Human Resource Management

Learning Objective
Introduction to Human Resource Management Concept of Human Resource Planning, Job analysis, Recruitment and selection, Performance appraisal, Training and development

Case incident 1

Global Textile industries had its presence in the textile industry for more than 100 years .The HR DEPT of the company was mostly administrative in nature . But with the changes in the company environment , the company plan to integrate HR in strategy formulation and implementation. What are the challenges do you think the company HR department would face?

Human Resource Management

Human Resource Management (HRM)

The comprehensive set of managerial activities and tasks concerned with developing and maintaining a qualified workforcehuman resourcesin ways that contribute to organizational effectiveness. Effective human resource management is a vital strategic concern for organizations today.

Definition and concept of HRM

According to Gluke Human resource management is function performed in organization that facilitates the most effective use of people (Employees) to achieve organizational and individual goals

HRM is a process that consists of Four Functions-Acquiring, Developing, Motivating and retaining human resources. Acquisition-starts with Planning and ends with staffing Development function has three dimensionsEmployee training, Employee Development and career development .Motivating function includes Identifying the individual motivational needs of employees and identifying ways to motivate them Retention function is concerned with providing a conducive work environment

Definition and concept of HRM

Managing people is one of the biggest challenges for any manager for following Reasons
Individual Differ from each other in terms of values , attitudes , beliefs and culture. This leads to a very complex situation in an organizational context The stimulating and motivating factors might not be same for all the employees. The expectation of employees of today are much greater when compared to employees of yesteryears. They know they are valuable assets and demand to be treated as such.

Challenges that HR Dept of Global Textile industries would face

Global Business Environment Profitability through Growth Technology Intellectual Capital Adaptability

HR Management Activities

Case Incident 2

ABC corporation is a large manufacturing organization which have been facing problems due to constant conflicts between human resource and production department. While the production team resents the mere presence of HR department the HR team on the other hand believes that the production dept does not appreciate the value and importance of its contribution to the organization. What do you think could be the probable cause for the conflict between the two department? If you were the external consultant asked to resolve this conflict, what would you suggest?

Organizations typically divide managers into two groups:

Line vs. Staff Perspectives

Line (now operating) managers in operations, finance, and marketing functions supervise and direct the workforce in the creation of goods and services. Their contributions to the organization can be measured directly. Staff managers in legal, HR departments perform indirect or support functions, which makes their contributions less easily measured directly. HR departments are assigned staff functions and staff responsibility. HRM activities are distributed throughout organizations, yet HR departments are responsible for monitoring and ensuring organizational compliance with laws, regulations, policies, procedures, and rules.

HR Staff should reorient itself and play more strategic role

Understanding the market and business better Having a complete understanding of organizational processes Being emphatic to the limitation of line function Building an atmosphere of trust and transparency Trying to work towards a win-win situation rather than trying to gain upper hand Being open to bouquets as well as brick bats for its action Playing an active role in designing the strategy of the organization

Case Incident 2

The economic downturn during the recent past caused serious problems to most organizations, especially in the IT field. Horizon Technologies, a five-year old firm was faced with the most common problem surplus manpower, The top management called for a meeting to discuss strategies to help the organization survive during those turbulent times. What do you think might be the strategies that will help Horizon deal with surplus manpower?

HUMAN RESOURCE PLANNING

Human Resource Planning

It can be defined as a process of ensuring the right number of qualified people , into the right job at the right time to deliver the results in an effective and efficient manner . It is the system of matching the available resources either internally or externally with the demand the organization is going to have over a period of time

Process of Human resource Planning

1 Analyzing the impact of the organizational strategy and objectives on different units of the organization in terms of the human resource requirements. 2. Involving the line managers in determining the human resource needs of their respective departments. 3. Forecasting the quantity and quality of human resources required by different departments/divisions. 4. Matching !he current human resources supply in the organization with the numbers required in the future. 5. Developing an action plan to meet the future

Dealing With Surplus man power

Voluntary Retirement Attrition Reduced work hours Work Sharing Loaning Leave of absence without pay Lay off Retrenchment

Estimating Internal Labor Supply for a Given Unit

Case incident

Triumph Electronics, a manufacturer of electronic appliances, decided to conduct a detailed job analysis to collect information about various aspects of the different jobs in the organization that would provide necessary inputs for a number of HR activities like recruitment, selection, job design, training and appraisal. However, problems cropped up when its employees began to view the initiative as a threat to their job security as some organizations use this process for downsizing the workforce. Organizations like Triumph face such problems while implementing the process of job analysis. Discuss the various issues associated with job analysis and suggest ways of tackling them

What is a job?

Job
Group of related activities and duties Made up of tasks

Tasks
Basic elements of jobs what gets done

Job Analysis

It is the process of determining and recording all the pertinent information about a specific job, including the tasks involved, the knowledge and the skill set required to perform the job, the responsibilities attached to the job and the abilities required to perform the job successfully.

Job Analysis Job Specification(Employee Job Description (Job Information and Facts Oriented) Oriented)
Job Identification : Job Title, Location, Job code, Department and unit Job Summary: Brief Job content,its authority, responsibility, Hazards Relation to other jobs Location in the hierarchy Machines, tools, equipments used Responsibilities Conditions of work, location of work, Posture Etc

Education Experience Training Judgement Initiative Physical Efforts Physical Skills Communication Skills Emotional Characteristics

Uses Of Job Analysis

Employment Organization Audit Training and Development Performance Appraisal Promotion and Transfer Preventing Dissatisfaction Compensation Management Health and Safety Induction Industrial Relation Career Planning Succession Planning

Case Incident

To solve the problem Involve the employees in the process of job analysis Management should be Transparent Need to update the information gathered Analyze job not the person

Case Incident

The TNB Bank Ltd. is an established private sector bank in south India. The bank has a few vacancies in top managerial positions due to the retirement of some of senior personnel. The HR department has decided to identify suitable personnel from within the organization for promotion, instead of recruiting from outside .Was the HR department right in deciding to recruit people from within the organization'. Will they not miss out on talent from outside? Discuss the pros and cons of conducting an internal recruitment drive instead of seeking potential employees from-outside

RECRUITING
AND

SELECTING
THE

RIGHT PERSON

Recruitment

Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization

This process starts with the identification of the need for the human resources and ends with getting the prospective employees to apply for the vacancies available.

Sources of recruitment

Internal Search-Identify Employees from within the the organization to be groomed to take higher responsibilities Advantages
-Helps in maintaining good employee relation Boost Morale of employees Encourages competent and ambitious employees as their performance is rewarded Time and resources are saved on selection and induction program

External Sources
Advertisements Employee Referrals Employment Agencies Education Institutes Unsolicited Applicants

Case Incident

Sputnik enterprises had advertised in a leading national daily for an able and qualified production manager for its Nagpur branch. In response to the advertisement, the HR department received a number of applications- After a preliminary analysis of the applications, it short listed around sixty applicants, who had lo be further tested for their managerial and decision-making abilities. Suggest appropriate selection methodologies that Sputnik can implement to decide on the most suitable candidate for a middle-level managerial position of production manager.

Selection
The process of choosing the most suitable candidate for a job from among the available applicants is called Selection. This process starts with gathering complete information about applicants from his application forms and ends with inducting them into the organization

The TYPICAL SELECTION PROCESS

Completion of the Application

Form

Initial Screening Interview

Employment test

Test

Comprehensive Interview

Background

Investigation

Physical Examination

Final Employment

Decision

Selection Process

Steps in Selection Process 1Resumes/CV review 2 Initial Screening interview 3 Analyze the application blank 4 Conducting Tests and Evaluating Performance 5 Preliminary Interview 6 Core and departmental Interview 7 Reference Check 8 Medical Examination 9 Placement

Case Analysis
Group Discussion- Candidates are tested for initiative, lesdership qualities , negotiation skills and decision making abilities In basket Exercises objective is how he is able to hadle multiple tasks, prioritize things, analyze information and delegate tasks. Simulated Games- ROLE PLAY

Case Incident

Peoples Bank, a growing private sector bank has just recruited 15 new employee as senior officers to fill vacancies across the country. On the first day at the bank the new recruits had an informal talk among themselves. All of them had deferrer opinions about the bank and their role in the organization. A lot of ambiguity and uncertainty prevailed among them. They were apprehensive about their acceptance in the organization, the functions they have to perform, their peers superiors and other co-workers. Discuss how Peoples Bank can reduce the apprehensions among its employees

Induction

To provide the information and opportunity required by all new employees to satisfactory adjust to their work and help them to develop an enthusiasm for the organization, its ideals, policies and responsibilities.

Objectives of Induction
To define the terms and conditions of work To acquaint the employee with the requirements of the job To inculcate in the employee a confidence in his own ability to do the job and also a confidence in the organization. To bring about integration and agreement between organization goals and personal goals.

Objectives of Induction

To provide the information and opportunity required by all new employees to satisfactory adjust to their work and help them to develop an enthusiasm for the organization, its ideals, policies and responsibilities

Organisational Issues

History Of the organizatiom Names of key executives Employee title and dept Layout and physical facilities Probation period Product line and service provided Overview of production process Company policies and rules Discipline procedure Employee Handbook Safety procedure and enforcement

Employee Benefits
Pay scale Vacations and holidays Rest breaks Training and education benefits Insurance Benefits Retirement programme

NTRODUCTION
To supervisors To trainers To co workers Employee counsellors

Job duties
Job location Job tasks Job safety requirements Overview of the job Job objectives Relationship with other jobs

Case Incident

Vishnu Group of Industries is a refrigerator manufacturing and marketing company. In the recent past, the performance of its sales personnel was found to be going down. An analysis revealed that the sales personnel were not happy with their performance appraisal. A survey was conducted, which revealed that the appraisal of the employees did not take into consideration the slump period and the salesmen were expected to maintain the same standards throughout. What dc you think would have gone wrong and how can the management win back its employees' confidence and commitment?

Appraising and Managing Performance

Definition

Performance Appraisal is the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development.

Process of performance appraisal

Setting performance standards Communicating standards Measuring performance Comparing with standards Discussing results Taking corrective actions

PURPOSES
Training

and development Identification of potential Promotion decision Compensation administration Work force planning Validation of selection procedure

Methods of Appraisal
1) Traditional Methods 2) Modern Methods

Traditional Methods
1) Rating Scales 2) Checklists 3) Forced Distribution Method 4) Critical incident method 5) Field review method 6) Annual confidential report 7) Essay method

Rating Scales
A simple and popular technique. Consists of various job-related performance criterion which are to be rated on a scale of 1 to 5.

Graphic Rating Scale

Checklist Method

A checklist of statements on the traits of the employee is prepared in two columnsYES and NO.

Forced Distribution Method

Based on the assumption that the employee performance levels conforms to a normal statistical distribution ( a bellshaped curve). The rater is compelled to distribute the ratees on all points on the rating scale.

Forced Distribution Example

-----5-------4-------3-------2-------1-----Excellent Poor

No more than 5% of employees should receive a 5 rating. At least 50% of employees should receive a rating of 3 or lower.

Critical Incidents Method

It was developed following the research conducted by the armed forces in the United States during World War II. Employees performance is measured in terms of certain events or episodes that occur in the performance of ratees job. The critical incidents are discovered after a thorough study of the personnel working on the job. The collected incidents are then ranked in the order of frequency and importance.

Field Review Method

Someone outside the Supervisors own deptt., usually someone from the HR deptt., interviews the line supervisor to evaluate their respective subordinates. He asks some specific questions which are prepared in advance to the supervisor about the subordinates performance. The answers are noted and approved by the supervisor.

Free essay method

Supervisor makes a free form, open-ended appraisal of an employee in his own words and puts down his impressions about the employee. Usually the following factors are taken into consideration: 1) Relations with fellow workers. 2) General organization and planning ability. 3) Job knowledge and potential. 4) Employee characteristics and attitude. 5) Understanding and application of company policies and procedures.

Confidential Report
A traditional form of appraisal used mostly in govt. organization. A report is prepared by the employees immediate superior. It covers the strengths-weaknesses, achievementsfailures, personality and behavior of the employees. This report is kept confidential and is considered while making promotion decisions.

Modern Methods
Management by Objectives (MBO) BARS Assessment Centers 360-Degree Feedback

Management by Objectives
The concept of MBO was developed by PETER F. DRUCKER in 1954. Definition: MBO is a process whereby the superiors and subordinates of an organization jointly identify its common goals, define each individuals major areas of responsibility in terms of results expected of him and use these measures as guides for operating the unit and assessing the contribution of each member.

Management by Objectives

ERRORS IN JUDGMENT

HALO ERRORS
The appraiser allows the single characteristics of the appraisee to dominate his judgment of the employee Eg, good communication skills/shoody dressing

LENIENCY ERRORS

NEGATIVE GIVES HARSHER

EVALUATION THAN DESERVED

POSITIVEGIVES HIGHER RATINGS THAN DESERVED

ERRORS

CENTRAL TENDENCY- RATER UNWILLING TO GIVE EXTREME RATINGS, USE ONLY THE MIDDLE PART OF THE SCALE

ERRORS

Recency effect- This occurs when the recent performance of appraisee dominates the appraisal

ERRORS

Perceptual set- This is the tendency of the appraisers to have expectation of performance level , which might distort the perception and judgement of actual performance.

Fundamental Attribution error- When employee performance have been affected due to some external factors outside his control

Possible PA Raters

Supervisor Supervisors supervisor Self Peer Subordinate Customer

360 degree appraisal

360 Feedback
The combination of peer, subordinate, and self-review

Case Incident 2

An IT firm recruited fresh graduates from the campus. The Chief HR Manager assigned the task of training these employees to the Assistant Manager HR. Vipul Shah. What are the various areas in which these new recruits should be trained?

Training and Development

Training
Effort initiated by an organization to foster learning among its members. Tends to be narrowly focused and oriented toward short-term performance concerns.

Development

Effort that is oriented more toward broadening an individuals skills for the future responsibilities.

Training Methods for Non managerial Employees

On-the-Job Training Methods Apprenticeship Training Job instruction training Job rotation Committee Assignments Vestibule training

Training Methods for Non managerial Employees (contd)

On-the-job training (OJT)

Method by which employees are given handson experience with instructions from their supervisor or other trainer.
System of training in which a worker entering the skilled trades is given thorough instruction and experience, both on and off the job, in the practical and theoretical aspects of the work.

Apprenticeship training

Training Methods for Non managerial Employees (contd)

Vestibule Training A special type of classroom facility is used to give instruction in the operation of equipment like that found in operating departments. Committee Assignments A group of employee are given an actual organization problem and are asked to find a solution

Training Methods for Management Development

Off-the-Job method of training Seminars and Conferences Case Studies GD In basket Management Games Role Playing Behavior Modeling

Quiz
1 The process of recording all pertinent information about specific job , including the task involved , the knowledge and skill sets required to perform the job is termed as A Job Evaluation B Job specification C Job Analysis D Job design

2 An HR MANAGER WAS INVOLVED IN THE PROCESS of HRP . The first step he undertook was assessing current resources and making an inventory. What is the next step that the manager has to take in HRP A Start recruiting to meet the requirement B Forecasting C Matching the inventory with future requirement D Developing an action plan to meet future requirement

3 An HR Manager in a large multinational firm is involved in establishing an intentional structure of roles for people and assigning responsibilities. What is the managerial function that the HR manager is performing? A Managing B Staffing C Directing D Controlling

A B C D

The HR department of Magnus Textiles made sure that any vacancies in the organization first reached the prospective candidates in the organization. Candidates from the organization responded to job posting. What is the source of recruitment being used? Advertisement Internal Search Employee Referrals Campus Recruitment

5 A software firm has a vacancy for the post of Vice president (Operations) which of the following methods of recruitment would you suggest A Employment Pages of a national daily or business magazine B Campus Placement C Advertisement in a local daily D Listing of the vacancy on a play card outside the organization

6 In a process of selection, the step that follows Analyze the application Blank is

A B C D

Decision making interview Preliminary Interview Reference check Induction

7 A formal record of an individual appeal or intention for employment that in helps in gathering information about a prospective candidate is called A Application blank B Employee data C Employee blank D Data blank

8 Mohan Krishna attended an interview and was very upset with the way it progressed . The interviewer repeatedly interrupted him, criticized his answers and asked him unrelated questions. What is the method of interview adopted? A Panel Interview B Stress Interview C In depth Interview D Group Interview

9 A B C D A B C D

Identify the correct sequence of interview process Closing The interview Evaluation Conduct of interview Reference check a,b,c,d C,A,B,D B,C,D,A d,c,b,a

10 A new employee is being introduced to the organization , its business organizational culture, its value and belief? What is the procedure termed as? A Selection B Placement C Induction D Recruitment

11 Clear and well defined goals, a definite time plan and an action plan to achieve these goals combined with timely feedback are characteristics of A Work standard approach B Management by objectives C BARS D Balanced Scorecard Method

12 The method of appraisal where the appraisee makes a list of all the important situation and employee reaction/ behaviour at that time is A Checklist method B Critical Incident method C Graphic rating Method D Work Standard Method

13 Riana is a good salesman and works for an it company, but his performance in 2001-02 was affected because of the slump in the IT market . However his boss fails to acknowledge it and rates his performance as poor. This is an example of A Halo effect B Perceptual effect C Stereotyping D Fundamental attribution error

14 Praveen is a new recruit in a manufacturing firm. His job entails operating and using expensive equipment. Therefore, he needs to first make himself comfortable with the various machines and their working. What is the method that the organization has to adopt to train him?