What Is HRM
What Is HRM
What Is HRM
MEANING OF HRM
HRM is a management function that helps organisation to recruit, select, train, develop and manage its members. Simply stated, HRM is all about management of people in the organisation from Recruitment to Retirement. HRM refers to set of programs, functions, and activities designed and carried out in order to maximise both employee as well as organisational effectiveness. Definition 1 HRM is planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and social objectives are accomplished. Definition 2 HRM is concerned with the people dimensions in management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization are essential to achieving organizational objectives. This is true, regardless of the type of the organization government, business, education, health, recreational, or social action.
OBJECTIVES OF HRM
1. Organizational Objectives : To assist the organization to achieve its primary objectives, whether it is profit making or charity or social agenda. 2. Societal Objectives: To be responsive to the needs and challenges of the society while minimizing the negative impact, if any, of such demands upon the organization. 3. Functional Objectives : To maintain departments contribution and level of services at a level appropriate to the organizations needs. 4. Personal Objectives: To assist employees in achieving their personal goals, at least in so far as these goals enhance the individuals contribution to the organization. This is necessary to maintain employee performance and satisfaction for the purpose of maintaining, retaining and motivating the employees in the organization.
SCOPE OF HRM
From Entry to Exit or Recruitment to Retirement of an employee in the organization Following are the areas of operation of HRM: 1. Human Resource Planning 2. Job Analysis 3. Job Design
4. Recruitment & Selection 5. Orientation & Placement 6. Training & Development 7. Performance Appraisals 8. Job Evaluation 9. Employee and Executive Remuneration 10. Motivation 11. Communication 12. Welfare 13. Safety & Health 14. Industrial Relations Based on the above activities, we can summarize the scope of HRM into following seven different categories: 1. Introduction to HRM 2. Employee Hiring 3. Employee and Executive Remuneration 4. Employee Motivation 5. Employee Maintenance 6. Industrial Relations 7. Prospects of HRM
ROLE OF HRM
1. (a) (b) Advisory Role: HRM advises management on the solutions to any problems affecting people, personnel policies and procedures. Personnel Policies: Organization Structure, Social Responsibility, Employment Terms & Conditions, Compensation, Career & Promotion, Training & Development and Industrial Relations. Personnel Procedures: Relating to manpower planning procedures, recruitment and selection procedures, and employment procedures, training procedures, management development procedures, performance appraisal procedures, compensation procedures, industrial relations procedures and health and safety procedures. Functional Role: The personnel function formulates personnel policies in accordance with the companys doctrine and management guidelines. It provides guidance to managers to help them ensure that agreed policies are implemented. Service Role: Personnel function provides personnel services. These services constitute the main activities carried out by personnel department, like payroll, disciplinary actions, etc, and involve the implementation of the policies and procedures described above.
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ROLE OF HR MANAGERS
1. Humanitarian Role:
2. Counsellor: Consultations to employees about marital, health, mental, physical and career problems. 3. Mediator: Playing the role of a peacemaker during disputes, conflicts between individuals and groups or management. 4. Spokesman: To represent the company in Media and other forums because he has better overall picture of his companys operations. 5. Problem Solver: planning. Solving problems of overall human resource management and long-term organizational
6. Change Agent: Introducing and implementing institutional changes and installing organizational development programs 7. Management of Manpower Resources: Broadly concerned with leadership both in the group and individual relationships and labour-management relations.
4. Directing: Issuance of orders and instructions, providing guidance and motivation to managers and employees.
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Controlling: Regulating personnel activities and policies according to plans. Observations and comparisons of deviations
Planning, Recruitment and Selection, Induction and Placement Training, Development, Career planning and counselling. Wage and Salary determination and administration Sustaining and improving working conditions, retentions, employee communication Managing separations caused by resignations, terminations, lay offs, death, medical sickness Integration of human resources with organization.
growing number of women in workforce, working mothers, more educated and aware workers etc. Thus, changing demography of workforce has its own implications for HR managers and a true challenge to handle. 3. Changed Employee Expectations: With the changes in workforce demographics, employee expectations and attitudes have also transformed. Traditional allurements like job security, house, and remunerations are not much attractive today. Rather, employees are demanding empowerment and equality with management. Hence, it is a challenge for HRM to redesign the profile of workers, and discover new methods of hiring, training, remunerating and motivating employees. New Industrial Relations Approach: In the changed industrial climate, even trade unions have realised that strikes and militancy have lost their relevance and not many workers are willing to join them and disrupt work. However, the problems faced by workforce now have different dimension for the management. They manifest in the form of increased attrition rate. Unsatisfied employees instead of approaching the management for resolution, often take up the new job. The challenge before the HRM is find ways and means to feel the pulse of employees and address the issues on proactive basis. Renewed People Focus: Man behind the machine is most important than the machine. This is an old doctrine of the Armed Forces. However, this doctrine has begun to gain acceptance in the corporate world and thus all out efforts to grab the best talent at what ever cost. 4. Managing the Managers: Managing the managers is most difficult. Armed with inside information, they can not be lured with rosy promises. They are in great demand too with growth in economy. These are the people who are most mobile, attrition rate being highest for the junior and middle management level. The challenge of HRM is how to manage this tribe? 5. Weaker Sections Interests: Another challenge for HRM is to protect the interest of weaker sections of society. The dramatic increase of women workers, minorities and other backward communities in the workforce, coupled with weakening of trade unions, has resulted in the need for organizations to re-examine their policies, practices and values. In the name of global competition, productivity and quality, the interests of the society around should not be sacrificed. It is a challenge of todays HR managers to see that these weaker sections are neither denied their rightful jobs nor are discriminated while in service. 6. Contribution to the Success of Organizations: The biggest challenge to an HR manager is to make all employees contribute to the success of the organization in an ethical and socially responsible way. Because societys well being to a large extent depends on its organizations.
Strategic Management is that set of managerial decisions and actions that determine the long-term performance of a corporation. It includes environmental scanning, strategy formulation, strategy implementation, evaluation and control. The study of strategic management therefore emphasizes monitoring and evaluating environmental opportunities and threats in the light of a corporations strengths and weaknesses.
Values: Adopt proactive HRD measures, which encourage values of trust, autonomy, proactive approach and experimentation. Maximize Productivity and Efficiency: Maximize productivity and efficiency of the organization by helping qualitative growth of people
TEAM EFFECTIVENESS
Definition: A team is a small group of people who agree to work together for achieving a clear and identifiable set of goals.
Teams Can be Very Effective. The benefit of teams lie in Synergy which means The whole is greater than sum of its parts. Thus, a team is able to produce more than the sum of individuals working separately. A team benefits from complementing and some times contrasting abilities of its members. Teams can bring to bear a wider range of skills and experience to solve a problem. Teams often lead to better quality decisions as individual whims and prejudices are kept in check. Further, members of team have an obligation to each other and thus there is a moral force/binding to perform.
TEAM EFFECTIVENESS
For a team to be effective, following are the prerequisites: 1. Harmony and trust among the team members 2. Effective leadership 3. Shared goals 4. Diverse skills and experience - technical, problem solving and interpersonal skills 5. Creativity and risk taking ability 6. Freedom to voice views 7. Ability to self-correct 8. Interdependent work 9. Effective decision making process 10. Ability to resolve conflict 11. Clear communication channels Synergy among the team members is very important. The team needs a clear sense of direction which the leader provides. Harmony and trust among the group members is utmost essential. In any group, conflicts are inevitable, how ever harmonious it may be. There has to be a well formulated policy for conflict management. Decision making is a source of potential conflicts. A well charted course for decision taking will be able to minimise such conflicts.
HRP is a Process, by which an organization ensures that it has the right number of right kind of people at the right place, at the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives.
HRP SYSTEM
HRP System as such includes following elements or sets for planning. Business Environment Overall Organization Objectives Forecasting Manpower Needs Assessing Manpower Supply Matching Manpower Demand-Supply factors Based on these elements we can draw HRP System Architecture as under.
Business Environment
Surplus Manpower
Shortage of Manpower
HRP PROCESS
Organizational Objectives & Policies: Organizational objectives and policies give a clue to future requirement of manpower. A company planning expansion would require more manpower in near future. Kind of people required would be dictated by technology being planned for expansion. HRP needs to align hiring of people with these elements. In addition, companys policies towards its manpower policies, like using internal resources for promotion or external resources or dependence on certain caste or region for some jobs have also to be catered for. Gujarati companies in diamond business hire only gujaraties. Similarly, certain Business Houses from Rajasthan prefer Rajasthanies. So, HRP process will be dictated by following organisational policies: 1. Internal Hiring or External Hiring? 2. Training & Development plans 3. Union Constraints 4. Job enrichment issues 5. Rightsizing organization 6. Automation needs 7. Continuous availability of adaptive and flexible workforce Manpower Demand Forecasting: It is the process of estimating the future quantity and quality of people required. The basis should be long term corporate plans. Demand forecasting should be based on following factors.
Internal Factors: Production levels New products and services Organizational structure Employee separation Budget constraints External Factors: Economic climate Laws and regulatory bodies Technology changes Social Factors Legal requirements with regards to reservations
Manpower Supply Forecasting: This process measures the number of people likely to be available from within and outside the organization after making allowance for absenteeism, internal movements and promotions, wastages, changes in hours and other conditions of work.
Inflows and outflows (transfers, promotions, separations, resignations, retirements etc.) Turnover rate (No. Of separations p.a. / Average employees p.a. X 100) Conditions of work (working hours, overtime, etc.) Absenteeism (leaves, absences) Productivity level Job movements (Job rotations or cross functional utilizations)
External Supply Assessment: External sources are required for following reasons New blood, New experiences Replenish lost personnel Organizational growth Diversification External sources can be colleges and universities, consultants, competitors and unsolicited applications.
SUCCESSION PLANNING
Meaning of Succession Planning
Succession planning is the process or activities connected with the filling of key positions in the organization hierarchy as vacancies arise. Succession planning focuses on identification of future vacancies and locating the probable successor. For example in succession planning the key concern can be who will be next CEO or what will happen if the Marketing Manager retires in coming March. Grooming a person to fill an important position may take years. Succession planning involves identification of key positions in the company and then scouting for people who can effectively fill those positions at short notice. Importance of Succession Planning
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Succession planning helps when there is a sudden need due to job hopping/death of serious injury to a key employee. There is little or no set back due to absence of key employee. Acts as a motivator for the individual employee who comes to know of the impending promotion in advance. Succession planning helps create loyalty towards the organization and improved motivation and morale of individual employees. Organization gains stable workforce and low employee turnover. Ultimately organization becomes successful in accomplishing its goals effectively.
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CAREER PLANNING
Career as a concept means a lifelong sequences of professional, educational and developmental experiences that an individual goes through in his working life. It is a sequence of positions occupied by a person during his life.
Career planning is the process of identifying an individuals strengths, weaknesses, aptitudes, inclinations, aspirations and attitudes and designing his job responsibilities to take maximum advantages of positive traits and minimising the effect negatives traits. After identifying the personality traits of the individual begins the process of identifying suitable job billets for him. It may also involve training at times to strengthen his weak areas. Career planning is a process of integrating the employees needs and aspirations with organizational requirements. A typical succession planning involves the following activities: 1. 2. sources. Analysis of the demand for managers and professionals by company level, function and skill. Audit of existing executives and projection of likely future supply from internal and external
3. Planning of individual career paths based on objective estimates of future needs and drawing on reliable performance appraisals and assessments of potential. 4. Career counselling undertaken in the context of a realistic understanding of the future needs of the firm as well as those of the individual. 5. Accelerated promotions with development targeted against the future needs of the business. 6. Performance related training and development to prepare individuals for future roles as well as current responsibilities 7. Planned strategic recruitment not only to fill short term needs but also to provide people for development to meet future needs 8. The actual activities by which openings are filled
JOB ANALYSIS
Definition 1 Job Analysis is a process of collecting and studying the information relating to operations and responsibilities of a specific job. The immediate products of this analysis are Job Description and Job Specifications. Definition 2 It is a basic technical procedure that is used to define duties and responsibilities and accountabilities of the job.
Recruitment & Selection : Knowing the staffing needs is essential for Recruitment and Selection Right person for each job. Sourcing of recruits also becomes easy and cost effective
Job Evaluation : Job evaluation means determination of relative worth of each job for the purpose of establishing wage and salary. This is possible with the help of job description and specifications; i.e. Job Analysis. Remuneration : Job analysis also helps in determining wage and salary for the jobs.
Performance Appraisal : Job analysis helps in fixing the bench marks of performance standards which in turn help in objective Performance appraisal, rewards, promotions, etc. Safety & Health : Job Analysis helps to uncover hazardous conditions and unhealthy environmental factors so that corrective measures can be taken to minimize and avoid possibility of human injury.
JOB DESCRIPTION
Job Description implies objective listing of the job title, tasks, and responsibilities involved in a job. Job description is a word picture of the duties, responsibilities and organizational relationships that constitutes a given job or position. It defines work assignment and a scope of responsibility that are sufficiently different from those of the other jobs to warrant a specific title. Job description is a broad statement of purpose, scope, duties and responsibilities of a particular job.
JOB SPECIFICATIONS
Job Specification involves listing of qualifications, skills and abilities required in an employee to meet the job description. These specifications are minimum required to do the job satisfactorily. In other words, it is a statement of minimum acceptable physical/psychological attributes and professional skills necessary to perform the job properly. Job specifications seek to indicate kind of persons who can be expected to meet the role requirements. Thus, it is basically concerned with matters of selection, screening and placement and is intended to serve as a guide in hiring.
6. Demographic features Job specifications can be further divided into three broad categories
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Essential Attributes Desirable Attributes Contra-Indicators Attributes which are likely to act as impediments to success of job
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JOB EVALUATION
Job evaluation is the process of analyzing and assessing various jobs systematically to ascertain their relative worth in an organization. Job Evaluation involves determination of relative worth of each job for the purpose of establishing wage and salary differentials. Relative worth is determined mainly on the basis of Job Description and Job Specification only. Job Evaluation helps to determine wages and salary grades for all jobs. Employees need to be compensated depending on the grades of jobs they perform. Remuneration must be based on the relative worth of each job. Ignoring this basic principle results in inequitable compensation and attendant ill effects on employees morale. A perception of inequity is a sure way of de-motivating an employee. Jobs are evaluated on the basis of content and placed in order of importance. This establishes Job Hierarchies, which becomes the basis for satisfactory wage differentials among various jobs. Jobs are ranked (not jobholders)
Point Ranking Methods: Different factors are selected for different jobs with accompanying differences in degrees and points. Factor Comparison Method: The important factors are selected which can be assumed to be common to all jobs. Each of these factors are then ranked with other jobs. The worth of the job is then taken by adding together all the point values.
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Non-Analytical Methods
(a)
Ranking Method: Jobs are ranked on the basis of their title or contents. Like Managers, Supervisors, Workers, Peon, etc. All managers whether from production, planning, sales, stores or Allied Services (House Keeping) Deptt are treated equal. Job is not broken down into factors etc. It is easier to implement but not always satisfactory for the employees. Job Grading Method: It is based on the job as a whole and the differentiation is made on the basis of job classes and grades. Like in a hotel, Receptionists job may be graded higher than back office billing clerks job. Similarly, a production/sales manager billet may be graded higher than Allied Services Managers. In this method it is important to form a grade description to cover discernible differences in skills, importance to companys core operations, responsibilities and other characteristics.
(b)
Sometimes encourages employees to manipulate for promotion/internal placement when there may be limited opportunities for enhancement as a result of downsizing.
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It promotes internal focus (office politics) instead of customer orientation Not suitable for forward looking organizations, which may have trimmed multiple job titles into two or three broad jobs.
JOB DESIGN
In the most simplified form - The process of breaking/organizing work into specific tasks in order to perform a specific job is called Job Design. Job Design is the logical Sequence to Job Analysis. Job design involves conscious efforts to organise tasks, duties and responsibilities into a unit of work to achieve certain objective.
Organizational factors
(a) Characteristics of Tasks (Planning, Execution and Controlling of Task) (b) Work Flow (Process Sequences) (c) Ergonomics (Time & Motion Study) (d) Work Practices (Set of ways of performing tasks) 2. Environmental Factors (a) Employee Abilities and Availability (b) Social and Cultural Expectations 3. Behavioural Elements (a) Feedback (b) Autonomy (c) Use of Abilities (d) Variety
Work Simplification : Job is simplified or specialized. The job is broken down into small parts and each part is assigned to an individual. To be more specific, work simplification is breaking down the job to such small tasks that complexity is taken out of them. Like in a assembly line of car, one person only tighten wheel nuts with a pneumatic tool which tighten the nuts. The complexity of ensuring that each nut is tightened to required degree has been transferred to machine and the worker only applies the tool to the right place. He does not even
put the wheel in place. In such cases, work becomes repetitive in nature. Work simplification is used when jobs are not specialized.
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Job Rotation : Same job, same people, same surrounding, days over days, months over months, leads to boredom and even fatigue. And it manifests in higher error rate, fall in productivity, absenteeism, job hopping, etc. Job rotation is answer to such problems. While broadly the job may remain same, minor variations between jobs are enough to rejuvenate the employee. It not only benefits the personnel but also the organisation in equal measure
(a)
Benefit to the Employee. It is a development tool since the employees get exposure to several jobs which develops their personality and employability. It improves their self-image and leads to personal growth. Such cross functional deployments often reveal hidden performance potentials/skills of many employees in the course of new job. Benefits to the Company: Such cross functional knowledge of employees provides the company with a fall back option in case of absence of any employee. It also gives flexibility to the management to reorganise the functional setup just in case of need like demand pattern shift or change in business model or any other eventuality. Also, periodic job rotation is the best method to avoid compartmentalisation of departments. Movement of personnel between departments and first hand knowledge of limitations and problems faced by other departments reduces frictions and leads to better cooperation between them. Interpersonal bonds developed during in the course of such cross functional job rotation further smoothens the interaction between departments. On the negative side, training costs rise and it can also de-motivate intelligent and ambitious trainees who might take it as their undesirability in their own department unless it is well laid down policy of the company.
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Job Enlargement : It means expanding the number of tasks, or duties assigned to a given job. Job enlargement is naturally opposite to work simplification. Adding more tasks or duties to a job does not necessarily mean that new skills and abilities are needed. There is only horizontal expansion. It is with same skills taking additional responsibilities like increasing the number of machines operators under a supervisor from 10 to 15. Job enlargement may involve breaking up of the existing work system and redesigning a new work system. For this employees also need to be trained to adjust to the new system. Job enlargement is said to contribute to employee motivation but the claim is not validated in practice. Job Enrichment : Job enrichment is to add a few more motivators to a job to make it more rewarding. A job is enriched when the nature of the job is exciting, challenging, rewarding and creative or gives the job holder more decision-making, planning and controlling powers. An enriched job will have more authority, responsibility, autonomy (vertical enrichment), more variety of tasks (horizontal enrichment) and more growth opportunities. The employee does more planning and controlling with less supervision but more self-evaluation. For example: transferring some of the supervisors tasks to the employee and making his job enriched. As per Hertzberg, who was the father of this term, an enriched job has eight characteristics:
(a) (b) (c) (d) (e)
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Direct Feedback: Employee should be able to get immediate knowledge of the results they are achieving. Client Relationship: An employee who serves a client or customer directly has an enriched job. The client can be outside or inside the firm. New Learning: An enriched job allows its incumbent to feel that he is growing intellectually. Scheduling Own Work: Freedom to schedule own work (autonomy) is job enrichment. Unique Experience : A enriched job has some unique qualities or features.
Control over Resources: One approach to Job enrichment is for the each employee to have control over his or her resources and expenses. Direct Communication Authority: An enriched job allows worker to communicate directly with people who use his or her output. Personal Accountability: An enriched job holds the incumbent responsible for the results. He or she receives praise for good work and blame for poor work. Job enrichment is not a substitute for good governance. If other environmental factors in the business are not right, mere job enrichment will not mean much. Job enrichment may have short term negative effects till the worker gets used to the new responsibility.
(c) Job enrichment itself might not be a great motivator since it is job-intrinsic factor. As per the twofactor motivation theory, job enrichment is not enough. It should be preceded by hygienic factors etc. (d) Job enrichment assumes that workers want more responsibilities and those workers who are motivated by less responsibility, job enrichment surely de-motivates them (e) Workers participation may affect the enrichment process itself. (f) Change is difficult to implement and is always resisted as job enrichment brings in a changes the responsibility.
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Autonomous o r Self-Directed Teams : Empowerment results in self-directed work teams. A selfdirected team is a group of employees responsible for a whole work segment. They work together, handle day-today problems, plan and control, and are highly effective team.
JOB SATISFACTION
Job satisfaction is self satisfaction derived by an employee in doing the job he has been entrusted to do. Job satisfaction is more a function of the various attitudes possessed by an employee towards his job, related factors and life in general than the job itself. The attitudes related to job may be wages, supervision, steadiness, working conditions, advancement opportunities, recognitions, fair evaluation of work, social relations on job, prompt settlement of grievances etc. A person with a kind heart will find high level of job satisfaction in working with some agency involved in charitable work though the salary might be relatively less. An over ambitious person will never find the job satisfaction. In short job satisfaction is a general attitude towards the job, which is the result of many specific attitudes in three areas namely, job factors, individual characteristics and group relationships outside the job.
Management Controlled Factors: Security, Payment, Fringe benefits, Advancement opportunities and Working conditions, Co-workers, Responsibilities, Supervision
WORK SAMPLING
Definition: "A measurement technique for the quantitative analysis of an random/irregularly occurring activity."
Work sampling is relatively cheaper because it uses random samples instead of continuous observations.
Many operators or machines can be studied by a single observer Work sampling normally spans over several days or weeks, thus minimizing the effects of sudden variations on a particular day. Work Sampling tends to minimize operator behaviour modification during observation (operator, deliberately or otherwise, under or over performing while under observation). Work Sampling, in general, does not require a trained time-study analyst to take the observations. Also, stopwatches or other timing devices are not required. Many studies make use of off-shift technicians or operators to take the observations.
RECRUITMENT
Definition: Recruitment is the process of finding and attracting capable applicants for a job to create a pool from which selection is to be made of the most suitable candidates. The Process begins when new recruits are sought and ends when their applications are submitted. Though theoretically recruitment process is said to end with the receipt of applications, in practice, the activity extends to the screening of applications so as to eliminate those who are not qualified for the job. The result is a pool of applicants from which selections for new employees are made.
To broad base the applicant pool in order to get the right talent at the affordable cost. Increase the pool of job candidates at minimum cost Help increase success rate of selection process by reducing number of under-qualified or over-qualified applications. Meet legal and social obligations Identify and prepare potential job applicants
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External Factors:
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Demand and Supply status of specific skills set. Unemployment Rate (Area-wise) Labour Market Conditions Political and Legal Environment (Reservations, Labour laws) Companys Image
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Internal Factors: 1. 2. 3. 4. 5. Recruitment Policy (Internal Hiring or External Hiring?) Human Resource Planning (Planning of resources required) Size of the Organization (Bigger the size lesser the recruitment problems) Cost Growth and Expansion Plans
RECRUITMENT PROCESS
1. Recruitment Strategy Development (a) (b) Trained or untrained (to be trained at companys expense) Internal or external sourcing Internal Recruitment (Source 1) (i) (ii) (iii) (iv) (v) Present employees Employee referrals Transfers & Promotions Former Employees Previous Applicants External Recruitment (Source 2) (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) Professionals or Trade Associations Advertisements Employment Exchanges Campus Recruitment Walk-ins Interviews Consultants Contractors Displaced Persons Radio & Television Acquisitions & Mergers
(c)
Competitors Technological tools to be used for advertising Where to look How to look
Recruitment Planning
(a) (b)
Number of applicants sought (Based on past experience) Types of applicants to be called (Qualification, category, area, etc)
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Screening of Applications Evaluation and Cost Control (a) (b) (c) (d) (e) (f) (g) Salary Cost Management & Professional Time spent Advertisement Cost Producing Supporting literature Recruitment Overheads and Expenses Cost of Overtime and Outsourcing Consultants fees
2. Selection rate from each source 3. Retention and Performance of selected candidates 4. Recruitment Cost 5. Time lapsed data 6. Image projection INTERNAL RECRUITMENT Advantages Disadvantages Less Costly 1. Old concept of doing things Candidates already oriented towards 2. It abets raiding organization 3. Candidates current work may be Organizations have better knowledge affected about internal candidates 4. Politics play greater roles Employee morale and motivation is 5. Morale problem for those not promoted. enhanced
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EXTERNAL RECRUITMENT Advantages Disadvantages Benefits of new skills, talents and Ideas 1. Better morale and motivation associated Benefits of new experiences with internal recruiting is denied Compliance with reservation policy 2. It is costly method becomes easy 3. Chances of creeping in false positive Scope for resentment, jealousies, and and false negative errors heartburn are avoided. 4. Adjustment of new employees takes longer time.
SELECTION
MEANING OF SELECTION
Selection is the process of picking up individuals (out of the pool of job applicants) with requisite qualifications and competence to fill jobs in the organization. A formal definition of Selection is as under: Selection is the process of differentiating between applicants in order to identify and hire those with a greater likelihood of success in a job.
Preliminary Interview : This is a short interview. The purpose of preliminary interviews is to weed out the prima facie misfit applicants. It is also called courtesy interview and is a good public relations exercise. Selection Tests : Jobseekers who pass the preliminary interviews are called for tests. There are various types of tests conducted depending upon nature of job and the company. These tests can be Aptitude Tests, Personality Tests and Ability Tests and are conducted to judge how well an individual can perform tasks related to the job. Besides this, there are some other tests also like Interest Tests (activity preferences), Graphology Test (Handwriting), Medical Tests, Psychometric Tests etc.
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Employment Interview : The next step in selection is employment interview. Here, interview is a formal and in-depth conversation to assess applicants suitability. It is considered to be an excellent selection device. Interview type and pattern can vary greatly. Interviews can be One-to-One, Panel Interview, or Sequential Interviews. Besides there can be Structured and Unstructured interviews, Behavioural Interviews, Stress Interviews. Reference & Background Checks : Reference checks and background checks are conducted for provisionally identified candidates to verify the information provided by them. Reference checks can be through formal letters or telephonic. However, it is more of a formality and selections decisions are very seldom affected by it. Selection Decision : After obtaining all the information, selection decision is made. The final decision has to be made out of applicants who have been identified as suitable. The views of line managers carry much weight at this stage because it is they who are eventually responsible for the performance of the new employee. Considering the job climate, often more than required number is selected to cater for any selected candidate withdrawing at the job offer stage. Physical Examination : After the selection decision is made, the candidate is required to undergo a physical fitness test. A job offer is often contingent upon the candidate passing the physical examination. Job Offer : The next step in selection process is job offer to those applicants who have successfully passed all tests. It is made by way of letter of appointment. Contract of Employment : After the job offer is made and candidates accept the offer, certain documents are needed to be executed by the employer and the candidate. A formal contract of employment, containing written contractual terms of employment etc are signed by both sides.
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Detailed Job Descriptions and Job Specifications prepared in advance and endorsed by personnel and line management should be available with Selection Board. Train the selectors to assess the right attributes in applicants. Determine aids to be used for selection process. Check competence of recruitment consultants before hiring their services. Attempt to validate the procedure regularly
Perception : We all perceive the world differently. Our limited perceptual ability is obviously a stumbling block to the objective and rational assessment of people. Fairness : Barriers of fairness includes discrimination against religion, region, caste, race or gender, etc.
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Plethora of Human Traits : Success in any job is more a function of attitude than aptitude. The tests are validated over a period of time to differentiate between the employees who can perform well and those who will not. Yet, no test can claim 100% success in finding the right employee. Pressure : Pressure brought on selectors by management, politicians, bureaucrats, relatives, friends and peers to select particular candidate are also barriers to effective selection. Time and Cost : Often the time and funds available to undertake selection process are limited forcing the selectors to forego certain tests.
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1. To make the managers Self-starters Committed Motivated Result oriented Sensitive to environment Understand use of power
5. Teach them about effective communication 6. To subordinate their functional loyalties to the interests of the organization
Development depends on personal drive and ambition Development is voluntary Development is a broader concept focused on personality development Development includes training wherever necessary Training is aimed at improving job related Development aims at overall personal efficiency and performance effectiveness (including job efficiencies)
1. Performance Appraisals 2. Interviews 3. Questionnaires 4. Attitude Surveys 5. Training Progress Feedback 6. Work Sampling 7. Rating Scales Group Level Training Needs Identification 1. Organizational Goals and Objectives 2. Personnel / Skills Inventories 3. Organizational Climate Indices 4. Efficiency Indices 5. Exit Interviews 6. MBO / Work Planning Systems 7. Quality Circles 8. Customer Satisfaction Survey 9. Analysis of Current and Anticipated Changes Benefits of Training Needs Identification 1. Trainers can be informed about the broader needs in advance 2. Trainers Perception Gaps can be reduced between employees and their supervisors 3. Trainers can design course inputs closer to the specific needs of the participants 4. Diagnosis of causes of performance deficiencies can be done
METHODS OF TRAINING
On the Job Trainings (OJT): When an employee learns the job in actual working site in real life situation, and not simulated environment, it is called OJT. Employee learns while working. Take the instance of roadside mechanics. Small boys working there as helpers learn while helping the head mechanic. They do not learn the defect analysis and engine repairing skills in any classroom on engine models. Advantages of On-the-Job Training: 1. It is directly in the context of job 2. It is often informal 3. It is most effective because it is learning by experience 4. It is least expensive 5. Trainees are highly motivated 6. It is free from artificial classroom situations
2. It is not systematically organized 3. Poorly conducted programs may create safety hazards On the Job Training Methods
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Job Rotation: Refer page 27. Job Coaching: An experienced employee can give a verbal presentation to explain the nittygrittys of the job. Job Instruction: It may consist of an instruction or directions to perform a particular task or a function. It may be in the form of orders or steps to perform a task. Apprenticeships: functions of job. Generally fresh graduates are put under the experienced employee to learn the
Internships and Assistantships: Interns or assistants are recruited to perform specific time-bound jobs or projects during their education.
Off the Job Training: Trainings conducted in simulated environments, classrooms, seminars, etc are called Off the Job Training. Advantages of Off-the-Job Training 1. Trainers are usually experienced enough to train 2. It is systematically organized 3. Efficiently created programs may add lot of value Disadvantages of Off-the-Job Training: 1. It is not directly in the context of job 2. It is often formal
3. 4. 5.
It may not be based on experience. It is expensive. Trainees may not be much motivated
Classroom Lectures: Advantage It can be used for large groups. Cost per trainee is low. Disadvantages Low interest of employees . It is not learning by practice. It is One-way communication. No authentic feedback mechanism. Likely to lead to boredom for employees. Audio-Visual: It can be done using Films, Televisions, Video, and Presentations etc. Advantages Wide range of realistic examples, quality control possible. Disadvantages One-way communication, No feedback mechanism. No flexibility for different audience.
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Simulation: Creating a real life situation for decision-making and understanding the actual job conditions give it. Ensures active participation of all trainees. Can be very effective but needs good conductors. Case Studies: It is a written description of an actual situation in the past in same organisation or some where else and trainees are supposed to analyze and give their conclusions in writing. This is another excellent method to ensure full and whole hearted participation of employees and generates good interest among them. Case is later discussed by instructor with all the pros and cons of each option. It is an ideal method to promote decision-making abilities within the constraints of limited data. Role Plays: Here trainees assume the part of the specific personalities in a case study and enact it in front of the audience. It is more emotional orientation and improves interpersonal relationships. Attitudinal change is another result. These are generally used in MDP. Sensitivity Trainings: This is more from the point of view of behavioural assessment as to how an individual will conduct himself and behave towards others under different circumstances. There is no pre-planned agenda and it is instant. Advantages increased ability to empathize, listening skills, openness, tolerance, and conflict resolution skills. Disadvantage Participants may resort to their old habits after the training. Programmed Instructions: Provided in the form of blocks either in book or a teaching machine using questions and feedbacks without the intervention of trainer. Advantages Self paced, trainees can progress at their own speed, strong motivation for repeat learning, material is structured and self-contained. Disadvantages Scope for learning is less; cost of books, manuals or machinery is expensive. Computer Aided Instructions: It is extension of PI method, by using computers. Advantages Provides accountabilities, modifiable to technological innovations, flexible to time. Disadvantages High cost. Laboratory Training.
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5. Unions influence
PURPOSE OF ORIENTATION
The idea of Orientation programme is to make the new employees feel at home in new environment. Any employee while joining a new organisation is anxious about the new set-up, new colleagues, his own performance vis a vis other more experienced employees in the organisation, his work place, his exact responsibilities, etc. A structured information and introduction system will make his transitory period short and reduce his anxiety quickly. He will begin to perform to his potential quickly.
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Formal or Informal: In informal orientation, new employees are put on the jobs and they are expected to acclimatise themselves with the work and the organisation. In contrast, in formal orientation, an employee goes through a structured introduction programme. Individual or Collective: or individually. Another choice is to be made whether new employees are to be inducted in group
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Serial or Disjunctive: Orientation becomes serial when the person relinquishing the post hands over the position to the new incumbent. It becomes disjunctive when the new employee occupies a vacant position with no one to hand him over the position. He learns the prevalent practices and history slowly from his subordinates and superiors on gradual basis. Investiture or Divestiture: This is the final strategic choice which relates to decision regarding allowing the new employees to affect the organisation with his identity/ideas/functional methods or asking him to modify his identity to merge with existing culture of the organisation. This is more applicable to high positions who may have been hired with a view to bring in their experiences and methods of management to the organisation.
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How long should the induction process take? It starts when the job ad is written, continues through the selection process and is not complete until the new team member is comfortable as a full contributor to the organization's goals. The first hour on day one is a critical component - signing on, issuing keys and passwords, explaining no go zones, emergency procedures, meeting the people that you will interact with all have to be done immediately. Until they are done the newcomer is on the payroll, but is not employed. After that it is a matter of just in time training - expanding the content as new duties are undertaken. We only employ new people one at a time - how can we induct them? There are some issues, which cannot wait - they vary according to your situation. Perhaps a buddy system on the job may be the best way to deal with such situations. (This is a system being followed by many US universities receiving lot of foreign students. A local student is given a foreign student as buddy to help in all matters in the initial days.) Other subjects may be incorporated with refresher training for current staff, or handled as participant in an outside program. Perhaps some can wait until there are groups of people who have started in the last few months. This may take some creative thinking, but the answer is quite simple - until the new people are integrated, they are less useful. The mathematics of Induction and orientation is often amazingly simple - not investing time and money to train costs more than training would.
MULTI SKILLING
Definition Multi-Skilling- the ability of an employee to perform more than one function or the cross-training of an employee in several disciplines or tasks. Multi-Skilling is training of an employee to be able to do more than one job with equal dexterity.
Multi-Skilling is immensely beneficial to any organisation. Apart from flexibility to redeploy man power as per changing needs, it also keeps the labour costs low. Many complex jobs require different skills to accomplish though involvement of each skill may be for very short duration. Thus, in absence of multi-skilled workers, the team becomes very large and there is inadequate utilisation of team members. But, if the team members are multiskilled, team size can be kept small and thus the labour cost in minimised. In addition, often job is accomplished much faster with better quality as no time is lost in explaining the job requirements by one team member to another with attendant risks of misunderstanding and rework. Bank tellers are examples of multi-skilling. Result is much faster service. Imagine the state of extension counters of banks at school or college premises which are operated by just one or two employees. Those one or two people perform all the functions which take up to 7 -8 people in bigger branches. Opening the bank, opening new account, attending queries, accepting deposits and dispensing cash, verification of signatures, maintaining account books and many other tasks are done by them. If such multiskilling was not available with the banks, such branches would have become unviable. Even in the larger branches,
CHANGE MANAGEMENT
Change Management is a Critical HR Professional Skill Definitions: 1. 2. The adoption of a new idea or behaviour by an organization. Alterations in People, Structure and Technology
Change has become inevitable due to: (a) (b) (c) (d) (e) Technology Competition Growing customer needs Environment Politics
HRs role in the change process is to help forecast future changes, develop systems and policies for managing human capital before, during & after the change. Change can be classified as follows: Structural Changes Authority Coordination Centralization Technological Changes Processes Methods Equipments People Changes Attitudes Expectations Behaviours
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PROCESS OF CHANGE
Lewins Three-Step Procedure of Change
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Unfreeze present level of behaviour Movement from present to new Refreezing process
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Kotters Change Management Model 1. 2. 3. 4. 5. Unfreeze Establish Sense of Urgency Form Powerful Guiding Coalition Create the Vision Communicate the Vision
RESISTANCE/BARRIERS TO CHANGE
1. 2. 3. Fear of uncertainty or unknown Fear of economic loss Social pressures/peer pressure
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Perceived inconveniences Fear of loss of power Need for new styles/skills/knowledge Resistance from groups Organisational culture Feeling of insecurity Lack of incentives
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MANAGING CHANGE
It involves: 1. 2. 3. 4. 5. 6. 7. Strategic planning and alignment Minimising resistance Maximising acceptance External environment assessment Change of Organisational structure and culture Developing work climate to enhance teamwork, trust and co-operation Whole hearted implementation
Education through communication Participation of affected people from beginning rather than at the end. Making the potential hardliners a member of the committee designing the change. Facilitation through support to people to overcome the blues of change Negotiation Give and take attitude Manipulation co-option Explicit or implicit coercion
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Management: Confront with information; reinforce reality of change; explain what they can do; give them time. 2. Resistance Diagnosis: Anger, blame, depression, resentment, continued lack of productivity.
Management: Listen, acknowledge feelings, be empathetic; help people to say good by to the old; sometimes ritual is important. Offer rewards for change, be optimistic. 3. Exploration Diagnosis: Confusion, chaos; energy; new ideas; lack of focus.
Management: Facilitate brainstorming, planning, help people to see opportunity, create focus through short term wins. 4. Commitment Diagnosis: Enthusiasm & cooperation; people identify with organization; look for new challenges.
Management: Set long term goals; reward those who have changed.
Organizational communication: Clear and prompt communication of policies and decisions can help in keeping the stress within manageable limits. Performance Assessment is another source of anxiety. Clear predefined performance parameters will take the uncertainty out of assessment and also anxiety. Job Redesign, especially when processes change, jobs merging, and relocation happens Employee Counselling Time management programs for employees: In the busy life of today, time management is another source of stress for a lot of employees. Time management programs will allow them to fill in more events into their daily life and reduce stress.
The rate of change in today's world is constantly increasing. Rate of obsolescence and therefore replacement is increasing. New, better, safer and cheaper products are entering the market at constantly decreasing interval. Changes in technology is leading to changes in business models and customer behaviour. True success and longterm prosperity in the new world depends on your ability to adapt to different and constantly changing conditions. But despite all this, basic human nature, that resists change, is still intact. Any attempt to bring change is fiercely resisted. And if the resistance is not well managed, it can be catastrophic for the organisation. Therefore, change management assumes criticality.
PERFORMANCE APPRAISALS
WHAT IS PERFORMANCE APPRAISAL?
Performance Appraisals is the assessment of individuals performance in a systematic way. It is a developmental tool used for all round development of the employee and the organization. The performance is measured against a number of factors. These factors can be divided into two groups.
(a) (b)
General personality such as initiative, leadership qualities, dependability, team spirit, etc. Professional qualities like job knowledge, quality and quantity of output, versatility and so on. Factors vary from organization to organization and job to job. For a soldier, courage and endurance are more important factors. But for the Army General, his tactical abilities are more important. On the other side, a foreman in a factory would never be assessed for his courage. Assessment is often not confined to past performance but checks for potential performance also. The second definition brings in focus behaviour because behaviour affects not only employees performance but even his peers and subordinates. Definition 1: It is a systematic evaluation of an individual with respect to present performance on the job and his potential. Definition 2: It is formal, structured system of measuring/evaluating job related behaviours and outcomes to discover how an employee has performed on the job and how he can perform more effectively in future so that employee, organization and society, all benefits.
Objectives:
1. Promotions 2. Confirmations
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Design an appropriate appraisal program Appraisal program for different levels of employees would be different. Appraise and record the performance
3. Performance Interviews
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Rating Scales: This is simplest and most popular method. Rating scales consist of grading an employees past performance on a scale of say 1 -10. Each of the selected performance attribute is numerically marked and then totalled to arrive at the final figure. Advantages Adaptability, easy to use, low cost, every type of job can be evaluated, large number of employees covered, no formal training required. Disadvantages Raters biases. Checklist: Under this method, checklist of Statements of Traits of employee in the form of Yes or No based questions is prepared. Here, the rater only does the reporting or checking and HR department does the actual evaluation. Advantages economy, ease of administration, limited training required, standardization. Disadvantages Raters biases, use of improper weights by HR Deptt, does not allow rater to give relative ratings. Forced Choice Method: A series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false. The rater is forced to make a choice. HR department does actual assessment. Advantages Absence of personal biases because of forced choice. Disadvantages Statements may not be correctly framed. Forced Distribution Method: One of the problems faced in large organizations is relative assessment tendencies of raters. Some are too lenient and others too severe. This method overcomes that problem. It forces every one to do a comparative rating of all the employees on a predetermined distribution pattern of good to bad. Say 10% employees in Excellent Grade, 20% in Good Grade, 40% in Average Grade, 20% in Below Average Grade and 10% in Unsat grade. The real problem of this method occurs in organizations where there is a tendency to pack certain key departments with all good employees and some other departments with discards and laggards. Relatively good employees of key departments get poor rating and relatively poor employees of laggards departments get good rating.
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40% Average
20% Good
10% Excellent
Critical Incidents Method: It takes cognisance of abnormal incidences only, good or bad. Supervisors record such incidents as and when they occur. Advantages Evaluations are based on actual job behaviours. Ratings are supported by descriptions, thus favouritism is beaten. Feedback is easy and reduces recency biases. Disadvantages Negative incidents may get priority or incidences could be forgotten.
Field Review Method: This method is useful only for senior positions in a large organisation spread over cities and countries. Appraisal is done by someone outside employees own department usually from corporate or HR department. Advantages Useful for managerial level promotions, when comparable information is needed, on employees working at distant locations in different set of conditions. Disadvantages Outsider is generally not familiar with employees work environment, Observation of actual behaviours not possible. 7. Performance Tests & Observations: This is based on the test of knowledge or skills. The tests may be written or an actual presentation of skills. Tests must be reliable and validated to be useful. Advantage Tests only measure potential and not attitude. Actual performance is more a function of attitude of person than potential. Disadvantages Some times costs of test development or administration are high.
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Confidential Reports: Though popular with government departments, its application in industry is not ruled out. Here the report is given in the form of Annual Confidentiality Report (ACR). The system is highly secretive and confidential. Feedback to the assessee is given only in case of an adverse entry. Disadvantage is that it is highly prone to biases and recency effect and ratings can be manipulated because the evaluations are linked to future rewards like promotions, good postings, etc. Essay Method: In this method the rater writes down the employee description in the form of an essay. Advantage It is extremely useful in filing information gaps about the employees that often occur in a betterstructured checklist. Disadvantages It its highly dependent upon the writing skills of rater and most of them are not good writers. Moreover, it is also time consuming and therefore affects full assessment. Also, comparative or relative performance among employees is not clearly demarcated. Accounting Method: Here performance is evaluated from the monetary returns yield to his or her organization. Cost to keep employee, and benefit the organization derives is ascertained. Hence, it is more dependent upon cost and benefit analysis. Evaluation Method (Ranking & Paired Comparisons): These are collection of different methods that compare performance with that of other co-workers. The usual techniques used may be ranking methods and paired comparison method. Ranking Method: Superior ranks his worker based on merit, from best to worst. However how best and why best are not elaborated in this method. It is easy to administer.
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10. Cost
11. Comparative
Paired Comparison Method: In this method each employee is paired with every other employee in the same cadre and then comparative rating done in pairs so formed. The number of comparisons may be calculated with the help of a formula N x (N-1) / 2. The method is too tedious for large departments and often such exact details are not available with rater.
12. Management
By Objectives (MBO): Performance is rated against the achievement of objectives mutually agreed by the employee and the management. Advantage It is direct and accurate and transparent. Disadvantages Applicable only to quantifiable jobs. Short-term goals given preference at the cost of long-term goals etc. 13. Psychological Appraisals: These appraisals are more directed to assess employees potential for future performance rather than the past one. It is done in the form of in-depth interviews, psychological tests, and discussion with supervisors and review of other evaluations. It is more focused on employees emotional, intellectual, and motivational and other personal characteristics affecting his performance. This approach is slow and costly and may be useful for bright young members who may have considerable potential. However quality of these appraisals largely depends upon the skills of psychologists who perform the evaluation.
14. Assessment
Centres: This technique was first developed in USA and UK in 1943. An assessment centre is a central location where managers may come together to have their participation in job related exercises evaluated by trained observers. It is more focused on observation of behaviours across a series of select exercises or work samples. Assessees are requested to participate in in-basket exercises, work groups, computer simulations, role playing and other similar activities which require same attributes for successful performance in actual job.
Disadvantages Concentrates on future performance potential. No assessment of past performance. Costs of employees travelling and lodging, psychologists. Ratings strongly influenced by assessees inter-personal skills. Solid performers may feel suffocated in simulated situations. Advantages Well-conducted assessment centre can achieve better forecasts of future performance and progress than other methods of appraisals. Also reliability, content validity and predictive ability are said to be high in Assessment Centres. The tests also make sure that the wrong people are not hired or promoted. Finally, it clearly defines the criteria for selection and promotion.
15. 360-Degree
Feedback: It is a technique in which performance data/feedback/rating is collected from all sections of people employee interacts in the course of his job like immediate supervisors, team members, customers, peers, subordinates and self with different weightage to each group of raters. This technique has been found to be extremely useful and effective. It is especially useful to measure inter-personal skills, customer satisfaction and team building skills. One of the biggest advantage of this system is that assesssees can not afford to neglect any constituency and has to show all-round performance. However, on the negative side, receiving feedback from multiple sources can be intimidating, threatening, expensive and time consuming.
Purpose of performance evaluation is to make sure that employees goals, employees behaviour and feedback about performance are all linked to the corporate strategy.
7. Use of objectively verifiable data 8. Avoid rating problems like halo effect, central tendency, leniency, severity etc. 9. Consistent Documentations maintained 10. No room for discrimination based on cast, creed, race, religion, region etc.
Problems of Rating:
1. 2. 3. 4. 5. 6. 7. 8.
Leniency & Severity Either too lenient or too severe. All good or all bad. Central Tendency Majority is crowded around average. Halo/Gholem Effect Entire assessment is affected by one or few aspects. Rater Effect Favouritism, stereotyping, hostility, etc, kind of biases. Primacy & Recency Effect Early period or near end period behaviour effects. Perceptual Sets Effects of old beliefs about groups, regions, groups, etc Spill-over Effects Effects of previous appraisal affecting recent appraisal Status Effect High esteemed or low esteemed job bearing on the appraisal.
MOTIVATION THEORIES
Performance is a function of ability and motivation. P = f (A x M) Definition: Motivation is a set of forces that cause internal desire in people to behave in certain ways.
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Identify Individuals Needs Search for ways to satisfy needs Goal & Objectives directed Increased performance Receiving rewards or punishment Reassessment of needs
Motivation improves productivity. Motivation stimulates both participation and production at work
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Motivation helps employees find new ways of doing a job Motivation makes employees quality conscious Motivation improves job related behaviour. Motivation increases attention towards human resources along with physical resources
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CHALLENGES OF MOTIVATION
1. 2. 3. 4. Diverse and changing workforce Rightsizing, Downsizing, Hire-n-Fire, Pay-for-Performance strategies Motives can only be inferred, not seen Dynamic nature of human needs
Physical work could be scientifically studied to determine optimal method of doing of a job. Workers can be made more efficient by telling them how they were to do a job. Workers would accept the above prescription if paid on differentiated piecework basis. Disadvantages Dehumanized workers, treated them as mere factors of production, only stressed on monetary needs, ignored human needs.
Human Relations Model (Elton Mayo): Elton Mayos human relations model, developed through Hawthorne Studies, stressed on social contacts as motivational factor. Greater importance was given to informal groups. However, too much reliance on social contacts to improve productivity was a major drawback.
CONTEMPORARY THEORIES
Content Theories (Maslows Need Hierarchy, Hertzbergs 2-factors, Alderfers ERG, Achievement Motivation Theory) Process Theories (Vrooms expectancy, Adams Equity, Porters Performance and Satisfaction Model) Reinforcement Categories (ERG Theory (Alderfer) Existence - Relatedness - Growth) ERG theory emphasizes more on three broad needs that is Existence, Relatedness and Growth. Its hypothesis is that there may be more than one need operating at the same time. ERG theory further states that when a higher level need is frustrating, the individuals desire to increase lower level needs takes place. Thus, ERG theory
contains frustration-regression dimension. Frustration at higher level need may lead to regression at lower level need. Advantages More consistent with our knowledge of differences among people, it is less restrictive and limiting, it is a valid version of need hierarchy. Disadvantages No clear-cut guideline of individual behaviour patterns, too early to pass a judgment on the overall validity of the theory. Two-Factor Theory (Hertzberg) Fredrick Hertzberg states that the motivation concept is generally driven by two factors of motivators of job satisfactions and hygiene factors about job dissatisfaction. Motivators are generally achievement, recognition, the work itself, responsibility, advancement and growth, which are related to job satisfaction. Hygiene factors deal with external factors like company policy, supervision, administration and working conditions, salary, status, security and interpersonal relations. These factors are known as hygiene factors or job dissatisfiers, job context factors. Advantages Tremendous impact on stimulating thought on motivation at work, increased understanding of role of motivation, specific attention to improve motivational levels, job design technique of job enrichment is contribution of Hertzberg, double dimensions of two factors are easy to interpret and understand. Disadvantages Limited by its methodology, reliability questioned, it focuses more on job satisfaction not on motivation, no overall measure of satisfaction utilized, inconsistent with previous research, productivity factor ignored.
PERSONNEL POLICIES
MEANING OF PERSONNEL POLICY
A Policy is a Plan of Action. It is a statement of intentions committing the management to a general course of action. A Policy may contain philosophy and principles as well. However a policy statement is more specific and commits the management to a definite course of action. Hence Personnel policy is the companys plan of action towards treatment of its employees in matters of pay, benefits, welfare, work, etc. A personnel policy spells out basic needs of the employees. Through personnel policy the personnel department ensure a fair and consistent treatment to all personnel by minimizing favouritism and discrimination. Personnel policy serves as a standard of treatment to all employees. Sound personnel policies help build employee motivation and loyalty. And this happens when personnel policies reflect fair play and justice and help people grow within the organization. Personnel policies are also plans of action to resolve intra-personal, inter-personal and inter-group conflicts.
1. 2. 3. 4. 5. 6. 7. 8.
Personnel policies ensure consistent treatment of all personnel throughout the Personnel policies reflect established principles of fair play and justice.
Minimize Favouritism: Personnel policies help minimize favouritism and discrimination Promote Stability: Personnel policies ensure continuity of action plan even if top management is changed. These policies promote stability. Motivation & Loyalty: Sound Personnel policies help build employee motivation and loyalty. Basic Needs: Personnel policy helps the management to think deeply about basic needs of organization and the employees. Standard of Performance: Personnel policies serve as a standard of performance. Growth: Personnel policies help people grow within the organization.
Social Decisions: Hours of work, welfare measures, work rules, safety, health, sanitation and noise control. Personnel Decisions: Recruitment and selection, promotions and transfers, grievance settlements, work distribution Economic Decisions: Methods of manufacturing, automation, lay offs, shut-downs, mergers and acquisitions and other financial aspects.
3. Complete Control 4. Staff Councils 5. Joint Councils 6. Collective Bargaining 7. Job Enlargement and Enrichment 8. Suggestion Schemes
9. Quality Circles 10. Empowered Teams 11. Total Quality Management 12. Financial Participation
BENEFITS OF PARTICIPATION
1. Gives identity to an employee 2. Motivates employee 3. Self-esteem, job satisfaction and cooperation improves
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ORGANIZATIONAL DOWNSIZING
Downsizing necessarily means reducing work force to an optimal level depending upon the business conditions and organizational needs. It is said that an organization should be rightly staffed ie. It should not be overstaffed and or understaffed. There are broadly following method used to downsize the workforce as mentioned below.
RETRENCHMENT
It means termination of service. It is a termination for reasons other than disciplinary actions, retirement or superannuating, expiry and termination of contract or prolonged illness. Retrenchment compensation and notice for retrenchment are only pre-conditions for retrenchment. If notice and compensation are not given, the worker will not be called as retrenched. Compensation is payable for 15 days wages for every completed year of service besides one months notice or pay in lieu of notice. But employee should have completed at least one year of complete service in order to receive compensation.
LAY OFFS
Lay off is inability of the employer to provide employment to workers due to circumstances beyond his control such as shortage of power, coal, breakdown of machinery, natural calamity etc. It is not a termination of service. Lay off compensation can be claimed as a statutory right by the worker if he has completed one year of continuous service or has worked for 240 days on the surface or 190 days underground in 12 calendar months. Compensation payable is half of the wages.
VRS are announced when there is a huge pool of old aged manpower occupying senior positions amounting to surplus. Many organizations are providing liberal incentives to leave before age of superannuation. VRS in other words is a retirement before the age of retirement.