HRM_VVISM

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Unit – I

Human

Resource Management

1Prof Mamatha, VVISM

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Meaning and Definition

HRM is a management function that

helps managers recruit, select, train and

develop members of an organisation.


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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.


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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 tothe organisation are essential to achieving

organisational objectives.


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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.


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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)


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Importance of HRM

• Social Significance

• Professional Significance

• Significance for individual enterprise


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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


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Importance of HRM

Professional Significance

• Maintain dignity of the employee as human

• Provide maximum opportunities for personaldevelopment

• Provide healthy relationship to different work groups

• Improve skills and capacities

• Minimise wrong postings, allocate work properly


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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


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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


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• PM has limited scope and an inverted orientation

• Viewed labour as a tool for benefits of theorganisation

• Personnel Dept not respected, no productiveemployees

• PM treated as routine activity meant to hire newemployee and maintain personnel records

• Never part of strategic management of business.


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Dimension Personnel HumanResource

EmploymentContract

Written,delineated

Aim to gobeyond

contractRules Clear Outlook,

Impatience

Guide to Mgnt.Action Procedures Business Needs

Behaviourreferent

Norms/Customs and

Practices

Values/Missions


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Dimension Personnel Human Resource

Managerial/Labour task

Monitoring Nurturing

Key Relations Labour

Management

Customer

Initiatives Piecemeal(slow)

Integrated

ManagementRole Transactional Transformationa

l Leadership

Speed of decision Slow Fast


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Communication Indirect Direct

PrizedManagement skill

Negotiation Facilitation

Selection Separate,Marginal task

Integrated, keytask

Pay Job Evaluation(Fixed grades)

Performancebased


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LabourManagement Collective barg-aining contracts Individualcontracts

Job categories

and grades

Many Few

Job design Division of labour

Team work

Conflicthandling Reachtemporary truce Manageclimate andculture

Training &

Development

Controlled

access to

Learning

companies 16Prof Mamatha, VVISM

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Dimension Personnel Human ResourceInterventionfocus

Personnelprocedures

Wide ranging-cultural,structural and

personnelstrategies

Respect foremployees

Labour treatedas tool:expendableandreplaceable

People aretreated as assetsto benefitorganisation/employees/society


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Dimension Personnel HumanResource

Shared interests Organisational

interests areuppermost

Mutuality of

interests

Evolution Precedes HRM Latest in the

evolution of thesubject


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Objectives of HRM

3. Functional:To maintain the department’s contribution at a levelappropriate to the organisation’s needs.

4. Personal:To assist employees in achieving their personal goals, atleast insofar as these goals enhance the individual’scontribution to the organisation.


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HRM Objectives and Functions

• HRM Objectives

1. Societal

• Supporting Functions

1.Legal Compliance

2.Benefits

3.Union management

relationship


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• HRM Objectives

2. Organisational


1.Human Resource Planning

2.Employee Relations

3.Selection

4.Training & Development

5.Appraisal

6.Placement

7.Assessment


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• HRM Objectives

3. Functional


1.Appraisal

2.Placement

3.Assessment


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• HRM Objectives

4. Personal


1.Training & Development

2.Placement

3.Assessment

4.Compensation


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Image & Qualities of HR Manager

• Fairness & Firmness

• Tact and resourcefulness

• Sympathy and consideration• Knowledge of labour other terms

• Broad Social outlook

• Competence


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HR Policies

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

• Policy are required for……

basic needs, consistency in treatment & continuity


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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 tradeunion

• The Royal Commission (1931): Labour Welfare Officers :Selection of workers and settle grievances.


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Evolution of HRM

• Factories Act (1948) Welfare officers compulsory inindustries 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


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Prof Mamatha, VVISM 29

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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 salesvolume) and the number of employees required

• The Scatter Plot – two variables are related

• Computerized Forecasts – more variables takeninto consideration


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Determining the relationship between

hospital size and number of nurses

Size of hospital(no. of beds)

Number of Nurses

200 240

300 260400 470

500 500

600 620

700 660800 820

900 860


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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

• etc


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Any Queries???


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Summing up

• Definition

• Difference between HRM & PM

• Evolution• Objectives

• Scope

• Importance• HR policies

• Demand & Supply forecasting techniquesProf Mamatha, VVISM 34

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Unit II

Employment of Human Resources


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12–36

Managing Human Resources

• Human Resource (HR) Planning

– The process by which managers ensure that theyhave the right number and kinds of people in theright 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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12–37

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

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Job Analysis & Design


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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 productivity


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Various aspects of a job to be

analyzed

• Duties and tasks

• Environment

• Tools and equipment

• Relationship

• Requirements


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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 workingconditions, 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.


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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.


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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.


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Job Design

• Job design has emerged as an important

area of job analysis. It is based on growing

conceptual and empirical base and hascommand research attention and is being

widely applied to actual practice of

management


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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.


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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.


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Job Enrichment

• Another approach to designing jobs is jobenrichment.

• 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.


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Recruitment


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Definition & Meaning

• “How to Attract a Pool of Candidates Who areQualified, Diverse, and Interested in the Job YouHave Open”

• Recruitment is the process of acquiringapplications for specific positions to be filled inthe 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 prospectiveemployees and stimulating and encouraging themto apply for jobs in the organization.


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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


Th “5 W’ ” f R it t

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• 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

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Procedure


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The secret to employeeattraction is employeeretention.

If a compnay has what it takesto 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


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Selection


S

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Selection

•Selection involves a series of steps by which thecandidates 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 anorganization.

• The basic purpose of the selection process is to choose

right type of candidates to man various positions in theorganization. In order to achieve this purpose, a well-organized selection procedure involves many steps and

at each step, unsuitable candidates are rejected.


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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.


S l ti P d

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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


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Placement Procedures


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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.


Obj ti (C td)

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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


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Objectives (Contd)

• Job duties

– Job location

– Job tasks – Job safety needs

– Overview of jobs

– Job objectives

– Relationships with other jobs


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INDUCTION


O i t ti / I d ti

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12–63

Orientation / Induction

• Transitioning a new employee into theorganization.

– 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,

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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.64Prof Mamatha, VVISM

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Separations, Downsizing, Layoff & Retrenchment

• Separations:

– Long leave of absence

– Resignations

– Retirement

– Death

• Downsizing, Layoff & Retrenchment:

– Suspension of an employee

– Dismissal of an employee – Exit interviews


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QUERIES!!!


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Summingup

• HRP

• Job

• Recruitment

• Selection

• Placement

• Induction/Orientation

• Promotions, Transfers, Separation, VRS, etc


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Unit III

Development of Human Resources


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Training & Development

VVISM

,P

GD

M

IISEM,HR

M

69

ProfMamatha,VVIS

M

D fi iti f T i i d

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Definition of Training and

Development

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

satisfactorily.

Development can be defined as preparing theindividual for a future job

-John P. Jkenny


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Development

Development isn't restricted to training -

it's anything that helps a person to grow,

in ability, skills, confidence, tolerance,

commitment, initiative, inter-personalskills, understanding, self-control,

motivation, and more.


Why Training a bird with wings

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Why Training … a bird with wings

INFOSYS

Next Generation Excellerators

Excellent Communication SkillsAdaptive, Adept

Consistent, FlexibleInformed, Inspired, ImaginativeEfficient, Human, HonestRespect for CompetitionEmpowered to scale new domains

People committed to enhancing quality ventures every daySimple solutions to complex problemsWorld Changer, Value creator Powered by intellect and driven by values


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Training & Development Distinctions

Learning

Dimension

Training Development

Who

What

Non-managers

Technical

Mechnaical Oper.

Managers

Theoretical

Conceptual ideasWhy

When

Specific job

related info.

Short term

General knowledge

Long run74Prof Mamatha, VVISM

Goal of Training &

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Goal of Training &

Development

Microsoft

The goal of Training & Development at Microsoft is

to achieve an optimal match between eachemployee's professional growth and Microsoft's

business objective


TRAINING CYCLE

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TRAINING CYCLE


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L i Th

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Learning Theory

“A relatively permanent change in behaviour

that occurs as a practice or experience”

Bernard Bass


Learning Curves

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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 pastexperience and knowledge, who are not suitably motivated or or

are affected by other psychological constraints have a slower starte.g.:APDISCOM)

3. Learning Plateau(Learners reach a of standstill-wrong assumption of limit of capacity-learner absorbing/un learning

Solution-Analyse, reinforce, incentive, bridge )


On-the-Job Training

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On the Job Training

• Advantages

• No specific facilities needed• Real life situation/not

simulated

• Productivity

• Trainee establishes relationsfrom start

• No ‘off-the-job’ cost

• Learning can be controlled

• Disadvantages

• Risk to machines andincrease in scrap

• Part-time instructor may

lack skill in training

• Lack of time due to

pressure of production

• Psychological pressure

before experiencedworkers


Off -the- Job Training

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Off -the- Job Training• ADVANTAGES

• Relaxed atmosphere,awayfrom 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 fromhome(lengthy training)


The Three Classifications of

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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?

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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 usethe learning, case, game, role play)


“It is vital to a valuable education thatindependent critical thinking be developed

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independent critical thinking be developedin the young human being, a developmentthat is greatly jeopardized byoverburdening him too much and with toovaried subjects. Overburdening necessarilyleads to superficiality. Teaching should be

such that what is offered is perceived as avaluable gift and not as a hard duty”-Albert Einstein

Thank you..


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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)


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Difference between Aims and Objectives

Aims: General purpose which provides a

direction or statement of intent-desired outcome

e.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

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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)


P i t t id i S tti

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Points to consider in Setting

Objectives

1. Realistic

2. Relevant

3. Positive4.Certain

5.Justifiable


Performance Appraisal -

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90

Performance Appraisal

Definition

• Performance Appraisal is a process of evaluating an employee’sperformance 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 athing

• Performance Appraisal is a process of evaluating the performanceand qualifications of the employees in terms of the requirementsof the job for which he is employed for purposes of administration

including placement, selection for promotions, providing financialrewards and other other actions which require different treatmentamong the members of a group as distinguished from actionsaffecting all members equally”

Prof Mamatha, VVISM

Importance and Purpose of

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91

p p

PA

• PA provides useful in making decisions regarding various personalaspects 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 trainingand 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 withwhich they may judge future job assignments and compensation

Prof Mamatha, VVISM

Objectives of Performance

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Objectives of Performance

Appraisal

• To enable an organisation to maintain an inventoryof the number and quality of all managers and toidentify and meet their training needs and

aspirations

• To determine increment rewards, and provide areliable index for promotions and transfers to

positions of greater responsibility

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

Prof Mamatha, VVISM

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Criteria’s for assessing performance

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94

Criteria’s for assessing performance

• Quality

• Quantity

• Timeliness

• Cost effectiveness

• Need for Supervision

• Interpersonal impact• Training

Prof Mamatha, VVISM

Approaches to Performance

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95

pp

Appraisal

• A Casual, unsystematic and often haphazard approach – This method was used in the past, main basis beingseniority or quantitative measures of quality and

quantity of output for the personnel• Traditional and highly systematic measurement –

Employee characteristics, employee contributions. Theratings obtained of separate personnel arecomparable.

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

Prof Mamatha, VVISM

Methods, Techniques or Tools

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96

, q

for appraising performance• Methods include Traditional and Modern

Methods

Prof Mamatha, VVISM

Methods of Performance Appraisal

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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 AnchoredRating Scales

Prof Mamatha, VVISM

Traditional methods of Performance

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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 placedin 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 isdesigned 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 analyticalability, co-operativeness, dependability, job

knowledge, judgement etc


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101

• 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 andthe 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 giveconsistently 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.


Prof Mamatha, VVISM

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103

• 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 personnelmay not be placed at the higher end or lower

end.


Prof Mamatha, VVISM

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104

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

employee performance. He supplies reports about theemployees 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 workdone well?

• Does he ever make mistakes?


Prof Mamatha, VVISM

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105

• 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 hisimpressions about the employee. No attempt

is made to evaluate an employee in a

quantitative manner.


Prof Mamatha, VVISM

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106

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

armed forces in the US during World War II. The basis of thismethod is the principle that “ there were certain significant acts ineach 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 performancereview 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


Prof Mamatha, VVISM

M h d f P f A i l

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107

• 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 butthis is time-consuming.


Prof Mamatha, VVISM

M th d f P f A i l

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108

• 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 aboutstrengths 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,


Prof Mamatha, VVISM

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109

Modern methods of Performance Appraisal

Prof Mamatha, VVISM

Management by Objectives (MBO)

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110

• 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 settingbetween the manager and the subordinate andincreasing the subordinate’s own control of his work.

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

Management by Objectives (MBO)

Prof Mamatha, VVISM

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Management by Objectives - Process

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113

• MBO has five steps

– Set organisation goals

– Joint goal setting

– Performance reviews

– Set checkposts

– Feedback

Management by Objectives Process

Prof Mamatha, VVISM

B fit f MBO

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114

• MBO helps and increases employee motivation because itrelates overall goals to the individual’s goals and helps toincrease an employee’s understanding of where theorganisation is and where it is heading

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

• MBO reduces role conflict and ambiguity.

• MBO provides more objective appraisal criteria.

Benefits of MBO

Prof Mamatha, VVISM

B fit f MBO

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115

Benefits of MBO

MBO forces and aids in planning

MBO identifies performance deficiences and

enables the management and the employees to setindivisualised self improvement goals and thusproves effective in training and development of people.

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

Prof Mamatha, VVISM

Assessment Centre Method

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116

• The assessment centre concept was initially applied to militarysituations 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 situationusing number of assessors and variety of procedures.

• In this process, many evaluators join together to judge employeeperformance 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 employeesand involves a paper and pencil test, interviews and situational

exercises.

Assessment Centre Method

Prof Mamatha, VVISM

Purpose of Assessment Centres

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117

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

• To determine individual training and developmentneeds of employees

• To select recent college students for entry levelpositions

• To make an early determination of potential

• To assist in implementing affirmative action goals

Purpose of Assessment Centres

Prof Mamatha, VVISM

Human Asset Accounting Method

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118

• This refers to activity devoted to attachingmoney 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

Prof Mamatha, VVISM

Behaviourly Anchored Rating Scales

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119

• This is a new appraisal technique which hasrecently developed.

• This provides better , more equitable appraisalsas 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

y g

(BARS)

Prof Mamatha, VVISM

Advantages of Behaviourly Anchored

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120

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

• Clear standards

• Feedback

• Independent dimensions

• Rater – independence

g y

Rating Scales (BARS)

Prof Mamatha, VVISM

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

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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

M t

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Management

10–122Prof Mamatha, VVISM

The Employer’s Role in

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Career Development

10–123

Realistic JobPreviews

ChallengingFirst Jobs

Networking

andInteractions

Mentoring

Career-Oriented

Appraisals

JobRotation

Employer’sRole

Prof Mamatha, VVISM

Managing Promotions andTransfers

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Transfers

10–124

Decision 1:Is Seniority

orCompetence

the Rule?

Decision 4:Vertical,

Horizontal,or Other?

Decision 2:How ShouldWe MeasureCompetence

?

Decision 3:Is the

ProcessFormal orInformal?

Making PromotionDecisions

Prof Mamatha, VVISM

Career Management and

E l C i

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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 asyou’re here, and we’ll

provide you with thedevelopmental opportunitiesyou’ll need to move on andhave a successful career.”

Comparing Yesterday’s andToday’s

Employee-Employer Contract

Prof Mamatha, VVISM

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Career Management andEmployee Commitment

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Employee Commitment

(cont’d)

10–127

Career

Development Programs

Career-

OrientedAppraisals

Commitment-

OrientedCareerDevelopment Efforts

Prof Mamatha, VVISM

Attracting and Retaining Older

Workers

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Workers

10–128

Create a Culture thatHonors Experience

Offer Flexible Work

Offer Part-Time Work

HRPracticesfor OlderWorkers

Prof Mamatha, VVISM

Taking Steps to Enhance Diversity:

W ’ d Mi iti ’ P t

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Women’s and Minorities’ Prospects

10–129

Take TheirCareer

InterestsSeriously

EliminateInstitutional

Barriers

Eliminate theGlass Ceiling

ImproveNetworking

andMentoring

InstituteFlexible

Schedulesand Career

Tracks

Prof Mamatha, VVISM

Identify Your Career Anchors

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y

10–130

Technical/

FunctionalCompetence

Managerial

Competence

Autonomy

andIndependence

Creativity

Security

Prof Mamatha, VVISM

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Coaching & Mentoring


Personal Coaching

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g

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

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e o g• Mentoring is a tool that organizations can use to nurture

and grow their people. It can be an informal practice or aformal 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

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g g

Mentoring

• Broad

• long-term• level-distant

• cross-functional

• providing guidance

Coaching

• Job specific

• Short-term• Level-close

• Same-function

• Giving advice



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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


Evolution

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Evolution

Traditional• 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

competent136Prof Mamatha, VVISM

Why Mentoring

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y g

• Encourages knowledge sharing

• Both parties Develop

• Encourages teamwork • Addresses specific issues or skills

• Supplements on-the-job training

• Promotes leadership development


-Global Findings-

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• 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)


Zone of Impact

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p

Habits

Behavior

Mindset

What? Why?

Knowledge

Want ToHow To?Skills Attitude&

Desire


Mentor- Mentee Relationship

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p

A dynamic association or pairing

between an individual who needs tolearn and another who is willing to

help and guide the learner.


Stages in the Development of Mentoring Relationships

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Mentoring Relationships

Stage 1: The mentor and recipient become acquainted and informallyclarify 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

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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 required142Prof Mamatha, VVISM

Types Of Mentoring

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Situational 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 achievement143Prof Mamatha, VVISM

Methods of Mentoring

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The Standard/ Traditional method

The Peer Mentoring Method

The Team Mentoring Method


4 Types of Coaching

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1. Counseling

2. Encouraging & Mentoring

3. Training4. Confrontation


What Mentoring is not

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• 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

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e e to g

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


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"The best mentors are the people in your life

who push you just a little bit outside your 'comfort zone.' "

-- Leigh Curl 148Prof Mamatha, VVISM

Mentor Competencies

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Trustworthy and open

High Integrity

Active listener

Catalyst for learning

Commitment builder

Enthusiasm to share


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“Tell me, and I’ll forget.

Show me, and I may remember.

Involve me, and I’ll understand.”


The four “C’s” of Coaching

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Confidence

Control

Concentration

Commitment


To be a good coach you need to:

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Motivate your staff – empower your employees

Hone your communication skills

Counsel your staff – stop problemsituations before they get out of hand

Exercise good judgment

Utilize available talent – they will bemotivators for other staff


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"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

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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 MythsMentoring Myths

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• 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


Evaluation Of A Mentor Program

Someone in the organization needs to be

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Someone in the organization needs to be

responsible for:Moving the mentor program forward in a positive direction

Providing 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 program

Addressing any problems or unmet needs that emerge

during the course of the year .


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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

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• Training• Performance Appraisal

• Mentoring

• Career Planning

• Mgt Development, Organization

Development, Executive Development


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Unit IV

Management of Human Resources &

Industrial Relations


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COMPENSATION PACKAGE


What is Compensation ?

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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

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• Legal Compliance with all appropriate laws andregulations

• Cost effectiveness for the organization

• Internal, External and Individual equity for employees

• Performance enhancement for the organization


Compensation Types

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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

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-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

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• Compensation Philosophies

– Strategic Compensation Design

– Compensation and Organizational Culture – Cost Effectiveness and Labour Market

Positioning

• Competency Based Pay

• Broadbanding and Career Development


Compensation Philosophy

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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

StrategiesY t d T d T

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Yesterday Today Tomorrow

Fixed salary Variable pay as add-on

to salary

Low fixed salary, more

variable pay

Bonuses/perks for

executives only

Variable pay emerging

throughout organization

Variable pay common

throughout the organization

Fixed benefits,reward long tenure

Flexible benefits Portable benefits

Company-based

career “moving up”

Industry-based career,

“moving around”

Skill-based, interim

employment

Hierarchical

organizations

Flatter team-based

organizations

Network “virtual”

organizations

“Cookie cutter” pay

plans

Total compensation

(Look at benefits, too)

Customized, integrated pay

systems; pay, benefits,

intangibles


Quartile Strategy

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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

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y

Organization-RelatedOutcomes

Employee-RelatedOutcomes

Greater workforce flexibility Enhanced employee

understanding of Organisational“big picture”

Increased effectiveness of

work Team

Greater employee self-

management capabilities

Few bottlenecks in work flow Improved employee satisfaction

Increased worker output Greater employee commitment


DESIGNING EFFECTIVE

COMPENSATION PROGRAM

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Job Analysis(Job Descriptions, Job

Specifications)

Job Evaluation

Pay Policies Pay Structures

PerformanceAppraisal

Individual Pay

Implementation,Communication,

Monitoring

Pay Surveys


Salary Structure

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Job Evaluation

Results

Pay Survey Data

Develop MarketLine

Identify Different

Pay Structures

Establish Pay Grades

Compute PayRanges

Revise Pay Gradesand

Ranges as Needed

Compare CurrentPay to Pay

Ranges


COMPENSATION POLICIES AND

PROCEDURES

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• Know what the competition is doing andbenchmark your structure to reflect competitivepractices for retention and recruitment purposes.

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

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

Contd...173Prof Mamatha, VVISM

COMPENSATION POLICIES AND

PROCEDURES

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PROCEDURES

• Create a structure where salaries and any

increases reflect company performance as

espoused by the compensation committee.

• Develop and document a general companypolicy and strategy for pay increases.

• Liaison with the compensation committee for

review, adjustments and approval.


Team Based Compensation

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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 isabsolutely essential.

Contd..175Prof Mamatha, VVISM

Team Based Compensation

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Difficulties exist in identifying exactly who isresponsible 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.


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Collective Bargaining


The Collective BargainingProcess

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15–178

• 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 areasonable 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

Classes of Bargaining Items

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15–179

MandatoryItems

IllegalItems

Categories of Bargaining Items

VoluntaryItems

Prof Mamatha, VVISM

Impasses, Mediation, andStrikes

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15–180

• 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

Strikes

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15–181

Economic Strike

Unfair Labor PracticeStrike

Wildcat Strike

Sympathy Strike

Types of Strikes

Prof Mamatha, VVISM

Grievances

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15–182

• 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

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Unit V

Competitive Advantage


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People Capability Maturity

Model - PCMM


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EMPLOYEE EMPOWEREMENT


Employee Empowerment

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Participative management has become key wordin empowerment

The most important concept of empowerment is

to delegate responsibility to the lowest level in

organization.The management must trust & communicate

with employees192Prof Mamatha, VVISM

BASIC ASPECTS

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Authority

Control

Responsibility

Accountability

Ownership


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FACILITATORS OF EMPOWERED TEAMS


Distinct Features

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Share various management and leadershipfunctions

They plan control and improve their own work

processesSet their own goals, inspect their own work

Coordinate with other teams

Take responsibility for quality


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VVISM


Knowledge Management

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Knowledge Management???

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• 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

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• Increasing domain complexity

• Accelerating market volatility

• Intensified speed of responsiveness

• Diminishing individual experience

Alternative views of knowledge

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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

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• It is socially constructed through interactionswith individuals.

• Knowledge is viewed as an ongoing

accomplishment, which continuously affectsand is influenced by social practice.

Objective View of Knowledge

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• It is independent of human perceptions andcan be structured in terms of a priori categoriesand concepts.

• Consequently, knowledge can be located in the

form of an object or a capability that can bediscovered or improved by human agents.

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Procedural or DeclarativeKnowledge

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• Procedural knowledge focuses on beliefsrelating sequences of steps or actions to

desired/undesired outcomes.

• Declarative knowledge is ‘know what’, whereas procedural knowledge may be viewed as

‘know how’.

Tacit or Explicit Knowledge

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

• Such knowledge can be shared formally andsystematically in the form of data, specifications,

manuals, drawings, audio and video tapes, computer programmes, patents, and the like.

Cont…

Tacit or Explicit Knowledge

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• Tacit knowledge includes insights, intuitionsand hunches. This knowledge is difficult to

express and formalize, and therefore difficult

to share.

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Talent Management


TALENT MANAGEMENT

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• Talent Management is a powerful tool thathelps 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

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

• Our Talent Management process ensures that

we identify and match talent with Businessrequirements, so that we have the leadersready and in place to achieve our goals.


ROLE OF MANAGERS IN TM

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• A significant part of ensuring a successfulfuture 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

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• 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 MANAGEMENTPROCESS

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• 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 MANAGEMENTPROCESS

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• Individual Development plans to strengthenthe talent pool.

• A strong pool of candidates for key positions

• Plans to resolve succession gaps or blockages


TALENT MANAGEMENTINTERFACES

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• Talent Management,PerformanceManagement, LeadershipDevelopment and

CompensationManagement work together to ensure thatskilled leaders are in place to meet our business challenges.


TALENT MANAGEMENT

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• 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

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• Defines coaching and development plans anddevelopmental moves

• Initiates filling of gaps through outside

recruiting• Identifies Future Leaders (long term

candidates for key positions )


LEADERSHIP DEVELOPMENT

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• Grows our talent internally• Reinforces a culture of continuous learning

• Provides leadership education and on-the-job

development


TALENT MANAGEMENT

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• 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

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• PCMM• Levels

• HR Practices

• Knowledge Management• Talent Management


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End of Syllabus

Documents

HRM_VVISM