HUMAN RESOURCE MANAGEMENT – (MBA) NOTES

HRM Features Misconceptions on HRM

• Pervasive force • Lack of expertise
• Action oriented • Alienation from the mainstream
• Individually oriented • Facination with latest fads
• People oriented • Lack of respect
• Development oriented
• Integrating mechanism Features of HRD
• Comprehensive function - System
• Auxiliary service - Planned process
• Inter-disciplinary function - Development of competencies
• Continuous functions - Inter-disciplinary concept

Objectives of HRM Importance of HRM

• Help organization to reach goals - Attract and retain best people in organization
• Employ skills and abilities of workforce - Appropriate recruitment and selection identify
efficiently best people
• Provide organization with well-trained and well - Performance appraisals and training develop
motivaated employee individuals
• Increase fullest employee job satisfaction and - Motivation members
self-actualization
• Develop and maintain quality of work life
• Communicate HR policies to all employees HRD Mechanisms or Sub-systems
• Maintain ethical policies and behaviour - Performance appraisal
- Potential appraisal
- Career planning
- Training and Employee development
- Organisation development
- Rewards
- Employee welfare and quality of life

Function of Personnel Management

1. Managerial functions
- Planning
- Organizing
- Directing
- Controlling

2. Operative functions
- Employment
 Job analysis, Human resource planning, recruitment, selection,
placement, induction and orientation.

- Human Resource Development

 Performance appraisal, training, management development, career
planning and development, organization development.

- Compensation
 Job evaluation, wage and salary administration, incentives, bonus, fringe
benefits, social security measures (compensation, maternity benefits,
sickness benefits, medical benefits, disablement benefits, dependent
benefits, retirement benefits etc.)

- Human Relations
 - Effectiveness of Human Resource Management
 Organisation health, Human resource accounting, audit and research

Advantages of Personnel policies: Characteristics of Personnel Policy:

- Delegation - Related to objectives
- Uniformity - Easy to understand
- Better control - Precise
- Standards of efficiency - Stable as well as flexible
- Confidence - Based on facts
- Speedy decisions - Appropriate number
- Co-ordinating devices - Just, fair and equitable
- Reasonable
- Review

Policies of Personnel Department Qualifications/Qualities of Personnel Manager

- Social responsibility o Personal attributes
- Employment policies  Intelligence, educational skill, discriminating
skills, executing skills
- Promotion policies o Experience and training
- Development policies o Professional attitudes
- Relations policies

Roles of Personnel Manager Total Quality Management (Very important)

 Advisory role The main ideas
 The conscience role  Do it right the first time
 Counsellor role (fix, inspect, build, design it in approach to quality)
 Mediators role  Be Customer centered
 Representative role  Make CIP a way of life
 Clerical role  Build team work and empowerment
 Fire fighting / Legal role
 Welfare role Uses of Job Analysis
 Problem solver role  HR planning
 Change agent role  Recruitment
 Decision making role  Selection
 Executive role  Placement and orientation
 Training
Job Analysis Information  Counselling
 Job identification  Employee safety
 Important characteristics of job  Performance appraisal
 What typical worker does  Job design and redesign
 Job duties  Job Evaluation
 Material and equipment the worker uses
 How job is done Methods of Collecting Job Analysis data
 Required personnel attributes  Job performance
 Job relationship  Personal observation
 Critical incidents
Process of Job Analysis  Interview
 Organisation analysis  Questionnaire method
 Selection of representative positions-analysed
 Collection of JA data Methods of Job Evaluation
 Preparation of job description  Ranking method
 Preparation of job specification  Classification methods
 Factor comparison method
Process of Job Evaluation  Point method
 Gaining acceptance
 Creating job evaluation committee Recruitment – The legal environment
  Fining the jobs to be evaluated
 Analysis and preparing job description
 Selecting the method of evaluation
 Classifying jobs
 Installing the programme
 Reviewing periodically
 THE FACTORIES ACT 1948
 THE APPRENTICES ACT 1961
 THE EMPLOYMENT EXCHANGES ACT 1959
 THE CONTRACT LABOUR ACT 1970
 BONDED LABOUR SYSTEM (ABOLITION) ACT
1976
 THE CHILD LABOUR ACT, 1986

Importance of Human Resource Planning Methods of Selection Testing

 Reservior of Talent  Intelligence Testing
 Prepare people for the future  Aptitude Tests
 Expand or contract  Personality Tests – Projective, interests tests,
preference tests
 Cut costs  Achievement Tests
 Succession planning  Simulation Test
 Assessment Centre – In-basket, leaderless
group discussion, business games, individual
presentations, structured interview
Recruitment Sources – External & Internal  Miscellaneous tests – Graphology, polygraphy /
lie-detector, honesty tests
Methods of Recruitment
- Internal Method Objectives of Induction
 Promotion and transfers Remove fears, Create good impression and act as a
 Job posting valuable source of information.
 Employee referrals
- Direct Method
 Campus recruitment
- Indirect Method Steps of Induction programme
 Newspapers ads Welcome, explain abt co., show location of dept,
co.manual, details on work groups / unionism, details on
pay benefit, holidays, attendance, leave etc., training
opportunities, clarify questions, guided tour of facilities /
bldg.
 Television and radio ads
- Third Party Method Purposes of Transfer
 Private employment search firms  To meet organization requirements
 Employment exchanges  Satisfy employee needs
 Gate hiring and contractors Unsolicited
applicants / Walk – Ins.
 Better utilize employee needs
Purpose of internal mobility  Utilise employees
 Improve organization effectiveness  Make employee versatile
 Improve employee effectiveness  Adjust workforce
 Adjust to changing business operations  Provide relief
 Ensure discipline  Reduce conflicts
 Punish employees
Types of transfer
 Production transfers Separations
 Replacement transfers  Temporary leaves of absence
 Rotation  Resignation
 Shift  Retirement CRS, VRS
 Remedial  Death
 Penal  Lay off and retrenchment
 Outplacement
Types of Training  Suspension
 Orientation training  Discharge and dismissal
 Job instruction training
  Referesher training
 Apprenticeship
 Vestibule
Training procedure / steps
Preparing the instructor, preparing the trainee,
Getting ready to teach – plan, prepare, don’t cover
too much, logically, discuss, repeat, materials,
quality, procedures etc. Presenting the operation,
Try out the trainee’s performance, follow up.
Methods of Training
 Job instruction training (JIT)
 Coaching and Mentoring
 Job Rotation
 Apprenticeship training
 Committee assignments
 Off the job methods – Vestibule training, role
playing, lecture method, conference / discussion
approach, programmed instruction
 Behaviourally experienced training

Steps in Organisation of MDP (mangt.Dev.Prog.) Methods / Techniques of MDP

 Analysis of orgn.dev.needs
 Appraisal of present mangt talents
 Inventory of mangt. Manpower
 Planning of individual development prog.
 Establishment of devpt prog.
 Decision making skills – In-basket, case
study, business game
 Iner-personal skills – Role play, sensitivity
trg.,
 Job knowledge – on the job exp, coaching,
understudy
 Organisational knowledge – job rotation,
multiple mangt.
 General knowledge – special courses,
meetings, specific readings.

Career Stages Process of Career planning

 Exploration  Identifying individual needs and aspirations
 Establishment  Analysis of career opportunities
 Mid career  Aligning needs and opportunities
 Late career  Action plans and periodic reviews
 Decline / Late stage
Individual Career Development – Steps
Organisation career development – Tools  Performance
 Self-assessment tools  Exposure
 Individual counseling  Networking
 Information services – job posting, skills  Leveraging
inventory, career ladders and paths,
resource centre
 Employee assessment programme –  Loyalty to career
assessment centres, phychological tests,
promotability forecasts, succession planning.
 Employee development programmes  Mentors and sponsors
 Career programmes for special groups  Key sub-ordinates
 Expand ability
Effective career planning
Support, goals, reward performance, placement, Performance appraisal–Useful / objectives
Career paths, continuous tracking, publicity. Compensation decisions
Promotion decisions
Performance Appraisal process Training and development programmes
Establish performance standards Feedback
Communicate the standards Personal development
Measure actual performance
Compare actual performance with std. & discuss
appraisal
Take corrective action, if necessary

Methods of Performance Appraisal

Performance Appraisal Techniques
 Individual Evaluation Methods Multi-person Evaluation Other Methods
Methods
 Confidential report  Ranking  Performance tests
 Essay evaluation  Paired comparison  Field interview techniques
 Critical Incidents  Forced distribution
 Checklists Group appraisal
 Graphic rating scale Human Resource accounting
 Behaviourally anchored Assessment centre
rating scales Field review
 Forced choice method
 MBO

Characteristics of Effective Appraisal system Objectives of Compensation Planning

 Reliability and validity  Internal equity
 Job relatedness  External Equity
 Standardisation  Individual equity
 Practical viability  Attract talent
 Legal sanction  Retain talent
 Training to appraisers  Ensure equity
 Open communication  New and desired behaviour
 Employee assess to results  Control costs
 Due process  Comply with legal rules
 Ease of operation
Wage policy in India
Minimum wage, fair wage and living wage Methods of Wage Payment
 Time wage system
Type of Fringe Benefits  Guaranteed time rates
 Payment for not worked – hours of work,  Piece rate system – straight piece rate,
paid holidays, shift premium, holiday pay, guaranteed time rate with piece rate,
paid vacation. differential piece rate
 Employee security – retrenchment & lay off  Incentive plans
comp.
 Safety and health
 Workmen compensation How to Motivate
 Health benefits – sickness, maternity,  Recognise individual differences
disablement, dependant, medical etc.  Match people to jobs
 Voluntary arrangements  Use goals
 Welfare and recreational facilities – canteen,  Individual rewards
consumer stores, credit societies, housing,  Link rewards to performance
legal aid, employee counseling, welfare  Check the system for equity
orgn. & officers, holiday homes, educational  Don’t ignore money
facilities, transportation, parties and picnics,
miscellaneous – sports, clubs, community
service etc.
 Old age and retirement benefits – PF,
pension, gratuity, ESI, medical benefits etc.

Maslow Need of Hierarchy in Motivation

Self-Actualisation Needs Realising ones potential, for becoming capable

Esteem Status and recognition

Social needs Love, affection, belongingness, acceptance, friend

Safety needs Economic threat & physical harm, layoff, dismissal

 Physiological needs Air, water, food, clothing

Work scheduling Team Development – Tips

 Compressed work week  Balanced roles
 Flexible work hours – flexitour, gliding time,  Open communication
variable working hours, maxiflex, flexiplace  Handling stress
 Job sharing  Team choices
 Part time work  Team goals
 Review mechanism
 Shared leadership
 Facilitation skills
 Shake off the constrains of the past
 Consensus.

Roles of a Supervisor Objectives of Trade Union

 Scientific Management Roles – Technician,  Wages and salaries
analyst, controller  Working conditions
 Human Relations Roles – Counsellor, linking  Discipline
pin, human relations expert, person caught  Personnel policies
in middle, motivator, trainer  Welfare
 Functional roles – Leader, organizer,  Employee – employer relation
planner, decision maker.  Negotiating machinery
 Safe guarding organization health and
interest
Union Problems
 Trade union leadership Collective bargaining – Features
 Multiple unions  Collective
 Union Rivalry  Strength
 Finance  Flexible
 Other problems – education, low wages and  Voluntary
std. of living, self confidence, victimization,  Continuous
failure to realize help and welfare, negative  Dynamic
attitude.  Power relationship
 Representation
Types of Bargaining  Bipartite process
 Conjunctive / distributive bargaining
 Co-operative bargaining Disciplinary Action for Grievance
 Productivity bargaining  Issuing a letter for charge
 Composite bargaining  Consideration of explanation
 Show cause notice
Types of Strikes  Holding of a full fledge enquiry
Sympathetic strike  Making a final order of punishment
General Strike  Follow up.
Unofficial strike
Sectional Prevention of Industrial disputes
Bumper  Trade unions
Sit down – tool down, pen down  Joint consultations – works committee, joint
management councils
Slow down  Standing orders
Lightning strike  Grievance procedure
Hunger strike  Code of discipline.

Industrial disputes – Strikes, lock outs, gherao, Conciliation officer, board of conciliation and court of
picketing and boycott enquiry work based on Voluntary arbitration,
adjudication, labour court, industrial tribunal, national
tribunal, appraisal.