36239367 hrm-vvism

Unit – I

Human Resource Management

1Prof Mamatha, VVISM

Meaning and Definition

HRM is a management function that helps managers recruit, select, train and develop members of an organisation.


HRM Definition……A series of integrated decisions that form the employment relationship; their quality contributes to the ability of the organisations and the employee to achieve their objectives.


HRM Definition……Is concerned with people dimension in management. Since every organisation is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organisation are essential to achieving organisational objectives.


HRM Definition……

Management is the planning, organising, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organisational and social objectives are accomplished.


Scope of HRM• HR Planning• Job analysis and Design• Recruitment and Selection• Orientation and Placement,• Training and Development• Performance appraisal and Job Evaluation• Employee and Executive Remuneration• Motivation and communication• Welfare, Safety and Health• Industrial Relations (IR)


Importance of HRM

• Social Significance

• Professional Significance

• Significance for individual enterprise


Importance of HRM

Social Significance

• Balance the jobs available and job seekers• Provide suitable and productive employment• Maximise utilisation of the resources effectively• Eliminate waste or improper use human resources• Help people make their own decisions


Importance of HRM

Professional Significance

• Maintain dignity of the employee as human• Provide maximum opportunities for personal

development• Provide healthy relationship to different work groups• Improve skills and capacities• Minimise wrong postings, allocate work properly


Importance of HRM

Significance for Individual Enterprise

• Create right attitude among employees through effective motivation

• Utilise the available human resources effectively• Secure co-operation of the employees: achieve goals,

psychological needs- love, affection, belongingness, esteem and self actualisation


Difference between HRM & PM

• HRM views people as an important source or asset to be used for the benefit of organisation, employees and the society.

• Philosophy of mutuality: mutual goals, mutual respect, mutual rewards and mutual responsibilities.

• Shifting to SHRM



• PM has limited scope and an inverted orientation• Viewed labour as a tool for benefits of the

organisation• Personnel Dept not respected, no productive

employees • PM treated as routine activity meant to hire new

employee and maintain personnel records • Never part of strategic management of business.



Dimension Personnel Human Resource

Employment Contract

Written, delineated

Aim to go beyond contract

Rules Clear Outlook, Impatience

Guide to Mgnt. Action

Procedures Business Needs

Behaviour referent

Norms/ Customs and Practices

Values/Missions




Managerial/ Labour task

Monitoring Nurturing

Key Relations Labour Management

Customer

Initiatives Piecemeal (slow)

Integrated

Management Role

Transactional

Transformational Leadership

Speed of decision

Slow Fast




Communication Indirect DirectPrized Management skill

Negotiation Facilitation

Selection Separate, Marginal task

Integrated, key task

Pay Job Evaluation (Fixed grades)

Performance based

Conditions Separately negotiated

Harmonisation


Difference between HRM & PMDimension Personnel Human Resource

Labour Management

Collective bargaining contracts

Individual contracts

Job categories and grades

Many Few

Job design Division of labour

Team work

Conflict handling

Reach temporary truce

Manage climate and culture

Training & Development

Controlled access to courses

Learning companies 16Prof Mamatha, VVISM



Intervention focus

Personnel procedures

Wide ranging- cultural, structural and personnel strategies

Respect for employees

Labour treated as tool: expendable and replaceable

People are treated as assets to benefit organisation/ employees/society 17Prof Mamatha, VVISM



Shared interests

Organisational interests are uppermost

Mutuality of interests

Evolution Precedes HRM Latest in the evolution of the subject


Objectives of HRM - 4

1. Societal:To be ethically and socially responsible to the needs and challenges of society while minimising the negative impact of such demands upon the organisation.

2. Organisational:To recognise the role of HRM in bringing about organisational effectiveness.


Objectives of HRM3. Functional:To maintain the department’s contribution at a level appropriate to the organisation’s needs.

4. Personal:To assist employees in achieving their personal goals, at least insofar as these goals enhance the individual’s contribution to the organisation.


HRM Objectives and Functions

• HRM Objectives

1. Societal

• Supporting Functions

1.Legal Compliance

2.Benefits

3.Union management relationship



• HRM Objectives

2. Organisational


1.Human Resource Planning2.Employee Relations3.Selection4.Training & Development5.Appraisal6.Placement7.Assessment



• HRM Objectives

3. Functional


1.Appraisal

2.Placement

3.Assessment



• HRM Objectives

4. Personal


1.Training & Development

2.Placement

3.Assessment

4.Compensation


Image & Qualities of HR Manager

• Fairness & Firmness

• Tact and resourcefulness

• Sympathy and consideration

• Knowledge of labour other terms

• Broad Social outlook

• Competence


HR Policies

• A policy is plan of action. Is a statement of intention committing the management to general course of action. Policy contains HR programmes, expression of philosophy and principles.

• Policy are required for……basic needs, consistency in treatment & continuity


Evolution of HRM

• HRM emerged in 1970s• Kautilya’s Arthashastra in 4th BC• Babylonian Code of Hammurabi 1800 BC

‘minimum wage rate’ & ‘incentive wage plan’• In India since 1920: First world war, emergence of

trade union• The Royal Commission (1931): Labour Welfare

Officers : Selection of workers and settle grievances.


Evolution of HRM

• Factories Act (1948) Welfare officers compulsory in industries employing 500 employees

• IIPM – Kolkata, NILM in Mumbai : (Jute and textiles)

• Second World War : increased expectations of the workers: IR and Personnel admn integrated as PM

• 1970: Shift from welfare to efficiency.• 1980: HRM and HRD Challenges• 1990: Human value and productivity through people.• 2000: Shifting to SHRM


Prof Mamatha, VVISM 29

Forecasting Personnel Needs

• Trend Analysis – studying variations in firm’s employment levels over the last few years.

• Ratio Analysis – making forecasts based on historical ratio between Causal factor (like sales volume) and the number of employees required

• The Scatter Plot – two variables are related

• Computerized Forecasts – more variables taken into consideration


Determining the relationship between hospital size and number of nurses

Size of hospital (no. of beds)

Number of Nurses

200 240

300 260

400 470

500 500

600 620

700 660

800 820

900 860


Forecasting supply of inside candidates

• Manual systems and Replacement charts

• Computerized information systems

• The matter of privacy

Forecasting the supply of outside candidates

• From magazines

• From web portals

• etcProf Mamatha, VVISM 32

Any Queries???


Summing up

• Definition

• Difference between HRM & PM

• Evolution

• Objectives

• Scope

• Importance

• HR policies

• Demand & Supply forecasting techniquesProf Mamatha, VVISM 34

Unit II

Employment of Human Resources


12–36

Managing Human Resources

• Human Resource (HR) Planning– The process by which managers ensure that they

have the right number and kinds of people in the right places, and at the right times, who are capable of effectively and efficiently performing their tasks.

– Helps avoid sudden talent shortages and surpluses.

– Steps in HR planning:• Assessing current human resources

• Assessing future needs for human resources

• Developing a program to meet those future needs

Prof Mamatha, VVISM

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Current Assessment

• Human Resource Inventory

– A review of the current make-up of the organization’s current resource status

– Job Analysis

• An assessment that defines a job and the behaviors necessary to perform the job.

– Knowledge, skills, and abilities (KSAs)

• Requires conducting interviews, engaging in direct observation, and collecting the self-reports of employees and their managers.

Prof Mamatha, VVISM

Job Analysis & Design


Objectives• Establish and document the job relatedness of

employment

• Produce a basic job description of the job to facilitate the selection of appropriate personnel

• Determine training needs

• Form work groups and teams

• Determine compensation

• Evaluate performance

• Improve quality and productivity39Prof Mamatha, VVISM

Various aspects of a job to be analyzed

• Duties and tasks

• Environment

• Tools and equipment

• Relationship

• Requirements


Job Description• JD is a written statement of the duties,

responsibilities, required qualification, and reporting relationships of a particular job.

• It includes the information about working conditions, equipment used, knowledge, and skills needed, and relationships with other positions.

Produce an outline of the broad responsibilities (rather than detailed tasks) involved in the job.


Job Specification

• Specifies the minimum acceptable qualifications required by the individual to perform the task efficiently.

• It also specifies not only educational qualifications but also certain personality characteristics that may be required specifically for a job.

• Someone will need to do the job as defined in the task analysis and job description.


Job Evaluation

• The relative value of each job in an organization.

• It basically serves the purpose of compensation procedures.

• It is useful to tool for making decisions about the compensation to be attached with a particular position.


Job Design

• Job design has emerged as an important area of job analysis. It is based on growing conceptual and empirical base and has command research attention and is being widely applied to actual practice of management


Job Rotation

• An alternation to boredom in work place is job rotation.

• Job rotation implies moving of employees from one job to another without any fundamental change in the nature of job.

• The employee may be performing different jobs that are of similar nature.


Job Enlargement

• It involves adding more tasks to a job. It is horizontal expansion and increase jobs scope and gives a variety of tasks to the jobholder.

• It is essentially adding more tasks to a single job.

• It definitely reduces boredom and monotony by providing the employee more variety of tasks in the job.


Job Enrichment• Another approach to designing jobs is job

enrichment.

• Job enrichment involves vertical expansion of job by adding more responsibilities and freedom to it.

• Job enrichment is the type of expansion of a job that gives employees more challenge, more responsibility, and more opportunity to grow and contribute his or her ideas to the organization's success.


Recruitment


Definition & Meaning

• “How to Attract a Pool of Candidates Who are Qualified, Diverse, and Interested in the Job You Have Open”

• Recruitment is the process of acquiring applications for specific positions to be filled in the organization. In other words it a process of searching for and pooling of applications for jobs, so, that the right people may get selected.

• A process for searching for prospective employees and stimulating and encouraging them to apply for jobs in the organization.


Sources of Recruitment

• Internal Sources– Promotions from within– Employee referral– Former employees– Previous applicants

• External Sources– Walk-in/write-in– Advertising– Employment exchanges– Campus Recruitment– Professional Associations– Electronic Recruitment


• What is the job / Position ?

• Who do you want to fulfill this requirement ?

• Where will you find the person/people to do it .?

• What will you do to make them volunteer for your organization?

• Why will they volunteer for you ?

( i.e what will motivate them to come on board with you . ?)

The “5 W’s” of Recruitment


Recruitment Procedure


The secret to employee attraction is employee retention.

If a compnay has what it takes to keep its existing employees satisfied and productive, it similarly has what it takes to bring in new talent.

Retain your employee to create the difference


Selection


Selection• Selection involves a series of steps by which the

candidates are screened for choosing the most suitable persons for vacant posts.

• The process of selection leads to employment of persons who possess the ability and qualifications to perform the jobs, which have fallen vacant in an organization.

• The basic purpose of the selection process is to choose right type of candidates to man various positions in the organization. In order to achieve this purpose, a well-organized selection procedure involves many steps and at each step, unsuitable candidates are rejected.


The Challenge

• Selection is a critical process

• Locating The Right Person

• Requires a huge investment of money to get right types of people.

• Structure of Selection Process that helps companies to test for fit

• Employment Tests to rightly judge the capabilities of candidates

• Selecting people who possess the ability and qualifications to perform the jobs.


Selection Procedure• Preliminary Interview• Application Blank/ Receiving Applications• Screening of Applications• Employment Test

– Intelligent tests– Aptitude tests– Personality tests– Projective tests– Interest tests– Achievement tests– Other tests

• Selection Interview (Structured/Unstructured/Stress)• Physical Examination• Checking References• Final Selection


Placement Procedures


Objectives• Remove fears

– The job, its content, policies, rules and regulations.– The people with whom he is supposed to interact– The terms and conditions of employment

• Creates a good impression– Adjust and adapt to new demands of the job– Get along with people– Get off a good start

• Organizational issues– History of the Company– Names and titles of key executives– Probationary period– Disciplinary procedure– Employee hand book– Safety steps– Etc. 59Prof Mamatha, VVISM

Objectives (Contd)

• Employee benefits– Pay scales– Vacation, holidays– Rest pauses– Training avenues– Counseling– Insurance, medical and retirement benefits

• Introduction– To supervisors– To co-workers– To trainers– To employee counselors


Objectives (Contd)

• Job duties– Job location

– Job tasks

– Job safety needs

– Overview of jobs

– Job objectives

– Relationships with other jobs


INDUCTION


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Orientation / Induction

• Transitioning a new employee into the organization.

– Work-unit orientation

• Familiarizes new employee with work-unit goals

• Clarifies how his or her job contributes to unit goals

• Introduces he or she to his or her coworkers

– Organization orientation

• Informs new employee about the organization’s objectives, history, philosophy, procedures, and rules.

• Includes a tour of the entire facilityProf Mamatha, VVISM

Promotions, Demotions, and Transfers

• Promotions refer to upward movement of an employee from the present position to another one with increased responsibilities, pay, status, and prestige.

• A transfer is a change of job assignment. It may be linked with promotion or there may not be any change at all in a status of responsibilities. Transfer is horizontal move.

• Demotion is the downward movement of an employee in the organizational hierarchy with lower status and pay.


Separations, Downsizing, Layoff & Retrenchment

• Separations:– Long leave of absence

– Resignations

– Retirement

– Death

• Downsizing, Layoff & Retrenchment:– Suspension of an employee

– Dismissal of an employee

– Exit interviews65Prof Mamatha, VVISM

QUERIES!!!


Summingup

• HRP

• Job

• Recruitment

• Selection

• Placement

• Induction/Orientation

• Promotions, Transfers, Separation, VRS, etc


Unit III

Development of Human Resources


Training & Development

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Definition of Training and Development

Training is an individual means to help him to learn how to carry out his present job

satisfactorily.

Development can be defined as preparing the individual for a future job

-John P. Jkenny


Purpose of Training

2400 years ago, Confucius declared:

"What I hear, I forget.What I see, I remember.What I do, I understand.”

“The purpose of training is to provide information and skills that participants will use in the real world. Participants must be actively involved during the session if they're going to integrate and remember the information”


DevelopmentDevelopment isn't restricted to training - it's anything that helps a person to grow, in ability, skills, confidence, tolerance, commitment, initiative, inter-personal skills, understanding, self-control, motivation, and more.


Why Training … a bird with wings

INFOSYSNext Generation Excellerators

Excellent Communication SkillsAdaptive, AdeptConsistent, FlexibleInformed, Inspired, ImaginativeEfficient, Human, HonestRespect for CompetitionEmpowered to scale new domainsPeople committed to enhancing quality ventures every daySimple solutions to complex problemsWorld Changer, Value creatorPowered by intellect and driven by values


Training & Development Distinctions

LearningDimension

Training Development

Who

What

Non-managers

TechnicalMechnaical Oper.

Managers

TheoreticalConceptual ideas

Why

When

Specific jobrelated info.Short term

General knowledge

Long run74Prof Mamatha, VVISM

Goal of Training & Development

MicrosoftThe goal of Training & Development at Microsoft is to achieve an optimal match between each employee's professional growth and Microsoft's business objective


TRAINING CYCLE


ExerciseWhat topics will you decide for Senior Managers,

Middle, Staff and workers -Reasons •Communication Skills.Effective Decision Making Skills .Building High Performance Teams to complete projects .Proactive steps to overcome Organizational negativity.Developing Creative Strategies for complex problems.Building effective Inter & Intra-personal relationships to get results.Time Management skills.Emotional Intelligence at work.Leadership without Authority.Professional Assertive Communication.Stress Management skills .Conflict Resolution Techniques


Assignments

Groups

Articles

Games


Learning Theory

“A relatively permanent change in behaviour that occurs as a practice or experience”

Bernard Bass


Learning Curves1.Standard learning curve

( assumption that all learners are alike in their acquisition of knowledge and the task to be learned or information to be

acquired is fairly straight forward)

2. Differing rates of learning(Those who have difficulty in relating the task to their past

experience and knowledge, who are not suitably motivated or or are affected by other psychological constraints have a slower start

e.g.:APDISCOM)

3. Learning Plateau(Learners reach a of standstill-wrong assumption of limit of

capacity-learner absorbing/un learningSolution-Analyse, reinforce, incentive, bridge )


On-the-Job Training

• Advantages

• No specific facilities needed

• Real life situation/not simulated

• Productivity

• Trainee establishes relations from start

• No ‘off-the-job’ cost

• Learning can be controlled

• Disadvantages

• Risk to machines and increase in scrap

• Part-time instructor may lack skill in training

• Lack of time due to pressure of production

• Psychological pressure before experienced workers


Off -the- Job Training• ADVANTAGES• Relaxed atmosphere,away

from home and work, no distractions

• Specific difficulties are easier to explore

• Test hypotheses and ideas in low risk environment

• Improves morale and motivation for self-development

• DISADVANTAGES• Cost of external facilities

• Difficulty of simulating work problems

• Resistance of trainees being away from home(lengthy training)


The Three Classifications of Information

1.Must know(Essential for success/TNA/e.g.:safety rules, hygiene requirements)

2.Should know(Relates directly to ‘must know’, and elaborates e.g.:other practices/not statutory))

3.Could know(Useful background /not directly assist in its effective execution, e.g.:historical details, future areas of interest, general information)


How Adults Learn?1.Learning is a voluntary process(Benefit,T-interesting)

2. Responsibility increases learning(increase, learning/retaining)

3. Learning builds on existing knowledge(learning capacity-range of experiences,T-background)

4. Learning moves from simple to complicated(step-by-step,bridging new knowledge to old, verify)

5. Each person learns at his own pace(let the flower blossom on its own)

6. Adults learn best by doing(provide opportunities to do use the learning, case, game, role play)


“It is vital to a valuable education that independent critical thinking be developed in the young human being, a development that is greatly jeopardized by overburdening him too much and with too varied subjects. Overburdening necessarily leads to superficiality. Teaching should be such that what is offered is perceived as a valuable gift and not as a hard duty” -Albert Einstein

Thank you..


Setting Objectives

Why set objectives?

1. Provide direction(what is to be achieved)

2. Emphasize standards(e.g..20 min,5 mistakes)

3. Provide consistency (e.g..overall dev.section)


Difference between Aims and Objectives

Aims: General purpose which provides a direction or statement of intent-desired outcomee.g.: aiming at a target

Objective:spells out how and when this is attained-fairly explicite.g.:hitting the bulls eye


Who decides the Course Objectives?

Senior Management(Without the backing of senior management there can be little hope of acceptance of any training program-integral part of the

companies philosophy)

Line Management(must feel direct benefit-involve line management in developing

content and course objectives)

Delegates

(win the hearts and minds of delegates-tell the benefits of the course)


Points to consider in Setting Objectives

1. Realistic

2. Relevant

3. Positive

4.Certain

5.Justifiable


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Performance Appraisal - Definition

• Performance Appraisal is a process of evaluating an employee’s performance of a job in terms of requirements

• Performance Appraisal is a process of estimating or judging the value, excellence, qualities or status of an object, person or a thing

• Performance Appraisal is a process of evaluating the performance and qualifications of the employees in terms of the requirements of the job for which he is employed for purposes of administration including placement, selection for promotions, providing financial rewards and other other actions which require different treatment among the members of a group as distinguished from actions affecting all members equally”

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Importance and Purpose of PA

• PA provides useful in making decisions regarding various personal aspects such as promotions, merit increases etc.

• PA forms a basis for judging the effectiveness of personnel sub-divisions such as recruiting, selection, training & Compensation

• PA helps easier for managers to see which employees need training and counseling.

• PA seeks to provide adequate feedback to each individual for his or her performance

• PA purports to serve as a basis for improving data to managers with which they may judge future job assignments and compensation

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Objectives of Performance Appraisal

• To enable an organisation to maintain an inventory of the number and quality of all managers and to identify and meet their training needs and aspirations

• To determine increment rewards, and provide a reliable index for promotions and transfers to positions of greater responsibility

• To maintain individual and group development by informing the employee of his performance standard

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• To suggest ways of improving the employee’s performance when he is not found to be upto the mark during the review period

• To identify training and development needs and to evaluate effectiveness of training and development programs

• To plan career development, human resources planning based on their potential.

Objectives of Performance Appraisal

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Criteria’s for assessing performance

• Quality• Quantity• Timeliness• Cost effectiveness• Need for Supervision• Interpersonal impact• Training

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Approaches to Performance Appraisal

• A Casual, unsystematic and often haphazard approach – This method was used in the past, main basis being seniority or quantitative measures of quality and quantity of output for the personnel

• Traditional and highly systematic measurement – Employee characteristics, employee contributions. The ratings obtained of separate personnel are comparable.

• Behavioral approach, emphasing mutual goal setting – Supervisor judges and at times critizes the personal. Emphasis has been laid both by the appraiser and the appraisee.

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Methods, Techniques or Tools for appraising performance

• Methods include Traditional and Modern Methods

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Methods of Performance Appraisal

Modern MethodTraditional Method

Straight Ranking Method

Man-Man Comparison Method

Graphic Rating Scales

Forced Choice Description Method

Forced Distribution Method

Check Lists

Free Form Essay Method

Critical Incidents

Group Appraisal

Field Review Method

Assessment Centre

Appraisal by Results or Management by Objectives

Human Asset Accounting Method

Behaviourly Anchored Rating Scales

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• Straight Ranking Method– This is the oldest and simplest method of

Performance appraisal, by which man and his performance are considered as an entity by the rater. Employees are appraised in order of merit and placed in a simple grouping. This is the simplest method of separating the most efficient from the least efficient.

Traditional methods of Performance Appraisal

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• Man-Man Comparison Method:– This technique was used by the USA army during the

I World War. By this method, certain traits are selected for the purpose of analysis such as Leadership, dependence and initiative. A scale is designed by the rater for each factor. Each man to be rated is compared with the man in the scale and certain scores are awarded to him. This method is used in job evaluation, and also known as Factor comparison method.


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• Grading method:– Under this system, the rater considers certain

features and marks them accordingly to a scale. Selected features may be analytical ability, co-operativeness, dependability, job knowledge, judgement etc


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• Graphic or linear Rating Scale:– Most commonly used method of Performance

appraisal– Each person to be rated in this type– Employee characteristics such as initiative,

leadership, dependability, attitude, creativity, decisiveness etc will be considered for rating

– Employee contribution includes quantity of work, quality of work, responsibilities, target achievers, attitude towards superiors etc

– These traits are evaluated on a continuous scale and the rating is generally subjective.


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• Forced Choice Description Method:– This method was evolved with a great deal of

research conducted for the military services during World War II.

– This attempts to correct a rater’s tendency to give consistently high or low ratings to all the employees. In this the rating elements are sets of pair phrases relating to job proficiency or personal qualifications.


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• Forced distribution Method– This method evolved by Joseph Tiffin after

statistical work. This is used to eliminate or minimise rater’s bias, so that all personnel may not be placed at the higher end or lower end.


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• Checklist– Under this method, the rater does not evaluate

employee performance. He supplies reports about the employees to the HR department

– Checklist points include• Is the employee really interested in his job?• Is he regular on his job?• Is he respected by his subordinates?• Does he show uniform behaviour to all?• Does he give recognition and praise to employees for work

done well?• Does he ever make mistakes?


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• Free Essay Method– Under this method, the supervisor makes a

free form, open-ended appraisal of an employee in his own words and puts down his impressions about the employee. No attempt is made to evaluate an employee in a quantitative manner.


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• Critical Incident Method:– This method was developed following research conducted by

the armed forces in the US during World War II. The basis of this method is the principle that “ there were certain significant acts in each employee’s behaviour and performance which make all the difference between success and failure on the job.

– The supervisor keeps a written record of the events that can be easily be recalled and used in the course of a formal appraisal.

– Feedback is provided about the incidents during performance review session.

– The collected incidents are then ranked in order of frequency and importance

– This method provides an objective basis for conducting a discussion of an individual’s performance


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• Group Appraisal Method:– Under this method, employee are rated by an

appraisal group consisting of their supervisor or three to four other supervisors who have some knowledge of their performance.

– The supervisor explains to the group the nature of his duties and the group then discusses the standards of performance for that job.

– Advantage of this method is simple and no bias but this is time-consuming.


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• Field Review method:– Under this method, a trainer employee from the

personnel department interviews line supervisors to evaluate their respective subordinates.

– The supervisor is required to give his opinion about strengths and weaknesses

– The appraiser takes complete details and the supervisor maintains record of this for each personnel.

– This system is useful for a large organisation,


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Modern methods of Performance Appraisal

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• This method has been evolved by Peter Drucker.• MBO is potentially a powerful philosophy of

managing and an effective way of operationalising the evaluation process.

• MBO seeks to minimise external controls and maximise internal motivation through goal setting between the manager and the subordinate and increasing the subordinate’s own control of his work.

• This strongly reinforces the importance of allowing the subordinate to participate actively in the decisions that affect him directly

Management by Objectives (MBO)

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• MBO has defined as – A system approach to managing the organisation,

where those accountable for directing the organisation first determine where they want to take the organisation.

– A process requiring and encouraging all key management personnel to contribute their maximum by achieving the overall objectives

– An effort to blend and balance all the goals of all key personnel and

– An evaluation mechanism

Management by Objectives (MBO)

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• The objectives is to change the behaviour and attitude towards getting the job done.

• It is management system and philosophy that stress goals rather than methods

• It provides responsibility and accountability and recognised that employees have needs for achievement and self –fulfilment.

Objectives of MBO

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• MBO has five steps– Set organisation goals– Joint goal setting– Performance reviews– Set checkposts– Feedback

Management by Objectives - Process

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• MBO helps and increases employee motivation because it relates overall goals to the individual’s goals and helps to increase an employee’s understanding of where the organisation is and where it is heading

• Managers are more likely to compete with themselves than with other managers. This will reduce internal conflicts

• MBO reduces role conflict and ambiguity.

• MBO provides more objective appraisal criteria.

Benefits of MBO

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Benefits of MBO

MBO forces and aids in planning

MBO identifies performance deficiences and enables the management and the employees to set indivisualised self improvement goals and thus proves effective in training and development of people.

MBO helps the individual manager to develop personal leadership, especially skills of listening, planning, counselling, motivating and evaluating

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• The assessment centre concept was initially applied to military situations by Simoniet in the German Army in 1930’s and the War selection board of the British Army in the 1960’s.

• The purpose of this is to test the candidates in a social situation using number of assessors and variety of procedures.

• In this process, many evaluators join together to judge employee performance in several situations with the use of variety of criteria.

• Assessments are made to determine employee potential for purpose of promotion.

• Assessment is generally done with the help of couple of employees and involves a paper and pencil test, interviews and situational exercises.

Assessment Centre Method

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• To measure potential for first level supervision, sales and upper management positions and also for higher levels of management

• To determine individual training and development needs of employees

• To select recent college students for entry level positions

• To make an early determination of potential• To assist in implementing affirmative action

goals

Purpose of Assessment Centres

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• This refers to activity devoted to attaching money estimates to the value of a firm’s internal human organisation and its external customer goodwill.

• This is not very popular because two types of variable measures must be made over several years to provide the needed data for the computation of the human asset accounting.

Human Asset Accounting Method

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• This is a new appraisal technique which has recently developed.

• This provides better , more equitable appraisals as compared to other techniques

• The procedure of BARS is usually five stepped– General critical incidents– Develop performance dimensions– Reallocate incidents– Scale of incidents– Develop final instrument

Behaviourly Anchored Rating Scales (BARS)

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• A very accurate gauge, since BARS is done by experts in the technique

• Clear standards• Feedback• Independent dimensions• Rater – independence

Advantages of Behaviourly Anchored Rating Scales (BARS)

Prof Mamatha, VVISM

After studying this chapter, you should be able to:After studying this chapter, you should be able to:

1. Compare employers’ traditional and career planning-oriented HR focuses.

2. Explain the employee’s, manager’s, and employer’s career development roles.

3. Describe the issues to consider when making promotion decisions.

4. Describe the methods for enhancing diversity through career management.

5. Answer the question: How can career development foster employee commitment?

10–121Prof Mamatha, VVISM

The Basics Of Career Management

10–122Prof Mamatha, VVISM

The Employer’s Role in Career Development

10–123

Realistic Job Previews

Challenging First Jobs

Networking and

Interactions

MentoringCareer-

Oriented Appraisals

Job Rotation

Employer’s Role

Prof Mamatha, VVISM

Managing Promotions and Transfers

10–124

Decision 1: Is Seniority

or Competence

the Rule?

Decision 4:Vertical,

Horizontal, or Other?

Decision 2:How Should We Measure Competence

?

Decision 3:Is the

Process Formal or Informal?

Making Promotion Decisions

Prof Mamatha, VVISM

Career Management and Employee Commitment

10–125

Old Contract: “Do your best and be loyal to

us, and we’ll take care of your career.”

New Contract: “Do your best for us and be

loyal to us for as long as you’re here, and we’ll provide you with the

developmental opportunities you’ll need to move on and have a successful career.”

Comparing Yesterday’s and Today’s

Employee-Employer Contract

Prof Mamatha, VVISM


(cont’d)

10–126

Career Development Programs

Career-Oriented

Appraisals

Commitment-oriented career development

efforts

Prof Mamatha, VVISM


(cont’d)

10–127

Career Development Programs

Career-Oriented

Appraisals

Commitment-

Oriented Career

Development Efforts

Prof Mamatha, VVISM

Attracting and Retaining Older Workers

10–128

Create a Culture that Honors Experience

Offer Flexible Work

Offer Part-Time Work

HR Practices for Older Workers

Prof Mamatha, VVISM

Taking Steps to Enhance Diversity: Women’s and Minorities’ Prospects

10–129

Take Their Career

Interests Seriously

Eliminate Institutional

Barriers

Eliminate the Glass Ceiling

Improve Networking

and Mentoring

Institute Flexible

Schedules and Career

Tracks

Prof Mamatha, VVISM

Identify Your Career Anchors

10–130

Technical/Functional

Competence

Managerial Competence

Autonomy and

IndependenceCreativity

Security

Prof Mamatha, VVISM

Coaching & Mentoring


Personal Coaching

Personal Coaching is a distributed training and development method

where individuals regularly interact with and are accountable to

a personal coach for an extended period of time,

to achieve agreed learning outcomes


Mentoring• Mentoring is a tool that organizations can use to

nurture and grow their people. It can be an informal practice or a formal program. Protégés observe, question, and explore. Mentors demonstrate, explain and model. The following assumptions form the foundation for a solid mentoring program.

• Deliberate learning is the cornerstone.

• Both failure and success are powerful teachers.

• Leaders need to tell their stories.

• Development matures over time.

• Mentoring is a joint venture.


Mentoring is distinct from coaching

Mentoring

• Broad• long-term• level-distant• cross-functional• providing guidance

Coaching

• Job specific• Short-term• Level-close• Same-function• Giving advice


Mentoring is distinct from coaching

Mentors

• Nurture whole person

• Draw forth untapped talent

• Encourage & Inspire

• Guide from the heart

• Accelerate learning & empowerment

Coaches

• Provide job coaching

• Focus on job skills

• Groom for a particular position

• Evaluate performance

• Reward job learning


EvolutionTraditional

• Focus on career advancement

• Mentor as protector

• Single mentor

• Clone look-alike, think alike, act-alike

• Elitist

• Process centred

• Mentors are older, wiser, more experienced

New Age• Focus on leadership

• Mentee (protégé) driven

• Multiple mentors

• Democratic, potentially helpful to every member of workforce

• Knowledge needs

• Mentees’ are often better educated & technically competent 136Prof Mamatha, VVISM

Why Mentoring

• Encourages knowledge sharing

• Both parties Develop

• Encourages teamwork

• Addresses specific issues or skills

• Supplements on-the-job training

• Promotes leadership development


-Global Findings-• 75% executives said mentoring played a key role in their

career ……………ASTD

• Survey of CEO’s states that one of the top three factors in their career was mentoring …..Account Temps survey

• 96% executives said that mentoring is an important developmental tool………Account Temps survey

• Mentoring programs have been proven to improve retention by 20-30% ………ASTD

• 71% of Fortune 500 companies use mentoring to make

learning occur in their organizations ………(1996)138Prof Mamatha, VVISM

Zone of Impact

HabitsBehaviorMindset

What? Why?

Knowledge

Want ToHow To?Skills Attitude

& Desire


Mentor- Mentee Relationship

A dynamic association or pairing between an individual who needs to learn and another who is willing to

help and guide the learner.


Stages in the Development of Mentoring Relationships

Stage 1: The mentor and recipient become acquainted and informally

clarify their common interests, shared values and

professional goals. Stage 2: The mentor and recipient communicate initial expectations

and agree upon some common procedures and expectations

as a starting point.

Stage 3: Gradually, needs are fulfilled. Objectives are met.

Professional growth takes place. New challenges are

presented and achieved. This stage may last for months or

years.Stage 4: The mentor and recipient redefine their relationship as

colleagues, peers, partners and/or friends.


Mentoring Environment

Interpersonal chemistry is important• Sense of mutual comfort and equality

• With self-confident people - differences may in fact provide learning experience

Need for ground rules & shared expectations how, when, where to meet and specific terms for review and

evaluation

Friendship can get in way of objectivity

- Can be ended by either party for any reason

- no explanations/justifications required 142Prof Mamatha, VVISM

Types Of MentoringSituational Mentoring • Short, isolated episodes• Often casual, one-time events• Responsive to current needs of mentee and/or present situation• A mentor-initiated intervention

Informal Mentoring• Voluntary• Loosely structured, flexible• Mentee revealed needs• Mentor may have more than one role in relationship with mentee

(supervision, parent, friend)

Formal Mentoring Programs• Driven by organizational needs• A method for matching mentors with (or assigned to) mentees• Of fixed duration and based on goal achievement


Methods of Mentoring

The Standard/ Traditional methodThe Peer Mentoring Method

The Team Mentoring Method


4 Types of Coaching

1. Counseling

2. Encouraging & Mentoring

3. Training

4. Confrontation


What Mentoring is not

• a guarantee of advancement• an unlimited resource on tap• a job locating service• a means of bypassing supervisors• a mechanism for providing favouritism or unfair advantage• a way of working outside the system• A fix for

– seniority/age disparity– gender differences– personality clashes– different ‘wavelengths’


When mentoring

Deliberate learning is the cornerstone

Success and failure are powerful teachers

Leaders need to tell their stories

Development matures over time

Mentoring is a joint venture


"The best mentors are the people in your life who push you

just a little bit outside your 'comfort zone.' " -- Leigh Curl


Mentor Competencies

Trustworthy and open High Integrity Active listener Catalyst for learning Commitment builder Enthusiasm to share


“Tell me, and I’ll forget.

Show me, and I may remember.

Involve me, and I’ll understand.”


The four “C’s” of Coaching

Confidence

Control

Concentration

Commitment


To be a good coach you need to:

Motivate your staff – empower your employees

Hone your communication skillsCounsel your staff – stop problem

situations before they get out of handExercise good judgment

Utilize available talent – they will be motivators for other staff


"People will forget what you said. People will forget what you did. But people will never forget how you make them feel."

Bonnie Jean Wasmund 153Prof Mamatha, VVISM

Dilemmas

Can Mentoring save us money or improve profitability?

Shall we allow employees to spend time on mentoring others when we are thinly resourced?

What if the Mentoring framework becomes a session to talk personal problems ?

What if the Mentor-Mentee engagement is “not bearing fruit”


• Mentoring is something a mentor does to a protégé

• A good mentor can literally save a life• Mentors should be of the same ethnic background as

their protégés• Mentoring is a special, enhance type of management

coaching• Anyone can benefit from being mentored

Mentoring MythsMentoring Myths


Evaluation Of A Mentor Program Someone in the organization needs to be

responsible for:Moving the mentor program forward in a positive directionProviding opportunities for mentors to share their experiences and their views about the effectiveness of the mentor programProviding opportunities for recipients of mentoring to share their views about the effectiveness of the mentoring programAddressing any problems or unmet needs that emerge during the course of the year.


Continued…

Some orgainsations might hold:Hold informal but regular social get-

togethers over lunchHold more formal quarterly or monthly

meetings Hold brief reports which are written or

given orally Using a timeline for the current year


Mentor's role in experiential learning is like that of

birds guiding their young in leaving the nest; they

support without rescuing, provide scaffolding, and

have the courage to let learners fail!!158Prof Mamatha, VVISM

Summing Up

• Training

• Performance Appraisal

• Mentoring

• Career Planning

• Mgt Development, Organization Development, Executive Development


Unit IV

Management of Human Resources & Industrial Relations


COMPENSATION PACKAGE


What is Compensation ?

Compensation is the process of directly and

indirectly rewarding employees on a current or

deferred basis, for their performance of assigned

tasks.


Objectives of Compensation • Legal Compliance with all appropriate laws and

regulations

• Cost effectiveness for the organization

• Internal, External and Individual equity for employees

• Performance enhancement for the organization


Compensation Types

DIRECT INDIRECT

Base Pay Wages Salaries

Variable Pay Bonuses Incentives Stock Options

Benefits Medical Insurance Paid time off Retirement Pensions Worker’s Compensation


Division of Compensation -Responsibility

HR Manager Line Manager

Develops and

Administers

Compensation system

Conducts job evaluation

and wage surveys

Develops wage / salary

structures and policies

Attempt to march

performance and rewards

Recommend pay rates

and increment based on

guidelines from HR unit

Evaluate employee

performance based

compensation purposes


COMPENSATION STRATEGIES

• Compensation Philosophies

– Strategic Compensation Design

– Compensation and Organizational Culture

– Cost Effectiveness and Labour Market

Positioning

• Competency Based Pay

• Broadbanding and Career Development


Compensation Philosophy

ENTITLEMENT PERFORMANCE

Seniority Based No raises for length of service

Across the board raises No raises for longer service poor

performers

“Guaranteed” movement of scales Market adjusted pay structure

Industry comparisons only Broader Industry comparisons

“Santa Claus” Bonuses Bonuses tied to performance results


Changing Compensation Strategies

Yesterday Today Tomorrow

Fixed salary Variable pay as add-onto salary

Low fixed salary, morevariable pay

Bonuses/perks forexecutives only

Variable pay emergingthroughout organization

Variable pay commonthroughout the organization

Fixed benefits,reward long tenure

Flexible benefits Portable benefits

Company-basedcareer “moving up”

Industry-based career,“moving around”

Skill-based, interimemployment

Hierarchicalorganizations

Flatter team-basedorganizations

Network “virtual”organizations

“Cookie cutter” payplans

Total compensation(Look at benefits, too)

Customized, integrated paysystems; pay, benefits,intangibles


Quartile Strategy

Third QuartileAbove-Market Strategy Maximum(25% of firms pay above and 75% pay below)

Second QuartileMiddle-Market Strategy Medium(50% of firms pay above and 50% pay below)

First QuartileBelow-Market Strategy Minimum(75% of firms pay above and 25% pay below)


Outcomes from Competency Based Systems

Organization-RelatedOutcomes

Employee-RelatedOutcomes

Greater workforce flexibility Enhanced employeeunderstanding of Organisational“big picture”

Increased effectiveness ofwork Team

Greater employee self-management capabilities

Few bottlenecks in work flow Improved employee satisfaction

Increased worker output Greater employee commitment


DESIGNING EFFECTIVE COMPENSATION PROGRAM

Job Analysis(Job Descriptions, Job

Specifications)

Job Evaluation

Pay Policies Pay Structures

Performance Appraisal

Individual Pay

Implementation, Communication,

Monitoring

Pay Surveys


Salary Structure

Job Evaluation Results

Pay Survey Data

Develop Market Line

Identify DifferentPay Structures

Establish Pay Grades

Compute PayRanges

Revise Pay Grades and

Ranges as Needed

Compare Current Pay to Pay

Ranges


COMPENSATION POLICIES AND PROCEDURES

• Know what the competition is doing and benchmark your structure to reflect competitive practices for retention and recruitment purposes.

• Salaries should reflect level of responsibility employees may have in the organization.

• Form a compensation committee (preferably represented by management and employees).

Contd...173Prof Mamatha, VVISM

COMPENSATION POLICIES AND PROCEDURES

• Create a structure where salaries and any increases reflect company performance as espoused by the compensation committee.

• Develop and document a general company policy and strategy for pay increases.

• Liaison with the compensation committee for review, adjustments and approval.


Team Based Compensation

Types of Team Incentives

Same size reward for each team member Different size rewards for each team member

Criteria for Best Team WorkSignificant interdependence exists among the work of several individuals, and team work and co-operation is absolutely essential.

Contd.. 175Prof Mamatha, VVISM

Team Based Compensation

Difficulties exist in identifying exactly who is responsible for different levels of performance.

Management wants to create or reinforce team work and co-operation among employees

Rewards are seen as being allocated in a fair and equitable manner.


Collective Bargaining


15–178

The Collective Bargaining Process

• What Is Collective Bargaining?– Both management and labor are required by law to

negotiate wages, hours, and terms and conditions of employment “in good faith.”

• What Is Good Faith Bargaining?– Both parties communicate and negotiate.

– They match proposals with counterproposals in a reasonable effort to arrive at an agreement.

– Neither party can compel the other to agree to a proposal or to make any specific concessions.

Prof Mamatha, VVISM

15–179

Classes of Bargaining Items

MandatoryItems

IllegalItems

Categories of Bargaining Items

VoluntaryItems

Prof Mamatha, VVISM

15–180

Impasses, Mediation, and Strikes

• An Impasse – Usually occurs because one party is demanding more

than the other will offer.

– Sometimes an impasse can be resolved through a third party—a disinterested person such as a mediator or arbitrator.

– If the impasse is not resolved:• The union may call a work stoppage, or strike, to put

pressure on management.

• Management may lock out employees.

Prof Mamatha, VVISM

15–181

Strikes

Economic Strike

Unfair Labor Practice Strike

Wildcat Strike

Sympathy Strike

Types of Strikes

Prof Mamatha, VVISM

15–182

Grievances

• Grievance– Any factor involving wages,

hours, or conditions of employment that is used as a complaint against the employer.

• Sources of Grievances– Discipline

– Seniority

– Job evaluations

– Work assignments

– Overtime

– Vacations

– Incentive plans

– Holiday pay

– Problem employees

Prof Mamatha, VVISM

Summing Up

• Compensation & Benefits

• Employee Grievances

• Collective Bargaining


Unit V

Competitive Advantage


People Capability Maturity Model - PCMM







EMPLOYEE EMPOWEREMENT


Employee Empowerment

Participative management has become key word in empowermentThe most important concept of empowerment is to delegate responsibility to the lowest level in organization.The management must trust & communicate with employees


BASIC ASPECTS

AuthorityControlResponsibilityAccountabilityOwnership


FACILITATORS OF EMPOWERED TEAMS


Distinct Features

Share various management and leadership functions

They plan control and improve their own work processes

Set their own goals, inspect their own workCoordinate with other teamsTake responsibility for quality


VVISM


Knowledge Management

Management Vs Knowledge


• Management is an art of getting things done through others.

• An area as justified beliefs about relationships among concepts relevant to that particular area.

Knowledge Management???


• Doing what is needed to get the most out of knowledge resources.

• KM is related to ‘Intellectual Capital’.(IC = Human Capital + Structural Capital)

• HC - Body of knowledge company possesses• SC - Everything remains when employees go home.

Forces Driving KM


• Increasing domain complexity

• Accelerating market volatility

• Intensified speed of responsiveness

• Diminishing individual experience

Alternative views of knowledge

Perspectives on

Knowledge

Subjective View

Objective View

Knowledge as a

state of mind

Knowledge as practice

Knowledge as an object

Knowledge as access to information

Knowledge as capability


Subjective View


• It is socially constructed through interactions with individuals.

• Knowledge is viewed as an ongoing accomplishment, which continuously affects and is influenced by social practice.

Objective View of Knowledge


• It is independent of human perceptions and can be structured in terms of a priori categories and concepts.

• Consequently, knowledge can be located in the form of an object or a capability that can be discovered or improved by human agents.

Types of Knowledge


1. Procedural or Declarative Knowledge

2. Tacit or Explicit Knowledge

3. General or Specific Knowledge

Procedural or Declarative Knowledge


• Procedural knowledge focuses on beliefs relating sequences of steps or actions to desired/undesired outcomes.

• Declarative knowledge is ‘know what’, where as procedural knowledge may be viewed as ‘know how’.

Tacit or Explicit Knowledge


• Explicit knowledge typically refers to knowledge that has been expressed into words and numbers.

• Such knowledge can be shared formally and systematically in the form of data, specifications, manuals, drawings, audio and video tapes, computer programmes, patents, and the like.

Cont…

Tacit or Explicit Knowledge


• Tacit knowledge includes insights, intuitions and hunches. This knowledge is difficult to express and formalize, and therefore difficult to share.

Talent Management


TALENT MANAGEMENT

• Talent Management is a powerful tool that helps a Company stand out against the Competition. It is a key business process that focuses on how the Company manages and invests in their people to meet the business needs. With it, the Company can make the best use of their talent and support the associates’ development consistently worldwide.


BUILDING ON PEOPLE

• The future of the Company depends on clear and aligned business goals and the right people to successfully implement its strategy.

• Our Talent Management process ensures that we identify and match talent with Business requirements, so that we have the leaders ready and in place to achieve our goals.


ROLE OF MANAGERS IN TM

• A significant part of ensuring a successful future relies on the role that our current managers play in identifying and developing their future successors.

• The TM Process supports Managers in addressing skill and ability gaps and provides action plans to close these gaps.


IDENTIFICATION OF TALENT

• Managers identify key positions and high potential people and review individual potential against position requirements.

• Talent Management is the process for identifying our leadership needs and assessing candidates worldwide.


TALENT MANAGEMENT PROCESS

• A concrete idea of the requirements of our key positions

• Objective assessments of individual capabilities

• Alignment of each candidate’s potential and possible professional development.


TALENT MANAGEMENT PROCESS

• Individual Development plans to strengthen the talent pool.

• A strong pool of candidates for key positions

• Plans to resolve succession gaps or blockages


TALENT MANAGEMENT INTERFACES

• Talent Management, Performance Management, Leadership Development and Compensation Management work together to ensure that skilled leaders are in place to meet our business challenges.


TALENT MANAGEMENT

• Identifies talent requirements based on business challenges

• Assesses individual and organizational potential

• Reviews talent and identifies key associates for key positions- short and mid term


TALENT MANAGEMENT

• Defines coaching and development plans and developmental moves

• Initiates filling of gaps through outside recruiting

• Identifies Future Leaders (long term candidates for key positions )


LEADERSHIP DEVELOPMENT

• Grows our talent internally

• Reinforces a culture of continuous learning

• Provides leadership education and on-the-job development


TALENT MANAGEMENT

• Talent Management provides a cross-functional, bottom-up leadership identification and development process owned by line management.

• TM continually identifies leadership requirements, potential leaders and developmental and hiring needs


Summing up

• PCMM

• Levels

• HR Practices

• Knowledge Management

• Talent Management


End of Syllabus
