Introduction

Human resources create organisations and help them to survive and prosper.
They essentially enable organisations to retain people. Through their : philosophies,policies,procedures and practices.

Lessons objectives
Objectives of HR. Importance and changing role of HR. Origin and growth of HR in India. Reasons for slow growth of HR in India. Evolving role of HR-Man. HR AUDIT

Definitions of HRM
Flippo states HR as:
Planning ,organising,directing and controlling of the procurement,development,compensationi ntegration,maintenance of human resource to the end that individual,organisational and societal objectives are accomplished

Objectives of HRM
To improve the service rendered by the enterprise through building better employee morale.
To establish in the minds of everybody.

To create and utilise an able and motivated workforce.

contd
To recognise and satisfy individual and group needs. To employ the skills and knowledge of employees efficiently and effectively. To strengthen and appreciate the human assets.

Contd
To maintain morale and sound human relations. To enhance job satisfaction and self actualisation. To develop QWL.

Scope of HRM
Nature of human resource management. Employee selection. Employee remuneration Employee motivation Employee health and safety. Industrial relations. Employee education.

Importance of HRM
Corporate
Proffesional Social

National

Corporate
Good HR practices help in attracting and retaining good people. Develop right skills and attitude. Securing cooperation of employees through motivation. Effectively utilising human resources.

Professional
Improve QWL. Opportunity for development. Allocating work properly and scientifically. Maintaining healthy relation between individual and groups.

Social
Employment opportunities multiply.
Scarce talentys are put to best use. Organisation which treat human resource as assets have excellent results.

Contd
Balance between job and job seekers.
Provides suitable employment that gives social and psychological satisfaction to people.

National
Effective human resource practices at national level bring great economic growth.

Changing role of HRM

Recognise talent and nurture . Shifting from a protector to planner. Help in changing from traditional to modern.

Selection process more appropriate and benefit package more individualistic.

Functions of personnel management

Operative Functions

Managerial functions.

Operative functions
Procuring
Developing and compensating Utilising

Maintaining an efficient work force.

Managerial functions
Planning
Organising Coordination

Directing

Contd
Motivating

Controlling.

Personnel management policies

Acquisition of personnel
Training and development Appraisal and compensation of human resource. Human resources Mobility.

Contd
Working conditions and work schedules Industrial relations.

Role of Personnel Manager

Departmental administration.
Recruitment,selection,Job analysis,job description and performance appraisal. Training and induction Wage and salary.

Contd
Benefits and servicesinsurance,medical facilities,retirement benefits.
Collective bargaining

Personnel research.

Difference between big and small

Clue
Structure Hire

Fire,wage and salary

Staff role of HR-Dept

Policy formulation.
Advising Assistance and service

Monitoring and control.

Origin and growth of HR-India

1930-Royal commission formation.
Appointment of labour officers. Second world war.-welfare officers.

1947-Industrial disputes actIndustrial relation officers

Contd
1948-Factories act-welfare officers.
1959-Employment exchange act. 1961- Apprentice act.

Slow growth of HR
Late arrival of factory system
Low status of industrial worker. Professionalisation of HRM

Late awareness of social responsibility and Government attitude.

Factors impeding Growth

Abundance of cheap labour. Weak labour movement Authoritarian culture. Technological backwardness Instability in employment. Unhealthy growth of trade unions Migratory characteristics of Indian labour.

Evolving role of HR Man in India

Origin of Human Resource Management in India.
The Police Man The welfare Man. The Law Man.

Contd
The Liaison Man
The HR Man

HRM Model
Training and Development
Organisation Development Organisation /Job Design

Planning

Contd
Planning
Selection and staffing.

Training and Development

Training improves Changes and moulds the employees Skill,Behaviour,Aptitude and attitude towards the requirement of the job.

Training bridges the gap between job and employees specification.

Contd
Management development is a systematic process of growth and development by which their abilities to manage.
It is a planned effort to improve current current or future managerial performance.

Organisation Development
Organisation development is the modern approach to management of change and human resource development.
OD is a complex educational strategy

It is used to increase organisational effectiveness and wealth .

Contd
Through planned intervention.
Concentrates on norms,values,attitudes,relationship and organisational climate. Aims at improving the organisational effectiveness and job satisfaction of employees.

Organisation/Job design
Organisational design deals with structural aspects of organisation Aims at analysing roles and relationships Develops relationship between exercise of authority and exchange.

Contd
Michael Armstrong defines job design as job in term of its duties and responsibilities.
Understanding the job design to motivate the individual and the organisation.

Planning
HRP is defined as the process of assessing the HR needs in the light of organisational goals.
Efficient use of human,capital and technology. Estimation of future requirements.

Selection and staffing

Searching for prospective employees and stimulating them to apply. Selecting the right people at right time. Selection process involves judging on variety of dimensions.

Contd
Selection includes Application form Initial interviews Reference checks Physical examination Final interview.

Sub factors of staffing

Recruitment of getting applications.
Selection of the best. Transfer and promotion.

Training people who are qualified.

Importance of proper staffing

Helps in discovering talented employees. Ensures greater production. Avoids sudden distruption of enterprise Provides information to management for internal succession.

Personnel research and information system

Research means systematic and goal oriented investigation. Managers make decision and solve problems Research can lead to better HRM practices.

Compensation/Benefits
Wages and salaries (the payment received for performing work) are a major component of compensation

Reward process is to motivate the employees.

Benefits such as ESI,leave travel concession,non financial rewards such as security,recognition and privileges.

Employee Assistance
Providing personal problem solving
Counselling to individual employees.

Union /Labour Relations

Establishment of good albour relations. Building constructive attitude.

Environmental Influence on HRM

Technological Innovation
Economic factors. Employees organisation.

Labour markets.

Contd
Changing Demand of employers. Legal factors- Management of Human resource as per legislation enacted. Legislations enacted in India Factories Act, Trade Unions act,Workmens compensation act ,The payment of wages act,The minimum wages act,Payment of gratuity act,The maternity benefit act.

Human Resource in the Country

Change in structure of employment and their different backgrounds. Changes that have taken place in the structure of work force. Increased level of formal education.

HR Audit
HR records provide information regarding the utilisation of human resources.
Critical evaluation of man power programme is required to identify the areas where improvement required.

Contd
Audit is an important aspect of management control. It is evaluation of policies,programmes and procedures in the area of HR management.

Objective of HR Audit
Review the whole system of management.
To evaluate the extent to which line managers have implemented the policies and practices

To review HR system in comparison to other organisations.

Contd.
To locate gaps and lapses.
To evaluate various HR policies. To evaluate HR staff.

To seek answers to what ? Why? Why not?

Need of HR audit
To increase size of organisation.
To change the philosophy of management towards HR. To increase the strength and influence of trade unions.

Contd.
To change HR management philosophy,personnel policies and practices.
To increase dependence on the HR system.

Indicators of HR audit
Procurement
Qualitative indicator Personnel inventory,replacement tables,organisation planning,job description,specification,source evaluation,exit interviews,induction.

Procurement
Quantitative
Turnover rates,selection rates,retrenchment,dismissal,layoffs,recruitment ratios.

Utilisation
Identificatin of merits
Quantitative Capacity utilisation,idle time,statistics,extra-time statistics,backlogs,turnover per employee,profit per rupee.

Training and development

Training programmes,supervisory and management development programmes,systematic promotions,career planning.
Time taken in training,apprentice ratios,scrap losses,productivity increases.

Compensation
Job evaluation programme,wage and salary surveys,complaint from employees about wage and salaries.
Wage and salary differentials,bonus,ctc.

Integration and maintainance

House organ,employees hand book,employees voluntary participation in optional service programmes. Quantitative
Measured morale,measured communication,absenteeism and turnover rates.

Labour relations
Labour management committes,contract interpretations,no strike clause.
Work stoppages,grievances and their settlement,arbitrations,costs.

Significance of HR Audit
Employees participation in organisational activities is essential for the success of the organisation. Provides the required feed back. CTC Governments intervention can be restricted.

Benefits of HR Audit
Identifies the contribution of HR department. Improves proffesional image Encourages greater responsibility and professionalism amongst members of HR department. Classifies the HR departments duties. Stimulates equality

Contd..
Identifies critical personnel problems
Timely compliance with legal requirements. Reduces Human resource cost.

HR Audit Areas and levels

Planning Staffing and development. Organising Motivation and Commitment Administration. Research and innovation.

Planning
Level-1 Personnel shortage,supplies,layoff
Level 2 Time bound,Cost benefit,budget

Level-3 Present and future plans.

Staffing and Development

Level-1Recruitment cost,training cost
Level-2 Inhouse and outhouse training programmes. Level-3 Non Discrimination.

Organising
Level-1 :Feedback,reader interest,extent of formal organisation. Level-2 :Job definition for individuals,departments,task forces,house organs etc

Level-3 : Reduces resistance to change,effective 3 way communication.

Motivation and commitment

Level -1 : Productivity,performance norms,comparitive cost. Level-2 :Job enlargement,morale survey,exit interviews Level-3 :High personnel identification,whole sale satisfaction.

Administration style
Level-1 : Suggestion,promotion,union management Level-2 Consultative supervision,collective bargaining,union management committes.
Level-3 :Style adopted.

Research and innovation

Level-1 : Changes ,experiments research reports,publication. R&D approach in all areas
Level-3 Test all old new theories.

Scope of HR audit
Forecasting
Recruitment, selection ,careers,promotions ,training Areas of leadership,welfare,PA.

HR Audit Process
Identify indices,indicators,statistical ratios
Variation in time frame. Variations of different department. Draw trend lines and submit report.

Audit results
Close look at the policies,manuals,procedures Trends in manpower utilisation.
HR depends on HR audit for improving his own performance.

Audit Report
Table of contents. Preface. Executive summary Area wise data,department wise,individual wise then analysed Summary of analysis Appendix Bibliography.The audit report needs to be signed by all members.

Unit-2 HR Planning
HR Planning is the predetermination of the future course of action chosen from a number of alternative course of action for procuring,developing,managing,motivating ,compensating,career planning,sucession planning and seperating the human element of enterprise.

Definition of HRP
HRP is the process which includes forecasting,developing and controlling by which a firm ensures that it has right kind of people at the right place in the right time for doing work which is economically most useful. By Geisler.

General characteristics of HRP

HRP must incorporate the human resource needs in the light of organisational goals. HRP must be directed towards well defined objectives. Right number of people in right place Should pave way for effective motivational process

Contd
Periodical review and changes.
Adequate flexibility should be maintained in HRP.

Objectives of HRP
Plan adequate number of people to achieve organisational objectives. HR planner should have timing and scheduling of HR planning. Aid in framing training and development.

Importance of HR planning
Planning acts as a base for recruitment. Employees can be trained and developed in advance. A balance of Human resource can be created.

Contd
To keep the cost of recruitment in check. To bring a resorvoir of talent
Appropriate man power budget can be created.

Contd
Allows top management to participate actively in HR functions.

Process of HRP
Analysing organisational plans and objectives. Analysing factors of manpower requirement. Demand forecasting Supply forecasting.

Contd.
Developing employement plans
Job description Job specification. Developing Human resource plans.

Strategies for HRP

Collect ,maintain and interpret relevant information regarding HR. Peridically report manpower objectives,requirements and exisisting employment and allied features. Techniques to understand the requirement of manpower.

Contd
Measures of manpower utilisation as components of forecasting. Suitable techniques for allocation of work. Develop and employ methods of economic assesment of HR.

CONTD.
Should evaluate the procurement,promotion and retention of the effective HR. Should analyse the dynamic process of recruitment,promotion andloss to the organisation and controll them for maximum utilisation of individual and group.

Advantage of HRP
Improvement of labour productivity.
Recruitment of qulified HR Adjusting with rapid technological changes Reducing labour turnover.

Contd.
Control over recruitment and training costs . Mobility of labour. Facilitating expansion Programmes.

To treat manpower as corparate assets.

Limitations of HRP
Inaccuracy
Uncertainties Lack of support.

Number Game.

Contd
Employees resistance.
Lack of purpose Time and expense

Inefficient information system.

Guidelines for making HRP effective

Objectives
Top management support. Appropriate time horizon

Man power inventory.

Contd
HRIS.
Adequate organisation and coordination.

Responsibility for HRP

Assist ,counsel and pressurise the operating management to plan and establish objectives. Collect and summarise data.
Monitor and measure performance . To provide research necessary.

Job Analysis
The immediate out come of job analysis is job description. It is a statement explaining the contents and essential needs of job and a summary of the duty to be performed.

contd
Job description gives a precise picture of features features of each job in terms of task contents and occupational requirements.
Job description describes jobs not the job holder.

Contd.
It defines the scope of job activities,major responsibilities,positioning of the job in the organisation.

Advantages/Important function
Indicate very clearly the nature and content of the job to the applicant. Rewards and punishments can be legitimised. Job description serves as an important basis for wage and salary Easy to identify the training needs of the employee

Limitation of Job Description

Job tends to be dynamic,not static and a job description can quickly go out of date. The superior and subordinates should agree with the job description. Job description must be as accurate as possible but this is a very difficult job.

Job specification
Job specification is minimum qualities necessary to perform a job satifactorily.
Making job description as its base,it lays down the base of abilities and qualities.

Job Specification
Physical characteristics:Height,weight,vision,voice
Psychological characteristics:Analytical ability,mental concentration and alertness,mechanical aptitude etc

Personal Characteristics:emotional stability,good and pleasing manners.

Contd
Responsibilities: Responsibility for the safety of others, responsibility for generating confidence and trust,etc
Demographic characteristics : Age,gender, education,experience etc.

Recruitment
It is process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organisation.
Source of recruitment: Internal External

Internal sources
Promoting people internally.
Transfer Notified vacancy.

Merits of internal sources of recruitment

Absorbing people already acquainted with the company culture. Maintains internal motivation very high. Reduces labour turn over.

Less costly.

Demerits
Limits the choice of employees.
Can be biased as role of seniors can play an important role. It creates frustration among the unselected employees.

External Sources
Advertisements
Employment exchanges Campus recruitment.

Unsolicited applicants.

Contd
Labour contractors
Employee referrals. Field trips.

Merits of external source of Recruitment

Fresh talent and skill come into organisation. New employees may try to change old habits. Highly qualified and experienced employees

Contd
Recruitment happening from a large market,the best selection can be made.
External sources provide the requisite type of personnel having the required skill and standard.

Demerits of external sources

Reduce the morale of existing employees. Denial of carrier advancement for existing employees. Proper evaluation not be possible because of time constraints. External recruitment may require training.

Recruitment Policy
A policy is standing plan policies are directives A policy assits in decision making.
A frame work to implement and function.

Essentials of policy formulation.

Should be definite ,positive and clear Should be translatable into practice. It should be flexible at the same time should have great transperency.

Should take care of all anticipated conditions.

Contd..
Take care of sound judgement.
Should confirm economic principles,statutes and regulations. General statement of the established rules.

Recruitment policy involves

To find and employ the best qualified persons for each job. To retain the best talent by offering life-time carriers To facilitate personal growth on the job.

Good recruitment policy

Cover organisational objectives
Identification of recruitment needs. Ensure long term employment opportunities. Preffered source of recruitment.

Selection
Selection,either internal or external,is a deliberate effort of organisations to select a fixed number of personnel from a number of applicants .
The primary aim of employee selection is to choose those persons who are most likely to perfom their jobs with maximum effectiveness.

Definition of Selection
The hiring process is of one or many go-no-go gauges. Candidates are screened by the employer and the shortlisted applicants go on to the next hurdle while the unqualified once are eliminated.

Steps in selection procedure

Application blank
Initial interview of the candidate Employment test. Aptitude test Interest test Intelligence test.

Contd
Performance or achievement test.
Personality test. Interviews

Checking References

Contd
Physical or medical examination.
Final Interview and induction.

Placement
After selecting a candidate he should be placed on a suitable job.
Most organisation put new recruits on probation for a given period of time. The probation period may be extended if the employees do not perform.

Employees placement process

Collect details about the employees. Construct the employees profile. Match between sub group profile and individual profile.

Compare sub group profile to job family profile.

Contd.
Assign the individuals to job family.
Assign the individuals to specific job and future counseling and assessment.

Contd
Definition according to Pigors and Meyers have defined placement as determination of the job to which an accepted candidate is to be assigned and his assignment to that job.

Problems of placement
Employees expectation from the job. Expectation form the employers are more than the employees ability or skills. Technological changes might result in mismatch between the job and the employees. Change in the organisational structure may result in changes in the job.

Induction Programme
According to R.P.Billimoria induction is a technique by which anew employee is rehabilitated into changed surroundings and introduced to the practices,policies and purpose of the organisation.

Need for orientation

Anxiety of new employees.
Employee joins and finds job not according to expectation. Proper induction helps to gel new employees with old employees.

Steps in induction program

Welcoming the new recruit.
Providing knowledge about comp Providing with companies manual.

Location to work

Contd
Explain department.
Providing information about various groups. Details about pay,wage and salary. Disscusing career prospects.

Types of induction prgrm

General induction
Specific orientation Follow up Induction.

Chpt-3 Training
Training is a process of learning a sequence of programmed behaviour.
It is application of knowledge. It gives people an awareness of the rules and procedures to guide their behaviour and attempts to improve their performance on the current job.

Purpose of training
Is to achieve change. Enable to perform better This is achieved through bringing in positive change.

Contd
Knowledge-Helps trainees to know facts,policies,procedures and rules pertaining to job. Skills- helps him to increse the technical and manual efficiency. Attitude-Moulds his behaviour towards his co-workers.

Importance of training
Equips the management to face the changing pressure. Results in the increase of quantity and quality of output. Leads to job satisfaction and high morale. Need lesser supervision. Trained personnels can meet the competition of rival organisation.

Contd
Employees can increase their earning capacity. Moulds employees attitude and helps them achieve better. Economic use of material and equipments Reduces absenteesim and labour turnover.

Benefits of organisation
Higher productivity Better organisation climate Less supervision. Man power obsolescence. Economic operations. Prevents industrial accidents. Improves quality

Contd
Greater loyality.
Fulfills organisations personnel needs. Standardisation of procedures.

Benefits to employees
Personnel growth Development of new skills. High earning capacity Adjust with technology Increased safety Confidence

Types of training programmes

Induction or orienting training
Job training Promotional training

Refresher training

Contd.
Apprenticeship training
Internship training Vestibule training

Steps in training Programme

Discovering or identifying training needs. Preparing the instruction or getting ready for the job Preparing the trainee

Contd.
Presenting the operation
Try out the trainees performance Follow up or rewards and feedback.

Identifying the training needs

Organisational analysis.
Operational analysis Man Analysis :Reviews the knowledge,attitudes and skills a person must acquire

Preparing the instructor

Instructor is the key figure in the entire programme. He must know both the job tught and how to teach. Job must be divided into logical parts. Must have a lesson plan.

Preparing the trainee

Putting the learner at ease. Stating the importance and ingredients of the job and its relationship to work flow. Explaining why he is being taught. Creating interest and encouraging questions . Explaining the why of the whole job and relating it to some job the workeralready knows.

Contd
Placing the learner as close to his normal position as possible. Familiarising him with equipment ,materials,tools and trade terms.

Presenting the operations

Explain the course for the job. Do the job step by step according to the procedure. Explain each step that he is performing. Have the trainee explain the entire job.

Try out the trainees performance

The trainee is asked to go through the job several times slowly. Mistakes are corrected .
Repetitive practice.

Follow up
Testing the effectiveness of training.
Feed back on training effectiveness.

Selection of training method

Nature of problem area: operational problem or human resource problem.
Level of trainees in the organisation hierarchy Methods ability to hold and arouse the interest of trainees during the training period.

Contd
Availability of competent trainers.
Availability of finance. Availability of time.

Executive or management development

According to Harold Koontz, Developing a manager is a progressive process in the same sense that educating a person is .Neither education or development should be thought of as something that can ever be complicated.

Need and importance of executive development

Shortage of trained managers.
Performance of company depends upon the quality of managers. Obsolescence of managerial skills

Objectives of executive development

Steady source of competent people. Prevents managerial obsolescene. Prepares the employees for higher assignments. Develop a second line of competent managers. Promote high morale and good organisational climate.

Methods of executive development

On the job methods Off the job methods.

On the job methods

Coaching
Job rotation Special projects.

Committee assignments.

Off the job methods

Role playing
Case study method. Conference training

Management games.

Contd
Sensitivity training/t-group training
In basket exercise Syndicate method

Multi management and special course.

Career Planning
It is a series of work related experiences but a sequence of attitudes and behaviours associated with work related activities over the span of a persons life.
Career thus represents an organised ,well timed and positive move taken by aperson across time and space.

Aims and Objectives of career planning

Aims at matching individual potential for promotion and individual aspiration. Organisation has right people with right skill at right time. Opens growth opportunities for employees of organisation.

Principle objectives
To secure right person at right time for the right job. To provide adequate career avenues To strengthen the retention programme of the organisation. To make a contended team of employees.

Needs for career planning

To attract competent persons and retain them in the organisation. To provide suitable promotional opportunities Map out careers Ensure better utilisation of managerial reserves To reduce employee dissatisfaction

Contd.
To correct employee placement To improve employee morale and motivation To achieve higher productivity.

To provide guidance and encourage employees.

Benefits of career planning

Career planning helps employees enhance their job. Helps in overall effectiveness of the organisation. Employees is assured of qualified and comitted employees.

Benefits of a career development systyem

Managers Increased skill in careers Greater retention of valued employees Better communication between managers and employees. More realistic staff development Prductiver performance appraisal decision and enhanced reputation.

Contd
Employees Helpful assistance with career decisions Enrichment of present job,better communication More realistic goal planning Better feedback Current information Greater personal responsibility for career

Organisation
Better use of managing employees skills. Dissemination of information. Better communication in organisation. Greater retention of valued employees. Expanded public image Increased effectiveness of personnel system and greater clarification of goals.

Process of career Planning

Identfication of individual needs and aspiration. Analysing Career opportunities. Identifying congruence and incongruence

Action plans and periodic review.

Performance Appraisal
Performance appraisal includes all formal procedures used to evaluate personalities and contributions and potentials of group members in a working organisation.

Objectives of PAS
Feed back Compensation decisions Personal development Training and development Programme. Promotion Decision Improves Supervision.

Uses of PAS
Valuable information for personnel decision. Provide feedback about level of achievement. Suggesting changes Analyse training and development Used for selection for higher positions Base for HRP and positive environment.

Performace appraisal system

Establish job analysis. Establih standards of performance Communicating standards of performace for subordinates. Measuring actual performance. Comparing actual with standard. Initiating corrective action.

Purpose of performace appraisal

Administrative
Employee Development Programme assessment

Need of performance appraisal

Creating satisfactory level of performance Fixation of salary,allowances Evaluate the effectiveness of training and development Assessing the strengths and weakness of HR and giving feed back

Process of performance appraisal

Job analysis,job description and job specification. Establishing standards of performance. Communicating performance standards to employees

Contd.
Measuring actual performance
Objective performance Quality of production Degree of training needed Accidents in a given period Absenteesim Length of service

Subjective performance measures

Ratings by supervisors Knowledge about overall goals. Contribution to socio cultural values of the environment.

Cntd
Correcting actual performance with standards. Initiating corrective course of action.

Essentials of a good appraisal system

Reliability
Job relatedness Standardisation

Practical viability

Contd.
Training to appaisers
Open communication Employee Access to results

Clear objectives

Contd.
Post appraisal interview
Periodic review Non Vindictive in nature

Methods of training of PAS

Traditional
Non-traditional.

Traditional Method
Unstructured method Straight ranking method Paired comparison Man to man comparison method Grading method Graphic rating Forced choice Check list method

Contd
Weigh check method Free essay method Critical incidents method Field review method Confidential reports.

Modern methods
BARS-Behavioural anchored rating scale method Result oriented method MBO Assessment method Human resource accounting 360 degree appraisal Psychological appraisal

Post appraisal Analysis

Reliability and validity
Confidence and trust Immediate superior as appraiser.

Swift and economical

Contd.
Open Communication
Post appraisal interview Job Relatedness

Problems of performance appraisal

Rating biases Leniency and strictness error Halo error Central tendency error Personal Prejudice Consequence of appraisal Recency effect

Contd
Opportunity Bias
Group cohesiveness Knowledge of predictor bias

Similarity error

Ways for Improving performance appraisal

Choosing the appraisal method Multiple raters Training Appraisers Ongoing feedback Selective rating Peer evaluation Post appraisal interviews Rewards to accurate appraisers.

Job Compensation
Job evaluation is an effort to determine the relative value of every job in a plant to dtermine what fair basic wage for such a job should be. A process of determining the relative worth of the various jobs within the organisation,so differential wages may be paid to jobs of different worth.

Objectives of job evaluation

Payment of high wages and salaries to persons who hold jobs and positions not requiring skill,effort and responsibility. Paying beginners less than they are entitled Giving raise to people whose performance does not justify Deciding rates of pay on the basis of seniority rather than the ability Payment of varied wages and salary Payment of wages and salaries on the basis of race,sex,religion .

Principles of job evaluation programmes

Rate the job and not the man. Elements selected for rating should be easily explainable. Elements should be clearly defined and properly selected Involving the employees for job evaluation.

Advantages of job evaluation

A logical method for ranking jobs.
A new job the method often facilitates fitting them to existing wage structure.

Helps in removing grievances

Contd
Uniformity in wage structure.
Information can be used for transfer,promotion procedure.

Limitations of job evaluation

Rapid technological advancement
Creates doubts and fears. Job evaluation takes a long time to install. Leads to grievances.

Contd.
Job evaluation is a highly subjective process Traditional job evaluation method is not suitable to evaluate relative worth of managers.

Methods of job evaluation

Non-analytical or non-quantitative system Ranking system
Job classification or grading system

Ranking system
In this the job raters rank one job against another They do not assign any points or values It is done from lowest to the highest.

Merits
Simple,quick and inexpensive.
Suitable for small organisations who can not employ consultants. System is simple and easy to understand. Inexpensive.

Demerits
It is a crude process where specific job requirements are not analysed separately. There is absence of any yard stick.
It just produces a job order but does not indicate how much one job differs from the other.

Job cassification/grading system

A number of pre-determined grades or classification are established.
It begins with an overall comparison of all jobs. Ageneral specification is prepared indicating the nature of workand responsibility.

Contd.
Each grade is assigned a salary range with maximum and minimum limits The jobs are then fitted into these predetermined classes.

Merits of job classification

Best suited for small organisations,it is easy,inexpensive to administer. Employs think of jobs in cluster or group. Job grading is considered to be an improvement over ranking.

Contd.
Job grading makes pay determination problems administratively easier to handle.

Demerits of grading system

Difficult to write comprehensive and unambiguous class description. Rater can be easily influenced by title,personality and existing pay rate of jobs.
Lack of substantiating data.

Contd.
Personal evaluation determine into which class the job should be placed. Unsuitable for large organisations as it is a very rigid system

Analytical or quantitative system

In case of quantitative system various factors of a job are considered and points are alloted according to their relative worth.
There two types of system,point rating system and factor comparison method.

Point rating system

This system is based on allocation of points to each factor of the job and the sub factors. The overall point scored decides the worth or value of a job. First introduced by western electrical company

Merits of rating system

Predetermined factors act as guidelines for rating.
Method forces raters to consider individual factors rather than job as whole.

Gives numericals as base for job differentiation.

Contd.
Prejudice and human judgement are minimised. Assignment of points determine the worth of the job and also gives a comparison of how much one job is worth than the other.

Demerits of point rating system

Very difficult to give a fair evaluation of the relative worth of each job in the organisation. The listing may omit some elements that are important in certain jobs. Workers find it difficult to fully comprehend the point rating system

Contd..
Time consuming
There is considerable working. System is inflexible at the same point systems canot generally be sued for production and office jobs.

Factor comparison system

This was developed by Eugine J Benge at the Philadelphia Rapid transit company in 1926

Determined the relative importance of factors and their significance. E.g,factor skills,mental skills,responsibility which is then converted to money.

Merits
Systematic,quantified and detailed. Can be used to evaluate unlike jobs such as clerical,supervisory. Job by job comparison.

Fairly easy system to explain to employees.

Demerits
Very expensive and complicated
Difficult to operate. Money rates ,tends to influence rater.

Essentials for success of job evaluation

Managements objective must be clear. All relevant internal and external factors must be considered. Should have approval by top management.

Contd
Must be accepted by trade unions.
There must be a centralised coordination Conduct of wage surveys to provide proper information.

Contd
Predetermination of factors
Important factors of job content. Job evaluation issues

Category up to which it would be covered.

Contd
Who would evaluate the job?
How would employees be consulted. Is the atmosphere proper for launching the programme.

Uses of job evaluation

Effective means of determining internal pay relationship Used as a tool for implementing companies basic pay. Foundation for insentives and bonus plans.

Contd
Moves for promotion or demotion can be determined
Realistic foundation for gearing companies pay scale Assists managers in meeting day to day problems,reduction in employees grieveances.

Uses of Job evaluation

Job evaluation is most effective means of determining internal pay relation for most type of jobs. Can be used as a tool for making companies basic pay policies. Forms a reasonable basis for personnel moves

Contd
Useful control over wage and salary.
Forms a realistic foundation. Assists managers in meeting day to day problems.

Wage and salary administration.

Methods of Wage Payment
Time wage system Piece wage system

Time wage system

Based on the amount of time spend on work. Wages do not depend on the performance of the employees.

Features of time wage

It is more widely used. It is simple to compute the earnings. Provides guaranteed and secured income. Removing fear of irregular income. It facilitates pay roll function.

Advantages of time wage system

Sense of security of income.
Conducive climate is provided for better labour management. Disputes minimised.

Disadvantage of time wage system

Time wage system offers no incentives. No encouragement for better performance. Ambitious workers receive no monetary reward. Demands intensive and strict supervision.

Piece wage system

The amount is paid based on the work performed or productivity. Earning of the employees are directly proportional to productivity.

Features of Piece wage system

Can offer direct connect between effort and reward. Ensures productivity.
Wage cost determination is easy.

Advantages of piece wage system

Direct connect between effort and reward. Simple and easy to understand Worker interested in higher efficiency Cost accounting and control by management is made easy.

Disadvantages of piece wage system

Danger of overwork
Requires a lot of supervision to maintain quality and standard of work.

It is an ineffective method ,if quality is given preference.

Incentive wage plans.

A system of payment which would maintain both quality and quantity is called Incentive wage plan.
A judicious system which includes both basic wage system and a blend of time and piece wage system.

Essentials of a sound wage incentive plan.

Measurement of the amount of work done
Establishment of standard output on the basis of which the incentive have to be worked

Setting up a suitable rate of incentive.

Types of incentive plans

Halsey Plan Rowan plan Taylor s differential piece wage plan The Emerson efficiency system The Gantt system The bedeaux point premium plan

Halsey Plan
Plan originated by F.A.Halsey Was started to bring in efficiency amongst workers. Guaranteed wages according to time basis. Standard time calculated was based on time and motion studies.

Contd
Workers who perform the job in less than standard time is paid bonus. Those who take the whole time ,not punished but paid regular time wage system.

Contd.
Earnings are based on the 33% value of time saved. Standard time set on previous experience. 50% of time saved when the standards are scientifically set.

Rowan Plan
Wages ,according to time basis are guaranteed. A standard time is determined before and a bonus is paid according to time.

Contd
Earnings calculated
Bonus = Time saved * time taken*hourly rate
Standard time

Taylors differential piece wage plan

There is no guarantee of wages. The standard of output is fixed per day e.g. 40 If the per unit charge is 30 paisa and 25 paisa If the output reaches 40 units then they get 30 paisa for every unit. If the output is 39 units they get 30 paisa for every unit.

Emerson efficiency system

In this the daily wage is gauranteed.
Workers given a particular time to complete. If they take lesser time then bonus granted .

Gantt System
Similar to Emerson efficiency system
100% Efficiency essential Foreman also attains bonus if the worker under him attains the required standards.

Bedeaux point premium plan

The chief novelty of this plan is that the value of time saved is divided between workers and foreman
to workers.

to foreman.

Variable Compensation individual and group

Incentive compensation is also called as payment by result. A means of sharing financial profit with workers so that there is better out-put. Incentive system helps to reduce the gap between workers and management.

Broad categories of incentives

3 incentive schemes classified by Dunn and Rachel.
Simple incentive plan Sharing incentive wage plan Group incentive plan

Simple Incentive Plan

The simplest of all wage incentives straight piece rate system. One of the oldest method.
Straight calculation done on the basis of the price given per unit. E.g-Rs 2 ,if 10 pieces then Rs 20.

Sharing incentive wage plan

Modification of Taylors wage plans.
The workers get paid on the piece rate system Those who produce more in a given time is paid more per unit charges.

Group incentive plan

Applied where there are more number workers. There is join achievements and results Inculcate team spirit and a sense of mutual cooperation among workers.

Requisites for the success of an incentive plan

Believe that money is a strong motivator Direct effort between effort and reward Worker is immediately rewarded for effort.

Contd
Relation between management and workers Should reward employees in direct manner Plan should be easily calculated

Contd.
Immediate rewards for performance Must be within the financial budget Should be gauranted and on reasonable standards.

Reward needs to be valuable to employee.

Contd
Plan must encourage employees to support each other Taken to consideration health and welfare of the employees. Clearly identifiable Guaranteed base rate.

Fringe Benefits
Fringe benefits are additional benefits and services that are provided to employees in addition to their salary.
They are given to the employees based on their performance.

Contd
Advantage of fringe benefits are that they are not included under taxable income. Fringe benefits such as health, insurance can be attained at a lower expenditure. Companies usually use these benefits to retain the employees.

Fringe benefits help

Lessen fatigue Oppose labour unrest Satisfy employee objectives Promote recruitment Minimize turnover Reduce overtime costs.

Principles of fringe benefits

Benefits and services must be provided to the employees for protection and encourage their well being.

The benefits should fulfill real requirements of employees. Benefits should and services should be cost effective.

Contd
Fringe benefits should be monitored with proper planning.
While determining the fringe benefits the fringe benefits communicated by the union must be considered.

The employees of a company must be well informed.

Examples of monetary benefit

Legally required payments: Old age ,survivors and health insurance, workers compensation, unemployment compensation.
Dependent and long term benefits: Pension plan, group life insurance, group health insurance, sick leave

Contd
Payments for time not worked:Vacations,holidays,voting pay allowances.
Other benefits: Travel allowances, company car

Types of fringe benefits

Monetary Non Monetary Examples of non-monetary: Knick-knacks: Company watches, desk accessories-shirts Treats: Free lunch, coffee breaks, picnics.

Important fringe benefits

Payment for time not worked
Insurance benefits Compensation benefits

Pension plans.

Monitoring fringe benefits

Setting up benefit objectives Assessing environmental factors Determining competitiveness Conveying benefit information Controlling benefit costs and evaluation.

Setting up benefit objectives

Encouraging external competitiveness
Enhancing cost effectiveness Fulfilling the needs and preferences of each employee Adhering to the legal compulsion.

Assessing Environmental factors

Government policies
Regulations Union and economic factors

Internal factor includes: Financial condition.

Determining competitiveness
Competitors provision.
Competitors strategies

Conveying Benefit Information

Booklets
Regular employee meetings Brochures and slide presentations.

Controlling benefit costs and evaluation

Has the employees earnings enhanced. Has the earning of the employees been able to attract new employees. Has the confidence risen.

Concept of variable compensation plan

The variable compensation reffers to the incentive schemes given to workers on the basis of productivity
Individual incentives Group incentives.

Incentive schemes
Straight piece work method
Standard hour method In both methods earnings vary in the same proportion as output.

Earnings vary less proportionately than output

Halsey plan
Rowan plan Barth scheme

Bedaux plan All the plans work on time saved.

Earnings vary proportionately more than the output

High Piece rate method
High standard hour method

Objectives of national wage

To eliminate malpractices.
To set minimum wages for workers. To rationalize inter occupational,interindustrial,inter-regional wage differentials in such a way that disparities are reduced in a phased manner.

Contd
To compensate workers for the raise in the cost of living in such a manner that in the process the ratio of disparity between the highest paid and the lowest paid worker is reduced. Promote collective bargaining and trade unions.

Contd
Fruits of economic development.
Avoid a policy of high wages. Efficient allocation and utilization of resources.

Regulations Adopted
Prescribing minimum rates of wages
Compulsory conciliation and arbitration Wage boards.

Minimum wages
In order to prescribe the minimum rate of wages, the min wages act 1948 was passed.
The act empowers the govt to fix minimum rates of wages in respect of certain sweated and unorganized employments.

Compulsory conciliation and arbitration

With the object of providing for conciliation and arbitration, the industrial disputes act 1947 was passed.
It provides for the appointment of industrial tribunals for settlement of industrial disputes.

Wage boards
A wage board is a tripartite body with representatives of management and workers.
It is presided over by a government nominated chairman who can act as an umpire in the event of disagreement among the parties.

Wage policy in a developing economy

A suitable wage policy for a developing economy must ensure economic growth with stability. If the wage level is high it will hamper the industrial growth. If the wage level is low it will adversely affect the workers.

Two main considerations in wage fixation

Adjust wages to cost of living need based wages) To link wages with productivity.

Need based wages

The wage should enable the worker to provide for himself and for his family not merely the bare necessities of food, clothing and shelter but also include education for children, protection against ill-health, requirements of essential social needs and a measure of insurance against misfortunes and old age.

Labour conference 1957

The standard working family should consist of three consumptions units. The minimum requirements of food should be calculated on the basis of net intake of calories as recommended by Dr. Aykroyd

Contd.
The clothing requirements should be taken as 18 yards per head per annum. As for housing the rent corresponding to minimum provided under the government industrial housing scheme. Fuel ,lighting and other miscellaneous constitute 20 percent.

Minimum wage
National commission on labour describes Wage which provides a worker with physical subsistence.

Fair wage
The productivity of labour Prevailing rate of wages. Level of national income and its distribution Place of industry in the economy. The degree of unionization of labour.

Promotion
Promotion is a term which covers a change and calls for greater responsibilities and usually involves higher pay and better terms and conditions of service and therefore a higher status or rank.

Types of promotion
Limited promotion
Dry promotion Multiple promotion

Up and out promotion

Basis of promotion
Promotion based on seniority
Promotion based on merit Temporary promotion

Promotion policy
State formally the organizations broad objective Ratio of internal promotion Vs external recruitment Decide the basis of promotion performance appraisal)

Contd
Communicate promotion policy
Lack of promotion avenues. Determination of seniority

Relation of disciplinary action to promotion.

Advantages of promotion policy

Works as an incentive .
Develops employee loyalty. Increases job satisfaction

Increases work effectiveness.

Contd
Attracts effective employees.
Increases employee interest in training and development. Promotion makes employees believe that their turn would come.

Demotion
It is a process where the employees are send to a lower position. It could be with less authority and responsibility with lesser payment.

Causes of demotion
As a disciplinary weapon.
Due to personnel reasons such as ill health Curtailing of activities. Can not meet standards.

Conditions for demotion

Violation of rules
Proper and detailed investigation Violations occur

Provision for review and infrequent.

Transfer
A change in the assignment without the change in status is called transfer.
Yoder defines it as a lateral shift without change in position .

Types of transfer
General transfer Production transfer Replacement transfer Shift transfer Remedial transfer Versatility transfer Punishment or penal transfer.

Contd
Request or personal transfer Mutual transfer.

Transfer policy
Clarify circumstances under which transfer would be used.
Must locate the authority who initiate transfer The policy should maintain if transfer can happen within department, within sub units.

Contd..
Describe the type of transfer.
If seniority credit would be maintained and so on..

Transfer procedure
Intra departmental transfer
Inter departmental transfer. Branch transfer

Seperation
Resignation
Discharge Dismissal

Retrenchment

Contd
Lay off
Golden hand shake Retirement.

Absenteeism
Unauthorized absence of the workers from the job when work is available.

Rate of absenteeism
Rate of absenteeism =(No of total man shifts lost- no of total man shift schedule)* 100

Causes of absenteesim
Maladjustment with factory condition.
Social and religious function Stress

Alcoholism and drug abuse.

Contd.
Unsatisfactory housing condition
Sickness Unhealthy working condition

Rural exodus

Contd
Absence of sufficient welfare activities
Managerial attitude Over identification with family affairs

Desire for money status and power.

Measures to control absenteesim.

Notification.
Granting of leave Programmes should be strengthened

Offering bonus

Labour turnover
Measurement of labour turnover can be done Accession Separation Replacement Flux method

Accession
Labour turn over= (No of accession during a period+ Average no of workers during the period) *100
Separation= No of separations during * 100 the period
Average number of workers during the period

Causes of labour turn over

Resignation
Dismissals

Measures to reduce labour turn over

Increase pay level
Introduce rewards Career opportunities

Work shop etc.

QUALITY OF WORK LIFE

Quality of work life basically talks about the sociopsychological needs of the employees, requirements of technology ,structure where the employees have a level of satisfaction thus increasing their rate of performance

Factors for QWL

Compensation
Safe working conditions Personal rights

Balance of family and work

Effects of QWL
Job involvement
Employee satisfaction Great sense of competencies.

Scope of QWL
Fair and reasonable pay
Safer environment Benefit for employees

Job security, job satisfaction

Approaches to Qwl
Flexibility of work schedules Freedom to form groups Opportunity for growth Participation of employees Implementing suggestion system

Historical background of QC
It was started in Japan in 1960. QCs have spread all over the world. QCs became popular in all the industry. QC members identify the problem and bring in improved condition.

Objectives of quality circles

Improvement and development of organization. Develop respect of human relation and induce job satisfaction. Deploy human capabilities To satisfy the workers psychology. To improve quality of product services and reduce cost.

Advantages of quality circles

Generation of creative ideas
Improve in productivity Better team work

Higher motivation

Limitations of QC

Fitting of QCs in existing culture. Top management should take proper care and interest.

Conditions essential to make QC effective

Top management support
Education and training of managers. Timely implementation

Sharing gains in productivity

Contd
Facilities for meetings and discussions
Regular monitoring of working of quality circles.

Morale
Morale is the degree of enthusiasm and willingness with which individual workers of a group set out to perform.

Effects of low morale

High rate of absenteeism Tardiness High labour turnover. Strikes and sabotage Lack of pride in work Wastage and spoilage

Measures to build high morale

Leadership Sound wage Favorable work environment. Higher order need satisfaction. Other measures

Factors affecting morale

The organization. Job enrichment Leadership Work environment Nature of work Attitude of co-workers.

Job satisfaction
Job satisfaction : The combination of physiological and environmental circumstances that cause a person to truthfully say I am satisfied with my job.

Determination of job satisfaction

Job content Occupational level. Pay and promotion Work group Supervision

Personal characteristics
Age Gender Educational level Maritial status Experience

Consequences of job satisfaction

Affects the physical health
Lack of job satisfaction creates an unwillingness to work Job satisfaction reduces employee turnover.

Social Security
Social security is complete protection of every citizen. According to ILO1952 following are the nine components.

Components of social security

Medical care Sickness benefit Unemployment benefits. Old age benefit Employment injury benefit Family benefit Maternity benefit Invalidity benefit & survivor benefit.

Social security in India

Social Assistance
Social insurance

Draw backs of social security schemes in India

All needed to be integrated in one act. Very little contribution is made by the state and the employer. Social security benefits only industry workers.

Laws and acts

The employee state insurance act 1948 The employees provident fund act 1952 The workmens compensation act ,1923

Contd
The maternity benefit Act 1951
The industrial disputes act,1947

Employees state insurance act 1948

ESIS Employee state insurance scheme.
Medical facilities to employees who have salary less than 6,500 Rs. The treatment should also to be provided to retired and spouse at a cost of Rs.10

Contd
The entire functioning is monitored by ESIC-Employees state insurance scheme. It covers
Sickness benefits Medical benefit Maternity benefit Disablement benefit

Contd
Disablement benefit
Dependents benefit. Funeral benefit

The employees provident fund act 1952

The employees provident fund act was launched in1952 The scheme is applicable to people getting a salary of Rs5000. According to this employees are supposed to contribute

Coverage of employees provident fund act 1952

Employees pension scheme 1995 Death Relief fund Gratuity scheme Employees deposit linked scheme. Group life insurance scheme

Workmen's compensation act 1923

This act provides social security to the employees of a company
The employee has to be compensated if they meet with an accident during course of employment.

Overtime pay, benefits of food, clothing etc

Contd
Min amt to be paid to an employee for permanent disabled or death is Rs60000 and Rs 50000
Min payment for permanent disablement is 2.28 lac and Rs 2.74 lac.

Maternity Benefit act 1961

Maternity leave
6 weeks before due date Free medical treatment

Allow the female ladies to feed her baby.

The Industrial disputes act 1947

25A TO 25S: Related to employee termination 25C to 25 E :They are not applicable for organization with employees less than 50 employees. Sec 25 C ;It states that if an employee has worked for a year or more than a year the company needs to give 50% of the employees basic salary.

Health and safety

Physical health
Mental health Noise control

Work stress

Industrial accident
Causes of accidents :
Unsafe conditions Unsafe acts

Other causes

Contd.
Accident prevention
Occupational disease

Provision under factories act 1948

A)Health Cleanliness Disposal of wastes Ventilation and temperature Dust and fume Artificial humidification Overcrowding Lighting, drinking water,laterines urinals.

CONTD
Safety Fencing of machinery Work on near machinery in motion Employment of young person on dangerous machine unless.

Labour welfare
Efforts to make life worth living for workmen

Need for labour welfare

From the point of view of workers
Employers point of view From unions point of view

Provision of labour welfare

Washing facility
Storing and drying clothes Sitting arrangement

First aid application

Contd
Canteen
Rest rooms. Creches