IMTS Human Resourse Management (Personal management) by IMTS INSTITUTE

I ns t i t ut eo fMa na g e me nt & Te c hni c a lSt udi e s

500

HUMANRESOURCEMANAGEMENT

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IMTS (ISO 9001-2008 Internationally Certified) PERSONNEL MANAGEMENT

PERSONAL MANAGEMENT

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CONTENTS:

UNIT I

01-57 Personal management – objectives, scope, importance – evolution of HRM – role

of HR manager – challenges faced by HRM – trends in HRM – Indian scenario and HRM – strategic human resource management UNIT – V: PERSONNEL MANAGEMENT

58-79

Responsibility of human resource management –Selection procedure – Training of workers – Apprentice training – On the job training and vestibule school training – Job evaluation and merit rating – objectives and importance- wages and salary administration – Components of wages – Wage fixation – Type of wage payment – Halsey’s 50% plan, Rowan’s plan and Emerson’s efficiency plan – Problems.

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Unit: 1 PERSONNEL MANAGEMENT INTRODUCTION

An organization is made up of four resources, namely men, material, money and machinery. Of these, the first one id living one, i.e. human resource and other three are non-living i.e.non human. It is the human/people that make use of non human resources. Hence, people are the most significant resources in an organization. It is man who makes all the difference in organizations. L.F.Urwick had remarked that “business houses are made or broken in the long run not by markets or capitals, patents or equipments, but by men”. According to Peter F.Drucker, “ man, of all the resources available to man, can grow and develop.”

The main objective of this Unit is to present a perspective for human capital management in the Indian context. Accordingly the meaning, objectives, scope and functions become the subject matter of this Unit. Before we define HRM, it seems pertinent to first define the term “human resources.” In common parlance, human resources mean people. OR Personnel means the persons employed. Personnel management is the management of people employed.

Organization may be a manufacturing firm, a business concern, an insurance company, a governmental agency, social organizations, hospital, a university and even families. It may be small or large, simple or complex. An Organization is a human grouping in which work is done for the accomplishment of some specific goals, or missions.

What do you mean by personnel management or define the term personnel management or write short notes on personnel management? Introduction: 

1 + 1 makes an organisation i.e., where there are two or more persons there is in effect an organisation. The concept of organisation is its HR or people at work. HR have been defined as “from the national point of view, the knowledge skills creative abilities, talents, aptitudes and obtained in the population, where of form the individual enterprise point of view, they represent the total of the inherent abilities, acquired knowledge and skills as exemplified in the talents and aptitudes of its employees.



A human factor refers to “a whole consisting of interrelated, interdependent and interacting physiological. Psychological, sociological and ethical components. “The management traditions,

PERSONAL MANAGEMENT

sentiments and behaviour, they differ widely also as groups and are subject to many and varied influences. Peoples are responsive they feel, think and act therefore; they cannot be operated like a machine or shifted and altered like a template in a room layout. They therefore, need a tactful handling by management personnel. 

Taking a look at this world of human beings is a rewarding experience. Contrasts abound in this world. Contrasts notwithstanding, one thing is certain – it is people who make an organization a success or allow it to be handed over to the board of industrial and financial reconstruction ( BIFR). If HLL, INFOSYS, RIL, BAJAJ AUTO, ICICI

have become star performers and HMT, mysore lamps, NGEC are on

their way to the BFIR. It evidently shows how important human resources are to the life and health of the organization. 

Who are these so-called patrons?



How to attract them?



How to retain them?



How to motivate them?

These questions need in-depth study and personnel management tries to study these and other related questions.Humanware





Orgoware



Infoware

Workers, supervisors, managers and other employees directly involved in the organization form ‘humanware’.



Materials, machine, money, infrastructure and organization together form ‘orgoware’



Knowledge, skill, technology etc,. Are covered by ‘infoware’



When we look at closely, both the orgoware and infoware heavily depends on human beings. We can see ‘n’ number of examples in this aspect.

 

“focus on people” is the main reason for the success of Japanese management. “as success today depends on “competitive advantage” of the organization, it is both obtained and sustained through knowledge and skill of its people”

Definition of personnel management or personnel administration or define the term personnel management or personnel administration or write short notes on personnel management or personnel administration: 

“It is that phase of management which deals with the effective control and use of man power as distinguished from other sources of power”.



“The management of HR is viewed as a system in which participants week to attain both individual and group goal”. Its objective is to understand what has happened and is happening and to be prepared for what will happen in the area of working relationships between the management and

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managers personnel (or man power) administration is concerned with the managerial (plant, organization, stuff, direct and count) and operative (procurement, development, maintenance and utilization) functions with a view to attaining the organisation goals economically and effectively and meeting the individual and social goals. 

“PM is the recruitment, selection, development, utilization of and accommodation to human resources by organizations. The HR of an organisation consist of all individuals regardless of their vote, who are engaged in any of the organizational activities”.



“The PM is the process of attracting, holding and motivating people involving all managers – line and staff”. (+) Group concept – Create Group relationships within an organisation, to enable each person to make his maximum personal contribution to the organisation as a member of the working group, to achieve these things through respect for human personality and the well being of the individual.

MEANING & DEFINITION OF HUMAN RESOURCE MANAGEMENT

Human Resource Management means: “The management of human resources is viewed as a system in which participants seeks to attain both individuals of group goals”.

If an analysis is made of this definition it will be seen that personnel management involves procedures and practices through which human resources are managed (i.e. organized and directed) towards the attainment of the individual, social and organizational goals. By controlling and effectively using manpower resources, management tries to produce goods and services for the society.

Definitions: a Human Resource Management involves all management decisions and practices that directly affect or influence the people, or human resources, who work for the Organization. An organization’s employees enable an Organization to achieve its goals, and the management of these human resources is critical to an organization’s success. 2b According to Process Systems View Human Resource Management means: “ Human Resource Management is the systematic planning, development, and control of a network of inter related process affecting and involving all members of an Organization”.

DEFINITIONS:  “Human Resource Management effectively describes the process of planning and directing the application, development and utilization of human resources in employment” –Dale Yoder.

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 “Human Resource Management is that part of management process which is primarily concerned with the human constituents of an organization”. – E.F.L.Brech.  “The personal function is concerned with the procurement, development, compensation, integration and maintenance of the personnel of an organization for the purpose of contributing towards the accomplishment of that organization’s major goals or objectives” - Flippo  “It is the field of management which has to do with planning, organizing, directing and controlling the various operative functions of procuring, developing, maintaining and utilizing a labour force for the attainment of the company’s objectives”- Prof. Jucius  “It is that part of the management function which is concerned with people at work and with their relationship within an enterprise. Its aim is to bring together and develop into an effective organization of the men and women who make up an enterprise and having regard to the well-being of an individual and of working groups, to enable to make their best contribution to its success” – The British Institute of Personal Management.

Key Terms used in this definition: Process: Process is an identifiable flow of interrelated events moving towards some goal, consequence and end. An example of the human resource management is the staffing process, a flow of events that results in the continuous filling of positions within the Organization. These events include such activities as recruiting applicants, making hiring decisions, and managing career transitions such as transfers and promotions.  Flow: Flow implies movement through time and in the direction of a result;  Inter-related: implies interaction within the process and between events;  Goal and Consequence (Purpose): suggest a human objective;  Events: are activities, happenings or change;  End: implies some conclusion or consequence that may not necessarily be sought or planned by man.

System: System is a particular set of procedures or devices designed to control a process in a predictable way. For e.g. Staffing System of an Organization.

As a process it includes:  Human Resource Planning;  Job and Work Design;  Staffing;  Training and Development;  Performance Appraisal and Review;

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 Compensation and Reward;  Employee protection and representation;  Organization Improvement. “Human Resource Management is the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and societal objectives are accomplished". Edward Flippo This definition is a comprehensive and covers both the management functions and the operative functions. The purpose of all these functions is to assist in the accomplishment of basic objectives.

General Definition: “Personnel Management is the recruitment, selection, development, utilization of and accommodation to human resources by organizations. The human resources of an organization consists of all individuals regardless of their role, who are engaged in any of the organizations activities”.

Three aspects of Human Resource Management:  Welfare Aspect: concerned with working conditions and amenities such as canteens, crèches, housing, personal problems of workers, schools and recreations;  Labor or Personnel Aspect: concerned with recruitment, placement of employees, remuneration, promotion, incentives, productivity etc.;  Industrial Relations Aspect: concerned with trade union negotiations, settlement of industrial disputes, joint consultation and collective bargaining. Difference between Personnel Management and Human Resource Management Dimensions

HRM

Nature of relations

Pluralist

Unitarist or neo-unitarist

Perception of conflict

Conflict is institutionalized

Conflict is pathological

Contract

Emphasis on compliance

Beyond contract commitment

Role of procedures

Rules dominated

Culture and values dominated

Planning perspective

Adhoc, reactive

Integrated, proactive

Acceptability of unions

Acceptable

Non desirable

Level of trust

Low

High

Key relation

Labour management

Customer

Management’s Role

Transactional

Transformational

Basis of job design

Division of labour

Teams

Key people

PM/IR specialist

Line people and general mangers

Skills acquisition

Training and Development

Learning Organization

Reward Management

Standardized job evaluation

Performance related

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Characteristics of Human Resource Management 1. Human Resource Management is concerned with managing people at work. It covers all levels of personnel, including blue collared employees and white collared employees; 2. It is concerned with employees, both as individuals as well as group; 3. Human Resource Management is concerned with helping the employees to develop their potentialities and capacities to the maximum possible extent, so that they may derive great satisfaction from their jobs; 4. It is a major part of the general management function and has roots and branches extending throughout and beyond each Organization; 5. Human Resource Management is of a continuous nature; 6. Human Resource Management attempts at getting the willing co-operation of the people for the attainment of the desired goals.

HRM can be of full value to an Organization only when it is consistently throughout out and applied at all levels and to all management functions; in corporate policies, in the systems, procedures and in employment practices, etc. this integrative aspect of HRM is, therefore, of vital importance.

Employee Relations

Personnel Administration

HRM

Industrial Relations

Fig, 1

EXPLAIN THE PECULIAR CHARACTERISTICS OF HUMAN RESOURCE MANAGEMENT? NATURE / CHARACTERISTICS /FEATURES 1. Integral part of management: Human Resource Management is inherent in the process of management. This function is performed by all the managersâ&#x20AC;&#x2122; throughout the organization rather than by the personnel department only. If a manager is to get the best of his people, he must undertake the basic responsibility of selecting people who will work under him. He must also take interest in training and motivating the employees and of appraising their performance for improving their quality.

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2. Pervasive Function: Personnel Management is a pervasive function of management. It is performed by all managers at various levels in the organization. Every manager from managing director to the foreman is required to perform the personnel function on a continuous basis. It is not a responsibility that a manager can leave completely to someone else. However, he may secure advice and help in managing people from expects who have special competence in personal management and industrial relations. 3. It is universally relevant: Human Resource Management is relevant not just for a business organization alone. It has universal relevance. Effective management of the human resource is a task to be performed right from the household level to a government. The very fact that the Govt. of India has created a separate ministry called the â&#x20AC;&#x2DC;ministry of Human Resource Managementâ&#x20AC;&#x2122; proves this point. 4. It is goal-oriented: The goal of Human Resource Management is to make the best use of the available manpower resource of the organization. Only then it will be possible to achieve the ultimate goal of the organization, i.e., the targeted level of projects in the case of a business organization. 5. Systematic Approach in handling the manpower resource: Human Resource Management lays emphasis on a systematic approach to the task of managing the human resources of an organization. This is done by the performance of two sets of functions i.e. managerial function and operations functions. 6. On-going Activity: Human Resource Management is not something that is required only at a particular pout of time. It is a continuous affair. As long as manpower resource is needed in any place, the importance of its management will be felt 7. Development of manpower resource: Human Resource Development is part of Human Resource Management. Development of the manpower resource through training programmes is as important as its procurement needless to say, in an organization it is only the Human Resource that be trained to acquire greater skills. 8. It is a science as well as an Art: The subject Human Resource Management is both science and art. As a social science, it relies on experiments and observations for the sake of making inferences. As an art, it calls for certain special skills on the part of the manger for the effective handling of the manpower resource. 9. Relatively new: When compared with subjects like psychology, sociology, economics, marketing, financial management etc. Human Resource Management is relatively a new subject. It was once popularly known by the name personnel management. After it became Human Resource Management, its scope widened.

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Objectives of Human Resource Management Objectives are pre-determined ends or goals at which individual or group activity in an Organization is aimed. Objectives can be divided in to two parts: Primary Objectives:  HRM’s main goal is the creation of a workforce with the ability and motivation to accomplish the basic organizational goals;  They relate to the satisfaction of the personal objectives of the members of an Organization through monetary and non monetary devices;  They relate to the satisfaction of community and social objectives, such as serving the customers honestly, promoting a higher standard of living in the community, bringing comfort and happiness to the society, protecting women and children and providing for aged personnel;  To utilize human resource effectively;  To establish and maintain a productive and self respecting relationship among all members of an Organization;  To establish and maintain an adequate organizational structure; 

To bring about maximum individual development of the members of an Organization;

 to maintain a high morale and better human relations inside an Organization by sustaining and improving the conditions which have been established so that employees may stick to their jobs for a longer period;

Secondary Objectives:  The secondary objectives aim at achieving the primary objectives economically, efficiently and effectively.

Objectives of Human Resource Management: 1. To make an optimum utilization of the human resource of the organization: By this we mean that every that every individual in the enterprise shall work to his potentials only then the amount spent on human resource will be justified.

2. To ensure that the organization has the required number staff: The objective here is to do away with the problem of both surplus and shortage of labour. Surplus labour would mean higher labour cost and inefficiency. Shortage of labour would mean that the organization is ill-equipped to cope with the volume of work. 3. To establish and maintain a sound organization structure: Human Resource Management aims at dividing the organization tasks into different functions, jobs and positions. The authority and responsibility associated with each such position is clearly defined.

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4. To reconcile and organizational goals: There is often a clash between individual goal and organizational goal. Human Resource Management aims at integrating personal and organizational goals guiding the employees to work with a sense of involvement, commitment and loyalty towards the enterprise. 5. To provide scope for the development of personnel: Human Resource Management provides scope for the employees to enrich their job knowledge and skill by undergoing relevant training progrmmes. Employees need to update themselves in tune with requirements.

6. To ensure that the employees have higher job satisfaction: Human Resource Management ensures a higher level of jobs satisfaction among employees by providing them the kind of work environment that is equitable remuneration and social security benefits like provident fund, quality, insurance etc. 7. To provide scope of participation in decision making: Under Human Resource Management, employees are involved in the process of division making. The decisions binding on employees are made with their participation. In other words, management does not take unilateral decisions. As employees are involved in decision – making, they extend their support to the implementation of any decision and do not show resistance.

Functions of Human Resource Management

According to different authors HRM functions can be divided in to different categories. Some of the categories are as follows: 1. General and Specific functions; 2. Personnel administration and Industrial relations functions. 3. Managerial and Operative functions

General and Specific functions: General Functions:  To conduct personnel research;  To assist in the programmes of personnel administration;  To develop appraisal plans;  To launch education and training programmes;  To develop a competent work force;  To establish and administer varied personnel services delegated to personnel department. Specific Functions:  Employment;

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 Safety;  Wage and salary;  Benefit Schemes;  Community relations and  Advice and counseling the employees.

Personnel Administration and Industrial Relations Functions:

Personnel Administration: These functions relate to the function of managing people from the lower to the upper level of the Organization and embraces policy determination as well as implementation of policies by the personnel at the lower levels;

Industrial Relations Functions: These functions relate to interactions between the management and the representatives of the unions. Such functions involve all activities of employer employee relationship, such as Organization of the union members, negotiations of contracts, collective bargaining, grievance handling, disciplinary actions, arbitration etc- the purpose of all these being to prevent conflict between two parties.

Managerial and Operative Functions; Managerial Functions: Management is Personnel administration. It is the development of the people and not the direction of the things. Managing people is the heart and essence of being a manager. Thus, a Human Resource Manager is a manager and as such he performs the basic functions of management.

Inputs Human and Economic Resources interacting with environment al changes

Planning Determination of short to long range plans to accomplish Organization objectives

Organizing Development of the Orgn. Structure according to predetermined plans

Feedback of significant deviations from planned performance

Directing Stimulation and motivation of Organization personnel according to predetermined plans

Controlling Assurance that directed action is taking place according to predetermined plans. Outputs Goods and services needed by the organization customers

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(Managerial Functions)

Fig: 2

Operative Functions: These functions are concerned with the activities specifically dealing with procuring, developing, compensating and maintaining an efficient work force. These functions are also known as service functions.  Procurement Function;  Development function;  Compensating function;  Integrating function;  Maintenance function.

Managerial Functions:  Planning: Is a predetermined course of action. Planning is a hard job, for it involves the ability to think, to predict, to analyze and to control the actions of its personnel and to cope with a complex, dynamic fluid environment. They bridge the gap from where we are to where we want to go. The two important features of planning are research and forecasting. The task of forecasting personnel needs in relation to changes in production or seasonal variations and the leveling out of differences in the production extremely important, both for employees and for management. Therefore, planning and decision making has to be undertaken much in advance of an action so that unforeseen or anticipated problems and events may be properly handled. This as also stressed by the saying: “ Good managers make things happen”.  Organizing: An Organization is a means to an end. It is essential to carry out the determined course of action. Complex relationships exist between the specialized departments and the general departments as many top managers are seeking the advice of personnel manager. Thus, Organization establishes relationship among the employees so that they can collectively contribute to the attainment of company goals.  Directing: Direction is an important managerial function in building sound industrial relations besides securing employee contributions. Co-ordination deals with the task of blending efforts in order to ensure successful attainment of an objective. The personnel manager has to coordinate various managers at different levels as far as personnel functions are concerned. Personnel management

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function should also be coordinated with other functions of management like management of money, machine, and material. ď ś Controlling: Controlling involves checking, verifying and comparing of the actualize with the standards, identification of deviations if any and correcting of identified deviations. Thus, action and operation are adjusted to predetermined plans and standards through control.

Fig. 3: Functions of Personnel Office/ Personnel Management.

Functions of Personnel Office

Managerial Functions

Planning Organizing

Employment HRD

Directing

Operative Functions

Controlling

Compensation

Human Relations, Placement.

H R P; Performance- Job Evaluation; Motivation; Recruitment; Appraisal; Selection;

Training;

Induction;

Mgmt. Dev.

Wage & Salary

Morale;

Quality- Circles. Orgn.Change & Dev. Fringe Benefits.

Career Planning

Operative Functions: The operative functions of human Resource Management are related to specific activities of personnel management e.g. employment, development, compensation & Relations. All these functions are interacted by managerial functions. ď&#x201A; Employment: Employment is concerned with securing and employing the people possessing required kind and level of human resources necessary to achieve the organizational objectives. It covers the functions such as job analysis, human resource planning, recruitment, selection, placement, induction and internal mobility.

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 Human Resource Development: It is the process of improving, molding and changing the skills, knowledge, creative ability, aptitude, attitude, values, commitment etc. based on present and future job and organizational requirements. This function includes Performance Appraisal, Training, Management Development, Career Planning and Development, Internal Mobility (Promotion, Demotion), Organizational Development.  Compensation: It is the process of providing adequate, equitable and fair remuneration to the employees. It includes job evaluation, wage and salary administration, incentives, bonus, fringe benefits, social security measures etc.  Human Relations: Practicing various human resource policies and programmes Loire employment, development and compensation and interaction among employees create a sense of relationship between the individual worker and management, among workers and trade unions and management. It is the process of interaction among human beings. Human relations is an area of management in integrating people in to work situation in a way that motivates them to work together productively, cooperatively and with economic, psychological and social satisfaction. Human Resource Management Environment HR manager can’t perform his job in a vacuum as a number of environmental factors affect the HRM. In fact, these factors influence the Organization through human resources. Environment (with special reference to Human Resource Management): means the totality of all factors, which influence both the Organization and HRM sub system.

Fig. 4: Environmental Scanning of HRM Technological Marketing

Government & Legal

Customers

Orgn. Politics

HRM

Production

Political

Trade Unions

Finance

Orgn. Structure

Economic

Social & Religious

The environment furnishes the macro context and the Organization is the micro unit. The external environment is comprised of those factors, which affect an organization’s human resources from outside the Organization. Important among them are:

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Economic;



Social;



Political;



Governmental;



Legal;



Technological;



Manpower in the country;



Tradition and culture;



Customers;



Other organizations;



Trade Unions in other organizations.

Internal Environment: The internal environment also affects the job of a personnel manager. The internal environmental factors include Organization objectives, policies, organizational structure, and the functional areas of the Organization with which the personnel manager works continuously like finance, marketing and production. Impact of internal environment factors is profound as they frequently and closely interact with HRM function in an Organization.

External Environment: The influence of external environment on HRM is also equally important, though the severity is comparatively less. People are essentially self-managing. In other words, while people manage other resources, themselves manage personnel. People themselves decide about the nature, time, and place of their employment. And people react to the changing conditions and to the techniques of management unlike money, material and machine. The changes includes in the external environment are: 

Technological obsolescence;



Cultural and social changes;



Changes in the policies of govt.;



Politics and the like.

With the result, the work environment changes thereby affecting their productivity level.

Considering the complexities and the challenges in the HRM now and in near future management has to develop sophisticated techniques and efficient specialists to among the personnel on sound lines

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Functional Areas/ Scope of Human Resource Management 1. Organizational planning, development and task specification; 2. Staffing and Employment; 3. Training and Development; 4. Compensation, Wage and Salary administration; 5. Motivation and Incentives; 6. Employee services and Benefits; 7. Employee records; 8. Labor and Industrial Relations; 9. Personnel Research and Personnel Audit.

EXPLAIN THE SCOPE OF PERSONNEL MANAGEMENT: 1. Recruitment, selection and job determination for the employees. 2. To adopt suitable wage system. 3. Education and training of employees. 4. Job analysis, job distribution and job evaluation 5. Labour welfare activities. 6. Personnel accounts 7. Public relations 8. Personnel planning and education.

SCOPE OF HUMAN RESOURCE MANAGEMENT: 1. Welfare Aspects of Employees: Functions associated with the welfare aspect of labour are connected with the conditions of work and the amenities such as provision of canteens, crĂ¨ches, housing, transport, medical, education, recreational and cultural facilities and health and safety provisions. The personnel manger must be fully conversant wish the provisions of the Factories Act, 1948 and other labour laws Minimum Wages Act, ESI Act, Maternity Act etc. 2. Personnel Aspect of Employees: Functions associated with the labour or personnel aspect include activities concerned with manpower planning, recruitment, selection, placement, induction, promotion, transfer, demotion, separation, lay-out, retrenchment, training and development, wages and salary, administration etc.,

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3. Industrial Relational Aspects of employees: Industrial or labour relations aspect is concerned with the company’s relations with the employees as a group and includes union management relations, joint consultation, negotiating and collective bargaining processes, discretionary action, grievance handling and settlement etc. The reorganization of human values as the basis of personnel management helps in achieving and maintaining good industrial relations.

Dale Yoder has specified the scope of Human Resource Management in terms of the following functions. 

Management policy:

Setting

general

and

specific

management

policy

for

organizational relationship and establishing and maintaining a reliable organization for leadership and cooperation. 

Employees

Development:

Collective

bargaining,

contract

negotiation,

contract

administration and grievance handling. 

Staffing the organization: Staffing the organization, finding, getting and handling prescribed types and number of workers.



Motivation of Employees: Adding in the self-development of employees at all levels providing opportunities for personal development and growth as used as for acquiring requisite skills and expensive.



Incentives to Employees: Developing and maintaining motivation for workers by providing incentives.



Role of manpower: Receiving and auditing manpower management in the organization.



Industrial Research: Industrial relations research carrying out studies designed to explain employees behaviour and thereby affecting improvements in manpower management.

EXPLAIN THE IMPORTANCE OF HUMAN RESOURCE MANAGEMENT: 1. Social Significance: a. Maintaining the gap between job available and job seekers according to their qualification b. Providing suitable environment and psychological satisfaction. c.

Maximum utilization resources

d. Eliminate waste or improper use of HR e. Helping people make their own decisions that are in their interest. 2. Professional significance: By providing a healthy working environment it promotes team work in the employees. This it does by a. Maintaining the dignity of the employee as a human being b. Providing maximum opportunities for personal development

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Provides healthy relationship between different workgroups

d. Improving the employeeâ&#x20AC;&#x2122;s working skill and capacity. e. Correct the work errors of wrong posting and proper reallocation of work. 3. Significance for individual enterprises: a. Creating positive attitude among the employees through effective motivation. b. Utilizing effectively the available HR c.

Securing willing co-operation of the employees for achieving goals of the enterprise and fulfilling their own social and other psychological needs of recognition, love, affection, belongingness, esteem and self-actualization. Employee capabilities must continuously be acquired; sharpened and used any organisation will

provide proper HRM. a. To improve the capabilities of an individual b. To develop team sprit of an individual and the department c.

To obtain necessary co-operation from the employees to promote organizational effectiveness.

Importance / Essentials of Human Resource Management: 1. It helps the organization to identify correctly its manpower needs: The manpower needs of an organizational will have to be correctly determined. As amount spent on human resource is deemed an investment, it is necessary to determine the number of men required for doing the various jobs in the enterprise accurately so that investment in human resource will be at the optimum level. 2. It ensures that the organization does not suffer from either surplus or shortage of manpower: It is further important that the number of persons employed in the organization at any given point of time should neither be more or less than what is actually required. Human Resource Management helps to do away with the problem of both surplus and shortage of labour. 3. It facilitates the selection of the right man for the right job: Human Resource Management

ensures the selection of the right man for the right job. It

recognizes the fact that if a candidate is overqualified for the job, he will not have a positive attitude towards work and on the other hand, if he is under qualified, he cannot carry out the task assigned. 4. It focuses attention on the development of the skill of every individual in order to make him upto-date: Every person in the workplace has to update his knowledge and skill in tune with the development in work methods. Human Resource Management takes note of the fact that a person who does not update himself will become outdated. 5. It recognizes the need for the appraisal of employeeâ&#x20AC;&#x2122;s performance: Performance appraisal is an in integral part of Human Resource Management

unless the

performance of the employees is periodically reviewed; it will not be possible for the employer to know their level of efficiency.

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6. It considers the need to provide incentives to the employees performing well: Employees, who are very good in their work, need inducement in the form of incentives. These incentives may be financial as well as non-financial. Human Resource Management does recognize the fact that if good workers are not suitably rewarded, they may lose interest in their work. 7. It gives utmost importance to securing a favorable employee attitude: The attitude of the employees towards work is a crucial factor determining performance. Human Resource Management makes an earnest attempt to secure a favorable employees attitude. This is done by providing the employees with proper working environment. Counseling is provided to those employees who undergo stress. 8. It emphases the need for good human relation in every workplace: Human Resource Management places emphasis on cordial human relations. Conflicts are unavoidable in a workplace. But such conflicts shall not be allowed to damage inter-personnel relationships. 9. It provides scope for collective bargaining: The employer shall encourage the employees to form a union the workplace. This will give the employees the benefit of collective bargaining. In the absence of such a union, if any individual has certain grievances, he may find it difficult to represent the same to the management in his personal capacity.

Explain the basis or concept of personnel management: a. Managing people to “Rank and file employees at work”. Blue collared (craftsmen, foremen, operatives and labourers) and white collared employees (professional, technical and kindered workers, marketers, officials, proprietors, clerical workers and sales workers) b. Group and individual co-ordination, make them to involve in a group. c.

Helping the employees to develop their potentialities and capabilities to the maximum possible extent, so that they may derive great satisfaction from their job.

d. Recruitment selection and accommodate them. e. It is like water from a faucet continuous nature. f.

PERSONNEL MANAGEMENT attempts at getting the willing co-operation of the people for the attainment of the desired goal, “esprit de crops”.

EXPLAIN DIFFERENT TERMINOLOGY USED FOR PERSONNEL MANAGEMENT :  Different terms such as ‘personnel or staff management, ‘personnel administration’, labour management, employee relations, manpower management, individual relations etc, have been used interchangeably.  This phrase ‘staff executive’ in charge of PERSONNEL MANAGEMENT personnel administration has been variously designated, reflecting changes, in status and functions, executives designated as personnel

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officer, personnel director, personnel man, personnel executive, staff and personnel manager, employment manager, labour welfare officer, labour liaison officer, labour officer or chief industrial relations officer.  In India he is called ‘LWO’ personnel officer, Empl. Relation officer, ERO and so on.

EVOLUTION OF PERSONNEL MANAGEMENT: 

Development of scientific management and social awakening at the end of 19 century were the main

causes of growth of personnel management. Personnel management was originated in U.S.A at the end th

of 19 century. 

The term is popular, by the name labour welfare, labour management, and industrial relations.

1. Early philosophy (Before 1900): Robert Owen 1813 – he wrote book – a new view of society – stressed upon IR, Improvement of working conditions, operative labour management – they treat personnel management as a science. The view of Owen is wage incentives and labour welfare very slow progress only.

2. Efficiency and productivity movement (1900 – 1920) These two decades, scientific management movement, development of labour unions and the establishment of industrial corporations etc., size of industrial units increased – technology of job analysis, job evaluation, merit ranking and standard costing were adopted. Though of F. W. Taylor scientific management was greatly accepted.

3. Period of welfarism and Industrial Psychology (1920 – 1930) Up to 1925 personnel management is a staff line activity – many units scientific management was apposed by workers – because of this industrial psychology was developed. This is helped in the development of many new technologies such as psychological tests, scientific interview, and training on scientific basis; non-financial incentives personnel management becomes profession here.

4. Period of human relations in industries (1930 – 50) Prof. Elton Mayo – Hawthorne experiments – find HR and important they increase the production than any other physical resources. The experiment proved that the workers treated as human being. The social, psychological and moral feelings of workers are identified – fast development of personnel management many new technologies in selection, training trade union in flourished and good working conditions were provided.

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5. Modern period (From 1950 up to current time) Personnel management becomes profession – new consents like behavioural science and social system. The concept of industrial democracy has been adopted. Large number of industrial houses is welcomed – new responsibilities upon personnel management are assigned. Personnel management is wider and wider.

The development of personnel management occurred due to the unsatisfactory recruitment policies and labour dissatisfaction. 1. In 1920 – Industrial disputes arises – producers and the government – recognised trade unions – many great industrialists appointed labour officers and took interests in labour welfare works. 2. In 1931 – When royal commission on labour recommended the appointment of labour officers to take care the recruitment and settle the grievances. 3. In 1934 – Bombay industrial development settlement act was passed under this act ‘LWO’ appointed whom responsible for the settlement of labour disputes. 4. In 1939 – ‘Government Labour commission, recommended the appointment of labour officers, a few labour acts were passed, to regulate the working hours of labour and the improvement in their working conditions. 5. In 1941 – A tripartite labour conference was held in which the representative of workers, producers and government took part, object is implement the labour rules for the settlement of disputes and to advice a system for industrial cases. 6. After independence – Several laws were enacted, 1948 – factories act, 1946 – Central Labour Investigation committee, this act made it compulsory that a ‘LOW’ show appointed in every factory employing 500 or more workers. 7. The government made wide ranging plans like improving the training, institutes were started, a. Xavier institute of labour relations (XLRI) b. Indian institute of personnel administration, Calcutta c.

Indian Labour Management institute Bombay

d. Institute of Industrial Relation – Bangalore,

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e. Federation of all India Labour Welfare Office, Delhi f.

National Productivity Councils, Delhi.

EVOLUTION OF HRM The philosophy of managing human being as a concept was found developed in ancient literatures in general and in India philosophy in particular. Till 1930’s it was not felt necessary to have a separate discipline of management called personnel mamagement. Infact, this job was assigned as part of the factory manager. Since 1930’s Certain developments took place which greatly contributed to the evolution & growth of HRM. These developments are given below.   

Scientific Management Labour Movements. Government Regulations.

CONTRIBUTION OF SCIENTIFIC MANAGEMENT Period

Concept/Development

Impact

Upto 1900

Nine inventions(1780)

Technological devt, Mass production concept, prosperity to employers Misery to employees.

Industrial Revolution (1870)

1900-1940

1940-1970

Scientific Management by Frederick Taylor USA –1911

Industrial psychology by HugoMusterbeemg USA-1913

Universal Impact, Scientific approach on standards, work strudy, productivity, human engineering etc.

Emphasis on morale, motivation, working environment, etc. Extrinsic & Intrinsic motivation and Human relations.

Hawthorne studies by prof. Elton Mayo(1932)

Emphsis on feeling, attitude & sentiments of workers, stress on emotions rather than logic, Approved shifted from scientific to human relation.

Improved recruitment selection, and testing methods. Management development

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22 programme.

Behavioural approach,Motivation Theories of Maslow Herzberg Mc Greger & Others

Experience from war & Training.

Improved recruitment, selection and testing methods. Management devlopment programme. 

Modern ERA after 1970

  

Innovation & creativity Human capital Empowerment.



Focus on employees & overall development and satisfaction of unique expectation. Human capital is more important than finance capital & market standing Improvement is promoted through development of competence, interest & commitments.

CONTRIBUTION OF LABOUR MOVEMENTS Period

year

Major events.

Upto 1900

1890

Bombay mill association was formed in india.

1900-1940

1935-40

Sport of activities of trade union movements in India.

1940-70

1940

Resignation of congress govt. on protest of war efforts. Strikes and lockouts and Labour unrest due to reign of terror unleashed by British Govt. on Indian Lobours.

1940-45

Second world war period, achieved some of the labour’s long standing demands like DA, adjudication Machinery etc. All types of employees including Govt servants form union.

1948

Modern period

 Reversal of trend in which employees exploited the employers.  Because of outside influence, union become pawns in the hands of political parties.  Weakness due to multiple unionism to exploit unity.

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CONTRIBUTIONS BY GOVERNMENT ORGANISATIONS

WRITE SHORT NOTES ON - EVOLUTION STAGES – PERSONNEL MANAGEMENT : 1. Industrial revolution era – relationship between employer and employee is stated as – ‘Slawer”, “Guild system” “serflom” 2. Era of trade unionism 3. Era of social responsibility feeling – Robert Owen – 1913 4. Scientific management era – 1900 – 1930 (1856 – 1955) 5. Industrial psychological era. 6. The behavioural era – 1955 (Abraham maslow – 1954 – motivation theory) 7. Personnel specialist and welfare era.

PERIOD

YEAR

CONTRIBUTIONS

1900-40

1926

Indian TU Act protected TU activists.

1931

Royal commission of Labour in India. Made recommandation on hire, wages, working hours prohibition of child labour

1940-1970

1948 1952 1956

Modern period after 1970

1976 1975 1976 1976

Employees state insurance act Employees provident fund act Industrial dispute act

Factories act Payment of wages act Equal remuneration act Workers compensation act.

ROLE OF HR PRACTITIONER / MANAGER The coordination and integration of activities in an organization just not happen, it has to be worked out. People tend to head off in different directions- to go their own sweet way. They will jot necessarily cooperate with one another. Thus, to begin with, the HR manager should have three main objectives in mind: 1. To gain the commitment and cooperation of all the members in his work group; 2. To get the group into action to achieve agreed objectives; 3. To make the best use of the skills, energies and talents of all the members.

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In the modern era, the personnel manager typically performs a variety of the roles, such as a role of a conscience, of a counselor, a mediator, a company spokesman, a problem solver and a change agent. He performs many roles as per needs of the situation. Such as: 4. The conscience role is that of humanitarian who reminds the management of its moral and ethical obligations to its employees; 5. The personnel manager plays the role of a counselor to whom the employees frequently go for consultation and with whom they discuss their marital, health, mental, physical and career problems; 6. As a mediator, he plays the role of a peacemaker, offering to settle the disputes that may arise among individuals or groups. He acts a liaison and communicating link between an individual and a group and between labour and management; 7. The personnel a manger has always been a frequent spokesman for or representative of the company because he has a better overall picture of his company’s operation, since he deals intimately with many key organizational activities and functions; 8. The personnel manager also acts as a problem solver with respect to the issues that involves human resources management and overall long range organizational planning; 9. He works as a change agent within the organization because he is best suited to introduce and implement major institutional changes. He takes initiative for installing organizational development programmes and convinces the top management of their need. It is he who alerts the top management regarding managerial obsolescence in his organization; 10. The personnel manager plays many other roles as well. Any matter which need someone’s attention and which no body wants to deal with is, often handled by the personnel department. Such activities may be peripheral but important and crucial to the efficient and effective operation of an organization. It has been now fully recognized that the basic role of the personnel manager if “the management of the manpower resources.” Such management is concerned with “leadership” both in-group and individual relationship, and labour management relations. It effectively describes the process of planning, and directing the application, development and utilization is now considered as one of the four main functions, viz. finance, production, marketing, and human relations. The ideal personnel manager is not a “decision maker” but a counselor not “collector of responsibilities” but an “advisor” to help the management make more reliable personnel decisions. In any organization it is these “line man” who determine the “personnel climate” for the entire organization. If the personnel man can meet the challenge of “staff role” he would make the effective contribution to industry.

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Personnel Role

Welfare Role

Advisory:

advising

Research

personnel

and

management

effective use of human

organizational

resources

problems

Manpower

Administrative Role

Fire Fighting/Legal Role

Time keeping

Grievance handling

planning:

Managing services-

Salary

Recruitment, selection

canteens, transport

administration

etc.

Training development

and

Group

dynamics:

line

group

counseling,

man

and

wage

Settlement of disputes

Human engineering: man

Handling

disciplinary

machine relationship

actions

Collective bargaining

Joint consultation

motivation, leadership, communication etc.

Measurement

and

assessment individual

and

group

behavior -

Table 2 WHAT ARE ALL THE QUALITIES REQUIRED BY THE PERSONNEL MANAGER: 1.

Philosophy, which seeks for the underlying explanations of human nature of conduct.

Ethics, which is concerned with moral and value judgements.

Logic, which concerned with the rules and principles of reasoning.

Mathematics, which tells the exact relations between quantities and magnitudes and systems.

Sociology, which deals with the forms and functions of human goods.

Anthropology, which concerned with physical and environmental relations to peoples social and cultural patterns.

Medicine, which in all its branches is concerned with the well being of the people.

History, which seek to record and explain past events.

Economics, whose interests are in optimizing choices among competing use of limited resources.

10. Management, which is concerned with a skilful leadership of organizational groups. 11. Political science, which in the best sense, is concerned with how people are governed how they govern themselves.

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EXPLAIN THE ROLE OF PERSONNEL MANAGER? 1. Humanitarian who reminds the management of its moral and ethical obligations to its employees. 2. Counseling. 3. As a media for 4. Frequent spokesman or representative of company 5. Problem solver 6. Create and implement the change 7. He helps line managers learn to detect and solve their problems 8. Other roles like effective operation of an organisation.

EXPLAIN THE QUALITIES OF A HUMAN RESOURCE MANAGER. To be successful on his job, the

Human Resource Manager shall hold an MBA (with

specialization in Human Resource Management or Personnel Management) obtained from one of the Indian Institutes of Management (IIMS) or its equivalent. Knowledge of organization theory, behavioral science and labour laws is absolutely necessary for such a person. Apart from the academic qualifications mentioned above, the Human Resource manager is expected to have certain other qualities to be successful in his work.

1. He should possess good communication skills. He should be fluent in English, Hindi and a couple of Indian Languages. Only then, he will be able to convey his ideas emphatically. 2. He should be a creative person and only then he will be able to conceive novel ideas to solve complex Human Resource Management problems. 3. He should be able to analyse any problem objectively. Only then he will be able to arrive at a practical solution. 4. He should be able to inspire, induce and motivate he employees to put in their best efforts. For this, the manger must be a motivated person himself. 5. He should have leadership qualities without which he will is not be able to lead a team of subordinate staff and guide them properly. 6. He should not be an irritable person. He should be friendly and approachable. 7. He should be fair and honest in his dealings. Only then the subordinate staff will repose faith in him. 8. H should have ability to make decisions independently. 9. He should be curious always. Only then he will be able to a dynamic person

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10. He should have good memory to be able to recollect anything. He should not give scope for others to prompt him to art.

IS (HRM) HUMAN RESOURCE MANAGEMENT A PROFESSION? EXPLAIN. Human Resource Management as a profession fulfils he following criteria of a profession. 1. An organized body of Knowledge: Human Resource Management like medicine, law and engineering has well-developed concepts, principles theories and practices. A Human Resource Management professional cannot perform his tasks if he is not familiar with these concepts, principles etc. 2. Educational qualification: A person who wants to become a medical or engineering professional has to posses the minimum qualification and training prescribed for it. In the same manner, a person aspiring to be a Human Resource Management professional has to fulfill the educational qualification norms. In India, a person holding on MBA (with specialization in Human Resource Management or Personnel Management) obtained from one of the Indian Institute of Management (IIMS) or its equivalent is considered a Human Resource Management professional.

3. Regulatory Authority: The medical council and the bar council act as the regulatory authority for medical and law professionals as far as Human Resource Management is concerned, the Govt. of India has created a separate Ministry called the Ministry of Human Resource Department that is empowered to regulate the activities of any Human Resource Management institution. The National Institute of Personnel Management prescribes certain obligation for the Human Resource Management professionals. 4. Code of conduct: Every member of a profession has to observe certain ethical standards laid down for that profession. The code of conduct lays down ethical norms, which the members shall observe while dealing with their clients. Such a code of conduct exists for Human Resource Management professionals too in the manner it exists for medical, law and other professionals. Any member found to be violating the code of conduct might be disqualified from functioning as professional.

5. Surviving the commodity: A professionalâ&#x20AC;&#x2122;s main obligation is to serve the society. He must not think in terms of personal gain always although his profession gives ample scope to earn. So, Human Resource Management has come to be recognized as a profession in the way medical, law and engineering are recognized. A profession is different from an occupation. A profession need not work for salary under an employer. He can have his own clients and get his remuneration from them directly.

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On the other hand a person who is employed as a clerk or as an officer or in some other capacity in a bank or in some other organization has to work for monthly salary under an employer. Same is true with regard to a profession who is employed in a college or university. He gets his salary at the end of the moth and is an employee of the Institution where he is employed. A professional can be an employer for many. A doctor, for e.g. may have his own clinic and employ nursing staff, lab technicians and others.

DISTINGUISH BETWEEN MANAGEMENT AND ADMINISTRATION.

S.NO

ADMINISTRATION

MANAGEMENT

It is concerned with determining the major

It is concerned with the doing or execution

policies

function, the policies and decisions to be

and

objectives

the

business

enterprise.

implemented being those laid down by the administration. It refers o employees of the enterprise.

Decision making is mainly influenced by the

The scope for its decision-making is limited.

force of public opinion, governmental, policies,

At the most, decisions are influenced by the

as also social and religious factors.

values, opinions and beliefs of managers.

It is that part of management which is

It is a general name for the total process of

concerned with the determination and caring

executive control in industry or commerce. It

out of the procedures by which the progress

khas responsibility for the effective planning

of activities is evaluated and controlled as per

and execution of various operations of the

plans.

enterprise.

It refers to owners of the enterprise also by

It refers to employees of the enterprise who,

way of return on the capital invested by them;

for working within the broad policy guidelines

receive profits by way of dividends.

laid down by the administration, are paid remuneration in the form of salaries and sometimes, also a share to the profits.

Evaluating HR Function

Organizations can promote human excellence by offering a potential site for the flowering most forms of human excellence. Within an organization, if there is meritocracy, people compete for promotion and other rewards on the basis of good work rather than on the basis of â&#x20AC;&#x153;pull.â&#x20AC;? Recognition and rewards for creative ideas, discoveries, inventions, innovations etc. promote creative excellence. The human resource development movement in industry is aimed at facilitating organizationally useful individual growth and development. The more an organization promotes individual or team excellence, the more the

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organization itself is likely to excel because the work of any organization is dependent on the work of its individual members and employee groups.

The human factor across all organizations comprises three basic elements:

1. The people themselves who work in the organization; the skills and capabilities they possess and their attitude towards the company; 2. The management style prevalent in the organization, which usually stems from the top. The style may be aggressive, authoritarian, democratic or laissez faire and each type has a different impact on the way people work as individuals or in groups; 3. The organizational climate i.e. the work atmosphere in the company, as determined by the degree of interpersonal cooperation, the types of conflict resolution, the amount of trustworthiness, the prevalent organizational politics etc.; The quality of HRM practices prevalent in a particular organization can be rated by scrutinizing the following factors:

Organization Climate: 1. Do people feel they are giving enough responsibility? 2. Do people know what is expected of them in the shape of objectives and standards of performance? 3. Do people see themselves being fairly rewarded for their work and feel that promotion policies are fair? 4. Do the employees feel that they belong to a worthwhile company and are valuable members of working teams? 5. Is there adequate feedback to people on their performance, whether it is good, bad or indifferent? 6. Is there sufficient to challenge in their jobs? 7. Are people given enough support by their managers or supervisors in the shape of guidance or help?

Type of Management Style:

1. Does it tend to be Autocratic? 2. Does it tend to be Task centered or people centered? 3. Do managers tend to be distant or cold or approachable and friendly? 4. Do managers tend to be hard or soft on people? 5. Thus, an amalgamation of all the factors throws some light as an indicator of the quality of HRM practiced in an organization.

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EXPLAIN THE PRESENT SITUATION OF PERSONNEL MANAGEMENT IN INDIA OR WRITE SHORT NOTES ON PERSONNEL MANAGEMENT IN INDIA: 1. Automatic machines and equipments. 2. Traditional outlook of industrialists 3. Lack of harmonious labour – management relations 4. Lack of organized labour unions 5. Traditional outlook of workers 6. Excess of labour force 7. Selfish policy of union leaders. WHO IS PERSONNEL MANAGER AND EXPLAIN THE DEPARTMENTAL RESPONSIBILITY (DEPARTMENT) 1. Employment department 2. Training department 3. Wages and salaries department 4. Employees development department 5. Labour welfare department 6. Labour relations department

PERSONNEL POLICIES The dictionary meaning of “policy” is a “planned action” and that “plan” is a policy. Policy making and planning are, therefore, synonymous. “A policy,” says Flippo, “is a man made rule of pre-determined course of action that is established to guide the performance of work toward the organization objective it is a type of standing plan that serves to guide subordinates in the execution of their tasks.” According to Calhoon, personnel polices constitute guides to action. They furnish the general standards or base on which decisions are reached. Their genesis lies in an organization’s values, philosophy, concepts and principles.” “Policies are statements of the organization over all purpose and its objective in the various areas with which its operation are concerned –personnel finance production marketing and so on.”

AIMS AND OBJECTIVE OF PERSONNEL POLICIES

The aims of personnel policies should be/are: 1. To enable an organization to fulfill or carry out the main objective which have been laid down as the desirable minima of general employment policy;

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2. To ensure that its employees are informed of these items of policy and to secure their cooperation for their attainment; 3. To provide such condition of employment and produces as will enable all the employees to develop a sincere sense of unity with the enterprise and to carry out their duties in the most willing and effective manner; 4. To provide an adequate, competent and trained personnel for all levels and types of management; and motivated them; 5. To protect the common interest of all the parties and recognize the role of trade union in the organization. 6. To provide for a consultative participation by employee in the management of an organization and the framing of condition for this participation, which, however shall not take place in technical, financial or trading policy; 7. To provide an efficient consultative service which aims at creating mutual faith among those who work in the enterprise; ď&#x201A;ˇ

By developing management leadership which aims is bold and imaginative and guide by moral values;

ď&#x201A;ˇ

By effectively delegating the human relation aspects of personnel function of line managers by enforcing discipline on the basis of cooperative understanding and humane application of rules and regulation; and

ď&#x201A;ˇ

By providing for a happy relationship at all levels

To establish the conditions for mutual confidence and avoid

confusion misunderstanding

between the management and the workers, by developing suggestion plans, joint management councils, work committees, etc., and by performance appraisal discussion; 9. To provide security of employment to workers so that may not be distracted by the uncertainties of their future; 10. To provide an opportunity for growth within the organization to person who are willing to learn and undergo training to improve their future prospects. 11. To provide for the payment of fair an adequate wages and salary to the workers so that their healthy cooperation may be ensure for efficient working of the undertaking; 12. To recognize the work and accomplishment of the employees by offering non-monetary incentives rewards; 13. To create a sense of responsibility on the part of those in authority, for the claims of employees as human being, who should be guaranteed protection of their fundamental rights and offered enough scope for developing their potential.

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ESSENTIAL CHARACTERSTICS OF A SOUND PERSONNEL POLICY The main features of a good personnel policy are:

1. The statement of any policy should be definite, positive, clear and easily understood by anyone in the organization so that what it proposes to achieve is evident. 2. It should be written in order to preserve it against loss to stimulate careful consideration before its formulation and to prevent the promulgation of numerous, differing and temporary oral policies from multiple sources. 3. It must be reasonably stable but not rigid, i.e., it should be periodically revised, evaluated, assessed and revised and should, therefore, be in tune with the challenge of changes in the environment and should have built in resilience for adjustment from time to time. 4. It must be supplementary to the over-all policy of an organization, for if departmental policy were made such as to come into conflict and violet the company policy, it would be tantamount to insubordination. Peter drucker has observed: â&#x20AC;&#x153;the policies of an enterprise have to be balanced with the kind of reputation an enterprise wants to build up with special reference to the social and human needs, objectives and value.â&#x20AC;? 5. It should be indicate that the management knows that workers prefer to deal with the management on an individual basis. 6. It should recognize the desire of many workers for recognition as groups in many of their relationships. 7. It should be formulated with due regard for the interests of all the concerned parties-the employers, the employees and the public community. 8. It should be the result of a careful analysis of al the available facts. 9. It must provide a two-way communication system between the management and the employees so that the latter are kept informed of the latest developments. In the organization and the employers are aware of the action and reaction of employees on particular issues. 10. It should be consistent with public policy, i.e., with the spirit rather than the letter of the law, so that the intensions and settled course of an organization are appreciated in terms of public opinion from the standpoint of national, economic and social justice for the employees and for the community at large. 11. All interested parties should generally know it. 12. It must have not only the support of the management but also the co-operation of employees at the shop floor level and in the office. 13. Before evolving such a policy, trade unions should be consulted in 14. Matters of industrial relations; and the role of trade unions should be restricted only to this area. 15. It should be progressive and enlightened, and must be consistent with professional practice and philosophy.

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16. It must make a measurable impact, which can be evaluate and qualified for the guidance of all concerned, especially in the field of the three â&#x20AC;&#x2DC;Râ&#x20AC;&#x2122;s of personnel management viz., recruitment, retainment and retirement. 17. It should be uniform throughout the organization, though, in the light of local conditions, slight variation may be permitted in specific policies relating to staffing compensation, benefits and services. 18. It should have a sound base in appropriate theory and should be translable into practices, terms and peculiarities of every department of an enterprise. 19. Except in rare cases, policies should not prescribed detailed procedures.

Challenges faced by HRM Major challenges of HRM The major challenges of HRM are: 1. Outsourcing HR activities 2. BPO and Call Centres 3. To balance work-life 4. To make HR activities ethical 5. To manage diversity 6. Attitude towards unions 7. Globalisation 8. Organisational restructuring 9. Changing demographics of work-force 10. Changed employee expectations

1. Outsourcing HR Activities Increasingly many large firms are getting their HR activities done by outside suppliers and contractors. Employee hiring, training and development and maintenance of statutory records are the usual functions contracted out to outsiders. P&G has signed a 10 year, $400 million deal with IBM to handle employee services. IBM will support almost 98,000 of P&G employees in nearly 80 countries with services such as payroll processing, benefits administration, compensation, planning, expatriate and relocation services, and travel and expense management.

2. BPO AND CALL CENTRES Business Process Outsourcing (BPO) Several MNCs are increasingly unbundling or vertical deintegrating their activities. Put in simple language, they have begun outsourcing (also called business process outsourcing, or BPO) activities formerly performed in-house and concentrating their energies on a few functions. Outsourcing involves withdrawing from certain stages/activities and relying on outside vendors to supply the needed products, support services, or functional activities.

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3. Call Centres-Challenges

If an external company develops the software for a company, if someone else does advertising for the company’s products and if some other firm administers benefits for the company’s employees, it is BPO. Similarly, if some other company makes calls to the company’s customers or receives their calls, it is call centre business – a part of BPO itself. But because of its high visibility, call centre business is treated independently. 4. HOW TO BALANCE WORK WITH LIFE

Balancing work and life assumes relevance when both husband and wife are employed. Travails of a working housewife are more than a working husband, as the opening case to this Unit shows. Work- life balance is becoming a major challenge to HR manager as more women are taking up jobs to add to finances of their families or to become careerists. In India, workingwomen now account for 15 percent of the total urban female population of 150 million. The number is likely to increase as more number of girls is coming out of colleges and universities with degrees in their hands. 5. MAKING HR ACTIVITIES ETHICAL The HR manager’s role in building an ethical climate in the organisation is significant. The HR manager needs to carefully screen applications for jobs, weed out those who are prone to indulge in misdemeanors and hire those who can build a value driven organisation. Hiring ethically strong employees is only the beginning. The HR manager needs to institute; mechanisms to ensure ethical conduct of employees. 6. MANAGING DIVERSITY Employees of organizations are becoming increasingly heterogeneous. As days go by, diversity is going to be an important issue for the HR manager for the following reasons: -force is increasing -force. -force is increasing

becoming common -requisite for career progression to many top-level managerial positions. 7. GLOBALIZATION

How to face competition from MNCs is a worry for Indian firms. As globalization spreads, more foreign firms are entering Indian market and the challenge before domestic firms is going to be much more severe in the years to come. Many Indian firms are compelled to think globally, something which is difficult for managers who were accustomed to operate in vast sheltered markets with minimal or no competition either from domestic or foreign firms. The Internet is adding fuel to globalization and most

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large MNCs are setting up green field projects in India or entering into joint ventures with local companies. 8. Corporate Reorganizations It is difficult to imagine circumstances that pose a greater challenge for HRM than reorganizations resulting from acquisitions, mergers, divestitures or take-over threats. The reorganizations will have impact on organizational levels and employees. Employees experience anxiety and uncertainty about their places in a new organisation. The strength of unionized staff of Shaw Wallace, for example, has risen considerably in 1995, thanks to the acquisition of 14 distilleries. Executive strength has also gone up by 20 per cent in one year. As a trimming exercise, the company decided to retrench as many as 400 executives. The employees of both the ‘taking over’ as well as the ‘taken over’companies will have anxious moments because of Fear of loss of jobs

Trends in HRM Job changes, including new roles and assignments Transfers to new geographic locations Changes in remuneration and benefits Changes in career possibilities Changes in organizational power, status, and prestige Staff changes, including new peers, supervisors, and Changes in corporate culture and loss of identity in the company.

CHANGING DEMOGRAPHICS OF WORKFORCE The major challenge that has resulted from changing workforce demographics concerns dual career couples, couples where both partners are actively pursuing professional careers. Organizations have been accustomed to using job moves and physical relocation as an important means of developing talent. Men or women moving through organizational ranks to upper-level positions need experience in a variety of roles in different organizational units. Frequently, physical relocation is required.

The

increasing number of dual-career professionals limits individual flexibility in accepting such assignments and may hinder organizational flexibility in acquiring and developing talent.

CHANGED EMPLOYEE EXPECTATIONS With the changes in workforce demographics, employee expectations and attitudes also have shifted. Traditional allurements such as job security, attractive remuneration, housing and the like do not attract and motivate today’s workforce. Employees demand empowerment and expect equality with the management. Previous notions on managerial authority are giving way to employee influence and involvement alongwith mechanisms for

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upward communication and due process.

LOSS OF JOY AND PLEASURE The HR manager of today is an unfortunate individual. He/she has been denied the joy and pleasure of hiring and managing thousands of employees under one roof. Which HR manager of today claims to have experienced the real HR challenges of yester years? Which HR manager today has received bricks, encountered menacing body language of irate workers, faced strikes, saw lockouts, witnessed vehicles being burnt, executives being lynched, saw graffiti on the walls in which his own name is dragged and maligned by militant union leaders? The HR manager of today is a poor legacy of the one lived in the past. With regard to the HR function, the focus in the coming years would be on the following lines: ral of business,

-sensitive management styles and practices, Managing the changing work diversification – change of priorities,

-machine interface,

ndividual effectiveness through performance feedback and counseling.

INDIAN SCENARIO AND HRM POSITION OF PERSONNEL MANAGEMENT IN INDIA: Despite the recent increase in his status, the personnel officer on indian scene continues to present a kaleidoscopic picture of his multiple role structure. Due to this diversity and elasticity of his he is called by several names: “buffer zone between labour and management”, social worker in the industrial setting and above all ‘staff advisor ‘ in the organisation and ‘executive’ in the personnel and welfare spheres. In the current tradition of India, the personnel officers is not invested with necessary authority to implement the decisions effectively and therfore commands relatively less respect from workers and trade unions as well as from technical and other managerial staff of the organisation. Factors which have impeded the growth and progress of personnel function in india can be summarised as follows

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1. By creating welfare officers under factories act 1948, the government has done more harm than good because these statutory officers have not won the support of line management in their organisation. 2. A large number of industrial relations laws have resulted in a legalistic approach to labour relations and has made personnel executives dependent on lawyers. 3. The job results which cannot be measured in concrete terms has proved frustrating for many personnel executives for evaluating their success. 4. The job of personnel officer is considered as fire fighting function only to head off union troubles. 5. Many personnel executives consider line managers as inferior due to academic qualifications which results in hostility. 6. Personnel executives have generally short range perspective and remain insensitive to the organizations internal needs. 7. The human relations approach t personnel management has not yet taken a firm foothold in our country. The reasons are 1. Highly authoritarian culture. 2. Abundance of cheap labour. 3. Weak and unenlightened labour movement 4. Technological backwardness 5. Traditional management.

HUMAN RESOURCE PLANNING CHARACTERISTICS/FEATURES /NATURE OF HUMAN RESOURCE PLANNING/ MANPOWER PANNING? MEANING: Human resource planning, in simple terms, is the process of determining the manpower needs of an enterprise so that it is possible to fill-up any vacancy as and when it arises, such a plan eliminates the risk of surplus or shortage of staff at any time. DEFINITION: 

“Human resource or manpower planning is the process of determining the manpower requirements and the means for meeting those requirements in order to carry out the integrated plan of the organization”. – Coleman



“Human Resource Planning is a process of determining and assuming that the organization will have an adequate number of qualified persons, available at the proper times, performing jobs which meet the needs of the enterprise and which provide satisfaction for the individuals involved”. – Dale S. Beach.



“Human Resource Planning is an integrated approach to performing the planning aspects of the personal function in order to have a sufficient supply of adequately developed and motivated people

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to perform the duties and tasks required to meet organized objectives and satisfy the individual needs and goals of organizational membersâ&#x20AC;? â&#x20AC;&#x201C; Leon C. Megginson. It is clear from the above definitions that human resource planning is concerned with the task of projecting the manpower needs of an organization and steps to fulfill the same.

NATURE / CHARACTERISTICS/FEATURES

OF HUMAN RESOURCE PLANNING/ MANPOWER

PANNING 1. Goal Oriented: The main objectives of Human Resource Planning are ensuring that the amount invested in human resource is justified. i.e., the organization should derive maximum benefits. If further ensures that the organization has the right number and types of person working at any given point of time. 2. Present and future manpower needs: After the present and future manpower needs of an organization have been anticipated, steps may be taken to fulfill the same through proper planning. Human resource planning, thus, relevance for the present and the future. 3. Systematic approach to the task of fulfilling the manpower needs: In the absence of Human resource planning, the organization will recruit staff at random. This leads to certain problems, e.g. surplus or shortage of manpower and the organization appointing unsuitable persons. Human resource planning follows a systematic approach to the entire process of recruiting staff in order to overcome these problems. 4. Promotes efficiently: Human Resource planning is required as it leads to greater efficiency. This is does by keeping the cost of recruitment and selection low and by ensuring right man for the right job. 5. Continuous process: It is not correct to think that human resource planning is required only in the early years of inception of an organization. It is something that is required continuously. In other words, as long as organization requires manpower, the need of human resource planning will be felt. 6. Flexibility: There is always a feeling among many that any type of plan makes things rigid. It may be said here that the human resource plan can be made flexible by making changes in it in tune with the changing manpower needs of the organization.

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HUMAN RESOURCE PLANNING INTRODUCTION Planning is thought prior to action Planning has been visualized as a thought proper to action, embracing a scheme of action involving the determination of the strengths and weaknesses in the choice of the best course of action from the standpoint of strategy and programmes. The term “Plan” is defined as a forecast of future attainment and forms a written statement of what will be the outcome of this action specifying a time period ranging from one year to five years. Meaning of Human Resource Planning:

Is both a process and a set of plans. It is the process used by organisations for assessing the supply and demand for future human resources. In addition, an effective HR plan also provides the mechanisms that will be used to eliminate any gaps that may be exist between supply and demand. Thus HR planning is process that is used to determine the number of employees to be recruited in to the organisation or the phased out of it.

Human Resource Planning as a process involving the following activities: 1. Forecasting of future human resource requirements; 2. Task of inventorying present resources and assessing the extent to which these resources are optimally utilized; 3. Anticipation of human resources problem, and 4. Planning of necessary human resource programme.

Manpower Planning Provides information in three dimensions:  The estimated manpower requirements (including expectations of manpower utilization);  The analysis of the external manpower market situation,&  The resulting estimate of manpower availability from the two dimensions.

Strategic HRM Strategies for Manpower Planning Manpower planning involves the application of a set of 9 strategies: 1. Collect, maintain and interpret relevant information regarding human resources; 2. Report periodically manpower objectives, requirements and existing employment and allied features of manpower; 3. Develop procedures and techniques to determine the requirements of different types of manpower over a period of time from the standpoint of organizational goals and modify these goals, if they make unrealistic demands for human resources;

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4. Develop measures of manpower utilization as a component of forecasts of manpower requirements along with –if possible- independent validation; 5. Employ- if suitable- techniques leading to effective allocation of work with a view to improving manpower utilization; 6. Conduct research to determine factors hampering the contribution of the individuals and groups to the organization with a view to modifying or removing these handicaps; 7. Develop and employ methods of economic assessment of human resources reflecting its features as income generator and cost and accordingly improving the quality of decisions influencing manpower; 8. Evaluate the procurement, promotion and retention of the effective human resources in the context of the forecast requirements of the enterprise; & 9. Analyze the dynamic process of recruitment , promotion and loss to the organization and control these processes and organization structure with a view to encouraging the maximum individual and group performance without involving excessive costs.

Reasons for Human Resource Planning All organizations perform human resource planning, either formally or informally. The major reasons for employment planning are:  More effective and efficient use of human resources: Human resources planning should precedes all other HRM activities. Careful analysis of all HRM activities shows that their effectiveness and efficiency, which result in increased productivity, depend on human resource planning.  More satisfied and better developed employees: Employees who work for organizations that use good human resource planning systems have a better chance to participate in planning their own careers and to share in training and development experiences. Thus they are likely to feel their talents are important to the employer, and they have a better chance to utilize those talents;  More effective equal employment opportunity planning: The govt. has increased its demands for equal employment opportunities.In sum, effective human resource planning ensures that HRM activities and programme will be built on a foundation of good planning. Proper planning should cut down on the number of surprises that occur involving human resource availability, placement and orientation.

The HR Planning Process HR Planning involves four distinct phases or stages:  Situation analysis or environmental scanning;  Forecasting human resource records;  Human resource supply analysis;

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 Action plan development. Situation analysis and Environmental scanning: The first stage in HR Planning is where the HRM function and strategic planning initially interact. The strategic plan must adapt to environmental circumstances, and the HRM function is one of the primary mechanisms that an organization can use during the adaptation process. For e.g. rapid changes in the technological environment can force an organization to quickly identify and hire employees with new skills that previously weren’t needed by the organization. Without an effective HR plan to support the recruitment and selection functions in the organization, it will be impossible to move fast enough to stay competitive. Thus, organizations are becoming more dependent on an ability to gather relevant information about their environment and to react to this information.

Forecasting future demand for employees: The next phase of an effective HR Planning process is estimating not only how many but what kinds of employees will be needed in the future. Forecasting yields these advanced estimates or calculations of the organization’s staffing requirement. Although there are many quantitative tools to help with forecasting, it

is a process that involves a great deal of human judgment. In addition, many

successful HR planners also rely heavily on their “gut instincts” about future conditions. For e.g., planners at Unilever attribute much of their global successes to such instincts.

Analysis of the supply of current Employees: The third phase of HR Planning id designed to answer the question “How many and what kind of employees do I currently have in terms of the skills and training necessary for the future?” It should be obvious that this phase of HR Planning involves much more that simply counting the number of current employees in the organisation. The major tool used to assess the current supply of employees is the Skill Inventory. It is a list of names, certain characteristics and skills of the people working for the organisation. It provides a way to acquire these data and makes them available where needed in an efficient manner.

Action decisions in Human Resource Planning: After the HR Planning system has analyzed both the supply of and demands for future workers, these two forecasts are compared to determine what, if any, action should be taken. Whenever there is a discrepancy between these two estimates, the organization needs to choose a course of action for elimination the gap. No matter how good the HR Planning system is, an exact match between supply and demand forecasts is rare. Even when overall estimates are similar, there are frequently important gaps in

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certain subgroups. These data become inputs to facilitate decisions about training, promotion, demotion and similar decisions.

Action decisions with a shortage of employees: When employment specialists comparing demand to supply find the supply of workers is less than the demand, several possibilities are open to the organization. If the shortage is small and employees are willing to work overtime, it can be filled with present employees. If there is shortage of highly skilled employees, training and promotions of present employees, together with the recruitment of lower skilled workers, are possibilities.

Action decisions in surplus conditions: When comparison of employee demand and supply indicates a surplus, the alternative solutions include attrition, early retirements, demotions, layoffs, and terminations. Employee decisions in surplus conditions are some of the most difficult decisions managers must make, because the employees who are considered surplus are seldom responsible for the conditions leading to the surplus. A shortage of raw material such as fuel, or a poorly designed or marketed product can cause an organization to have a surplus of employees. Fig. 1: Human Resource Planning Process

STATE THE IMPORTANCE OF HR PLANNING? 1. To procure the required manpower: To perform the various jobs in the organization, people with varying skills, qualification and expectance are required. HR planning helps to fulfill such requirement. 2. To replace employees: Every year, a number of employees retire in workplace. These employed therefore have to be replaced. Vacancies arising due to retirement can be anticipated and suitable arrangement for replacement can be made. A vacancy may also arise when an employee dies or becomes incapacitated or dismissed on disciplinary grounds proper planning his enable the management to fill-up vacancies as and when they arise. 3. To tackle the problem of surplus of shortage of manpower: In the absence of proper planning of manpower needs, the organization is ---- to face the problem of either surplus or shortage of manpower. Surplus employees do not contribute to output. On the other hand, if there is shortage of manpower, the volume of work. To tackle both the problem, proper planning is essential. 4. To meet the needs of changing Technology:

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Rapid technological changes would render the existing workplace, the organization must require the exiting employees to update themselves or recruit a new set of workforce. Here again, human resource planning can help. 5. Expansion programmes: No organization is going to remain static. To undertake expansion activities additional hand are necessary. Such additional hands can be served thorough effective planning. 6. Optimum investment in human resource: Under Human Resource management, the amount spent on Human Resource is viewed as on investment. But it is necessary that such as investment is made at the optimum level in order to device maximum benefits. Human Resource planning ensure optimum investment in Human Resource.

EXPLAIN PROCESS / STEPS OF HUMAN RESOURCE PLANNING / MAN POWER PLANNING. Process of HR planning

1. The system analysis

2. Determining the time

5. Preparation of

frame of the plan

3. Forecasting the

Reconciliation

supply of manpower

action plans

I. THE SYSTEM ANALYSIS: The company has to design the systems in which the organization works it may be either closed or ‘open end’ a closed system will have all actions, variables, information and relationship necessary for he achievement of its goals, within its limits. A closed system have a high degree of predictability of its behaviour. This makes, planning very easy. An open end system is for more uncertain and unpredictable and appropriate corrective actions are after unknown. Ascending to T.C. Trepathy , generally, the manpower planning will work in a vast open – end system the / the national economy. Which contents of number of complicated open-end sub-systems (firms, unions, families and individuals)? Therefore a system has to be analyzed with regard to the planning. 1. Goals: The company’s goals should always be clear manpower planning cannot succeed until the goals to the organization (i.e. profit, welfare, unity etc.) are clearly defined and ------- assigned to them. 2. External environment constraints:

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The company has to consider the external factors (such as population, investment, union rules) etc. which are beyond his control. 3. Internal variables: The HR managers has to identify those variables which are either the firms control foe e.g productivity incentives or training or redundancy payments.

II. DETERMINING THE TIME FRAME OF PLAN: The manger has to decide the time frame of his plan as this will show how much is changeable with in the system. For the shorter time span. There will be less variance. A reasonable accuracy can be expected in case of short-term forecasts up to 2 years a useful techniques is to roll on the forecast by a year at each annual revision. Thereby keeping the length of the forecasting period unchanged whilst making nay amendment necessary in the light of changing circumstances. Short-term planning is undertaken to find a temporary match between the exiting individuals and the existing jobs. It aims at reamong the anomalies in posting and placements. Long –term planning, on the other hand, is done to a find proper match between the future jobs and their future incumbents. III. FORECASTING THE SUPPLY OF MANPOWER: The essential element in the manpower planning is the forecasting of the demand and the supply of manpower, for the period for which the plan is outlined. To forecast manpower demand in the future, the period for which the plan is outlined. To forecast manpower demand in the future, the HR manager must have a detailed knowledge to the company’s future achievements targets. Generally, the forecast will be made on the assumption of a given target level. The following steps are required to be followed for projecting manpower demand. 1. Selection of suitable method for calculation of manpower needs. 2. Estimation of the productivity rates. 3. altering the productivity rates and 4. Estimation of manpower requirements.

i) Suitable method: selection of a suitable method for the calculation of manpower requirements is an essential element. In case of a retail store, the best method is quantum of sales, and in case of a company producing steel. It may be tons of steel, for a university it may has to satisfy one requirements –the required manpower be proportional to the changes in the basic. In a steel co, tons of steel’ will serve as a useful basis for the calculation of manpower needs if the number of workers is performed to the output of steel.

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ii) Productivity ratio: the second in the forecasting is output per individual. Productivity ratio can be calculated in a number of ways. The most typical method used by small companies is managerial judgment or copying ratios of other concerns. Fro instances, a manger of a small company may estimate the manpower needs on the basis of his own judgment or on the basis of experience of other similar companies that he needs 12 persons in his office to process 360 files per week on he basis of this ratios, one can easily forecast the number of men needed to carry out a planned volume of work. Sometimes, the productivity ratios are calculated with the help of statistical or work study technical. Here, there will use regression analysis to find out the movement in the values of the 2 variables-manpower and output-are corrected with each other. Afterwards, we can predict manpower requirements for a given level of production activity. By using work study method, we can find out the work standard hours required to produce one unit okf output on the basis of work measurement done by industrial engineers. After finding the standards hours per unit, it is easy to forecast the number of workers required for producing the planned number of units.

iii) Making adjustments in the productivity ratio: The next step is to make adjustments in the producing ratio based on the changed in technology, changes in organizational structure training and better utilization of resources manpower estimates for the target years must reflect the productivity anticipated at that time.

iv) Projecting manpower requirements: After finding out the productivity ratios, the projection of operative manpower need for he target year is easier. After planning the need for each section or department the organization can proceed to find out the ratios between the number of operative and managerial personnel at various levels on the basis of certain assumptions about span of control, nature of work, technology and historical data. These ratios will help to work-out the projections for its managerial personnel.

FORECAST OF MANPOWER SUPPLY: Manpower demand is the key element manpower forecasting. The supply of manpower to fulfill the demand. The following are the sources of the supply of manpower. i) Internal supply forecast: This is a kind of internal sources through which can get the required manpower by regular promotions, turnover etc. the stochastic modes helps in forecasting internal supply is the markov-chain analysis. Under this method, the probabilities are calculated of he movement of people from one job to another in the organization or of leaving the organization on the basis of past record over same specified

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time period. Here, it is assumed that these probabilities would remain stable to make forecast future manpower supply in the organization. (ii) External supply forecast: The internal supply forecast will be successful only in the most exceptional situations. When the organization expends the supply will be less than the demand. Sometimes, the supply will exceed the generally given to increasing the supply by recruitment although other internal means to alter the supply. External supply forecast will be undertaken in the right of several local and national factors operating in the labour market. Avoiding to S. Ghosh, the following local factors worth mentioning i.

HR available at various distance from the work place.

ii.

Other employment chances available.

iii.

Availability of part-time labour

iv.

Competition prevailing in the market for similar categories of labor from other organization both local and national.

Output from the local educational system (general as well as technical)

vi.

People coming on emigration within the area and between it and other areas.

vii.

Shelter faculties available to the work force.

viii.

Transfer and communication facilities.

(iii) Reconciliation: Any manpower forecast depends on the cost factor. The manpower plans are reconciled with the company’s finances. Always, the manpower needs and manpower programmes will have the company’s finance. Always, the manpower needs and manpower programmes will have to be re-examined and reassessed and a suitable reconciliation within the financial constraints achieved. (iv) Action plans: After analyzing the manpower requirements, the action plans relating to productivity and manpower costs, covering the following subjects be prepared. 

Selection



Training



Improvement in productivity and



Improvement in the retention of employees.

In the above areas of the manpower plan, it is essential to calculate the costs involved so that thy can be assessed against the potential benefits. It is also equally to indicate who responsible for implementing the plan, for reporting the progress and for monitoring the results achieved.

DISCUSS THE USES AND BENEFITS OF MANPOWER PLANNING. USES AND BENEFITS OF MANPOWER PLANNING: 1. Reduces labour cost:

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Manpower planning results in reduced labour cost as it helps the management to anticipate shortage and / or surpluses of manpower and correct these imbalances before they become unmanageable and expensive. 2. Best use of skills of employees: It is better basis for planning employee development that is designed to make optimum use of workers skills working in an organization. 3. It planning training faculty: It enables identification of the gaps existing manpower so that corrective training programme becomes more effective. 4. Improvements in all levels: It leads to improvement in the overall business planning process. 5. It is useful for making employees skill up to date: It leads to a greater awareness of the once of sound manpower management throughout the organization. 6. It is Evaluation Tool: It serves as a tool to evaluate the effect of alternative manpower actions and polices. 7.Useful to managerial succession: It helps in formulating managerial succession plan as a part of the replacement planning process which is necessitated when job-change plans for mangers are formulated. Besides, this exercise would provide enough lead time for identifying and developing managers to make-up the corporate leader.

LIMITATIONS OF HUMAN RESOURCE PLANNING: 1. Expensive: Preparation and implementation of the HR plan is expensive is terms of time, efforts and money required. 2. Inaccurate forecasts: The manpower needs of an organization are determined based on forecasts. The HR plan is prepared in tune, with such forecasts. The success of the plan, therefore depends on the accurately with which the forecast are made inaccurate forecasts would only result in the failure of the plan. 3. Uncertainties: Absenteeism, seasonal nature of certain jobs, labour turnover etc. can separate the HR paln. 4. Trade union resistance: Trade unions often utilize the HR plan of an organization on the ground that it is detrimental to the interests of the employees. The plan may contain such measures as increase in workload, voluntary retirement redeployment of surplus labor etc. it is for these reasons the trade unions show resistance. 5. Rigidity:

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Any plan is basically rigid. The rigidity of the HR plan may, sometimes, affect implementation. Such a plan, thus, remains only on paper. 6. Focus on quantity: The manpower plan often focuses attention on the quantity of HR rather than quality. Quantity without quality does more harm than good.

WHAT ARE THE REMEDIES / MEASURES TO MAKE THE HR PLAN EFFECTIVE? REMEDIES / MEASURES TO MAKE THE HR PLAN EFFECTIVE: 1. Case-benefit analysis of the HR plan: One of the limitations of the HR plan is that it is expensive in terms of time efforts and money required. The costs of preparing such a plan may be compared with the benefits accounting to the enterprise. It must be ensured that the benefits are greater than the costs incurred. 2. Making accurate Forecasts: As the success or failure of the HR plan depends on the accuracy of the forecasts, steps must be taken to predict the presented and future manpower needs of the organization more accurately. There are several quantitative and qualitative tools used for the purpose of forecasting. 3. Provision for future uncertainties: Adequate provision should be in the HR plan for such uncertainties as absenteeism, labour turnover etc. This would ensure proper implementation of the HR plan. 4. Involve employees and their unions: Employed participation in management is an integral part of human resource management while preparing the HR plan, the suggestions and values of the employees on the manpower needs of the organization can be received. Where ever possible, steps can be taken to incorporate such suggestions in the HR plan. This would, certainty, steps overcome resistance by the employees and their unions. 5. Introducing Flexibility: The rigid notice of the HR plan may hamper implementation. To overcome such a problem, certain amount of flexibility may be introduced into the plan. 6. Consideration of both quantity and quality: The HR plan to be fruitful must consider both the quantitative and qualitative aspects of the human resource.

EXPLAIN THE VARIOUS FACTORS THAT INFLUENCE HR PLANNING. FACTORS THAT INFLUENCE HR PLANNING Internal factors: 1. Recruitment policy of the organization: The policy of the organization regarding the source of recruitment and the method of selection is an important factor influencing the HR plan.

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2. Availability of funds: It finance is not constraint, the organization may be in a position to offer an alternative salary package and thereby induce decreasing persons to apply for the various jobs. 3. Job requirement: Different jobs call for different qualifications and skills from prospective applicants. The requirement of every job, therefore will have to be borne in mind while preparing the AR plan. 4. Scale of operation: The manpower needs of an organization the scale of operation of which is greater, will naturally be more than the one with a lesser scale of operation. 5. Trade union influence: The demands of the trade union regarding the hours of work, source of recruitment etc. may also influence the HR plan. External Factors: 1. The reservation policy of the Government: The reservation policy of the Govt. provides for reservation of jobs for certain communities. The HR plan of every Govt. organization and Govt. aided organization has to give effect to such a policy. 2. Availability of the desired manpower: Before preparing the human resource plan, it must be ensured that the type of HR needed by the organization is actually available. This is because sometimes people with a certain skill or qualification may not be available in the job market. 3. Willingness of the job seekers to accept the terms and conditions: When an organization wants to recruit staff afresh, it must ensure that is terms and conditions of service are acceptable to the job seekers of they find the unreasonable, they may not be willing to apply. 4. Knowledge of the trend is the industry: Consideration of the trend in the industry in the manner of the type of workplace preferred for certain jobs, wage rates, hours of work etc. is important in preparing the HR plan. 5. Level of technology: A business is enterprise is highly susceptive to technologies changes. Technically qualified persons constantly update themselves to enhance their employment prospects. The job offers of an enterprise, therefore, must be such that the potentials of the individuals are fully and they are also rewarded suitability.

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EXPLAIN THE HUMAN RESOURCE PLANNING AT VARIOUS LEVELS. HUMAN RESOURCE PLANNING AT VARIOUS LEVELS 1. Global level: Eminent persons throughout the would are considered for appointment in global organizations like the UNICEF, the UNESCO etc. computer professionals throughout the world and in particular from India are working for he corporate giants of the U.S and the European countries. 2. National Level: A citizen of India, possessing the requisite qualification, is considered for appointment in central government organizations. In India, organizations like the union public service commission (UPSC) and the staff selection commission (SSC) are empowered to conduct entrance steps to select suitable candidates for central government must be milling to serve in any part of India. A citizen of India, fulfilling the eligibility criteria, may be inducted into the Indian Army, Navy or Air force. There are also organization that select desiring sports persons, thoughts the country to pay for India. The Board of center for cricket in India (BCCI) for example, has a selection committee that selected talented, cricketers throughout India to play your India. 3. State level: Vacancies in state Govt. organization in India are filled up with the help of the respective state public service commission. For e.g. the Tamil Nadu Public Service Commission (TNPSC) is empowered to hold entrance tests to select candidates for state Govt. service. An employee in the state Govt. service must be prepared to service in any part of the state. 4. Industry Level: The level of activity of a particular industry like automobile, textile, chemical etc. will determine its manpower requirements. Only persons possessing certain specific qualification and experience can be considered for appointment in these industries for e.g. a degree or diploma in automobile engineering is necessary for someone associate himself with the auto industry as a technician. 5. Firm/ company level: The scale of operation of particular firm or company will determine its manpower needs. The recruitment policy of the particular concern will indicate the mode of selection type of candidates (male or female, with or without previous work or without previous work experience and so on) for the various jobs. 6. Department/Division level: This is concerning the manpower needs of a particular departments or division within a firm or a company. The natures of activities of a particular department, the availability of financial resources etc. are some of the factors influencing the HR plan.

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DISCUSS THE HUMAN RESOURCE RETENTION PLAN. 1. Job security for all the employees: Obviously, an employee who does not have job regularly will quit his present job if he finds a secured job elsewhere. 2. Pay benefits on par with those in rival concerns: The salary and other monetary benefits given to the employees shall be on par with those in rival firms. Only then the employees will have a feeling that the employer does not exploit them. 3. Promotion opportunities: Lack of promotion opportunities results in stagnation. This leads to monotony and boredom in the workplace. There should always be scope for the employees to move higher positions. 4. Facilities for Training: Training enables an employee to update his knowledge and skill of gives him greater confidence to meet future challenges. 5. Conductive working conditions: The physical environment as well as he social environment in the workplace should be conductive for he employees. 6. Encouraging workers participation in management decisions: Only then the employee will have faith in the management, as the latter cannot take individual decisions. 7. Challenging work: The work given to any employee must be of a challenging nature. It must give scope for the employees to exhibit their skills. 8. Motivation of employees: Inducement of employees is necessary to get the best all of them. This may done by offering them suitable tangible benefits. 9. Encouraging workers to form of union: When there is a trade union, the employees will be in a position to represent all their genuine demands collectively. 1. Facilities for Counseling: Employees do under crap stress in view of domestic and work related problems. Counseling, by the manager or by a specialist, enables them to get rid of their stress and perform then jobs better.

EXPLAIN THE GUIDING PRINCIPLES OF EFFECTIVE ERP. GUIDING PRINCIPLES OF EFFECTIVE ERP There are certain fundamental principles that make HR making effective there are as follows. 1. The plan should be as detailed as expenditure constraints allow.

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2. Plan should not extend too far into the future, accurate prediction of the distant future is simply impossible. 3. All attendance courses of action should be considered. 4. Side effects and implications of the actions envisaged should be examined. 5. Institutions to individual and departments must be incorporated into the plan. 6. Plans should can use and easy to understand. Once the plan so formed is executed, its effectiveness in achieving set stated objectives should be periodically motivated. Variations, if any between actual and desired positions must be identified as easily as possible and the remedial measures should be introduced immediately.

HOW IS HR INFORMATION SYSTEM USEFUL IN HRP? HRIS-Human Resource Information system aspects to a computerized system that aids the processing of information relating to HRM it is a system of gathering, classifying, processing, recording and disseminating the information required for effective management of HR in an organization HRIS forms an integral part of the management information system (MIS) MIS includes information relating to aspects finance, production, marketing, sales, accounting etc. HRIS collects and analysis date relating to HR of the organization. The inputs of employees, their abilities, qualifications, potentials, creative instincts, age, sex, their jobs, pay scales, organizational objectives, policies procedures etc. These inputs are processed and transformed into multiple forms of inputs like ------- and many other devices. These outputs are made available at the fingertips of the manager through computer network. Thus, managers find HRIS as a decision support system device for managing human resources in the organisation. HRIS is considered superior one to that of manual system. The main advantages that HRIS offer individual. 1. It is both saving and cheaper device 2. It gives accurate information relating to human resource. 3. it makes resources 4. it makes information readily available as and when desired. 5. it acts as a decision support system. Like career planning, development skill, moral etc.

WHAT DO YOU MEANT BY PP AND EXPLAINS IT ? OR WRITE SHORT NOTES ON PERSONNEL POLICY? â&#x20AC;&#x153;A policy is man made rule or predetermined course of action that is established to guide the performance of work towards the organisation objectives.

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53 -

DEFINITION:

“Main objective of personnel management is to get the work done by the employees working in an organisation so that the organisational objectives may be achieved in the best possible manner”.



“A policy is a pre-determined course of thought and action that is defined and established as a guide towards accepted goals and objectives”.



“Policies are general instructions, procedure and specific applications”.



“Pp constitute guides to action, they furnish the general standards or bases on which decisions are reached. Their genesis lies in an organisation value, philosophy, concepts and principles”.

EXPLAIN THE CHARACTERISTICS OF PP: 1. PP are the statement of objectives. 2. PP guides the management in respect of personnel problems. 3. A policy is a pre-determined and accepted course of action. 4. PP reflects the intentions to personnel management to guide subordinate and helps them in discharging their responsibilities. 5. PP provides the basis on which personnel decisions are taken.

EXPLAIN THE OBJECTIVES OF PP: 1. To protect the interest of labour and capital 2. To bring prosperity to the organisation 3. To provide the base for decision making 4. To facilitate the process of decision making 5. To develop the feeling of mutual co-operation and dignity between labour and management. 6. To bring the employees in a closer contact of management. 7. To provide the proper and adequate financial incentives. 8. To provide the safety of job to the workers. 9. To maintain the achievements of trained employees 10. To develop the feeling of royalty and faithfulness among employees towards the enterprise. 11. To provide the opportunity for development 12. To formulate justified policy regarding the terms and conditions of employment 13. To recognize the work of employees and to give due regards to their achievements. 14. To help in the selection of suitable persona 15. To develop the feeling of responsibility among managers and employees. 16. To provide the opportunities of maximum individual development.

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17. To make possible maximum exploitation of HR

EXPLAIN THE NEED OF PP: ď&#x201A;ˇ

Pp guide the management and employees in the execution of their tasks. These policies are helpful in establishing co-ordination between labour and management. So the pp are essential for the smooth functioning of an organisation.

1. ESTABLISHMENT OF INDUSTRIAL PEACE: A personnel policy helps in developing harmonious relations between labour and management thus helps in solving the labour problems. 2. BASIS OF DECISIONS: Personnel management helps in achieving the organisation objectives by taking relevant decisions at proper time. 3. UNIFORMITY IN DECISIONS: Pp are pre-determined course of action, so all the decisions based on Personnel polices are uniform. 4. Helpful in achieving: - the organisational objectives. 5. Delegation of authority: - is possible. 6. Helpful in effective control 7. Motivation to do more work 8. Helpful in evaluating efficiency. 9. Development of confidence among workers. 10. Co-operation from labour unions.

EXPLAIN THE PRINCIPLES OF PP: Pp are the policies, which guide the management and workers to discharge their responsibilities properly. These policies are helpful in establishing effective co-ordination between labour and management. These policies are based on some principle so that they may be helpful in achieving the organisation objectives.

1. Principle of Common interest: The interest of employees and employers of an enterprise is on and the same that means economic success of the enterprise. Pp must be based on the principle of common interest. Both parties must realise that there interests are not separated but are alike and the achievement of organisation objectives depends upon mutual co-operation and co-ordination. 2. Principle of recognition of trade unions:

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The work, liabilities and responsibilities of workers must be appreciated; human dignity of workers must always be honoured. There must be a direct relationship between workers and management all the facilities must be provided to the workers and their problems must be solved. 3. Principle of recognition of work and accomplishment: Due recognition must be paid to the work and accomplishment by formulating suitable Pp. This principle involves the determination of a satisfactory policy of wage payment, job security, reasonable standard of living, and sympathetic attitude towards labour, job a P Appreciation and job satisfaction. 4. Principle of development: Opportunities must be provided within the organisation so that the employees may improve their status earns more wages and share higher responsibilities. Personnel Polices must be formulated in the manner that the employees, who are willing to contribute some thing for the prosperity of the organisation and to sacrifice their time, and efforts to improve themselves on the job, may get proper opportunities or development. 5. Principle of participation in management: The success of any policy is depends on the effective implementation and willing acceptance. If the decision regarding personnel matters is taken with the consultation and consent of the representatives of employees, it will improve the working conditions. 6. Principle of change: Change is the law of nature. It has been the general experience that the employees resist almost all the changes. Therefore, the management must take measures to prepare the employees well in advance to face these changes.

EXPLAIN THE FORMATION OF PP OR HOW TO FRAME THE PERSONNEL POLICY OR EXPLAIN THE PROCESS OF PP : 1. The name, objects, organisational structure and management must be introduced in brief. 2. The recruitment of employees must be in partial. 3. It must disclose the source of recruitment, selection, procedure and minimum qualifications for different job. 4. It must disclose the period of probation also. 5. Working conditions, work hours must be disclose (it differ for womenâ&#x20AC;&#x2122;s, children etc) 6. It must disclose training programme 7. Principle of equal remuneration â&#x20AC;&#x201C; equal work 8. Rules regarding payment overtime must be clearly mentioned. 9. The time payment of wages must be pre-determined. 10. Holidays must be announced well in advance.

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11. The rules regarding absenteeism and slacks of employees must be specified. 12. The basis of promotion must be certain and specific the basis must be strictly be observed. 13. The rules of demotion must also be specified. These rules must be clearly communicated to the workers. 14. Possible measures should be adopted to remove the grievances. 15. The Policy must contain all detail about collective bargaining. 16. Possible measures should be adopted for the welfare and social security of the employees. 17. The policy must have detail of punishment on the vocation of rules of the organisation. 18. Schemes of labour participation in management should be specifically disclosed. 19. The policy should also have specific rules regarding retirement. 20. In addition to above particulars a. Leave with pay b. Rules regarding transfer c.

Rules regarding retirement

d. Safety rules e. The works that are prohibited f.

g. Labour relations h. Termination i.

Possible accidents and safety

TYPES OF PERSONNEL POLICIES: 1. Functional grouping of policies or organisational grouping of policies 2. Centralised policies

1. Functional grouping of policies: Those policies, which are, grouped for different categories of pp. E.g., for the management dealing with personnel planning, organizing and controlling or for management concerned with functions of procuring developing and utilizing man power. The centralised policies are framed for companies with several locations. Policies may be classified into major and minor. OVERALL OBJECTIVES: Minor policies; cover relations in a segment of an organisation with considerable emphasis on details and procedures. Such policies are the out growth of major policies and preserve their unity of purpose.

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BOARD OF THE USA VIEW THAT THE FOLLOWING MATTERS SHOULD BE INCLUDED IN THE PERSONNEL POLICY: 1. History of the company’s growth 2. Recruitment procedure in detail 3. Grievance redressal procedure 4. Safety rules 5. General practices like operation, attendance maintenance, punch card etc. 6. Co-operation 7. Employees financial aids 8. Training 9. Employees news and journal 10. Communication 11. Motivation 12. Health and hospitalization 13. Vacation with pay 14. Allowances 15. Leave details 16. Employees discussion methods 17. Company’s policy on compensation, reward 18. Social security like pension, gratuity etc 19. Collective bargaining 20. Garnishments 21. Public relations 22. Labour – company relations 23. Union relations 24. Prohibition activities – smoking, gambling, imbibing liquor etc 1. Maintenance and disciple rules regarding etc.

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Unit â&#x20AC;&#x201C; II HRM / PERSONNEL Definition: Human Resource Management (HRM) is a strategic approach to the management of an organizationâ&#x20AC;&#x2122;s most valuable assets the people working, who individually and collectively contribute for achieving its objectives.

Principles of HRM:Effective and successful HRM is highly cost effective and profitable aspect of management. Organizations have general obligations to their staff. The management of the human resource is recognized as an area of high expertise. The HRM is based on following principles: 1. Employees are valued assets:The most fundamental belief of HRM is that sustainable competitive advantage is achieved through people. Therefore they should be considered not as variable costs but as valued assets in which to invest, thus adding to their inherent value.

2. Strategy and culture: The organizational effectiveness can be increased significantly by human resource strategies and by culture of organization.

3. Emphasis on commitment rather than compliance:The optimum utilization of human resource will be achieved by developing consistent and coherent policies commitment to the organization.

4. Emphasis on the key role of line management:HRM is owned by line managers who alone have the responsibility for managing their staff. The role of the HR function is to enable line managers to fulfil their HRM responsibilities effectively.

Objectives of HRM:Human resource strategies and policies are designed and devised to meet the operations and undertakings of the organization. HR strategies reflect overall aspirations, policies, direction skills, knowledge and expertise. It defines the formation of required culture, attitudes, values and beliefs. To achieve the desired goals of an organization following objectives of HRM are identified : i) To enable management to achieve organizational objectives through its workforce.

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ii) To utilize the manpower to its full capacity and potential. iii) To integrate human resource policies with business plans and reinforce an appropriate culture as necessary. iv) To create conditions in which innovation, team working and total quality can flourish. v) To create environment in which the creativity of employees will be unleaded. vi) To maintain healthy and safe working environment. vii) To get right people in the right place at the right time. viii) To retain stability in the employees through pay and benefits (individual career planning).

Functions of HRM:The HRM activities play a key role in any organization. The important functions of HRM are discussed below: i)

Formulating HRM strategy

ii)

Restructuring of organization

iii)

Training and Development

iv)

Resourcing

Human Resource Planning

vi)

Compensation and Reward.

Formulating HRM strategy Formulating strategies which set clear directions for long-term development and provide the basis for building a coherent approach to personnel management.

ii)

Restructuring of organization Helping organization in restructuring of organizations and the redesign of jobs to fit projected changes in product systems, technologies.

iii)

Training and Development The training and development programmes are necessary to identify the companyâ&#x20AC;&#x2122;s mission and values and to develop behavior and attitudes which support their achievement.

iv)

Resourcing Resourcing is acquiring human resources to the changing requirements of the organization. What type of people are required, where are they likely to be now, what are the best mechanism, under matches and mismatches and use this as the basis of informed effective remedial action. Quality of product and prestige of organization depends on them.

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Human Resource Planning Human resource planning uses demand and supply forecasting techniques to determine the future workforce requirements of the company. Human resource planning involves different resourcing, retention, development and termination policies. Human resource planning techniques ensures that the demand and supply factors in assessing future requirements are fully taken into account.

vi)

Compensation and Reward. Compensation determines salary and wage structures. The external factors like globalization, increased competition and environment uncertainty have resulted in designing of significant reward system. A reward system defines the performance expectations and rewards according to their contribution.

Selection:Selection involves a careful screening and testing of candidates who have put in their applications for a job in the enterprise. This is necessary for 2 reasons; first, many of the applicants may not really be suitable for employment in the enterprise; secondly, even where all applicants are duly qualified and experienced, the enterprise may not have adequate number of vacancies to accommodate all of them.

Selection Procedure:Broadly, the selection procedure may be simple. Only applicants among which are as follows: 1. Receipt and Scrutiny of applications. 2. preliminary interview. 3. filling in of blank applications forms. 4. tests 5. interviews 6. checking references 7. preliminary and final selection 8. medical examination 9. Placement.

1. Receipt and scrutiny of applications:

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Every person who applies for a job in an enterprise may not possess the necessary qualifications or experience for it candidates with insufficient qualifications or experience should therefore be eliminated from the list of those who have to be called for preliminary interview.

2. Preliminary interview:The object of a preliminary interview is to see whether the applicant appears to be physically and mentally suitable for the job. Candidates who pass the preliminary interview are asked to fill up a blank application form especially designed to elicit the requisite information about the candidate.

3. Blank Applications Forms:There are different application forms for different jobs, for the simple reason that different qualifications and skills are required for different jobs. But to serve the purpose for which it is meant, an application forms should conform to the following requirements: 1. Brevity 2. Relevance

4. Tests:Tests serve as an important device in the process of selection. These are aimed at measuring such skills and abilities in a worker which would help him in performing the job assigned to him based on his competence. Tests may be of two types, viz., a) Proficiency tests, and b) Aptitude tests.

Proficiency tests:Proficiency tests seek to measure the skills and abilities which the candidate already possesses at the time of the test. “Trade tests” or “achievement tests” are examples of proficiency tests. They determine whether the claims made by the candidate about his skills and abilities are borne out by his actual test performance.

Aptitude tests:Aptitude tests measure the skills and abilities which the candidate apparently has the potential to develop later. In other words, these tests assess his potential for performing a certain job in future. The main aim here is to see if he has the capacity and proper bent of mind to acquire the necessary abilities

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and skills to handled his job well. “Personality tests” and “interests tests” are some of the examples of aptitude tests.

Kind of Tests

Proficiency Tests

Trade or Achievements Tests

Dexterity Tests

Aptitude Tests

Intelligence

Personality, Character or Attitude Tests

Movement Tests

Interest Tests

Proficiency Tests:1. Trade or Achievement Tests:- They aim at measuring the knowledge and proficiency which have already been achieved by a candidate in his field. 2. Dexterity Tests:- The object of these tests is to see how quickly and efficiently a candidate uses his hands and fingers to perform the assigned job.

Aptitude Tests:1. Intelligence Tests:- They usually consist of a long list of questions to be answered and problems to be solved within a specified time. The number of questions answered correctly within a specified time indicates the candidate’s IQ (Intelligence Quotient).

2. Personality, character or Attitude Tests:- They measure the non-intellectual traits of a candidate such as his ability to mix up with people, interacts with them positively and to motivate his colleagues and subordinates.

3. Movement Tests:- They seek to measure the speed and precision of movement in a candidate. 4. Interest Tests:- The object of these tests is to measure a candidate’s interest in a particular kind of work. On the basis of an interest test, it becomes easy to assign to each person the job for

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which he has the greatest liking so that he derives maximum job satisfaction and is able to contribute his utmost to the enterprise.

5. Interview:An interview is a formal consultation to evaluate the aptitude, training, etc., of a prospective employee. It is a “face – to – face, observational and personal appraisal method” to evaluate a candidate for a job. In any interview, the interviewer is in a document position.

Kinds of Interview:1. Direct Interview 2. Indirect Interview 3. Patterned Interview 4. Stress Interview 5. Systematic, In-depth Interview 6. Board or Panel Interview 7. Group Interview

6. Checking References:A candidate is applying for a job in an enterprise is usually asked to provide some reference, e.g., named of persons to whom inquires as to his educational background, skills, experience, character, character or ability, could be addressed. A letter of recommendation or statement of the qualification and qualities of the candidate given by someone familiar to him, is also called a reference.

7. Preliminary and final selection:Up to the stage of checking of references, the preliminary selection process is handled by staff execution. If an employee’s performance is not up to the mark, he may be kept as an apprentice or probationer for some time. If he found unsuitable for one job, he may be sent over to another and, if he is unfit there too, to yet another. But normally no employees is rejected at this stage.

8. Medical Examination:For the jobs that prescribe certain physical standards as to height, weight eyesight, hearing, etc. a medical check-up prior to the placement of the candidate, becomes necessary. Selection in the armed forces or civil services, for example, is subject to the candidate clearing his medical examination.

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9. Placement and Orientation:Even when a person has been finally selected for a job, the curtain does not come down on the selection process. The last act in the play still remains; that of placement of the person into his new job and of his orientation to the organizational environment. To overcome such problems faced by new employees, most enterprises have formal orientation programmes, under these, new employees are taken round the offices and plant, provided literature giving the necessary information about the enterprise.

Methods of Training:A great variety of employee training and development are used by different organizations to develop their man power. The selection technique vests on one philosophy of training. There are two principles methods of employeesâ&#x20AC;&#x2122; training which are used by the firms: a) On-the-job Methods. b) Off-the-job Methods.

a) On-the-job Methods. On-the-job training methods are by far the most commonly used in training for all levels of personnel. The object of on-the-job training is to bring the employees to atleast a minimum acceptable standard of performance in the shortest possible time. 1. On Specific Job â&#x20AC;&#x201C; The most common or formal on the job training programme is training for specific job. (a) Experience: - It was found that they kept up to date through a variety of activities which were largely unrelated to formal continuing education courses. (b) Coaching:- On-the-job coaching by a superior is an important and potentially effective approach if superior is properly trained and oriented. The technique involves direct personnel instruction and guidance, usually with extensive demonstration and continuous critical evaluation and correction.

(c) Understudy:- The understudy method makes the trainee an assistant to the current job holder. The trainee learns by experience, observation and limitation.

2. Position Rotation:- The major objective of job rotation training is the broadening of the background of trainee in the organization. If trainee is rotated periodically form one job to another job, he acquires a genera; background.

3. Special Projects :- This is a very flexible training deice. Such special project assignments grow ordinarily out of an individual analysis of weaknesses. The trainee may be asked to perform special assignment; thereby he learns the work procedure.

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4. Selective heading:- Individuals in the organizations can gather and advance their knowledge and background through selective reading. The reading may include professional journals and books.

5. Apprenticeship: - Apprentice training can be traced back to medieval times when those intended of learning trade skill bound themselves to a master craftsman to learn by doing the work under his guidance. In earlier periods, apprenticeship was not restricted to artisans, but was used in training for the professions, including medicine, law, dentistry, and teaching.

6. Vestibule Schools: - Large organizations are frequently provided with what are described as vestibule schools, a preliminary to actual shop experience. As far as possible, shop conditions are duplicated, but instructive, not output, are major objective, with special instructors provided. Vestibule schools are widely used in training for clerical and office jobs as well as for factory production jobs. b) Off-the-job Methods:In these methods, trainees have to leave their work-place bad devote their entire time to the development objective. In these methods development of trainees is primarily and any usable work produced during training is secondary. Following training techniques are used off-the-job:1. Special Course and Lectures:- Lecturing is the most traditional form of formal training method. Special courses and lectures can be established by business organizations in numerous ways as a part of their development programmes.

2. Conferences:- This is also an old method, but still a favourite training method. In order to escape the limitations of straight lecturing many organizations have adopted guided-discussion type of conference in their training programmes.

3. Case Studies:- A case is a written account of a trained reporter analyst seeking to describe an actual situation. Cases are widely used in a variety of programmers. This method increases the traineeâ&#x20AC;&#x2122;s power of observation, helping him to ask questions and to look for a broader range of problems.

4. Brainstorming:- This is the method of stimulating trainees to creative thinking. A problem is posed and ideas are invited. Later, these ideas are critically examined.

5. Laboratory Training:- Laboratory training adds to conventional training by providing situations in which the trainees themselves experience through their own interaction. Laboratory training is more concerned about changing individual behaviour and attitude.

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Simulation:- An increasingly popular technique of management development is simulation of performance. Simulation is the presentation of real situation of organizations in the training session. It covers situations of varying complexities and roles for the participants.

(B)

Sensitivity Training:- Sensitivity training is the most controversial laboratory training method. Many of its advocate have an almost religious zeal in their enhancement with the training group experience. Sensitivity training is a small-group interaction under stress in an unstructured encounter group which requires people to become sensitive to one another’s feelings in order to develop reasonable group activity.

Job Evaluation:Job evaluation is the output provided by job analysis. Job analysis describes the job and job holder while job evaluation is the process by which jobs in an organization are appraised. 

Job evaluation is the process of determining the relative worthy of a job.



It is a formal and systematic comparison of jobs in order to determine the worth of one job relative to another, so that a wage or salary hierarchy results.



It is an effort to a determine the relative value of every job in a plant to determine what the fair basic wage for such a job should be.

Objectives:(a) To determine the rate of pay for each job which is fair and equitable with relation to other jobs? (b) To provide standard procedure for determining the relative worth of each job. (c) To ensure that, like wages are paid to all qualified employees for like work. (d) To enable management to gauge and control payroll cost more accurately. (e) To promote a fair and accurate consideration of all employees for advancement and transfer.

Principles of Job Evaluation:o

Rate the job and into the man.

Elements selected for rating should be as few number as will cover the requisites of job and easily explainable.

Elements should be clearly defined and properly selected.

Any job rating plan must be sold to foremen and employees and make to participate in rating.

While talking to foremen and employees, any discussion on money should be avoided.

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Steps in Evaluation:1. Analyse and prepare job description. 2. Select and prepare job evaluation plan involves breaking of job, selection of factors elements needed for the performance of all jobs for which money is paid and preparing instructions for evaluation. 3. Classify jobs – grouping or arranging and relating to money value. 4. Install the programme – involves explaining it to employees and putting it into operation. 5. Maintain the programme.

Advantages of Job Evaluation:

Provide objective criterion to decide basis wage for a job.



Eliminates wage inequalities



Helps to avoid wage disputes



Involves job analysis which provides valuable information for effective selection and training of employees.



Exhibits control over wage bill.

Limitations:Rapid changes in technology and demand of particular skills have given rise to problems of adjustment. Job evaluation takes into account only the worth of job and not the labour market conditions. It is time-consuming and required specialized personnel. It does not takes into account differences in performance of different workers performing the similar job.

Methods of Job Evaluation:-

Methods of Job Evaluation

Non quantitative (or) Non analytical

Quantitative (or) Analytical

1. Ranking System:-

1. Ranking 2. Grading or job classification

3. Point system 4. Factor comparison system

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Jobs are compared with each other and a rank is assigned to each job, according to level of duties, responsibilities and qualifications involved. Jobs are not split into their component parts and comparison is made on the basis of whole jobs. Merits:1. Simple, easy to understand 2. Less expensive 3. Less time, less work, fewer forms. Demerits:1. No standard basis for comparison 2. Specific job requirement are not analysed separately 3. It just ranks and does not show how they differ.

Job classification or grading:After formulating job descriptions and job specifications, jobs are grouped into classes or grade which represents different pay levels ranging from low to high by a committee, general grade descriptions are written for each job classification and they are used as standards for assigning all other jobs to a particular pay scale.

Procedure:1.

Preparation of job description

Preparation of grade description

Selection of grades and key jobs.

Classification of all jobs

Merits:1. Simple and easy to understand 2. Less time 3. Used in government services Demerits:1. Difficult to frame grade level descriptions 2. Unsuitable for larger organization.

Point System:Steps:1. Jobs are analysed into main factors or requirements 2. Different degrees for each factors are decided. 3. Points are assigned to each factor according to its importance for a job. 4. Points assigned to each factors are distributed among figures of each factor.

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5. After determining degree to each factor, the corresponding number of points of each factor added and this will indicate the relative worth of a job.

To sum up this method involves 4 steps like: a. Determining types of jobs to be evaluated b. Choosing common factors to the jobs to be evaluated. c.

Constructing factor scales

d. Finding point value for each job

Merits:1. It gives numerical basis for wage differentials 2. Once scales are developed, they can used for long time and 3. Understandable 4. Factors rated by points, hence easy to assign money value. 5. Prejudice and human judgment minimized. Demerits:1. Costly-system calls for heavy expenditure. 2. Defining factors, factor degree â&#x20AC;&#x201C; time consuming and difficult. 3. Difficult to determining factor level within factors and assign values to them. st

1 Stage: Deciding factors like skill, efforts, responsibility nd

Stage: Breaking factor into sub factor forces; skill broken into education, experience

training. rd

3 Stage: For each sub-factor draw up degrees for us: for sub-factor post â&#x20AC;&#x201C; graduate, etc. 4. The factor comparison method:As name indicates, this method involves comparison between jobs in terms of common factors.

Steps:1. Select and define the factors: Factors common to all jobs are choosen and defined clearly skills; effort, responsibility and working conditions are main factors.

2. Select key jobs: Key jobs serve as standard against which other jobs can be compared. A key job is one whose contents have become stabilized over a period of time and whose age rate is considered to be accurate.

3. Rank key jobs by factors:

Key

Skill

Effort

Responsibility

Working

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jobs

conditions

4. Decide rates for key jobs

5. Distribute rates:The rate decided for each key job is apportioned among its factors.

Key

Wage rates daily

Skill

Effort

Responsibility

jobs

Working conditions

40.00

12.50

14.00

12.00

1.50

36.25

8.75

14.50

5.50

7.50

35.00

11.00

7.25

10.00

1.75

30.00

6.25

10.25

6.00

8.00

6. Evaluate remaining jobs:Other jobs can be evaluated by comparing them to the key jobs in terms of each factor on comparison if a job (X) is joined to be similar to key job A in skill (12.50) and B in effort (7.25) and C in resp. (5.50) and D in working conditions (8.00). Then add all the rates.

Merits:1. Systematic, quantitative method. 2. Easy system 3. No translation from points to money. 4. Reliability greater 5. Limited no of factors tends to reduce the over lapping and over-weighting of factors.

Demerits:1. Costly and difficult to operate for one who is not acquainted with general nature of job evaluation. 2. System is complex. 3. Using the same factors for all jobs may not always be appropriate.

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Wage and Salary Administration:Wages is a matter of great importance in the industrial field. Majority of labour problems are related to wage payment. The efficiency of workers, their interest, involvement of their attitude towards employees is also based on wage payment. Wage payment is important to employees also as their profit depends on the total wage bill. They intended to pay low wages. As a employer he should have moral and social responsibility to pay fair and equitable wages. First let us understand the difference between wage and salary.

Wage:Wage is compensation to the employees for the services rendered to the organization. The quantum of services rendered by an employee is measurable, the compensation is called wages.

Salary:In case the quantum of services is difficult to measure it is called salary. Payment made to labour is generally referred as wages. Money to paid to persons whose output cannot easily measured such as derived and supervisory staff in generally referred as salaries.

Factors affecting wages:The following factors should be taken into consideration in determining wage and salary structure: 1) Government Legislation: wages and salaries canâ&#x20AC;&#x2122;t be fixed below to the level prescribed by the government.

2) Supply and Demand: If anything works to decrease the supply of labour such as restriction by the particular trade union, there will be a tendency to increase the wages. If anything works to increase the employeeâ&#x20AC;&#x2122;s demand to for labour, there will be a tendency to increase the wage.

3) Ability to pay: Ability to pay is an important factor affecting wages, not only for the individual firm but also entire economy or industry.

4) Labour Unions: The labour unions attempt to work and influence the wages primarily by regulating or affecting the supply of labour.

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5) Cost of Living: This approach tends to vary money wage depending upon the variation in the cost of living index, following rise or fall in the general price level and consumer price index.

6) Productivity: Productivity is the key factor in the operation of a company. High wages and low costs are possible only when productivity increase appreciably.

7) Personal perception of wages: Even though the wage is above the going wage rate in the community, if it is lower than that of fellow worker deemed inferior, it will be regarded as inequitable in the eyes of the recipients of the wages.

In addition, there are several factors which do affect the individual difference in wage rates. The most important factors which affect the individual differences in wages. Rate is: (1) Worker capacity and age (2) Educational qualification (3) Work experience (4) Hazards involved in work (5) Promotion possibilities (6) Prevailing wage in community. (7) Stability of employment (8) Demand for the product (9) Profits or surplus earned by the organization

Wage and salary differentials serve many useful purposes including: (1) To induce employees to change job. (2) To get employees to learn and acquire new skills. (3) To shift employees from declining industries to new industries. (4) To get employees to accept more responsible positions.

Objectives of Wage:(1) Control of costs (2) Establishment of fair and equitable remuneration (3) Utilitisation of wages and salaries as an increase to greater employee productivity (4) Maintenance of a satisfactory public relation image.

Principles of Wage Administration:-

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1) Wages policies developed by having in mind the interest of (a) Management, (b) Employees, (c) The consumers and (d) The community. 2) To ensure the uniformity and stability of wage policy it should be written. 3) Wage decisions should be checked against the wage policies. 4) Management should see to it that the employees know and understand the wage policies. 5) Wage policies should be evaluated from time to time. 6) Departmental performance should be checked periodically 7) Job description and performance rating should be checked periodically.

Basic Wage systems:There are two principle system of wage payment: 1. Time rate system and

2. Piece rate system.

Time Rate System:The worker is paid the amount of time spent on the job. This is the oldest and most common system and the wages are based on a certain period of time during the course of work.

Suitability of Time Rate System:1. It is difficulty to fix the standard time for doing job. 2. Quality of work is paramount importance 3. Job related to office or clerical work. 4. Collective effort to be needed for completion of job. 5. Mental work is involved much 6. Production process is complicated and demands high degree of skills.

Piece Rate System:The wages paid according to the amount of work completed or the number of units of goods turned but irrespective of time taken to complete the work.

Suitability of Piece Rate System:1. The methods of production are standard. 2. Productivity is to be increased. 3. The degree of physical work is more than the mental work. 4. The work does not require personal skills of higher order.

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Time Wages Vs Piece Wages:-

Basis

Time Wage System

Piece Wage System

Time or output

Wages on the basis of time

Wages on the basis of number

spent on the job

of units produced.

Guarantee of certain minimum

wages to every worker

wages

Productivity

Productivity may be low

Productivity may be high

Quality

Quality of work is very high

Quality of work need not be

Guaranteed wages

guarantee

minimum

very high Supervision

Close supervision is required

supervision

nor

required Maintenance cost

Support

Maintenance cost is low as

Maintenance cost is high as

machine and equipment are

employees increase the speed

properly handled

of machine

Employees

and

trade

support time rate system

union

Employees

and

efficient

employees prefer piece rate system

Incentive wage plans:The incentive plans offer an attraction of extra payment for efficiency or more production. The basic object of any incentive plan is to increase the production by giving an inducement to employees in the form of higher wages. Incentive plans may be either time based or production based. Under time based standard time is determined, the worker will get incentives if he completes the job in less than the standard of output is determined on scientific basis, and payment of wages is made on the basis of number of units produced by a workers.

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Systems of Wage Payment

Time Rate System

Piece rate system

Wage incentive plan

Individual incentive

Based on time

1. 2. 3. 4.

Hasley Plan Rowan Plan Emerson Plan Bedeaux Plan

Based on Productivity

Group incentive

Scanlon Plan Priestman Plan

1. Taylor Plan 2. Merrick Plan 3. Gantt Plan

Halsey premium plan: If a worker performs his job in less than the standard time, he is given bonus. But there is no penalty for performing the job in more than the standard tie fixed.

Total wages (W) = S x R + 50% (S - T)x R Standard Time

Rate per hour = R Time taken = T Rowan Plan : Itâ&#x20AC;&#x2122;s the modification of the Harley Plan efficiency is measured on

as =

Time saved Standard Time

As the time saved increases, time taken will be reduced and as such bonus would increase at diminishing rate. This will check over-speeding and overcome a major drawback of Halsey plan.

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Total Wages (W) = S x R +T x R x

76 Time saved Standard Time

Emerson’s efficiency plan:For determining efficiency standard output per unit of time or standard time for the job is determined. Efficiency is to be measured on the basis of comparison of actual performance with the standard fixed. For (eg) the standard performance is 80 units, while the actual performance of a worker is 60 units, obviously the efficiency is only 75%. According to Emerson, bonus need not be paid to those workers whose efficiency is less than 66.67%. The rate of bonus will be increased along with the increase in efficiency. Bonus for the efficiency in between 66.67 – 100% is 20% bonus. Beyond 100% efficiency, Bonus at 30% will be paid.

Bedeaux Poit Plan:Generally the bonus paid to the workers is 75% of the wages for time saved. The remaining 25% goes to the foremen or supervisor.

Total Wages (W) = S x R + 75% of value of Time saved.

Taylor’s differences piece rate system:Here no guarantee for minimum wages. Wages depends on efficiency of the worker. In his plan, he suggest 2 piece rate system. The lower rate to the worker who is an average or less efficient and higher piece rate is suggested output is 50 units per day. The piece rates fixed are Rs. 3/- and Rs. 2/- per unit. This who will give the output of 50 or above they will get Rs. 3/- per unit and those output is less than 50 units they will get Rs. 2/- per unit.

Merrick multiply piece rate plan:This plan offers three grade piece rate rather than 2 offered by Taylor. The worker who produce less than 83% of the standard output are paid at the basic piece rate. These producing from 83% to 100% of the standard profit are paid 110% of the basic piece rate. Lastly the worker producing more than 100% of the standard output are paid 120% of the basic piece rate. Gannt’s task:-

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If a worker achieves the definite task, he gets extra wages varying between 25% to 50% of the hourly rate for the time allowed for the task. If a worker falls to complete the task within the standard time, he receives only the wages for actual time spent at the specified rate suppose, the standard time for a job 8 hour, time rate is Rs. 10/- per hour and the bonus 25% or the standard time. If a worker completes the task within six hour, he will get Rs. 80/- plus 25% the day wages. (i.e) Rs. 20/- Thus he will get Rs. 100/for six hour.

Scanlon plan:This is a group plan. Bonus is paid at the rate of 1% for every 1% increases in productivity. Benefit is given to all the employees will not paid fully certain percentage paid and rest will be sent to “Reserve Fund”.

Priestman Plan:Bonus is paid when output exceed the standard output or when the average output of a worker per hour shows an increase as compared to that of the previous year.

Merit Rating:Performance appraisal, personnel rating, merit-rating or performance evaluation is one of the most important function of personnel management. People differ in their abilities and aptitudes. The personnel management should know these differences to develop various development programmes in the organization to have an efficient work force. Merit-rating technique has been evolved to know the relative worth of the employee – quantitatively and qualitatively – on the job, in comparison to other fellow worker. Merit-rating is used for measuring the merit or performance of an employee and comparing it with that of others in the same group. According to Flippo, “Merit-rating is a systematic, periodic and, sofar as humanly possible, an impartial rating of an employee’s excellence in matters pertaining to his percent job and to his potentialities for a job.” According to Denyer, “Merit-rating is an assessment according to individual ability which may be rewarded by additional payments to the ordinary rates of pay for the different job. According to Yoder, “Performance appraisal refers to all formal procedures used in working organization to evaluate personalities and contributions and potential of group members. The purpose of merit-rating is to determine an employee’s worth to the organization. The following factors or qualities are generally considered: a) Ability and capacity to do the assigned work. b) Skill and capabilities c) Personal qualities of the employee and his work habits like dependability, cooperation, etc. d) Quantity and quality of output.

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e) Supervisory qualities.

Distinction between merit-rating and job evaluation:1. Merit-rating rates the man and not the job as it is concerned with assessing of the abilities to the individuals. But the job-evaluation rates the jobs in order to determine their worth. 2. Job-evaluation is used as a basis of wage structure while merit-rating is used as the basis of sound personnel policy in relation to transfer, promotion, etc. 3. The purpose of job-evaluation is very limited i.e., to determine the worth of the job in terms of money while the purpose of merit-rating is to appraise the performance of individuals for the purpose of better placement through promotion, transfer, training, dismissal, etc. 4. Job-evaluation tries to define the place of the job in the organization or in the occupation level. Meritrating on the other hand, appraises the relative performance of the employeeâ&#x20AC;&#x2122;s qualities or traits so as to know the difference in personnel abilities.

Steps for Designing and Effective Merit-rating Programme:1. Determining objectives: - It is advisable to set the objectives of the rating. 2. Establishing the standard of performance:- now it is necessary to establish the standard of performance against which their performance should be compared. 3. Selection of Appraiser: - It should be decided well in advance who will be the appraiser. Generally the appraiser is immediate superior of the man to be appraised because he is the most familiar to them and their work. 4. Collection of Data: - the appraiser starts collecting the necessary information relating to jobs and the worker. Appraisal forms should be different for different types of jobs as clerical, mechanical, technical, etc., and all the information collected should be depicted in the forms especially designed for the purpose. 5. Rating the Employee: - After collecting the information, the rater evaluated the worth of the employees by applying any of the methods of performance appraisal and estimates their potential for future development. 6. Consultation: - The appraiser after completing the rating process discusses the situation with supervisor and union representatives and defies the performance level and incorporates the valuable suggestions if any, given by them. 7. Designing the Development: - The appraiser prepares the rating report and submits it to the review committee which reviews the report and accepts it. Reviewer interviews the employee on the basis of the report. The interviewer submits the report to the top executive who design the various development programmes in consultation with supervisors.

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8. Follow-up :- the review of performance appraisal should be made frequently as a follow-up programme. It should most probably be made yearly or half-yearly. New employees should be rated more frequently than the older ones.

Review Questions:-

1. Define HRM. 2. Point out some objectives of HRM. 3. Briefly explain the functions of HRM. 4. Define selection. 5. State various steps in selection process. 6. Define training. 7. Elaborate the various types of training. 8. Define job evaluation. 9. Define merit-rating. 10. Distinguish B/W performance appraisal and merit-rating. 11. Define wage & Salary Administration. 12. Point out few principles of wage & Salary Administration. 13. Mention few words about Basis wage systems. 14. Explain in detail about various inventive plans.

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