LO1 Personnel Management Basic Level PMS Recruitment L&D v1 13-4-2016

7/26/2019 LO1 Personnel Management Basic Level PMS Recruitment L&D v1 13-4-2016

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Unit 1: Human Resource Management: Learning Outcome # 1

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Important Notes to the EMPLOYEE:

1. This Training Module is of Basic Level and explores different basic aspects of Human Resources.2. Please consult books like Labour and Industrial laws by PK Padhi ,Organisational Behaviour by Stephen Robbins .3. Regarding any doubt or query please consult the instructor and various other online resources (marked in below each article)4. Please take the tests provided at the end of each module to have an elaborate understanding as to where you stand in understanding these

concepts

5. All the concepts and references provided in this manual is only for guidance and providing an employee with a deeper view on variousnuances of the subject so as to optimize efficiency of the employee and at the same time through collated improvement provide tangibleimprovement in the Organisational Performance.

6. Which concept to use at which point of time in perusal of work requires proper understanding and experience . Hence , All readers arerequested to read the manual in depth and re read the same after a gap of 3 months or more to remember them and interpret them again andagain after on job trials too.

Content and Visual Description:

The text in light yellow is notes to the Employee. Please read notes at each instance.

The notes to graphics and tech are instructions for the graphics and technical teams. They will not appear on screen. This text gives thedescription about the treatment used for a screen and the images and animations to be used. They will be in gray.

Post Test Evaluation :

No Learning can be said to be Complete without proper evaluation of the same through both practical and Theoretical Tests. Theoretical Tests provide apeek into the cognitive efficiency of the learner but may not provide an accurate picture of future implementation of the same which can lead toorganisational and work efficiency improvement but it does provide a reflection of the hardwork , concentration and interest put in by the employee tolearn the given module and it also provides a progress report to the trainer and the employee himself about their efforts and learnability respectively.

How to interpret Results:

Overall % of Questions Correct Level of Proficiency exhibited by Employee Notes to the Trainer

>90% High>60% & <90% Medium Some Concepts might not be clear to the

employee . Need to re teach the areas in whichemployee has got wrong answers..

<60% Low Need to re teach the entire Unit




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Title Human Resource Management: Introduction

Page # 1

Page Title Introduction (Word limit: 10)

Template Introduction/Static Screen

Content Human Resource Management deals with efficiently managing personnel activities for businesses resulting in justice andefficiency in business operations, ultimately paving the way for organisational success.It includes development andimplementation of people strategies which work in accordance with corporate strategies so as to ensure that culture,value, systems, processes, structure and quality, motivation, commitment of employees contribute fully to achievement oforganisational goals. The basic personnel functions include HR planning , job description , recruitment and selection,employee relations ,performance management , change management ,employee appraisals , compensationmanagement , training and development etc. HR can be further divided into IR and core HR. IR deals with various labourlaw compliances and labour disputes and core HR deals mostly with corporate functions like recruitment , l and d , PMSetc.

Robert Owen (1771-1858) is known as father of Human Resources. He was a social reformer and factory owner himself.He became internationally famous owing to his work called “ New Lanark” and the slogan “8 hours of labour, 8 hours

recreation and 8 hours full rest”

HRM developed in response to industrial revolution and subsequent labour handling necessitated by a number of strikesspanning through the 1800s . In 1868 first labour conference was held in USA . The idea that labour is a factor ofproduction alongside raw material , machinery , technology too gained great popularity . In india , textile mill strikes in1900s and post independence spate of labour laws generated regulating unions , working hours, rate of pay ,retrenchment etc in continuation of Fundamental duties and rights underlined in Indian Constitution formed the basicground of HRM. ILO conferences and India being a signatory through its own obligation had to pass many such labourreforms which often necessitated a function dedicated to control , regulate and nourish Labour as a ‘factor of production ‘on equal terms as functions dealing with other factors.

Note to Employee Elaborate examples of the above sub classifications is included in the Moderate Module of HR

Note to Graphics There should be a colourful next button to move between screens from the user perspective

Note to Tech Display introduction basics in first screen and then HR Planning , Job Description etc etc in one screen at a time




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Title on the top band Human Resource Management: HR Planning

Page # 2

Page Title HR Planning (Word limit: 12)

Template Objectives

Content HR Planning :It involves managing deployment in sync with manufacturing targets. It requires the following inputs:

1.Accurate description of which work takes how much time by how many people (Time and Motion Study)2.Accurate description of technical skills of individuals which are to be allocated (Classification of Skills andcompetencies)3.Accurate description of work area for understanding ergonomics of work ( Location Map)4.Multi Skilling Activity Results ( Excel sheet of Number of People with medium and above skill level in multiple

jobs)5.Work History Statistics ( Last 3 years Target Actuals of work done in the specified manufacturing facility )6.Deployment pattern (Last 3 years)

Conditions to be met during HR Planning:

1.All Labour law compliances should be met while planning the deployment . Eg . Women working in night shift infactories ( ILO ruling in 1919, Factory act 1948 Amendments) , Continuous hours of work ( Factory Act 1948 , IDact 1926)2.Wage Calculation Norm not to be altered before notification in Official Gazette and Contract Norms as perContract Act 1872 fulfilled , Assent of Labour Commissioner Secured.3.Job Enrichment and Job enlargement to be done after securing approval from concerned worker and hissupervisor and putting a change in Contract Terminology as agreed as condition of employment.

For Successful Strategic Manpower Planning the following must be met :1.Requires a team approach and must be viewed as process , not a single time activity2.Must have support from Senior Management

3.Must align manpower plan to department services and vision4.Must have line management ownership and be involved in the process of planning5.Require documentation of each such plan for future planning consultation6.Department work structure and Organisational Structure should be accounted for during this phase of planning

Overall HR planning involves Demand Forcasting and Current Manpower Inventory . Demand forcasting is done from dataof past sales and orders and Status of Current Manpower Inventory is obtained from Manpower reports on skill level,deployment , time motion study benchmarks etc

Team Members engaged in HR Planning must have following competencies :




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1.Strategic Perspective2. Maximising Potential3.Negotiation and Influencing4. Respect and Value Diversity5.Effective Communication

6.Planning and Organising7.Personal Responsibility8. Problem Solving

Forcasting of Job can be further classified as follows :

Lets take an example of Delhi Vidhut Board to attend to customer complaints . Based on analysis of customer complaints ,classification of work can be grouped in four categories (X,Y,Z,A)

A.Classification of Work

Job Category Hours Per Job

Related to X 0.75Related to Y 2.50

Related to Z 1.50Related to A 1.10

B.Forcast of Jobs for different years :

Job Category 2002 2003 2004 2005

X 15 13 11 8 Y 85 95 110 125

Z 27 35 41 45

A 10 8 6 4

C.Converting Forecast into Man Hours required per day (Multiply A and B):

Job Category 2002 2003 2004 2005

X 11.25 9.75 8.25 6

Y 212.5 237.5 275 312.5

Z 40.5 52.5 61.5 67.5A 11 8.8 6.6 4.4

TOTAL MANHOURS Required

275.25 308.55 351.35 390.4




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PER DAY

D. Converting Manhours into Manpower Requirement per day

This is done considering skill interchangeability of maintenance staff for the identified job categories with 20% fatigue

allowance and 20% leave reserve. Therefore, in a given day of 8 man hours per employee net available time for attendingcustomer complaints gets reduced by 40% per employee i.e only 4.8 man hours per day per employee is available toattend customer complaints.

Previous years data should be checked whether they are similar or not. The same is quoted below:

No of Maintenance Staffrequired

2002 2003 2004

Employees 57 64 73

Note to Employee Please consult Human Resource Planning by Dipak Kumar Bhattacharya for further illustrations

Note to Graphics Please display the content in 3 separate screens with Next Button In Each Screen .

Note to Tech

Title on the top band Human Resource Management: Job Description

Page # 5

Page Title Job Description (Word limit: 12)

Template Objectives

Content Job Description

a)Accurate description of activities required to be performed in a job (Inputs from Time Motion Study, Description of Jobfrom Unit Head , Supervisor and Employee himself in the form of task sheet)

Description of Job includes :

1.Description of Aptitude , Knowledge and Skill Required for the job2.Description of Educational Qualifications3.Description of Tasks that make up the job4.Conditions of work under which employee is expected to perform his job (Eg reporting to supervisor, creatingcontrol charts once a day and sharing with shareholders etc etc

Conditions to be kept in mind during writing Job Description:

Job description is to be used for hiring future employees on the said job and hence should never include taskswhich are one time in nature and hence wont be needed in future eg. Erection of a textile machinery




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Job description should be elaborate in nature which shall include almost all set of activities that an employee issupposed to perform in next year or soThere should be a timeframe kept for re drafting and revising JDs as with automation and various other workmethod modifications as in course of time many become outdated .

Note to Employee Please go through internet resources like Wikipedia along with Job descriptions uploaded in leading job search enginesfor reference

Note to Graphics Display in one screen only with Next Button

Note to Tech

Title on the topband

Human Resource Management: Recruitment and Selection

Page # 6

Page Title Recruitment and Selection (Word limit: 32)

Template Objectives

Content It is overall process of attracting, selecting and appointing suitable candidates for jobs (both permanent and temporary). ITincludes

a)Job Analysisb)Sourcingc)Screening and selectiond)Joining Proceduree)Evaluation of Hiring Efficiency by a multitude of rations

Job Analysis includes Analysing the Job Description of the job for which hiring is to be done. Post this activity a personspecification should be finalized based on which hiring is to be done

Sourcing is the usage of one or more strategies to attract or identify candidates to fill vacancies. It may be internal or external .

Various medias for external sourcing is :

a)Job Portals (Like Naukri.com, iimjobs.com etc)b)Local or National Newspaperc)Professional publicationsd)Job Faire)Employement exchangesf) Third Party

Usually which media to use should be directed as per category of candidate needed to fill the position. For experienced and highqualified candidates usually job portals and newspaper ads are preferred while in case of lower positions employmentexchanges and job fair finds greater relevance. Third Party recruitment agencies too are hired for sourcing candidates incase inhouse team fail to obtain the desired results.




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Screening and SelectionScreening of candidates from among the applicants is done on the basis of technical and behaviourial competencies required forthe Job for which hiring is being done.

Most commonly used processes for screening and selection are :1)Psychological Tests ( to test KSAs required for specific job , can be used only if KSA profiling for job present for comparison)2)Physical Ability Tests (to test physical strength , used for positions which involve physical labour on a day today basis,specialist training agencies provide modules for this test )3)Psychometric Testing ( to test mental inclinations and psychological bent of mind of candidate in sync with the job offered, forthis the job concerned should also first be decoded to level of personality traits via administering the MBTI test or 16 pf test onsuccessful employees)4)Written/ Online Subject Test ( to test technical skills of a employee specially used in case of entry level fresher positions )5) Aptitude Test ( To test logical and mathematical skills of a employee)6) Role Plays ( To test Negotiation , Fact Finding and Decision Making competencies of candidate)7) Group Discussions ( To test General Awareness , Awareness, Result Orientedness, Sensitivity to others)8) General Knowledge test ( To test Awareness to current Business Scenarios)

9) Extempore (To test General Awareness, Innovative ness)10) Cutoff Percentages in 10th 12

th and Graduation ( To test steadiness in academics , hardworking mindset , ability to be

consistent)11) Sports Test (Tests Clarity of Understanding , Patience , Result Oriented ness)12) Team Games(Tests Team orientations,Result orientedness, Negotiation competencies)13) Personal Interviews ( Tests All Competencies , Person Job Fitment )14) In Basket ( Tests Patience , Sensitivity to others, Result Oriented, Innovative)15) Logical Reasoning Test ( Tests Logical understanding and General Awareness)16) Data Interpretation (Tests Data Interpretation and General Awareness)17) Case study Test ( Tests General Awareness, Clarity of Understanding, Innovativemess)18) Presentation (Tests General Awareness, Innovative ness, Clarity of Understanding)

Joining Procedure is usually a process of document verification , background check , new employee document creation andInduction process that is followed within an organisation and usually varies from cadre to cadre. Turn around time for a memberto join from the time of putting up an advisement for the position is around 1 to 3 months (depends on nature of position for whichhiring is being done)

Hiring Efficiency Evaluation for Recruitment team is mapped through standard ratios. Usually surveys are conducted bystandard HR consulting groups like Hay Group , Mercer etc on these ratios to compare efficiencies of recruitment teams acrossorganisations and then rank them.

Ratio Name Formula Reason for Use




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Time to Fill (TFF) Total time taken from time of raisingrequisition by business to the momentthe candidate clears the background

To know the time on an averagetaken for hiring ( Tells aboutRecruitment Process Efficiency)

Time to Accept(TTA) Total time taken from time of approvalof business requisition to candidate

accepting the job offer

To know the time taken to identify andrecruit a candidate within the

organisation ( Tells about RecruitmentBranding Efficiency)

Offer Acceptance Rate (OA)% of candidates who accepted theoffer out of the number of offers thatwere presented

As an Indicator of RecruitmentBranding Efficiency

Application Drop off Rate (ADR) % of candidates who complete the jobapplication out of the number ofcandidates that begin the application

To know the quality of Candidateapplication process

Candidate Withdrawl Reasons(CWR)

Break up % wise of reasons for whicha candidate withdrew at the time ofinterview

To know the improvement areas forimproving attractiveness of job andorganisational branding

Recruiting Resources Cost toAcquire (CTA)

A recruiting Departments totalresource cost including full timeemployees, contractors andtemporary workers divided by numberof candidates hired for a fiscal year

To know about cost effectiveness ofRecruitment Team

Net Quality Score Sum of all hires in the last year minusthose who scored in the bottom half ofall employees at their performanceReview

To know about the Quality andSuccess of Recruitment process( PI ,GD etc)

New Hire Turnover Number of employees hired exitingduring 12 month period / actualnumber of employees hired during

that period

To know about the sustenance ofRecruitment Process

Cost per hire Recruitment Cost/ (CompensationCost + Benefit Cost)

For comparison with standards of8.33% used by agencies and also Asan input to Recruitment Planning

Out of these , most commonly used Ratios are:




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Note toEmployee

Elaborate description of Competency Mapping is given in the Moderate Module. For greater understanding one may consult thebook Competency based HRM: A strategic resource for competency mapping, assessment and development centres byGaneshShermon

Note to

Graphics

Please display the above content neatly in 2-3 screens with each screen having a clearly marked Next button

Note to Tech

Title on the top band Human Resource Management: Compensation Benefits

Page # 9Page Title Compensation Benefits

Content Compensation for HRM is far more than just the work remuneration that one receives in return for a work done. Beforedelving deep into compensation and its various models one needs to know about the basic knowledge sets that oneneeds to bring to table while handling compensation :

a) Knowledge of Labour Laws ( Particularly Minimum Wages act, Inter State Migration Worker act , Factory Act , ID Act and Contracts Act)

b) Knowledge of Compensation Models ( Straight Piece Model , Taylors method of compensation determination,Merricks model of differential piece rate , Gantt Task System of Compensation , Emersons Efficiency Model ,Rowan Premium Plan ,Scanlon Plan , Priestman Production Plan )

c) Survey Methodologies ( for conducting surveys on shop floor to decide which factors influence worker most andwhich should be factored in during creation of plan)

d) Competitive Benchmarking ( To compare current organisation compensation structure with industry benchmarks)

The above knowledge sets have been delved in detail in the second module of Human Resource( Medium Level

• Total days taken to fill a job / number hiredTime to fill• Net quality score is simply the sum of all hires in the last

year, minus those who scored in the bottom half of allemployees at their first performance review.

Net Quality score

• number of employees hired exiting during 12 month period/ actual number of employees hired during that periodNew HireTurnover

• Recruitment cost/(compensation cost+ benefit cost)Cost per hire




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)e) Compensation structuref) Compensation Indications in Last Union Budget (EPF etc related notifications)g) Tax structure provided in Finance Budgeth) Pay Roll Administration ( Have been explained in detail in next section)

Usually Compensation includesa)Basic Salaryb)Allowances (Eg HRA, Conveyance, Travel Allowance,Lunch Allowance, City Compensatory Allowance,ChildrensEducation Allowance , Uniform allowance)c)Claims: (Billed Claims like mobile allowance,Medical allowance, Rent free accommodation, Motor car facility, Electricityand Water, Domestic servant facility )d)Deductions ( PF , Gratuity , Medical Insurance is deducted)e) Performance Linked pay

Provident fund has two components a) Employees contribution , b)Employers contribution. This contribution is not paidout in the form of in hand salary. It is usually deducted and paid when employee resigns or retires.

Gross salary is amount of salary paid after adding all benefits and allowances before deducting any tax

Net Salary is amount of salary after all Tax deductions

Take Home Salary is amount of salary left after deductions and tax deductions have been made.

CTC is “Cost to Company” and includes all costs associated with employment contract

Salary Structure Varies from company to company for all roles , however most used pay structure is as follows:

1) Basic (35-50% of CTC)2) HRA (40% of Basic for Non Metro & 50% of basic for Metro Cities3) Conveyance allowance Max of 9600 Per annum4) Medical Allowance : Rs 1250 PM which can be max of 15000 PA5) Special allowance is the balance of gross6) Statutory part varies and limits keep on changing year on year for PF ,ESI etc7) Dearness Allowance

Formula for Gratuity and Overtime are as follows :

Gratuity = Basic* 15* number of years of service /(26)




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Gratuity can be shown as part of CTC

Overtime =(((Basic+da)/26)/8)*2* number of hours of overtime

For employees whose salary are high the special allowance is further broken down as :

a)Food couponsb)Car Hirec)Petrol and Car maintenanced)LTA

Dearness Allowance( mostly used in government sector and PSUs)

Dearness Allowance can again be split into Fixed (DA) and Variable DA(VDA). Most organised sector, unionisedcompanies, banks, govt. follow this pattern. The FDA is either a %age on the basic pay or a lump sum, (which partly orfully merged as and when wage revision pact is signed) whereas the VDA is linked to Whole sale price index (WPI) andConsumer Price Index (CPI). These are monitored on the notifications issued by the Labour Dept. GoI on quarterly orhalf yearly basis. These indices undergo normally upwards in inflationary trend and occasionally downward whendeescalation in market prices in select commodities, food grains, oils, veg. & other basket of items and accordingly VDAalso revised.

iCompensation fixation as per job roles often follows the following trend :

Job Role Fixed Compensation Variable Compensation

Innovation Related Roles High High

Maintenance Roles High LowManufacturing Related Roles Low High

Marketing Related Roles Low HighSupply Chain Related Roles High LowFinancial Services High Low

Most Used method of Variable pay is Merrick Differential Piece Rate :

Criterion Pay Out Way to Derive Payout

For Output upto 83% Basic Piece Rate Survey on Manufacturing Heads andaverage rate coming out from thesame

For Output above 83% and up to Basic Pay Rate +10% Hourly rate as Basis of Cost Calculation across




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100% bonus Industry

For Output above 100% Basic Pay Rate +20% Hourly rate asbonus

Basis of Cost Calculation acrossIndustry

Calculation Sheet looks like :

Day Standard Output Actual Output OutputPerformance

Rate applicable Day’s earnings(quantity* rate)

1 190 170 89% Basic Rate+10% *1.1*0.21=39.27

Note to Employee

Note to Graphics

Note to Tech

Title on the top band Human Resource Management: Personnel Management and Human Resource Management

Page # 12

Template

Page Title Payroll Administration (Word limit: 28)

Content Apart from Compensation Benefits strategic perspective , Payroll Administration is one of the transactional part , it requires1.To accumulate timely and accurate reports for all critical human resources initiatives , services and other Humanresource related information and data.2.To ensure that payroll records and personnel files are safely and confidentially maintained.3.To follow guidelines for accurate retention of records following appropriate recordkeeping guidelines.4.To document payroll & file maintenance processes in the field and in the Payroll Department and periodicallyaudit to ensure compliance.

5.To ensure that Payday Acts and regulations are followed for dispersing all final pay checks, special paymentsand general payroll practices.6.To ensure that all guidelines are met regarding wages and benefits calculation which are set by local and stateemployment regulations7.To ensure all new state employment regulations be noted and implemented as soon as possible

Few metrics used for evaluation of these tasks are :




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Note to Employee Survey Methodology and Evaluation in the form of constructs can be read i Deepak Chawlas “ Research Methodologybook “ or in You tube videos like https://www.youtube.com/watch?v=0M_dTNIVu40

Note to Graphics

Note to Tech

Title on the top band Human Resource Management: Difference between Personnel Management and Human Resource Management

Page # 13

Template

Page Title Personnel Management and Human Resource Management (Word limit: 38)

Text on Screen(Word limit: 400)

Human Resource Management performs the similar functions as Personnel Management but in a qualitatively Distinctway. The primary differences are as follows :

Human Resource Management Personnel Management

It is resource centred , directed mainly at management

,devolving responsibility of HRM to the line manager .

It is work centred , directed primarily towards

organisations employees , explaining managementexpectation , training them ,arranging for theircompensation etc.

In essence it is strategic in nature and is concerned withgaining sustained competitive advantage

In essence it is basically an operational functionconcerned primarily with carrying out the routine day today people management activities

It is more pro active and deals with forecasting oforganisational needs , the continual adjustment andmonitoring of personnel systems to meet current andfuture needs.

It primarily deals with maintenance of personnel andadministrative systems.

•Total number of all errors included in payroll processing (i.e. system errors, payrolldata entry errors, third party interfaces, etc.) + tax penalties + direct depositrejects + W-2c's

Payroll Error rate

•Total number of all tax penalties for every 1,000 paymentsTax Penalties per 1,000Payments

•Total Off-Cycle Payments/Total Payments

Percent Off-Cycle Payments




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Usually has a performance related pay Usually has job evaluation based fixed grades of pay.

Behaviour Referents include Values/Mission Behaviour Referents include Norms/Customs and practice

Management role is Transformational Leadership oriented Management role is Transactional

Human Resource management can be used to contribute to organisational purposes in the following way: (Chalil, 2013)

The roles and responsibilities of line managers in human resource management include : (Varkkey, 2008)

1.Placing the right person on the right job2.Starting new employees in the organisation ( Orientation)3.Training employees for jobs that are new to them4.Improving the job performance of each person5.Gaining creative cooperation and developing smooth working relationships6.Interpreting the company’s policies and procedures 7.Controlling labour costs8.Developing the abilities of each person9.Creating and maintaining department morale10.Protecting employees health and physical condition

Impact of legal and regulatory framework on Human Resource Management are :

EmployeeOutcome

OrganizationalOutcome

Financial/Accounting Outcome

Market BasedOutcome

Attitudes

Productivity

ExpensesReve

StockPrice




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Note to Employee Elaborate description of the acts can be studied from PK Padhis Labour Law book .

Note to Graphics

Note to Tech




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Page # 16

Template

Page Title Development of Personnel Management and formation of Various Associations


Human Resource management was born from the human relations movement which began in early 20th century due to

work by Frederick Taylor (1856-1915).(Wikipedia, n.d.) . Taylor initially explored what he termed “scientific management” ,however later moved on to one of the principal inputs of manufacturing process ,labour . This movement was formalisedfollowing the research of Elton Mayo and others , whose Hawthorne studies (1924-1932) focussed on how stimuliunrelated to financial compensation and working conditions – attention and engagement –yielded more productiveworkers.

Contemporary works of Abraham Maslow , Kurt Lewin , Max Weber (1864-1920) , Frederick Herzberg and DavidMcClelland ( 1917-1998) formed the basis of studies in organisational behaviour and organizational theory giving roomfor an applied discipline.

“By the time enough theoretical evidence existed to make a business case for strategic workforce management, changesin the business landscape (Andrew Carnegie, John Rockefeller) and in public policy (a là Sidney and Beatrice Webb,Franklin D. Roosevelt and the New Deal) had transformed the employer-employee relationship, and the discipline wasformalized as "industrial and labour relations". (Wikipedia, n.d.)

In 1913, one of the oldest known professional HR associations was formed which was called “the Chartered Institute ofPersonnel and Development “ . The institute was founded in England as “the Welfare Workers' Association”, howeverchanged its name a decade later to “the Institute of Industrial Welfare Workers “, and later again the next decade to “ Institute of Labour Management “ before settling upon its current name.

In the meantime , in United States, the world's first institution of higher education dedicated to workplace studies , “the

School of Industrial and Labour Relations “ was formed at Cornell University in 1945.

During the latter half of the 20th century, union membership declined significantly, while workforce management continuedto expand its influence within organizations. "Industrial and labour relations" began being used to refer specifically toissues concerning collective representation, and many companies began referring to the profession as "personneladministration". (Wikipedia, n.d.)

In 1948, “the Society for Human Resource Management (SHRM ) “ was founded as the American Society for Personnel Administration (ASPA). This institute later became the largest professional HR association .

As 21st century drew closer, advances in transportation and communications greatly fostered workforce mobility and




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collaboration. Corporations started to view employees as “assets” instead of “cogs in a machine” .

"Human resources management", became the dominant term for the function and the ASPA finally agreed to change itsname to SHRM in 1998. Other terms used to describe the field are "organizational management", "manpowermanagement", "talent management", "personnel management", and "people management".

Note to Employee .This will help in having a background in all negotiations with future consultants

Note to Graphics

Note to Tech


Page # 18

Template

Page Title Tasks: Employee Motivation (Word limit: 18)


Need for Employee Motivation Related Work is as follows :

1.To initiate a reward and recognition program to motivate employees2.To conduct quarterly survey and team building exercises3.To identify and adjust benefit programs to produce maximum value out of employees at the best possible cost tothe business.

4.To maintain benefits communication materials and enrollment processes as user-friendly.5.To communicate and deliver benefits on a timely basis to every eligible new hire.6.(optional)To ensure compliance with revised COBRA & HIPAA regulations and to ensure that FMLA is properlycommunicated.7.To keep the benefits plan as highly competitive such that it enables the organisation to attract and retain thebest talent available.8.To regularly seek input from employees regarding their levels of satisfaction with the culture, practices andpolicies, using objective and confidential surveys and/or focus groups.9.To communicate results of various satisfaction surveys and focus groups conducted to the employees withclearly defined action steps for improvement.




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Metrics used for analysis of performance of the task of Employee Motivation :

Note to Employee Motivation Theories like Maslow etc provide deeper insights into Motivation and Hence should be consulted.

Note to Graphics

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Page # 20

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Page Title Tasks: Employee Termination (Word limit: 28)


Based on performance and Non Conformance , employees also need to be terminated from time to time to ensurediscipline in working place. However as per labour laws of Factory Act and ID Act certain control steps need to befollowed mandatorily before retrenchment is done .

These are :

1.To verify whether the employee to be retrenched is a workman or not2.To look into the agreement (contract of employment) signed by the employee at the time of selection3,To formulate the reasons to be stated for retrenchment after analysing the state or central employmentregulations4.To communicate clearly to the employee the grounds in which he is being retrenched5.To calculate the dues payable to the employee based on conditions of employment and existing employmentregulations6.To provide the employee with notice period ( except when retrenched due to misconduct) and take priorpermission from state government if the existing employment regulation states so

• The number of employees among high performers leavingthe organisation over a 1 year periodAttrition rate

• The results of surveys provide an indicator on whetheremployees are motivated or not.Survey reports

• Improvement of output of individuals before and after theemployee motivation measuresPerformance comparisons




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7.To pay all dues to the retrenched employee within the specified date and update the salary and benefits sheetsaccordingly

8.To evaluate the performance of this task usually the number of complaints suffice .

***If the number of complaints is high or if there are a number of cases pending in judiciary against retrenchment done byan organisation then it would indicate that maybe the Termination mechanism or the person in charge is not being able totake care of the issue in a suitable way.

Note to Employee Please consult Factory Act and ID act on Layoff , Lock out and Retrenchment sections

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Page # 21

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Page Title Training and Development (Word limit: 8)


Following goals are to be followed for Training and Development :1.To ensure that performance expectations are well documented and they also include the target desired resultsand these are verbatim communicated in simple and understandable job descriptions.(For all job rolesfunctional in an organisation)

2.To ensure that all workers are having adequate skills to perform a specific job (Various Skilling models likeCMM) 3.To ensure access of training tools and techniques to supervisors and managers so as to produce a skilled andknowledgeable workforce (Requires usage of Training Budget allocated as per HR Planning)4.To ensure that the tools are cost effective and produce expected results(Production Reports analysis andTime Motion Study leads to gap areas and suggestions )5.To identify and offer professional development programs and leadership training that can help prepare people totake advantage of new career opportunities within the business.(External Training Tie ups are essentialmotivational tools too for learners ) 6.To ensure that performance feedback is simple, consistent and on time during training tests.




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7.To ensure that Individual development plans provided is clear, consistent and measurable .8.To calculate ROI on the entire Training process and take feedback of the entire process (Various Models forROI evaluation include usage of Control Groups,Impact Estimates , Post training surveys, Calculation ofimprovement in dependent variables)

Creation of Training and development package usually needs the following steps : (Goldstein, 2012)

Need Identification is the most critical step of a training framework. Need Identification

ORGANIZATIONWIDE SKILL AUDIT [ auditing operation process ]

-CUSTOMER SATISFACTION SURVEY[ source of inputs ]

-ORGANIZATIONAL METHODS[ changes/ impact on the organization]

-JOB ANALYSIS METHODS [changes / impact on the individual jobs]

-INDUSTRY ANALYSES METHODS [ changes in industry characterisitics / impact on the organization]

-BEHAVIORAL ANALYSES [data collection by observation ]




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-CRITICAL INCIDENTS [ reports /descriptions of things ]

-HUMAN ANLYSIS METHODS [paper pencil dianostic tests of knowledge/opinions etc]

-ADVISORY COMMITTEE METHODS [ seeking advice of departmental heads ]

It must be kept in mind that training and development , recruitment and PMS work in SYNC. If an organisations strategy isto hire members without any stress on their qualification and experience level (random f itment strategy) then its Trainingvertical has to be very competent and elaborate. Again, incase a organisation has a strategy of hiring only experienceprofessionals then training and development vertical need not be that strong.

Training Module creation involves the following set of activities :1. Selecting strategies :(Selecting area of training , objective of training ,sample of people to be trained , place and

Budget specifications)2. Breaking Objectives: (Break the training objective into knowledge, understanding and skill ).3. Choosing Method : (Breaking down facilities required for providing the training)4. Deciding on packages: (Cost Benefit analysis of costs of each possible method)5. Designing the Program (Elaborate breaking down the medium to level of who will train and when and how)

Training overall can be of two types:1. Technical (Skill focussed)2. Behavioural ( Behaviour focussed)

Training can be imparted in following ways :1. Job Instruction Training2. Vestibule Training (Similar to on job but here similar equipment is used away from actual worksite just for training)

3. Training Centre Training (lecture , conference , case studies are used)4. Simulation (Business Game etc)5. Apprenticeship (Longer duration of training just like a worker)

There are many initiatives from government of india which support providing of training and provide a hefty incentivebased on number of workers skilled.

The link for finding out various initiatives is http://www.nsda.gov.in/




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Note to Employee Please consult the web resources for various Training Models and their ROI calculations .

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Page Title Performance Management: Planning (Word limit: 8)


The process of planning of performance management is as follows :First establish unit strategy and goals (GOAL SETTING)

Align goals of employees and unitDetermine performance level criterion

Setting performance objective is thus important for the planning process. During this process , employees and managers

meet to clarify expected outcomes for the year and set objectives that link employees job to organisational goals. Thereare series of performance discussions between unit heads and HR PMS Teams to understand lead and lag indicator forperformance and their optimal values which can lead to required results. Now after knowing the required values whichshould be achieved HR PMS team sets the targets and communicates to the employees across units.

These objectives should be – SpecificMeasurable

AttainableRelevantTimely

Identifying behaviour for success is the fundamental aspect of the entire process. These performance dimensions soidentified should be observable , job related and specific in nature . Some very common things which should be kept inmind while setting targets are that not all individuals should have same target and hence members with specific skills beput in right jobs before initiating PMS cycle and should account for :

1.Interpersonal skills2.Effective communication3. Valuing Diversity4. Analysis and problem solving5.Decision making and Results orientation




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6. Fostering Safe and Secure Environment

Setting of development goals is also important at the same time as preparing performance objectives so that employeescan improve their on the job performance through these goals. This development goal setting is also done by participationof both the manager and the employee during the planning phase of performance management .

Note to Employee Read HBR Case Studies on Performance Management and Structure Strategy Fitment from SN Bagchi’s “ PerformanceManagement”

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Page Title Performance Management (Word limit: 8)


Performance Management is the process of ensuring that the business strategy , operations or processes ,systems –theinternals of an organisation and allocation of the resources are best aligned to meet the goals . (Bagchi, 2012) In order todesign processes so as to align with the business objective what is primarily needed is identification of Critical successfactors and Key performance indicators.

Critical success factors (CSF): It is the most critical information related to the factors which drive an organization’ssuccess and should be considered first. It also highlights the processes and tasks that need to be focussed on so thatorganisation can be successful (Bagchi, 2012)

For eg . Critical success factor of Domino’s Pizza is 30 minute delivery

Key performance indicators (KPI): They are quantified indicators that organization uses to measure for achieving thecritical success factors. There can be more than one KPI per CSF.

For eg . For Domino’s pizza the key performance indicator is Percentage of orders delivered free. If the number of ordersdelivered free is low then the business is moving towards the direction of success.

There are multiple frameworks propounded to provide a wholesome view of operation and inter linkages of differentmetrics. The most widely used frameworks are :

Dupont framework ( Proposed in 1919)




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Tableau de Bord-circa ( Proposed in 1920)SMART pyramid –circa( Proposed in 1950)Results Determinant Framework ( Proposed in 1991)Balanced Scorecard –(Proposed in 1992)

The basic performance management tasks can be summarized as:1.To ensure that systems , structure and strategy are aligned in one direction . 2.To ensure that the process of performance management is fair , just and effective 3.To ensure that Critical success factors and key performance indicators are focussed on while designing theperformance measurement processes

The methods of appraisal include : (Varkkey, 2008)Graphic Rating Scale Method (A scale that lists a number of traits and a range of performance for each. Theemployee is then rated by identifying the score that best describes his or her level of performance for each trait)Alternation ranking method (ranking employees from best to worst on a particular trait , choosing highest thenlowest until all are ranked)Paired comparison method ( Ranking employees by making a chart of all possible pairs of the employees foreach trait and indicating which is the better employee of the pair)

Forced Distribution method (Similar to grading on a curve ; predetermined percentages of rates are placed invarious performance categories)Critical Incident method ( Keeping record of uncommonly good or undesirable examples of an employee’s workrelated behaviour and reviewing it with the employee at predetermined times )

Behaviourally anchored rating scale (BARS) (An appraisal method that aims at continuing the benefits of narrativecritical incidents and quantified ratings by anchoring a quantified scale with specific narrative examples

Note to Employee Take one sample example and try out all the ratings for a small group.

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Page Title Performance Management: Recording (Word limit: 8)




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The Performance Management Recording is set out in 6 stages (Monitoring recordkeeping performance, n.d.)T

These include :1.Setting Performance objectives2.Developing performance measures3.Collecting the data4.Analysing results5.Implementing performance improvement6. Reporting and review

Overall guidelines for recording data are as follows : (Monitoring recordkeeping performance, n.d.)

1.All staff should create and keep full and accurate records (Ensured through Periodic Reminding and Penalties)2.All staff should be able to find records when there is any need (Ensured through PMS Audits)3.All staff should be aware of the organisational policy/rules for managing email, for managing corporate data onmobile devices or storing data on removable storage devices (Ensured through induction training)4.PMS related Records should be stored securely and protected from unauthorised access, alteration, deletion orloss

5. PMS Records in both paper and digital systems should be disposed of accountably6.Records should be captured into official recordkeeping systems7.All recordkeeping requirements for high risk business processes should be identified and documented8.All business systems that create and keep records should be identified9.All business systems that keep records of high risk business processes should be assessed for recordkeepingfunctionality.




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Note to Employee Supervisor Review, Peer Review , Normalisation Curves etc can all be consulted as readings for this section

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Page Title Performance Management: Actioning (Word limit: 8)




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It is a phased approach charting through performance factors, linking strategic thrusts to projects, departmental andindividual activity. During pursuance of PMS Cycle certain steps must always be repeated .

These steps include :1.Consistently and periodically measuring progress and providing feedback to senior management team 2.Enable emotional contracting with all staff because it is important to link individual commitment withorganisational goals3.Implement a robust IT based performance management system which would enable transparency andaccountability through effective processes and full utilisation of organisational capabilities 4.Monitor the KPI s and CSF s to track progress in fulfilment of organisational objectives 5.Take regular feedback from employees6.Perform regular benchmarking with competitor companies to determine whether any new advances inperformance management system has been implemented or not 7. Conduct regular meetings with the line managers and all persons in charge with rating so that they are clearwith the way they are supposed to operateHandle issues if any that may arise from the implementation of the performance management system.

Note to Employee IT enablement and Research Methodology can be Read from Deepak Chawlas “Research Methodologies book” onconstituting ways of survey evaluation and Dip stick studies to create innovative PMS working processes throughconstructs.

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Page Title Working in Partnership with Functional Areas (Word limit: 8)




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In an organisation of today all functional areas are interrelated to one another. Human Resource department which isentrusted with people management hence needs to work in association with all other function areas too. Workingpartnership with different functional areas can be demonstrated as below :

HR Function Working Partnerships with functional areas

Recruitment HR works with all other functional areas which provides the details of job requirement andnumber of employees needed to be recruited

Training andDevelopment

All other functional areas provide nominations and allocates trainers to perform the task oftraining and development

PerformanceManagement andAppraisal

Each functional area provides details of performance of each employee in the prescribedformat to the HR department

Rewards andRecognition

Each functional area nominates employees based on criterions mutually agreed by seniormanagement team

EmployeeEngagement

Finance department approves all costs of programs conducted in this function and feedback istaken from all other functions on these initiatives

Termination Line managers of different functional areas are consulted and taken in loop before termination.

Most of the times it is the line manager who contacts the HR for effecting an action against anemployee in case of repetitive poor performance

Risk Management Disaster and risk management plans are constructed after taking inputs from different functionsCompensation Compensation and pay mix is constructed after taking feedback about criticality of different

positions from different functional areas( mostly function heads) . Even date of salary iscommunicated after consulting the finance department

Employee Relations Conducting Collective bargaining sessions with employees also involves concerned linemanagers of different functions

Recruitment strategy impacts T and D , Compensation directly. PMS impacts R and R , Employee Engagement and Tand D. Employee Relations impacts Termination , Employee Engagement and Risk Management Directly.

Eg. A Organisation whose recruitment strategy is to hire individuals (Freshers) , must have a good T and D dept to traineach and every role. If the same organisation had a strategy to hire experienced professionals with prior training only thent and d need not train at an elaborate way.

Note to Employee Note the linkages of Departments minutely

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Page Title Employee Relations (Word limit: 18)


Employee Relations is the communication between management and employees concerning workplace decisions,grievances, conflicts, problem resolutions, unions and issues of collective bargaining.

Employee Relations usually involve 3 major parties :

Employee: The workers who are recruited by the employer to perform a job. They work for the employer in return forcompensation and other benefits as agreed upon in the contract of employment. In poorer countries , the bargainingpower of employees become less since for them to procure the basic necessities of life they need employment and henceoften agree to perform any task for the employer even at below market wages.

Employer : The affluent section of the society who owns the business and the profit generated from it. They are mostlyprofit centric.

State: They are the set of government institutions which holds monopoly on legitimate use of power. They try to protectthe interests of Employee since it does not have the same bargaining power as the employer and hence safeguardsagainst exploitation.

State also tries to achieve 4 basic economic policy objectives :1.To maintain high levels of objective2. To ensure price stability3.To maintain a balance of payment surplus4. To protect the exchange rate

State intervenes in cases of unethical, illegitimate conduct by either of the two parties. The interventions of state can beone of the following :

(Role of State in employment Relations, n.d.)

Employer on its own right A regulator of incomes and prices An economic manager A protector of standards

A rule maker and legislator A promoter of social citizenship guidelines




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Note to Employee Please consult Labour Law Journals for various cases in which State had approached Supreme Court which depict thesame explicitly.

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TemplatePage Title Involvement of Line Managers: Mentoring (Word limit: 45)


Mentor ing program usually infuses energy into employee’s professional and job development .Mentoring conducted byline manager can be of following types :

Informal MentoringInvolves social guidance, support and discussion provided by the line manager. There is no specific goal to thismentorship and is not part of organised effort to seek mentoring. Mentoring of this kind can be inefficient and inconsistent.

Formal MentoringIt is a structured process in which line manager tries to develop leadership skills of the employee.

One to One MentoringDue to intimacy of the relationship the line manager gives individual attention to the protégé to establish goals andobjectives and overcome potential obstacles.

Group MentoringIn this process the line manager provides mentorship to a group of employees who have similar goals .The line managerderives support, ideas, professional liaisons and even friendship with the employees.

Cross Cultural MentoringIt involves matching individuals from different ethnic or cultural background for a one to one or group relationship . The




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line manager so chosen provides the employee information regarding different processes, customs and work ethics to befollowed without disturbing any cultural and religious sentiment.

Overall during mentoring the line manager provides :Inputs to the employee on task , tackling interpersonal issuesInputs through sharing of experience ,point of view and resources

Advises or recommendations of different activities or actionsHelp in creation of networksOpinion on development progress

Note to Employee Please also go through various online mentoring simulation programs

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TemplatePage Title Ethical Issues (Word limit: 25)


The Human Resource Executives ethical issues concern lie in the following : (S.J, 2013)1.Knowing where the economic/stakeholder good is found2.Judging what the economic/stakeholder good is3.Knowing how much of the economic/stakeholder good is there4.Knowing why the economic good/stakeholder is found there5.Judging how long the economic/stakeholder good will last6.Conforming to teleological and utilitarian rules of common good

7.Basing decision making that conforming to fulfilment of duty promulgated federal laws ,ordinances andstandards

8.Conforming to real facts in case severance pay and benefits for employees terminated during crisismanagement9.To evaluate performance of individual free from bias10.To be impartial and just in all dealings of employees

Examples like global financial crisis that lead to fall of lehman brothers in 2009 are glaring examples where avoidance ofethical issues in case of decision making could lead to drastic consequences affecting business credibility and long termprospects.




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Note to Employee Please search various ethics related guidelines available in internet and organisation portal (Suvidha)

Note to Graphics Fit content on one screen if possible

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I n p u t s Personal and

corporate Inputs

P

r o c e s s e s Business Managemnt

and CorporateGovernance Processes:Executive Reasoning

and Strategy

O u t p u t s Business

Consequences

LO1 Personnel Management Basic Level PMS Recruitment L&D v1 13-4-2016

Documents

Transcript of LO1 Personnel Management Basic Level PMS Recruitment L&D v1 13-4-2016