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HUMAN RESOURCE MANAGEMENTA QUICK REVISION FOR NET/GSET EXAMINATIONS

Anuj Bhatia [BBA, M.Com, Ph.d (pur), UGC NET, GSET]Shah Tuition ClassesContact: avbhatia_anuj@yahoo.com, 9898251471

CONCEPT OF HRM• Human Resource- “the total knowledge, skills,

creative abilities, talents and aptitudes of an organization's workforce, as well as the value, attitude and beliefs of the individual involved”

• Human Resource Management- “ HRM means employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and organizational requirements with a view to contribute to the goals of the organisation, individual and society.” 2

FUNCTIONS OF HRM

1. Managerial Functionsi. Planning ii. Organizingiii. Directingiv. Controlling

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2. Operative Functions1. Employment

1. Job Analysis2. Human Resource Planning3. Recruitment4. Selection5. Placement6. Induction and Orientation

2. Human Resource Development1. Performance Appraisal2. Training3. Management Development4. Career Planning and Development5. Internal Mobility6. Transfer7. Promotion8. Demotion9. Retention and Retrenchment10. Change and Organisational Development

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3. Compensation1. Job Evaluation2. Wage and salary administration3. Incentives4. Bonus5. Fringe benefits6. Social security Measures

4. Human Relations5. Industrial Relations

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ROLE OF HRM HR in the nations well-being Man vis-à-vis Machine HRM and General Management HR system is a central Sub-system

Social Significance Professional Significance Significance for Individual enterprise

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ANSWER: (D) All Employees

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ANS: (A) Development Function

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ANS: (C) Procurement

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ANSWER: (A) Development

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HUMAN RESOURCE PLANNING• HRP means deciding the number and types

of HR required for each job, unit and the total company for a particular future date in order to carry out organizational activities.

• Coleman defines HRP as “ the process of determining manpower requirements and the means for meeting those requirements in order to carry out the integrated plan of the organisation.”

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BENEFITS OF HRP• Checks the corporate plan of the organization• Offsets uncertainty and change• Provides scope for advancement through training

and development• Anticipate the cost of HR and formulation of

Budgets• To plan for physical facilities, working conditions

etc• Development of HR to meet organizational needs• To meet the HR requirements in case of high

turnover• Needed to identify the areas of surplus personnel17

FACTORS AFFECTING HRP

Government policies Economic development

and supply of HRs Business Environment Information

Technology Levels of Technology Natural Factors International Factors

Company’s strategies HR policy of the

company Formal and Informal

Groups Job Analysis Time Horizons Type and Quality of

Information Companies production

and operation policy Trade Unions

External Factors Internal Factors

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PROCESS OF HRP1. Deciding the objectives2. Estimating future organizational structure

and manpower requirements3. Auditing HR4. Planning job requirements and job

descriptions5. Developing a HRP

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JOB ANALYSIS• JA is a procedure by which pertinent information is

obtained about a job, i.e., it is a detailed and systematic study of information relating to the operations and responsibilities of a specific job.

• Contents of JA:• Job identification• Significant characteristics of a job• What the typical worker does• Which equipment and materials a worker uses• How a job is performed• Required personnel attributes

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JOB DESCRIPTION• JD describes ‘jobs’ and not ‘job holders.’• JD is a descriptive document• It contains statement of JA• Provides organizational and functional

information.• It defines the scope of job activities, major

responsibilities, and positioning of the job in the organisation.

• It must provide worker and supervisor with a clear idea of what the work must do to meet the demands of the job.

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Contents of a JD:1. Job identification or organizational position2. Job summary3. Job duties and responsibilities4. Relation to other5. Supervision6. Machine, tools and equipment7. Working conditions8. Hazards

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JOB SPECIFICATION• “what traits and experiences are required to the

job well?”• JS tells what kind of person to recruit and for what

qualities that person should be tested.• JS translates the JD in terms of the human

qualifications which are required for a successful performance of a job.

• These Specifications are related to:– Physical characteristics– Psychological characteristics– Personal characterizes or traits– Responsibilities– Other features of Demographic nature

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ANSWER- (A) ORGANISATIONAL CHART

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RECRUITMENT• Flippo – “ Recruitment is the process of searching

for prospective employees and stimulating them to apply for jobs in the organisation.”

• Objectives:– To attract people with multidimensional skills and

experiences– To infuse fresh blood in the organisation– To attract competent people– To search for talent globally– To anticipate and find people for positions that do not

exists

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SOURCES OF RECRUITMENTTRADITIONAL SOURCES

Present employees Retrenched or Retired

employees Dependents of

Deceased, Disabled, Retired and present employees

• Campus recruitment• Private Employment

Agencies/ Consultants• Public employment

exchange• Professional

associations• Data Banks• Casual Applicants• Similar Org./Competitors• Trade Unions

Internal External

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MODERN SOURCES

Employee Referrals Walk-in Consult in Head Hunting Body Shopping M & A Tele- Recruitment Outsourcing

Internal External

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FACTORS AFFECTING RECRUITMENT

• Companies pay packages• Quality of work life• Organization culture• Career planning and

Growth• Company’s size• Companies Products/

Services• Location• Companies Growth Rate• Role of Trade Union• Cost of Recruitment• Companies name and fame

• Socio-economic Factors• Supply and Demand

Factors• Employment rate• Labour Market

Conditions• Political, Legal and Govt.

Factors• Information System like

Employment Exchanges/ Tele-Recruitment like internet

Internal Factors External Factors

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SELECTION

The function of selecting the right employees at right time

To choose the individual who can most successfully perform the job from the pool of qualified candidates.

JA, HRP and Recruitment are necessary prerequisites of selection.

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PROCESS OF SELECTION1. Job Analysis2. Recruitment3. Application Blank4. Written Examination5. Preliminary Interview6. Business Games7. Tests8. Final Interview9. Medical Examination10. Reference Checks11. Line Managers Decisions12. Job offer13. Employment 32

TYPES OF TESTS• Aptitude Test

– Intelligence test– Emotional Quotient– Skill Tests– Mechanical aptitude– Psychomotor test– Clerical Aptitude Test

• Achievement Test– Job Knowledge Test– Work Sample Test

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• Situational Tests– Group Discussion– In Basket

• Interest Test• Personality Test

– Objective test– Projective test

• Other Tests– Cognitive Ability Test– Wechsler Adult Intelligence Scale– Wonderlic Personal Tests– Polygraph Tests– Honesty Tests

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INDUCTION• Induction is the process of receiving and welcoming

the employee when he firsts joins the company and giving him basic information he needs to settle down quickly and happily and start work.

• Lecture, Handbook, film , group seminar, are used to impart information to the new employees about the environment of the job and the organisation in order to make the new employee acquaint himself with the following heads:– About the Company– About the Department– About the superiors and subordinates

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Answer – (c) Reduction of workforce

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ANSWER- (A) - (IV), (II),(I),(III)

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ANSWER- (A) ELIMINATION

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ANSWER- (B) APPLICATION BLANK

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ANSWER- (B) EMPLOYEE ORIENTATION

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ANSWER- (D) INTRODUCTION

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ANSWER – (B) ORIENTATION

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TRAINING• After Selection and Induction, training must be

provided to adjust to the job• It is the act of increasing the knowledge and skill

of an employee for doing a particular job.• It is an organised procedure by which people learn

knowledge and/ or skill for a definite purpose.• Training refers to teaching and learning activities

carried o the primary purpose of helping members of an organisation to acquire and apply the knowledge, skills, abilities and attitudes needed by a particular job or organisation.

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TRAINING METHODS

Job rotation Coaching Job instruction Training through

step-by-step Committee

assignments Internships

Vestibule Training Role Playing Lecture Methods Conference or

Discussion Programmed

instruction

On-the-job Methods Off-the-job Methods

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ADVANTAGES OF TRAINING Increased Productivity Heightened Morale Reduced Supervision Reduced Accidents Increased Organisational Stability

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MANAGEMENT DEVELOPMENT Systematic process of growth and

development by which the managers develop their abilities to manage.

Concerned with improving the performance of managers by giving them opportunities of growth and development, which in turn depends on organisation structure of the company.

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METHODS OF MANAGEMENT DEVELOPMENT

Coaching Job Rotation Under Study Multiple Management

The Case study Incident Method Role Playing In Basket method Business game Sensitivity training Simulation Grid training Conferences Lectures Behaviour Modeling

On-the job techniques Off-the-job techniques

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ANSWER (C) I CORRECT, II INCORRECT

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ANSWER (A) 1,2,3

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ANSWER (C) VESTIBULE

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SUCCESSION PLANNING SP is to identify, develop and make the people

ready to occupy higher level jobs as and when they fall vacant.

Succession mat be from internal or external employees.

Organizations appraise employee potentialities, identify training gaps for future vacancies, develop them for higher and varied jobs.

The Scope of succession plan would be more when the organizations grow steadily and employees have potentialities to take up higher responsibilities.

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ANSWER (A) SUCCESSION PLANNING

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WAGE AND SALARY ADMINISTRATION Wage- the remuneration paid by the

employer for the services of hourly, daily, weekly and fortnightly employees.

Salary- The term salary is defined as the remuneration paid to the clerical and managerial personnel employed on the monthly or annual basis.

Incentive wage- the amount of remuneration paid to a worker over and above the normal wage as an incentive for employees contribution to the increased production or savings in time or material.

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OBJECTIVES OF WAGES AND SALARY ADMINISTRATION To acquire qualified competent

personnel To retain the present employees To secure internal and external equity To ensure desired behaviour To keep labour and administration cost

at minimum To facilitate pay roll To simplify collective bargaining To promote organisation 68

FACTORS AFFECTING WAGES/SALARY LEVEL Remuneration in comparable industries Firms ability to pay Cost of Living Productivity Union Pressure and Strategies Government Legislations

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TYPE OF WAGES Time Wage- workers are paid according to the

work done during a certain period of time, at the rate of so much per hour, per day, per week, per month or any fixed period of time.

Piece Wage- Workers are paid according to the amount of work done or the numbers of units completed, the rate of each unit being settled in advance, irrespective of the time taken to do the task.

Balanced or Debt Method- Combination of time and piece method. 70

INCENTIVES Incentive scheme is a plan or programe to

motivate individual and group performance. It can be monetary as well as non-monetary Factors Affecting Incentives are:

The individual and the incentives The work situation

It Increacses the motivation in a person

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FRINGE BENEFITS Also known as:

Welfare Expenses Wage Supplements Subwages Social Charges Perquisites other than wages Transparency Incentives Extra Wages Hidden Pay roll Non-Wage Labour Costs

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Meaning- Supplements to wages received by workers at a cost

to employers. The term encompasses a number of benefits- paid

vacations, pension, health and insurance plans etc. Cockman – “those benefits which are supplied by

an employer to or for the benefits of an employee, and which are not in the form of wages, salaries and time-rated payments.”

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Features In addition to wage and salary To stimulate their work and increase productivity Fringe benefits represents a labour cost for employer,

it is an expenditure which he incurs on supplementing the average money rates due to his employees.

It is never a direct reward geared to the output, effort or merit of an employee.

It should be intended by an employer as a benefit desired by his staff.

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ANSWER (C) I CORRECT, II INCORRECT

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MORALE A state of mind of a willingness to work which

in turn affects individuals and organizational objectives.

Importance: Sound superior-subordinate relations High employee satisfaction Reduce employee grievances Avoidance of Industrial Disputes Build teams and maximize contribution

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Morale results in: High commitment Low turnover Increase in disciplene Reduction in conflicts Increase in employee pride Team building Employee empowerment Easy implementation of ERP

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MEASUREMENT OF MORALE Observations Attitude surveys

Interview method Questionnaire method

Company records and Reports

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IMPROVING MORALE It is essential to change the policy or to

correct it immediately. Misconceptions should be removed, and the

correct position should be explained to the employees.

A reasonable attempt should be made to educate and convince the employees.

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ANSWER (A) PRODUCTIVITY

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PERFORMANCE APPRAISAL PA is the process of evaluating the

performance of a job in terms of its requirements.

Process of judging the value, excellence, qualities or status of some object, person or a thing.

Process of evaluating the performance of an employee ad communicating the results of the evaluation to him for the purpose of rewarding or developing the employee.

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OBJECTIVES OF PA Setting targets and goals as performance

standards. Evaluating employee performance. Identifying training and development needs. Rewarding performance. Improving performance.

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PROCESS OF PA Establish performance standards Communicate performance expectations to

employees Measure actual performance Compare actual performance with standards Discuss the appraisal with the employee If necessary, initiate corrective action

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METHODS OF PA

Ranking Method Paired Comparison Grading Graphic rating Method Forced choice Method Forced Distribution

Method Check lists Essay Method Critical Incidents Field Review Method Group Appraisal

Assessment Centre MBO BARS Human Resource

Accounting Method 360 Degree Appraisal

Traditional Methods Modern Methods

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ANSWER (A) 360 DEGREE APPRAISAL

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ANSWER (D) PERFORMANCE STANDARDS

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ANSWER (C) MANAGEMENT BY OBJECTIVES

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ANSWER (A) 360 DEGREE APPRAISAL

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ANSWER (C) MBO

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ANSWER (A) PERFORMANCE APPRAISAL

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ANSWER (D) I, II, III, IV

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JOB EVALUATION JE is an attempt to determine and compare

demands which the normal performance of a particular job makes on normal workers without taking into account the individual abilities or performance of the workers concerned.

It is a process of determining the relative worth of jobs, ranking and grading them by compounding the duties, responsibilities, requirements like skill, knowledge of a job with other jobs with a view to fix compensation payable to the concerned job holder

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OBJECTIVES OF JE To gather data and information relating to JD and

JS. To compare the duties, responsibilities and

demands of a job with that of other jobs. To determine hierarchy and place of various jobs

in a organisation To determine ranks or grades of various jobs To ensure Fair and Equitable wages To minimize discrimination

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PROCESS OF JE

1. Analyze and Prepare JD2. Select and prepare a JE plan3. Classify jobs4. Install the Programme5. Maintain the Programme

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Answer – (B) which are most important for survival of organisation

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ANSWER (C) WAGE FIXATION

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INDUSTRIAL RELATIONS IR is used to denote the collective relationship

between management, employees and Government in any form of industrial or non-industrial organisation.

IR deals with either the relationship between the state and employers and workers of organization or the relationship between the occupational organizations themselves.

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SIGNIFICANCE OF IR To help in economic progress of a country Establising and maintaining true industrial

democracy Formulation of informed laboyr relations policies Encourage collective bargaining Help govt. in making laws Boost Discipline and Morale of workers

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CONDITIONS FOR GOOD IR1. History of IR2. Economic satisfaction of workers3. Social and Psychological satisfaction of workers4. Off-the-job conditions of workers5. Role of Labour Unions6. Negotiating skills and attitude of mgt. and

workers7. Public policy and legislation8. Eduaction of workers9. Natue of industry and business cycles10. Systematic data base

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CAUSES OF POOR IR Uninteresting nature of Work Political nature of Unions Poor Wages Occupational instability Poor behaviour climate

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EFFECTS OF POOR IR Multiplier Effect (losses) Fall in normal tempo Resistance to Change Frustration and Social Cost

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SUGGESTIONS TO IMPROVE IR Both mgt. and unions should develop

constructive attitudes towards each other All basic policies and procedures relating to

IR should be clear to everybody in the org. and union leaders.

The HR manager should remove distrust by convicing the unions

The HR manager should not vie with the union to gain workers loyalty.

Mgt. should encourage the right kind of Union leadership

Agreement should be properly Administered.117

INDUSTRIAL DISPUTES According to Sec. 2(k) of the Industrial

Dispute Act, an ID means any dispute or difference between employers and employers, or between employers and workman, or between workman and workman, which is connected with the employment or non-employment of the terms of employment or with the conditions of labour, of any person.

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FORMS OF DISPUTES Strike

Stay-in strike, sit-down strike, pen-down strike or tool down strike

Go slow Hunger Strike Lightening/Wild Cat Strike Work-to-rule

Lock out Gherao

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METHOD FOR PREVENTION OF ID Collective Bargaining Code of Discipline Arbitration Permanent Negotiating Machinery and Joint

Consultative Machinery Tripartite Bodies

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TRADE UNIONS A TU means an association of workers in in one or

more occupations- an association carried on mainly for the purpose of protecting and advancing the members economic interest in connection with daily work.

TU is an association of employees designed primarily to maintain or improve the condition of employment of its members.

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NEED FOR TU To oppose mgt. To participate in union activities To excersise leadership To fall in line with others To get employment

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OBJECTIVES OF TU To defend or improve the wages or working

conditions of workers and to bring a change in economic order

To overthrow capitalism and to bring about a revolutionary and fundamental change in political order.

To replace managerial dictatorship by workers democracy and to bring about a change in the social order.

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ANSWER – ELTON MAYO

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EMPLOYEES HEALTH AND SAFETY Industrial Accidents

An Occurrence which interrupts or interferes with the orderly progress of work in an industrial establishment

Factories Act, 1948 defines it as “an occurrence in an industrial establishment causing bodily injury to a person which makes him unfit to resume his duties in the next 48 hours.”

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CAUSES OF INDUSTRIAL ACCIDENTS1. Unsafe Conditions/ Work Related Causes

1. Improperly guarded equipment2. Defective equipment3. Hazardous arrangement or procedure in and or

around, machines or equipment.4. Unsafe storage, congestion, overloading.5. Inadequate safety devices6. Faulty lay-out, bad location7. Insufficient light8. Improper ventilation9. Other work related Causes:

1. The Job Itself2. Work schedules, accidents increase late in the day3. Psychological climate of work place

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Unsafe Acts Operating without authority No warning of possible danger No safe attire or protective equipment Throwing materials on floor carelessly Operating or working at unsafe levels of speed Making safety devices inoperative Using unsafe equipments Using equipments unsafely Lifting improperly Taking unsafe positions

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Other Causes Unsafe situation Unsafe climatic conditions\bad working conditions Rough and slippery floors Excessive glares Heat Humidity Dust and Fume laden environment Long working hours Unsatisfactory behaviour of supervisors

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EMPLOYEE SAFETY Every org. should have a safety policy Safety policy depends upon:

Size of the company The number of plants it operates Nature of industry Production technology Attitude of top management

After formulating policy, a company should establish a safety programme, to reduce the number of hazardous factors which are likely to cause accidents, and to develop safe working habits among its employees.

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SAFETY COMMITTEE Appraisal of employee attitude to safety

programmes. Safety engineering

The adoption of proper engineering procedures to minimize and, if possible, eliminate work hazards is fundamental to any organised safety programme.

Safety education and training

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SAFETY OF WORKERSPROVISIONS OF FACTORIES ACT Fencing of Machinery Work on or near machinery in motion Employment of young near danger machines Device for cutting off power Hoists and lifts Proper construction and maintenance of

floors and stairs No excessive weights Suitable precautions against excessive light Safety of building and Machinery Appointment of Safety officers 132

INDUSTRIAL HEALTH Health- a state of complete physical, mental, and

social well-being and not merely the absence of disease or infirmity.

Industrial Health- a system of public health and preventive medicine which is applicable to industrial concerns.

According to ILO/WHO: Industrial Health means:1. The prevention and maintenance of physical, mental

and social well-being of workers in all occupations.2. Prevention among workers of ill health caused by the

working conditions3. Protection of workers in their employment from risks

resulting from factors adverse to health4. Placing and maintenance of workers in an occupational

environment adapted to his physical and psychological equipment.

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OCCUPATIONAL HAZARDS According to Ronald Blake, the normal

occupational health hazards may be classified into chemical, biological, environmental and psychological hazards.

Chemical substances cause injury when they are absorbed by the skin or when they are ingested and inhaled.

Gases, fumes and dust inhaled by workers causes serious injury or death.

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Among the biological hazards are included diseases which are caused by bacteria, fungi, viruses, insects, dietary deficiencies, imbalances, allergies, brain fever, emotional stress and psychological concomitants of fear, rage, worry and anxiety.

Environmental hazards may be included radiation, noise, vibration, shocks and improper atmospheric conditions.

Other Hazards caused due to- Noise, Vibration, Shocks, Atmospheric Conditions etc.

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HEALTH OF WORKERSPROVISIONS OF FACTORIES ACT, 19481. Cleanliness2. Disposal of wastes and effluents3. Ventilation and temperature4. Dust and Fume5. Artificial Humidification6. Overcrowding7. Lighting8. Drinking water9. Latrines and Urinals10. Spittoons

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ANSWER (B)

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LABOUR WELFAREOxford Dictionary- “efforts to make life

worth living for women.”Objectives-

To give expression to philanthropic and paternalistic feelings.

Win employees loyalty and increase morale. To combat trade unionism and socialist ideas. Reduce turnover and absenteeism Increase efficiency and productivity Earn goodwill and enhance public image Reduce govt. intervention Make recruitment more effective.

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PRINCIPLES OF LABOUR WELFARE SERVICES The Service should satisfy the real need of

workers The Services should be such as can be handled

best by group approach The employer should not assume a benevolent

posture The cost of services should be calculable Periodic evaluation of services, timely

improvement and feedback

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SAFETY SERVICES Components of Safety Service:

Appointment of Safety officer Support by line mgt. Elimination of Hazards

Job safety analysis, Placement Personal protective equipment Safeguarding machinery Materials handling, Hand tools Maintenance, Layout and Design Housekeeping

Safety training, education and publicity Safety inspections Periodic Safety audits

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SOCIAL SECURITY According to the Social Security Conventions

adopted by ILO in 1952 following are the Nine Components of Social Security

1. Medical Care2. Sickness Benefit3. Unemployment Benefit4. Old-age Benefit5. Employment injury Benefit6. Family Benefit7. Maternity Benefit8. Invalidity Benefit9. Survivor’s Benefit

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SOCIAL SECURITY IN INDIA The Workmen’s Compensation Act, 1923 The Employees State Insurance Act, 1948 The Employees Provident Fund and

Miscellaneous Provisions Act, 1952 The Maternity Benefit Act, 1961 The Payment og Gratuity Act, 1972 The Industrial Dispute Act, 1947

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WORKERS’ PARTICIPATION IN MANAGEMENT WPM is a mental and emotional involvement

of a person in a group situation which encourages him to contribute to goals and share responsibilities in them.

It is Institutional and formal arrangements resulting into creation of various participative forums to associate worker representative with mgt.

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OBJECTIVES OF WPM Increased productivity and efficiency Better understanding to employees about

their role Satisfy workers social and esteem needs Maintain industrial peace and harmony Tapping latent resources Develop self management in industry Build most dynamic HRs Build nation through Entrepreneurship and

Economic Development146

FACTORS INFLUENCING WPM The subject matter of participation The level of participation The personal characteristics of the

individuals who are asked to participate in the Decision-making

The extent of participation

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FORMS OF WPM Works Committee Joint Management Council Joint Councils Shop Councils

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OBSTACLES IN WPM Conflict between employees and

Management Belief that workers are inferior to mgt. Fact that system is management dominated Managers are averse to share responsibility

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ANSWER (B) MOTIVATION BY PARTICIPATION

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ANSWER (D) III, IV, II, I

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ANSWER (A) II, IV, I , III

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ANSWER (C) TERMINATION/RESIGNATION

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ANSWER (D) ATTITUDE

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ANSWER (A) OUTPUT IS GREATER THAN INPUT

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