Professional Documents
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Concept of HRM
The phrase Human Resource Management is the composite of two words: Human
Resource and Management. Human resource is the people, working in an organization, with
required energy and skills. Management is concerned with ensuring optimum utilization of
available resources. Thus HRM is concerned with optimum utilization of peoples energy and
skills for the purpose of attaining organizational goals. According to DeCenzo and Robbins,
HRM is a process consisting of four functions acquisition, development, motivation and
maintenance of human resources. In less academic terms, we might describe these four
functions as getting people, preparing them for the required jobs, activating them and
keeping them in an organization to
accomplish the organizational goal in desired way and level. In a nutshell, HRM is concerned
with effective and efficient utilization of human knowledge, skills & energy by integrating
with other resources to accomplish the organizational goal in desired way and level. It is the
process essentially concerned with mobilization of mployees from pre-R (recruitment) to
post-R (retirement) in such a way that organizational growth is always ensured in dynamic
environment.
Characteristics of HRM
1. HRM is related to the people dimension.
2. It is dynamic and continuous process.
3. It is pervasive in nature.
4. It is a system consisting of input-process-output.
5. It is an open system and, thus, it is responsive to environment.
6. It is an integral function of management.
Objectives of HRM
The main objectives of HRM include:
1. To attract, acquire, develop, utilize and retain qualified people in the organization
2. To achieve high productivity
3. To enhance the quality of work life
4. To promote workers morale, motivation and commitments
5. To maintain coordination and harmony among all people working in the organization
6. To develop team spirit and promote the environment of supportive culture
HRM Outcomes
# Org. Productivity
# Readiness for
change
The scope of HRM is very vast. It # Labor relations deals with all aspects of
managing people. The scope of HRM in system framework
# Commitment
includes HRM environment, HRM practices and HRM
outcomes.
Internal Environment.
# Business Strategy
# HR Strategy
# Org. Structure
HRM Pro./Fun./
# Org. Culture
# Comp./Practices
# Trade Unions
#Acquisition
#Development
#Utilization
#Maintenance
A. Acquisition
ii. Job analysis : It determines the tasks involved in the job and the qualification and skills
needed to accomplish the job.
iv. Selection : It is the process of choosing qualified and competent people from among
the applicants.
It generally involves scrutinization of bio-data and/or application forms, written test, group
v. Socialization : It is the process of making new employees familiar with the organization;
its culture and
providing complete description of his/her job, rules, policies, procedures, authority and
responsibilities. He/she is also informed or made familiar with his/her subordinates and
superiors.
B. Development
It involves the analysis of current and future need of people skills and competences for the
organization.
C. Utilization
D. Maintenance
ii. Employee Discipline and Grievance Handling : Employee discipline looks after and
confirms the obedience of rules and regulations by the employees of an organization where
as grievance handling is concerned with
iii. Employee Welfare : It consists of various activities that protect and promote employee
welfare, such as safely, health, recreation facilities etc.
2. HRM Environment
HRM environment refers to the set of factors that influence the HRM functions or practices
of an organization. There are basically two types of HRM environment. They are:
A. Internal Environment
B. External Environment
A. Internal Environment
i. Business Strategy : A business strategy refers to the competitive efforts and business
approaches that managers employ to please customers, compete successfully, and achieve
organizational objectives. Some typical business strategies include innovation strategy,
quality strategy, cost reduction strategy etc. Different strategy has different implications
on HRM practices. For instance, innovation strategy requires investing more on R&D and
creative and talented people.
ii. HR Strategy : Influenced by the external environmental forces and the business
strategy itself, HR strategy includes the components such as organizations HR mission,
objectives and policies. Obviously, HR mission, objectives and policies have direct impact
over HR practices.
iii. Organization Structure : Organization structure determines not only the authority-
responsibility relationship but also the number of people required, their skills and
competencies. The number of people required, their reporting relationship, skills and
competences ultimately influence HR practices such as recruitment, selection, training and
development etc.
iv. Organizational Culture : Every organization has its own culture, i.e., shared belief and
common way of doing things. Different cultures have different implications to HR practices.
v. Trade Union : Trade unions are voluntary organizations of generally the workers formed
to promote and protect their interests through collective actions. Trade unions also
influence different HRM practices such as administration of rules, wages and security
system etc.
B. External Environment
iii. Socio-cultural Environment : It comprises the social norms, values, beliefs, attitude
towards work hours & work shift, education status etc. All these have significant impact
over HR practices such as selection and rewards.
i. Quality of work life (QWL) : QWL is the creation of environment where an employee can
feel that his job is secured, he is satisfied with jobs done, he will develop knowledge, skills
and he is capable of meeting at least the basic financial obligation through working. But
QWL cannot be achieved by chance, in fact this is the result of employee friendly &
rewarding policies and procedures, such as autonomy in work, recognition of the job done,
reward systems etc.
ii. Productivity : Productivity refers to the qualitative and quantitative output derived by
performing an action or process. One of the basic outcomes of HRM is always higher
productivity. There are evidences that the selection and execution of proper HR policies and
practices could lead to higher productivity.
iii. Readiness for change : One of the outcomes of HRM is to make employees ready to
face any sorts of current or future organizational change. It is because of change in
technology, change in working methods, change in competition, change in organizational
policies and practices. So everyone in the organization should be ready or prepared to cope
with such environmental changes.
iv. Labor Relations : Another important outcome of HRM is to achieve better labor
relations. It is concerned with developing healthy tripartite relations (i.e., between
employees, employers and the society represented by the government). Appropriate HRM
practices always lead to minimum industrial conflicts and disruptions. Likewise, the HRM
process or practices would produce either fully committed or less committed employees.
Fully committed workforce is, in fact, instrumental in achieving higher productivity, low
absenteeism, few employee turnover etc.
HRP is the process of forecasting the future human resource needs and choosing the
courses of actions to satisfy those needs. It involves estimating the size and composition of
future workforce to ensure survival and organizational growth.It is, in fact, a part of the total
organizational lanning. It is a continuous process rather than a single shot attain. It tries to
keep the organization supplied with required and capable people when they are demanded.
Characteristic of HRP
Goal oriented
Objectives of HRP
To provide control measures to ensure that necessary human resources are available as
when required.
HR planning is very important to any type of organization since Human resources are those
resources who monitor the other resources. HR planning also determines the success of the
organization.
1) Helps to implement the business strategy: Without proper planning of human resources
business strategies cannot be implemented. They are the people who have to work to
implement the strategies of an organization.
2) Minimizes future risk and uncertainty : By forecasting the demand and supply of
technical and other manpower for the future, human resources planning minimize future
risk and uncertainty.
3) Helps to cope with changing situation : HRP enables an enterprise to cope with
changes in competitive forces, markets, technology, products, and government regulations.
It is important to cope with change associated with the external environment factors. It
helps to assess the current human resources through HR inventory and adapts it to
changing, socio cultural and economic forces.
5 Personnel costs may be less : Personnel costs may be less because the management
can anticipate imbalances before they become unmanageable and expensive.
6) It ensures the Development of HR : HRP planning identifies the skills requirement for
various levels of jobs. Then it organizes various training and development campaigns to
impart the required skill and ability in employees to perform the task efficiently and
effectively.
Step I: Environmental Analysis : Before planning about future human resources, the
foremost step is to make analysis of environmental forces and possible impact on
organizational activities. Only after an analysis of internal & external environment, it is
possible for HR managers to find out the internal strength and weaknesses as well as
external opportunity & threats of an organization that have direct influence on performance.
Step II: Assessing Current Human Resources : With the help of line managers, HR
managers begin to prepare HRP by developing a profile of the current status of employees
working in organization. More specifically this phase includes the following steps.
Step III: Forecasting Human Resources Demand : Organizational objectives and the
activities involved to meet those objectives are the basis for estimating future human
resources needs. Once the activities are determined, forecasting of human resources is
done. Usually organization may adopt following two methods for this purpose.
Step IV: Forecasting Human Resources Supply : Forecasting human resource demand
worth only when if it is systematically located the sources from where the perspective
candidates can be achieved. Therefore estimation of supply of human resources on the
basis of demand forecasting is another important function. The projection of human
resource supply can be based on following sources:
Step V: Preparing Action Plan : After forecasting human resource demand and supply, a
proper matching between demand and supply forecasting is desirable. The shortage and
surplus of forecasting employees is to be treated accordingly. If there is surplus, HRD
should focus on only needy manpower whereas if the case is shortage of manpower,
reassessment of existing resource and their potential, and even re-forecasting of HR supply
by identifying new sources is desirable. After this, action plan is prepared.
This is the phase of implementation where usually following plans are developed.
Since HRP is a continuous process, it also involves evaluation and feedback. If any changes
occur
in the internal as well as external factors or the process did not produce desired results,
then
The HRP process is influenced by several considerations. The more important of them are
shown in the figure below:
needs and systematically plan them to feel them far in advance, or it can simply react to
needs as they arise.
Another major factor affecting HRP is time horizon. On one hand, there are short term plans
spanning six months to one year. On the other hand, there are long term plans which
spread overthree to twenty years. The exact time span, however, depends on the degree of
uncertainty prevailing in an organizations environment. The greater the uncertainty, the
shorter the plans time horizon and vice versa.
The information used to forecast HR needs originates from a multitude of sources. A major
issue in HR planning is the type of information which should be used in making forecasts.
Closely related to the type of information is the quality of data used. The HR departments
must maintain well- developed job- analysis information and HR information system (HRIS)
that provide accurate and timely data.
VI) Nature of the jobs being filled : For HR planners must consider the nature of
jobs being filled in the organization. Job vacancies arise because of separations,
promotions and expansion strategies. It is easy to employ shop- floor workers, but a lot of
sourcing is necessary for hiring managerial personnel. It is, therefore, necessary for the HR
department to anticipate vacancies, as far in advance as possible, to provide sufficient
lead time to ensure that suitable candidates are recruited.
VII) Outsourcing
Several organizations outsource part of their work to outside parties either in the form of
sub- contracting or ancillarisation. Outsourcing is a regular feature both in the public sectors
as well as in private sectors. Most organizations have surplus labor and they do not want to
worsen the problem by hiring more people. Hence, the need for off-loading. However, these
all factors have to be properly considered while formulating the Human Resources planning
in the organization.
1. Conflicts between short-term and long-term HR needs There can be conflict between
short-term and long-term HR needs. While fulfilling the short-term needs it may be possible
that long-term needs can be ignored which will create lots of conflict. For example, there
arises a conflict between the pressure to get the work done on time and long-term needs,
such as preparing people for assuming greater responsibilities.
Nepal has a poor tradition of human resource planning. The education system is not friendly
to need the needs of the labour market. The country lacks comprehensive human
resources surveys. Nepalese managers regard human resource planning as an area of low
priority. Nepalese organizations lack right number and kinds of people at the right places
and at right time. Most organizations lack human resources planning. HRP is not linked
with overall corporate plan.
Most Nepalese organization lack up-to-date human resource inventory which describes the
skills currently available. They also lack effective Human Resource Information System.
Effective job analysis is lacking in Nepalese organization to lay down proper job
descriptions and pecifications. This has constrained proper assessment of current human
resources.
Nepalese organizations lack proper demand forecasting in term of number and skills of
people required. Business organizations lack reliable revenue forecasts which serve as the
basis for the forecast of human resource demand.
Nepalese organizations lack proper supply forecasts of human resources from inside and
outside sources. Promotion and transfer are not planned in advance. Supply outstrips
demand for human resources in Nepal. Nepalese labour market is supply-driven. Even the
professionals and skilled technicians are suffering from unemployment.
Nepalese organizations do not give proper attention to matching Demand and Supply
forecasts to determine future shortages and surplus. Succession planning is not done by
Nepalese managers. They seem to be afraid of this concept. They fear that the persons
being developed for succession may oust them from their jobs.
Human Resources Planning in Nepal has generally a one year horizon. Strategic human
resource planning is lacking. Human resources planning are not regarded as a overall
strategic planning.
Most government agencies and public enterprises in Nepal suffer from overstaffing. The
number one priority of Nepalese politicians is to provide employment to their political
worker. Human Resource Planning is utterly neglected by Politically appointed managers
of public enterprises. Overstaffing has made human resource planning irrelevant in
government and public enterprises. Such organization can function effectively by cutting
half of their employee strength.
The family owned and managed private sector organizations do not bother about human
resource planning. They prefer to hire their relatives, friends and near and dear. Even the
big houses in the private sector lack proper human resource planning.
9. Future Perspective :
The global organizations in banking, hospitality and manufacturing sectors in Nepal prepare
systematic human resource plan. They also implement them. This will definitely have a
positive impact for human resource planning in Nepalese organizations in coming years.
Therefore, the human resource planning function in Nepalese organizations needs
strengthening.
The study about job (on the basis of its type, nature & purpose) and determining the skills
required to perform this job is Job Analysis. DeCenzo and Robbins have defined job analysis
as: Job analysis provides information about jobs currently being done & the knowledge,
skills & abilities that individuals need to perform the job adequately. It helps to develop job
description, job specification & to conduct job evaluation. Likewise, according to Gary
Dessler, Job analysis is the procedure for determining the duties and skills requirements of
a job and the kind of person who should be hired for it.
1. Job Description (states job title, duties, authority, responsibility, and job relationships)
2. Job Specification (identifies knowledge, skills and abilities needed to do the job)
3. Job performance standards (sets standards of jobs in terms of quantity and quality)
4. Job evaluation (states the relative value of job, i.e., rates the jobs not the employees)
Job analysis thus concerned with the analysis of job characteristics and employees
competencies in order to insure the perfect fit between the people and job.
1. Collection of information
It is the first step of job analysis under which required information related to various aspects
of the job are collected. Information is obtained through different methods such as
interview, observation, questionnaire, technical conference and diary. Moreover, it is
associated with the preparation of plans and programs and assignment of responsibilities
to the concerned person.
Job analysis is a process under which the previously collected information is reviewed to
design organizational chart, current position description and specification, procedures,
manual and process chart. This help in detail assessment of a job.
Analyzing all jobs at a time is complex and costly affair. Hence a sample of job is selected
for the purpose of detail analysis. Under it the job analyst investigates to determine which
organization managers or employees require job analysis. Also the purpose of job analysis
must be etermined.
Under this step a job analyst obtains the data and information related to the selected job
which is done previously. The information is collected on the job activities, required
employee behaviors, working conditions, human traits and qualities, abilities of performing
the job and other various dimension of the job.
Under this, a job description schedule is developed through the information collected from
above steps. It is a written statement or document that identifies, describes and defines a
jobs duties and responsibilities, working conditions, location and degree of risk involved in
each job. In other words, it is an overall summary of task requirement which explains the
constitute element of job in an organized way.
A job specification is statement which spells out the minimum level of qualifications, skills,
physical and other abilities, experience, judgment and attributes required to perform the
job effectively and efficiently. It is prepared along with the job description statement and
specifies the physical, psychological, personal, social and behavioral characteristics of each
job-holder. The job specification is an important tool in selection process of job analysis
and knowledge of performing task.
There are a number of job analysis methods. Of which, managers generally use a
combination of two or more methods. Some of the important methods include:
1. Observation Method
2. Interview Method
4. Diary Method
1. Observation Method
Under this method, job analyst directly observes the jobs being done to get the first hand
information. Analyst receives the information about the activities, equipment, materials,
working conditions etc. from his/her observation. This may be supplemented by the review
of film of workers on the job. Generally, Time study, motion study and fatigue study is done
while observing the workers. Time study determines the time required to perform the job
efficiently, motion study determines the ideal speed and fatigue study determines the need
of introducing rest periods during the performance of jobs. These all are helpful particularly
in determining job specification and job performance standards.
Advantages:
Disadvantages:
2. Interview Method
Under this method, job analyst interviews (face-to-face) job holders as well as their
supervisors to collect different job related information. This method is useful when
combined with observation method. It is better to use a standard format while interviewing
the workers so that there is no chance of leaving important information for the analysis of
the job. Although the process is slow and expensive, it allows the interviewer to explain
unclear questions and further inquiry into unclear answers. This method is also effective
for assessing what a job further requires.
3. Questionnaire Method
This is one of the widely used methods of job analysis. Under this method, structured
questionnaires are developed, distributed to the job holders and different information are
collected from them. The questionnaire uncovers the duties, responsibilities, abilities and
performance standards of the job investigated. It is easy and quick method. But,
responses bias/error and incomplete responses are its major drawbacks.
4. Checklist Method
A checklist is similar to a questionnaire, but the response sheet contains fewer subjective
judgments and tends to be either yes or no variety. Checklist can cover as many as 100
activities and job holders tick only those tasks that are included in their jobs. It is a
challenging job to prepare a checklist as information is obtained by asking supervisors,
industrial engineers, and other familiar with the work. Its main advantage is that it is used
in large organizations that have a large number of people assigned to one particular job.
5. Diary Method
Under this method, employees record their daily activities in a diary, which can later be
used for analyzing the job. This method is very easy to adopt and economical, but not
widely used. Employees may regard it as a burden and may not comply with it in the long
run.
This method uses the view and opinions of technicians and experts in the field to analyze
the job. Under this method, analysts or experts sit together and share opinions on each and
every aspect of the job to be analyzed. The major drawback of this method is that
sometimes employees opinions are overlooked.
Job design involves the determination of content of job and the method of doing the job.
Thus, It is the process of determining specific tasks to be included in a job and the methods
of performing those tasks. According to Mathis and Jackson, Job design refers to
organizing tasks, duties and responsibilities into a productive unit of work. According to
Hackman: Any activity that involves the alteration of specific jobs with the intent of
increasing both the quality of the employee work experience & their on the job
productivity. The key to successful job design lies in balancing the needs of organization
and the employees. In designing the jobs, generally, only a few and similar jobs are
assigned to a position/ job holder in order to ensure specialization and speedy performance
of job. However, extreme specialization also leads to problems like boredom, monotony,
frustration etc. Thus, there should be appropriate balance between specialization and
variety of job in job design. In recent years, management attention has also been directed
to alternative way of designing jobs that focuses on teamwork rather than individual
works.
Feedba
ck
Organizatio Job
nal Factor Design
Behaviour
al Factor
Environme
ntal Factor
Productive & Satisfying Jobs
Organizational Factors
Organizational factors include characteristics of task, work flow, ergonomics, and work
practices. Characteristics of task: An individual may carry out one main task which consists
of a number of interrelated elements or function. Task functions may be split between a
team working closely together or strung also an assembly. Where there are more complex
jobs, individuals may carry out a variety of connected tasks, each with a number of
functions, or these tasks may be allocated to a group of workers or may be divided between
them.
Work Flow: The flow of work in an organization is strongly influenced by the nature of the
product or service. These can be specially seen in seasonal business, where work flow is
high.
Ergonomics: Ergonomics is concerned with designing and shaping jobs to fit the physical
abilities and characteristics of individuals so that they can perform their jobs effectively.
Ergonomics helps employers to design jobs in such a way that workers physical abilities
and job demands are balanced.
Work practices: Work practices are set ways of performing work. These are raised from
traditional or the collective wishes of employees. Job design is also influenced by what has
been in the practice since years ago. This has been emerged as a new technique.
Environmental Factors
Environmental elements affect all activities of HRM, and job design is no exception. The
external
factors that have a bearing on job design are employee abilities and availability, and social
and
cultural expectations.
Employee Ability and Availability: Efficiency consideration must be balanced against the
abilities and availability of the people who are to do the work. So the jobs must be designed
in such a way that requires little training. Social and Cultural Expectation: In early years,
getting a job was the primary consideration. The worker was prepared to work on any job
and under any working conditions. Not anymore, because just getting the job is not enough,
it has to meet the social and cultural expectation. Hence the job must be designed
accordingly.
Behavioral Factors
Behavioral factors mainly deals with human needs and the necessity to satisfy them.
Individuals inspired by higher level needs find jobs challenging and satisfying which are high
on the following dimensions:
Feedback: An individual wants and must receive meaningful feedback about their
performance, preferably by evaluating their own performance and defining the feedback.
Autonomy: Autonomy is being responsible to what one does. Jobs that give workers
authority to make decisions will provide added responsibilities, which tend to increase the
employees sense of recognition and self-esteem.
Use of Abilities: The job must be perceived by individuals as requiring them to use
abilities the value in order to perform the job effectively.
Variety: Lack of variety may cause boredom. Boredom, in turn, leads to fatigue and
fatigue causes mistakes. Hence there must be variation on the jobs they perform.
There are mainly six techniques of properly designing the job, which are as follows:
1. Work Simplification
In this technique, the job is simplified or specialized. A given job is broken down into small
sub- parts. Work simplification is adopted when job designers feel that jobs are not
specializing enough. This technique can be defective when jobs are overspecialized results
in boredom which can lead to errors and resignation. To be more specific, work
simplification involves:
2. Job Rotation
It refers to the movement of employees from job to job. The objective is to expose the
employees to different experiences and wider variety of skills to enhance job satisfaction. It
increase intrinsic reward potential of a job because of different skills and abilities needed to
perform it .Job otation may not have much impact on employees enthusiasm and
efficiency.
3. Job Enlargement :
Job enlargement involves expanding the number of tasks or duties assigned to a given job.
It is horizontal restructuring method in that the job is enlarged by adding related tasks. It
has motivational impact to employees. It is naturally opposite to work simplification.
4. Job Enrichment:
It is a variation on job enlargement concept. Job enrichment adds new sources of job
satisfaction by increasing the level of responsibility of the employee. It is a vertical
restructuring method in that it gives the employees additional authority, autonomy, and
control over the way the job is accomplished. It improves task efficiency and human
satisfaction by providing challenging and responsible work. People may not like to accept
new responsibilities.
A self-directed team is an intact group of employees who are responsible for a whole work
process that delivers a product or service to an internal or external customer. Work- team
implementation is difficult without the active involvement of managers and supervisors.
The team members work together to improve their operations, handle day to day problems
a. Training
b. Management Development
Improves competencies
Fosters teamwork and better work culture
Provides career development opportunities
Increases morale, motivation and job satisfaction
Ensures employees' commitment on the job
Improves decision making ability and organizational effectiveness
Helps Manage change and conflicts
Helps in attracting and retaining talented people in the organization.
The training and development program generally involves the following steps.
iii. Select appropriate program/method : After this, the appropriate method to meet
the stated objectives should be selected. At the same time, the trainers, trainees, contents,
level, duration, venue etc. should also be decided. Besides, availability of resources should
also be considered. The method may be anyone under on-the-job or off-the-job.
iv. Implement the program : This is the stage of putting training/development program
into operation. In this stage, employees or managers attend the actual program and learn
new knowledge and skills.
v. Evaluate the program: This is the final stage in training and development program.
Under this, the effectiveness of
the program is evaluated. The evaluation may be based on reaction criteria or learning
criteria or behavior criteria or the performance criteria. The specific method to evaluate the
program may be one or more of the following:
Test-Retest Method
Pre-Post Performance Method
Experimental-Control Group Method
Trainee/Participant Survey Method
Cost Effective Analysis
Training Methods
A. On-the-job Training (OJT) Methods : This training method takes place on the job and
involves learning by doing under the supervision of an experienced employee or a
manager. Widely used methods under OJT are:
i. Apprenticeship Training
ii. Internship Training
iii. Job Instruction Training (JIT)
i. Apprenticeship Training : Training program in which trainee is put under the guidance
of a master worker (i.e., already skilled) in the job is known as apprenticeship training.
Examples of apprenticeship training include training for plumbers, electricians, accountants
etc. The duration for is generally 2 to 5 years. During the training period, the trainee is
paid less than a fully qualified worker.
ii. Internship Training : It is provided to the students of applied courses (e.g., technical
and management). It blends theory with practice.
iii. Job Instruction Training: It is a systematic step-by-step approach to teach new skills.
JIT consists of four basic steps:
1. Preparing the trainees by telling them about the job and making familiar with tools,
equipment and materials Motivation
4. Placing the workers into the job, on their own, with the resource person for providing
needed assistance -- Application
Advantages of OJT
Disadvantages of OJT
B. Off-the-job Training
Under this, training takes place outside the job situation. Trainees are removed from the
stresses and the demands of the workplace. Some of the widely used methods under off-
the-job training are:
ii. Simulation Exercises : Simulation is the abstraction of real working conditions in the lab
or classroom. Simulation exercises include:
a. Case exercise
b. Computer modeling; which is widely used by airlines in the training of pilots.
c. Vestibule training; in which employees learn their jobs on the equipment they will be using,
but away from the actual work floor. This minimizes the problem of transferring learning to
the job.
i. Coaching
ii. Understudy assignments
iii. Job rotation
iv. Committee assignments
i. Coaching : When a manager takes an active role in guiding another manager, we refer
to this activity as coaching. Whether it be a game or an organization, an effective coach
gives guidance through direction, criticism, and suggestions to aid to the growth of
individual under coaching.
Disadvantages:
iii. Job Rotation : Job rotation can be either horizontal or vertical (promotion). But, it is
usually considered as horizontal or lateral transfer. It (horizontal) can be instituted either
on a planned or on a situational basis.
-Advantages: broadens the knowledge & skills, eliminates boredom & monotony,
develops generalists Disadvantages: productivity is reduced, demotivates trainees who
seek specific responsibility in their chosen specialty.
There is a stock of techniques/methods for developing managers off the job. We will,
however, briefly discuss four of the more popular ones:
i. Sensitivity training
ii. Transactional analysis
iii. Lecture courses
iv. Simulation exercises (Case study, Decision games, Role playing)
ii. Transactional Analysis : This method focuses on the interactions between individuals
and between groups as transactions/dealings. It believes that an individuals behavior
consists of three ego states: parent, adult and child. The parent (authority and superiority)
and child (emotion) states feel and react directly. The adult state (objectivity and
rationality) thinks before acting, and thus managers are encouraged to engage in adult ego
state behavior. In general, TA can help improve the quality of communication between
individuals and groups.
iii. Lecture Courses : In lectures, the resource person presents in a classroom lecture
manner, and the participants/ managers tend to focus on getting theoretical knowledge
aimed at enhancing conceptual, analytical and decision making skills. It may use video
shows and multimedia presentations to make the lectures effective. It is direct, and involves
low cost and time. But, it lacks involvement from learners and often there is no feedback
from learners.
iv. Simulation Exercises : Simulation is the abstraction of the real situation in the lab or
classroom or anywhere outside the real workplace. Simulation exercises aimed at
management development include case study, decision games and role playing.
a. Case study : It is the study and analysis of created business situations. Under this,
managers are required to develop the alternative courses of actions and finally the best
solution. It is interesting but time consuming.
c. Role play :Under this, the manager assumes a role and acts it out. Simulation exercises
are less costly but may be difficult to simulate the real life situations.
Appraisals are judgments of the characteristics, traits and performance of others. Therefore,
performance appraisal is a process of determining how well employees do their jobs
(degree of job effectiveness). According to W. F. Cascio, Performance evaluation is a
review of the job-relevant strengths and weakness of an individual or a team in an
organization. According to Dale S. Beach, Performance evaluation is the systematic
evaluation of individuals with respect to their performance on the job and their potential for
development. Performance Appraisal may be done by superiors, peers, subordinates,
rating committee and even by oneself.
2. Reward Management
6. Supervisory Understanding
8. Policy Formulation
First of all, job performance for each employee and work group should be set. They serve as
the criteria of performance what is to be done and how well it is to be done. They can be in
terms of quality, quantity, time, costs etc.
The performance standards should be, then, communicated to each employee. The main
objectives of standards should be made clear.
The actual performance of the employee during o specified period is measured, the sources
of information for measuring actual performance can be:
i. Performance observation
ii. Internal reports
iii. Special reports: Specialists can be hired to provide special report about job
performance of employees.
In this stage, the actual performance is compared with performance standards set in
advance. Then the magnitude, nature, causes and incidence of deviations are analyzed.
The result of performance appraisal is discussed with the employee. This provides
performance feedback to the employee. The discussion is based on comparing actual
results with agreed standards in a constructive manner.
6. Initiate corrective actions : This is the final stage in performance appraisal. Under this,
one or more of the following actions is/are initiated.
i. Change deviations: Such actions are intended to get things back on the track.
ii. Change standards: Performance standards may be revised to make them appropriate
and realistic for the next appraisal period.
iii. Training assignment: The employee is given a chance for skills up gradation through
tanning.
There are a number of methods for appraising the performance of employees and
managers in an organization. Some of the main are discussed as under.
It is the most commonly used method of performance appraisal. Under this method, first of
all, a set of performance factors is identified and then the appraiser evaluates the
performance of an employee/manager on a scale (e.g., five point scale, seven point scale
etc.). In the rating scale, lowest number denotes poorest performance and the highest
number denotes the best performance.
Specimen Form for Performance Appraisal by Using Graphic Rating Scale method
1. Quantity of work
2. Quality of work
3. Cooperation
4. Dependability
6. Ability to learn
7. Initiative
8. Job knowledge and skills
Advantages
a) Rating scales offer the advantages of relatively easy to use and low cost.
b) Nearly every type of job can be evaluated with the rating scale, the only
requirement being that the job performance criteria should be changed.
c) A large numbers of employees can be evaluated in a short time, and the rater doesn't
need any training to use the scale.
Disadvantages
a) The rater's biases are likely to influence evaluation, and the biases are particularly
pronounced on subjective criteria such as; cooperation, attitude and initiative.
2. Checklist Method
Under this method, a checklist of statements on the traits of the employee and his or her
job is prepared in two columns, i.e., 'yes' column and 'no' column. All that rater
(immediate superior) should do is tick the 'yes' column if the answer to the statement is
positive and in column 'no' if the answer is negative. After ticking off against each item, the
rater forwards the list to the HR department where the actual assessment of the employee
takes place. In other words, the rater only does the reporting, while actual evaluation is
done by the HR department. The HR department assigns certain points to each 'yes' ticked.
Depending on the number of 'yes' the total score is arrived at. When points are allotted to
the checklist, the technique becomes weighed checklist.
Advantages
Disadvantages
3. Ranking Method
In this method, the appraiser ranks all employees from the best to the poorest on the basis
of overall performance. For example, 20 employees can be ranked from 1 to 20 as 1, 20,
2, 19, 3, 18..and so on. This method is tedious if the number of employees is too
large. It is more subjective and emphasizes less on specific performance dimension.
4. Paired Comparison
Under this method, the evaluator compares each employee with every other. Usually only
one trait, the overall ability to perform the job, is considered. The overall ranked of the
employee is determined by the number of times chosen as better performer in total pairs.
The maximum number of pairs is indicated by the formula N(N -1)/2; where N = the total
number of employees to be evaluated. This method is useful only when there are very less
(say 20) number of employees.
According to this approach, employees are evaluated by how well they accomplish the pre-
determined performance targets/objectives. The emphasis is not given on activities but on
results achieved. It consists of basically the five steps.
In this stage, departmental and individual goals or performance targets are set through free
and frank discussion between superiors and subordinates. However, such goals should be in
line with organizations overall objectives. ii. Action planning In action planning, the means
are determined for achieving the ends or goals. That is, realistic plans are developed to
attain the objectives. It includes identifying the activities necessary to accomplish the
objective and estimating time and resource requirements to complete each activity.
iii. Self-control
It involves systematic monitoring and measuring of own performance. MBO is based on the
assumption that employees can be responsible and can exercise self-control.
In this stage, periodic meetings of superiors and subordinates are held to discuss the
progress towards the accomplishment of objectives. Such reviews provide feedback and
suggestions to subordinates to improve their performance.
Finally, at the end of year or some specified period the final performance is evaluated
against the targets. Such appraisal helps to initiate corrective action and also forms a basis
for reward management.
Advantages of MBO
Disadvantages of MBO
2. Its successes depend upon training and supervision. Therefore this method cannot be
effective where employees are not trained and knowledgeable.
Unit VII
Job Evaluation
Job evaluation is the process of analyzing and assessing the various jobs systematically to
ascertain their relative worth in an organization. Job evaluation is the rating of job in an
organization which attempts to compare the relative intrinsic value of each job and forms a
job hierarchy. It is ranking of job but not the job holder as the job holder are rated through
performance appraisal. The basis procedure in job evaluation is to compare the contents of
jobs in relation to one another which form a job hierarchy. In the words of Gary Deshler
Job evaluation is a systematic comparison done in order to determine the worth of one job
relative to another.
Hence, for our purpose, job evaluation is the process of determining the value of each job in
relation to all jobs within the organization.
1. Non-analytical Methods
a) Ranking method : It is the most straight forward method of work evaluation. Jobs,
people, or even teams can be ranked from the ones adding most value to least value to the
organization. The criteria for the ranking are not made explicit. The evaluation committee
assesses the worth of each job on the basis of its title or on its contents. Each job is
compared with others and its place is determined. Teams can be ranked in a team-based
environment as a substitute for or addition to the ranking of jobs and people.
Advantages
Disadvantages
2. Simple task with small number of defined rules, task. The work is checked
and closely supervised.
Advantages
Disadvantages
2. Analytical Methods : These include the point ranking method and the factor comparison
method.
a) Point ranking method : The system starts with selection of job factors construction of
degrees for each factor, an
assignment of points to each degree. Different factors are selected for different jobs, with
accompanying differences in degrees and points. The point method is widely used. A
different number of points are usually assigned for each degrees of each factor so once you
determined the degrees to which each factor is present in the job, you need only add up the
corresponding number of points for each factor and arrive at an overall point value for the
job.
Advantages
- A job is split into a number of factors. The worth of each job is determined on the basis of
its factors.
- The procedure adopted its systematic and can easily be explained to the employees.
Disadvantages
- Employees may disagree with the points allotted and to factors and their degrees
identified.
- Serious doubts are expressed about the range of points allotted and matching them with
the job grades.
The factor comparison method is at another approach for job evaluation in the analytical
group. Under this method one begins with the selection of factors, usually five of them-
mental requirements, skill requirements, and physical exertion, responsibility, and job
conditions. With the factor comparison method you rank each job for several times once
for each compensable factor you choose. For example: jobs might be ranked first in terms of
factor for skill. Then they are ranked according to their mental requirements. Next they
are ranked according to the responsibility and so forth. Then these ranking are combined for
each job in to and overall numerical rating for the job. Factor comparison method is one of
the most widely used, the most accurate and most complex job evaluation method.
An advantage of the factor method is that jobs of unlike nature for example: manual,
clerical and supervisory may be evaluated with the same set of factors but the method is
complicated and expensive.
Unit VIII
Compensation Management
dissatisfaction can lead to absenteeism, turnover, job dissatisfaction, low performance and
many other grievances. Majority of labor-management disputes are related to
compensation. Compensation management is essentially above designing, implementing,
and maintaining pay system which help to improve organizational performance.
-Michael Armstrong
Components of Compensation
Compensation can be either direct or indirect which are further sub-divided as follows:
COMPNESATIO
Dire
ct
Indirect
I Services
n P
c a
e y
n
B tM
a i e
s Benefit
vr
e ei
t
A. Direct Compensation
1. Pay: Pay consists of wages & salaries received for performing work. It can be base pay
or merit pay
Base pay is periodic pay to employment, such as; hourly, weekly or monthly pay
employees receive in exchange for their work.
Merit pay is performance based and they are an addition to the base pay. Employee
performing better receives more merit pay.
2. Incentives: It is generally provided for higher performance. They can be piece wage,
commission, bonus, profit sharing, etc. They are directly related to the performance of an
employee.
B. Indirect Compensation
1. Benefits: They are payment in addition to pay. They are membership based and non-
financial rewards. Employees receive them as a result of their employment and position in
the organization. They can be as:
Pay for time not worked: Paid holidays, leaves, vacation, etc Protection programs: Pension,
gratuity, insurance, provident fund, etc Executive benefits: Free newspaper, telephone
rental, etc.
2. Services: They are not paid in cash. They increase employee well-being at no cost or at
significantly reduced cost. They are also known as Perks. They can be: Transport, food
service, furnished housing Childrens education expenses Legal advice and counseling,
etc. In most organizations, compensation is given as a package which consists of pay plus
a wide range of benefits and services. These are getting popular in organizations where
employees pick benefits that meet their requirement.
Determinants of Compensation
There are two factors that influence the compensation in an organization. They are internal
and external.
Factors Affecting
Compensation
External Factors
Internal Factors
Legal Considerations
Objectives of Labor Market Rates
compensation Equity Considerations
Policies of Cost of Living
Compensation
Job Evaluation
Employee
Productivity
3. Job Evaluation: Job evaluation is actually determining the relative worth of a job to the
organization. Thus, compensation system should be designed around jobs. Job description
and worker requirements also affect pay level and structure.
4. Employee Productivity: This is a new trend which link pay with performance. According to
this, productivity affects pay structure and level. Employee competencies, experience and
motivation affects the productivity of both; employee and organization.
2. Market Rates: The compensation system should also match market rates because the
market is not always stable. They should account for inflationary pressures. The rates
should be very competitive.
3. Equity Considerations: In terms of equity the compensation should be fair enough. The
rates should be same for similar type of jobs within the organization. They should compare
favorably with going pay rates in other organizations. Everyone must perceive it as fair.
4. Cost of Living: This factor is important during periods of rising process. It adversely
affects purchasing power. It should be considered for compensation management.
The main objective of establishing compensation is to price each job in the organization.
So, various methods are used for establishing employee compensation. They are:
1. Job Analysis
2. Job Evaluation
3. Compensation Surveys
4. Pricing Jobs
1. Job Analysis : Job analysis collects information about jobs and workers. These
information are collected through surveys, observations, and discussions among workers
and supervisors.
a) Job Description: It is a profile of the job. It explains job requirements in terms of duties,
responsibilities, authority, accountability, working conditions, etc.
c) Job Performance Standards: They serve as performance targets for employee efforts.
They also serve as criteria for evaluating job performance.
2. Job Evaluation
Job evaluation system puts job in a hierarchy according to their relative worth. It ensures
internal equity. Job evaluation determines the relative worth of one job in relation to
another. The value of each job in relation to other jobs within the organization is decided.
The basic compensable factors considered for job evaluation are:
a) Duties and responsibilities of the job: Obligation for carrying out job. (Job Description)
b) Skills required for the job: Know-how needed for the job. (Job Specification)
c) Efforts needed for the job: Complexity of the tasks in the job
d) Working condition of the job
i. Job Ranking Method: it ranks jobs in order of their difficulty form simplest to the most
complex. They appraise each job and rank its worth to the organization from highest to
lowest. Each job is compared with other to determine the overall rank.
ii. Job Grading Method: It categorizes jobs into grades. Grade is a group of different jobs
requiring similar skills, efforts and responsibility. Each job is assigned a grade and common
factors used are: skills, efforts responsibility and difficulty.
iii. Factor Comparison Method: It is monetary scale for evaluating jobs on a factor by factor
basis. Job evaluation is based on comparison of compensable job component. Compensable
component are factor common to all jobs being evaluated, such as: responsibility, skills,
working conditions, etc.
iv. Point Method: A quantitative point scale is used to evaluate jobs on a factor by factor
basis. It evaluates the compensable factors of each job. It uses points instead of pay rates.
Separate factors are scored to produce an overall point score for the job.
obtained form such surveys serve as the benchmarks for comparing compensation levels.
They ensure external equity for the organization.
b. Consultants and Agencies: they can be hired to conduct surveys based on primary data.
However, survey methodology should be properly designed.
c. Advertisements and Applicants: Job advertisements indicate pay rates for various jobs
4. Pricing Job
It involves grouping of different pay levels together into grades. It shows pay ranges within
each grade. Each grade has a defined maximum and minimum pricing. The pay structure
for a job is determined by:
4. Pricing Job
Pay level
Pay
structure
3.
Compensation
Survey
Various
sources
2. Job
Evaluation
Job ranking
Job grading
Factor
comparison
1. Job Analysis
Job
description
Job
specification
1. Compensation management in Nepal is largely concerned with pay, benefits and services.
But most of the organizations lack pay policy.
2. The goal of compensation management is mainly legal compliance. Civil servants are paid
according to the provision of civil Act and regulation. Minimum wages and bonus are paid
to the workers according to Labor Act.
3. Till the advent of democracy in 1951 employers unilaterally decided wages rate. There
was no uniformity in wage structure.
4. Since 1996, Wages Committee formed by Government has been fixing minimum wages for
various categories of workers.
5. The pay level for job in Nepal is largely determined by market rates or legal provisions.
Ranking through job evaluation process is generally not done.
6. Legally gender discrimination is not allowed. But employers avoid hiring female workers.
7. Civil service Act has provided following compensation system for civil servants:
Pay and allowances as prescribed from time to time.
Pension or gratuity on retirement of the employee.
Disability allowances as prescribed.
One month extra salary for Dashain festival.
Life insurance.
Pension or gratuity for family in case of employees death.
10% of salary as provident fund.
Health insurance, travel insurance.
8. The Labor Act, 1992 has prescribed the following compensation system for workers and
employees:
management in family oriented has contributed to this state of affair. It is hope that the
Concept of Discipline
There are dozens of disciplinary problems that may arise In an organization. However, for
simplicitys sake, it may be classified into four headings.
The main causes for attendance related problems are goal conflicts, changing attitudes
towards employment ( e.g., flex-time concept), organization culture etc.
Insubordination
Fighting
Gambling
Smoking
Drunk
Failure to obey safety rules
Carrying weapons on the job etc.
The main cause for job behavior related problems is the ambiguity surrounding the violation
of rules (e.g., taking an unnecessary sick-day leave).
Stealing
Whatever the cause of such problems is, it is regarded as most serious disciplinary
problem, and may lead to even dismissal of the job. In the USA, a survey found that about
90 percent organizations dismiss their employees for theft and falsified information on the
job application.
Even if they are noticed outside the job they affect organizational performance and
In most cases, the reasons could range anything from poor wages to, poor management
and the communication gaps between the union and management. The common causes of
indiscipline are as follows:
(i) Unfair Management Practices: Management sometimes indulges in unfair practices like:
Wage discrimination
Non-compliance with promotional policies and transfer policies
Discrimination in allotment of work
Defective handling of grievances
Payment of low wages
Delay in payment of wages
Creating low quality work life etc.
However it should be noted that no relationship can continue for long if it is one sided.
What I am implying here is that the workers should also live up to their commitments. They
should be reasonable in their demands.
(vi) Absence of Code of Conduct. This creates confusion and also provides chance for
discrimination while taking disciplinary action.
Before starting the process of discipline, it is essential to hold a preliminary inquiry to know
whether or not there is sufficient evidence for indiscipline or misconduct. After this, the
following steps should be followed:
1. Issue of charge sheet. Once the evidence for indiscipline is identified, the management
should proceed to issue a charge sheet to the employee. Charge sheet is merely a notice of
the charge and provides the employee an opportunity to explain his conduct. Therefore,
charge sheet is generally known as a slow cause notice. In the charge sheet, each charge
should be clearly specified. There should be a separate charge for each allegation and
charge should not relate to any matter, which has already been decided upon.
2. Consideration of explanation. On getting the answer for the charge sheet served, the
explanation furnished should be considered and if it is satisfactory, no disciplinary action
needs to be taken. On the contrary when the management is not satisfied with the
employees explanation, it can proceed with full-fledged enquiry. (However, if the worker
admits the charge, the employer can warn him or award him punishment without further
enquiry.)
3. Suspension pending enquiry. In case the charge is serious, a suspension order may be
served on the employee along with the charge sheet. In Nepal, the suspended worker is to
be paid a subsistence allowance equal to one-half of his wages for the first ninety days of
suspension and three-fourths of wages for the remaining period of suspension if the delay in
the completion of disciplinary proceedings is not due to the workers conduct.
4. Holding of enquiry. An enquiry officer should be appointed to hold the enquiry and a
notice to this effect should be given to the concerned worker. Principle of natural justice
must be followed. The worker should not be denied the chance of explaining himself. The
enquiry officer should give sufficient notice to the worker so that he may prepare to
represent his case and make submission in his defense. The enquiry officer should proceed
in a proper manner and examine witnesses. Fair opportunity should be given to the worker
to cross-examine the management witnesses.
On the conclusion of the enquiry, the enquiry officer should record his findings and the
reasons thereof. He should refrain from recommending punishment and leave it to the
decision of the appropriate authority. After all he is just an enquiry officer!!
5. Order of punishment. Disciplinary action can be taken when the misconduct of the
employee is proved. While deciding the nature of disciplinary action, the employees
previous record, precedents, effects of the action on other employees, etc, have to be
considered.
When the employee feels that the enquiry conducted was not proper and the action taken
unjustified, he must be given a chance to make appeal.
Disciplinary Actions
Disciplinary actions generally follow a typical sequence of four steps: oral warning, written
warning, suspension, and dismissal. However, suspension may be followed by two
additional steps, viz. demotion and pay cut, before the dismissal.
1. Oral warning
2. Written warning
3. Suspension
It is a short lay off without pay. Sometimes partial payment can also be made for the
suspension period.
It generally follows written warning or given for serious violations
May be for one day to several weeks
4. Pay cut
Either cutting the existing pay or denying the annual increments/ grades.
It demoralizes the employees, not widely used in practice.
Pay cuts may be withdrawn if an employee alters his/her behavior.
5. Demotion
6. Dismissal :
Nature of offence
1. Chronic absenteeism 1 2 3 4
2. Habitual tardiness 1 2 3 4
3. Leaving work without 2 3 4
permission
4. Misconduct/insubordi 3 4
nation
5. Drunk on the job 3 4
6. Possession of drug at 4
work
7. Gambling on the job 3 4
8. Safety rules violations 1 2 3 4
9 Stealing 4
1 Falsification of 4
0 information
1 Acts intending to harm 4
1 persons
1 Threats to management 4
2
1 Possession of guns at 4
3 work
1 Loafing (being 2 3 4
4 unoccupied) at work
Unit X: Motivation
Concept of Motivation
The tem 'motivation' is derived from the word 'motive' which means the urge to do or not to
do something. Motives give direction to human behavior because they are
directed to satisfy particular needs or goals. According to Dale S. Beach, "Motivation can
be defined as a willingness to expend energy to achieve a goal or reward." Likewise,
according to M.D. Jucious, "Motivation, simply defined, is the act of stimulating
someone to take a desired course of action." To sum up, motivation is a psychological
process of stimulating people to work hard so as to attain the desired goals or objectives. It
is that intangible factor which inspires people to do something in the best possible way.
The simple model or framework of motivation comprises of six steps as shown in the figure
given below. Motivation process as shown in figure begins with the individual
needs or deficiency. These needs may be psychological or physiological or
social etc. These deficiencies create tension and an individual searches for ways
to satisfy them. Then, a person engages on goal directed behavior and
performs accordingly. For instance, if an employee has strong desire to get
promotion (i.e., need), he or she engages in such behaviors as working for long
hours, meet deadlines, and perform the jobs best of his/her capabilities. Finally, an
individual receives either rewards or punishment (e.g., either gets promotion or not). After
that, he/she reassess the needs (e. g., what after promotion?), and follows the next cycle of
motivation.
Types of Motivation
Importance of Motivation
Motivation is such an intangible factor which stimulates people to perform their jobs best of
their capabilities. The importance of motivation can further be highlighted from the
following points.
Thus motivation is important for both the individuals and the organization. In fact, talented
and motivated people are only the true competitive advantage for modern organizations.
There are a number of financial and non-financial tool or techniques of motivating people at
work. However, the important techniques can be given as:
1. Motivation through rewards : Reward can broadly be defined as the material and/or
psychological payoffs for performing tasks in the workplace. It may be financial or non-
financial. From another perspective, it can be extrinsic or intrinsic. The rewards or payoffs
granted to the individuals by their organization are extrinsic rewards where as the rewards
which are self-generated or experienced or felt internally are the intrinsic
rewards. Money, fringe benefits, promotion, status, praise etc. are the examples of
extrinsic rewards, and a sense of accomplishment, self-esteem, self-actualization etc are the
examples of intrinsic rewards. Note that, whether the reward is intrinsic or
extrinsic it leads to high motivation and the motivation leads to better performance
of jobs. Though there are a variety of rewards to motivate people at the workplace,
some of the most commonly employed organizational rewards can be explained
under the following heads.
i. Pay rises
ii. Promotions
iii. Profit sharing plan (e.g. bonus)
iv. Benefits (e. g. pension, insurance coverage, medical.)
v. Special awards and certificates. (e.g. long service award,
outstanding performance award etc.)
Quality Circles are small groups of employees or workers (7 to 12) who meet
regularly (weekly in most cases) to solve their work-related problems (e.g.
quality, quantity, cost).QCs give the employee opportunity for involvement,
social need satisfaction, participation in work improvement and opportunity for
growth. QC members assume responsibility to identify and analyze problems
on their work areas. Therefore, circle activities are often carried out on breaks and
lunch times too. Members continue to think about the points raised in the meetings.
QCs are instrumental mainly to those organizations who are more concerned with quality.
For example, the American Aerospace industry has used QCs successfully. This industry is
more concerned with quality because one small error can have a devastating
effect on human lives. Likewise, Toyo Kogyo, maker of Mazda, alone has 1,800 QCs.
The participation of employees in decision making can be increased by making them a part
of organizations management. Many organizations today have planned to distribute their
shares among employees. Firstly, the ownership feeling motivates them to work harder and
smarter. Secondly, they can participate in crucial decision making of organization through
shareholders AGM.
The fix work schedule (for example, 9:00 am to 5:00pm) makes it difficult for employees to
do their personal work like going to bank, visiting childrens school, paying the utility bills
and so on. The emerging concept is that employees should be given freedom to choose
their own work time. It increases job satisfaction, motivation and their commitment to the
organization. So, under this mechanism, an employee can come early and
leave early, come late and leave late, and can come early, take a break in between
working hours, and leave late.
This concept is guided by the idea that self-management is the best management. Self-
management promotes creativity, motivation and productivity. Self-managed work
teams are work groups in which members perform many of the functions
usually reserved to management, such as planning, scheduling, budgeting,
directing, and evaluating. such teams have clearly defined inputs and outputs. Each
employee is trained to do many of the groups tasks in order to provide flexibility and
increase productivity. Self-managed work teams measure their own performance by such
standards as service quality, meeting scheduled deliveries, productivity, and cost control.
Thus, each member has the increasing level responsibility at each stage. These days
such teams are considered to be the best mechanism for empowering
employees and to encourage their participation in work-related activities.
Different techniques of job design also cause intrinsic motivation to employees. Sometimes,
it is more powerful than the extrinsic motivation techniques. Some of the main techniques
of motivating people through appropriate job design include:
i. Job enlargement
Jon enlargement means increasing the scope of a job through extending the range of its job
duties and responsibilities. This contradicts the principles of specialization and the division
of labor whereby work is divided into small units, each of which is performed repetitively by
an individual worker. Some motivational theories suggest that the boredom and alienation
caused by the division of labor can actually cause efficiency to fall. Thus, job enlargement
seeks to motivate workers through reversing the process of specialization. A
typical approach might be to replace assembly lines with modular work; instead of an
employee repeating the same step on each product, they perform several tasks on a single
item.
Job enrichment is an attempt to motivate employees by giving them the opportunity to use
the range of their abilities. It is an idea that was developed by the American psychologist
Frederick Herzberg in the 1950s. It can be contrasted to job enlargement
which simply increases the number of tasks without changing the challenge. As such job
enrichment has been described as 'vertical loading' of a job, while job enlargement is
'horizontal loading'. An enriched job should ideally contain:
Job rotation is another tool of motivating people at work. It can also be regarded as
an approach to management development where an individual is moved through a
schedule of assignments designed to give him or her a breadth of exposure to the entire
operation. Job rotation is also practiced to allow qualified employees to gain
more insights into the processes of a company, and to reduce boredom and increase
job satisfaction through job variation.