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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 2

HRM is concerned with the people dimensions in management. Since every organization is made up of

people, acuiring their services, developing their s!ills, motivating them to higher levels of performanceand ensuring that they continue to maintain their commitment to the organization are essential to

achieving organizational ob"ectives. #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 ob"ectives, whetherit is profit ma!ing or charity or social agenda.

'. Societal Objectives: #o be responsive to the needs and challenges of the society while

minimizing 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 maintain

employee performance and satisfaction for the purpose of maintaining, retaining and motivating theemployees 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 Selection2. 3rientation 1 -lacement4. #raining 1 0evelopment

5. -erformance /ppraisals

6. ob 7valuation

8. 7mployee and 7xecutive Remuneration&9. Motivation

&&. :ommunication

&'. ;elfare&(. Safety 1 Health

&*.

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ROLE OF HRM

&. Advisory Role: HRM advises management on the solutions to any problems affecting people,

personnel policies and procedures.

=a> P67,,8 P786+ 3rganization Structure, Social Responsibility, 7mployment #erms 1:onditions, :ompensation, :areer 1 -romotion, #raining 1 0evelopment and P67,,8 P76+ Relating to manpower planning procedures, recruitment and

selection procedures, and employment procedures, training procedures, managementdevelopment procedures, performance appraisal procedures, compensation procedures,

industrial relations procedures and health and safety procedures.

'. Functional Role: #he personnel function formulates personnel policies in accordance with the

company)s doctrine and management guidelines.

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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 3b"ectives =(> =a> Aegal :ompliance

=b> @enefits=c> Bnion Management

Relations

3rganizational 3b"ectives =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 3b"ectives =(> =a> -erformance /ppraisals

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

-ersonal 3b"ectives =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 ob"ectives.

(. 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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4. Rene%ed Peo"le Focus: @Man behind the machine is most important than the machine%. #his is

an old doctrine of the /rmed +orces. However, this doctrine has begun to gain acceptance in the corporate

world and thus all out efforts to grab the best talent at what ever cost.

5. !anaging t$e !anagers: Managing the managers is most difficult. /rmed with inside

information, they can not be lured with rosy promises. #hey are in great demand too with growth ineconomy. #hese are the people who are most mobile, attrition rate being highest for the "unior and middle

management level. #he challenge of HRM is how to manage this tribeD

6. ,ea#er Section-s &nterests: /nother challenge for HRM is to protect the interest of wea!ersections of society. #he dramatic increase of women wor!ers, minorities and other bac!ward communities

in the wor!force, coupled with wea!ening of trade unions, has resulted in the need for organizations to re?

examine their policies, practices and values.

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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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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 acuire competencies and to increase their!nowledge, s!ills and capabilities for better performance and higher productivity.

Definition .:

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.

Aong?term 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 !anagement: Manage change properly and become an effective change agent rather than being

a victim of change itself.

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

!a+imize 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.

0eams an be /ery *ffective1

#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 pre"udices 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 prereuisites

&. 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 self?correct

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 ob"ectives.%

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 reuirement is never static. Manpower wastages in the organisation !eep ta!ing place regularly

due to retirement, in"ury, resignations, termination, etc.

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HRP PROCESSOrganizational Objectives Policies:

3rganizational ob"ectives and policies give a clue to future reuirement of manpower. / companyplanning expansion would reuire more manpower in near future. Find of people reuired would be

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

elements.

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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 =non?managers> and

managerial 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 Assessment:

#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 Assessment: 7xternal sources are reuired 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.

SUCCESSION PLANNING

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!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 future

vacancies and locating the probable successor. +or example in succession planning the !ey concern can bewho will be next :73 or what will happen if the Mar!eting Manager retires in coming March. Crooming

a person to fill an important position may ta!e years. Succession planning involves identification of !eypositions in the company and then scouting for people who can effectively fill those positions at short

notice.

CAREER PLANNING:areer as a concept means a lifelong seuences of professional, educational and developmental

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

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J O B A N A L !S I S

Definition .

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).%

PURPOSE OF JOB ANAL!SIS+

Human Resource Planning 3HR P4 : ob analysis helps in determining staffing needs, type,

uality and uantity.

Recruitment Selection : Fnowing the staffing needs is essential for Recruitment and

Selection $ Right person for each "ob. Sourcing of recruits also becomes easy and cost effective

0raining Develo"ment : ob analysis is the !ey to determining #raining and 0evelopment

programs.

5ob *valuation : ob evaluation means determination of relative worth of each "ob for the

purpose of establishing wage and salary. #his is possible with the help of "ob description and

specificationsG i.e. ob /nalysis.

Remuneration : ob analysis also helps in determining wage and salary for the "obs.

Performance A" "r aisal : ob analysis helps in fixing the bench mar!s of performance standards

which in turn help in ob"ective -erformance appraisal, rewards, promotions, etc.

Safety Healt$ : ob /nalysis helps to uncover hazardous conditions and unhealthyenvironmental factors so that corrective measures can be ta!en to minimize and avoid possibility

of human in"ury.

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

ob 0escription implies ob"ective 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

2. 3b"ective4. -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 reuired in an employee to meetthe "ob description. #hese specifications are minimum reuired 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.

PROCESS OF JOB EVALUATION+

&. 0efining ob"ectives of "ob evaluation

=a> ;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 eual. 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.

'. 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 N87/. B,-6 -7 - C7>,/+ Such cross functional !nowledge of employees provides the

company with a fall bac! option in case of absence of any employee.

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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.

, more

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

planning and controlling with less supervision but more self?evaluation. +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 uniue 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 ommunication 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!.

Problems %it$ 5ob *nric$m en t

=a> ob enrichment is not a substitute for good governance. ;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.

*. Autonomous or Self(Directed 0ea ms : 7mpowerment results in self?directed wor! teams./ self?directed team is a group of employees responsible for a whole wor! segment. #hey wor!

together, handle day?to?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.

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 reuire a trained time?study analyst to ta!e the observations.

/lso, stopwatches or other timing devices are not reuired. Many studies ma!e use of off?shift

technicians or operators to ta!e the observations.

%OR& SAMPLING METHODOLOG!

/n analyst R/I03MAP observes an activity =euipment, 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.'.

(. Size of the 3rganization =@igger the size lesser the recruitment problems>

*. :ost2. Crowth and 7xpansion -lans

RECRUITMENT PROCESS

.1 Recruitment Strategy Develo"ment=a> #rained or untrained =to be trained at company)s expense>=b> -resent employees=ii> 7mployee referrals

=iii> #ransfers 1 -romotions

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

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*+ternal Recruitment 3Source 24

=i> -rofessionals or #rade /ssociations

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

=iv> :ampus Recruitment

=v> ;al!?ins :onsultants

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

=ix> Radio 1 #elevision=x> /cuisitions 1 Mergers

21 Recruitment Planning

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

1 Searc$ing

=a> Source activation

=b> Selling

;1 Screening of A""lications

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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'. @enefits of new experiences

(. :ompliance with reservation policybecomes easy

*. Scope for resentment, "ealousies, and

heartburn are avoided.

associated with internal recruiting is

denied'.

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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 reuisiteualifications 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 reuired 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 unualifiedapplicants as possible in order toidentify the right candidates.

PROCESS : STEPS IN SELECTION

&. Preliminary &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 *+amination : /fter the selection decision is made, the candidate is reuired 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 on"ob 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 0raining )eeds &dentification

&. -erformance /ppraisals'.

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On t$e 5ob 0rainings 3O504: ;hen an employee learns the "ob in actual wor!ing site in real life

situation, and not simulated environment, it is called 3#. 7mployee learns while wor!ing. #a!e theinstance of roadside mechanics. Small boys wor!ing there as helpers learn while helping the head

mechanic. #hey do not learn the defect analysis and engine repairing s!ills in any classroom on engine

models.

Disadvantages of On(t$e(5ob 0raining:&. #rainer may not be experienced enough to train or he may not be so inclined.

'. !et$ods

&. J7; R7--7,+ Refer page '5.

'. J7; C7,?+ /n experienced employee can give a verbal presentation to explain thenitty?gritty)s of the "ob.

(. J7; I,6--7,+ ,-6>6+ Cenerally fresh graduates are put under the experienced employee to

learn the functions of "ob.

2. I,-,6>6 , A666-,-6>6+

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*. C6 S-6+

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

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more applicable to high positions who may have been hired with a view to bring in their

experiences and methods of management to the organisation.

Ho% long s$ould t$e induction "rocess ta#e?

3ther sub"ects may be incorporated with refresher training for current staff,or handled as participant in an outside program. -erhaps some can wait until there are groups of people

who have started in the last few months.

#his may ta!e some creative thin!ing, but the answer is uite simple ? until the new people are integrated,

they are less useful. #he mathematics of

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

Multi?S!illing? the ability of an employee to perform more than one function or the cross?training of anemployee in several disciplines or tas!s.

Multi?S!illing is training of an employee to be able to do more than one "ob with eual dexterity.

Multi?S!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 reuire different s!ills toaccomplish though involvement of each s!ill may be for very short duration. #hus, in absence of multi?s!illed wor!ers, the team becomes very large and there is inadeuate utilisation of team members. @ut, if

the team members are multi?s!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 $anges 0ec$nological $anges Peo"le $anges

/uthority

:oordination:entralization

-rocesses

Methods7uipments

/ttitudes

7xpectations@ehaviours

INTERNAL FORCES OF CHANGE&. :orporate Strategies

'. ;or!place(. #echnology and 7uipments

*. 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. 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 .+

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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

reuired. 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 reuired,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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conditions. 0isadvantages $ 3utsider is generally not familiar with employees) wor! environment,

3bservation of actual behaviours not possible.

2. 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 of

attitude of person than potential. 0isadvantages $ Some times costs of test development or administration

are high.

4. 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 ishighly 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 because

the evaluations are lin!ed to future rewards li!e promotions, good postings, etc.

5. E66/ M-7+

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emotional, intellectual, and motivational and other personal characteristics affecting his performance. #his

approach is slow and costly and may be useful for bright young members who may have considerable

potential. However uality of these appraisals largely depends upon the s!ills of psychologists whoperform the evaluation.

(. A6666,- C,-6+ #his techniue was first developed in BS/ and BF in &8*(. /n

assessment centre is a central location where managers may come together to have their participation in

"ob related exercises evaluated by trained observers.

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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 3b"ectives /pproach =Coals 1 3b"ectives 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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Human 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 ma"ordrawbac!.

CONTEMPORAR! THEORIES

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

Motivation #heory>

P766 T76 =Lroom)s expectancy, /dam)s 7uity, -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 .:

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

co?operate.

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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(. *conomic Decisions: Methods of manufacturing, automation, lay offs, shut?downs, mergers and

acuisitions and other financial aspects.

METHODS OF %OR&ERS PARTICIPATION IN MANAGEMENT

&. @oard Aevel'. 3wnership =share allocation>

(. :omplete :ontrol*. Staff :ouncils

2. oint :ouncils4. :ollective @argaining

5. ob 7nlargement and 7nrichment

6. Suggestion Schemes8. uality :ircles

&9. 7mpowered #eams

&&. #otal uality Management&'. +inancial -articipation

BENEFITS OF PARTICIPATION

&. Cives identity to an employee'. Motivates employee

(. Self?esteem, "ob satisfaction and cooperation improves

*. Reduced conflicts and stress between Management and wor!ers

2. More commitment to goals4. Aess resistance to change

5. Aess labour problems

6. @etter uality suggestions expected

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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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O R G A N I A TI O N A L D O % N S I I N G

0ownsizing necessarily means reducing wor! force to an optimal level depending upon the businessconditions and organizational needs.