Human Resources Management

HUMAN RESOURCE MANAGEMENT

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Human Resources Management

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Human Resources ManagementQ.1 a) What is the impact of globalization and liberalization on industries in our country? b) What is the effect of competition on Human Resource Management? Answer.1 (a) During the mid 1980s, the Congress Government headed by Rajiv Gandhi made a move to change the policies regarding business, licenses, and permits, as also its attitude towards multinational companies (MNCs) operating in India. However, it was only during the succeeding government of Narasimha Rao government that a strategy was actually formulated in this direction and marketed both in India and abroad. The strategy aimed to bring the Indian economy into the mainstream of the global economy, and at the same time allow a whiff of competition and growth to Indian business. This it was hoped would bring a new dimension to the concepts of quality, productivity, and growth. In evitably, the winds of liberalization that swept through the nation opened a variable Pandora box, with far-reaching implications for hu7man resources management. It bought in a new era of technology, quality consciousness and competition which compelled Indian business to wake up from its somnambulism and reassess its assumptions for dealing with the completeor-perish situation. India has proven world that despite its chaotic political scenario, imbalance wealth distribution, redundant bureaucracy, past baggage of Nehruvian socialism, and its sundry other problem, it can implement sustainable economic restructuring in the worlds most populous democracy. India has the potential, but the strong economic performance of recent years requires continuing efforts to deepen it and make it work. Since foreign entrants in India have distinct advantage in terms of state-of art technology R&D. Strong brand equity, Indian companies will be ringlet carefully quality system, capital and challenged to shape out. On the other hand, multinational companies (MNCs) have to settle down and be accepted by the domestic consumer, which is not always an easy process. Das gives guidelines to Indian companies for pursuing a winning strategy in the face of global competition. The after math of liberalization and globalization has made Indian companies conscious of competition and quality and acquire a totally global mindset. According to Gurucharan Das they need to: 1. Focus on a single area of competence and not haplessly diversity

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Human Resources Management2. Initially concentrate on the domestic market and then leverage their economies of scable overseas 3. Be able to capitalize on global trade 4. Not ignore quality even when they are pursuing a low cost strategy 5. Be able to overcome their historic phobia for investing in product development. Synergy between industry and government in an emerging country such as India is a major requirement. Several factors from which private enterprise was barred, till the recent past have been opened up. Simultaneously the domestic industry is reforming itself to meet the challenges of opportunity and competition from multinationals. The latter being a fresh entrant in Indian business has an advantage of designing its systems and procedure according to the challenged environment. Established Indian organizations however will have considerable baggage to carry, in terms of systems and also manpower. Although India has significantly progressed due to the structural adjustment program, a lot remains to be achieved. A free market economy demand a transparent set of laws and quick disposal of litigation-something that the archaic Indian judicial system is ill-equipped to cope with. The conflict between labor and capital had formed the basis of unionization in India. The unions demanded protection of labor against capital. With the introduction of technology and competition, the very existence of their jobs had become a major area of concern for the workers. Today due to restructuring programmed, in the short run job loss is quite significant in May industries. Liberalization has not liberated poor in villages from the clutches of the moneylender. The rural poor are now perhaps even more under the grip of corrupt petards than say years ago. Although there is little doubt that liberalization and globalization will generally lead to a buoyant economy, one needs to be watchful of the intense pain that change can cause to the affected sections of society during the crucial transition period. Answer 1 (b). Effects of competition on HRM As a result of domestic and international competition, human resource management is being given a key role. Some of the effects in HRM are highlighted below: With manpower costs going up, and the need to bring product prices down to meet competition, manpower productivity has become a central issue in organizations. HR professionals will have to play a crucial role to fulfill this need.

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Human Resources Management Another area of intervention would be in the case of joint ventures where professionals will have to predict and manage culture-fir policies. Companies are focusing on people with right profiles as also those who are capable. There is increasing emphasis on training and retraining to tap talent. Companies are showing increasing willingness to retain talent and redeploys manpower necessary. In some industry, India employees are being sought after abroad. This coupled with competition for employees among Indian companies, has led to an alarming attrition rate for some companies. To meet ambitious career aspirations and salary expectations, HR department are usually industry wise benchmarking for salary revisions. Employee compensation is being linked and programmers are becoming more focused, responsive and are also constantly reviewed against the external environment. Globalization has resulted in an influx of foreign managers to India. Corporate restructuring and redefining of roles are areas also focus

Q.2 a) What is Performance Appraisal? What are the objectives of the Performance Appraisal System? Answer 2 (a) Performance Appraisal: A formal definition of performance appraisal is that, it is the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development. A more comprehensive definition is: Performance appraisal is a formal structured system of measuring and evaluation an employees job, related behaviors and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in future so that the employee, organization, and society all benefit. The other terms used for performance appraisal are: performance rating, employee assessment, employee performance review, personnel appraisal, performance evaluation, employee evaluation, and merit rating. Objectives of Performance Appraisal: Data relating to performance assessment of employees are recorded, stored, and used for several purposes. The main purposes of employee assessment are: To effect promotions based on competence and performance To confirm the services of probationary employees upon their completing the probationary period. To assess the training and development needs of employees.

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Human Resources Management To decide upon a pay raise where regular pay scales have not been fixed. To let the employees know where they stand in so far as their performance is concerned and to assist them with constructive criticism and guidance for the purpose of their development. To improve communication. Performance appraisal provides a format for dialogue between the superior and the subordinate, and improves understanding of personal goals and concerns. This can also have the effect of increasing the trust between the rater and the ratee. Performance appraisal can be used to determine whether human resource programmers such as selection, training, and transfers have been effective or not.

b) Explain the concept of 360-degree appraisal. How is this concept used in industry to appraise the employees? Answer 2 (b) 360-degree appraisal is a Multi-Rater Appraisal and Feedback System, where an individual (employee) is assessed by a number of assesses including superiors, subordinates, peers, internal customers, and external customers. The appraisal is done anonymously by the concerned persons and the final assessment is collected by the HRD. The assessment is made on questionnaire designed to measure behaviors considered critical for performance. 360-degree appraisal system involves 5 main phases to appraise the employees. a. Participants Orientation and modalities of the exercise b. Questionnaire distribution c. Monitoring and Follow-up d. Data feeding reports and analysis e. Workshop Q. 3 a) What is Performance Counseling? Explain the process involved in performance Counseling. Answer 3(a) Performance Counseling focuses on the "difficult employee," helping organizations and individuals define the problem, explore alternatives, and develop an appropriate action plan. Counseling steps include informational meetings, individual counseling, and recommendations for both the employee and manager. Process involved in performance counseling For repeated but relatively minor incidents of substandard performance, misconduct, or rule violations, corrective counseling and discipline should be progressive. The normal sequence of action is: (1) Initial discussion; (2) Oral Warning; (3) Written Reprimand; (4) Suspension; (5) Discharge. Depending on

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Human Resources Managementthe severity of the case, the action may begin at any of these steps. Any action involving suspension or discharge requires prior review by the Assistant Vice President of Human Resources or his/her designated representative. Initial Discussion: Normally, initial disciplinary action should be in the form of an oral discussion, especially for minor rule violations. If it appears that an employee has failed to perform his/her work or conduct him/herself according to requirements, the supervisor should first talk to the employee about the matter and informally inquire further into the situation. If facts indicate that the employee may have been at fault, the supervisor should discuss the matter with him/her and the expectations of the supervisor or steps needed for improvement. The supervisor should always seek to ascertain the employee's comments regarding the incident, behavior, or poor performance. Oral Warning: If the initial discussion fails to produce the desired results, an oral warning is normally the next step. With an oral warning, the supervisor should again discuss the matter with the employee. If the supervisor wishes, he/she may call on another person to be present as a witness, preferably another supervisor. The employee should understand the gravity of the situation. With an oral warning, the employee is put on notice that disciplinary action will be forthcoming if there is a repeated violation or if the situation does not improve. Supervisors should maintain a complete and accurate written notation of the warning. Written Reprimand: Before a Written Reprimand is issued, the employee should be allowed to respond (preferably in writing) to the charges of misconduct currently made against him/her. If it is then determined that a Written Reprimand is appropriate, the Written Reprimand should involve both a formal interview with the employee by the supervisor and an official memorandum to the employee emphasizing the negative effect of the employee's conduct or work performance on his/her record and opportunities for advancement. If the immediate supervisor does not have the authority to discharge, then such an interview should be conducted by or with the permission of the department official who does have discharge authority. A written reprimand should include: names of everyone involved, dates, description of incident or unsatisfactory performance, witnesses (if any), and action taken. Reference should be made to dates and results of prior oral warning(s), or other written reprimand(s), if any. Also included should be action that will be taken if satisfactory improvement does not occur. Additionally, this document should provide the employee with information relevant to their right to appeal the action under the Complaint and Grievance Policy (9.03) of the Personnel Policies and Procedures Manual. A copy of this policy should be attached to the reprimand. The reprimanding official should sign the reprimand. It should also bear or request the employee's comments, if any, and his/her signature. The employee should be informed that his/her signature indicates receipt of a copy of the reprimand letter, but not necessarily mean that he/she agrees

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Human Resources Managementwith its contents. If the employee refuses to or is unable to sign the reprimand, a witness, preferably another supervisor should verify that the employee has received a copy of the reprimand. A copy of the letter of reprimand should be sent to Human Resource Services, Employee Relations division. Written Reprimands will be removed from an employees permanent file, and placed in a confidential file in Human Resource Services, if requested by both the employee and the supervisor and the employee has performed satisfactory work for a twelve (12) month period from the date of the last reprimand letter. In unusual circumstances, the department official may request the reprimand be removed from the file prior to the end of the twelve-month period. The reprimand will remain a part of the employees record. Suspension: " Suspension" means the interruption (without compensation) of the active employment status pending an investigation and decision as to the extent of disciplinary action; or suspension may be disciplinary action in itself. A supervisor with authority to discharge has authority to suspend without pay, either as a disciplinary measure or to permit investigation of alleged charges. Before suspension action is taken the immediate supervisor must discuss the situation with his/her supervisor, the Assistant Vice President of Human Resources or his/her designated representative and the employee and allow the employee to respond (preferably in writing) to the charges. If suspension is warranted, the employee should be presented with a written document which indicates he/she is being suspended, the number of days suspended, and the reasons for the suspension. Suspension involves removal from the payroll for a specified period of time, or in some cases, indefinitely. To suspend (dock) an employee from payroll, the supervisor who has discharge authority must forward a written memo to Payroll. The memo should stipulate the name of the employee being suspended, his/her social security number, and the number of days suspended and that the employee is "being suspended as disciplinary action for violation of a major work rule. A Payroll Authorization Form HRM-6 should be completed to remove the employee from the payroll. Discharge or Release: In cases other than serious offenses, release from employment should be used as a last resort. When it becomes necessary to release an employee, the employee, in effect, will have been released by the record he/she has established. The supervisor/manager who has the authority to employ also has the authority to discharge. Since the most extreme disciplinary measure is discharge, before the discharge the supervisor or management official who initiates this action must review with the Assistant Vice President of Human Resources or his/her designated representative, the procedure that has been followed. This review will assure that the case for dismissal has been objectively investigated and is both justified and properly documented. Regular non-probationary staff that is being considered for discharge for major rule violations shall be given an opportunity to respond to the allegations (preferably in writing) prior to the decision to discharge. This may be accomplished in a meeting with the employee or by providing the

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Human Resources Managementemployee a written letter for his or her response. If after reviewing the response, and discharge is in order, an employee should be presented with a letter indicating discharge, the reasons for the discharge, and the date of the discharge. As with every step outlined in this policy, the manager must allow for and seek to ascertain the employee's comments regarding the situation. Since discharge requires prior consultation and approval, it should not be done "on-the-spot. If the management official feels it is improper to leave the employee on duty until such approval can be obtained, he/she should consult with Human Resource Services to see if indefinite suspension or administrative leave is appropriate. This also allows time for any necessary investigation. Immediate Suspension: In extremely serious cases involving unruly behavior, violence or imminent threat to personal safety or property, the supervisor and/or Police Department may determine the need for immediate arrest or removal from Health Science Center property of an employee. This may include collecting all Health Science Center property from the employee. This should be considered an immediate suspension and may warrant proceeding with the discharge process above.

b) What are the objectives of Potential Appraisal? Answer 3 (b) The objectives of potential appraisal are: a. To assess an individual in terms of the highest level of work the individual will be able to handle comfortably and successfully in future without being over-stretched. b. To assist the organization in discharging its responsibility of selecting and developing managers for the future to ensure continuous growth of the organization. Q. 4 a) Define TQM. Examine the elements involved in TQM and evaluate the advantages and disadvantages of TQM. Answer 4 (a) Total Quality Management is a structured system for satisfying internal and external customers and suppliers by integrating the business environment, continuous improvement, and breakthroughs with development, improvement, and maintenance cycles while changing organizational culture. Total Quality Management is the culture of an organization committed to customer satisfaction through continuous improvement. Elements involved in TQM

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Human Resources ManagementTotal Quality Management is a management approach that originated in the 1950's and has steadily become more popular since the early 1980's. Total Quality is a description of the culture, attitude and organization of a company that strives to provide customers with products and services that satisfy their needs. The culture requires quality in all aspects of the company's operations, with processes being done right the first time and defects and waste eradicated from operations. Key elements involved in TQM are: 1. 2. 3. 4. 5. 6. 7. 8. Ethics Integrity Trust Training Teamwork Leadership Recognition Communication

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Human Resources Management

TQM has been coined to describe a philosophy that makes quality the driving force behind leadership, design, planning, and improvement initiatives. For this, TQM requires the help of those eight key elements. These elements can be divided into four groups according to their function. The groups are: I. Foundation - It includes: Ethics, Integrity and Trust. II. Building Bricks - It includes: Training, Teamwork, and Leadership. III. Binding Mortar - It includes: Communication. IV. Roof - It includes: Recognition.

I. Foundation TQM is built on a foundation of ethics, integrity, and trust. It fosters openness, fairness, and sincerity and allows involvement by everyone. This is the key to unlocking the ultimate potential of TQM. These three elements move together, however, each element offers something different to the TQM concept. 1. Ethics - Ethics is the discipline concerned with good and bad in any situation. It is a two-faceted subject represented by organizational and individual ethics. Organizational ethics establish a business code of ethics that outlines guidelines that all employees are to adhere to in the performance of their work. Individual ethics include personal rights or wrongs. 2. Integrity - Integrity implies honesty, morals, values, fairness, and adherence to the facts and sincerity. The characteristic is what customers (internal or external) expect and deserve to receive. People see the opposite of integrity as duplicity. TQM will not work in an atmosphere of duplicity.

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Human Resources Management3. Trust - Trust is a by-product of integrity and ethical conduct. Without trust, the framework of TQM cannot be built. Trust fosters full participation of all members. It allows empowerment that encourages pride ownership and it encourages commitment. It allows decision making at appropriate levels in the organization, fosters individual risk-taking for continuous improvement, and helps to ensure that measurements focus on improvement of process and are not used to contend people. Trust is essential to ensure customer satisfaction. So, trust builds the cooperative environment essential for TQM. II. Bricks Basing on the strong foundation of trust, ethics and integrity, bricks are placed to reach the roof of recognition. It includes: 4. Training - Training is very important for employees to be highly productive. Supervisors are solely responsible for implementing TQM within their departments, and teaching their employees the philosophies of TQM. Training that employees require are interpersonal skills, the ability to function within teams, problem solving, decision making, job management performance analysis and improvement, business economics and technical skills. During the creation and formation of TQM, employees are trained so that they can become effective employees for the company. 5. Teamwork - To become successful in business, teamwork is also a key element of TQM. With the use of teams, the business will receive quicker and better solutions to problems. Teams also provide more permanent improvements in processes and operations. In teams, people feel more comfortable bringing up problems that may occur, and can get help from other workers to find a solution and put into place. There are mainly three types of teams that TQM organizations adopt: A. Quality Improvement Teams or Excellence Teams (QITS) - These are temporary teams with the purpose of dealing with specific problems that often re-occur. These teams are set up for period of three to twelve months. B. Problem Solving Teams (PSTs) - These are temporary teams to solve certain problems and also to identify and overcome causes of problems. They generally last from one week to three months. C. Natural Work Teams (NWTs) - These teams consist of small groups of skilled workers who share tasks and responsibilities. These teams use concepts such as employee involvement teams, self-managing teams, and quality circles. These teams generally work for one to two hours a week. 6. Leadership - It is possibly the most important element in TQM. It appears everywhere in organization. Leadership in TQM requires the manager to provide an inspiring vision, make strategic directions that are understood by all and to instill values that guide subordinates. For TQM to be successful in the business, the supervisor must be committed in leading his employees. A supervisor must understand TQM, believe in it, and then demonstrate their

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Human Resources Managementbelief and commitment through their daily practices of TQM. The supervisor makes sure that strategies, philosophies, values, and goals are transmitted down through out the organization to provide focus, clarity, and direction. A key point is that TQM has to be introduced and led by top management. Commitment and personal involvement is required from top management in creating and deploying clear quality values and goals consistent with the objectives of the company and in creating and deploying well-defined systems, methods, and performance measures for achieving those goals. III. Binding Mortar 7. Communication - It binds everything together. Starting from foundation to roof of the TQM house, everything is bound by strong mortar of communication. It acts as a vital link between all elements of TQM. Communication means a common understanding of ideas between the sender and the receiver. The success of TQM demands communication with and among all the organization members, suppliers and customers. Supervisors must keep open airways where employees can send and receive information about the TQM process. Communication coupled with the sharing of correct information is vital. For communication to be credible the message must be clear and receiver must interpret in the way the sender intended. There are different ways of communication such as: A. Downward communication - This is the dominant form of communication in an organization. Presentations and discussions basically do it. By this the supervisors are able to make the employees clear about TQM. B. Upward communication - By this the lower level of employees are able to provide suggestions to upper management of the affects of TQM. As employees provide insight and constructive criticism, supervisors must listen effectively to correct the situation that comes about through the use of TQM. This forms a level of trust between supervisors and employees. This is also similar to empowering communication, where supervisors keep open ears and listen to others. C. Sideways communication - This type of communication is important because it breaks down barriers between departments. It also allows dealing with customers and suppliers in a more professional manner. IV. Roof 8. Recognition - Recognition is the last and final element in the entire system. It should be provided for both suggestions and achievements for teams as well as individuals. Employees strive to receive recognition for themselves and their teams. Detecting and recognizing contributors is the most important job of a supervisor. As people are recognized, there can be huge changes in self-esteem, productivity, quality, and the amount of effort exhorted to the task at hand. Recognition comes in its best form when it is immediately following an action that an employee has performed. Recognition comes in different ways, places and time such as, Ways - It can be by way of personal letter from top management. Also by award banquets, plaques, trophies etc.

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Human Resources ManagementPlaces - Good performers can be recognized in front of departments, on performance boards and also in front of top management. Time - Recognition can given at any time like in staff meeting, annual award banquets, etc. Advantages and Disadvantages of TQM Advantages a. Customer satisfaction: TQM aims at producing goods and services in accordance with customer expectation. This approach improves customer satisfaction. b. Enhancing quality: TQM helps in manufacturing better quality products at a lower cost. c. Reduction in waste: TQM seeks to prevent poor quality rather than detecting and correcting defects. It stresses on things being done right the first time. d. Reduction in Inventory: TQM aims at eliminating shortage in the supply of inputs. It also ensures that the organization does not purchase excessive inventory. e. Improving Productivity: Productivity is the input output relationship. Productivity improves when the same output is attained at a lower cost or higher output is achieved at the same cost. f. Reducing Product Developing time: TQM analyses and improves the basic business systems and subsystems to match customer requirements. g. Flexibility: TQM increases the flexibility in meeting market demands. h. Motivates Human Resource: TQM demands employee involvement and empowerment. i. Enhances competitiveness: TQM enables a company to face competition Disadvantages a. Difficult in bringing change: TQM requires significant changes in methods, processes, attitudes, and behavior. b. Rising expectations: As people become more knowledgeable about what quality organization is, their expectations keep rising. This creates anxiety. b) What are Quality Circles? Examine the process involved in Quality Circles and evaluate the advantages and disadvantages of Quality Circles. Answer 4 (b) Quality Circle is a small group to perform voluntarily quality control activities within the same workshop. This small group carries on continuously as a part of company wide quality control activities self development and mutual development and improvement within the workshop, utilizing quality control techniques with all member participating.

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Human Resources ManagementQC Circle is a small group in which people who work in the first line work place, continually improve and maintain the quality of products, services, job and so on. This small group promotes the activity in such a way as to autonomously administer it, utilize the QC concept and technique and others, display creativity and make self development and mutual development. These activity intents to: - Develop their capability, perform the self-actualization for QC Circle members, make its work place full of brightness and vitality. - Enhance customer satisfaction and make a social contribution. - The executives and the mangers in order to make QC Circle activities successful, contribute to improving the enterprises, constitute and implement company wide TQM or similar one by themselves. Facilitate the environment for the activity and continually, conduct appropriate guidance and support based on the respect to humanity, aiming at the participation by everybody and positioning the activity as important for human resources development and work place utilization. Process involved in Quality Circle The process of QCs involves: a. Problem collection The creation of a problem bank is one of the primary tasks that the circle members perform. Each problem bank is given a priority number depending on its benefits and urgency. Problem collection is an on-going process. b. Problem analysis Problem analysis depends on facts and not on feelings. A good number of data collection tools, charts, and statistical technique to establish facts before proceeding to find solutions. c. Problem solution A proper environment and group thinking together with expertise in work area generate appropriate solutions to problems. Various alternative solutions are explored and the optimum solution is chosen. d. Management presentation The solutions chosen by the circle members are presented to the management, highlighting the benefits anticipated. Acceptance of the solution acts as a powerful motivator. e. Implementation, review, and follow-up After getting the sanction of the management, the circle members chalk out a schedule for the implementation of the solutions. The results are constantly reviewed and follow-up action is taken if required. Q. 5 a) What is Manpower Planning? Explain the various steps involved in the Manpower Planning. Answer 5 (a) Manpower planning attempt to recruit, retain and efficiently distribute and channel employees both laterally and hierarchically through an organization. Traditionally, manpower planning has attempted to reconcile an

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Human Resources Managementorganizations need for human resources with the available supply of labour in the local and national labour market. In essence manpower planners initially seek to estimate their current and future employment needs. For many organizations, specialist departments within personnel may be established to concentrate exclusively on manpower planning. Issues that these departments may address include: How many employees does the organization currently employ? What is the age profile, by department, of our employees? Where in the organization are these employees to be found? Which are the biggest departments in the organization? What skills do our employees possess? How many employees, on average, leave the organization every year? In which areas of our business do we tend to lose more employees? Manpower planning involves both a quantifiable and quantitative dimension leading to: Recruitment plans: to avoid unexpected shortages etc; The identification of training needs: to avoid skill shortages; Management development: in order to avoid bottlenecks of trained but disgruntled management who see no future position in the hierarchy but also to avoid managerial shortages this often requires careful planning; Industrial relations plans: often seeking to change the quantity and quality of employees will require careful IR planning if an organization is to avoid industrial unrest. In practice, manpower planning is concerned with the demand and supply of labour problems arising from the process of reconciling these factors. Steps involved in Manpower Planning 1. Determining the period for forecasting requirements of manpower in the future. 2. From the number available at the commencement of the period, deducting the expected wastage through deaths, resignations, retirements, and discharges. 3. In case of shortages, deciding how shortages are to be met and whether any training or developmental facilities would be required for this purpose. If surpluses are anticipated, decide how these surpluses will be dealt with like through early retirements, discharges, or lay offs. b) Explain what is meant by Human Resource Planning? Answer 5 (b) Human Resource Planning is the process by which an organization ensures that it has the right number and kinds of people, at the right place, at the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives. Roles of HRP 1. Future personnel needs

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Human Resources ManagementPlanning is helps in determining future personnel needs. Surplus or deficiency in staff strength is the result of the absence or due to deficiency planning. 2. Coping with change HRP enables an organization to cope with changes in competitive forces, markets, technology, products, and government regulations. Such changes generate changes in job content, skill demands, number, and type of personnel. 3. Creating highly talented personnel Jobs are becoming highly intellectual and incumbents are getting vastly professionalized. The HR manager uses his/ her ingenuity to attract and retain qualified and skilled personnel. Technology changes will often upgrade some jobs and degrade others. 4. Protection of weaker sections In matters of employment and promotions, sufficient representation needs to be given to SC/ ST candidates, physically handicapped, children of the socially and politically oppressed and backward class citizens. 5. International strategies International expansion strategies depend upon HRP. The departments ability to fill key jobs with foreign nationals and the re-assignment of employees from within or across national borders is a major challenge facing international business. With the growing trend towards global operation, the need for HRP will grow, as will the need to integrate more closely HRP into the organizations strategic plan. 6. Foundation for personnel functions Manpower planning provides essential information for designing and implementing personnel functions such as recruitment, selection, personnel movement (transfers, promotions, layoffs), training, and development. 7. Increasing investments in Human Resources Another compelling reason for HRP is the investment an organization makes in its human resources. Human assets, as opposed to physical assets, can increase in value. An employee who gradually develops his skills and abilities becomes a more valuable resource. 8. Resistance to change and move There is a growing resistance among employees to change and move. There is also growing emphasis on self-evaluation and on evaluation of loyalty and dedication to the organization.

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Human Resources ManagementThe HRP Process

Environment

Organizational Objectives and Policies

HR needs forecast

HR supply forecast

HR programming

HRP implementation

Control and evaluation of programme

Surplus Restricted hiring Reduced hours VRS, Lay off, etc.Q. 6 a) Explain how the training needs can be identified.

Shortage Recruitment and selections

Answer 6 (a) Training can be defined as a planned process to modify attitude, knowledge, or skill behavior through learning experience to achieve effective performance in an activity or range of activities. Its purpose, in the work situation, is to develop the abilities of the individual and to satisfy the current and future needs of the organization A formal definition of training is it is any attempt to improve current or future employee performance by increasing an employees ability to perform through learning, usually by changing the employees attitudes or increasing

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Human Resources Managementhis or her skills and knowledge. The need for training is determined by the employees performance deficiency. Training need = Standard performance Actual performance Training programmes, help remove performance deficiencies in employees. This is particularly true when 1. The deficiency is caused by a lack of ability rather than a lack of motivation to perform. 2. The individual(s) involved have the aptitude and motivation needed to learn to do the job better and 3. Supervisors and peers are supportive of the desired behavior. Training contributes to employee stability in at least two ways. Employees become efficient after undergoing training. Trained employees tend to stay with the organization for longer period. Training needs can be identified through the following: Interview with job-holders: This is one of the most commonly used method whereby a manager, supervisor or member of the personnel department interviews the current job-holder about the duties and functions of the job. Interview with managers and supervisors: Alternatively a personnel manager or senior manager can interview the immediate supervisors of the job. Performance objectives: The aim of increased quality will require performance objectives to be laid down. In doing so assessment must take place as to whether current employees need training to reach these objectives. Analysis of competencies: An analysis of competency requirements could be useful to match certain set standards which are considered relevant to the various jobs involved. Personal profiles: Increasingly used in organizations and useful for training needs analysis are personal profile records which also include information concerning career aspirations of employees which may well be of significance in creating training initiatives. Performance appraisal: A good appraisal can reveal much about the strengths and weaknesses of individuals in terms of their performance. Assessment center techniques: Using a variety of methods including in-depth interviews and re-interviews, psychometric tests, team performance simulation exercises and other techniques a detailed profile of employees can be constructed useful for analyzing training needs. Global review and training audits: The most wide-ranging method of training needs analysis is to undertake a global review or more modestly a training audit.

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Human Resources Management

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Human Resources ManagementThe Training Process

Organizational Objectives and Strategies

Assessment of training needs

Establishment of training goals

Devising training programme

Implementation of training programme

Evaluation of resultsb) Explain how the results of training can be evaluated. Answer 6 (b) A programme of training is important as it lends stability and flexibility to an organization, besides contributing to its capacity to grow. Various methods can be adopted to evaluate the training results: Questionnaires (Feedback forms) or happiness sheets are a common way of eliciting trainee responses to courses and programmers Tests or examinations are common on formal courses, which provide a certificate. Projects are initially seen as learning methods but they can also provide valuable information to instructors. Structured exercises and case studies are opportunities to apply learned skills and techniques under the observation of tutors and evaluators. Tutor reports. It is important to have the opinions of those who deliver the training. This gives a valuable assessment from a different perspective. Interviews of trainees post course or instruction period. This can be informal or formal, individual or group or by telephone.

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Human Resources Management Observation of courses and training by those devising training strategies in the training department is very useful and information from these observations can be compared with trainee responses. Participation and discussion during training needs people who are adept at interpreting responses, as this can be highly subjective. For complicated training evaluations it is recommended that a combination of these approaches be used. Q. 7 a) Examine the elements of Succession Planning. Answer 7 (a) In conjunction with reward and appraisal systems, careful consideration needs to be given to career paths and progression, especially for younger managers. This requires a well-prepared human resource plan that looks to the future. It links development to succession planning where managers are penciled into positions vacated by retirers or when leavers and organization growth create new opportunities. Elements of Succession Planning can be viewed as follows: Management Staffing plans these plans should be prepared on an individual basis for all anticipated needs in the immediate year ahead and for key positions the intermediate and long-range future. The potential forecasts and overall manpower market forecasts should be reviewed and considered. The business plans should be reviewed to determine their effect on managerial needs.

Economic Forecasts

Human Resources Forecasts Staffing Plans Organization Plans

Manpower Market Forecasts

Business Plans

Staffing and Development Staffing includes recruitment, selection, and placement of candidates from outside, as well as selection and movement of present employees through promotion and transfer. Development of managerial personnel should be ensured through approaches such as formal training, both within the organization and outside, planned job rotation, performance planning, and appraisal, counseling and coaching. Creation of congenial environment The organizational environment should ensure the retention of the most desirable employees. In case

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Human Resources Managementthe nominated successor quits, the whole exercise will have to be repeated. Appraisals Appraisal and analysis of results achieved should provide an organization with essential feedback in the performance of managers. Preparation of management resource inventory Management Resource Inventory should include personal data, performance, potential, skills, career goals, career plans.

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Human Resources Managementb) Explain the advantages of promoting employee from within the organization rather than employing outside persons. Answer 7 (b) Familiarity breeds contempt. It is so true in the corporate sector. Whenever a vacancy comes up because of some manager retiring or resigning, top managers always think of bringing some body from outside. There are several impacts on the organization. Some of the following are: Firstly, the managers are not losing faith in the fairness of top management. Productivity is not suffering, as they are disturbed by the information of someone from outside is taken to succeed. Many managers directly affected by the induction of a manager from outside decide to separate from organization leading to further training & recruitment cost. It helps to avoid a state where fewer suitable candidates applying for jobs in the organization. Further leading to be trapped I mediocrity and its longterm growth and prosperity are hampered. It helps to avoid gang war with oust the outsider. Everybody gets gained except the poor organization, which remains stagnant. Its growth gets stifled. Gets to retain the talented people which may be lost due to lot of above reasons or insecurity The best can be received from all the employees if succession planning and congenial environment is maintained. It helps to see their future in this organization.

Q. 8 a) Explain the importance of Career Planning in industry. Answer 8 (a) Career planning involves efforts on the part of the organizations to provide avenues for growth to its employees. Certainly this growth should be accompanied by development. The otherside of the coin is the role of employees in career planning. It involves effort on the part of employees to clearly think through and decided areas in which they would like to make a career for themselves. When employees have assessed their career needs and have become aware of organizational career opportunities, the problem is one of alignment. The crucial role has to be played by HRD in ensuring this alignment to build up morale in the organization. A systematic choice of development techniques like training, special assignment, counseling and rotational assignments should be made to ensure this alignment.

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Human Resources ManagementEmployees are often uncertain as to the type of work that would suit them best. There are a number of evaluation instruments available to determine basic aptitudes. Human Resource Development Managers should be able to guide employees by administering these instruments on them. Employees should also find out whether they are loners or socially active. These exercises with some assistance from HRD Managers should help in career need assessment. Realizing that employees have definite career needs, organization should chart different career paths. These should b made known to all employees. As every employee wishes to see bright future for himself, these career paths do provide the hope to achieve success. At certain stage the upward mobility stops for many employees. This is inescapable in view of pyramid organizations structure. This phenomenon is called plateauing. It takes place around the age f 40. Some suggested measures to deal with such employees are: Mentors should be assigned measures to deal with such employees are: Depending on the maturity of such mentors, good results can be achieved in assuaging the hurt feelings of plateaued employees Additional career ladders could be established to retain some valuable resource. Giving them importance by assigning them to some important task force or committee. Assisting them to choose a new career. Some organizations assist their plateau executives to start their own business. Career path models developed by a large public sector undertaking: This organization has developed career paths models for the major discipline Sales Technical services Operations Engineering Aviation LPG Finance Personnel b) Career Planning and Succession Planning are very vital to meet the challenges thrown by the forces of globalization and liberalization. Explain. Answer 8 (b) Career planning and succession planning is very vital to meet the challenges due to globalization and liberalization.

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Human Resources Management

Market is open and vast in India and lot of professionally managed companies are entering the market, giving people a lot of scope in enhancing the career with very good and managed companies. No longer a hierarchical an autocratic organizations where no career planning and succession planning is performed. Lot of recruitment and training cost is incurred due to lack or poor planning of career. People do not see their career drafted and planned by organizations. HR only worries about the present state. No training and induction on work is provided continuously keep the gaps closed for all employees. Retention is the need of the hour. Talent and knowledge of personnel needs to be kept alive. Corporate environment and congenial atmosphere keeps employees motivated to do work. Competition in the market to get best suitable candidates keep the HR to retain and curve a need career for the employee. With globalization and liberalization, working hours and freedom to employees in their work, led to companies looking at the HR policies. The survey recorded the most important changes in human resources in the different companies from 1991-96. Virtually all companies starting placing emphasis on the up gradation of managerial and professional skills. A flatter organizational structure had resulted in fewer levels of hierarchy and enhanced empowerment; empowerment to all categories, from shop floor workers to managers had facilitated decision-making, flexibility, and trust. This had led to improved employee involvement and motivation. People at the middle levels of management were becoming more participated and result-oriented. On the other hand, decision-making was increasingly being handled at the group level. In security level among employees had diminished and their sense of responsibility had increased. There was emphasis on openness and transparency. An improvement in the communication channels within organization had resulted in better interpersonal Change in recruitment policy had led to the induction of professional with diverse technical, managerial, and academic background. Q. 9 a) What is Job evaluation? Explain the various methods used in conducting Job Evaluation Studies.

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Human Resources Management

Answer 9 (a) Job evaluation is the process to determine in a systematic and analytical manner the comparative worth of job with an organization. Job evaluation attempts to measure skills needed, responsibilities involved, efforts required for individual jobs. Job evaluation is not directly concerned with the quantitative and qualitative aspects of output or at the speed at which the operations or workers perform a job. Job evaluation is only concerned with the evaluation of jobs and not the men performing them. A properly developed structure based on job evaluation will tend to reduce grievances relating to wages and improve industrial relations. Various method used in conducting job evaluation studies are as follows: Job Ranking This method is widely used in small organizations. Being a very simple and not expensive method, it consumes less time and promises enough potential in its usefulness. Before actual ranking, brief job descriptions of all the jobs are taken. Job Grading In this approach, job factors approach is not considered. Jobs are rather measured as whole. A scale of values consisting of grades and grade description is prepared. Job grades are determined for a category of jobs. From this, the grade descriptions are prepared which should be broad enough to include several jobs. Such grade descriptions cover job description as well. Factor Comparison System Improved method of ranking system is known as factor comparison system where job factors are compared rather than the whole job. Point Rating System This system is widely used in job evaluation. It is quantifying, analytical and detailed approach hammered out to derive a balanced wage structure with least dispute among employees. b) What is meant by HRD Audit? Answer 9 (b) With strategies and styles in place, the structuring of the HR function becomes a significant dimension of HRD audit. HRD audit is a comprehensive evaluation of the current HRD strategies, structure, systems, styles and skills in the context of the short-term and long-term business plans of a company. HRD audit examines the linkages between HRD and other systems like TQM, personnel policies, strategic planning, etc. It provides inputs required to assess all aspects HRD and assign the HRD score for the company on a number of dimensions. Its main objective is to align the HR function with business goals or to create a business-driven HR function.

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Human Resources ManagementHRD audit starts with an evaluation of HRD strategies future business plans and corporate strategies. HRD audit always keeps business goals in focus. At the same time, it attempts to bring in professionalism in HRD. Q. 10 a) Explain the nature of Human Resource Development. Examine its nature and scope. Answer 10 a) Human Resource Development (HRD) can be defined essentially as consisting of three Cs: Competencies, Commitment and Culture. All three are needed to make an organization function well. HRD has been defined as a process by which employees of an organization are helped, in a continuous, planned way, to: acquire or sharpen capabilities required to perform various functions associated with their present or expected future roles; develop their general capabilities as individuals and discover and exploit their own inner potential for their own and/ or organizational development purposes; develop an organizational culture in which the supervisor-subordinate relationships, teamwork, and collaboration among subunits are strong and contribute to the professional well being, motivation and pride of employees. The purpose of any HRD system is broadly to build the competencies and/ or commitment of individuals, dyads, teams, and the entire organization as a whole. Its objective also is to build a lasting culture so that the employees learn and give of their best on a continuous basis. The nature and scope of HRD can be put into the following: Induction training Training Performance planning Performance analysis and review Performance development Performance counseling Performance appraisals Rewards and recognition Potential appraisal and development Career paths, career planning and development Job rotation Quality circles and other team-based activities Communications Organizational diagnosis and development Team building, role clarity and other mechanisms b) What constitutes Good HR Practices? What is its impact on the organizational performance

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Human Resources ManagementAnswer. 10 (b) Any practice that deals with enhancing competencies, commitments, and culture building can be considered as Good HR Practices. The practice can take the form of a system, a process, an activity, a norm, a rule, an accepted or expected habit, or just a way of doing things. Competencies are not merely related to a single individual. They can also relate to pairs of individuals. For example, the boss and her/ his subordinate, two departmental heads, two managers, or any two people who transact organization-related activities. Competencies may also relate to a team or a group on individuals. This includes departments, task forces, teams and other formal and informal groups and/ or teams that may come into existence from time to time on a temporary, permanent, or semi-permanent basis. Competencies may also be related to the organization as a whole. They may also deal with various areas and functions; technology, organization and management, behavioral, conceptual, etc. They may include a variety of skills and abilities ranging from simple awareness, knowledge, and information to highly sophisticated and complex ones. Attitude, values, and habits also become competencies though they more often deal with patterns of working. Developing commitment has a lot to do with motivation and work habits. Commitment is indicated by work effort, zeal, involvement, and enjoyment of the work or the job. Commitment building and its management are very much an HR function. Management of commitment should go beyond incentives and rewards. Commitment should be continuous and become part of life. Commitment building should be at the level of individuals, dyads, the work unit, and the entire organization. Various HR systems, processes, and activities contribute to developing commitment among employees. At the more visible level, rewards, recognition, and similar interventions can lead to greater commitment and motivation. At the less visible level, management style, work culture, the behavior of seniors towards their juniors, etc, influence commitment. Unlike competencies, which once developed are difficult to lose, it is easy to lose commitment, though it can be as easily gained. Often, an individual does not respond to all interventions in the same way in terms of commitment. Thus, salary increases may have a high motivational value at one time, while even higher compensation increases may not cut much ice on another occasion. A strong culture can have a lasting effect and provide sustenance to an organization. It gives a sense of pride and identity to individuals and teams. It enhances predictability, reduces transactional costs, and also contributes to commitment. However, the culture and values associated with an organization need to be appropriate and well articulated. The instruments of culture building include organizational climate surveys, total quality management (TQM) interventions, value-clarification exercises, vision-mission workshops, organizational-renewal exercises, and various other organizational development interventions.

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Human Resources ManagementGood HR Practices are those that contribute to one or more of the three Cs described above. They need to be identified and implemented costeffectively, reviewing and revising them from time to time to enhance their effectiveness and appropriateness. The researches indicate the following HR practices that effective firms adopt. Financial incentives for excellent performance Work organization practice that motivate employee effort and capture the benefits to know-how and skill Rigorous selection and selectivity in recruiting Higher than average wages Employee share-ownership plans Extensive information sharing Decentralization of decision making and empowerment Work organization based on self-managing teams High investment in training and skill development Having people to do multiple jobs and job rotation Elimination of status symbols Promotions from within A long-term perspective Measurement of HR practices and policy implementation A coherent view of employment relation A more compressed distribution of salaries across and within levels

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