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    HUMAN RESOURCE MANAGEMENT

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    INDEX

    SL SUBJECT PAGE

    1. HUMAN RESOURCE MANAGEMENT ( H R M ) 3

    2. STRATEGIC HUMAN RESOURCE MANAGEMENT 9

    3. HUMAN RESOURCE DEVELOPMENT 11

    4. TEAM EFFECTIVENESS 13

    5. HUMAN RESOURCE PLANNING ( H R P ) 14

    . JOB ANAL!SIS 2"

    #. JOB DESCRIPTION 21

    $. JOB SPECIFICATION 22

    9. JOB EVALUATION 23

    1". JOB DESIGN 2511. JOB SATISFACTION 2$

    12. %OR& SAMPLING 2$

    13. RECRUITMENT 31

    14. SELECTION 35

    15. TRAINING ' DEVELOPMENT 3$

    1. INDUCTION ' ORIENATION 44

    1#. MULTIS&ILLING 4#

    1$. CHANGE MANAGEMENT 49

    19. PERFORMANCE APPRAISALS 5

    2". HUMAN RESOURCE AUDIT 2

    21. MOTIVATION THEORIES 4

    22. MORALE #

    23. PERSONNEL POLICIES $

    24. UNIONS #1

    25. ORGANIATIONAL DO%NSIING #3

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    % H A T I S H R M *

    MEANING OF HRMHRM is a management function that helps organisation to recruit, select, train, develop and manage its

    members. Simply stated, HRM is all about management of people in the organisation from Recruitment toRetirement. HRM refers to set of programs, functions, and activities designed and carried out in order to

    maximise both employee as well as organisational effectiveness.

    Definition 1

    HRM is planning, organizing, directing and controlling of the procurement, development, compensation,

    integration, maintenance and separation of human resources to the end that individual, organizational and

    social obectives are accomplished.!

    Definition 2

    HRM is concerned with the people dimensions in management. Since every organization is made up ofpeople, ac"uiring their services, developing their s#ills, motivating them to higher levels of performance

    and ensuring that they continue to maintain their commitment to the organization are essential to

    achieving organizational obectives. $his is true, regardless of the type of the organization % government,

    business, education, health, recreational, or social action.!

    OBJECTIVES OF HRM&. Organizational Objectives+ $o assist the organization to achieve its primary obectives, whetherit is profit ma#ing or charity or social agenda.

    '. Societal Objectives: $o be responsive to the needs and challenges of the society whileminimizing the negative impact, if any, of such demands upon the organization.

    (. Functional Objectives + $o maintain department)s contribution and level of services at a level

    appropriate to the organization)s needs.

    *. Personal Ob jectives: $o assist employees in achieving their personal goals, at least in so far as

    these goals enhance the individual)s contribution to the organization. $his is necessary to maintainemployee performance and satisfaction for the purpose of maintaining, retaining and motivating the

    employees in the organization.

    SCOPE OF HRM+rom E,-/ to E0- orR-,- to R-,- of an employee in the organization

    +ollowing are the areas of operation of HRM&. Human Resource -lanning'. ob /nalysis

    (. ob 0esign

    *. Recruitment 1 Selection

    2. 3rientation 1 -lacement4. $raining 1 0evelopment

    5. -erformance /ppraisals

    6. ob 7valuation8. 7mployee and 7xecutive Remuneration

    &9. Motivation

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    &&. :ommunication

    &'. ;elfare

    &(. Safety 1 Health&*.

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    4. !%ange Agent:

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    O B J E C T I V E S V : 6 F U N C T I O N S O F H R MHRM O;>7-,? HRM F,-7,6

    Social 3bectives >(? >a? Aegal :ompliance

    >b? =enefits>c? Bnion Management

    Relations

    3rganizational 3bectives >5? >a? Human Resource -lanning

    >b? 7mployee Relations>c? Recruitment 1 Selection

    >d? $raining 1 0evelopment>e? -erformance /ppraisals

    >f? -lacement 1 3rientation

    >g? 7mployee /ssessment

    +unctional 3bectives >(? >a? -erformance /ppraisals

    >b? -lacement 1 3rientation>c? 7mployee /ssessment

    -ersonal 3bectives >2? >a? $raining 1 0evelopment

    >b? -erformance /ppraisals

    >c? -lacement 1 3rientation>d? :ompensation

    >e? 7mployee /ssessment

    MANAGERIAL FUNCTIONS OF HRM

    &. Planning: Research and plan about wage trends, labour mar#et conditions, union demands andother personnel benefits. +orecasting manpower needs etc.

    '. Organizing: 3rganizing manpower for the achievement of organizational goals and obectives.

    (. Staffing: Recruitment 1 Selection

    *. Directing:

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    4. Se#arations: Managing separations caused by resignations, terminations, lay offs, death, medical

    sic#ness etc.

    CHALLENGES OF HRM IN INDIAN ECONOM!

    $he ob of HRM department in

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    S T R A TE G I C H U M A N R E S O U R C E M A N A G E M E N T

    Strategy:

    Strategy is a way of doing something.

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    Role in Strategy '#leentation: HR Manager helps strategy implementation by supplying competent

    people. /dditionally, HRM facilitates strategy implementation by encouraging proactive thin#ing,

    communicating goals and improving productivity and "uality.

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    H U M A N R E S O U R C E D E V E L O P M E N T

    Human Resource 0evelopment is a process to help people to ac"uire competencies and to increase their#nowledge, s#ills and capabilities for better performance and higher productivity.

    Definition 1:

    HR0 is a process of enhancing the physical, mental and emotional capacities of individuals for

    productive wor#.

    productivity could be achieved through "ualitative growth of people.

    [email protected] growth can also be planned by creating highly inspired groups of employees with high

    aspirations to diversify around core competencies and to build new organizational responses for coping

    with change.

    / proactive HR0 strategy can implement plans directed at improving personal competence and

    productive potentials of human resources.

    +ollowing strategic choices can be considered which would help today)s organizations to survive and

    grow.

    !%ange "anageent: Manage change properly and become an effective change agent rather than being

    a victim of change itself.

    0alues:/dopt proactive HR0 measures, which encourage values of trust, autonomy, proactive approachand experimentation.

    "a,iize Productivity and +fficiency: Maximize productivity and efficiency of the organization byhelping "ualitative growth of people

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    T E A M E F F E C T I V E N E S S

    Definition:

    / team is a small group of people who agree to wor# together for achieving a clear and identifiable set of

    goals.

    eas !an be 0ery +ffective

    $he benefit of teams lie in Synergy which means % $he whole is greater than sum of its parts. $hus, a

    team is able to produce more than the sum of individuals wor#ing separately. / team benefits from

    complementing and some times contrasting abilities of its members. $eams can bring to bear a widerrange of s#ills and experience to solve a problem. $eams often lead to better "uality decisions as

    individual whims and preudices are #ept in chec#. +urther, members of team have an obligation to each

    other and thus there is a moral forceEbinding to perform.

    TEAM EFFECTIVENESS

    +or a team to be effective, following are the prere"uisites

    &. Harmony and trust among the team members

    '. 7ffective leadership(. Shared goals

    *. 0iverse s#ills and experience @ technical, problem solving and interpersonal s#ills

    2. :reativity and ris# ta#ing ability4. +reedom to voice views

    5. /bility to [email protected]

    6.

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    Definition 2:

    HR- is a -rocess, by which an organization ensures that it has the right number of right #ind of peopleat the right place, at the right time, capable of effectively and efficiently completing those tas#s that will

    help the organization achieve its overall obectives.!

    NEED ' IMPORTANCE OF HRP

    Human Resource comes at a cost and generates profits. ;hile excess of human resource will lead to

    unproductive costs, shortages of same will lead to idling of other resources and impede profit generation.Having the people is not enough. 7ach ob needs specific s#ills and experience and only a certain trained

    personnel can do it effectively. $herefore, it is necessary that right #inds of people are hired for each ob.

    -ersonnel re"uirement is never static. Manpower wastages in the organisation #eep ta#ing place regularly

    due to retirement, inury, resignations, termination, etc.

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    HRP PROCESSOrganizational Objectives / Policies:

    3rganizational obectives and policies give a clue to future re"uirement of manpower. / companyplanning expansion would re"uire more manpower in near future. Find of people re"uired would be

    dictated by technology being planned for expansion. HR- needs to align hiring of people with these

    elements.

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    "an#o&erSu##ly Forecasting: $his process measures the number of people li#ely to be availablefrom within and outside the organization after ma#ing allowance for absenteeism, internal movements and

    promotions, wastages, changes in hours and other conditions of wor#.

    Su##ly Analysis covers:

    E06-,? H, R676+HR /udits facilitate analysis of existing employees with s#ills and

    abilities. $he existing employees can be categorized as s#ills inventories >[email protected]? andmanagerial inventories >managers?.

    S#ill inventory would include the followingG

    -ersonal data

    S#ills

    Special ualifications

    Salary

    ob History

    :ompany data

    :apabilities

    Special preferences

    Management inventories would include the following

    ;or# History

    Strengths

    ;ea#nesses

    -romotion -otential

    :areer Coals

    -ersonal 0ata

    Iumber and $ypes of Subordinates supervised

    $otal =udget Managed

    -revious Management 0uties

    'nternal Su##ly Assessent:

    transfers, promotions, separations, resignations, retirements etc.?

    $urnover rate >Io. 3f separations p.a. E /verage employees p.a. J &99?

    :onditions of wor# >wor#ing hours, overtime, etc.?

    /bsenteeism >leaves, absences?

    -roductivity level

    ob movements >ob rotations or cross functional utilizations?

    +,ternal Su##ly Assessent: 7xternal sources are re"uired for following reasons

    Iew blood,

    Iew experiences

    Replenish lost personnel

    3rganizational growth

    0iversification

    7xternal sources can be colleges and universities, consultants, competitors and unsolicited

    applications.

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    SUCCESSION PLANNING

    "eaning of Succession Planning

    Succession planning is the process or activities connected with the filling of #ey positions in the

    organization hierarchy as vacancies arise. Succession planning focuses on identification of futurevacancies and locating the probable successor. +or example in succession planning the #ey concern can be

    who will be next :73 or what will happen if the Mar#eting Manager retires in coming March. Croominga person to fill an important position may ta#e years. Succession planning involves identification of #ey

    positions in the company and then scouting for people who can effectively fill those positions at short

    notice.

    '#ortance of Succession Planning

    &. Succession planning helps when there is a sudden need due to ob hoppingEdeath of serious inury

    to a #ey employee.

    '. $here is little or no set bac# due to absence of #ey employee.(. /cts as a motivator for the individual employee who comes to #now of the impending promotion

    in advance.

    *. Succession planning helps create loyalty towards the organization and improved motivation and

    morale of individual employees.2. 3rganization gains stable wor#force and low employee turnover.

    4. Bltimately organization becomes successful in accomplishing its goals effectively.

    CAREER PLANNING:areer as a concept means a lifelong se"uences of professional, educational and developmental

    experiences that an individual goes through in his wor#ing life.

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    *. :areer counselling underta#en in the context of a realistic understanding of the future

    needs of the firm as well as those of the individual.

    2. /ccelerated promotions with development targeted against the future needs of thebusiness.

    4. -erformance related training and development to prepare individuals for future roles as

    well as current responsibilities

    5. -lanned strategic recruitment not only to fill short term needs but also to provide

    people for development to meet future needs6. $he actual activities by which openings are filled

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    J O B A N A L !S I S

    Definition 1

    ob /nalysis is a process of collecting and studying the information relating to operations and

    responsibilities of a specific ob. $he immediate products of this analysis are Kob 0escription) and KobSpecifications).!

    Definition 2

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    J O B D E S C R I P T I O N

    ob 0escription implies obective listing of the ob title, tas#s, and responsibilities involved in a ob.!

    ob description is a word picture of the duties, responsibilities and organizational relationships that

    constitutes a given ob or position. -7,&. ob 3perational and Managerial?

    2. 3bective4. -rincipal duties and responsibilities

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    J O B S P E C I F I C A T I O N S

    ob Specification involves listing of "ualifications, s#ills and abilities re"uired in an employee to meetthe ob description. $hese specifications are minimum re"uired to do the ob satisfactorily.!

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    J O B E V AL U A T I O N

    ob evaluation is the process of analyzing and assessing various obs systematically to ascertain theirrelative worth in an organization.

    ob 7valuation involves determination of relative worth of each ob for the purpose of establishing wageand salary differentials. Relative worth is determined mainly on the basis of ob 0escription and ob

    Specification only. ob 7valuation helps to determine wages and salary grades for all obs. 7mployeesneed to be compensated depending on the grades of obs they perform. Remuneration must be based onthe relative worth of each ob. not obholders?

    PROCESS OF JOB EVALUATION+

    &. 0efining obectives of ob evaluation

    >a? =enchmar# obs or all obs?

    >b? ;ho should evaluate obD

    >c? ;hat training do the evaluators needD>d? How much time involvedD

    >e? ;hat are the criteria for evaluationD

    >f? Methods of evaluation to be used'. ;age Survey

    (. 7mployee :lassification

    *. 7stablishing wage and salary differentials.

    METHODS OF JOB EVALUATION

    &. Analytical "et%ods

    >a? P7,- R,,? M-76+ 0ifferent factors are selected for different obs with accompanyingdifferences in degrees and points.

    >b? F-7 C7>67, M-7+ $he important factors are selected which can be assumedto be common to all obs. 7ach of these factors are then ran#ed with other obs. $he worthof the ob is then ta#en by adding together all the point values.

    '. *on)Analytical "et%ods

    >a? R,,? M-7+ obs are ran#ed on the basis of their title or contents. Ai#e Managers,

    Supervisors, ;or#ers, -eon, etc. /ll managers whether from production, planning, sales,

    stores or /llied Services >House Feeping? 0eptt are treated e"ual. ob is not bro#en downinto factors etc.

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    PITFALLS OF JOB EVALUATION+

    &. Sometimes encourages employees to manipulate for promotionEinternal placement when there may belimited opportunities for enhancement as a result of downsizing.

    '. office politics? instead of customer orientation

    (. Iot suitable for forward loo#ing organizations, which may have trimmed multiple ob titles into twoor three broad obs.

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    J O B D E S I G N

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    flexibility to the management to reorganise the functional setup ust in case of need li#e

    demand pattern shift or change in business model or any other eventuality. /lso, periodic

    ob rotation is the best method to avoid compartmentalisation of departments. Movementof personnel between departments and first hand #nowledge of limitations and problems

    faced by other departments reduces frictions and leads to better cooperation between them.

    vertical enrichment?, more

    variety of tas#s >horizontal enrichment? and more growth opportunities. $he employee does more

    planning and controlling with less supervision but more [email protected] +or example transferringsome of the supervisor)s tas#s to the employee and ma#ing his ob enriched. /s per Hertzberg,

    who was the father of this term, an enriched ob has eight characteristics

    >a? Direct Feedbac$: 7mployee should be able to get immediate #nowledge of the results they

    are achieving.

    >b? !lient Relations%i#: /n employee who serves a client or customer directly has anenriched ob. $he client can be outside or inside the firm.

    >c? *e& 7earning:/n enriched ob allows its incumbent to feel that he is growing intellectually.

    >d? Sc%eduling O&n -or$: +reedom to schedule own wor# >autonomy? is ob enrichment.>e? 8ni9ue +,#erience: / enriched ob has some uni"ue "ualities or features.

    >f? !ontrol over Resources: 3ne approach to ob enrichment is for the each employee to have

    control over his or her resources and expenses.

    >g? Direct !ounication Aut%ority: /n enriched ob allows wor#er to communicate directlywith people who use his or her output.

    >h? Personal Accountability: /n enriched ob holds the incumbent responsible for the results. He

    or she receives praise for good wor# and blame for poor wor#.

    Probles &it% 5ob +nric% en t

    >a? ob enrichment is not a substitute for good governance. b? ob enrichment may have short term negative effects till the wor#er gets used to the new

    responsibility.

    >c? ob enrichment itself might not be a great motivator since it is [email protected] factor. /s per the

    [email protected] motivation theory, ob enrichment is not enough. d? ob enrichment assumes that wor#ers want more responsibilities and those wor#ers who aremotivated by less responsibility, ob enrichment surely [email protected] them

    >e? ;or#ers participation may affect the enrichment process itself.

    >f? :hange is difficult to implement and is always resisted as ob enrichment brings in a changesthe responsibility.

    *. Autonoous or Self)Directed ea s : 7mpowerment results in [email protected] wor# teams./ [email protected] team is a group of employees responsible for a whole wor# segment. $hey wor#

    together, handle [email protected]@day problems, plan and control, and are highly effective team.

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    J O B S A TI S F AC T I O Nob satisfaction is self satisfaction derived by an employee in doing the ob he has been entrusted to do.

    ob satisfaction is more a function of the various attitudes possessed by an employee towards his ob,related factors and life in general than the ob itself. $he attitudes related to ob may be wages,

    supervision, steadiness, wor#ing conditions, advancement opportunities, recognitions, fair evaluation of

    wor#, social relations on ob, prompt settlement of grievances etc. / person with a #ind heart will findhigh level of ob satisfaction in wor#ing with some agency involved in charitable wor# though the salary

    might be relatively less. /n over ambitious person will never find the ob satisfaction.

    machine, operating room, doc#, etc.? to observe its

    state >wor#ing, idle, sleeping, empty, etc.?. ;hen enough samples are ta#en, an analysis of theobservations yields a statistically valid indication of the states for each thing analyzed.

    /ssume, for example, that you wish to determine the proportion of time a factory operator is wor#ing or

    idle. /lso assume that '99 random observations were made of the operator and during '* of these he or

    she was observed to be idle. +rom the random samples of his state you conclude that the individual iswor#ing &54E'99 N 66O of the time.

    ADVANTAGES OF %OR& SAMPLING

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    =efore we set out to analyse the distinctions between wor# sampling and time studies, let us understand

    that the two are as different as chal# and cheese. $he purpose of each is different and one can not besubstituted by the other in most cases. ;hile wor# sampling is a broad analysis of trend, time study is

    microanalysis of the ob and procedure. $ime study is conducted with a view to improve the

    processEmethod where as wor# sampling is done to improve "uantitative utilisation of resources.

    ;or# sampling is relatively cheaper because it uses random samples instead of continuous

    observations. Many operators or machines can be studied by a single observer

    ;or# sampling normally spans over several days or wee#s, thus minimizing the effects of sudden

    variations on a particular day.

    ;or# Sampling tends to minimize operator behaviour modification during observation >operator,

    deliberately or otherwise, under or over performing while under observation?.

    ;or# Sampling, in general, does not re"uire a trained [email protected] analyst to ta#e the observations.

    /lso, stopwatches or other timing devices are not re"uired. Many studies ma#e use of [email protected]

    technicians or operators to ta#e the observations.

    %OR& SAMPLING METHODOLOG!

    /n analyst R/I03MAP observes an activity >e"uipment, operating room, production line? and notes theparticular states of the activity at each observation.

    $he ratio of the number of observations of a given state of the activity to the total number of observationsta#en will approximate the percentage of time that the activity is in that given state.

    Randomness of observations is very critical for a wor# sampling study. $he observations should vary

    over the time of the day, days of the wee# and if possible, months to get he correct trend.

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    R E C R U I T M E N T

    Definition:

    Recruitment is the process of finding and attracting capable applicants for a ob to create a pool from

    which selection is to be made of the most suitable candidates!.

    $he -rocess begins when new recruits are sought and ends when their applications are submitted. $houghtheoretically recruitment process is said to end with the receipt of applications, in practice, the activityextends to the screening of applications so as to eliminate those who are not "ualified for the ob. $he

    result is a pool of applicants from which selections for new employees are made.!

    PURPOSE AND IMPORTANCE

    &. $o broad base the applicant pool in order to get the right talent at the affordable cost.'. i? -resent employees>ii? 7mployee referrals

    >iii? $ransfers 1 -romotions

    >iv? +ormer 7mployees>v? -revious /pplicants

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    +,ternal Recruitent 3Source 24

    >i? -rofessionals or $rade /ssociations

    >ii? /dvertisements>iii? 7mployment 7xchanges

    >iv? :ampus Recruitment

    >v? ;al#@ins vi? :onsultants

    >vii? :ontractors>viii? 0isplaced -ersons

    >ix? Radio 1 $elevision>x? /c"uisitions 1 Mergers

    >c? :ompetitors

    >d? $echnological tools to be used for advertising>e? ;here to loo#

    >f? How to loo#

    2 Recruitent Planning

    >a? Iumber of applicants sought >=ased on past experience?>b? $ypes of applicants to be called >ualification, category, area, etc?

    Searc%ing>a? Source activation>b? Selling

    ; Screening of A##lications

    a? Salary :ost

    >b? Management 1 -rofessional $ime spent

    >c? /dvertisement :ost>d? -roducing Supporting literature

    >e? Recruitment 3verheads and 7xpenses

    >f? :ost of 3vertime and 3utsourcing

    >g? :onsultant)s fees

    EVALUATION OF RECRUITMENT PROCESS

    &. Return rate of each source of recruitment

    '. Selection rate from each source

    (. Retention and -erformance of selected candidates*. Recruitment :ost

    2. $ime lapsed data

    4.

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    EXTERNAL RECRUITMENT

    A=,-?6 D6=,-?6

    &. =enefits of new s#ills, talents and

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    S E L E C T I O N

    MEANING OF SELECTION

    Selection is the process of pic#ing up individuals >out of the pool of ob applicants? with re"uisite"ualifications and competence to fill obs in the organization. / formal definition of Selection is as under

    Selection is the process of differentiating between applicants in order to identify and hire those with agreater li#elihood of success in a ob.!

    RECRUITMENT V6 SELECTION+ DIFFERENCER-,- S8-7,

    &. Recruitment refers to the process ofidentifying and encouraging people

    with re"uired "ualifications to apply for

    ob.'. Recruitment is said to be positive in its

    approach as it see#s to attract as manycandidates as possible.

    &. Selection is concerned with pic#ing upthe right candidates from a pool of

    applicants.

    '. Selection on the other hand is negativein its application in as much as it see#s

    to eliminate as many un"ualifiedapplicants as possible in order toidentify the right candidates.

    PROCESS : STEPS IN SELECTION

    &. Preliinary 'ntervie& : $his is a short interview. $he purpose of preliminary interviews is to

    weed out the prima facie misfit applicants.

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    4. P%ysical +,aination : /fter the selection decision is made, the candidate is re"uired to

    undergo a physical fitness test. / ob offer is often contingent upon the candidate passing the

    physical examination.5. 5ob Offer : $he next step in selection process is ob offer to those applicants who have

    successfully passed all tests.

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    T R A I N I N G ' D E V E L O P M E N T

    $raining and development, though are spo#en in the same breadth, are "uite different. $raining generallyrefers to teaching of new s#ill in professional field of the employee. Ai#e an employee being taught to

    operate another machine, or to perform a new operation in the same machine. 0evelopment refers to

    enhancement of personal "ualities of the employee which do not have a one to one relationship with hiscurrent ob.

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    TRAINING AND DEVELOPMENT+ DIFFERENCE

    T,,? D=87>,-

    $raining is s#ills focused 0evelopment is creating learning abilities

    $raining is presumed to have a formal

    education

    0evelopment is not education dependent

    $raining needs depend upon lac# or

    deficiency in s#ills

    0evelopment depends on personal drive

    and ambition$rainings are generally need based 0evelopment is voluntary

    $raining is a narrower concept focused onob related s#ills

    0evelopment is a broader concept focusedon personality development

    $raining may not include development 0evelopment includes training wherevernecessary

    $raining is aimed at improving ob relatedefficiency and performance

    0evelopment aims at overall personaleffectiveness >including ob efficiencies?

    IDENTIFICATION OF TRAINING NEEDS

    'ndividual raining *eeds 'dentification

    &. -erformance /ppraisals'.

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    communication. Io authentic feedbac# mechanism. Ai#ely to lead to boredom for

    employees.

    '. A7V68+ - A I,6--7,6+

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    I N D U C T I O N ' O R I E N T AT I O N

    Structure?

    (. 0aily ;or# Routine

    *. 3rganization -rofile, History, 3bectives, -roducts and Services, etc

    2.

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    M U L TI S & I L L I N GDefinition

    [email protected]#[email protected] the ability of an employee to perform more than one function or the [email protected] of anemployee in several disciplines or tas#s.

    [email protected]#illing is training of an employee to be able to do more than one ob with e"ual dexterity.

    [email protected]#illing is immensely beneficial to any organisation. /part from flexibility to redeploy man power

    as per changing needs, it also #eeps the labour costs low. Many complex obs re"uire different s#ills toaccomplish though involvement of each s#ill may be for very short duration. $hus, in absence of [email protected]#illed wor#ers, the team becomes very large and there is inade"uate utilisation of team members. =ut, if

    the team members are [email protected]#illed, team size can be #ept small and thus the labour cost in minimised.

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    C H A N G E M A N A G E M E N T

    Change Management is a Critical HR Professional Skill

    Definitions:

    1. The adoption of a new idea or behaviour by an organization.

    '. /lterations in -eople, Structure and $echnology

    :hange has become inevitable due to @

    >a? $echnology

    >b? :ompetition>c? Crowing customer needs

    >d? 7nvironment

    >e? -oliticsHRs role in the change process is to help forecast future changes, develop systems and policies for

    managing human capital before, during & after the change.

    :hange can be classified as follows @

    Structural !%anges ec%nological !%anges Peo#le !%anges

    /uthority

    :oordination:entralization

    -rocesses

    Methods7"uipments

    /ttitudes

    7xpectations=ehaviours

    INTERNAL FORCES OF CHANGE&. :orporate Strategies

    '. ;or#place(. $echnology and 7"uipments

    *. 7mployee /ttitudes

    CHANGE AGENTS (%HO CAN BRING ABOUT CHANGE*)&. Managers

    '. 7xternal :onsultants

    (. Staff Specialists

    PROCESS OF CHANGELewins Three-Step Procedure of Change

    &. Bnfreeze present level of behaviour'. Movement from present to new

    (. Refreezingprocess

    Kotters Change Management Model

    1. Unfreeze

    2. Establish Sense of Urgency

    3. Form Powerful Guiding Coalition

    4. Create the Vision

    5. Communicate the Vision

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    RESISTANCE:BARRIERS TO CHANGE1. Fear of uncertainty or unknown

    2. Fear of economic loss

    3. Social pressures/peer pressure

    4. Perceived inconveniences

    5. Fear of loss of power

    6. Need for new styles/skills/knowledge7. Resistance from groups

    8. Organisational culture

    9. Feeling of insecurity

    10. Lack of incentives

    TECHNIUES OF REDUCING RESISTANCE1. Education through communication

    2. Participation of affected people from beginning rather than at the end. Making the potential

    hardliners a member of the committee designing the change.3. Facilitation through support to people to overcome the blues of change

    4. Negotiation Give and take attitude

    5. Manipulation co-option

    6. Explicit or implicit coercion

    Mixed strategies are used to overcome change

    FOUR PHASES OF TRANSITION OLD TO NE%

    1. Denial

    Diagnosis: Common to observe withdrawal; focusing on the past; increased activity

    with reduced productivity.

    Management: Confront with information; reinforce reality of change; explain what they

    can do; give them time.

    2. Resistance

    Diagnosis: Anger, blame, depression, resentment, continued lack of productivity.

    Management: Listen, acknowledge feelings, be empathetic; help people to say good by to

    the old; sometimes ritual is important. Offer rewards for change, be

    optimistic.3. Exploration

    Diagnosis: Confusion, chaos; energy; new ideas; lack of focus.

    Management: Facilitate brainstorming, planning, help people to see opportunity, create

    focus through short term wins.

    4. Commitment

    Diagnosis: Enthusiasm & cooperation; people identify with organization; look for new

    challenges.

    Management: Set long term goals; reward those who have changed.

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    (. ob Redesign, especially when processes change, obs merging, and relocation happens

    *. 7mployee :ounselling

    2. $ime management programs for employees

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    CREATING CHANGE FOR IMPROVEMENT AND COMPETITIVE

    ADVANTAGE

    :hange creates opportunities, but only for those who recognize and seize it. Seeing is the first step,

    seizing the second, and continuously innovating is the third.

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    P E R F O R M A N C E A P P R A I S A L S

    %HAT IS PERFORMANCE APPRAISAL*

    -erformance /ppraisals is the assessment of individual)s performance in a systematic way. a? G,8 >67,8-/such as initiative, leadership "ualities, dependability, team spirit, etc.

    >b? P7667,8 8-6li#e ob #nowledge, "uality and "uantity of output, versatility andso on.

    +actors vary from organization to organization and ob to ob. +or a soldier, courage and endurance are

    more important factors. =ut for the /rmy Ceneral, his tactical abilities are more important. 3n the otherside, a foreman in a factory would never be assessed for his courage. /ssessment is often not confined to

    past performance but chec#s for potential performance also. $he second definition brings in focus

    behaviour because behaviour affects not only employee)s performance but even his peers) andsubordinates).

    Definition 1+ 68

    0escribes the wor# and

    personnel re"uirement of aparticular ob

    $ranslate ob re"uirements

    into levels of acceptable orunacceptable performance

    0escribe the individual)s

    past performance, suitabilityand potential.

    Objectives: -erformance appraisals are used as a basis for following activities @&. -romotions

    '. :onfirmations

    (. $raining and 0evelopment program planning*. :ompensation reviews

    2. :ompetency building

    4. 7valuation of HR -rograms

    5. +eedbac# 1 Crievances

    PERFORMANCE APPRAISAL PROCESS&. Setting 3bectives and Standards of performance'. 0esign an appropriate appraisal program % /ppraisal program for different levels of employees would

    be different.

    (. -erformance

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    TECHNIUES : METHODS OF PERFORMANCE APPRAISALS

    Iumerous methods have been devised to measure the "uantity and "uality of performance appraisals.7ach of the methods is effective for a particular class of employees in certain types of organization only.

    =roadly all methods of appraisals can be divided into two different categories.

    -ast 3riented Methods +uture 3riented Methods

    PAST ORIENTED METHODS&. R-,? S86+ $his is simplest and most popular method. Rating scales consist of grading an

    employee)s past performance on a scale of say & @&9. 7ach of the selected performance attribute is

    numerically mar#ed and then totalled to arrive at the final figure. /dvantages % /daptability, easy to use,low cost, every type of ob can be evaluated, large number of employees covered, no formal training

    re"uired. 0isadvantages % Rater)s biases.

    '. C86-+ Bnder this method, chec#list of Statements of $raits! of employee in the form of Pes or

    Io based "uestions is prepared. Here, the rater only does the reporting or chec#ing and HR departmentdoes the actual evaluation. /dvantages % economy, ease of administration, limited training re"uired,standardization. 0isadvantages % Rater)s biases, use of improper weights by HR 0eptt, does not allow

    rater to give relative ratings.

    (. F7 D6-;-7, M-7+ 3ne of the problems faced in large organizations is relativeassessment tendencies of raters. Some are too lenient and others too severe. $his method overcomes that

    problem.

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    2. F8 R= M-7+ $his method is useful only for senior positions in a large organisation

    spread over cities and countries. /ppraisal is done by someone outside employees) own departmentusually from corporate or HR department. /dvantages % Bseful for managerial level promotions, when

    comparable information is needed, on employees wor#ing at distant locations in different set of

    conditions. 0isadvantages % 3utsider is generally not familiar with employees) wor# environment,

    3bservation of actual behaviours not possible.

    4. P7, T6-6 ' O;6=-7,6+ $his is based on the test of #nowledge or s#ills. $he testsmay be written or an actual presentation of s#ills. $ests must be reliable and validated to be useful.

    /dvantage % $ests only measure potential and not attitude. /ctual performance is more a function ofattitude of person than potential. 0isadvantages % Some times costs of test development or administration

    are high.

    5. C7,,-8 R>7-6+ $hough popular with government departments, its application in industry is

    not ruled out. Here the report is given in the form of /nnual :onfidentiality Report >/:R?. $he system is

    highly secretive and confidential. +eedbac# to the assessee is given only in case of an adverse entry.

    0isadvantage is that it is highly prone to biases and recency effect and ratings can be manipulated becausethe evaluations are lin#ed to future rewards li#e promotions, good postings, etc.

    6. E66/ M-7+

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    0isadvantages % /pplicable only to "uantifiable obs. [email protected] goals given preference at the cost of

    [email protected] goals etc.

    '. P6/787?8 A>>686+ $hese appraisals are more directed to assess employees potential for

    future performance rather than the past one.

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    (. Bniformity of appraisals

    *. $rained Raters

    2. Bse of relevant rating tools or methods4. Should be based on ob analysis

    5. Bse of obectively verifiable data

    6. /void rating problems li#e halo effect, central tendency, leniency, severity etc.

    8. :onsistent 0ocumentations maintained

    &9. Io room for discrimination based on cast, creed, race, religion, region etc.

    Probles of Rating:&. Aeniency 1 Severity % 7ither too lenient or too severe. /ll good or all bad.

    '. :entral $endency % Maority is crowded around average.(. HaloECholem 7ffect % 7ntire assessment is affected by one or few aspects.

    *. Rater 7ffect % +avouritism, stereotyping, hostility, etc, #ind of biases.

    2. -rimacy 1 Recency 7ffect % 7arly period or near end period behaviour effects.4. -erceptual Sets % 7ffects of old beliefs about groups, regions, groups, etc

    5. [email protected] 7ffects % 7ffects of previous appraisal affecting recent appraisal

    6. Status 7ffect % High esteemed or low esteemed ob bearing on the appraisal.

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    H U M A N R E S O U R C E A U D I T

    NATURE OF HR AUDITHR /udit is a tool for evaluating the personnel activities of an organization. $he audit may include one

    division or entire company.

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    APPROACHES TO HR AUDIT&. :omparative /pproach >=enchmar#ing with another company?

    '. 7xternal /uthority /pproach >3utside consultants) standards?(. Statistical /pproach >Statistical measures and tools?

    *. :ompliance /pproach >Aegal and company policies?

    2. Management =y 3bectives /pproach >Coals 1 3bectives based?

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    M O T I V A T I O N T H E O R I E S

    -erformance is a function of ability and motivation. - N f >/ x M?

    Definition:

    Motivation is a set of forces that cause internal desire in people to behave in certain ways.

    MOTIVATION PROCESS ( STEPS)&.

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    Huan Relations "odel 3+lton "ayo4: 7lton Mayo)s human relations model, developed through

    Hawthorne Studies, stressed on social contacts as motivational factor. Creater importance was given to

    informal groups. However, too much reliance on social contacts to improve productivity was a maordrawbac#.

    CONTEMPORAR! THEORIES

    C7,-,- T76 >Maslow)s Ieed Hierarchy, Hertzberg)s '@factors, /lderfer)s 7RC, /chievement

    Motivation $heory?

    P766 T76 >Lroom)s expectancy, /dam)s 7"uity, -orter)s -erformance and Satisfaction Model?

    R,7,- C-?76 (ERG T7/ (A8) E06-, R8-,66 G7-)

    7RC theory emphasizes more on three broad needs that is 7xistence, Relatedness and Crowth.

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    M O R A L E

    Definition 1:

    Morale is a mental condition or attitude of individual and groups, which determines their willingness to

    [email protected]

    Definition 2:

    Morale is attitudes of individuals and groups towards their wor# environment and towards voluntary

    cooperation to the full extent of their ability in the best possible interest of the organization.

    Morale can be said to be a combination of satisfaction, happiness and enthusiasm.

    0istinction between Morale and Motivation @

    M78 M7-=-7,

    &. :omposite of feelings, attitudes and

    sentiments that contribute towards generalsatisfaction at wor#place.

    '. / +unction of freedom or restraint towards

    some goal.

    (.

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    P E R S O N N E L P O L I C I E S

    MEANING OF PERSONNEL POLIC!

    / -olicy is a -lan of /ction.

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    U N I O N S

    7mployee associations are popularly #nown as unions. /lthough they have become synonymous withstri#es and unreasonable demands, their role is much wider than this. Bnions ma#e their presence felt in

    recruitment and selection, promotions, training, termination or lay off. Many programs, which contribute

    to the uality of ;or# Aife >;A? and productivity, are underta#en by management in consultation withand with the cooperation of the unions. Bnions also participate in deciding wage and salary structure and

    negotiate revisions once in ( or 2 years.

    $rade unions are voluntary organizations of wor#ers or employers formed to promote their interests

    through collective action. $rade unions /ct &8'4 defines a trade union as a combination, whether

    temporary or permanent formed primarily for the purpose of regulating the relation between&. ;or#men and 7mployers

    '. ;or#men and ;or#men

    (. 7mployers and 7mployers

    +or imposing restrictive conditions on the conduct of any trade or business and includes any federation oftwo or more trade unions

    %H! DO EMPLO!EES JOIN TRADE UNIONS*

    &. $o protect themselves against exploitation by management'. =y force

    (. 0issatisfaction

    *. Aac# of -ower 2. Bnion

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    UNFAIR LABOR PRACTICES

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