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Human Resource ManagementWhat is human resource..?

According to Lean C. Megginson the human resource can be thought of as, the total knowledge, skills, creative abilities, talents and aptitudes of an organization and also value, beliefs of the dividuals involved.What is management..?

According to “Mary Parker” Follett defined that it is an art of getting things done through people.

Management is defined in which managers plan organize, staff, direct and control human, physical and financial resources in an organized effort in order to achieve desired objectives.Human Resource Management:

It means employing people, developing their resources, utilizing, maintaining and compensation their services in the job & organizational requirements.

Unit: 6 Performance ManagementMeaning:

Performance appraisal is a method of evaluating the behavior of employees in the work spot, normally including both the quantitative and qualitative aspects of job performance. Performance refers the degree of accomplishment of the tasks that make up an individual’s job. Performance is always measure in terms of results but not efforts.

It is a systematic description of an employee’s strengths & weaknesses in job.Plan of improvement.Appraisals are arranged periodically.It is not job evaluation. It refers how well someone is doing the assigned job.It is a continuous process.

NEED FOR PERFORMANCE MANAGEMENT:Depending on appraisal, they will fix salary, promotion

transfers, demotion.etc..,For rectifying performance deficiencies.To counsel the subordinates.To prevent grievances & in disciplinary activities.

PURPOSES OF PERFORMANCE MANAGEMENT:It is of two types…

A. Administrative purposes. Document human resource decisions with regarded to performance and its related issues.Determine promotion of employees. Determine transfers and change in job assignments.Identify poor performance areas of employees.Decide termination.Evaluate the performance of training programmer.Plan for changes in human resource requirements.Decide on salary and reward issues.

B. Developmental purposes.

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Provide performance feedback to all concerned.Identified individual skills, core competencies, strengths and weaknesses.Recognize individual performance levels.Assist the employees in setting goals.Evaluate goal achieving of employees.Identify individual training need.Determine organizational training needs.Reinforce authority structure.Allow employees to discuss.Improve communication.Provide a forum for leads to help the subordinates.

Performance appraisal methods:With the evolution and development of appraisal system, a

number of methods (or) techniques of performance appraisal have been developed.

A) Trait method: It measures the extent to which employees possess characteristics

(or) traits dependability, creativity, initiative, dynamism, ability to motivate and leadership. Trait methods are designed based on job description and job specification.

1) Graphic rating scales: Graphing rating sales compare individual performance to an absolute standard. In the method, judgments about performance are recorded on a scale.

In this method, the appraisals are supplied with printed forms, one for each employee. These forms contain a number of objectives, behavior and trait-based qualities to be rated like quality and volume of work, job knowledge, initiative, attitude etc. 2 types of rating i.e., continuous order like (0, 1,2,3,4 and 5) and discontinuous scale the appraise assigns the points given by the rater.

Merits:1. Simplicity, which permits many employees to be quickly

evaluated.2. Low design cost and easy administration.

Drawback:1. Subjectivity and low reliability.2. Descriptive words give different meaning to different raters.

Ranking methods:Under this method the employees are ranked from best to worst

on some characteristics. The rater first finds the employee with the highest performance and the employees with the lowest performance in that particulars job category and rates the former as the best and later as the poorest.

Consider all of your 20 employees, divide into two columns. In column I, put who will getted the best total performance. In column II write who will getted the worst total performance, like this continue the cycle.Merits:

Relatively easy and inexpensive.Drawback:

Its validity is open to doubt Somebody is always in backbench Difference between individuals is not defined

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Paired comparison method:In this method, the appraiser ranks the employees by comparing

one employee with all other employees in the group one at a time.Formulae: number of positive evaluation X 100

Total number of evaluations= employees % superior evaluation

For eg:- 4/9*100=100% ; 2/4*100 = 50% ; 0/4*100=0%Merits: it is fairly easy in case of less no for employees.Demerits: time consuming if more employees are theirForced distribution method:

Under this method, the rater after assigning the points to the performance of each employee has to distribute his rates in a normal frequency distribution. This method gives the rates in the form of excellence, average and poor performance.

10% 20% 40% 20% 10%

Excellent good average below unsatisfactory

Average5. Checklist method:

In this method the supervisor is given a list of statements (or) words and asked to check statements represents the characteristics and performance of each employee.

There are three types of check list methods.Simple checklist, weighted checklist and forced choice method.The rater checks if the employee behavior is positive or negative.

Employee performance is rated on the basics of positive checks, negative checks are not considered.6. Confidential reports:

In this method, superior appraises the performance of this subordinates based on his observations, judgments. The superior keeps his judgment and reports confidentially. He gives rating based on the subordinates strength, weaknesses, intelligence, attitude to work, sincerity. Commitment, punctuality, attendance, character, friendliness etc. in this employee are not allowed to know their performance.BEHAVIOURAL METHODS:1. BEHAVERIAL CHECKLIST METHOD:

A checklist is designed with the list of statements that describe the behavior essential for employee performance. The appraiser checks whether the appraise possesses them or not. Employee performance is rated based on the behavioral skills that the employees possess.2. CRTICAL INCIDENT METHOD:

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Under this method, the supervisor continuously records the critical incidents of the employee performance or behavior relating to characteristics (both positive and negative) in a specially designed note book.

Eg: Targets Critical Incidents rs 10 lakh in 2008 rs 12 lakh 3 lakh from business 7 lakh 4 lakh 5 lakh

Advantage: The rater considers the records of performance rather than the subject matter for eg: emotional balance, relationship between superior and subordinates.Disadvantage: Time requiring to write complete profiles.3. BEHAVIOURALLY ANCHORED RATING SCALES [BARS]:

BARS method combines elements of the traditional rating scales and critical incidents method using BARS, job behaviors from critical incidents- effective and ineffective behaviors are described more objectively.How to construct BARS..?

Five steps are there..Step-1: collect critical incidents: - People with knowledge of the job to be probed, such as job holders and supervisors, describe specific examples of effective and ineffective behavior related to job performance.Step-2: Indentify performance dimensions:-

Here indentifying a small set of performance dimensions examples of performance dimensions include technical complete, relationships with customer handling or paper work, and meeting day-to-day deadlines, points are noted n scale in terms of good, average or below average performance.

Step-3: Reclassification of incidents:-Another group of participations who are knowledgeable about the

job is instructed to retranslate or reclassify the critical incidents generated (in step- II) previously. They are assign critical incident to the dimension.Step-4: Assigning scale values to the incidents:

Each incident is then rated on a one to nine scale with respect to how were it represents performance on the appropriate dimension. A rating one represents ineffective performance the top scale value incidents effective performance.Step-5: Producing the final instrument:

About six or seven incidents for each performance dimension-all having met both the retranslation and started deviation criteria-will be used as behavioral anchors. The final SARS instrument consists of a series of vertical scales one for each dimension by the final incidents according to mean value. 4. Assessment centre :

In this approach individuals or three days. Working on an individual or group assignment sililar to the ones they would be handling when participant in order of merit.Results method:Advantages: less subjectively Less open to bias Assign clear responsibility to employees Empowering the employees

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Problems: It encourage short –term rather than long-term It ignores important factors, which can’t be measured exactly like

quality of customer satisfaction, employee satisfaction etc.1. Human resource accounting :

Cost of employee include cost of manpower planning, recruitment, selection, placement, training, development, wages & benefits etc. employee performance can be measured in terms of employee contribution to the organization.2. Management by objectives:

The superior and subordinate jointly determine goals to be accomplished during the appraisal period and also they identify the reasons for deviation like strike/ lockouts, market change etc.

New goals and performance objectives are determined by the superior and employee for the next period based on performance levels.

Methods of performance appraisal

Trait methods behavioral methodsResults method

1. Graphic rating scales 1. Behavioral checklist methods1. Productivity measures

2. Ranking methods 2. Critical incident 2. Human resource

3. Paired comparison 3. BARSaccounting

4. Forced distribution 4. Assessment centre. 3. MBO

5. Checklist methods 5. Psychological appraisala. Simple methodsb. Weighted checklistc. Force choice

6. Essay form7. Group appraisal8. Confidential reports.

PERFORMANCE MANAGEMENTThe use of 360 degree feedback has grown dramatically in recent years according to HR consulting film William H. Mercer, 40 percent of the companies used 360 degree feedback in 1995, by 2000, this figure jumped to 65 percent.

The premise behind 360 degree feedback is logical:

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The people who work most closely with an employee see that persons behavior in settings and circumstances that a supervisor may not and, in theory, the more complete insight into on employee’s performance, the more likely he or she will understand what needs to be improved and how.

The theory is very promising. The reality, on the another hand, is another matter.

One report revealed that companies using 360 degree feedback have lower market value. According to the study companies that use this 360 degree have market value is 4.9% lower than similarity situated companies that don’t use 360 degree likewise, companies that allow employees to evaluate their managers are valued 5.7 percent lower than similar firms that don’t.VOICES OF DOUGHT:

One study is not only indicator that 360 degree feedback programmers may be failing to match their promise researchers and formerly strong advocates of 360 degree feedback have begin to raise questions jai ghorpaede, a professor of management at son diago state university, wrote in the academy of management executive that, “while it delivers valuable feedback, the 360 degree concept has serious problems relating to privacy, validity and effectiveness.

Ghorpade also reported that out of more than 600 feedback studies one third found improvements in performance one third reported decreases in performance and the rest reported no impact at all.

John Sullivan, professor of human resource management at san Francisco state university, says “there is no data showing that [360 degree feedback] actually improves productivity, increases retention, degrees grievances or is superior to forced ranking and standard performance appraisal systems. It sounds good, but there is no profit it works.ROOTS OF THE PROBLEM:

Why is 360 degree feedback failing to live up to its potential? For starters, giving effective appraisals is a difficult task. Unless every one participating in a 360-degree program is trained on the art of giving and receiving feedback, the process can lead to uncertainty and conflict among team members.

Another issue is that there may be gap between an organizations business objectives and what 360 degree feedback program measures typical 360 feedback program assesses competencies that are not directly related to business results.

The time and cost associated with 360-degree feedback also is stumbling blocks. By trying to capture every workers performance, many 360-degree feedback programs have become too complex that they require a much greater investment in time and money that they can return.

Another common problem: reviewers and those being reviewed fail follow up after feedback. When there are no consequences for poor performance- which often is the case with 360-degree reviews performance won’t change.WHO WILL APPRAISE:

360 DEGREE PERFORMANCE APPRAISALS:

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The appraiser may be any person who has through knowledge about the job content, contents to be appraised and observers the employee while performing a job.

The appraiser should be capable of determining what is more important and what is relatively less important. He should prepare reports and make judgments without bias.Typical Appraisers Are: Supervisor, peers

Subordinates, employee themselves users of service and consultants performance appraisal by all these parties is called 360 degree performance appraisal.Supervisor: The superiors who have knowledge about the work of the employee and department head. The immediate supervisors are responsible for managing their subordinates and they have the opportunity to observe, direct, control the subordinate continuously other supervisors also sometimes apprise on the negative side. The supervisors may avoid some aspects of employee performance.Peers : Peer appraisal may be reliable if the workgroup is stable over a reasonably long period of time and performs tasks that require interaction. However, little research standards been conducted to determine how peers establish standards for evaluating others or the overall effect of peer appraisal on the group attitude.Subordinates: A supervisor rated by subordinates is being used in most organizations today, especially in developed countries. Subordinates ratings is used for identifying competent supervisors. However, the fear of appraisal often compels a subordinate to be dishonest in his ratings. Self appraisal: If individuals understand the objectives they are expected to achieve and the standards by which they are to be evaluated. Employee development means self development; employees who appraise their own performance may become highly motivated.Consultants: Sometimes consultant may appraise the employees or employers when the supervisor and manager does not trust the self, peer, subordinate appraisal consultants may observe the employee at work for a long time period.Users of services, customers: Employee performance in service organizations relating to behaviors, speed in doing the job and accuracy, can be better judged by the customers.For e.g.: Teachers performance is better judged by students.When to appraise: Informal appraisal are conducted, whenever the supervisor or management feels it necessary. However systematic appraisals are conducted on a regular basis like every six months annually.Performance management and pay performance management for teams:A team leader is entitled for three types of incentives as shown below

A. Productivity/quality incentive : the incentive is based on the total work done by the team during the Month and also depends on error rates.

B. Turnaround time (TAT) incentive : it is decided by concerned authorities in production from time to time.

C. Lines direct to Clint incentive : the maximum incentive per month is limited to rs18000 (for a team of 18 or less number of members for team exceeding 18 members then they will calculate.

Team Bonus:

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Along with the team leader, team is also entitled to bonus calculated as fallows.

A. Bonus of rs2000 if the team achieves 25 or less than 25 errors for 1000 in month.

B. Bonus of rs4000 if the team achieves 20 or less than 20 errors per 1000 in the month.

Besides wages and salaries, employees are paid incentives depending upon their performance. Incentive payments are quite substantial and are paid as regularly as wages and salaries. They are universal incentive are paid in all sectors – manufacturing, services sector or medical transaction. Incentives mainly based on efficiency of employees, efficiency itself being determined by comparing actual performance with standard performance.

Nature Of Incentive Payments:Incentives are monetary benefits paid to workman in recognition

of their outstanding performance. They are defined a “variable rewards granted according to variations in the achievement of specific results the international labor office refers to incentives as payment by results. Incentive systems of payments emphasizing the point of motivation. Wages and salaries which are relatively fixed, incentives generally vary from individual to individual, and from period to period for the some individual.Importance:

With fixed remuneration, it is difficult to motivate workers to show better performance fixed remuneration removes fear of insecurity in the minds of employees.

Increased earnings would enable the employees to improve their standard of living.

Production capacity is also likely to increase.Eg:- The Bangalore-based rail wheel factory has now a production capacity of 77,000 wheels and 48,000 axles as against the initial capacity of 56,800 wheels and 23,000 axles because of implementation of the group-incentive scheme.

The other advantage of incentive payments are reduced supervision, better utilization of equipment, reduced scrap reduced lost time, reduced absenteeism and turnover, and increased output.

Performance-Based Rewards:Performance based rewards are many, but the most common

among them are:-Organizational rewards profit sharing stock

optionsTeam rewards gain sharing special bonusesIndividual rewards piece rate commission merit

pay bonuses.Profit Sharing:

In this, designated employees are allowed to share in the profit earned by a company.Employees Stock Option Schemes:

Confer ownership of the firm on employees. ESOPS encourage employees to buy shares of the company and reward them through dividend and market appreciation of the shares.Team Rewards:

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Are common where firms rely on teams to get the work done. Teams are rewarded with special bonus or gifts if they collectively achieve specific goals.Gain Sharing:

Plan is a type of team rewarded that motivates team members to reduce costs and increase labor efficiency in their work process company shares the cost savings wit employees.Special Bonus:

Companies pay bonus to all team members.Individual Rewards: Piece rate: Which links pay to the units produced by an employee?Commissions: are paid to sales people on the actual sales shown by them.Merit pay: is based on an individual’s performance this is gradually replaced by re-earnable bonuses for accomplishing specific tasks or for achieving certain goals.Bonuses: Are often determined from team or organizational performance, they may also result satisfactory completion of individual goals.Money Is A Powerful Motivator:

In the first, money is fundamental for completion of a task. Second, money is a vehicle by which employees can buy

numerous need satisfying goods and services they desire. Third money is one of the hygiene factors that directed towards

motivation. Fourth money act as a score card which employees assess their

values with the others. Fifth, money acts as punctuation in one’s life it is an attention-

getting and effect providing mechanism.Many worries and concerns are financially based it is relaxing to receive sufficient money to clear the outstanding bills and past debts which have been causing tensions.

Feed back to employee

Employee

Performs Job

Employee sets new expectations based on previous experience

Pay and Performance- RelationshipThe conclusion is that money can motivates some people under

some conditions put in another way money cannot motivate all people under all circumstances. Saiyadain and Monappa conducted study found that only 33% of managers choose their jobs for remuneration. In another study conducted by Mirza S Saiyadain found that 72% of the students selected the management education to get the challenging jobs and freedom to make decisions, indicated that only 55% are money minded. In the some study found that 23% of the engineers indicated money is more important.

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Employee excepts pay

Performance is evaluated

Employee considers equally of

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In another study A.F.Fergudon and co., it was revealed that only 14.8% of MBA’s and engineering graduates preferred remuneration and 48% are for growth opportunities 24% for desired job contents, 6.6% expected culture to be good and 6.6% went by company image.Performance Management for Teams:

The most important task for HRM is managing the performance while recruitment, section and training and development tend to focus on pre-assignment issues, performance management looks at post-assignments performance related issues.

Performance is mainly focus on assessment of expatriate performance in the international context; expatriate performance management comprises several steps:

Linkage with organizational strategy. Setting performance goals Identifying variables impacting performance Appraising the performance Providing feedback Offering opportunities for important and Linking results with rewards.

1. Working with organizational strategy :Performance management helps identify employees with high

potentials, facilitates establishing performance-reward linking and delineates employee needs for developing all these offer vital inputs for formulation and execution of strategies.

2. Setting Individual Performance Goals :It is critical to link gals to individual team goals especially at the

top and senior management levels goals are the future outcomes that individuals and organizations desire and strive to achieve popularly goals seek to serve three specific purposes.

Guide and direct behavior in the direction of the goal. After benchmarks for employees to strive towards excellence. Reflect what the employee and managers consider as important.

In order to serve the above purposes goals must be specific measurable, accurate realistic and timely (SMART). Specific and challenging goals serve to focus the individual attention on precisely what is to be accomplished and to arouse him/her to peak performance people have specified and unspecified goals.

High

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Linkage to organizational strategy

Setting individual performance goas

Identifying Variable impacting performance

Appraising the performance

Providing regular feedback on progress towards

Providing opportunities for improvement

Liking results with rewards

Difficult goals

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Low

Low Goal intensity High

Goals and performance

3. Variables impacting performance : Performance of an expatriate depends on several variables which

are distinct from the performance of an employee working in this country. Performance of the non-expatriate is influenced by job extrinsic factors (for example, working conditions, and company policy) and job intrinsic factors (example, challenging job, career prospects). An expatriate’s performance depends on several other variables.

Compensation packages contribute to performance considerably whether on employee is working in the home country.

4. Appraising the performance: Apprising performance is a routine job but involves three key

decisions areas: specifying on performance criteria identifying the appraising and deciding the frequency of appraisal performance criteria includes outcomes and behaviors. Appraisals are immediate managers/supervisors, team members/clients frequency shall be once in three months, six months or once in a year.

5. Providing feedback: Feedback refers to the information provided to the assesses

about work behavior and outcomes. It helps control the work behavior of employees by directing their behavior through the provision of necessary feedback for corrective action.

6. Opportunities for improvement: Performance feedback also helps in highlighting the need for

training and development conducting appraisal, offering feedback and organizing training and developmental programmers are all parts of performance management these activities seek to provide opportunities to improve socialize and adjust to local environment.

Factors influencing international compensation Internal & external

Relativitiesrelativities

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Difficult goals

MNC internal environment

Goal orientation Capacity to pay Competitive

strategy Organizational

culture

MNC external environment

Local culture Home & host

countryGovernment roles

Industry type Competitor’s

StaffingOrientation

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Components of export compensationBasic salary: it is a primary component of a package of allowances which directly related to the cost of living housing allowances etc.Benefits: benefits constitute a major element of the remuneration of a regular employee, if they achieve a task.Allowances: Allowances are an expensive feature of expatriate remuneration packages, allowances relates to the cost- of- living allowances, it also covers a variety of expenses including housing evaluation etc.Incentives: paid once when they accept an assignment when they reach the targets the organization will offer the payment.Taxes: the final component of the expatriate remuneration relates to taxes MNC’s generally select any one of the tax to handle international taxation.

Tax equalization Tax protection

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International compensation strategy

Salary

Taxes Benefits

Incentives Allowances

ExportCompensation

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Repatriation: Returning person to home countryProcess

1. Preparation: developing plans for the future and gathering information about the new position

2. Physical relocation: saying goodbye to colleagues and friends and travelling to the next posting.

3. Transition: means setting into temporary accommodation making arrangements for housing and schooling renewing license, opening bank account.

4. Re-adjustment: coping with new role demands re-entry adjustment but sometimes probable loss of status and pay.

Chapter: 7 CONTEMPORARY ISSUES IN HRM

Talent Management:Globalization, competition, emphasis on customer care and shifts

in information technology enabled services necessitated the organizations to focus on management of knowledge workers, skilled employees and talented employees.

The talented employees are those who possess knowledge and innovative skills, creative abilities and positive behavior organizations need to adopt different human resource strategies for managing talented employees organizations use different strategies not only for people management but also for different process of recruitment, performance management and employee development. Talented employees are “high flyers”.Evolution and development of talent management:

Stages of talent management in the evolutionary process include.

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Repatriation process

Preparati

Physical relocation

Transition

Re-adjustment

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Stage-1: significance of talent was not recognized. All employees are treated as some therefore no separate strategies for talent management were developed.Stage-2: this stage is evolved by isolated for talent management rather than development of comprehensive strategies.Stge-3: this stage is characterized by the development of integrated and comprehensive talent management. Strategies for a particular segment of an organization.Stage-4: talent management strategies are designed to contribute to the HR and corporate strategies. It linked horizontally to HR management & vertically to corporate strategies.Stage-5: talent management strategies design corporate strategies and corporate strategies design talent management strategies.Strategies for talent management:Strategies include….

1. Relationship management: Organizations have to build relationship with talented employees

beyond normal employee- employer and employment relationship. This relationship could be based on relationship relations, human relations & family- oriented relations.

2. Job title :The talented employee should be given job title as partner.

3. Bandage :In addition to the partner-title, the employee should be offered

profit- sharing. Employee- stock option, productivity sharing, enables the employee to take part in success as well as failure events.

4. Empowerment and participation : Talented employee should be allowed to take part in decision

making of top level decision, strategy making and access to critical information. In addition talented employee should be empowered with regard to his/her job.

5. Representing the company :Company should allow and enable the talented employees to

represent the company in various committees, celebrations, negotiations & arguments.

6. Pay, benefits and allowances: Companies should pay special and discriminatory salary, benefits

and allowances to talented employed to retain them and get the best out of them.

7. Career and succession planning: Companies should plan for career of related employees as special

grounded and it should be challenging and competitive despite all these strategies some talented employees prefer to leave the company and join other companies in such case companies should prepare succession planning.

8. Recognition :The contributions of talented employees should be recognized

appropriately.9. Nature of work :

Talented employees should be given challenging, competitive, innovative and creative work in order to top their creative skills & potentialities.

10. Work environment :

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Company should provide conductive work environment physical social psychological that should be appreciated for talented employees.

11. Change and creativity : Talented employees prefer change, challenging and creativity of

the work place. Organization should encourage for that.12. Freedom :

Talented employees should be given freedom with regarded to nature of work, working hour’s rules and regulations working methods and styles.

13. Learning and development : Learning, growth and development of skill, knowledge, values and abilities for talented employees to up- to date for that organization should specially design the continuous learning and developmental programs for talent employees.

COMETENCY MAPPING

Employee hard skills like, knowledge and abilities are not sufficient to achieve the desired performance. What s additionally needed are employee’s soft skills like attitude, mind-set values, belief and commitment. Thus complete human resource is essential to achieve desired performance as well as to have competency of employee. Thus competency is the sum of knowledge, skills, attitude and personality of an individual as required performing current and future organizational roles. Competency also denotes motives, self-concept traits and desired behavior.Meaning: Competency mapping is the process of identification, evolution of employees. Competencies and organizational requirements and establishing perfect collaboration among them competency mapping also includes development and suitability of competencies based on the changing organizational requirement.Origin: Competency mapping has been in use since 1960’s it has been in use in education in the USA where specifications of competencies were to be learned including the modularization of instruction, personalization and field experience. It also identified as characteristics of individual competency mapping was first used in the UK for managing the development of occupational standards of performance.Objectives of competency mapping are:

1. To align competencies with the strategies of the business.2. To select employees based on job and culture fit.3. To plan for career and succession.4. To train and develop employees.5. For individual and organizational growth.

Assessment methods: Competencies are assessed through their demonstration in

employee behavior. Competencies are also assessed on the basis direct statement approach or the key element approach.Advantages of competency mapping:

Enhancement of business needs. Aligning behaviors with business strategies. Integration of HR systems with competencies. Measurement of human capital. Help property to utilize and manage HR. Help to appreciate human capital. Enhances organizational competitive advantage.

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Talent retention. Develop situational leadership skills. Manage of the rate of organizational change.

Identification of competency:The gap between current competency level and desired

competency level can be indentified at three stages..1. Immediate assessment.2. Continuous/ periodic assessment.3. Industry and technical assessment.

Requirements for competency based HRM:The requirements for competencies based HRM are..

Design the jobs roles and regulations structure. Identification of capacities to be learned and grown. Measuring and managing critical behaviors for managing results. Attract select and return resources. Identification and develop future leaders. Design and implement rewards for desired behaviors and

performance.HR SCORECARD (or) HR BLANCED SCORECARD

Introduction:Robert S Kaplan and David P Norton published about balanced

score cord performance planning and measurement framework. Similar to MBO Kaplan and Norton designed the balanced score cord as a result of a one year research project involving 12 companies. Balanced score cord is a performance management tool that helps in measuring strategy implementation.Kaplan and Norton found that companies are using balanced score cards to:

Drive strategy execution. Clarify strategy and make strategy operational. Indentify and align strategy initiatives. Link budget with strategy. Align the organization with strategy. Conduct periodic strategic performance reviews to learn about

and improve strategy.Balanced scorecard process four general perspectives:

Financial perspective. Customer perspective Internal process perspective. Learning and growth perspective.

Formulating HR score card:The balanced score card represents the four areas that are

represent for our overall success.A. Work control.B. Internal businessC. CustomerD. Financial success

The power of the balanced scorecard lies in the linkage between these four perspectives.

Work culture: Work culture is a morale norm in an organization different

organizations have various work cultures that reflects efficiency and effectiveness in an organization how employees sustain their ability to learn, grow, change and improve is the prime area in an organization.

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Work culture improve the right organizational capacities, where organizational improve their business process as such HR managers should continuously improve the work culture consistent with the organizations value proposition measuring the work culture of the HR score card with the other 3 perspective in order to achieve ambitious results for internal business process, customers and financial stock holders.

Internal business: Clinical quality of an organization is fundamental because it

enriches business progressions. The internal business perspective of the HR score card is the key process at which the organization must excel in order to continue working value for customers. The main task is to identify these processes and develop the best possible measures with which to track the organizations process. In essence, internal business must satisfy customers managers have to identify entirely new internal process rather than focusing their efforts on the incremental improvement of existing activities. How the organizations exceed the needs and expectations of their internal and external customers is vital.

Customer service: How can organizations exceed the needs and expectations of their internal and external customers is a vital question that organizations need to consider for the success of a business. Thus customers choice and performance in an area that needs to be considered because they are the external assets that an innovative organization has it improves customers perceptions enhancing customer satisfaction is the crucial are in any organization, where organizations have to provide lowest cost product, continual quality improvement, maximize operational flexibility and customer relationships.

Financial success: Organizations are setup for sufficient profit maximization. In a

completive business environment, financial success basically generates sufficient resources to reinvest in people technology, buildings, research and education. How organizations generates adequate resource affects the financial success of a business. Accurate HR score cord helps the organizations financial success and it builds value to the organization. Building value assist organizations to improve asset utilization and attain efficiency. Thus decrease operating expenses, create positive cash flow and maximize long, long- time profitability for financial objectives and achieve organizational visions.

The power of the score cord lies in the linkage between these four perspectives. So by improving the right organizational capacity, organizations will improve business process (internal business), which result in improved customer perceptions (customer service), which is in tern lead to meeting financial (financial success) objectives and achieving organizational vision measures human resource effectively with the assistance of HR score card.

Measuring human resource effectivenessHR managers should understand the reason for implementing the

HR score card and the business control of HR having understand reasons it is important to recognize the reasons and the business control within which HR operates by asking questions such as: what are

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the value drivers of the business (units), what human capital are included in general business reporting.

HR value can be seen and ultimately measured form three different perspectives.

1. The value of the HR function to the business as a whole 2. The value of HR process as practiced throughout the organization,

for eg: performance management, whether it fits with care fundamentals such as culture, structure, strategy and so on..

3. The qualification and competencies of people value to the organization, and their input to strategic decision- making.

Thus maintaining a HR score card frame work is most important in continually updating and reviewing the score card frame work.

Employer’s brandScarcity of talent:

Apart from demanding, the talented employees are most importantly in short supply. There are too many jobs chasing too few candidates and imbalance is only likely to become more acute in the years to come most advanced countries in the world are facing aging populations as 20% to 30% over the age of 60. But in India would be as just 7% of Indians are above the 60 age and 50% of Indians are in the age group of 25-35 ages.

Business people, even in India face the problem attracting and retaining right prople and getting them to work productively.What is employers brand..?

In view of the scarcity of talent, companies have been formulating strategies to attract talent. One of these strategies is creating and establishing employer brand, in the home and global labor markets especially in the minds of present and prospective employees and employee agencies. Product brand creates, attracts and retains the customers, and similarly, employer brand helps for creating, attracting, developing, utilizing and retaining the employees for a particular Employer brand that creates and builds an organizational reputation.

Employer brand carries various human resource management aspects in particular and business both internal and external aspects in general in order, to attract, utilize and retain talent. This employer brand creates employee friendly image of the employer, builds healthy working relationships between employer and employees enhances self-esteem and organizational locality of the employees.

Employer brand is defined as creation, maintenance and management of an agreeable, trustworthy and progressive image of the employer. It is a image to attract the best talent employers.Why employer brand..?

Employer brand has become essential in view of scarcity of talented employees.

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Need for employer brand…1. Security of talent:

Security of talent consequent up on higher growth rate of business than that of skilled manpower.

2. Competitive edge: Employer brand is a powerful competitive edge not only among

human resources, but also among customers, suppliers of inputs and market intermediaries.

3. Impression management: Employer brand is necessary to create a positive impression about

the company in minds of prospective employees and present employees.

4. Organizational loyalty: Employer brand is necessary to create a since of loyalty to the

organization among employees.5. To increase the recruitment and selection ratio:

Employer brand increases the number of applications for a particular job and thus enhances recruitment and selection ratios.

6. To enhance HR utilization: Employers prefer to explore their potentialities and contribute

maximum if they prefer to stay in a particular organization employees preference to stay in a particular organization continuously depend up on employer brand.

7. Reduces job misfit: Employer brand communicates accurate information to the

prospective employees quite in advance with regard to skill requirement this in turn attracts appropriate applications and thus reduces misfit.

8. Retain talent: Continuous upgrading the value of employer brand helps to retain

the talent within the company.9. Converts job seeking into job shopping:

Prospective employees used to seek for jobs employer branding provides a number of attractive offers to the prospective employees to select the employer of their choice. This can be possible in the form of shopping.

10. Social branding product brand and business brand: Employer brand enables the company to build a good social brand

that creates a positive impression of the company in the society social brand increases the product brand and total business brand.

11. HRM standards: Creation and upgrading of employer brand invariably enhances

the standards of human resources management practices, values and human relations.What constitutes employer brand

In fact, employer brand should emphasis employee needs they include:

Interesting work. Appreciation/ recognition for the work done. Feel- in- on- things. Freedom and involvement in the decision- making. Sympathetic understanding of personal problems. Attractive salary and benefits. Climate of ‘feel of ownership’.

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Career planning and development including promotional opportunities.

Personal loyalty to workers. Empowerment.

The best employer brandsVarious surveys indentified the best employer brands

Business today mercer- this survey:Indentified top to best employers in India for the year 2006 they

are.Rank Name of the company

1 Infosys2 Mind tree consulting3 Satyam computer

services4 Dr. Reddy’s labs5 Sapient6 Agilent technologies7 Johnson & Johnson8 Covansys9 HCL comnet10 HSBC

Employees Expectations from Employer BrandExpectations are different from one to another employee.

Keeping up promises. Guaranteeing service security Providing growth opportunities for employees. Thoughtful benefits. Rewarding merits. Responding readily to employee needs. Try and fail rather than fail and try in solving extra- ordinary

problems of employer Impartiality Maintaining high ethical values. Maintaining transparency. Ensuring qualities in service and products.

How to publicize employer brand: Spreading employer brand is as important as creating and establishing brand. It should be published through the following channels.

A. Publications B. Internet C. Advertisements in news papers, magazines and internet.D. Information to recruit agencies.E. Impressions created by current employees.F. Impressions created by senior managers about the top

management and the owner.Key elements of the employer brand:

1. Corporate image: Includes profitability, reputation, market share in the industry and the society.

2. Career offer: Includes challenging job remuneration carrier development opportunities

3. Corporate culture: Inspiring work place.

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4. Customer relevant: Meeting customer needs.5. Suit different cultures: Meet the needs of the employees of

different ethnic group’s culture and communications should take the needs of various cultures.

Work life balance

Balancing work and life assumes relevance when both husband and wife are employed working house wife are more than a working husband. Work-life balance is becoming a major challenge to HR managers as more women are taking up jobs to add to finances of their form lies or to become careerists. In India working women now account for 15% of the total urban female population of 150 million. The number is likely to increase as more number of girls are coming out of colleges and universities with degrees in their hands.

Women employees in IT firms

Company employees proportion of women (%)

Wipro 43,88024

TCS 43,68121

Infosys 31,00022

HCL technologies 20,24922

Satyam 20,00022

Accenture 11,00020

Patni 10,29921

Organizations should undertake work- life balancing programmers, as in their absence both men and women will be exposed to stress, depression and anxiety.

Programs aiming at work- life balance include: Child care at or near the work place, Job sharing, Care for sick children and employees, On-site summer camp, Training supervisors to respond to work and family needs of

employees, Flexible work scheduling, Sick leave policies, Variety of errands from day cleaning, dropping children at

schools, making dinner reservations and the like.The organizations that have developed work-life balance

programs have happier and more productive employees. There are also many companies that still have not investigated implemented or experimented with work life balance is a personal problem and not an organizational issue often the individual herself balances her life at home and at work with her own attitude.

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There are some interesting revelations about the status of work-life balancing. Two separate surveys conducted among senior executives by AESC, an association of executive search firms, reveal that 53 percent of the executives agree that work life balance has worsened in the lost five years. Asia-pacific executives are said to be worse off than their counterparts else were in the world.

Quality of work life

The term quality of work life has different connotations to different persons. For example to a worker in an assembly line, it may just mean fair days pay, safe working conditions, and a supervisor who treats him/her with dignity. To a young new entrant, it may mean opportunities for advancement, creative tasks and a successful career. To academics it means the degree to which members of work organization are able to satisfy important personal needs through the experience in the organization.

There are many factors which can contribute to QWL they are 1. Adequate and fair compensation :

Adequacy to the extent to which the income from a full-time work meets the needs of the socially determined standard of living.

2. Safety and healthy working conditions: Including reasonable hours of work and rest pauses, physical

working conditions that ensure safety, minimize risk of illness and occupational diseases and special measures for protection of women and children.

3. Security and growth opportunity: Including factors like security of employment, and opportunity for

advancement and self-improvement.4. Opportunity to use and develop creativity:

Such as work autonomy, nature of supervision, use of multiple skills worker’s role in the total work process and his/her appreciation of the outcome of his/her own efforts and self-regulation.

5. Respect for the individuals personal rights: Such as application of the principles of natural justice and equity,

acceptance of the right to face speech and right to personal privacy in respect of the workers off the job behavior.

6. Work and family life: Including transfers, schedule of hours of work travel

requirements, overtime requirements, and so forth.It is worth nothing that often the conditions that contribute to

motivation (equitable salaries, financial incentives effective employee selection, etc) will also contribute to QWL some of these activities (like job enrichment) might contribute indirectly to QWL by tapping the workers higher order needs, and motivating them still, other activates may contribute directly to QWL providing for a safer workplace less discrimination on the job and so forth.

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Whistle blowing policy

The third area of ethical concern for the HR manager relates to whistle blowing like the blowing of a whistle by a reference to indicate violations of the rules on a playing field, whistle blowing in a business setting refers to disclosure by former or current organization members of any illegal, immoral, or illegitimate practices involving their employers. Employees either make organizational misconduct public or inform it to top-level official of the company.

Whistle-blowing has both defenders and opponents those defending whistle-blowing point to the crocus of worth of fraudulent activities detected. Opponents of whistle blowing however cite the hundreds of unsubstantiated cases, often used by disgruntled workers seeking to blackmail employees.

Generally, employees are not expected to speak against their own employers because there is public interest in allowing firms to operate without harassment from insiders company information is generally considered to be proprietary and private. If employees based on their personal point of view, are freely allowed to expose issue t the public, the company may be thrown into turmoil and be unable to operate efficiently on the other hand, there may be situations in which the society interests override those of the company so on employee may feel it obligatory to blow the whistle.

The following sequence of actions morally justifies whistle blowing.

1. An unreported act that would be serious and would cause considerable harm to the people.

2. Once such an act has been identified, the employee has reported the act to his or her immediate supervisor and has made the moral concern known.

3. If the immediate supervisor does nothing the employee tries other internal pathways for reporting the problem

Only after each of these conditions has been met should the whistle blower go public.

HR issues in mergers and acquisitions

Firms seek growth through any or both of two routes 1. Organic2. Inorganic, or mergers and acquisitions.Organic growth is sought to be achieved through green field

projects- setting up operations newly organic growth is fraught with uncertainties. Investment involved is heavy, gestation period is long and business fortunes are not known. Merger or acquisition route involves combining with or taking over an exciting business. Obviously M&A route is relatively over as an unit, already functioning is being merged with or being brought over.

Indian businesses are on an acquisition of not only local companies but also foreign firms as well.

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For eg. Tata steel bought over Corus, the European steel maker Hindalco bought over Novelis, us-based aluminum manufacturer.

Although M&A’s are easy routs for business growth, creation problems associated with them need to be taken oligopoly markets come into being. The combined firm may resort to job cuts and price hikes.Role of HR manager in M&A’s: following are the typical tasks of the HR professional.

1. New board composition: The post merger and acquisition business needs a board for

decision making and the board shall comprise members representing both the firms members of the new board should be change agents so that they can carry out the change process dictated by the merger and acquisition. Top level change is symbolically of the changes to be made as lower levels. Board level change could also be inspirational for the organization.

2. Who will occupy which job: In any merger, there will be rival claims for senior executive

positions such as CEO, CFO, VP, COO heads of divisions and heads of deportment. The choice o right person for the right job is crucial. The disappointed managers may grievance and may even leave. Accent on merit is as important as the integrity of the process of managerial appointments.

3. Assessing culture: Cultural assessment may influence the organizational

compatibility, to understand the feature cultural dynamics for preparing plans of how cultural issues should be addressed. Approximately 70%of the mergers across the globe are said t have failed to provide the expected result. Most of the combinations fail because of cultural problems rather than faulty business logic.

4. Human capital audit: Human capital audit needs to be focused on two dimensions one

dimension is preventive, focuses on liabilities such as obligations, employee litigations and outstanding grievances. It also includes comparing the compensation policies, benefits and labor contractions of both the firms. The second dimension of human capital audit refers to the talent audit which in the long run would be critical for the success of a merger or acquisition deal. In most M&A’s talent audit is ignored.

5. Effective communication: Communication play a critical role first, it seeks to alleviate

tensions among employees, particularly of the acquired company merger syndromes do occur among employees fears such as layoffs, big fish v/s small fish attitudes superiority v/s inferiority complexes and victory- perceptions do cause stress to the employees senior manager should communicate a vision throughout the company.

6. Retaining talent: HR manager has to take the responsibility to retain talent first,

identify those employees with gifted skills and capabilities. Second, try interventions which would help hold back those talented individuals, finally all said and done, what melts any individual is one to one and heart to heart communication.

7. Aligning performance appraisal and reward systems: Aligning performance measurement and reward systems is a

challenging task particularly when the two firms have different policies

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and one of the parties is adversely affected by the change. Eg: Diamler- Benz merger with Chrysler in 1998, there were differences between the compensation arrangements between the American and German managers. Compensation system needs to be brought out as that would help build united culture.

8. Managing the transition: Transition occurs immediately after the deal and before a new team of managers is in place.First: the integration manager is expected to guide the integration process, making sure that crucial decisions are made and activities are put in place according to an agreed schedule identifying new values and opportunities.Second: the integration manager needs to educate the bought out company to understand how the new management operates.Third: the integration manager needs to act as an arbiter between the two companies, the tendency of the parent to act big fish eat small fish syndrome. Finally: the integration manager and transition team need to serve as a role model as to how the new organization should function. They should disseminate the shared vision and make sure they have to align to the vision.General HR issues:

India has become BPO web for various foreign industries like IT, Pharmacy, medical services and biotechnology, number of BPO professionals increased from 42,000 in 2000 to 171000 in 2003. A number of general HR issues in BPO are..

Empowerment of women through economic independence: The male-female employee ratio in ITES was 35:65 as of much

2003

Indentify loss in case of voice in BPO’s: Names and place of employees get changed to suit to the local

names of the region for eg: Subbarao become Samuel, New Delhi becomes New York.

Role related stress: Employees experience stress due to targets, benchmarks and

standards in terms of design, quality and fair of rejections. Social and economic pressures:

Employees from rural, poor economic and lower level social communities face pressures probe and sometimes insults.

Lack of leaders: Leadership in BPO industry has not yet developed sometimes

employees are assured to take the leadership sole. Absence of grievance procedure:

Poor quality for work life: Some of the BPO’s are established the lines fly- nigh business.

They do not provide conducive work environment, work facilities and conditions of employment.

Diversity management

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Diversity is going to be an important issue for the HR managers for the following reasons.

A. The number of young workers in the work force is increasing.B. More women are joining the work the work force.C. The proportion of ethnic minorities in the total work force is

increasing.D. Work force mobility is increasing.E. International careers are becoming common.F. International experience is becoming a pre- requisite for career

progression to many top-level managerial positions.Diversity, if managed effectively, offers competitive advantage to a

firm in several ways. It can increase an organizations productivity through several avenues, one of which is increased problem solving ability. Such productivity may result in increase in creativity. Bilingualism and biculturalism result in divergent liking which in turn leads to creativity.

In addition to diversity-related creativity and problem solving advantages, organizations may also be able to top gender and racially diverse markets better with a more diverse work- force. Firms having good records in managing diversity may also be able to attract better employees. Organizations that can manage diversity better tend to be more flexible because they have broadened their policies, are more open- minded have less standardized operating methods and have developed skills in dealing with resistance to change.

How to manage diversity effectively…?

Following are some guidelines..Top management commitment to value diversity is a pre-requisite.Organize diversity training programs that provide diversity awareness and educate employees on cultural and how to respond to those in the workplace.Have a support group set up by an employer to provide a nurturing climate for employees who would otherwise feel isolated.Accommodate female employee needs such as child acre and job sharing to prevent their turnover.Create motivating program in which senior managers identify promising women and minority employees and play an important role in nurturing their career progress.Have apprenticeship program in which promising prospective employees are groomed before they are actually hired on a permanent basis.Institute diversity audit to review the effectiveness of an organizations diversity management programs.Have proper communication which includes speeches by senior executions, inclusion of diversity in corporate vision statements, and the publication of diversity brochure and inclusion of diversity as a topic in new employee orientation.

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Unit: 3 Human resource processes Job analysis

Need for job analysis : Personal management, which can be subdivided into various sub-functions

like human resource planning, recruitment and selection. The organization should also find out the right man for the right job in right time. The knowledge of the job is essential to perform these functions.

Job analysis related terms like task, position, job occupation, job description, job specification and job classification.Task: A task is an action or related group of actions designed to produce a define outcomes or result.

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Position: a position is a group of similar tasks and responsibilities assigned to one individual. The term is used in this narrow technical sense to facilitate more precise discussion of the job analysis technique. Job: A job is a group of positions that are similar as to kind and level of work for eg: there may be six employees all of whom are classified under the same title, yet each perform slightly different work, if there may be five or six cashiers in a large commercial bank branch who may be different work.Occupation: An occupation is a category of work found in many firms.Job analysis: the U-S department of labor defined as the process of determining, by observation and study and reporting information relating to the nature of a specific job. It is the determination of the tasks, skills, knowledge, abilities and responsibilities.Job description: It is an organized, factual statement of the duties and responsibilities of a specific job it should tell, what is to be done, how it is done and why.Job specification: It is a statement of the minimum acceptable human qualities necessary to perform a job properly, qualities required for acceptable performance.Job classification: Grouping of jobs on some specified basis such as kind of work or pay for eg: a clerk, engineer etc.., Process of job analysis: job can be analyzed through a process, which consists of six basic steps.Collection of back ground informationOrganization charts: shows the relation of the job with other jobs in the overall organization.Class-specification: describe the general requirements of the class of job to which this particular job belongs.Existing job description: provides a good starting point for job analysis.Selection of representative position to be analyzed: it would be too difficult and too time consuming to analyze all the jobs. So, the job analyst has to select some of the representative positions in order to analyze them.Collection of the job analysis data: It actually involves analyzing a job by collecting data on feature of the job required employee behavior and human requirements.Developing a job description: Describing the contents of the job in terms of functions, duties, responsibilities, operations etc..,Developing the job specification: Step involves conversion of the job description statements into a job specification. Job specification or job requirements describe the personal qualities, traits, skills, knowledge and background necessary for getting the job done.Developing employee specification: This final step involves conversion of specifications of human qualities under job specification into an employee specification. Employee specification describes physical qualification, educational qualifications, experience etc.., the candidate with these qualities possesses the minimum human qualities.

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Collection of background

Selection of representative jobs

Collection of job analysis

Drafting of job analysis

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1. Organizational chart2. Class of jobs 3. Existing job descriptions

1. Organization human resource planning

2. Selection, training

3. Performance appraisal

4. Job evolution 5. Wages and

salaries6. Preventing

dissatisfaction7. Discipline8. Health safety9. Industrial

relations

Job analysis information and facts

Job description job specificationContains information and facts about: contains about:

1. Job identification: job title, location, 1. Education Job code, short name, 2. Experience department and unit. 3. Training

2. Job summary: brief job contains, 4. Judgmentits authority, responsibility, hazards etc. 5. Physical effort

3. Relation to other jobs (relation with 6. Physical skillsuperiors, peers, subordinates) 7. Responsibilities

4. Machine tools, equipments used 8. Communication skills

5. Materials and forms used. 9. Emotional characteristics

6. Conditions of work, location of work, 10. Unusual sensoryworking hours, sitting, walking-speed, demands such as vision,accuracy health hazards, occupational diseases small hearing etc..,

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Drafting of job analysis

Drafting of job analysis

Drafting of job analysis

Techniques for obtaining data

1. Interviews2. Direct observation 3. Maintenance of past

records4. Questionnaires

Job analysis information facts

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Sources of job analysis information:Information about job analysis may be obtained from three principle sources

they are:a. From the other employee such as supervisors ad foreman who watch the

works while doing a job and there by acquire knowledge about it.b. From the employees who actually perform a job.c. From the outside observers specially appointed to watch employees

performing a job such persons are called the trade job analysis. Sometimes, special job reviewing committees are also established.

Techniques of data collection for job analysis:There are several techniques:-

1. Individual Interview : Interview with groups of employees who do the same job.

2. Supervisors interview : With one or more supervisors who are thoroughly knowledgeable about the job being analyzed.

3. Direct observation : One approach to this method is by observing the worker on the job during a complete work cycle. Notes should be taken regarding all the job activities are observed. In the next stage is interviewing the worked and getting the additional information from him.

4. Maintenance of long records : Workers are asked to maintain and keep daily records they are doing on that day.

5. Questionnaires : Many companies use job analysis questionnaires to secure information on job requirement relating to typical duties and tasks, tools and equipments used.

6. Critical incident technique : Especially used in scientific analysis examples of successful or unsuccessful job behavior used in recruitment and selection.

There are some important sub systems in job analysis they are job description, job specification, and employee specification.Job direction:

Job description is an important document which is basically descriptive in nature and contains a statement of job analysis. It tells us what should be done, and why it should be done, and where it should be performed.Characteristics of good job description:Earnest dale developed some limits for working the job description.

The job description should indicate the scope and nature of the work including all important relationships.The job description should be clear regarding the work of he position, duties etc..,More specific words should be selecteda. The kind of workb. The degree of complexityc. The degree of skill requiredd. The extent to which problems are standardizede. The extent of workers responsibility for each phase of the workf. The degree and type of accountabilitySupervisors responsibility should be shown brief and accurate statements should be used in order to establish the purpose Utility of description in meeting the basic requirements should be checked.

Contents of job description:Contains of the information on the following items:

Job title Organizational location of the jobSupervision given and receivedMachinery and equipment materials tools worked withDesignation of the immediate superiors and subordinatesSalary levels: pay, DA, allowances, bonus, incentives, wages, hours of work, shift, and break.

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Complete list of duties to be performed separated according to daily, weekly, monthly and estimate time on each duty.Conditions of work: location, time, speed of work, accuracy accident hazards.Training and developmental facilities.Promotional chances.

Major steps of job description:Get the questionnaire filled in by the immediate supervisor of the employee.Job analyst has to complete the job description from by observing the actual work being done by the employee.All the information pertaining to the job should be secured from the worker.

Job specificationIt is a written statement of qualifications, traits, physical and mental

characteristics that an individual must possess to perform the job duties and responsibilities.Job specification information

It is a preparation of list of all jobs in the company and next secure and write of information about each of the company.

It includes:1. Physical specification:

It includes the physical qualifications or physical capacities which vary from job to job. Physical capacities include physical features like height, weight, chest, vision, hearing, ability to lift weight, ability to carry weight, health, age, and capacity, to use or operate machines, tools, and equipments.

2. Mental specifications: Which include ability to perform, arithmetical calculations, to interpret data,

information blue prints, t read electrical circuits, ability to plan, reading abilities, scientific abilities, judgment, ability to concentrate, ability to handle variable factors, general intelligence memory etc..,

3. Emotional and social specifications: It is very important for the post of managers, supervisors, etc. these include

emotional stability, flexibility, social adaptability in human relationships, personal appearance including dress, posture, features and voice required by the job.

4. Behavioral specifications: It plays an important role in selecting the candidate for higher level jobs in

the organizational hierarchy. It describes the acts of managers rather than the traits. These specifications include judgments, research creativity, teaching ability, maturity (capable of accepting responsibility, dominance).

Uses of job analysis Employment:

Job analysis is uses is useful as a guide in every phase of employment process like manpower planning recruitment selections, placement, orientation and performance appraisal and it gives information about duties, likes and responsibilities.

Training and development programmes :Need for training and developing are identifying with the help of job

description. Performance appraisal :

In this type of appraisal, a job description is useful in defining the areas in which job goals should be established.

Preventing dis-satisfaction and setting complaints :Job information can be used as a standers in preventing and setting

complaints related to work, nature of work, work procedure etc.., Wage and salary administration:

Basically wage and salary levels are fixed on the basis of job evolution. Taking into consideration us the contents of the job in terms of tasks, duties, and responsibilities, risks, hazards etc..,

Induction: Job description is a standard function as the employee is provides with the

information about the job.

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Selection and placement processSelection: Def: after identifying the sources of human resources searching for prospective employees and stimulating them to apply for jobs, the management has to perform the function of selecting the night employees at the right time. The objective of the selection decision is to choose the individual who can most successfully perform the job from the qualified candidates.

The selection procedure can be effective:1. Requirements of the job to be files, have been clearly specified (job analysis,

etc..,)2. Employee specifications (physical, mental, social, behavioral tec..,) have been

clearly specified.3. Conditions for screening have been attracted.

Essentials of selection procedureThe one selection process can be successful if the following requirements are

satisfied:1. Someone should have the authority to select. This authority comes from the

employment requisition, as developed by an analysis of the workload and work-force.

2. There must be some standard of personnel with which a prospective employee may be compared, i.e., a comprehensive job description and specification should be available beforehand.

3. There must be a sufficient number of applications from whom the required number of employees may be selected.

Significance of selection process:Selection of HR to man to organization is a crucial, complex and continuing

function. The ability of an organization to attain its goals effectively and to develop in a dynamic environment largely depends upon the effectiveness of its selection program. If right person selected, the remaining functions become easier. If the right person is selected, he is a valuable asset to the organization and if faulty selection is made, the employee will become a liability to the organization.Using selection agencies/consultants:

Some private agencies/consultants in india perform the function of recruitment and selection so as to enable the organization to concentrate on their main functions. They advertise, conduct tests and interview and provide a short list.The organization has to take these following factors into consideration in selecting an agency or a consultant:-

1. Reputation, effectiveness, sincerity and punctuality2. Advertisement copy, design and media plans of various agencies.3. Amount of fee, payment period and mode.4. Selection techniques to be adopted, particularly psychological tests,

interview methods etc.,Factors effecting selection decisions: A number of factors affect the selection decision of candidates the important among them are:

Profile matching :The sources secured by these known candidates in various tests are taken as a

standard to decide the success or failure of other candidates of each stage decision about the known candidates is taken at interview stage possible care is also taken too much candidates bio-data with the job specifications.

Organizational and social surroundings :Some conditions who are eminently suitable for the job, may fail as successful

due to varying organizational and social environment. Hence, conditions

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specifications must match with not only job specifications but also with organizational and social environment requirement.

Successive hurdles :In this method hurdles are created at every stage of selection process.

Therefore, applications must successfully pass each and every screening device in case of successive hurdles.-employment

-line managers decision-reference checks

-medical examinations-Final interview

-tests-group discussion

-preliminary interview-written examination

-application form

Successive hurdles in selection process Multiple correlation :It is based on the assumption that a deficiency in one factor can be counter

balanced by an excess amount of another. In the case of broader line cases multiple correlation method is useful and for other successive hurdles method is useful.Environmental factors influencing selection:

Both internal and external environmental factors influence selection process and decision.

Internal environment :Internal environmental factors that influence selection include size of the

company, type of organization structure, and type of job design, complexity, technological volatility, attitude and seriousness of line managers towards selection, personal prejudice and favoritism of the managers involved in selection process.

External environment : Its include labor laws, government rules, regulations and policies influence of

politicians in recommending candidates labor market conditions, culture of the country favoritism etc..,

Selection procedure :There is no standard selection process that can be followed by all the

companies. Companies may follow different techniques/methods depending upon the size of the company nature kind and number of persons to be employed.

It is not a single act, it is a series of methods because it involves the collection of information about the conditions, qualifications, experience, physical and mental ability nature, behavior, knowledge, aptitude etc..,Steps in scientific selection process:

Job analysis: It is a basis for selecting the right candidate every organization should finalise

the job analysis, job description, and job specification and employee specifications before proceeding to the next step of selection.

Recruitment: It refers to the process of searching for prospective employees and simulating

them to apply for job in an organization it is the basis for the remaining techniques of the selection.

Application form: The technique of application black is traditional and widely accepted for

securing information from the prospective conditions. Different style format will use different companies even for different jobs at different levels so as to solicit the required information for each job but most of the companies are not offering the applications, they ask application to apply on white paper.

Items in the application1. Personal background information2. Educational attainments3. Work experiences4. Salary

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5. Personal details6. References

Written examination: The organizations have to conduct written examination for the qualified

conditions after they screened on the basis of the application blank, to measure the conditions ability in arithmetical calculations, aptitude, reasoning, knowledge in various disciplines, general knowledge English language.

Preliminary interview: By this we can solicit necessary information from applications and assess the

applications suitability to the job. This can be conducted by an assistant in the HR department. This information related to the job specifications regarding education, experience, salary expected, aptitude towards the job, age, physical appearance and other requirements etc.,

Scientific selection process

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Development basis for selection

Application/resume/CV/bio-data

Written examination

Preliminary interview

Tests

Final interview

Medical examination

Reference checks

Line mangers decision

Job offer

Employment

Job analysis

Human resource plan

Recruitment

Assess the fit between the job and the candidate

35

Business games:To evaluate the applications in the areas of decision making, identifying the potentialities, handling the situations, problem solving skills, human relations skills.

Eg: case study: analytical, judgmental and decision making skills Role play: human relations skills.

Group decision: The candidates in the group are required to analyze, discuss, find alternative

solutions and select the sound solution.Tests:Employment tests help the management in evaluating the candidate’s suitability to the job. The purpose of these tests is to help in judging the ability of a candidate in a given job situation.

Thus tests are useful in selection, placement, promotions, performance appraisal and potential appraisal.

Concepts of testing:It includes:

a. Job analysis: It provides base information about the type of the candidate needs by the

organization.Job specification provides information about the demands made by a job,

employee specification gives the information about the characteristics, qualities, behavior of the employee.b. Reliability: If a person obtains some or similar score in the test conducted in first second,

and third time, under the same conditions it is said that the test is reliable. A test is unreliable if the score differs considerably in first, second third measurements. [Reliability coefficient is between +0.85(or) +1.00].

c. Validity: For eg:- if intelligence test aims a testing whether a particular candidate

possessed the nature and level of intelligence essential to perform a job. If intelligence test is effective in measuring the level of intelligence, then it can be said that the test is valid one.Types of tests:

Tests are classified into 5 types they are….I. Aptitude tests

II. Achievement testsIII. Situational testsIV. Interest testsV. Personality tests.

1. Aptitude test: Measuring the capacity (or) talent ability to learn a given job if given

adequate training. Some following are:- a. Intelligence tests: measuring the capability for comprehension,

reasoning, word fluency, numbers, memory etc..,b. Mechanical aptitude test: it includes measuring the capability of

spatial visualization, perceptual speed and knowledge of mechanical matter.

c. Psychomotor tests: measuring the abilities like manual dexterity motor ability and eye- hand co-ordination of candidates.

d. Elencial aptitude tests: it includes spelling, computation copying, and word measuring etc..,

2. Achievement tests: Measuring the specific achievement when organization wishes to employ

experienced candidates.It includes:

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a. Job knowledge test: candidate is tested in the knowledge of a particular job. (eg:- junior lecturer post to senior lecturer).

b. Wok sample test: in this, a portion of the actual work is given to the candidates as a test and the candidate is asked to do it.

3. Situational test: Evolutions a candidate in a similar real life situation. Asked to solve a critical

situation of the job. a. Group discussion: it is administered through group discussion

approach to solve a problem under which candidate are observed in the areas of initiating, leading, proposing valuable ideas, oral communication skills, concluding skills.

b. In basket: it is administered through in basket, in this test is supplied with actual letters, telephone, telegraphic message, adequate information about the job and organization, the candidate is asked to take decisions on various items based on the basket information.

4. Interest test: These tests are inventories of the likes and dislikes of candidates in relation

to work, job, occupations hobbies etc..,5. Personality tests:

It is a test to discover clues of an individual’s value system, his emotional reactions and maturity and characteristic mood. They are expressed in such traits like self confidence emotional control, conformity, objectivity, patience fear, intiolive, judgment dominance, sympathy, stability.

Medical examination:Certain jobs require certain physical qualities like clear vision, perfect

hearing, unusual stamina tolerance of hard working conditions, clear tone etc..,Reference checks:

The personnel department will engage in checking references. The references may be from the individuals who are familiar with the candidate’s academic achievement or from the applications previous employer. Information regarding conditions regularity of work, character and behavior.Employment:

After the final decision the organization has to intimate this decision to the successful as well as unsuccessful conditions. The organization sends appointment order to the successful candidates either immediately or it takes some time.Recent trends in selection:

1. Selection by invitation: Management observes the performance of key executives of competitors. If

the performance is excellent the management invites such executives to join the organization by offering attractive salary and benefits.

2. Easing: Organizations need to employ specialists to take up the highly skilled jobs. In

fact, the changes in technology demand highly skilled employees. It would be very different for small organizations to employee skilled employees as they demand high pay. Consultant organizations to employ experts and depute these employees to the needy companies on lease.

3. 360 degrees selection program: Superior administers the selection tests and interviews they judge the fit

between the job and the candidates. But the employee skills, knowledge and performance affect not only superiors but also subordinates and the employees of the same level. Hence the organizations started involving the subordinates and the employees of the same level in the employment tests and interviews. This type of selection program is called 360 degree programmer.

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