HUMAN RESOURCE MANAGEMENT

Post Graduate Diploma Program: 2011

Session 1: 31 March 2011: MOBILITY & RETENTION Session 2: 1 April 2011: CHANGE MANAGEMENT Session 3: 9 April 2011: ORGANIZATIONAL DEVELOPMENT Session 4: 19 May 2011: EMPLOYEE GRIEVANCE & DISCIPLINE Session 5: 20 May 2011: COLLECTIVE BARGAINING Session 6: 21 May 2011: INDUSTRIAL CONFLICTS

DR KSB NAYAR Director

KARTIKEYA MANAGEMENT CONSULTANTS
ksbnayar@gmail.com

Internal Mobility
Necessary to match employee s skill and requirements with organizational requirements continually. Reasons:
Changes in job structure, job design, job grouping, etc. Changes in technology and mechanization resulting in enhancement in job demands Expansion and diversification of production/operations Adding different lines of auxiliary and support activities Creative and innovative ideas resulting in increased job demands Changes in employee skill, knowledge, abilities, aptitude, values, etc.

Internal Mobility
Changing demands of trade unions to protect interest of members Changing government role in human resource management National economic and business trends Maintenance of interpersonal relations and sound human relations Social and religious conditions of employees or region

Purposes of Internal Mobility

To improve effectiveness of the organization To maximize employee efficiency To ensure discipline To adapt organizational changes

Promotion
Reassignment of higher level job to an internal employee with higher authority and responsibility normally accompanies higher pay Three types of promotion: Vertical Promotion, Up-gradation and Dry Promotion Purposes: (i) to utilize employee s skill, knowledge at appropriate level; (ii) to develop healthy competition and improve competence; (iii) to promote self-development, contentment, interest in training and development; and to reward committed and loyal employees

(iv)

Bases of promotion: (1) Merit; (2) Seniority; and (3) Meritcum-Seniority minimum length of service and merit; measurement of seniority and merit through a common factor; and minimum merit and seniority

Promotion
Benefits of promotion: better utilization of employee s knowledge and skills; increases interest of employees in the company; creates a contentment with conditions of work; increases interest in acquiring higher qualifications, training and self-development; improves employee morale and job satisfaction; improves organizational health Problems with promotion: Invisible barrier of promotion based on race, nationality, gender (glass ceiling); disappoints some employees because of favoritism or lack of systematic promotion policy; some employees refuse promotion due to incompetence, unwanted responsibilities; and union considerations Promotion principles: (i) consistency and uniformity; (2) fair and impartial; (iii) systematic line of promotion; (iv) equal opportunities in all categories; (v) ensure open policy; (vi) clear-cut norms and criteria for judgment; (vii) appropriate authority; (viii) promotion counseling, encouragement, guidance and follow-up

Transfer
Lateral shift causing movement of individuals from one position to another usually without involving change in duties, responsibilities, skills needed or compensation Promotion is upward reassignment of a job, demotion is a downward job reassignment whereas transfer is a lateral or horizontal job reassignment Reasons for transfer: (1) to meet organizational requirements technology changes; changes in volume; schedules; product line; quality of products; job pattern; market conditions; (2) to satisfy employees needs friendly superior, advancement opportunities; challenging work; better utilization of employee s skills; employee development; overcome conflicts; workforce adjustment; punishment; to minimize fraud; and help the employees Types of transfer: Production Transfer; Replacement Transfer; Penal Transfer; Rotation Transfer; Shift Transfer; and Remedial Transfer

Transfer
1 Employee Initiated Transfer: Primarily in employee interest, according to his/her convenience and desire Temporary or Permanent (due to ill-health, family reasons, higher education, correct wrong placement, challenging jobs, career advancement) 2 Company Initiated Transfer Temporary (absenteeism, fluctuation in output, vacation) or Permanent (organizational reasons, employee development, improve employee satisfaction, minimize corrupt practices) 3 Public Initiated Transfer: Generally for governmental reasons like

employee behavior against social norms or public interest Benefits of Transfer: Reduces monotony/boredom; increases job satisfaction; improves knowledge, skills and morale; contributes to organizational effectiveness
Demerits: adjustment problems; inconvenience and cost; loss of man days; reduces employee contribution and commitment

Demotion
Reassignment of lower level job with appropriate delegation of responsibilities and authority required with lower pay Used rarely as it adversely affects job satisfaction, morale and career prospects Reasons for transfer: (1) Unsuitable and incompetent employees at higher level jobs following promotion rationalization of talent; (2) Adverse business conditions reduce production and product lines or closure of sections/departments; (3) Improved technology/methods of operation need high-skilled employees; and (4) for disciplinary reasons Demotion principles: Specification of circumstances, temporary/ permanent; specification of superior authorized to initiate; basis of promotion like length of service, merit; following open policy

Absenteeism
Failure of an employee to report to work without information practice/habit of being an absentee habitually stays away from work Types of absenteeism: (a) authorized; (b) unauthorized absenteeism; (c) willful absenteeism; absenteeism caused by circumstances beyond one s control. Lowest on pay day and increases on following days; high absenteeism among those below 25 and above 40; high in production department; seasonal in traditional industries Causes of absenteeism: Maladjustment with job demands and working conditions; unsatisfactory housing, welfare facilities; social reasons; alcoholism; indebtedness; unsound HR policies; low wages and inadequate leave facilities Measures to minimize absenteeism: (a) careful selection of people; (b) humanistic approach; (c) proactively handling grievances; (d) hygienic conditions; (e) welfare measures; (f) higher wages; (g) improved communication; (h) cordial employee relations; (i) worker education; (j) counseling; and (k) attendance bonus/inducement

External Mobility
Shifting of employees into and out of an organization rate of change during a definite period measures the extent old employees leave and new employees enter into an organization Types of Labor Turnover: (1) Accessions addition of new candidates, re-employment of former employees, and employees called back to work after lay-off; (2) Separations: termination of employment voluntary resignations; elimination or reduction of work for business reasons; (3) Lay-off/Discharge unsatisfactory performance/conduct of employees; (4) Retirement/Death Effects of External Mobility: deployment/re-deployment among jobs; increase in cost of re-employment, training, induction, placement, rate of accidents and wastage, declining efficiency and productivity It causes problems to employees like discontinuation of service, loss of salary, disadvantage in getting fringe benefits like quarters, privilege leave, bonus, loss of retirement benefits, etc. HR managers should find means to retain employees in view of adverse effects on the organization and employees

Retention
Retention management assumes significance due to shortage of talented and qualified people in a competitive business environment Organizations adopt strategies to retain employees with superior skills, talent and competencies because
(1) Their abilities, commitment and contributions are known (2) Potential of new employees is sometimes a myth (3) Cultural fit, aspirations, expectations are judged, tested and clarified (4) Savings on recruitment, relocation and training

Retention Strategy should include design and implementation of

(1) competitive compensation packages, benefits and social security (2) congenial inter-personal dynamics and recognition (3) continuous training and development (4) efficient career planning (5) effective grievance handling and resolution (6) employees family involvement (7) meeting self-actualization needs of employees (8) encouraging internal mobility and innovative job rotation