Mind Map Gallery Human Resource Management
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Human Resource Management
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Edited at 2020-09-28 08:20:29
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Human Resource Management
HRM
A
concept
HRM deals with the human elements of the organization. It combines human energies and human competencies to ensure a competent and committed workforce in an enterprise. It is about managing people at work that harmonizes individual objectives and organizational objectives.The basic aim of HRM is to ensure the right person at the right job at the right time. Hence, HRM is a process concerned with management of human energies and competencies in a changing environment for achieving organizational goals through acquisition, development, utilization and maintenance of competent and committed workforce.
characteristics
Human focus
Management Function
pervasive function
Continuous commitment
Dynamic
System
Mutually-Oriented
objectives
Goal achievement
Personal goals
HRM goals
Organizational goals
societal goals
Goal harmony
Structure maintenance
Productivity improvement
Efficiency promotion
change management
Quality of Work life
functions
Acquisition
Development
Utilization
Maintenance
B
HRM System
A System is a set of interrelated and inter-dependent components that produces an unified result. HRM operates in an open system which has inputs, processing, outputs and feedback mechanism.
Input
Human Energy and competencies
Org Plan
HR Plan
HR Inventory
Job Analysis
Labour market
Processing
Acquision
Development
Utilization
Maintenance
Outputs
Org Related
Goal achievement
quality of worklife
productivity
profits
readiness for change
Employee Related
commitment
competence
congruence
cost-effectiveness
HRM System.jpg
Personnel Mgmt and HRM
Personnel Management is a traditional concept and focuses on manpower planning, recruitment and selection, transfer, promotion, demotion and termination or retirement. Whereas HRM is a modern concept and focuses on all these aspects along with HR development. The difference between these two concepts can be viewed as follows:
Dimension
Personnel Management
HR Management
Focus
People as input in the production process
People as strategic resource in the org system
Scope
Concren of Personnel Dept
Concer of all levels of managers
Function
Routine function
Strategic function
Job Design
Job design based on division of labour
Job design based on team work
Interest
Organization's interest uppermost
harmony in interests of orgs and individuals
Orientation
discipline, direction and control oriented
systems oriented with climate for growth,
performance and involvement
Communication
restricted communication
open communication
Labour Mgmt
piecemeal approach to labour mgmt
collective bargaining
Integrated approach to mgmt of HR
Individualised performance contracts
Means
emphasis on rules, regulations,
procedures, practices
Emphasis on human enery and competencies
Ends
employee satisfaction
achieving goals
Outcome
a) satisfied personnel
b) Increased production
a) committed HRs
b) Increased productivity
c) Readiness to change
d) Increased Profits
e) Quality of work life
C. HR Outcomes
Quality of Work life(QWL)
- Quality of relationship between employees and teh total working environment of the organization. - employees' perception of physicall and psychological well-being at work.
A
Autonomy
Recognition
belonging
intrinsic rewards-job-oriented
extrinsic rewards-money oriented
B. Factors
equity in compensation
safe and healthy work environment
development of human capacities
social relevance
social responsibility
total life space
Productivity
Productivity is the efficiency relationship between input and output.
a) Technology
b) Innovation
c) Learning
d) Motivation
e) Performance-reward linkage
Readiness to change
A) Main reasons for resistance to change are:
a) fear of unknown
b) security
c) misunderstanding
d) Habit
e) poor communication
f) lack okf involvement
g) vested interests
h) social factors
B) HRM brings readiness for change by:
i) education and communication to employees about change
ii) participation and involvement of employees in planning and implementation of change
iii) negotiation and agreement with employees about change
iv) Facilitation and support to employees through training and education
v) giving roles to key employees in designing and implementing change
vi) overcoming resistance to change
D. Challenges of HRM
Globalization
Complexity
Technological change
Less Attached Employees
New HRM Concerns
Management of Change
Learning Organizations
Components
Acquisition
Human Resource Planning
A.
Concept
Human Resource Planning is an integral part of acquisition function of HRM. It relates with predetermining the size(quantity) of future HR needs for the organization. It helps to maintain proper balance between HR shortage and surplus.
Characteristics
Goal directed
checks shortage and surplus of HR
Future oriented
quantitative and qualitative
systems-oriented
forecasts needs
identifies supplies
outcome- right man at the right place at teh right time
time horizon
part of corporate plan
part of acquisition function
Importance of HRP:
Risk and uncertainty reduction
Environmental adaptatin
Improved labour relatins
Acquisition, development, utilization and control of HRs
Change management
Improved efficiency and effectiveness
B.
Concept of Human Resource Strategy
Human resource strategy is concerned with the long-term direction and scope of human resource function of the organization. It is a broad action plan to achieve the objectives of human resource management function. Human resource strategy is based on: * human resource strengths of the organization;* core competencies possessed by human resources;* competitive capabilities of human resources, such as specialised skills, high loyalty, low turnover,* proactive management.
Characteristics
a) Long-term horizon
b) Objectives-oriented
c) Value Addition
d) Environment Adaptation
Relationship between HR Planning and strategic planning
Strategic planning is a road-map that provides future direction and scope. It is a systematic process to analyze the opportunities and threats
Strategic planning
a road-map that provides direction and scope
a systematic process to analyze the opportunities and threats in teh environment and assess organizations internal strngths and weaknesses, and identify opportunities of competitive advantage
encourages managers to look for new opportunities in the long run
Strategic plan is a corporate level plan which :
a) defines org's mission, objectives and strategies-provides long-term road-map.
b) analyzes strengths, weaknesses, opportunities and threats of the orgs (SWOT analysis)
c) analyzes org's resource capabilities
d) matches resources with opportunities of competitive advantages.
HR Plan
a process of predetermining HR needs and choosing actions to satisfy those needs to help achieve org objectives
strong relationship with Strategic planning - an integral part of the corporate plan.
Relationship
a) Follower relationship
HR plan is based on overall objectives and strategies of the org
HR plan is tailored to fit the needs of corporate strategic plan.
b) Partner relatinship
** HR Plan is a partner in the formulation of the corporate strategic plan
** has a strategic relationship in the development of the corporate strategic plan
** HRM gets everybody in the org involved in implementing the strategic plan
Partner relationship aims to:
i) link HR activities with the strategic plan of the org
ii) ensure that HRM issues are properly considered while formulating the strategic plan
iii) ensure effective utilization of HR
iv) achieve a match between org objectives and HRM objectives
v) identify human resource competencies neede to achieve org objectives
vi) develop action plan for HRM
C. Approaches to HR Planning
1) Top down approach(Quantitative approach)
2) Bottom up approach (Qualitative approach)
3) Mixed Approach
D.
HR Planning Process
HRP Process.jpg
1. Assessing Current Human Resources
2. Forecasting HR demand
3. Forecasting HR Supply
4. Matching demand and supply forecasts
5. Preparation of Action plans
Figure
HR Informatin System
Concept
A database device for systematically tracking HR info
designed to collect, analyze, store, retrieve and disseminate info about jobs & employees
- Jobs currently being done : job requirements
People doing those jobs : people requirements
a computer-based system developed from employee and pay-roll records
Contents of HRIS
a) Personal data
- name
- address
- date of birth
- marital status
- children
- next of kin
b) Skills data
• Educational qualifications
• Training recieved
•language spoken
• capabilities
• special skills
c) Position data
• current position
• duties and responsibilities
• occupational history
• various jobs held in other orgs
• work location
d) Compensation data
• current salary
• salary history
• bonus
• overtime payments
• deductions from salary
• tax info
• award received
e) Performance data
• current and past performance appraisal data
Uses of HRIS
a) HR Inventory development
b) Human resource forecast
c) HR development
d) Job analysis
HR Inventory
Concept
• skills inventory of HR currently employed in teh org
• based on HRIS
• source of info for developing HR inventory are the forms completed by employees
Info included in the inventory:
a) name of the employee/age/sex/marital status
b) education qualification of the employee
c) Training undertaken by the employee
d) current position held by the employee
e) performance ratings of the employee
f) prior employment experience of the employee
g) salary level of the employee
h) language spoken by the employee
i) capabilities of the employee in terms of future potential
j) specialized skills of the employee
k) job and location preferences
Analysis of HRIS data provides the following info to facilitate the development of HR Inventory:
a) no. of current employees by departments, service, skills, level, age, etc
b) no. of current employees joining and leaving, including reasons for leaving
c) staff turnover rates, including its trend
d) sickness and absenteeism rates
e) salary bill, including overtime payments
Benefits of HR Inventory
a) enables managers to assess what skills are currently available in the org
b) useful for planning the selection, training, promotion and transfer of employees
c) serves as a decision making tool - helps to make person-job fit
d) serves as a guide for considering opportunities for diversification and expansion of operation
e) provides crucial info for identifying HR related threats to the org
f) supports decision making, coordination and control relating to human resources
Succession Planning
Succession Planning Succession Planning involves forecasting managerial staffing needs, identifying managers with potential for higher responsibilities and making plans for the development of identified managers to meet those needs internally. Succession planning is prepared on the basis of various information on each manager like:a) current performanceb) long-term growth potentialc) promotabilityd) developmental needs (skill deficiencies)
A. Concept
Succession planning is the process of forecasting future demand of managerial human resources. It involves
a) anticipating managerial staffing needs in future for key positions
b) identifying managers with potential for higher responsibilities
c) Making plans for the development of identified managers to meet those needs. potential successors are identified and developed.
It is done for middle and top level managers
Concerned positions are likely to be vacant in the future due to:
º Retirement
º Resignation
º Promotion
º Transfer
º Death
Takes a long term view of the managerial HR needs of the Org
Builds and 'employee bank'
A separate management inventory is generated from HR Inventory for Succession Planning purposes. It includes additional info about the following :
º Current Performance
º Long term growth potential
º Promotability
º Developmental needs (Skills deficiencies)
The Management Succession plan is prepared by matching individual manager's inventory with the list of positions likely to be vacant.
Subtopic 1
If managerial shortages are spotted for vacancies in the mgmt succession plan, candidates are developed through :
º Training and management development
º special assignments
º job rotation
º understudy
º other means
B. Benefits
a) Continuity
b) Career planning
c) Development
d) Talent Management
HR Planning in Nepalese Orgs
Job Design and Analysis
Job Design
Concept
Job design Job design is the process of identifying the current jobs or tasks grouping them in a meaningful way and specifying the methods or technology to perform the job. It is the way in which job tasks are organized into a unit of work. In other words, it is the process of structuring work and specifying the methods to do the works for the achievement of individual and organizational goals.
Task
job
position
occupation
Benefits of Job design
Organizational design
Need balancing
Human resource acquisition
motivation
Person-job fit
harmonious labour relations
better quality of work life
Methods of job design
Scientific Management Method
Herzberg's Method
Job Characteristics Method
Open Socio-Technical Method
Work Team Method
Job Analysis
Concept
Job Analysis It is an important part of acquisition function of HRM. It provides the total summary about the job and jobholder. Job analysis is the foundation of all HRM functions. It is the process of recording activities involved in a job. It is the process by which the information about each activity involved in a job is systematically observed and recorded. At the same time, the qualification and skills needed for doing the job are identified. In other words, job analysis provides informations about jobs currently being done and the knowledge, skills and abilities that individuals need to perform the job adequately. The basic components of job analysis can be seen as
Components
Job description
Overall written summary of task requirements. Profile of a job.It states what a job entails. Outcome of job analysis.
i) Title of the job, level of the job : this identifies the job.
ii) Location of the job : Department, physical location.
iii) Relationships : responsible to and responsible for.
iv) Job summary : describes general nature of the job.
v) Duties and responsibilities : What the employee does.
vi) Authority : right to make decisions and give orders to subordinates.
vii) Accountabilities : Answerability for standards of performance.
viii) Organizational interactions : Both inside and outside the organizations.
Job specification
• Overal written summary of worker requirements.• A profile of human characteristics needed for performing the job.• It states what kind of people should be hired for the job.• It states the minimum acceptable qualifications that the jobholder must possess to perform the job.• It identifies the knowledge, skills and ailities needed to get the job done effectively.
i) Education and Training : years of schooling, type of training
ii) Experience : previous job experience in terms of years and nature of organization.
iii) Physical Health : Good health, emotional stability.
iv) Skills : Communication, computer, driving, report writing, etc.
v) Abilities :
Physical: strength and dexterity, sitting/standing/walking
Mental: Judgement and initiative, getting along with others, decision making, etc.
vi) Maturity: capacity to assume increased responsibilities.
Job Performance standards
It specifies the minimum acceptable level of job standards in terms of quality and quantity.
job evaluation
It rates jobs to establish pay structure.
Purposes:
• It gives information for developing a compensation package.
• It is important for compensation management.
• It serves as the basis for fixing a fair and equitable salary and wage structure.
Purposes of job analysis
1. develop job description, job specifications and job performance standards
2. Conduct job evaluation
3. prepare human resource plan
4. Identify training and development needs
5. Develop performance appraisal system
6. Job design and redesign
Collecting Job Analysis Information (Process)
a) understand purpose of job analysis
b) Select positions to be analyzed
c) Identify information needed
i. work activities
ii. worker-oriented activities
iii. machines and materials used
iv. job performance standards
v. job context
vi. personal attributes
d) Identify sources of information
i) employees
ii) supervisors
iii) independent experts
iv) job review committee
v) nonhuman sources
e) choose methods for collecting information
i. observation method
ii. interview method
iii. questionnaire method
iv. diary method
v. technical conference method
f) Collect needed information and check for accuracy
Job Analysis techniques
Job focused techniques
a) Functional Job Analysis Technique
i) worker functions
ii) Worker fields
iii) Worker products
iv) Worker traits
b) Methods Analysis
This technique provides a description of how to do the job efficiently and effectively.It is applicable to non-managerial jobs.The body movements and procedural steps used to perform the jobs are recorded.It is widely used in orgs where human labour carry repetitive and routine tasks.Methods analysis studies motion at work. They can be: Methods analysis aims at accuracy and efficiency in doing job.
• Balancing movements of two hands
• Opposite and symmetrical directions of hands
• Reduction of muscular efforts
• Doing productive work without idle time
• Location and position of tools and materials for grasping
• Illumination, height, space arrangements at work
c) The Hay Plan
It is used to analyze managerial jobs consisting of numerous tasks. Job analyst interviews the manager on the job.Info about the following are collected:
• Objectives of the job
• Dimensions of the job
• Nature and scope of managerial position
• Accountability
• Supporting staff needs
• Technical, managerial and human relationships required
• Nature of problem solving required
• Nature of control and supervisory requirements
Person/behaviour focused techniques
a) Position Analysis Questionnaire (PAQ)
This was developed by Prof. McCormick.It emphasizes human as well as task and technological factors. It consists of 194 items. They are divided into the following six categories:
i) Information unit : where and how the worker gets information to do the job.
ii) Mental processes : reasoning, planning and decision making involved in a job
iii) Work output : physical activities as well as tools or devices used
iv) Relationships : interpersonal relationships required by the job
v) Other job characteristics: work schedules, work responsibilities, etc
b) Critical Incident Technique
Collecting written description of effective or ineffective worker behavior in critical work situations. They are terms as critical incidents. The critical incidents are categorized and analyzed to get a picture of actual job requirements.
Recruitment, Selection and Socialization
Recruitment
Recruitment: Recruitment brings employer and employees together. It is the process of finding the right people for the right jobs. It concerns with announcing about the job vacancies to the probable candidates and encouraging them to apply for those vacant positions. It prepares a large pool of candidates for job vacancies.
Process:
Locating sources
Internal Sources
Sources
∙ Promotion from within
∙ Transfer
∙ Rehires
∙ job rotation
Advantages of Internal Recruitment
1. Better selection
2. Morale building
3. Adaptability
4. Human resource development
5. Cost-effective
6. Commitment
Disadvantages
1. Limited choice
2. In-breeding
3. Favouritism
4. Limited opportunities
5. Seniority-based
External
Sources
1. Employment exchange
2. Private employment agencies
3. Educational institutions
4. Professional associations
5. Trade unions
6. Unsolicited applicatins
∙ Walk-ins
∙ write ins
∙ electronic
Advantages of external recruiting
1. Qualitative human resources
2. Organizational rejuvenation
3. Environmental adaptation
4. Balanced human resource mix
5. Fairness in recruitment
Disadvantages of external recruiting
1. High cost
2. Poor employee morale
3. Adaptability problems
4. Wrong selection
Attracting qualified candidates to apply
Methods of recruitment
Internal methods:
1. Job posting
Job Posting method:- announcing job openings to all current employees- describes position, location, pay scale and qualifications- asks the interested candidates to apply.
a) Bulletin boards
b) In-house newsletters/newspapers
c) circulars
d) electronic mail
2. Employee referral
Employee referral method: - nomination by superiors- candidates are usually located within the organization- supervisors usually recommend best qualified candidates for the vacant jobs.- informal communication among managers
3. Human resource inventory search
- Search for human resource inventory currently employed in the org- it tells management what individual employees can do- the info included in the inventory about each employee is:
a) Personal : Name, age, sex, marital status
b) Educational qualifications/professional qualifications
c) Training undertaken/special skills
d) Employment experience/ current position held/seniority
e) Performance ratings
f) Salary level/benefit plans
g) Language spoken
h) Capabilities
i) Job and location preferences
External methods
1. Advertising
A. Media:
i) print
ii) visual
iii) audio-visual
B. Adv types:
i) Want ads
ii) blind box ads
2. Educational institution placement
3. Employee referrals
4. Internal search
5. Contact
Selection
Selection: Selection is an integral part of HR acquisition function. It is backed by recruitment. It is the process of choosing right candidate for the work among theapplied candidates. Selection brings the employees and employer together. They select each other.
Selection process
Selection process:Selection process depends n the organizational nature, tradition/culture and the qualities of candidates. However, some common steps or processes are followed while selecting employees in the organizations.
selection process.jpg
1) Application form evaluation
2) Preliminary interview
3) Selection tests
4) Selection interview
5) Reference checks
6) Physical examination
7) Hiring decision
Selection tests
Types
Ability tests
Ability tests determine the ability for job performance.- how well an individual can perform tasks related to the job- test aptitude, achievement and intelligence- generally of objective type with correct answers- possibility of negative markings for wrong answers- time bound
Aptitude tests
Aptitude tests measure the aptitude for the job- determine a candidate's potential learning capacity- deals with future achievement
GMAT
Special aptitude tests
i) Mechanical aptitude tests
ii) psychomotor aptitude tests
iii) Artistic aptitude test
achievement test
Achievement tests measure the past achievement and performance- can be theoretical or practical knowledge and skills which a candidate has learned and claims to know- measures level of proficiency achieved
i) job knowledge test
ii) work sample test
intelligence test
Intelligence tests measure general ability for intellectual performance- indicate mental age- measure IQ (intelligent quotient) in terms of comprehension, reasoning, numbers, memory, etc
IQ.jpg
personality tests
Personality tests measure personality dimensions of a candidate. The dimensions can be:* Assertiveness : Introversion or extroversion. Reserved or sociable in personal relationships.* Emotional stability : self confidence, ability to withstand stress* Openness to experience : predispositions, interests with novelty* Motivation : consistency of efforts* Agreeableness : propensity to defer to others* Conscientiousness : measure of reliability
interest test
Interests test measure a candidate's activity preferences- measure likes and dislikes related to hobbies, recreational activities, group activities and career choices
attitudes test
Attitudes are evaluative judgements concerning objects, people or events.- attitudes tests measure tendencies to act favorable or unfavourable towards objects, people or events- measure personality predispositions
projective test
These tests usually consists of pictures or incomplete items.A candidate is asked to narrate a story of what he sees in pictures or to complete the incompletethey induce teh candidate to put himself into the test situation.
situation tests
They abstract real life situation about the job.The candidates are asked to respond to the situation-specific problems.Their responses to such hypothetical situations are evaluated.
honesty tests
Honesty tests ensure accuracy of information provided by the candidate. Polygraph test is a lie detector test to measure honesty of the candidate. These tests have legal and ethical implications. Candidate's consent is needed. They are being used less and less nowadays.
Reliability and validity of selection process
1) Reliability (consistency
2) Validity (Accuracy)
a) content validity
b) predictive validity
c) Concurrent validity
d) Construct validity
Interviews
Interview process
a) Preparation
b) conduct
c) termination
d) evaluation (review)
Methods of interviews
a) one-on-one interview
b) panel interview
c) group interview
Types of interviews
1. Unstructured interview (non-directive approach)
2. Semi-structured interview (mixed approach)
3. Structured interview (directive approach)
a) Behavioral interview
b) Situational interview
Limitations of interview
1. Snap judgement
2. Contrast effect
3. Halo effect
4. Non-verbal signals
5. Personal biases
6. Pressures
7. Negative factors
8. Lack of knowledge
Differences between recruitment and selection
1) Recruitment takes place before selection and selectin takes place after the recruitment
2) Recruitment prepares a large pool of probable candidates and selection chooses the right candidate from that pool.
3) Recruitment locates potential candidates and selection matches candidates with the job.
4) Recruitment brings employer and employees together and selection brings them face to face through selection tests and interviews.
Socialization
SocializationSocialization is an integral part of HR acquisition function. It means orientation. It consists of sharing norms and values, culture that guide the behaviour of its members. It is a process of adaptation. It provides the dos and don'ts to the new employees in the organization. In other words, it is the process of familiarizing a new employee with the norms and values, system and culture of the organization. Hence, it helps for employee adaptation.
Process of socialization
1. Prearrival stage
• Education and training
• Prior job experiences
• Recruitment process
• Selection process
2. Encounter stage
3. Metamorphosis stage
Subtopic 4
Development
Training and Development
Learning
ConceptLearning is any relatively permanent change in behavioour and attitude that occurs as a result of experience. Organizations need people with learning capacity so that they can adopt to changing environmental forces. In other words, it is a change in behavior through practice, training or experience. It has four basic components:1) Change2) Permanency3) Behavior4) experience
process of learning.jpg
Process of learning
a) Stimulus – brings the desire to react/desire to learn
b) Response – org respond to stimulus
c) Motivation – motivate the employee
d) Reward – better results - reward
Human resource development
Essential features of HRD
a) Human focus
b) Learning experience
c) Time-bound
d) Competence
e) Performance
f) Mechanisms
g) Culture
Importance of HRD (Needs of HR Training and development
1. Improve competencies
2. Enhance effectiveness
3. Foster team-work
4. Facilitate career development
5. Increase job satisfaction
6. Improve decision making
7. Manage change and conflicts
8. Succession planning
9. Environmental adaptation
Training
Training:It is an important part of HRD which enhances capabilities required to improve performance in the present job. It is a learning opportunity which brings permanent positive change in job knowledge, skills, attitudes and behaviour of employees. It increases efficiency and effectiveness on the job. Training is skill-oriented and provided specially to the operational staff normally up to not more than 6 months.
Objectives or Benefits of training
1) Competency development (knowledge, skills, ability, behavior)
2) Productivity improvement (output/performance)
3) Change management
4) Better communication and healthy attitude
5) Improved labour relations
6) Minimizes supervisory burden
7) Career development
Determining training needs
No doubt, training should be given when there is a training need. Normally, training need is determined by focusing on the gap between job requirements and employees capabilities. --> Job requirements -(minus) employee's capabilities = training needs Training needs determination is important because of the following reasons:1) Develop training objective2) Identify training responding problems3) Develop training programs4) evaluate training
Inportance
1) Develop training objective
2) Identify training responding problems
3) Develop training programs
4) evaluate training
Levels of training need determination
1. Organizational level
2. Task level
3. Individual level
Methods of determining training needs
1) Management Audit Method
a) Environmental Assessment
b) Objectives, strategies and structure
2) Task Analysis method
task analysis process.jpg
3) Performance analysis method
a) Organizational Performance analysis
i) Goal achievement
ii) Production performance
iii) Quality control
iv) Sales performance
v) Costs
vi) Absenteeism and labour turnover rates and trends
vii) Accident rates and their frequency
viii) Grievance reports and their reasons
b) Employee performance analysis
i) Employee performance appraisal reviews
ii) Career planning discussions
iii) Exit interviews
iv) Performance tests
4) Supervisory recommendations method
a) Realities of work situation
b) Performance standard for the job
c) Present knowledge and skills of the employees
d) Desired knowledge and skills to perform the job
5) Training needs survey method
a) Individual survey
i) questinnaire
ii) Interview
b) Group Survey
i) focus group discussion
ii) brainstorming
c) Competency survey
i) Delphi technique
ii) Conference
Subtopic 3
Training methods
1. On-the-job training methods
a) Apprenticeship training method
b) Internship training method
c) Job Instruction training method
i) Training preparation
ii) Presentation
iii) Practice
iv) Follow-up
2. Off-the-job training methods
a) Lecture/conference method
b) simulation exercises
i) Computer modelling
ii) Vestibule training
iii) Virtual reality
c) Programmed instruction method
d) Experiential exercises method
- experiential exercises
- role plays
Evaluating training effectiveness
Training is a costly affair and requires huge investment. It is intended to improve current activities and future planning. Thus, training effectiveness should be timely evaluated.
Process of training effectiveness
1. setting standards
2. measuring actual outcomes
3. finding deviations
4. corrective actions
Criteria for evaluating training effectiveness
1. Reaction criteria
2. Learning criteria
3. Behavior criteria
4. Results criteria
Methods for evaluating training effectiveness
1. Observation method
2. Test-retest method
3. Pre-post performance method
4. Experimental-control group method
5. Trainee surveys
6. Cost effective analysis
Management Development
Management Development Management Development is an ongoing educational process to develop managerial potential. It is provided to managerial employees to handle their present and future responsibilities. It is a systematic process of improving managerial performance. It is future-oriented training, focussing on personal growth of the employees. It equips managers for handling dynamic situations, peoples and problems.
Objectives of MD
1. Increase managerial capabilities
2. Enhance managerial potential
3. Foster team-work
4. Facilitate environmental adaptation
5. Improve managerial decision-making
6. Facilitate management succession plan
7. Improve managerial job satisfaction
Methods/techniques of MD
1. On-the-job MD methods
a) Coaching
b) Understudy
c) Job rotation
i) Planned rotation
ii) Situational rotation
iii) Line and staff rotation
d) Planned work assignment
e) internship
2. Off-the-job MD methods
a) Lecture/seminar/education
b) Simulation exercises
i) case study
ii) incident method
iii) role play
iv) management games
c) Behavior modeling
i) model study
ii) role play
iii) reinforcement
iv) skill transfer
d) Sensitivity training
e) Transactional analysis
· The parent : Ego state of authority, superiority, controlling
· The adult : Ego state of objectivity and rationality
· The child : ego state of impulses and emotion
Utilization
Motivation
Motivation It is an important aspect of HRM. It insists people to work willingly at their present positions. It is an art of getting things done willingly by others.There are two types of motivation:1) Extrinsic motivation (Financial or physical motivation)2) Intrinsic Motivation (Mental or psychological motivation)Motivation leads to job satisfaction, low employee turnover and absenteeism rate as well as quality of work life within the organization.
Concept
1. Psychological concept
2. Complex and unpredictable
3. Concerned with individual
4. Continuous process
5. Pervasive
6. Goal-oriented
Types
1) Extrinsic motivation (Financial or physical motivation)
Extrinsic motivation:These are money-related or financial motivation that provides physical satisfaction to employees. Prominent examples might be like, pay increase, increase in benefits and services, good working condition, etc
2) Intrinsic Motivation (Mental or psychological motivation)
Intrinsic Motivation:It is non-financial that provides psychological satisfaction to employees. Prominent examples are challenging job, praise, job recognition, decision-making rights, etc.
a) Job enrichment
b) Participation
c) Management-by-objectives
Importance of Motivation
1. Understand employee behavior
2. Productivity improvement
3. Quality improvement
4. Employee retention
5. Creativity promotion
6. Employee factors
Process of motivation
process of motivation.jpg
1. Unsatisfied needs and motives
2. Tension
3. Action
4. Accomplishment of goal
5. Feedback
Motivation Theories
Need-based
1. Maslow's need heirarchy
1. Physiological needs
2. Safety needs
Lower-level needs : most pressing needs
3. Social needs
4. Esteem needs (Ego needs)
5. Self-actualization needs
Higher-level needs: least pressing needs
2. Herzberg's Theory
Motivation factors
1. Achievement
2. Recognition
3. Advancement
4. The work itself
5. Personal growth
6. responsibility
Hygiene Factors
1. Company policy and administration
2. Supervision
3. Interpersonal relations
4. Salary
5. Job security
6. Personal life
7. Work conditions
8. status
3. McClelland's Theory: Achievement Theory
This theory states that people with high achievement need has the following characteristics :1. Personal responsibility2. Setting moderate goals3. Desire for feedback
1. Need for Achievement(n-Ach)
• Desire to assume personal responsibility to perform difficult tasks and solve difficult problems
• Desire to set difficult goals and take calculated risks
• Desire to perform efficiently and get performance feedback
2. Need for Power (n-Pow)
• Desire to influence and direct others
• Desire to exercise control over others
• Desire for maintaining leader-follower relations
3. Need for Affiliation (n-Aff)
• Desire to be accepted and liked by others
• Desire to conform to wishes of others
• Desire to value the feelings of others
4. ERG Theory
a) Need for Existence
b) Need for Relatedness
c) Need for Growth
Process-based
1. Equity Theory (J. Stacy Adams)
The referents:
• Self-inside
• Self-outside
• Other-inside
• Other-outside
Equity theory of motivation
Examples of job inputs and outcomes
Inequity can be reduced by
1. Changing inputs
2. Changing outcomes
3. Changing perceptions of inputs and outcomes
4. Changing the inputs or outcomes of comparision person
5. Changing the comparision person (referent)
6. Leaving the field
2. Expectancy Theory (Vroom's Theory)
Three relationships
a) Effort – performance relationship (E→P) : Expectancy
b) Performance-Reward relationship (P→O) : Instrumentality
c) Reward-Personal Goal Relationship (V) : Valence
Link between effort, performance and valence
Expectancy Theory of motivation: High level of work motivation requires-
a) Expectancy that effort will lead to effective performance
b) Instrumentality theat effective performance will lead to positive outcomes.
c) Positive value anticipation of the outcomes. The outcomes should be attractive to the individuals.
d) The outcomes satisfy an individual's personal goals.
3. Goal-setting Theory
Motivation and performance
Motivation and performancePerformance means doing a job efficiently and effectively with a minimum degree of disruptions. Motivation impels to perform better for higher productivity. Thus, there is a close positive relationship between motivation and performance. Job performance is the function of employee ability and motivation.Job performance = ability × motivation
Frustration
FrustrationFrustration is normally a result of job stress. Frustration occurs when a motivated drive is blocked before a person reaches to the desired goal. In other words, it is an obstruction to goal-oriented behavior.
Nature of Frustratin
a) Drive
b) Blocking
c) Barriers
- Overt: outward or physical barriers
- Covert: Inward or mental barriers
d) Defense mechanisms
i) Aggression
ii) Withdrawal
iii) Fixation
iv) compromise
Causes of frustration
Normally frustration is caused by inter-personal interactions. However, some causes of frustration might be:
a) Intra-individual complexities
b) Divergent personality (personality clash)
c) Changing job characteristics that cause stress
d) Increasing competition for scarce resources
e) Barrier that block goal attainment : can be overt (outward or physical) or covert (mental or inward)
Job Satisfaction
Job Satisfaction Job satisfaction is the perception or general attitude of an individual towards his/her job. Motivation is the outcome of job satisfaction. It is determined by the discrepancy between what individuals expect to get out of their jobs and what the job actually offers.
Model of job satisfaction
Dimensions
1. Emotional response
2. Expectancy
3. Attitudes
Factors related to job satisfaction
1. Pay
2. Job
3. Promotion
4. Supervision
• Employee-centred
• Participative
• Production-centred
5. Work group
6. Working conditions
Performance Appraisal
Performance Appraisal Performance appraisal is the assessment of employees. It is the assessment of employees' characteristics, performance and behaviour. It is the result of employee's abilities and/plus motivation. In other words, PA is the review of employees' actual performance on the job and his potential for assuming future responsibilities. It explores job relevant strengths and weaknesses of employees.
Process
1. Set performance standards
2. Communicate performance standards to employees
3. Measure actual performance
a. Personal observation
b. Internal reports
c. Special reports
4. Find deviations
5. Discuss appraisal with employees
6. Initiate corrective actions
a) Correct deviations
b) Change standards
c. Training assignment
The performance appraisal process
Uses
1. Performance improvement
2. Reward management
3. Training and development decisions
4. Promotion, transfer, separation decisions
5. Validation of selection tests
6. Supervisory understanding
7. Career and succession planning
8. Policy formulation
Methods
1. Job standard-oriented methods
a) Essay Method
• Strengths and weaknesses
• Job performance during the appraisal period
• Technical effectiveness
• Leadership ability
• Promotional potential
• Training and developmental needs
• Suggestions for improvement
b) Checklist method
i) Simple checklist
Simple checklist for appraising sales clerks
ii) Weighted checklist
c) Forced distribution method(Forced choice method)
d) Critical incident method
e) Graphic ratings scales method
i) Quality and quantity of wok
ii) Job knowledge
iii) Attendance, appearance
iv) Loyalty and dependability
v) Honesty, integrity
vi) Attitude, initiative, cooperation, etc
f) Behaviorally anchored rating scales(BARS)
i. Identify performance dimension
ii. Collect critical incidents
iii. Reclassify incidents
iv. Assign scale values to incidents
2. Comparison oriented
a. Alternate ranking method
b. Paired comparirion method
3. Objective-oriented :
i. Management-by-objectives (MBO)
a) Collaborative goal setting
b) Action planning
c) Performance review
d) Performance evaluation
ii. 360° Evaluation method
360°
Reward Management
Reward managementConcept:Reward management is concerned with designing, implementing and maintaining pay system to improve organizational performance and motivate employees and workers. While managing reward system, seniority, skills and job difficulties etc should be critically considered.Thus, reward consists of a package of pay, benefits, services, incentives and other job-related facilities. Reward management helps the organization in following ways:
Consists of:
a) Pay
b) Benefits
c) Services
d) Job-related rewards
Goals of RM
1) To acquire competent employees
2) Retain effective workforce
3) Motivate employees
4) Cost-effectiveness
5) Ensure equity
a) internal equity
b) external equity
c) Individual equity
6) Legal compliance
Types
a. Intrinsic
i. Interesting work
ii. Respomsibility
iii. Job freedom
iv. Growth opportunities
v. Participation
vi. Diversity of activities
b. Extrinsic
1. Financial
i. Performance-based
• Piecework
• Commission
• Incentive plans
• Bonuses
• Merit pay plans
ii. Membership-based
• Pay
• Benefits and services
2. Non-financial
A. status-based
• Preferred office furnishings and furniture
• Impressive job-title with own business card
• Own secretary
• Chauffer-driven car
B. privilege-based
• Preferred lunch-hours
• Reserved parking spaces
• Working with less supervision
• Desired work assignments
Qualities of effective reward system
1. Importance
2. Equitable
Types
a) internal equity
b) external equity
c) Individual equity
Ways to establish equity
a. Job evaluation
b. Wage surveys
c. Seniority and merit-based
d. Legal compliance
e. Collective bargaining
3. Visibility : ways to increase visibility
a) Well-publicized bonuses
b) Lump sum salary increases
c) Transparency
4. Flexibility
5. Competitive
6. Cost-effective
Compensation Management
Compensation managementCompensation arises from employment which refers to all types of financial rewards provided to employees. It is the major issue between the employers and the employees.Compensation management is concerned with designing, implementing and maintaining an effective pay structure and perks which attracts, retains and motivates competent employees.It can be direct or indirect. Direct compensation consists of pay and incentives. Indirect compensation consists of benefits and services.
Determinants of compensation
While designing or determining compensation system, various internal and external factors are taken into consideration.
A. Internal factors
1. Objectives of compensation
a) Establish fair and equitable pay system
b) Attract and retain competent human resources
c) Improve motivation and morale of employees
d) Control costs by designing the lowest cost pay structure
e) Improve labour relations through collective bargaining on compensations issues with unions
f) Improve image of the organization as a "fair play" employer
g) Comply with legal framework related to compensation
2. Compensation policies
3. Job evaluation
4. Employee productivity
B. External factors
1. Legal consideration
2. Labour market rates
3. Equity considerations
4. Cost of living
5. Labour union pressures
Methods of establishing employee compensation
1. Job analysis
a) Job description
b) Job specification
c) Job performance standards
2. Job evaluation
A. Compensable factors considered
i. Duties and responsibilities of the job
ii. Skills required for the job
iii. Efforts needed for the job
iv. Working conditions of the job
B. Job evaluation methods
i. Job ranking method
ii. Job grading method
iii. Factor comparison method
• Compensable factors eg
- Responsibilities
- Skills
- Mental and physical efforts
- Working condition
• Steps
a) Determine the compensable factors
b) Determine key jobs
c) Apportion the key job's current pay rate
d) Prepare factor comparision chart
iv. Point method
• Steps:
a) Determine the compensable factors
b) Determine levels of factors
c) Allocate points to subfactors and levels
d) Develop point system matrix
3. Compensation surveys
Sources of data:
a) Published surveys
b) Consultants and agencies
c) Advertisements and applicants
d) Informal communication
4. Pricing jobs
Current trends in compensation
1. Competency-based pay
2. Broadbanding
3. Comparable worth
4. Variable pay plans
5. Cafeteria approach
Incentive plans
Incentives are normally financial rewards. These are paid for performance. In other words, incentives are monetary benefits paid to employees in addition for outstanding performance.
1. Individual incentive plans
a) Piecework(Piece-rate)
i. Straight piecework
ii. Different piecework
b) Commission plan
i. Straight commission
ii. Salary plus commission
c) Bonus plan
i. Spot bonus
ii. End-of-year bonus
2. Group incentive plans
a) Piecework(Piece-rate)
b) Commission plan
c) Bonus plan
d) Production plan
3. Organizational incentive plans
a) Productivity gainsharing plan (PG)
b) Profit sharing
- current distribution
- diferred distribution
c) Ownership sharing
i. Installment purchase
ii. Stock option
iii. Gift
d) Suggestion plan
Union influence in compensation programmes
1. Collective bargaining
Pay
Time-off with pay
Income security for lay-off
Cost of living adjustment
2. Compensation structure
3. Industrial actions
Maintenance
Employee Discipline
Employee DisciplineDiscipline means orderliness. It indicates the adherence of rules and regulations, norms and values. Employee discipline is a result of employee behavior.In other words, it is a procedure that corrects or punishes a subordinate when the rule or procedure is violated. It is said that self-discipline is the best discipline. It is essential for industrial peace and prosperity.
Types of disciplinary problems
1. Attendance-related
a) Late for work
b) Absenteeism
c) Leaving work without permission
d) Abuse of leave
e) Habitual tardiness(बहानाबाजी)
2. Job-behaviour-related
a) In-subordination
b) Failure to obey safety rules
c) Defective work
d) Not reporting accidents
e) Drunk on the job
f) Gambling on the job
g) Fighting on the job
h) Drug use on the job
i) Destruction of the property
j) Carrying firearms (ज्वलनशील वस्तु)
3. Dishonesty-related
a) Theft
b) Information falsification
c) Punching time-card of others
d) Hiding defective work
e) Subversive activities
4. Outside activities-related
a) Unauthorized strike
b) Working for competitors
c) Outside criminal activities
d) Wage garnishment
e) Making speeches
General guidelines in administering discipline
1. Disciplinary actions should be corrective
2. Progressive corrections should be made step-by-step
a) Oral warning
b) Written warning
c) Suspension
d) Pay cut
e) Demotion
f) dismissal
3. It should follow the "hot stove" rule – in time
a) The burn is immediate
b) The person touching the stove has warning
c) The effect is consistent
d) The effect is impersonal
4. Allow employee to give explanation
Disciplinary actions
Disciplinary action should be corrective rather than punitive. There are various steps and procedures of managing discipline when indisciplinary actions exist.
a) Oral warning
b) Written warning
c) Suspension
d) Pay cut
e) Demotion
f) dismissal
Labour Relations and Grievances
Labour relations is a dynamic concept which is concerned with managing triangular interrelationships among the workers or trade unions, employers or managers or employers' association and society or government or pressure groups. Labour relations is affected by economic, socio-cultural, political-legal, technological and occupational forces.
Purposes of labour relations
As labour relation is concerned with managing interrelationships among workers, employers and society, its main purposes can be viewed as follows:
1) Harmonious relations
2) Institutionalized relationships
3) Industrial peace
4) Open communication
5) Change management
6) Productivity improvement
7) Environmental adaptation
Actors of industrial relations system
Labour relations triangle
1. Workers : Unions
2. Employers: employers'association
3. Society: Government, pressure groups
Grievances
Grievances are very common in organizations. Grievances are employees' perception of the unfair treatment on the job. It is the feeling of dissatisfaction or disagreements or complaint filed by an employee to the management.
Types
a) Factual
b) Imaginary
c) disguised
Causes
1. interpretation differences
2. management practices
3. labour union practices
4. personality traits
5. organizational culture
6. working conditions
Handling employee grievances
No doubt, grievances should be handled promptly and effectively to smoothen organizational operations. Normally, there are three approaches to grievance handling:
Approaches
1) Open-door policy
2) Legal compliance
3) Following Grievance procedure
1) Grievant to Supervisor
2) Grievant to Department head
3) Grievant to Grievance committee
4) Grievant to Chief executive
5) Grievant to voluntary arbitration
Grievance handling procedure
HRM Environment
Internal Environment
External Environment