Hrm Ppt Full

11Prepared by Ms. Ritu AroraPrepared by Ms. Ritu Arora

Human Resource Human Resource ManagementManagement

Prepared by Ms. Ritu AroraPrepared by Ms. Ritu Arora 22

Human Resources ManagementHuman Resources Management


Organization as Input-Output systemOrganization as Input-Output system

Acquiring inputs from environment

Using financial resources by human resources

Conversion Process

By human resources

OutputsExporting to Environment

By human resources


MeaningMeaningIt is a process of bringing people and organizations It is a process of bringing people and organizations

together so that the goals of each are met.together so that the goals of each are met.

According to Invancevich and Glueck : “HRM is According to Invancevich and Glueck : “HRM is concerned with the most effective use of people to concerned with the most effective use of people to

achieve organizational and individual goals.”achieve organizational and individual goals.”

According to Milkovich and Boudreau : “Human According to Milkovich and Boudreau : “Human Resource Management is a series of integrated Resource Management is a series of integrated

decisions that form the employment relationship; decisions that form the employment relationship; their quality contributes to the ability of the their quality contributes to the ability of the

organizations and the employees to achieve their organizations and the employees to achieve their objectives.”objectives.”


Features of Human Features of Human Resource ManagementResource Management

•A process•Pervasive force•Action Oriented

•Individually Oriented•People Oriented

•Development Oriented•Integrating Mechanism

•Comprehensive Function•Auxiliary Service

•Inter-disciplinary Function•Continuous Function


Scope of HRMScope of HRM

The scope of HRM is very wide.

The Indian Institute of Personnel Management has specified the scope of HRM as follows:

Personnel Aspect

Welfare Aspect

Industrial Relations Aspect


Comparison on HRM and Comparison on HRM and Personnel ManagementPersonnel Management

There have been several approaches on the concepts of relationship between HRM and Personnel management:

Comparison includes studying Similarity and Differences.

Armstrong suggests common features of Personnel management and Human Resource

Management:

1. Strategies of both stem from the business strategy.

2. Both these recognize that line managers are responsible for managing people. And the line

managers are enabled by the advice and support of the personnel department to carry out their

responsibilities.


3. 3. The value of personnel management and those of soft version of human resource management are identical

vis-à-vis respect for individual, integration of individual needs and organizational goals, and development of

people to accomplish competence to facilitate individual and organizational interests.

4. Both attach importance to the function of matching people to ever-changing business requirements.

5. Both use the same range of selection, competence analysis, performance management, training,

management development and reward management techniques.

6. The soft version of human resource management and personnel management stresses the process of

communication and participates within the employee relations analysis.


Differences between Personnel Differences between Personnel Management and HRM Management and HRM

1. Personnel Management is a routine, maintenance-oriented administrative function; human resource

management places emphasis on a continuous development of people at work.

2. Personnel Management function is mainly reactive and responds to the demands of an organization whenever they arise, while HRM is proactive function (more future

oriented)

3. Personnel Management is seen as independent function and sub-functions without giving due-regard to

organizational strategies and processes. HRM is viewed as sub-system of the organization as it takes into

account its linkages and interfaces with all other parts of the organization.


4. 4. Personnel Management has a narrow focus it mainly works on improving the efficiency of personnel in isolation without emphasizing the relevance of efficiency in the organizational

context, while HRM undertakes a systems view which attempts to create a proper organizational culture.

5. Personnel management emphasizes on economic rewards and traditional job design for better performances, while HRM

emphasizes on the satisfaction of higher needs for motivating people, such as autonomous work groups,

challenging jobs, creativity.

6. Personnel Management considers job satisfaction and higher moral as a cause of improved performance, while HRM

works on the premise that better performance itself is a source of satisfaction and high morale.


Evolution of HRMEvolution of HRMThe evolution to the current state of HRM has

passed through several stages:

Industrial RevolutionIndustrial Revolution

Scientific ManagementScientific Management

Trade UnionismTrade Unionism

Human Relations MovementHuman Relations Movement

Human Resources ApproachHuman Resources Approach


HRM in Changing EnvironmentHRM in Changing EnvironmentThe job of an HR manager is to balance the demands The job of an HR manager is to balance the demands and expectations of the external groups with the and expectations of the external groups with the internal needs and achieve the assigned tasks in an internal needs and achieve the assigned tasks in an efficient ways.efficient ways.

So the HRM practices in an organization are So the HRM practices in an organization are influenced by two broad categories of factors– influenced by two broad categories of factors– Environmental factors and Organizational factorsEnvironmental factors and Organizational factors..

I) Environmental factors:-I) Environmental factors:-• Economic Environment

• Legal Environment• Technological Environment• Socio-cultural Environment


Economic EnvironmentEconomic Environment• Population v/s workforce

• Workforce market conditions• National Income

• Inflationary pressures

Legal EnvironmentLegal Environment• Political Stability

Technological EnvironmentTechnological Environment• Reengineering work processes

• Flexible Manufacturing Systems

Socio-Cultural EnvironmentSocio-Cultural Environment• Slashing of jobs

• Trade Unions• Work force diversity


II) Organizational factorsII) Organizational factors• Organization’s StrategyOrganization’s Strategy

• Organizational CultureOrganizational Culture

• Organizational Financial PositionOrganizational Financial Position

Corporate level Strategy

Business level Strategy

Functional Level Strategy

High Performing Culture

Low Performing Culture


III) International PerspectiveIII) International Perspective

Globalization of industries has led to the Globalization of industries has led to the considerations of following international factors.considerations of following international factors.

Cultural DiversityCultural Diversity• Individualism and Collectivism

• Power Orientation• Uncertainty Avoidance

• Masculinity• Time Orientation

Workforce DiversityWorkforce Diversity• Parent-country national

• Host-country National• Third-country National

Language DiversityLanguage Diversity

Economic DiversityEconomic Diversity


HRM

TECHNOLOGICAL

CUTOMERS

PPRODUCTION

TRADE

ORGN. STRUCTURESOCIAL&

ECONOMICS

FINANCE

POLITICAL UNION

ORGN.POLITICS

GOVERNMENT& LEGAL

MARKETING

RELIGIOUS

FIGURE:Environmental scanning of HRM


Role of HR PractitionerRole of HR PractitionerThe HR department generally acts in an advisory capacity; it The HR department generally acts in an advisory capacity; it provides information, offer suggestions, counsels and assists provides information, offer suggestions, counsels and assists all the line managers in the organization.all the line managers in the organization.

Advisory Role

• The Conscience Role

• Counsellors Role

• Mediator’s Role

• Representative Role

• Clerical Role

• Fire-Fighting / Legal Role

• Welfare Role

• Problem solver

• Change agent

• Decision Maker

• Executive


HR PoliciesHR PoliciesAfter the establishment of objectives of Human After the establishment of objectives of Human Resource Management, HR policies are to be Resource Management, HR policies are to be formulated.formulated.

Definition:-Definition:-

A policy is a plan of action.A policy is a plan of action.

Brewster and Rich bell defined “HR policies as a set of proposals and actions that act as a reference point for managers in their dealings with employees.”-They constitute guides to action.They constitute guides to action.-They furnish the general standards or bases on They furnish the general standards or bases on which decisions are based.which decisions are based.-Their genesis lies in an organization’s values, Their genesis lies in an organization’s values, philosophy, concepts and principlesphilosophy, concepts and principles


Advantages of HR PoliciesAdvantages of HR PoliciesPolicies are useful instructional devices, that offer Policies are useful instructional devices, that offer

various advantages to HR working at various levels.various advantages to HR working at various levels.

• DelegationDelegation• UniformityUniformity

• Better ControlBetter Control• Standards of efficiencyStandards of efficiency

• ConfidenceConfidence• Speedy DecisionsSpeedy Decisions

• Coordinating DevicesCoordinating Devices


Obstacles in Administrating Obstacles in Administrating HR Policies:-HR Policies:-

1.1. Managers are reluctant to follow Managers are reluctant to follow guidelines as it curtails their freedom.guidelines as it curtails their freedom.

2.2. Conflict between implied and Conflict between implied and expressed policy.expressed policy.

3.3. Not easy to Communicate.Not easy to Communicate.

4.4. Makes managers rigid.Makes managers rigid.


Characteristics of sound HR Characteristics of sound HR Policy.Policy.

While developing a HR Policy, management While developing a HR Policy, management must pay attention to:-must pay attention to:-

• Relation of policies with objectivesRelation of policies with objectives• Easy to understandEasy to understand

• PrecisePrecise• Stable as well as flexibleStable as well as flexible

• Based on factsBased on facts• Appropriate numberAppropriate number

• Just, fair and equitableJust, fair and equitable• ReasonableReasonable

• Based on Reviews.Based on Reviews.


Coverage of HR Policies:-Coverage of HR Policies:-a) Social responsibilitya) Social responsibility

EquityEquity

Quality of Work LifeQuality of Work Life

b) Employment Practicesb) Employment Practices

c) Promotion Policiesc) Promotion Policies

d) Development Policiesd) Development Policies

e) Relations Policiese) Relations Policies


Sources of content for Sources of content for formulating policiesformulating policies

• Past experiences of the organization.Past experiences of the organization.• Existing practices and experiences in other Existing practices and experiences in other

organizationsorganizations• Attitudes and philosophies of managementAttitudes and philosophies of management• Knowledge and experience gained by all Knowledge and experience gained by all

line managers and personnel managers in line managers and personnel managers in

handling personnel issues.handling personnel issues.• Organizational policies. Organizational policies.


Functions of HRMFunctions of HRMAs HRM is the management of human resources in an organization and is concerned with the creation

of harmonious working relationship among its participants and bringing about their utmost

individual development.

Functions of HRMFunctions of HRM

Managerial functionsManagerial functions

Operative functionsOperative functions


Managerial FunctionsManagerial Functions Management is a multi-purpose organ which has Management is a multi-purpose organ which has

three jobs, two of which are directly related to three jobs, two of which are directly related to personnel managing a business –personnel managing a business –

““managing employees” and the “work”managing employees” and the “work”

a)a) PlanningPlanning

b)b) OrganizingOrganizing

c)c) DirectingDirecting

d)d) Coordinating and ControllingCoordinating and Controlling


MANAGERIAL FUNCTIONSMANAGERIAL FUNCTIONS

INPUTSHuman And Economic Resources Interacting

With Environmental Changes

PlanningDetermination of short to long Range plans to

AccomplishOrganization

Objective

Organizing:Development of the

orgn. structure according to

Predeterminedplans

Directing:stimulation andMotivation ofOrganization

PersonnelAccording to

predeterminedplans

Controlling:assurance that directed action is

Taking place According toPredetermined plans.

Outputs:goods and services

needed by the Organization customers


Operative FunctionsOperative Functions

The operative functions of HRM are The operative functions of HRM are concerned with the activities specifically concerned with the activities specifically

dealing with:dealing with:

• The Procurement FunctionThe Procurement Function• The Development FunctionThe Development Function

• The Compensating FunctionThe Compensating Function• The Integration FunctionThe Integration Function

• The Maintenance FunctionThe Maintenance Function


HRM and Corporate ObjectivesHRM and Corporate Objectives

HRM is being used to develop competitive advantage HRM is being used to develop competitive advantage and, therefore, its role in strategic management has and, therefore, its role in strategic management has been well recognized. “Strategic management is the been well recognized. “Strategic management is the

continuous process of relating the organization with its continuous process of relating the organization with its environment by suitable course of action involving environment by suitable course of action involving

strategy formulation and its implementation.”strategy formulation and its implementation.”

Strategy is course of action through which the Strategy is course of action through which the organization relates itself with the environment so as organization relates itself with the environment so as

to achieve its objectives.to achieve its objectives.


Corporate mission

and objectives

Environmental opportunities and threats

Strategic Alternatives

Corporate strengths

and weaknesses

Personal Values and aspirations of

strategists

Choice of strategy

Strategy Implementation

Activating strategy

Structural implementation

Behavioral implementation

Functional implementation

Role of HRM

Acquiring, Developing,

Integrating, and Retaining right

personnel

Role of HRM in corporate strategic management process


Human Resource Information SystemHuman Resource Information System

• It is a system designed to supply information required for effective management of human resources in an organization;

• A Computerized HRIS is designed to monitor, control and influence the movement of people from the time they join the organization till the time they separate from the organization.


Scope of Computerized HRISScope of Computerized HRIS

• Recruitment sub system information;• Manpower Planning Sub system information;• Personnel administration sub system information;• Training sub system information;• Maintenance Sub System Information;• Appraisal sub system information system;• Payroll sub system information system;• Personnel Research Sub System Information;• Job Analysis and Design subsystem Information.


Objectives of HRISObjectives of HRIS• To make the desired information available in the

right form to the right person at the right time;• To supply the required at the reasonable cost;• To use the most efficient methods of processing

data;• To provide necessary security and secrecy for

important and/or confidential information;• To keep the information up to date.


Applications of HRISApplications of HRIS• Job Descriptions;• HR Planning;• Staffing;• Succession Planning;• Training and Development;• Performance Appraisal;• Job Evaluation;• Compensation;• Climate Analysis.


Human Resource PlanningHuman Resource Planning“Human Resource Planning is the process by which an organization ensures that it has the right number and

kind of people, at the right place, at the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall

objectives.”

- HRP is a process- It involves determination of needs- It also takes into account the manpower availability at

a future period.


Importance of Human Resource Importance of Human Resource PlanningPlanning

• Reservoir of Talent• Prepare People for Future

• Expand or Contract• Cut Costs

• Succession Planning


Human Resource Planning Human Resource Planning ProcessProcess

Organizational Objectives, Plans and policies

Human Resource Planning

Identification of human resource gap

Actions plan for bridging gap

Forecasting supply of human resources

Shortage of human resources

Forecasting needs for human resources

Surplus human resources


Steps in HRPSteps in HRP

1 Organizational objectives, plans and policies1 Organizational objectives, plans and policies

2. Human Resource Planning:2. Human Resource Planning:

Forecasting the demand and supply of Forecasting the demand and supply of human Resourceshuman Resources

3. Identification of Human Resource Gap3. Identification of Human Resource Gap

4. Action Plans4. Action Plans


Techniques for Forecasting Techniques for Forecasting Human Resource NeedsHuman Resource Needs

• Managerial judgement MethodManagerial judgement Method• Delphi TechniqueDelphi Technique

• Work-Study TechniqueWork-Study Technique• Ratio-Trend AnalysisRatio-Trend Analysis

• Statistical and Mathematical ModelsStatistical and Mathematical Models


Forecasting of Human Resource Forecasting of Human Resource SupplySupply

• Human Resource Flow ModelHuman Resource Flow Model• Human Resource InventoryHuman Resource Inventory

Skills InventorySkills Inventory

Management InventoryManagement Inventory


Barriers to effective Human Barriers to effective Human Resource Resource PlanningPlanning

1.1. Improper Linkage between HRP and Improper Linkage between HRP and Corporate StrategyCorporate Strategy

2.2. Inadequate Appreciation of HRPInadequate Appreciation of HRP

3.3. Rigidity in AttitudesRigidity in Attitudes

4.4. Environmental UncertaintyEnvironmental Uncertainty

5.5. Conflict between Long-term and short-Conflict between Long-term and short-term HRPterm HRP

6.6. Inappropriate HR Information SystemInappropriate HR Information System


Job AnalysisJob Analysis

Developing an Organization’s structure results in creating Developing an Organization’s structure results in creating jobs which have to be staffed.jobs which have to be staffed.

Job:-Job:- A job may be defined as a “ Collection or aggregation A job may be defined as a “ Collection or aggregation of tasks, duties and responsibilities which as a whole, are of tasks, duties and responsibilities which as a whole, are

regarded as a regular assignment to individual employees”regarded as a regular assignment to individual employees”

Job AnalysisJob Analysis is the process of studying and collecting is the process of studying and collecting information relating to the operations and responsibilities of information relating to the operations and responsibilities of a specific job. The immediate products of the analysis are a specific job. The immediate products of the analysis are

job descriptions and job specifications”job descriptions and job specifications”


Uses of Job analysisUses of Job analysis

• Organizational DesignOrganizational Design• Acquisition of personnelAcquisition of personnel

• Human resource DevelopmentHuman resource Development• Job evaluation and compensationJob evaluation and compensation

• Performance AppraisalPerformance Appraisal• Safety and HealthSafety and Health

• Employee counsellingEmployee counselling


Determination of uses of job analysis

Strategic Choices in job analysis

Information Collection

Information Processing

Job Description

Job /Person Specification

JOB ANALYSIS PROCESS


Job DescriptionJob DescriptionA job description is an organized, factual statement of

duties and responsibilities of a specific job.

It is basically descriptive in nature. It provides both organizational information and functional information.

1. Job Identification

2. Job Summary

3. Job duties and responsibilities

4. Relation to other jobs

5. Supervision

6. Machine

7. Working Conditions

8. Hazards


Job SpecificationJob SpecificationJob Specification is a statement of the minimum

acceptable human qualities necessary to perform a job properly.

It tells what kind of person to recruit and for what qualities that person should be tested.

1. Physical Characteristics

2. Psychological Characteristics

3. Responsibilities

4. Other features of demographic nature


RecruitmentRecruitment


RecruitmentRecruitmentRecruitment is the process of finding and attracting capable Recruitment is the process of finding and attracting capable applicants for employment. The process begins when new applicants for employment. The process begins when new recruits are sought and ends when their applications are recruits are sought and ends when their applications are

submitted. The result is a pool of applicants from which new submitted. The result is a pool of applicants from which new employees are selected. ----- employees are selected. ----- Werther and DavisWerther and Davis

Human Resource Planning

Job Analysis

Recruitment Selection Placement

Linkage of recruitment to human resource Acquisition


Purpose and Importance of Purpose and Importance of RecruitmentRecruitment

Recruitment represents the first contact that a company Recruitment represents the first contact that a company makes with the personnel having potential to be makes with the personnel having potential to be

employed.employed.• It determines the present and future human resource It determines the present and future human resource

requirements in conjunction with human resource requirements in conjunction with human resource planning.planning.

• It helps to increase the pool of potential personnel.It helps to increase the pool of potential personnel.• It helps in increasing the success rate of the selection It helps in increasing the success rate of the selection

process.process.• It reduces the rate of initial turnover rate.It reduces the rate of initial turnover rate.

• It helps in evaluating the effectiveness of various It helps in evaluating the effectiveness of various recruitment techniquesrecruitment techniques

• It helps to meet the organization’s legal and social It helps to meet the organization’s legal and social obligations regarding composition of its workforce.obligations regarding composition of its workforce.


Factors Affecting RecruitmentFactors Affecting RecruitmentInternal factors:Internal factors:

Company’s pay package;Company’s pay package;

Quality of work life;Quality of work life;

Organizational culture;Organizational culture;

Career planning and growth;Career planning and growth;

Company’s size;Company’s size;

Company’s products and services;Company’s products and services;

Geographical spread of the company’s operations;Geographical spread of the company’s operations;

Company’s growth rate;Company’s growth rate;

Role of trade unions;Role of trade unions;

Cost of recruitment;Cost of recruitment;

Company’s name and fame.Company’s name and fame.


External factors:External factors:

Socio economic factors;Socio economic factors;

Supply and demand factors;Supply and demand factors;

Employment rate;Employment rate;

Labour market conditions;Labour market conditions;

Political, legal and governmental factors;Political, legal and governmental factors;

Information systems.Information systems.


Sources of RecruitmentSources of RecruitmentSources are those where prospective employees are Sources are those where prospective employees are available like employment exchange while techniques available like employment exchange while techniques are those, which stimulate the prospective employees are those, which stimulate the prospective employees

to apply for jobs like nomination by employees, to apply for jobs like nomination by employees, advertising, promotion etc.advertising, promotion etc.

Internal sourcesInternal sources• Present Permanent employeesPresent Permanent employees

• Present temporary and casual employeesPresent temporary and casual employees• Retrenched or retired employeesRetrenched or retired employees

• Dependents of deceased, disabled, retired and Dependents of deceased, disabled, retired and present employeespresent employees

• PromotionsPromotions• TransfersTransfers


External SourcesExternal Sources

External sources are those, which are outside External sources are those, which are outside the organizational pursuits. These include:-the organizational pursuits. These include:-

• Campus recruitmentCampus recruitment• Private Employment agenciesPrivate Employment agencies• Public Employment exchangesPublic Employment exchanges

• Professional AssociationsProfessional Associations• Data BanksData Banks

• Casual ApplicationsCasual Applications• Trade UnionsTrade Unions

• AdvertisementsAdvertisements• Employee ReferralsEmployee Referrals


SelectionSelection


SelectionSelectionOnce the recruitment is through with, the management Once the recruitment is through with, the management

has to perform the function of selecting the right has to perform the function of selecting the right candidate at right time.candidate at right time.

This is done through selection procedure and it a This is done through selection procedure and it a customized one.customized one.

It basically depends upon several factorsIt basically depends upon several factors• Company’s RequirementCompany’s Requirement

• Financial resources allocated for the sameFinancial resources allocated for the same• Company’s past recordsCompany’s past records

• Company’s image in the marketCompany’s image in the market


Steps in selection procedure : -Development bases for selection

Job Analysis Application Blanks

Human Resource Plan Written Examination

Recruitment Preliminary Interview

Business Games

Tests

Final Interview

Assess the fit between Medical Examination

The job and the candidate Line Manager’s Decision

Employment


Selection ProcedureSelection Procedure

• Job Analysis:-Job Analysis:- It is the basis for selecting the right candidate It is the basis for selecting the right candidate

Job descriptionJob description

Job specificationJob specification

Employee specificationEmployee specification

2.2. Recruitment:-Recruitment:- It refers to the process of searching for It refers to the process of searching for prospective employees and stimulating them to apply for jobs prospective employees and stimulating them to apply for jobs

in an organization.in an organization.

3.3. Application Blank:-Application Blank:- It is a form through which the data is It is a form through which the data is collected about the candidates and the initial screening is collected about the candidates and the initial screening is

done.done.

- Personal Background Information- Personal Background Information

- Educational Attainments- Educational Attainments

- Work experience- Work experience

- Salary- Salary

- Personal Details- Personal Details

- References- References


4. Written Examination:-4. Written Examination:- The candidate qualified through the The candidate qualified through the application blank is required to pass through the written test.application blank is required to pass through the written test.

- Quantitative knowledge- Quantitative knowledge

- Aptitude reasoning- Aptitude reasoning

- General knowledge- General knowledge

- English language knowledge- English language knowledge

5. Preliminary Interview:-5. Preliminary Interview:- This interview is to solicit necessary This interview is to solicit necessary information from the prospective candidates and to assess the information from the prospective candidates and to assess the

applicant’s suitability for the job.applicant’s suitability for the job.

This is known as stand-up interview.This is known as stand-up interview.

At this level business games are also used as a tool for judging At this level business games are also used as a tool for judging candidates suitability for the job, which mainly includes the candidates suitability for the job, which mainly includes the

techniques used to judge the situation handling and problem techniques used to judge the situation handling and problem solving.solving.


6. Group Discussions:-6. Group Discussions:- This technique is used in order to This technique is used in order to secure further information regarding the candidates suitability for secure further information regarding the candidates suitability for

the job. the job.

7. Tests:-7. Tests:- It is a most significant stage in the process of selection. It is a most significant stage in the process of selection.

These employment tests are an instrument designed to measure These employment tests are an instrument designed to measure the nature and degree of one’s psychological potentialities, based the nature and degree of one’s psychological potentialities, based

on psychological factors, essential to perform a job.on psychological factors, essential to perform a job.

Types of testsTypes of tests• Aptitude testsAptitude tests

• Achievement testsAchievement tests• Situational testsSituational tests

• Interest testsInterest tests• Personality testsPersonality tests


8. Final Interview:-8. Final Interview:- In this the interviewer matches the information In this the interviewer matches the information obtained about the candidates through various means, to the job obtained about the candidates through various means, to the job

requirements and to the information obtained through his own requirements and to the information obtained through his own observation.observation.

Types of interviewTypes of interview

Preliminary Interview

Core Interview

Decision-Making Interview


9. Medical examination:-9. Medical examination:- Certain jobs require certain physical Certain jobs require certain physical qualities like clear vision, perfect hearing, unusual stamina, qualities like clear vision, perfect hearing, unusual stamina,

tolerance of hard working conditions.tolerance of hard working conditions.

10. Reference Checks:-10. Reference Checks:- After the completion of the final After the completion of the final interview and medical examination, the personal departments interview and medical examination, the personal departments

checks the references with the candidates.checks the references with the candidates.

11. Final decision by line managers:-11. Final decision by line managers:- The final decision has The final decision has to be made by the line manager, under whom the candidate to be made by the line manager, under whom the candidate

has to actually perform.has to actually perform.

12. Employment:-12. Employment:- The successful and the unsuccessful The successful and the unsuccessful candidates have to be informed and the appointment letter candidates have to be informed and the appointment letter

must be sent.must be sent.


PlacementPlacementWhen once the candidate reports for duty, the When once the candidate reports for duty, the

organization has to place him initially in that job for organization has to place him initially in that job for which he is selected.which he is selected.

- Employees are trained for the job and also in relation Employees are trained for the job and also in relation to related jobs.to related jobs.

- Employee is placed on the actual position, only when Employee is placed on the actual position, only when the probation period is over.the probation period is over.

- if the performance is satisfactory then only the if the performance is satisfactory then only the candidates are regularized.candidates are regularized.


INDUCTIONINDUCTION

““Induction is the process of receiving and welcoming Induction is the process of receiving and welcoming an employee when he first joins a company and giving an employee when he first joins a company and giving

him the basic information he needs to settle down him the basic information he needs to settle down quickly and happily and start work.”quickly and happily and start work.”

This process is having lot of significance, as the rate This process is having lot of significance, as the rate of turnover among new employees is very high in of turnover among new employees is very high in

comparison to senior executives.comparison to senior executives.

(Lectures, handbooks, films, group seminars are used (Lectures, handbooks, films, group seminars are used to impart the information to new employees about the to impart the information to new employees about the

environment of the job)environment of the job)


The employees are made aware :-The employees are made aware :-

(i)(i) About the companyAbout the company• History, growth, management, products, History, growth, management, products,

markets, customers etcmarkets, customers etc• Basic conditions of employment-hours of Basic conditions of employment-hours of

work, shifts, holidays, retirement benefits work, shifts, holidays, retirement benefits etc.etc.

• Pay, allowances, deductionsPay, allowances, deductions• Grievances proceduresGrievances procedures

• Canteen and restaurant facilitiesCanteen and restaurant facilities• Unions, negotiating machineriesUnions, negotiating machineries


(ii) About the department(ii) About the department•The department head introduces the new employee The department head introduces the new employee

to the important employees of the department.to the important employees of the department.•Functioning style of the departmentFunctioning style of the department

•Work distribution, assignment, working hours etc.Work distribution, assignment, working hours etc.

(iii) About the superiors, subordinates etc(iii) About the superiors, subordinates etc•To person whom he has to reportTo person whom he has to report

•To the persons with whom his work is relatedTo the persons with whom his work is related•To the persons who are to report himTo the persons who are to report him

•To his colleaguesTo his colleagues


Objectives of InductionObjectives of Induction• Putting new employees at easePutting new employees at ease

•Creating the interest in his job and the companyCreating the interest in his job and the company•Providing basic information about working Providing basic information about working

arrangementsarrangements•Indicating the standards of performance and Indicating the standards of performance and

behaviourbehaviour•Informing them about training facilitiesInforming them about training facilities•Creating the feeling of social securityCreating the feeling of social security

•Minimizing the reality shock which would be Minimizing the reality shock which would be caused due to incompatibility.caused due to incompatibility.


Internal MobilityInternal MobilityThe lateral or vertical movement The lateral or vertical movement (promotion, transfer, (promotion, transfer,

demotion or separation)demotion or separation) of an employee within an of an employee within an organization is called internal mobility. organization is called internal mobility.

It may take place between jobs in various departments or It may take place between jobs in various departments or divisions. divisions.

Some employees may leave the organization for reasons Some employees may leave the organization for reasons such as better prospects, retirement, terminations etc. such as better prospects, retirement, terminations etc.

Such movements are known as external mobility.Such movements are known as external mobility.


TransfersTransfers

A transfer is a change in job assignment. A transfer is a change in job assignment. It may involve a promotion or demotion or It may involve a promotion or demotion or

no change at all in status and no change at all in status and responsibility.responsibility.


Purpose of TransferPurpose of Transfer

• To meet the organizational requirements • To satisfy the employee needs• To utilize employees better• To make the employee more versatile • To adjust the workforce • To provide relief• To reduce conflicts• To punish employee


PromotionPromotion • Promotion refer to upward movement of an

employee from current from current job to another that is higher in pay, responsibility and/or organizational level. promotion brings enhanced status, better pay, increased responsibility, better working condition to the promote.


Purpose of promotionPurpose of promotion

• To utilize the employee skill, knowledge• To develop competitive spirit • To develop competent internal source of

employees• To promote employee self-development • To promote interest in training • To build loyalty• To reward committed


DemotionDemotion • Demotion is the downward movement of an employee in

the organizational hierarchy with lower status and pay.• It is a downgrading process where the employee suffers

considerable emotional and financial loss in the form of lower rank, power and status, lower pay and poor working conditions.


Causes of DemotionCauses of Demotion

• A promote is unable to meet the challenges posed by the new job

• Due to adverse business conditions,organization may decide to lay off some and downgrade other jobs.

• Demotion may be used as disciplinary tools against errant employees


SeparationsSeparations “A separations is a decision that the individual

and the organization should part.” separations can take several forms, such as temporary leaves of absence, attrition, layoffs.


TrainingTraining


SeparationsSeparations • Temporary leaves or absence • Resignation• Retirement• Death• Lay off and retrenchment • Outplacement• Suspension• Discharge and dismissal


Training Organization and individual should develop and

progress simultaneously for their survival and attainment of mutual goals.

In order to meet these, organization’s formulate human resource training programmes.

According to dale S. Beach-

“Training is the organizational procedure by which people gain knowledge and skill for a definite purpose.”


Need for trainingNeed for training

Training is not something just meant for new employees but even it is needed on a continuous basis.

• To match the employee specification with the job requirement and organizational needs.

• Organizational viability and the transformation process• Technological advances• Organizational complexity• Human relation • Change in job assignment


Training objectivesTraining objectives

To prepare the employee both new and old to meet the present as well as the changing requirement of the job.

• To prevent obsolescence.• To impart the new entrants the basic knowledge and skill

needed for the job.• To prepare the employee for higher level tasks• To assist employees to function more effectively in their

present positions• To build up a second line of competent officer and prepare

them to occupy more responsible position.• To ensure smooth and efficient working of a department.• To ensure economical output of required quality


ASSESSMENT OF TRAINING ASSESSMENT OF TRAINING NEEDSNEEDS

Training needs are identified on the basis of organizational analysis, job analysis and man analysis.

• Organizational requirement/weaknesses• Department requirement/weaknesses• Job specification• Identifying specific problems• Anticipating failure problem.• Management' requests• Observation• Interviews• Group conferences• Questionnaire surveys


PRINCIPLES OF TRAININGPRINCIPLES OF TRAINING

• Motivation • Progress information• Reinforcement • Practice• Full v/s part• Individual differences


AREAS OF TRAININGAREAS OF TRAINING

• Company policies and procedures• Specific skill • Human relations• Problem solving• Managerial and supervisory skills• Apprentice training


Types of TrainingTypes of Training

A variety of training programmes are used in different organizations, depending on requirements and size of their manpower. Some of the commonly used programmes may be listed thus:

• Orientation Training• Job Instruction Training• Refresher Training• Apprenticeship Training• Vestibule Training


Training methodsTraining methods

• On the job training

– Job-rotation– Coaching– Job Instruction– Training Through Step-by-step– Committee Assignments


• Off the job training

– Vestibule Training– Role Playing– Lecture Method – Conferences or Discussions– Programmed Instruction


Advantage of trainingAdvantage of training • Increased productivity• Heightened morale• Reduced supervision• Reduced accidents• Increased organizational stability


Evaluation of Training ProgrammeEvaluation of Training ProgrammeThe process of training evaluation has been defined as “any attempt to obtain information on the effects of training performance and to assess the value of training in the light of that information.”

Evaluation helps in controlling and correcting the training programme.

Hamblin suggessted five levels at which evaluation of training can take place:-

• Reactions• Learning• Job Behaviour• Organization• Ultimate Value


Methods of EvaluationMethods of Evaluation

• Questionnaires

• Tests

• Interviews

• Studies

• Human Resource factors

• Cost Benefit analysis

• Feedback


OBJECTIVESOBJECTIVES• Determine the ability of the trainees to perform

jobs for which they were trained.• Determine the specific nature of training

deficiencies.• Determine whether the trainees require any

additional on the job training.• Determine the cost effectiveness of the

programme.


PRINCIPLESPRINCIPLES

• Evaluator must be clear about the goals & purpose of evaluation.

• Continuous• Specific• Provides the means & focus for the trainers to

appraise themselves, their practices & their products.

• Based on objective method and standards.


ADVANTAGESADVANTAGES• Helps in controlling & correcting the training

programme.• Helpful to see what future changes in training

phase should be made to make it more effective.• It’s utility to achieve the goal of an organization.• Helpful to get new ideas, reactions & identify

weak segments in the total training programme.


FIVE LEVELS FOR EVALUATIONFIVE LEVELS FOR EVALUATION

ULTIMATE VALUE

ORGANISATIONJOB

BEHAVIOUR

LEARNING

REACTION

FIVE LEVELS


CRITERIA FOR EVALUTIONCRITERIA FOR EVALUTION

INTERNAL

PARTICIPANTSREACTION

EXTERNAL


TECHNIQUES OF TECHNIQUES OF EVALUATIONEVALUATION

• Experimental & control groups…

• Longitudinal or time series analysis…

• Questionnaires and structured interviews…

• Cost benefit analysis…


ISSUES TO CONSIDER IN AN ISSUES TO CONSIDER IN AN EVALUATIONEVALUATION

RELEVANT ISSUES TO EVALUATE

WHAT

TO

MEASURE

WHAT TO EXAMINE FOR

ANSWERS

HOW TO COLLECT DATA

Are the participants learning, changing attitudes, or improving skills?

Participants attitudes or skills before and after training or development sessions.

CommentsMethods of participations

Co-workers

superiors

Interviews; questionnaires;

records; observations

Are the training or development materials used on the jobs?

Participants on-the-job performance, behavior,

And style

Subordinates performance,

attitudes & style

Records; interviews;

Questionnaires;

Critical incidents

observations

What are the costs of training and development programs and techniques?

Fixed and variable costs of conducting training or development

Cost of trainers; Participants time; Travel expenses; Consultants fees; training aids; rent

utilities

Budget records

How long does the training or development have an effect on participants?

Participant on-the-job performance, behavior & style over an extended period of time

Subordinates performance,

attitude & style

Records; interviews;

Questionnaires;

Critical incidents

observations


CAREER PLANNINGCAREER PLANNING

Individual Career Planning

Organizational Career Planning


WHAT IS CAREER PLANNING?WHAT IS CAREER PLANNING?Career is all the jobs that are held during one’s working life.

Career Path is the sequential pattern of jobs that form a career.

Career Planning is the process by which one selects career goals and

the path to these goals

Career Development is those personal improvements one undertakes

to achieve a personal career plan.

Career Management is the process of designing and implementing

goals, plans and strategies to enable the organization to satisfy

employee needs while allowing individuals to achieve their career

goals.


CAREER STAGES:CAREER STAGES:

1. Exploration

2. Establishment

3. Mid-Career stage

4. Late Career

5. Decline


P

E

R

F

O

R

M

A

N

C

E

AGEStages in Career Development

Exploration

Establish -ment

Transition from college

to work

Getting first job

and being

accepted

Mid- career

Performance increaseor

decrease or maintain

Late Career

The elder states person

Decline

Retirement


NEED FOR CAREER PLANNINGNEED FOR CAREER PLANNING

To attract competent persons and to retain them in

the organization

To provide suitable promotional opportunities

To enable the employees to develop and make them

ready to meet future challenges

To increase the utilization of managerial reserves

To correct employee placement

To reduce employee dissatisfaction and turnover

To improve motivation & morale.


PROCESSPROCESS

Individual needs and aspirations

Organizational needs and

opportunities

Individual strengths and weaknesses

Placement on career

path

Review of

career plans

Career Planning Process


Benefits of Career Planning to EmployeesBenefits of Career Planning to Employees

In the present context, because of change in the perspective of criteria for measuring success, the role of career planning for employees has expanded.

Career planning benefits employees in following ways:-

• Explicit career path• Focused self-Development• Increased productivity


Career Planning Benefits Career Planning Benefits to Organizationto Organization

From an organization’s point of view, career planning has a long-term orientation for filling various positions from internal sources. When this practice is followed, the organization derives the following benefits from career planning:

• Assured availability of talent• Attracting and retaining talent• Promoting organizational image• Protecting Interests of Special Groups of Employees


SUCCESSION PLANNINGSUCCESSION PLANNINGDefinition: A succession plan is a plan for

identifying who is currently in post and who is available and qualified to take over in the event of retirement, voluntary retirement, dismissal

Three Main Elements.- The purpose of succession planning is to identify and

develop people to replace current job holders in key positions.

- It enables to maintain the steady flow of internal talent to fill important vacancies

- It emphasizes on “hiring from within” and creates a healthy environment, where employees have careers and merely job.


Need for Succession PlanningNeed for Succession Planning

Organizations exist as on-going concerns while personnel come in and go out on regular basis. Therefore, the continued existence of an organization over time requires a succession of personnel to key positions.

So, this basically requires the succession planning:-• Identification of right personnel• Grooming of successors• Boosts the morale of meritorious employees


Measures for effective Succession Measures for effective Succession PlanningPlanning

Since succession planning is essential for every large organization but obstacles generate due to faulty organizational practices, some measures are needed to make succession planning effective.

• Involvement of Supervisory Board• Driven by CEO• Procedural Consistency• External benchmarking• Pool of Successors• Objectivity• Application of emotional intelligence


Executive DevelopmentExecutive Development

It is a systematic process of growth and development by which managers develop their abilities to manage

Role of the organization:

The role of the company in management development is to establish the programme & the development opportunities for its present and potential managers.


Who is a manager and what does he Who is a manager and what does he do?do?

The word manager has been used to mean people at different levels of hierarchy.

All those who perform all or some of the basic functions of management to some degree regularly or occasionally are known as managers.


Knowledge and skills of the manager: Knowledge and skills of the manager: 1} Technical Skills : -

2} Human Skills : -

3} Conceptual Skills : -

These skills need constant up gradation as the process of evolution of executive development programme has gained momentum.


Evolution of Executive Evolution of Executive Development Development

Shift from owner managed to professionally managed enterprises.

Management has been recognized as a distinct kind of occupation consisting of acquired skills and a unified body of knowledge.


Objectives of Executive DevelopmentObjectives of Executive Development

To overhaul the management machinery. To improve the performance of the managers. To give the specializes on overall view of the function of

an organization and equip them to co-ordinate each other’s efforts.

To identify the persons with the required potential and prepare them for positions.

To increase the morale of employees. To increase the versatility of the mgt. Group. To keep the executives updated with the changes in

their fields. To improve thought process and analytical ability. To stimulate creative thinking.


Essential ingredients of the executive Essential ingredients of the executive development programmes. development programmes.

Analysis of organizational present and development needs.

Appraisal of present management talent.

Inventory of management manpower.

Planning of individual development programme.

Establishment of development programme.

Evaluation of the programme.


Techniques of management developmentTechniques of management development

There are mainly two types of techniques by which managers can acquire the knowledge, skills and attitudes and make themselves competent.

Techniques

On – the Job Off – the Job

Coaching The case methodIncident method

Job Rotation Role playingIn basket method

Understudy Business gamesSensitivity training

Multiple Management SimulationGrid training Conferences


On the Job Techniques: -On the Job Techniques: -

Job Rotation

Under study

Multiple management

Coaching


Off – the Job Techniques: -Off – the Job Techniques: - • Incidents method• Role playing• In-basket method• The case study• Business games• Simulation• Managerial grid• Conferences• lectures


ORGANISATIONAL

RENEWALS


ORGANISATION: ORGANISATION:

Can be defined as a group of people combined together for accomplishment of a common goal….

RENEWALS :

Can be defined as a rejuvenating activity…….

Can be defined as an activity of making change in the internal environment commensurating with the external environment…….


NEED FOR ORGANISATIONAL NEED FOR ORGANISATIONAL RENEWALSRENEWALS

Changing economic landscape Customer’s awareness Technological changes


EFFECTS OF “ORGANISATIONAL EFFECTS OF “ORGANISATIONAL RENEWALS”RENEWALS”

POSITIVE EFFECTS Coping up with the changing environment. Adoption of new techniques. Freedom from monotonous jobs. Increase in the efficiency.


REQUISITES FOR THE REQUISITES FOR THE IMPLEMENTATION OF ORG. IMPLEMENTATION OF ORG.

RENEWALS………RENEWALS………

Vision defined by leadership. Managing the risk. Innovation starts with creativity. Organizational integration


IMPROVING BUSINESS BY IMPROVING BUSINESS BY REDESIGNING WORK SYSTEM….REDESIGNING WORK SYSTEM….

Studying the overall system.

Interconnectedness of the sub-systems.

How the system fits into the environment.

“What if “ scenario.

RENEWAL FRAMEWORK….

GET GROUNDED. GET REAL. GET GOING.


Compensation SystemCompensation System

An organization exists to accomplish the specific goals and objectives. The employees hired by the organization helps in the fulfillment of these goals.

These employees have their own needs. Needs can be satisfied by providing money, goods and / or services in return of their services.

The organizations have to use reward system which helps in building a competitive / strategic advantage.


Compensation SystemCompensation System“ Compensation includes direct cash payments,

indirect payments in the form of employee benefits and incentives to motivate employees to strive for

higher levels of productivity.”

Its components:-• Wage and Salary

• Incentives• Fringe benefits

• Perquisites


Compensation Systems Should Compensation Systems Should Include: - Include: -

1) Signal to employees the major objectives of the organizations, such as quality, customer focus etc;

2) Attract and retain the talent, an organization needs;

3) Encourage employees to develop the skills and abilities they need;

4) Motivate employees to perform effectively;

5) Create the type of culture the company seeks to engender.


Compensation Management Compensation Management ProcessProcess

Organization’s Strategy

Compensation Policy

Job Analysis & Evaluation

Analysis of contingent factors

Design and implementation of compensation plan

Evaluation and Review


Progression of compensation:Progression of compensation: Wage: is the remuneration paid, for the service of labor in

production, periodically to an employee/worker? It usually refers to the hourly rate or daily rate paid to such groups as production and maintenance employees.

Salary: refers to the weekly or monthly rates paid to clerical, administrative or professional employees.

Wage levels: represents the money an average worker makes in a geographical area or in his organization.

Wage structure/grade: is used to describe wage/salary relationships within a particular grouping. This grouping can be according to occupation or organization. It mainly comprised of jobs evaluation.

e.g.Rs. 2500-100-3000-E.B-200-5000(E.B. efficiency bar means performance standards)


Components of Compensation Components of Compensation SystemSystem

Indirect

Protection program

Direct

Basic pay Merit pay

Salary wages

Pay for time not worked

Services&perquisites

MedicalInsuranceLife ins.

DisabilityIncomePensionSocial security

VacationsHolidays

Sick leaveJury duty

RecreationalFacilities

CarFinancial Planning

Free meals

Incentive pay Deferred pay

Bonus comm.Piece rate

Profit sharingStock option

Shift differential

Saving planStock purchase

Annuity


Components of the compensation system:Components of the compensation system:• Basic Wage/Salary;• Dearness allowance;• House rent allowance;• City compensatory allowance;• Conveyance allowance;• Leave travel concession;• Education subsidy;• Bonus(profit bonus/ incentive bonus);• Medical;• Provision fund;• Pension;• Overtime;• Fringe benefits;• Social security benefits.


In case of executives, various reimbursements are also made as part of their salaries. These are:

Company leased accommodation; Servant salary reimbursement; Company maintained car; Driver salary reimbursement; Children education; Scholarship to the children; Electricity, water, gas charges reimbursement; Insurance premium; Hospitalization; Office maintenance at residence; Household furniture and appliances; Holiday homes; Interest free loans for house building & many more.


Equity TheoryEquity Theory

Employees want to be treated fairly. Equity is the balance between the inputs an individual brings to a job and the outcomes he / she receives from it.

Employee inputs include:- Experience, education, special skills, effort and time

worked.

Outcomes include:-Pay, benefits, achievement, recognition and any other

rewards.


Designing Equitable Compensation Designing Equitable Compensation Systems:-Systems:-

THERE ARE THREE ELEMENTS OF EQUITY:-

Internal Equity:- Refers to the relation ship among jobs within a single organization.

External Equity:- Refers to comparisons among individuals in the same job within the same organization.

Establishing Internal Equity:- Job evaluation methods.


Job EvaluationJob EvaluationJob evaluation deals with money and work. It determines

the relative worth or money value of jobs.

Wendell l. French defined job evaluation as, “a process of determining the relative worth of the various jobs within the organisation, so that differential wages may be paid to jobs of different worth .

Thus, job evaluation may be defined as a process of determining the relative worth of jobs, ranking and grading them by comparing the duties and responsibilities like skill, knowledge of a job with other jobs with a view to fix compensation.


Objectives of Job - EvaluationObjectives of Job - Evaluation(1) To gather data and information relating to job

description, job specification and employee specifications of various jobs.

(2) To compare the duties, responsibilities and demands of a job with that of other jobs.

(3) To determine the hierarchy and place of various jobs in an organisation.

(4) To determine the ranks or grades of various jobs.

(5) To ensure fair and equitable wages on the basis of relative worth or value of jobs.

(6) To minimise wage discrimination based on sex, age, caste, region, religion etc.


Procedure of Job - EvaluationProcedure of Job - Evaluation

The basic procedure of job evaluation is to compare the job content of one job with those of another job.

INDIAN INSTITUTE OF PERSONNEL MANAGEMENT has evolved the following steps for evaluating job.

1} Analyse and prepare job description

2} Select and prepare a job evaluation plan.

3} Classify jobs

4} Install the programme

5} Maintain the programme.


Essentials for the of job evaluation Essentials for the of job evaluation programmeprogramme

1) Compensable factors should represent all of the major aspects of job content.

Avoid duplication in excess. Be definable & measurable Not excessive cost. 2) Operating managers must be convinced about the

techniques and programmes.3) Complete information has to be provided to the

employees4) All groups and grades of employees must be covered

under this programme5) The techniques selected must be understandable6) Trade union’s acceptance and support must be

obtained.


Job Evaluation Methods / TechniquesJob Evaluation Methods / Techniques

Job Evaluation Methods / Techniques

Quantitative Qualitative

Points Rating Factors Ranking

Method Comparison Method

Method

Job classification

& Grading Method


Non – Quantitative methodNon – Quantitative method

Ranking Method(a) Simple Ranking

(b) Ranking the key jobs

(c) Paired Comparison

(d) Single factor ranking method.


ADVANTAGESADVANTAGES

1] It is a simplest and most cost effective method.

2] This method is appropriate in small organization.

3] It is useful as a first and basic step of job

evaluation.


DISADVANTAGESDISADVANTAGES

1] This provides no yardstick for measuring the relative worth of one job to another.

2] Job requirements, job specifications and employee specifications are not considered in evaluation

3] It does not indicate the extent or degree to which one job is worthy than the other.


JOB CLASSIFICATION AND JOB CLASSIFICATION AND GRADING METHODSGRADING METHODS

Class and grade are used differently in this method.

A GRADE is a group of different jobs of similar difficulty or requiring similar knowledge and skill to perform.

A CLASS is a subdivision of a given occupation.

Under this method, jobs at different levels in the organizational hierarchy are divided into various grades with a clear cut definition of each grade.

Grades are formulated on the basis of nature of tasks, requirements of skill, knowledge, responsibilities and authority of various jobs.


QUANTITATIVE TECHNIQUESQUANTITATIVE TECHNIQUES

POINTS RATING METHOD:-

This is a first method developed on the quantitative basis.

This method is analytical in the sense that the jobs are broken into components for the purpose of comparison.

The factors like skill, knowledge, responsibility, working conditions etc are given numerical values. These totals are calculated and the values for each job is calculated and accordingly compared.


ADVANTAGES : -ADVANTAGES : -

1) Same pay (rates) scale can be arrived at for the same jobs.

2) Definitions are written in applicable terms to the jobs.

3) Points score cannot be manipulated.

4) Wage differentials would be systematic and according to the content of job.


DISADVANTAGES : -DISADVANTAGES : -

1) It is difficult to determine factor levels and assign point values.

2) It is somewhat difficult to explain this method to employees.

3) Operation of this method needs heavy expenditure.


FACTOR COMPARISON METHODFACTOR COMPARISON METHOD

this method is based on both principles of points rating and ranking.

Under this, first the components sub – factors are ranked under various factor (rating) headings.

Then monetary values are assigned to the components or sub – factors.

Thus, each job is ranked a number of times.



1) It is analytical $ quantitative

2) It is a combination of 2 good methods.

3) Modus operandi is really understandable.

4) The technique is reliable and valid compared to other techniques as it consists of 2 aspects

factor rank order

factor comparison



1) It is costly and somewhat difficult to operate compared to the conventional non – quantitative methods.

2) This technique does not consider all the sub – factors as the operation of the system would be difficult if it considers all the factors.


ESTABLISHING EXTERNAL EQUITYESTABLISHING EXTERNAL EQUITY

Employers need to compete for the skills and knowledge they require to operate their businesses ----- in order to attract workers with needed skills and to motivate and retain those already employed.

They use wage and salary surveys to find out what other organizations are paying for particular skills.

Then, in setting pay rates, they seek to integrate the external information with what they have learned through the internal evaluation of jobs.

This process is called pricing the wage structure.


Establishing Pay Establishing Pay RatesRates

The need for equity is the most important factor in determining pay rates.

This is achieved through following steps:-

1. Find out the worth of each job through job evaluation.

2. Conduct a salary survey to find what other employers are paying for comparable jobs.

3. Group similar jobs into pay grades

4. Price each pay grade by using wage curves

5. Fine tune pay rates.


Types of Wage PaymentsTypes of Wage Payments1.1. Time rate system:- Oldest MethodTime rate system:- Oldest Method

Under this system, workers are paid according to the Under this system, workers are paid according to the work done during a certain period of time.work done during a certain period of time.

The essential point is that the production of a worker is The essential point is that the production of a worker is not taken into consideration in fixing the wages.not taken into consideration in fixing the wages.

Advantages:- Advantages:- - Employees maintains the quality of the production.Employees maintains the quality of the production.

- All the workers doing same work gets same All the workers doing same work gets same wages, so no jealousy.wages, so no jealousy.

- Provides stable earnings to the employees.Provides stable earnings to the employees.

Disadvantages:-Disadvantages:-

-- No difference between effective and non-effective No difference between effective and non-effective employeesemployees


2.2. Piece Rate System:-Piece Rate System:-

Under this system, workers are paid according to Under this system, workers are paid according to the amount of work done or the number of units the amount of work done or the number of units completed, the rate of each unit being settled in completed, the rate of each unit being settled in

advance, irrespective of time taken to do the advance, irrespective of time taken to do the task.task.

WE=NRWE=NR

Workers earning = Number * Rate per piece.Workers earning = Number * Rate per piece.

Merits:-Merits:-

1.1. The workers are paid according to their efficiency The workers are paid according to their efficiency as reflected in the amount turned by him.as reflected in the amount turned by him.

2.2. The total unit cost of production remains lower as The total unit cost of production remains lower as the unit production increases.the unit production increases.


3. Balance or Debt 3. Balance or Debt MethodMethod

This is a combination of time and piece rates.

The worker is guaranteed an hourly or a day-rate with an alternative piece rate.

• If the earnings of a worker at piece rate>Amount through time basis =he gets credit for the balance

• If the earnings through piece rate = time basis = question of excess payment do not arises.

• If the earnings of a worker at piece rate<Amount through time basis = he is paid on the basis of time

rate.


Rewards SystemsRewards Systems


Pay for PerformancePay for Performance

An incentive or reward can be anything that attracts an employee’s attention and stimulates him to work.

According to BURACK and SMITH –” An incentive scheme is a plan or programme to motivate individuals or group performance. An incentive programme is most

frequently built on monetary rewards but may also include a variety of non-monetary rewards.”


Classification or types of Classification or types of incentives:-incentives:-

Incentives can be classified into:-

DIRECT COMPENSATION

INDIRECT COMPENSATION

Direct Compensation :- It includes the basic salary or wage that the individual is entitled to for his job,

over-time work and holiday premium, bonuses based on performance.

Indirect Compensation :- It includes protection programmes (insurance plans, pensions), pay for

time not worked, services and perquisites. ---These are maintenance factors.


Determinants of Determinants of incentivesincentives

The individuals

Work situation

-Technology

- Satisfying job assignment

- Feedback

- equity

Incentive plan


Incentive Incentive PaymentsPayments

Incentives are monetary benefits paid to workmen in Incentives are monetary benefits paid to workmen in recognition of their outstanding performance.recognition of their outstanding performance.

ILO refers to incentives as “PAYMENT BY RESULTS”ILO refers to incentives as “PAYMENT BY RESULTS”

- The primary advantage of incentives is the The primary advantage of incentives is the inducement and motivation for higher efficiency and inducement and motivation for higher efficiency and

greater output.greater output.

- Increased earnings would enable the employees to Increased earnings would enable the employees to improve their standard of living and help the improve their standard of living and help the

organization to improve their production capacity.organization to improve their production capacity.


Types of Incentive PlansTypes of Incentive Plans(i)(i) Plans for blue collar workersPlans for blue collar workers

(ii)(ii) Plans for white collar workersPlans for white collar workers

(iii)(iii) Plans for managerial personnelPlans for managerial personnel

Incentive for Blue collar workersIncentive for Blue collar workers

(A) Short-Term(A) Short-Term- Systems under which the rate of extra incentive Systems under which the rate of extra incentive

is in proportion to the extra output.is in proportion to the extra output.

- Systems under which the extra incentive is Systems under which the extra incentive is proportionately at a lower rate than the increase proportionately at a lower rate than the increase

in output.in output.

- Systems under which the rate of incentives is Systems under which the rate of incentives is proportionately higher than the rate of increase proportionately higher than the rate of increase

in output.in output.


Long term incentive plans for Long term incentive plans for blue collar workers.blue collar workers.

Under such plans, each member of group receive a Under such plans, each member of group receive a bonus based on the output of the group as a bonus based on the output of the group as a

whole.whole.

The most important reason for adopting group plan The most important reason for adopting group plan – as the jobs are interrelated.– as the jobs are interrelated.

1.1. One worker’s performance reflects not only his One worker’s performance reflects not only his effort, but also of co-workers.effort, but also of co-workers.

2.2. It encourages co-operation among group It encourages co-operation among group members.members.

3.3. Group production levels tend to be more stable Group production levels tend to be more stable than individual ones.than individual ones.

4.4. Group plans also facilitate on-the job training.Group plans also facilitate on-the job training.


Group incentive plansGroup incentive plans-Profit SharingProfit Sharing

- Scanlon plan ( plan to reduce the cost of - Scanlon plan ( plan to reduce the cost of operation and improving working methods and operation and improving working methods and sharing in the gains of increased productivity.sharing in the gains of increased productivity.


Incentive plans for White Incentive plans for White collar workerscollar workers

75% organization pay this incentive to their sales 75% organization pay this incentive to their sales team.team.

Due to:-Due to:-- The unsupervised nature of most sales work.The unsupervised nature of most sales work.

- Tradition in the marketTradition in the market- The assumptions that incentives are needed to The assumptions that incentives are needed to

motivate salesmen.motivate salesmen.

(a)(a) Straight salary methodStraight salary method

(b)(b) Straight commissionStraight commission

(c)(c) Combination plansCombination plans


In many organizations, the managers are paid In many organizations, the managers are paid BONUS.BONUS.

There are two types of bonus.There are two types of bonus.

1)1) Determined by formula , like as increase Determined by formula , like as increase in salesin sales

2)2) Determined by some discretion used in Determined by some discretion used in the allocation of bonusthe allocation of bonus

For top level management bonuses are For top level management bonuses are generally tied to overall corporate results.generally tied to overall corporate results.

Incentives for managerial personnel


Non-monetary incentivesNon-monetary incentivesWhile monetary incentives often appear as important While monetary incentives often appear as important motivators, many factors unrelated to money can also motivators, many factors unrelated to money can also

serve as “attention-getters” and “encouragers of serve as “attention-getters” and “encouragers of action”.action”.

Examples:-Examples:-

--A person with strong need for affiliation may respond A person with strong need for affiliation may respond readily to job assignments.readily to job assignments.

-The opportunity to communicate with and relate to others -The opportunity to communicate with and relate to others is a factor many workers emphasize.is a factor many workers emphasize.

-An employee with high-level desires for power may -An employee with high-level desires for power may respond easily to opportunity, where he can gain respond easily to opportunity, where he can gain

leadership.leadership.

-Persons interested in enhancing their reputations and -Persons interested in enhancing their reputations and receiving recognition in the eyes of others, respond to receiving recognition in the eyes of others, respond to

verbal praise.verbal praise.


Services & BenefitsServices & Benefits

Besides base compensation and incentives, Besides base compensation and incentives, employees are provided various types of benefits and employees are provided various types of benefits and

services by the organizations.services by the organizations.

These are called by various names such as fringe These are called by various names such as fringe benefits, employee welfare, wage supplements, sub benefits, employee welfare, wage supplements, sub wages, supplementary compensation, social security wages, supplementary compensation, social security

etc.etc.


DefinitionDefinition

“ Fringe benefits are supplements to wages received by workers at a cost to the employers.

The term encompasses a number of benefits-paid vacation, pension, health and insurance plans, etc.—which usually add up to something more

than a fringe and is sometimes applied to a practice that may constitute dubious benefits for

workers.”


Features of Fringe BenefitsFeatures of Fringe Benefits

• Fringe Benefits are provided to employees in addition to Fringe Benefits are provided to employees in addition to their wages and other performance related incentives.their wages and other performance related incentives.

•These are provided to employees not for the performance These are provided to employees not for the performance of any specific jobs but are offered to them as means for of any specific jobs but are offered to them as means for

facilitating the performance of their jobs.facilitating the performance of their jobs.

•These are provided to all employees irrespective of their These are provided to all employees irrespective of their work efficiency.work efficiency.


Types of BenefitsTypes of BenefitsThere are numerous types of benefits which may be There are numerous types of benefits which may be provided to employees, and there are different ways provided to employees, and there are different ways

to classify them.to classify them.

One such classification may be STATUTORY and One such classification may be STATUTORY and VOLUNTARY benefits.VOLUNTARY benefits.

Various benefits provided by an organization may be Various benefits provided by an organization may be classified under two groups:------classified under two groups:------

• Employee welfareEmployee welfare• Social SecuritySocial Security


Major benefits offered in Major benefits offered in INDIAINDIA

• Payments for time not workedPayments for time not worked

- Weekly off-day- Weekly off-day

- Gazzetted holidays- Gazzetted holidays

- Personal leave- Personal leave• Retirement BenefitsRetirement Benefits

- Provident Fund Scheme- Provident Fund Scheme

- Pension Scheme- Pension Scheme

- Gratuity- Gratuity• Compensation BenefitsCompensation Benefits

• Insurance BenefitsInsurance Benefits• Recreation BenefitsRecreation Benefits


ProductivityProductivity


Performance AppraisalPerformance Appraisal

After an employee has been selected for a job, has been trained to do it and has worked on it for a period of time, his performance should be evaluated.

Performance evaluation or appraisal is the process of deciding how employees do their jobs and performance here refers to the degree of accomplishment of the tasks.


Definitions:-Definitions:-

Performance appraisal is the method of evaluating the behaviour of employees in the work spot, normally including both the quantitative and qualitative aspects of job performance. So, performance appraisal is a systematic and objective way of evaluating both work related behaviour and potential of employees.


Features:- Features:-

1} The appraisal is a systematic process.

2} It provides an objective description of an employee’s relevant strengths and weaknesses.

3} It tries to find out how well the employee is performing the job.

4} The appraisal is carried out periodically, according to definite plan.

5} It is not job-evaluation, but refers to how well one is doing the job.

6} It may be formal or informal in nature.


Objectives of performance appraisalObjectives of performance appraisalPerformance appraisal could be taken either for evaluating

the performance of employees or for developing them.Evaluation of employees ie appraisal serves several useful

purposes:- Compensating decisions Promotion decisions Training and development programs. Feedback Personal development


WHAT IS TO BE APPRAISED ?WHAT IS TO BE APPRAISED ?

Every organization has to decide upon the content to be appraised before the programme is approved. Generally, the content to be appraised is determined on the basis of job analysis.

The content to be appraised may be in the form of contribution to organizational objectives like production, savings in terms of cost, return on capital etc.


WHO WILL APPRAISE ?WHO WILL APPRAISE ?

The appraiser may be any person who has thorough knowledge about the job content, contents to be appraised, standards of contents, and who observes the employee white performing a job.

Supervisors

Peers

Subordinates

Self-appraisal

Users of services and consultants.


WHEN TO APPRAISE ?WHEN TO APPRAISE ?

Informal appraisals are conducted whenever the supervisor or personnel managers feel it is necessary. However, systematic appraisals are conducted on a regular basis, say, for ext; every six months or annually.


The Performance Appraisal ProcessThe Performance Appraisal Process

Performance appraisal is planned, developed and implemented through a series of steps.

(a) Establish performance standards.

(b) Communicate the standards.

(c) Measure actual performance

(d) Compare actual performance with standards and discuss the appraisal

(e) Taking corrective action, if necessary.


Methods of Performance Appraisal

Individual Multiple-Person Other

Evaluation evaluation methods

Methods methods

- Confidential report - Ranking - Performance tests

- Essay evaluation - Paired comparison - Field review

- Critical incidents - Forced distribution technique

- Graphic rating scale

- Behaviorally anchored rating scales

- MBO.


Individual Evaluation Methods:Individual Evaluation Methods:

Here Employees are evaluated once at time without comparing them with other employees:

1) Confidential Report

2) Essay evaluation

3) Critical Incident Technique

4) Graphic Rating Scale

5) MBO

6) Behaviorally Anchored Rating Scale


BARS IS CONTRUCTED BY BARS IS CONTRUCTED BY

-Collecting critical incidentsCollecting critical incidents-Identifying performance dimensionsIdentifying performance dimensions

-Reclassification of incidentsReclassification of incidents-Assigning score values to incidentsAssigning score values to incidents

-Producing the final instrumentProducing the final instrument


What is 360What is 360 Assessment ? Assessment ?

It’s a full-circle overview of a person’s performance on the job. Instead of a single evaluation from the boss, a person receives feedback from many workplace source.

The boss still gives input, but peers and direct reports also set involved in the evaluation process. The person participating in a 360 gets to rate his or her performance


Advantages of 360Advantages of 360 feedback system feedback system

Everybody involved in the process benefits:- Participants gets a fairer, well – rounded impression of

how their work is viewed by others.- Bosses get an overall perspective about a persons skills.- Peers and direct reports get an opportunity to share

concerns which helps them to contribute constructive changes.

- Team members can use the information to identify and prioritize team development needs.


Features of 360Features of 360 feedback: feedback: - It is an assessment process used to improve

managerial effectiveness by providing the manager with a more complete assessment.

- The process involves obtaining feedback from the manager’s key contacts,

The manager himself Subordinates Peers Manager Customers suppliers


Features of 360Features of 360 feedback: feedback:- Feedback is normally gathered by means of a

questionnaire, which asks participants to rate the individual according to observed behaviours.

- The 360 process will not suit all the companies. Presenting the results of the appraisal to managers in a constructive way is critical to the success to the process.


360360 Performance Appraisal Performance Appraisal

This is an attempt to the updation of the traditional employee appraisal process & is one of the fashionable techniques of the mid 1990s, fitting in with other news tools called team mgt, employee empowerment and total quality management.

360 - feedback, as the term implies, brings together formal appraisals from everybody that the person being assessed comes into contact with line mangers, subordinates, colleagues, peers, and even outsiders such as clients.

Another name for it is multi – source feedback and a variant is upward feedback, in which subordinates appraise their supervisor’s performance.


How does the checkpoint 360How does the checkpoint 360 system system work ?work ?

1) The standard checkpoint survey has to items and takes approx. 15 minutes to complete it covers competencies in the areas of communications, leadership, adaptability, Relationships, task Management, Production, Development of others.

2) Results from all these surveys are compiled in a confidential feed back report.Graphs and charts relate the data in a detailed, easy – to – understand format.

3) Participants use the information from the feedback report to establish goals and ongoing action plans, aimed at better utilizing their strong points and improving their weaker skills.


Potential AppraisalPotential Appraisal

Evaluating what a person can perform or do is called ‘potential appraisal or evaluation’.

Potential refers to the abilities present but not currently utilized. It is a latent capacity in a person to discharge a responsibility.

“people are like icebergs. What you see above the surface is only a small part. A large part of the attributes needed to perform excellently in future job, which I call potential is not immediately visible. It is hidden below surface”.


Potential AppraisalPotential Appraisal

It is characterized by following attributes:

1) Ability to foresee future opportunities

2) Consistency in approach and performance

3) Responsive to condition whatever comes in the way.

4) Person with hight level of integrity.

5) Broader vision and micro perception.


Why Potential Appraisal ?Why Potential Appraisal ?

1) To promote an employee to higher levels of jobs involving higher order or responsibility, which the employee can effectively discharge without being over burden and stretched.

2) Assist the organization to allocate jobs among employees as per their capabilities so that organizational responsibilities are discharged effectively.


Evaluation of Employee Potential:Evaluation of Employee Potential:

1) Determination of role dimension

2) Determination of mechanism

3) Linking potential with other elements.


INDUSTRIAL RELATIONSINDUSTRIAL RELATIONS

• According to Armstrong- “Industrial relation is concerned with the system and

procedures used by unions and employers to determine the reward for effort and other conditions of employment, to protect the interest of the employed and their employers, and to regulate the ways in which employers treat their employees.”

• According to Industrial Labour Organization (ILO)- “Industrial relation deal with either the relationship between

the state and employers and workers organization or the relation between the occupational organizational themselves.”


Features of Industrial RelationsFeatures of Industrial Relations

• Relation between employees and employer• The outcome of the practice of human resource HRM

and employment relations• Accommodating other party’ interest, values and needs• Governed by the system of rules and regulations• To maintain harmonious relation between employees

and employer• Trade union is another important institution in the

industrial relation• Develop the skills and methods of adjusting


Objectives of Industrial RelationsObjectives of Industrial Relations

• To promote and develop congenial labour management relations

• To enhance the economic status of the worker by improving wages, benefits and by helping in evolving sound budget

• To regulate the production by minimizing industrial conflicts through state control


PARTICIPANTS IN IRPARTICIPANTS IN IR

• Workers & their organizations

• Managers and their organizations

• Role of government


ASPECTS OF IRASPECTS OF IR

DEVELOPMENT OF HEALTHY LABOUR MANAGEMENT RELATIONS

• Existence of responsible trade unions

• Collective bargaining,plant discipline & satisfactory trade union

• Government


ASPECTS OF IRASPECTS OF IR

MAINTENANCE OF INDUSTRIAL PEACE • Legislative enactments & administrative action, labour

courts.• Implementation & evaluation Committees

INDUSTRIAL DEMOCRACY• Joint management councils• Recognition of human rights “Labour is no longer an

article or a commodity of commerce”• Suitable environment to adapt.


STRATEGIES OF IRSTRATEGIES OF IR

INTERNALSTRATEG IES

EXTERNALSTRATEG IES

INDUSTRIAL RELATIO NSSTRATEG IES


INTERNAL STRATEGIESINTERNAL STRATEGIES

• The attitudes of management to employees & unions

• The attitudes of employees to management• The attitudes of employees to unions• The prosperity of company, degree to which it

expands ,stagnates or run down • Extent to which technological changes are likely

to affect employment conditions & opportunities


EXTERNAL STRATEGIESEXTERNAL STRATEGIES

• The effectiveness of unions & its officials and extent to which officials can control the activities of supervisors within the company.

• The extent to which bargaining is carried out at national or local plant level.

• .the legal framework within which industrial relations exists.


SCOPE OF IR WORKSCOPE OF IR WORK

• Administration,including overall organization,supervision and co-ordination.

• Liaison with outside groups and personnel departments as well as with various cadres of the management staff.

• The drafting of regulations,rules,laws or orders,and their construction and interpretation.

• Employee counseling on all types of personnel problems-educational , vocational, health, or behavior problems.

• Suggestions plans and their uses in labour , management and production committees.


FUNCTIONAL REQUIREMENTS OF A FUNCTIONAL REQUIREMENTS OF A SUCCESSFUL IR PROGRAMMESUCCESSFUL IR PROGRAMME

• Top management support• Sound personnel policies• Adequate practices should be developed by

professionals• Detailed supervisory training• Follow-up of results


OUTPLACEMENTOUTPLACEMENT

Professional coaching, practical guidance and essential facilities to help people move to the next stage in their careers, either within their current organizations or elsewhere.


Outplacement assistanceOutplacement assistance

Efforts made by the employer to help a recently

separated worker to find a job. Assistance- -paid leave, -travel charges, -search firm charges to the retrenched

employees


Services & Training Provided in Services & Training Provided in OutplacementOutplacement

• Writing better resumes

• Preparing for the interviews

• Mock interviews

• Telling about networks & networkings


Services & Training Provided in Services & Training Provided in Outplacement…Outplacement…

• How to start their own private enterprise and how to approach venture capitalists.

• A place to continue to operate in with a cubicle, a computer with Internet connection.



• It shows the human face of the company.

• Eases the pain of retrenchment.

• Preserves the morale of remaining employees.

• Smoothens the way for further downsizing moves

• Helps to retain former employee’s respect.



• Time consuming

• Expensive

• Complex task

• Less acceptability

• Limited coverage

• Difficulty in implementation


OUTSOURCING


OUTSOURCINGOUTSOURCING

• Outsourcing is subcontracting a process, such as product design or manufacturing, to a third-party company .

• The client organization and the supplier enter into a contractual agreement that defines the transferred services.


Human Resource OutsourcingHuman Resource Outsourcing

Human Resource Outsourcing- is a process in

which a company uses the services of a third party to take care of its HR functions. A company may outsource a few or all of its HR related activities to a single or combination of service providers located in offshore destinations like India, China, Philippines, etc.


Why do you need HRO?Why do you need HRO?

• Are you comfortable letting someone else handle your HR functions?

• Do you have dedicated HR representatives or adequate resources to manage your HR needs?

• Can your business afford an HR outsourcing firm?


Basic services offered by HROBasic services offered by HRO

• Overseeing organizational structure and staffing requirements

• Recruiting, training and development

• Tracking departmental objectives, goals and strategies

• Employee and manager training

• Benefits administration

• Employee orientation programs


Basic services offered by HRO…Basic services offered by HRO…

• Providing you with skilled professionals who are focused specifically on HR

• Helping you reduce and manage operating costs

• Improving employee relations If you need to hand off the entire HR function, consider a professional employer organization


Reasons for outsourcingReasons for outsourcing

• Cost Saving• Cost Restructuring• Quality Improvement• Knowledge• Contract• Operational Expertise• Staffing Issues• Capacity management


Reasons for outsourcing…Reasons for outsourcing…

• Catalyst for Change

• Reduce Time to Market

• Commodification

• Risk management

• Time zone

• Customer pressure


Process of OutsourcingProcess of Outsourcing1.Deciding to outsource2.Supplier proposals3.Supplier competition4.Negotiations5.Contract finalization6.Transition7.Transformation8.On going service delivery9.Termination or renewal


Criticisms of outsourcingCriticisms of outsourcing • Public opinion• Against shareholder views• Language skills• Social responsibility• Quality of service• Staff turnover• Company knowledge• Qualifications of outsourcer• Productivity


Issues of Concern for HR ManagerIssues of Concern for HR Manager

• Instability or military tension

• Cultural misunderstanding

• Security & privacy concerns

• Legal regulations.

• Special training requirements.

• Dealing with anxiety of employees abroad.


INTERNATIONAL HRMINTERNATIONAL HRM

• An international business must procure,retain and effectively utilize services of people both at the corporate office and at the foreign office.

• The process of procuring,allocation,and effectively utilizing human resources in an international business is called international human resources mgmt.


Host

Home

OtherUtilizeAllocateProcure

Host-Country Nationals (HCNs)

Parent-Country Nationals (PCNs)

Third-Country Nationals (TCNs)

Countries

Types of Employee

Model of IHRM

Human Resource Activities


Basic steps in IHRMBasic steps in IHRM

HRP

RECRIUTMENT AND SELECTION

TRANING AND DEVELOPMENT

PERFORMANCE MANAGEMENT

REMUNERATION

REPATRIATION

EMLOYEE RELATIONS


ETHNOCENTRIC APPROACHETHNOCENTRIC APPROACH

• In this approach, all key mgmt. Positions are held by parent country nationals

• This strategy may be appropriate during the early phases of international business, because firms at that stage are concerned with transplanting a part of the business that has worked well in their home country.


POLYCENTIRC APPROACHPOLYCENTIRC APPROACH

• The polycentric staffing requires host country nationals to be hired to manage subsidiaries ,while parent-country national occupy key positions in corporate headquarters


GEOCENTRIC APPROACHGEOCENTRIC APPROACH

• The staffing philosophy seeks the best people for key jobs throughout the organization, regardless of nationality


The advantages and disadvantages of using PCNs,TCNs and HCNsThe advantages and disadvantages of using PCNs,TCNs and HCNs

Advantages*Familiarity with home

office,goals objectives*Promising managers are

given international exposure

*Easy organizational control and coordination

Disadvantages

*Difficulty in adapting to the foreign lang.culture etc

*Excessive cost of selection, training etc


HCNsHCNs

Advantages• Familiarity• Lower cost incurred in

hiring,training etc• Language and other

barriers are removed

Disadvantages• HCNs have limited

career opportunity outside the subsidiary

• Communication problem with home office personnel


TCNs TCNs

Advantages• TCNs are truly

international managers

• Salary and benefit requirement may be lower than for PCNs

Disadvantages• Host country govt.

may resent hiring TCNs

• Host country’s sensitivity with respect to nationals of specific countries


The expatriate problem

A person living in a country that is not their own

Selection decision

-Technical ability

Family requirements

languageMNC

requirements

Cross-Cultural

suitability

Factors in expatriate selection


Determining the need for an Expatriate

The

Selection

Process

Pre-assignment

Training

Departure

Post-arrival

Orientation and

Training

Crisis and

Adjustment

Crisis and

Failure

Repatriation

And

Adjustment

Reassignment

Abroad

The Expatriate Assignment Life Cycle


Training and developmentTraining and development

• Cultural training

• Language training

• Practical training

• Management development and strategy

• Performance management


THE REPATRIATION THE REPATRIATION PROCESSPROCESS

• PREPARATION

• PHYSICAL RELOCATION

• TRANSITION

• READJUSTMENT


Employee LeasingEmployee LeasingAn employee leasing company is a business, which by agreement and An employee leasing company is a business, which by agreement and for a fee, places employees of a client company on the leasing for a fee, places employees of a client company on the leasing company's payroll. In turn, the leasing company "leases" these company's payroll. In turn, the leasing company "leases" these employees back to their original employer, usually for an unlimited employees back to their original employer, usually for an unlimited period of time. period of time.

Through a co-employment relationship with the business and Through a co-employment relationship with the business and employees, Employee Leasing Organizations will help to reduce your employees, Employee Leasing Organizations will help to reduce your administrative burdens like payroll, payroll taxes and personnel administrative burdens like payroll, payroll taxes and personnel record-keeping. Employee Leasing Organizations can also provide record-keeping. Employee Leasing Organizations can also provide expert guidance in the areas of human resources, compliance, and expert guidance in the areas of human resources, compliance, and safety as well as minimize employee turnover with enhanced safety as well as minimize employee turnover with enhanced employee benefits. In many cases employer liability can be employee benefits. In many cases employer liability can be significantly reduced significantly reduced


PEO Employee Leasing - Discover How to Totally Eliminate PEO Employee Leasing - Discover How to Totally Eliminate

Your Workers Compensation LiabilitiesYour Workers Compensation Liabilities

• No More Workers Comp Audits

• Zero Workers Comp Claims

• HR Headaches Eliminated

• Retention Increase 90%

• Affordable Employee Benefits


Benefits of ELBenefits of EL• Employee leasing companies provide a number of valuable

services to their clients. Typically, an employee leasing company will provide payroll services and assist companies in managing their human resources by providing employee manuals and other services, which are sometimes difficult for smaller companies to provide on their own

• . Better management of workplace safety can help control the cost of worker compensation. Improved hiring practices and experienced representation in unemployment insurance benefit and tax matters can help keep the cost of unemployment compensation down

• In some cases, client employers, which could not afford to provide certain benefits such as health insurance, find it affordable to do so when taking advantage of the buying power of an employee leasing company.


• Employee Leasing Organizations are growing at a rate of over 30% per year. Outsourcing non-productive employee administration responsibilities have become more and more popular. Employee Leasing has taken many forms, PEO's Professional Employer Organizations, ASO's Administrative Service Organizations, Administrative Employers and more.


HUMAN RESOURCE HUMAN RESOURCE AUDITAUDIT

HRA AND RESEARCH ARE IMPORTANT HRA AND RESEARCH ARE IMPORTANT PARTS OF THE HUMAN RESOURCE PARTS OF THE HUMAN RESOURCE MANAGEMENT PROCESS.ALL THE MANAGEMENT PROCESS.ALL THE PERSONNEL POLICIES,PRACTICES AND PERSONNEL POLICIES,PRACTICES AND PROGRAMMES MUST BE APPRAISED PROGRAMMES MUST BE APPRAISED CRITICALLY IN ORDER TO KNOW THEIR CRITICALLY IN ORDER TO KNOW THEIR EFFECTIVENESS.EFFECTIVENESS.


PURPOSE OF PERSONNEL PURPOSE OF PERSONNEL RECORDSRECORDS

• ENABLING MANAGERS TO TAKE PERSONNEL DECISION.

• SUPPLYING INFORMATION REQUIRED BY GOVERNMENT AGECIES ON VARIOUS MATTERS.

• MAINTENANCE OF UPTO DATE INFORMATION OF EMPLOYEES.

• CONDUCTING RESEARCH IN THE FIELD OF INDUSTIAL RELATION.

• PROVIDING DATA TO FACILITATE HUMAN RESOURCE AUDIT.


ESSENTIALS OF RECORDESSENTIALS OF RECORD

• SIMPLICITY.

• ACCUARCY.

• ECONOMY.

• USEFULNESS.


TYPESTYPES

• INDIVIDUAL SERVICE RECORDS.

• PERFOMANCE RECORDS.

• LEAVE RECORDS.

• TRAINING RECORD.

• HEALTH AND SAFTY RECORDS.


PRINCIPLES OF RECORDPRINCIPLES OF RECORD

• PURPOSE FOR WHICH THE RECORD IS KEPT MUST BE JUSTIFIABLE.

• RECORDS MUST BE CAPABLE OF VERIFICATION.• RECORDS MUST BE CLASSIFIED.• THE REQUISITE INFORMATION MUST BE AVILABLE

WHEN NEEDED.• RECORDS MUST BE PRODUCED AND MAINTAINED

AT A REASONABLE COST.• RECORDS MUST BE PRECISE.• THE SYSTEM OF RECORD KEEPING MUST BE

ELASTIC.


RECRUITMENT AND RECRUITMENT AND SELECTION AUDITSELECTION AUDIT

• Recruitment and selection policy:• Determine recruitment and selection

policy.• Policy formulation.• Communication of policy.• Consistency of policy.

• Recruitment & selection practices.• Programmes.


HR IN KNOWLEDGE HR IN KNOWLEDGE ERAERA


WHAT IS KNOWLEDGE ???WHAT IS KNOWLEDGE ???

• KNOWLEDGE IS THE CAPACITY TO ACT

• IT IS ABOUT ISSUES AND CONTEXT


TYPES OF KNOWLEDGETYPES OF KNOWLEDGE

• TACIT KNOWLEDGE

PERSONAL KNOWLEDGE GAINED THROUGH EXPERIENCE AND IS SHARED THROUGH DIRECT AND FACE TO FACE CONTACT


EXPLICIT KNOWLEDGEEXPLICIT KNOWLEDGE

• IS A FORMAL KNOWLEDGE THAT CAN BE PACKAGED AS INFORMATION

• FOUND IN THE DOCUMENTS OF ORGANISATION – REPORTS , ARTICLES AND MANUALS.

Prepared by Ms. Ritu AroraPrepared by Ms. Ritu Arora

244244

KNOWLEDGE MANAGEMENTKNOWLEDGE MANAGEMENT

• IS A SYSTEMATIC , EXPLICIT AND DELIBERATE BUILDING , RENEWAL,AND APPLICATION TO MAXIMISE ORGANISATION’S KNOWLEDGE RELATED EFFECTIVENESS AND RETURN FROM KNOWLEDGE ASSETS

A PROCESS WHEREBY DATABASE IS MAINTAINED TO ENSURE THAT RIGHT INFORMATION REACHES TO THE RIGHT PERSON AT RIGHT TIME.


WHY WE NEED ITWHY WE NEED IT

• INDUSTRIAL ECONOMY TO DECENTRALIZED GLOBALIZED ECONOMY.

• INFORMATION DRIVEN ECONOMY• KNOWLEDGE OF LOCAL AREA• CROSS CULTURAL DIMENSIONS• SHIFTING FOCUS FROM CONSUMPTION OF

MATERIAL THINGS TO THE CONSUMPTION OF INFORMATION.


FOUR COMPONENTS OF KMFOUR COMPONENTS OF KM

• DEVELOPING NEW KNOWLEDGE

• SECURING NEW AND EXISTING INFORMATION

• DISTRIBUTING KNOWLEDGE

• COMBINING AVAILABLE INFORMATION


THE WORK OF FOLLOWING IS THE WORK OF FOLLOWING IS TOTALLY TOTALLY KNOWLEDGE BASEDKNOWLEDGE BASED

• CUSTOMER SERVICE

• INFORMATION SYSTEM

• FINANCE

• HR/ ADMINISTRATION

• MANAGEMENT


PROCESS OF KNOWLEDGE PROCESS OF KNOWLEDGE MANAGEMENTMANAGEMENT


COLLECT

SHARE AND APPLYCREATE AND SELL

IDENTIFY

STORE

SELECT


CHALLENGES OF KMCHALLENGES OF KM

BOUNDED RATIONA

LITY

TUNNELVISION

RULES&NORMS

PAST EXPER.

KM



• INCREASE IN PRODUCTIVITY

• IMPROVES QUALITY

• LEADS TO BETTER COORDINATION

• IMPROVES WORK ENVT

• CREATIVE THINKING


CONCLUSION

• NECESSARY TO MAKE ORGANIZATIONS INNOVATIVE AND COMPETITIVE

• ROLE OF HR MANAGER TO TAKE UP THIS CHALLENGE AND TO CREATE AND MANAGE KNOWLEDGE


VIRTUAL ORGANISATIONSVIRTUAL ORGANISATIONS

• IT IS A SOCIAL NETWORK IN WHICH ALL HORIZONTAL AND VERTICAL BOUNDARIES ARE REMOVED.

• INDIVIDUALS WORKING AT DIFFERENT WORKSPACES

• CREATION OF NETWORK RELATIONSHIP THAT ALLOWS FOR CONTRACTING , MANUFACTURING , DISTRTIBUTION, MARKETING, OR ANY OTHER BUSINESS FUNCTION


CHARACTERSTICSCHARACTERSTICS

• POWER FLEXIBILITY• INFORMAL COMMUNICATION• FLAT ORGANISATION• GOAL ORIENTATIONS• DYNAMICS• HOME WORK• NO ORG. BOUNDARIES• CUSTOMER ORIENTATION


FEAURES OF VIRTUAL FEAURES OF VIRTUAL ORGANISATIONSORGANISATIONS

• TECHNOLOGY

• E-MAIL INTEGRATION (EXPRESS WAY)

• OFFICE SYSTEMS INTEGRATION

• VOICE MAIL ALERT

• MOBILE DATA



• SAVES TIME, MONEY ELIMINATES LACK OF ACCESS TO EXPERTS

• PROXIMITY NOT REQUIRED FOR ORGANISATION

• EXPANSION• BALANCE PERSONAL AND

PROFESSIONAL LIFE


HR ISSUES IN VIRTUAL HR ISSUES IN VIRTUAL ORGANISATIONSORGANISATIONS

• CAREER DYNAMICS

1. RECRUITMENT IS CONDUCTED UNDER HIGH PRESSURES

2. HIGH PERFORMANCE IS EXPECTED3. NETWORKING AND SKILLS BECOME CRITICAL4. STABILITY IN RELATIONS IS NOT REQUIRED5. NEED OF MOBILITY IS HIGH6. HEAVY INVESTMENT


PERFORMANCE MANAGEMENTPERFORMANCE MANAGEMENT

• DEFINE PERFORMANCE

• FACILITATE PERFORMANCE

• ENCOURAGE PERFORMANCE

• COMMUNICATION

• SELECTION PROCESS


HR IN MERGER AND HR IN MERGER AND ACQUISITIONSACQUISITIONS

• MERGER --- TWO COMPANIES COME TOGETHER TO CREATE A NEW IDENTITY

• ACQUISITION-- ONE COMPANY BUYS OTHER AND APPLIES ITS OWN RULES AND REGULATIONS


WHY M &A FAILWHY M &A FAIL

• EXPECTATIONS ARE UNREALISTIC• TALENT IS LOST OR MISMANAGED• REQUIRES AN IMPOSSIBLE DEGREE OF

SYNERGY• CULTURAL DIFFERENCES• UNDER ESTIMATION OF COST• ILL CONCEIVED HR INTEGRATION

STRATEGIES


PRE UNION

IN PROCESSUNION

POST UNION

Stages in M & AStages in M & A


KEY TO SUCCESS KEY TO SUCCESS

• WELL THOUGHT GOALS • KEY TALENT RETAINED• PLANNING AND TIMELY ACCOMPLISH• DUE DILLIGENCE ON ISSUES• WELL MANAGED TEAM• EFFECTIVE LEADERSHIP


SKILLS AND COMPETENCIESSKILLS AND COMPETENCIES

• STRATEGIC KNOWLEDGE• EFFECTIVE COMMUNICATION• MOTVATING SKILLS• ANALYTICAL SKILLS• GOOD TRAINOR AND FACILITATOR• GOOD MEDIATOR• GOOD LEADER


CONCLUSIONCONCLUSION

• HR DEPARTMENT SHOULD PLAY PRO-ACTIVE ROLE TO ANCHOR THE WHOLE PROCESS AND TO MINIMISE THE REASONS OF FAILURE

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