors as and when they occr record sch incidents. *dvantages )valations are $ased on actal %o$ $ehaviors! ratings are spported $y descriptions! feed$ac# is easy! redces recency $iases! chances of s$ordinate improvement are high. Disadvantages +egative incidents can $e prioritized! forgetting incidents! overly close spervisionI feed$ac# may $e too mch and may appear to $e pnishment. =. 8ehaviorally *nchored Rating Scales0 statements of effective and ineffective $ehaviors determine the points. &hey are said to $e $ehaviorally anchored. &he rater is spposed to say! which $ehavior descri$es the employee performance. *dvantages helps overcome rating errors. Disadvantages Sffers from distortions inherent in most rating techni"es. 54 9. /ield Review Method0 &his is an appraisal done $y someone otside employees2 own department sally from corporate or HR department. *dvantages Dsefl for managerial level promotions! when compara$le information is needed! Disadvantages .tsider is generally not familiar with employees wor# environment! .$servation of actal $ehaviors not possi$le. >. 4erformance &ests 5 .$servations0 &his is $ased on the test of #nowledge or s#ills. &he tests may $e written or an actal presentation of s#ills. &ests mst $e relia$le and validated to $e sefl. *dvantage &ests may $e apt to measre potential more than actal performance. Disadvantages &ests may sffer if costs of test development or administration are high. ?. 3onfidential Records0 Mostly sed $y government departments! however its application in indstry is not rled ot. Here the report is given in the form of *nnal 3onfidentiality Report B*3RC and may record ratings with respect to following itemsI attendance! self e7pression! team wor#! leadership! initiative! technical a$ility! reasoning a$ility! originality and resorceflness etc. &he system is highly secretive and confidential. /eed$ac# to the assessee is given only in case of an adverse entry. Disadvantage is that it is highly s$%ective and ratings can $e maniplated $ecase the evalations are lin#ed to HR actions li#e promotions etc. 1@. )ssay Method0 ,n this method the rater writes down the employee description in detail within a nm$er of $road categories li#e! overall impression of performance! promotea$ility of employee! e7isting capa$ilities and "alifications of performing %o$s! strengths and wea#nesses and training needs of the employee. *dvantage ,t is e7tremely sefl in filing information gaps a$ot the employees that often occr in a $etter1strctred chec#list. Disadvantages ,t its highly dependent pon the writing s#ills of rater and most of them are not good writers. &hey may get confsed sccess depends on the memory power of raters. 11. 3ost *cconting Method0 Here performance is evalated from the monetary retrns yields to his or her organization. 3ost to #eep employee! and $enefit the organization derives is ascertained. Hence it is more dependent pon cost and $enefit analysis. 12. 3omparative )valation Method BRan#ing 5 4aired 3omparisonsC0 &hese are collection of different methods that compare performance with that of other co1wor#ers. &he sal techni"es sed may $e ran#ing methods and paired comparison method. "an-ing ,ethods( Sperior ran#s his wor#er $ased on merit! from $est to worst. However how $est and why $est are not ela$orated in this method. ,t is easy to administer and e7planation. 55 0aired #omparison ,ethods( ,n this method each employee is rated with another employee in the form of pairs. &he nm$er of comparisons may $e calclated with the help of a formla as nder. + 7 B+11C J 2 /tre .riented Methods 1. Management 8y .$%ectives0 ,t means management $y o$%ectives and the performance is rated against the achievement of o$%ectives stated $y the management. M8. process goes as nder. )sta$lish goals and desired otcomes for each s$ordinate Setting performance standards 3omparison of actal goals with goals attained $y the employee )sta$lish new goals and new strategies for goals not achieved in previos year. *dvantage ,t is more sefl for managerial positions. Disadvantages +ot applica$le to all %o$s! allocation of merit pay may reslt in setting short1term goals rather than important and long1term goals etc. 2. 4sychological *ppraisals0 &hese appraisals are more directed to assess employees potential for ftre performance rather than the past one. ,t is done in the form of in1depth interviews! psychological tests! and discssion with spervisors and review of other evalations. ,t is more focsed on employees emotional! intellectal! and motivational and other personal characteristics affecting his performance. &his approach is slow and costly and may $e sefl for $right yong mem$ers who may have considera$le potential. However "ality of these appraisals largely depend pon the s#ills of psychologists who perform the evalation. (. *ssessment 3enters0 &his techni"e was first developed in DS* and DQ in 1?6(. *n assessment center is a central location where managers may come together to have their participation in %o$ related e7ercises evalated $y trained o$servers. ,t is more focsed on o$servation of $ehaviors across a series of select e7ercises or wor# samples. *ssessees are re"ested to participate in in1$as#et e7ercises! wor# grops! compter simlations! role playing and other similar activities which re"ire same attri$tes for sccessfl performance in actal %o$. &he characteristics assessed in assessment center can $e assertiveness! persasive a$ility! commnicating a$ility! planning and organizational a$ility! self confidence! resistance to stress! energy level! decision ma#ing! sensitivity to feelings! administrative a$ility! creativity and mental alertness etc. Disadvantages 3osts of employees traveling and lodging! psychologists! ratings strongly inflenced $y assessee2s inter1personal s#ills. Solid performers may feel sffocated in simlated sitations. &hose who are not selected for this also may get affected. 56 *dvantages well1condcted assessment center can achieve $etter forecasts of ftre performance and progress than other methods of appraisals. *lso relia$ility! content validity and predictive a$ility are said to $e high in assessment centers. &he tests also ma#e sre that the wrong people are not hired or promoted. /inally it clearly defines the criteria for selection and promotion. 6. (=@1Degree /eed$ac#0 ,t is a techni"e which is systematic collection of performance data on an individal grop! derived from a nm$er of sta#eholders li#e immediate spervisors! team mem$ers! cstomers! peers and self. ,n fact anyone who has sefl information on how an employee does a %o$ may $e one of the appraisers. &his techni"e is highly sefl in terms of $roader perspective! greater self1development and mlti1sorce feed$ac# is sefl. (=@1degree appraisals are sefl to measre inter1personal s#ills! cstomer satisfaction and team $ilding s#ills. However on the negative side! receiving feed$ac# from mltiple sorces can $e intimidating! threatening etc. Mltiple raters may $e less adept at providing $alanced and o$%ective feed$ac#. )thics of 4erformance *ppraisals J :egally defensi$le 4erformance *ppraisals )thics of 4rocedres 1. /ormal Standardized 4erformance *ppraisal Systems 2. Dniform to all employees! no illegal differentiations $ased on cast! religion etc. (. Standards formally commnicated to all employees 6. /reedom to review performance appraisal reslts <. /ormal appeal process a$ot ratings and %dgments =. Aritten instrctions and training to raters 9. *ll personal decision ma#ers shold $e aware of anti1discrimination laws. )thics of 3ontents 1. 3ontent $ased on %o$ analysis 2. &raits $ased appraisals shold $e avoided (. .$%ectively verifia$le data shold $e sed 6. 3onstraints on performance $eyond control shold $e prevented <. Specific %o$ related dimensions to $e sed rather than single or glo$al dimensions. =. Dimensions mst $e assigned weight to reflect relative importance in performance score )thics of Docmentation of Reslts 1. * thoroghly written record of evidence leading to termination shold $e maintained 2. Aritten docmentation of e7treme ratings shold $e maintained (. Docmentation shold $e consistent among the raters. 57 )thics of Raters 1. &he raters shold $e trained in how to se an appraisal system 2. &he rater mst have opportnity to o$serve ratees first hand and review important ratee performance prodcts. (. Dse of more than one rater is desira$le to redce $iases. .rganizational Spport /actors for 4erformance *ppraisal Systems 4erformance appraisal serves many organizational o$%ectives and goals. 8esides encoraging high level of performance! the evalation system is sefl in identifying employees with potential! rewarding them e"ita$ly! and determining employee needs for development. *ll these activities are instrmental in achieving corporate plans and long1term growth! typical appraisal system in most organizations have $een focsed on short1term goals only. /rom the strategic management point of views! organizations can $e groped nder ( different categories as defenders! prospectors and analyzers. Defenders0 &hey have narrow and sta$le prodct mar#et domain. &hey don2t need to ma#e any ad%stment in technology! strctre or methods of operations etc. &hey devote entire attention on improving e7isting operations. 8ecase of emphasis on s#ill $ilding sccessfl defenders se appraisals as means for identifying training needs. ,t is more $ehavior oriented. 4rospectors0 &hey continosly search for new prodcts and opportnities. &hey e7periment reglarly to new and emerging trends. &hey more focs on s#ills identification and ac"isition of hman resorces from e7ternal sorces prospectors often se appraisals for identifying staffing needs. &he focs is on reslts. *nalyzers0 &hey operate in two type of prodct domain mar#ets. .ne is sta$le and other is changing. &hey watch their competitors closely and rapidly adopt the ideas that are promising. &hey se cost effective technologies for sta$le prodcts and matri7 technologies for new prodcts. *nalyzers tend to emphasize on s#ills $ilding and s#ills ac"isitions and employ e7tensive training programs. Hence they se appraisal more for training and staffing prposes. However performance appraisal systems has strategic importance in three different ways. /eed$ac# Mechanism0 4erformance evalation is the central mechanism that not only provides feed$ac# to individals $t also aids in the assessment of the progress of organization as a whole. Aithot appraisals managers of any firm can only gess as to whether or not employees are wor#ing towards realization of the organization goals. 3onsistency $etween strategy and %o$ $ehavior0 4erformance appraisal not only is a means of #nowing if the employee $ehavior is consistent with the overall strategies focs $t also a way of $ringing 58 to the fore any negative conse"ence of the strategy $ehavior fit. &hs the performance appraisal system is an important mechanism to elicit feed$ac# on the consistency of the strategy $ehavior lin#. 3onsistency $etween Gales and ;o$ 8ehavior lin#0 4erformance evalation is a mechanism to reinforce vales and cltre of the organization. *nother importance is to align appraisal with organizational cltre. &hs the prpose of performance evalation is to ma#e sre that employee2s goals! employees $ehavior and feed$ac# of information a$ot performance are all lin#ed to the corporate strategy. )ssentials of a -ood 4erformance *ppraisal System0 1. Standardized 4erformance *ppraisal System 2. Dniformity of appraisals (. Defined performance standards 6. &rained Raters <. Dse of relevant rating tools or methods =. Shold $e $ased on %o$ analysis 9. Dse of o$%ectively verifia$le data >. *void rating pro$lems li#e halo effect! central tendency! leniency! severity etc. ?. 3onsistent Docmentations maintained 1@. +o room for discrimination $ased on cast! creed! race! religion! region etc. 4ro$lems of Rating0 1. :eniency 5 Severity 2. 3entral &endency (. Halo )rror 6. Rater )ffect <. 4rimacy 5 Recency )ffect =. 4erceptal Sets 9. 4erformance Dimensions .rder >. Spillover )ffects ?. Stats )ffect +NCENT+.ES 5ASE- COMPENSAT+ON ,ncentives are monetary $enefits paid to wor#men in recognition of their otstanding performance. &hey are defined as varia$le rewards granted according to variations in the achievement of specific reslts. *dvantages of ,ncentive $ased compensations 1. ,ncentives are important for indcement and motivation of wor#ers for higher efficiency and greater otpt. 2. )mployee earnings go p (. )nhanced standard of livings of employees 6. Redction in total nit cost of prodction! 59 <. 4rodctivity increases. =. 4rodction capacity is also li#ely to increase 9. Redced spervision Disadvantages of ,ncentive $ased compensation 1. &endency of "ality of prodcts deteriorated de to increased otpt and low cost 2. )mployees may oppose introdction of new machines (. Aor#ers demand for minimm wage limit may go p de to high incentive earnings 6. Sometimes employees may disregard secrity reglations de to payment $y reslts approach adopted for higher incentive figres <. .verwor#ing may affect employee health =. )mployee %ealosies with respect to high and low performers HUMAN RESOURCE AU-+T +atre of HR *dit HR *dit is a tool for evalating the personnel activities of an organization. &he adit may inclde one division or entire company. ,t gives feed$ac# a$ot HR fnctions to operating managers and HR specialists. ,t also shows how well managers are meeting HR dties. ,n short HR adit is an overall control chec# on HR activities in a division or a company and evalation of how these activities spport organization2s strategy. 8asis of HR *dit B4ersonnel ResearchC 1. Aage Srveys 2. Recritment Sorces effectiveness (. &raining efforts effectiveness 6. Spervisor2s effectiveness <. ,ndstrial settlements =. ;o$ *nalysis 9. ;o$ Satisfaction Srvey >. )mployee needs srvey ?. *ttitde Srveys 1@. High accident fre"ency srveys 8enefits of HR *dit 1. ,dentification of contri$tions of HR department 2. ,mprovement of professional image of HR department (. )ncoragement of greater responsi$ility and professionalism among HR mem$ers 6. 3larification of HR dties and responsi$ilities <. Stimlation of niformity of HR policies and practices =. /inding critical personnel pro$lems 9. )nsring timely compliance with legal re"irements >. Redction of HR costs throgh more effective personnel procedres 60 ?. 3reation of increased acceptance of changes in HR department 1@. * thorogh review of HR information systems Scope and &ypes of HR *dit HR *dit mst cover the activities of the department and e7tend $eyond $ecase the people pro$lems are not confined to HR department alone. 8ased on this HR adit can $e spread across following for different categories. Hman Resorce /nction *dit Managerial 3ompliance *dit Hman Resorce 3limate *dit )mployee &rnover *$senteeism *ccidents *ttitde Srveys HR 1 3orporate Strategy *dit *pproaches to HR *dit 1. 3omparative *pproach B8enchmar#ing with another companyC 2. .tside *thority *pproach B.tside consltants2 standardsC (. Statistical *pproach BStatistical measres and toolsC 6. 3ompliance *pproach B:egal and company policiesC >' Management )y O#&ecti%es Approach ?Goals < O#&ecti%es #ased@ MOT+.AT+ON THEOR+ES 4erformance is a fnction of a$ility and motivation. 4 O f B* 7 MC Definition 10 #hoices among voluntary activities * process governing choices made $y persons or lower organisms among alternative forms of volntary activity Definition 20 Arouse enthusiasm to pursue * reslt of internal and e7ternal processes to the individal that arose enthsiasm and persistence to prse a certain corse of action Definition (0 Need that activates behavior * process that starts with a physiological deficiency or need that activates $ehavior or a drive that is aimed at a goal or an incentive. Meaning of Motivation Motivation is a set of forces that case people to $ehave in certain ways. Motivation 4rocess B= StepsC 1. ,ndividal +eeds 2. Search for ways to satisfy needs (. -oal 5 .$%ectives directed 6. ,ncreased performance <. Receiving rewards or pnishment =. Reassessment of needs 3riticality of Motivation to Managers 61 ,mportance of Motivation Motivation helps employees find new ways of doing a %o$ Motivation ma#es employees "ality conscios Motivation increases prodctivity very high Motivation stimlates $oth participation and prodction at wor# Motivation comprehends %o$s related $ehaviors Motivation increases attention towards hman resorces along with physical resorces 3hallenges of Motivation Diverse and changing wor#force Rightsizing! Downsizing! Hire1n1/ire! 4ay1for14erformance strategies Motives can only $e inferred! not seen Dynamic natre of hman needs .$%ectives of Motivation High prodctivity ,ncrease "ality consciosness Stimlate participation at wor# &heories of Motivation )arly &heories Scientific Management0 Motivation $y scientific management is associated with /.A. &aylor2s techni"es of scientific management. &aylor said that people are primarily motivated $y economic rewards and will ta#e direction if offered an opportnity to improve their economic positions. 8ased on this &aylor descri$ed following argments 4hysical wor# cold $e scientifically stdied to determine optimal method of performance of a %o$ Aor#ers cold $e more efficient $y telling them how they were to do a %o$ Aor#ers wold accept the a$ove prescription if paid on differentiated piecewor# $asis Disadvantages Dehmanized wor#ers! treated them as mere factors of prodction! only stressed on monetary needs! ignored hman needs Hman Relations Model0 )lton Mayo2s hman relations model stressed on social contacts as motivational factor. -reater importance was given to informal grops. However too mch reliance on social contacts to improve prodctivity was a ma%or draw$ac#. 3ontemporary &heories 3ontent &heories BMaslow2s +eed Hierarchy! Herz$erg2s 21factors! *lderfer2s )R-! *chievement Motivation &heoryC 62 4rocess &heories BGroom2s e7pectancy! *dam2s )"ity! 4orter2s 4erformance and Satisfaction ModelC Reinforcement categories )R- &heory B*lderferC0 )7istence Relatedness -rowth )R- theory emphasizes more on three $road needs that is e7istence! relatedness and growth. ,ts hypothesis is that there may $e more than one need operating at the same time. )R- theory frther states that when a higher level need is frstrating! the individal2s desire to increase lower level needs ta#es place. &hs )R- theory contains frstration1regression dimension. /rstration at higher level need may lead to regression at lower level need. *dvantages More consistent with or #nowledge of differences among people! it is less restrictive and limiting! it is a valid version of need hierarchy. Disadvantages +o clear1ct gideline of individal $ehavior patterns! too early to pass a %dgment on the overall validity of the theory. &wo1/actor &heory BHerz$ergC /redric# Herz$erg states that the motivation concept is generally driven $y two factors of motivators of %o$ satisfactions and hygiene factors a$ot %o$ dissatisfaction. Motivators are generally achievement! recognition! the wor# itself! responsi$ility! advancement and growth! which are related to %o$ satisfaction. Hygiene factors deal with e7ternal factors li#e company policy! spervision! administration and wor#ing conditions! salary! stats! secrity and interpersonal relations. &hese factors are #nown as hygiene factors or %o$ dissatisfiers! %o$ conte7t factors. *dvantages tremendos impact on stimlating thoght on motivation at wor#! increased nderstanding of role of motivation! specific attention to improve motivational levels! %o$ design techni"e of %o$ enrichment is contri$tion of herz$erg! do$le dimensions of two factors are easy to interpret and nderstand. Disadvantages :imited $y its methodology! relia$ility "estioned! it focses more on %o$ satisfaction not on motivation! no overall measre of satisfaction tilized! inconsistent with previos research! prodctivity factor ignored. MORA/E Definition 10 ,ental condition, attitude, willingness Morale is a mental condition or attitde of individal and grops! which determines their willingness to co1operate. Definition 20 Attitudes, voluntary cooperation Morale is attitdes of individals and grops towards their wor# environment and towards volntary cooperation to the fll e7tent of their a$ility in the $est possi$le interest of the organization. Distinction $etween Morale and Motivation0 1 63 Morale Motivation 1. 3omposite of feelings! attitdes and sentiments that contri$te towards general satisfaction at wor#place. 2. * /nction of freedom or restraint towards some goal. (. ,t mo$ilizes sentiments. 6. Morale reflects Motivation. 1. Motivation moves person to action. 2. * 4rocess of stimlating individals into action to accomplish desired goals. (. * /nction of drives and needs. 6. ,t mo$ilizes energy. <. Motivation is a potential to develop morale. ,mportance of Morale as a Responsi$ility of Management .rganization 3limate0 Morale is an important part of organization climate. *ttitdes 5 Sentiments0 Morale reflects attitdes and sentiments towards organization goals and o$%ectives. 4rodctivity0 Morale highly affects prodctivity and satisfaction of individals. &otal Satisfaction0 Morale is total satisfaction derived from employees %o$! $oss and his organization. :a$or 4ro$lems Solved0 High morale assists managers to overcome several la$or pro$lems li#e la$or trnover! a$senteeism! indiscipline! grievances! disharmony etc. 3ooperation0 Morale helps to see# cooperation from the wor#ers in getting higher prodction at minimm possi$le cost $y redcing wastages of time! man! machines and materials. 4rodction 5 4rodctivity0 4rodction and prodctivity are directly affected $y high morale in a positive manner. PERSONNE/ PO/+C+ES Meaning of 4ersonnel 4olicy * 4olicy is a 4lan of *ction. ,t is a statement of intentions committing the management to a general corse of action. * 4olicy may contain philosophy and principles as well. However a policy statement is more specific and commits the management to a definite corse of action. Hence 4ersonnel policy is a plan of action to $e implemented $y HR department towards the organization and employees. * personnel policy spells ot $asic needs of the employees. &hrogh personnel policy the personnel department ensre a consistent treatment to all personnel $y minimizing favoritism and discrimination. 4ersonnel policy serves as a standard of performance for all employees. Sond personnel policies help $ild employee motivation and loyalty. *nd this happens when personnel policies reflect fair play and %stice and help people grow within the organization. 4ersonnel policies are also plans 64 of action to resolve intra1personal! inter1personal and inter1grop conflicts. ,mportance of 4ersonnel 4olicy 4ersonnel policy is very important for an organization since it gives several $enefits for managing yor hman resorces effectively. ,n the light of these $enefits listed $elow we wold $e a$le to nderstand the relative importance of 4ersonnel policy. 8asic +eeds0 4ersonnel policy helps the management to thin# deeply a$ot $asic needs of organization and the employees. 3onsistent &reatment0 4ersonnel policies ensre consistent treatment of all personnel throghot the organization. Minimize /avoritism0 4ersonnel policies help minimize favoritism and discrimination 3ontinos action0 4ersonnel policies ensre continos action even if top management is changed. &hese policies promote sta$ility. Standard of 4erformance0 4ersonnel policies serve as a standard of performance. Motivation 5 :oyalty0 4ersonnel policies help $ild employee motivation and loyalty. /air 4lay 5 ;stice0 4ersonnel policies reflect esta$lished principles of fair play and %stice. -rowth0 4ersonnel policies help people grow within the organization. 1OR9ERS( PART+C+PAT+ON +N MANAGEMENT 8roadly! wor#er2s participation in management means associating representatives of wor#ers at every stage of decision1ma#ing. 4articipative management is considered as a process $y which the wor#er2s share in decision1ma#ing e7tends $eyond the decisions that are implicit in the specific content of the %o$s they do. &his amonts to the wor#ers having a share in the reaching of final managerial decisions in an enterprise. Definition 10 Association of 5or-ers in decision)ma-ing process Aor#ers2 participation may $e ta#en to cover all terms of association of wor#ers and their representatives with the decision1ma#ing process! ranging from e7change of information! consltations! decisions and negotiations to more instittionalized forms sch as the presence of the wor#ers2 mem$ers on management or spervisory $oards or even management $y wor#ers themselves. Scope of wor#ers2 participation Scope of wor#ers participation ranges over three managerial decision1 ma#ing stages. Social Decisions0 Hors of wor#! welfare measres! wor# rles! safety! health! sanitation and noise control. 65 4ersonnel Decisions0 Recritment and selection! promotions and transfers! grievance settlements! wor# distri$tion )conomic Decisions0 Methods of manfactring! atomation! lay offs! sht1downs! mergers and ac"isitions and other financial aspects. Methods of Aor#ers2 4articipation in Management 1. 8oard :evel 2. .wnership (. 3omplete 3ontrol 6. Staff 3oncils <. ;oint 3oncils =. 3ollective 8argaining 9. ;o$ )nlargement and )nrichment >. Sggestion Schemes ?. Kality 3ircles 1@. )mpowered &eams 11. &otal Kality Management 12. /inancial 4articipation 4rere"isites of Sccessfl 4articipation 1. 3learly defined and complementary .$%ectives 2. /ree flow of information and commnication (. Representatives of wor#ers from wor#ers themselves 6. .tside trade nion participation shold $e avoided <. Aor#ers2 edcation and training =. +o threat $y participation 9. *ssociation at all levels of decision1ma#ing 8enefits of 4articipation 1. -ives identity to an employee 2. Motivates employee (. Self1esteem! %o$ satisfaction and cooperation improves 6. Redced conflicts and stress <. More commitment to goals =. :ess resistance to change 9. :ess la$or pro$lems >. 8etter "ality sggestions e7pected UN+ONS )mployee associations are poplarly #nown as nions. However these nions are not confined to only stri#es and negotiations. &heir role is mch wider than this. Dnions ma#e their presence felt in recritment and selection! promotions! training! termination or lay off. Many programs! which contri$te to the Kality of Aor# :ife BKA:C and prodctivity! are nderta#en $y management in consltation with and with the cooperation of the nions. Dnions also participate in deciding wage and salary strctre and negotiate revisions once in ( or < years. 66 &rade nions are volntary organizations of wor#ers or employers formed to promote their interests throgh collective action. &rade nions *ct 1?2= defines a trade nion as a com$ination! whether temporary or permanent formed primarily for the prpose of reglating the relation $etween 1C Aor#men and )mployers 2C Aor#men and Aor#men (C )mployers and )mployers /or imposing restrictive conditions on the condct of any trade or $siness and incldes any federation of two or more trade nions Ahy do employees %oin &rade DnionsF &o protect themselves against e7ploitation $y management 8y force Dissatisfaction :ac# of 4ower Dnion ,nstrmentality R.:) ./ 3.+S&RD3&,G) *+D 4.S,&,G) D+,.+ Dnions have a crcial role to play in ,ndstrial Relations. Dnions have following $road role or o$%ectives as mentioned $elow. &o redress the $argaining advantage of the individal wor#er vis1 R1vis the individal employer! $y s$stitting %oint or collective action for individal action. &o secre improved terms and conditions of employment for its mem$ers and the ma7imm degree of secrity to en%oy these terms and conditions. &o o$tain improved stats for the wor#er in his wor# or her wor# &o increase the e7tent to which nions can e7ercise democratic control over decisions! which affect their interests $y power sharing at the national! corporate and plant levels. &he nion power is e7erted primarily at two levels. ,ndstry level to esta$lish %oint reglation on $asic wages and hors with an employer2s association. 4lant level! where the shop stewards organizations e7ercise %oint control over some aspects of the organization of wor# and localized terms and conditions of employment. Dnions are party to national! local and plant level agreements! which govern their actions to a greater or lesser e7tent! depending on their power and on local circmstances. D+/*,R :*8.R 4R*3&,3)S ,ndstrial Disptes *ct 1?69 specifies the following as nfair la$or practices &o interfere! restrain! coerce wor#men in the e7ercise of their right to organize! form! %oin or assist a trade nion. &hreatening wor#men with discharge or dismissal 67 &hreatening of loc#ot or closre -ranting wage increases to ndermine trade nion efforts &o dominate! interfere with or spport financially or socially $y ta#ing active interest in forming own trade nion! and Showing partiality or granting favor to one of several trade nions to a non1recognized trade nion &o esta$lish employer sponsored trade nions &o encorage or discorage mem$erships in any trade nion $y discriminating wor#man $y pnishing or discharging! changing seniority ratings! refse promotions! giving nmerited promotions! discharging nion office $earers &o discharge or dismiss wor#men $y victimizing! not in good faith! implicating in criminal case! for patently false reasons &o a$olish wor# of a reglar natre &o transfer wor#men &o show favoritism or partiality &o replace wor#ers &o recrit wor#men dring legal stri#es &o indlge in acts of violence or force &o refse collective $argaining 0roposing and contin"ing loc5o"ts ORGAN+<AT+ONA/ -O1NS+<+NG Downsizing necessarily means redcing wor# force to an optimal level depending pon the $siness conditions and organizational needs. ,t is said that an organization shold $e rightly staffed ie. ,t shold not $e overstaffed and or nderstaffed. &here are $roadly following method sed to downsize the wor#force as mentioned $elow. Retrenchment0 ,t means termination of service. ,t is a termination for reasons other than disciplinary actions! retirement or sperannating! e7piry and termination of contract or prolonged illness. Retrenchment compensation and notice for retrenchment are only pre1conditions for retrenchment and not a right! which a retrenched wor#er can claim. ,f notice and compensation are not given! the wor#er will not $e called as retrenched. 3ompensation is paya$le for 1< days wages for every completed year of service $esides one month2s notice or pay in lie of notice. 8t employee shold have completed at least one year of complete service in order to receive compensation. :ay .ffs :ay of is ina$ility of the employer to provide employment to wor#ers de to circmstances $eyond his control sch as shortage of power! coal! $rea#down of machinery! natral calamity etc. ,t is not a termination of service. :ay off compensation can $e claimed as a 68 stattory right $y the wor#er if he has completed one year of continos service or has wor#ed for 26@ days on the srface or 1?@ days ndergrond in 12 calendar months. 3ompensation paya$le is half of the wages. Golntary Retirement Schemes GRS are annonced when there is a hge pool of old aged manpower occpying senior positions amonting to srpls. Many organizations are providing li$eral incentives to leave $efore age of sperannating. GRS in other words is a retirement $efore the age of retirement. MEAN+NG O4 ORGAN+<AT+ON STRUCTUREOr#ani)ational str'ct're is t"e %ormal &ecision,ma3in# %rame2or3 b! 2"ic" job tas3s are &ivi&e&$ #ro'e&$ an& coor&inate&* 4ormali)ation is an imortant asect o% str'ct're* +t is t"e e0tent to 2"ic" t"e 'nits o% t"e or#ani)ation are e0licitl! &e%ine& an& its olicies$ roce&'res$ an& #oals are clearl! state&* +t is t"e o%%icial or#ani)ational str'ct're conceive& an& b'ilt b! to mana#ement* T"e %ormal or#ani)ation can be seen an& reresente& in c"art %orm* An or#ani)ation c"art &isla!s t"e or#ani)ational str'ct're an& s"o2s job titles$ lines o% a't"orit!$ an& relations"is bet2een &eartments* .rganisation 3harts0 &he organization charts are the sample and an nderstanda$le way showing the formal organization strctre1,t gives a clear overview of the shape and strctre of an organization. ,t is an order and the design of an organization captred in a visal form. ,t is a $le print or a $asis for proper conceptalization! frther thin#ing! a discssion $oard for frther modifications withot affecting the actal changes. &he organization chart well drawn! can give an insight in to the organization! its hierarchical strctre line and staff athority! athority and responsi$ility levels! chain of command! line of delegated athority! decentralization or otherwise in an organization! span of control etc. ,t also helps and gides the management in evolving changes with the changes in the environment and for faster realization of goals. +t is a #oo& #'i&e %or t"e ne2 recr'its in t"eir initiation in t"e or#ani)ation an& in 'n&erstan&in# t"e a't"orit! resonsibilit! levels incl'&in# "is o2n* /ormal .rganisation T"e intentional str'ct're o% roles in a %ormall! or#anise& enterrise is a %ormal or#anisation +t sho"ld ha%e an attri#"te of Ae8i#ility3 room for discretion and the recognition of indi%id"al talents and the capacities' +n a gro"p f"nctioning the indi%id"al e4ort 9ill ha%e to #e chaneli$e thro"gh the gro"p leader and has to #e for the organi$ation7s good' +nformal Str"ct"re The informal organi$ation is the net9or53 "nrelated to the :rmBs formal a"thority str"ct"re3 of social interactions among its employees' +t is 69 the personal and social relationships that arise spontaneo"sly as people associate 9ith one another in the 9or5 en%ironment' The s"per%isor m"st reali$e that the informal organi$ation a4ects the formal organi$ation' The informal organi$ation can press"re gro"p mem#ers to conform to the e8pectations of the informal gro"p that conAict 9ith those of the formal organi$ation' This can res"lt in the generation of false information or r"mors and resistance to change desired #y management' The s"per%isor sho"ld recogni$e the e8istence of information gro"ps3 identify the roles mem#er play 9ithin these gro"ps3 and "se 5no9ledge of the gro"ps to 9or5 e4ecti%ely 9ith them' The informal organi$ation can ma5e the formal organi$ation more e4ecti%e #y pro%iding s"pport to management3 sta#ility to the en%ironment3 and "sef"l comm"nication channels' Matri7 Strctre,n a matri7 organization! teams are formed and team mem$ers report to two or more managers. Matri7 strctres tilize fnctional and divisional chains of command simltaneosly in the same part of the organization! commonly for one1of1a1#ind pro%ects. ,t is sed to develop a new prodct! to ensre the contining sccess of a prodct to which several departments directly contri$te! and to solve a difficlt pro$lem. 8y sperimposing a pro%ect strctre pon the fnctional strctre! a matri7 organization is formed that allows the organization to ta#e advantage of new opportnities. &his strctre assigns specialists from different fnctional departments to wor# on one or more pro%ects $eing led $y pro%ect managers. &he matri7 concept facilitates wor#ing on concrrent pro%ects $y creating a dal chain of command! the pro%ect Bprogram! systems! or prodctC manager and the fnctional manager. 4ro%ect managers have athority over activities geared toward achieving organizational goals while fnctional managers have athority over promotion decisions and performance reviews. *n e7ample is an aerospace firm with a contract from +*S*. ;i%isional Str"ct"re +n a di%isional organi$ation3 corporate di%isions operate as relati%ely a"tonomo"s #"sinesses "nder the larger corporate "m#rella' +n a conglomerate organi$ation3 di%isions may #e "nrelated' ;i%isional str"ct"res are made "p of self/contained strategic #"siness "nits that each prod"ces a single prod"ct' -or e8ample3 -eneral MotorsB di%isions incl"de 3hevrolet3 .ldsmo$ile3 4ontiac3 and 3adillac' A central head!"arters3 foc"sing or res"lts3 coordinates and controls the acti%ities3 and pro%ides s"pport ser%ices #et9een di%isions' -"nctional departments accomplish di%ision goals' A 9ea5ness ho9e%er3 is the tendency to d"plicate acti%ities among di%isions' .rganic Strctre.n the other hand! the organic strctre is more fle7i$le! more adapta$le to a participative form of management! and less concerned with a clearly defined strctre. &he organic organization is open to the 70 environment in order to capitalize pon new opportnities. .rganic organizations have a flat strctre with only one or two levels of management. /lat organizations emphasize a decentralized approach to management that encorage high employee involvement in decisions. &he prpose of this strctre is to create independent small $sinesses or enterprises that can rapidly respond to cstomersH needs or changes in the $siness environment. &he spervisor tends to have a more personal relationship with his or her employees. /nctional Strctre/nctions or divisions arrange traditional organizations. ,n a fnctional organization! athority is determined $y the relationships $etween grop fnctions and activities. /nctional strctres grop similar or related occpational specialties or processes together nder the familiar headings of finance! manfactring! mar#eting! acconts receiva$le! research! srgery! and photo finishing. )conomy is achieved throgh specialization. However! the organization ris#s losing sight of its overall interests as different departments prse their own goals. 71