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Human Resource Management
Q.1 Trace the phases of evolution of human resource management.
The historical background to the management techniques of human resources are invogue since ancient times. Its only in the past 100 odd years that the techniques and
study of human behaviour at work has become formal and structured with certain basicpractices established as core and a host of other practices left to each organization to
design and implement as per their individual business driven practices. As per Fisher,Schonfeldt and Shaw, in their book titled Human Resources Management, they have
characterised the history of HRM as having evolved through four broad phases, the Craftsystem, the scientific system, the human relations approach and the prevalent
organizational science-human resources approach.
The Craft system refers to early trends noticed in Egypt and Babylon, where skills based
training was provided to people to ensure a steady flow of craftsmen required to buildhuge monuments. By the 13
thcentury, subsequently the trend was noticed in Europe and
later craft guilds evolved to ensure not only the skill acquisition but regulate theconditions of employment, level of skill and improved production techniques. Most
relevant in the domestic industry where generations of skilled workers trained andbecame experts in a particular skill.
The Scientific Management approach was a key part of the industrial revolution typicalof the nineteenth and early twentieth century. It was instilled in the principles of massproduction and organization of work simple work skills and supervisory/managerial
skills. This rapidly emerged as the assembly line approach to managing workflow, whichlater Fredrick Taylor (1856-1915) pioneered based on the philosophy that employees
wanted to be used efficiently and money being the primary motivator. Over a period oftime this was proved wrong as employee dissent grew and union issues surfaced. It was
during this phase that employee welfare as a key HR practice emerged which redressedemployee issues like recreational facilities, medical program and employee grievance
systems.
The Human Relations approach was an outcome of the famous studies undertaken byUS social scientist Elton Mayo and Fritz Roethlisberger at the Western ElectricsHawthorne plant in Chicago.
The Hawthorne Studies: As described in virtually every book written about management,
the human relations or behavioral school of management began in 1927 with a group ofstudies conducted at the Hawthorne plant of Western Electric, an AT&T subsidiary.
Curiously, these studies were prompted by an experiment carried out by the companys
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engineers between 1924 and 1932. Following the scientific management tradition, theseengineers were applying research methods to answer job-related problems.
Two groups were studied to determine the effects of different levels of illumination on
worker performance. One group received increased illumination, while the other did not.
A preliminary finding was that, when illumination was increased, the level ofperformance also increased. Surprisingly to the engineers, productivity also increasedwhen the level of illumination was decreased almost to moonlight levels. One
interpretation made of these results was that the employees involved in the experimentenjoyed being the centre of attention; they reacted positively because management cared
about them. The reason for the increase in the production was not the physical but thepsychological impact of the employees attitude towards the job and towards the
company. Such a phenomenon taking place in any research setting is now called theHawthorne effect.
As a result of these preliminary investigations, a team of researchers headed by Elton
Mayo and F.J. Roethlisberger from Harvard conducted a lengthy series of experimentsextending over a six year period. The conclusions they reached served as the bedrock of
later developments in the human relations approach to management. Among their keyfindings were the following:
Economic incentives are less potent than generally believed ininfluencing employees to achieve high levels of output.
Leadership practices and work-group pressures profoundly influence employee
satisfaction and performance.
Any factor influencing employee behaviour is embedded in a socialsystem. For instance, to understand the impact of pay on performance, you also have to
understand the climate that exists in the work group and the leadership style of thesuperior.
Leadership Style and Practices: As a consequence of the Hawthorne Studies, workerattitudes, morale, and group influences became a concern of researchers. A notable
development of the nature occurred shortly after World War II at the University ofMichigan. A group of social scientists formed an organization, later to be called the
Institute for Social Research, to study those principles of leadership that were associatedwith highest productivity.
Finally the Organizational Sciences approach to human resources management has
brought the focus to the scientific process within organizations that can impact employeeexperience, and less on just the individual. Todays organizations focus on building theirprocesses and policies and compete to emerge as preferred employers (best employer).
It is not uncommon for competing organizations to woo the employees through
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advertising more and better employee-friendly initiatives like work-from-home jobs,careers for married couples, global work assignments and internal job postings and world
class workplace infrastructures from in-campus cricket grounds to gymnasiums foremployee wellbeing. This is the HR that we now see around us.
Q.2 Explain the various techniques and methods used in selecting
employees.
There is no shortcut to fair and accurate evaluation of a candidate. As mentioned earlier,the hiring procedures are therefore, generally long and multiple. Organizations are
constantly evaluating the selections tools they use to hire and keep innovating to ensurethey hire quality candidates.
The following are popular methods commonly used:
1 Initial or preliminary interview
2 Application blank or blanks.
3 Check of references.
4 Skill / Psychological tests.
5 Employment interview
6 Approval by the manager.
7 Medical examinations.
8 Induction or orientation.
1. Preliminary Interview: The more non-selective the recruitment program, the more
likely it is that a preliminary interview will be required. This initial interview is usuallyquite short and has as its object the elimination of the obviously unqualified. In manyinstances it is a over-telephone / short face-to-face interview conducted at a desk. The
facts and impressions collected are of the type generally obtained in an initial interview.Many firms do not bother to initiate any paperwork at this early stage. If the applicant
appears to have some chance of qualifying for existing job openings, he or she is giventhe application blank to complete.
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2 Application Blank: An application blank is a traditional, widely accepted template forgetting information from a prospective applicant. This enables the recruiter to qualify the
candidate to the next level in the selection process and is used extensively subsequently
during the selection process. The blank aids in the interview by indicating areas ofinterest and discussion. It is a good means of quickly collecting verifiable basic historicaldata from the candidate. It also is a excellent document to share with the manager and
with the interviewers and is a useful device for storing information for, later reference.These templates generally carry information on biographical data, educational attainment,
work experience, salary, personal items, and other items such as names and addresses ofprevious employers, references etc.
3 Check of References: The use of references is common in most selection procedures.
It involves minimum of effort and time/money. The objective is to obtain evaluation ofprior employers and professional colleagues, who have known the candidate in aprofessional capacity. Checks on references are made by mail or telephone, and
occasionally in person, and by using a reference form.
4 Skill & Psychological Tests: The next step in the procedures outlined above is that oftesting. The use of tests is common and most popular in the lower levels in an
organization. It serves as a excellent qualifying criteria and in jobs that are dependent ona skill or a specific competency it is very useful. The objectivity of the test results make it
especially popular and a fair assessment of the individual.
Most organizations do not use psychological tests. However, there is a direct relationship
between the size and firm and the use of such tests in hiring. Most of the largercompanies that can afford to have a more detailed and accurate selection procedure do
utilize some form of employment testing. It is the smaller company that frequently doesnot bother with tests, but places greater reliance upon the interview.
5 Interviewing: Interviewing is probably the most widely used single method of
selection. A substantial amount of subjectivity, and therefore, unreliability, is to beexpected from interviewing when used as a tool of evaluation.
The interview consists of interaction between interviewer and applicant. If handledproperly, it can be a powerful technique in achieving accurate information and getting
access to material otherwise unavailable. Organizations aware of the challenges of usinginterviews have come up with a variety of ways to overcome the subjectivity. The use of
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multiple rounds of interview (even up to 8-10 rounds) and use of panel interviews aresome common work-around.
Four kinds of interviews for selection have been identified. These are:
1.Preliminary interview:
These interviews are preliminary screening of applicants todecide whether a more detailed interview will be worthwhile. The applicant is given jobdetails during the interview to afford him freedom to decide whether the job will suit him.
This method saves the companys time and money.
2.Stress interview: Stress interviews are deliberate attempts to create pressure to observe
how an applicant performs under stress. Methods used to induce stress range fromfrequent interruptions and criticism of an applicants opinion, to keeping silent for an
extended period of time. The most important advantage of the stress interview is that
helps to demonstrate important personality characteristics which would be difficult toobserve in tension-free situations. However, stress-inducing must be done carefully bytrained and skilled interviewers.
3.Depth interview: Depth interviews cover the complete life history of the applicant andinclude such areas as the candidates work experience, academic qualifications, health
interest, and hobbies. It is an excellent method for executive selection, performed byqualified human resources.
4.Patterned interview: Patterned interviews are a combination of direct and indirect
questioning of the applicant. The interviewer has certain clues and guidelines to areaswhich should be probed deeply and the interview also encourages the candidate to
express the relevant information freely.
After the patterned interview is complete, the interviewer should evaluate the candidate
on the basis of practical experience. According to R.N. McCurry and others, certainfactors lead to accurate predictions of the candidates suitability for a particular position.
The factors are: (1) basic character traits, (2) motivation, and (3) emotional maturity. One
advantage of a patterned interview is that systematic and chronological information isobtained, and hence this yields to statistical analysis.
6. Approval by the Manager: Following the outlined procedure, we should now be ofthe opinion that a candidate who has successfully completed all steps so far should be
hired. In executing the recruitment unit screening functions, the emphasis tends to bemore on formal qualifications and general suitability. When the manager takes over, the
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emphasis tends to switch toward more specifically job oriented worker characteristicssuch as training and relevant past experience.
7. Medical Examination
: The medical examination is an employment step found inmost businesses. It can vary from a very comprehensive examination and matching of an
applicants physical capabilities to job requirements to a simple check of general physical
appearance and well-being. In the selection procedure the physical examination has atleast three basic objectives. First, it serves to ascertain the applicants physical
capabilities.
The second objective of the examination is to protect the company against unwarranted
claims under workers compensation laws, or against lawsuits for damages. And the finalobjective is to prevent communicable diseases from entering the organization.
8 Induction: Induction is concerned with introducing or orienting a new employee to the
organization. Organizations could have induction programs of duration of1-3 days and even up to 1/3/6 months. Common objectives of an Induction program can
be listed as covering:
1. Overview of the organization, its history, its heros and important stories in the life of
the firm so far like mergers, acquisitions, JVs, expansion in new countries etc
2. Organization Vision / Mission and Objectives statement, its structure, hierarchy of the
top and the senior management, structure of the teams/divisions, focus on the division theemployee/s is/are joining
3. Overview of the HR policies and processes and introduction to the Facilities team, ITteam and other relevant teams per the location of joining.
4. Handover to the manager and induction at a team level on specificities related to thejob and its responsibilities.
Organizations also build processes by which the new employee provides feedback on the
on boarding experience and use this information to improve the Induction process. In as
much as various firms report that over half of their voluntary resignations occur withinthe first 6 months, proper orientation can do much to reduce this problem and itsaccompanying costs.
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Q.3 A company is being set up by a group of 3 professionals. The
business objective is to sell mobile phones of a Chinese company which
has come up with an inexpensive range of handset ranging from Rs.1200
to Rs.7000. They need to submit a human resource plan to their
investors. Explain the process of Human Resource Planning system for
this company, which covers all important steps needed for HRP.
Human resource or manpower planning is 'the process by which a management
determines how an organization should move from its current manpower position to its
desired manpower position. Through planning, a management strives to have the right
number and the right kind of people at the right places, at the right time, to do things
which result in both the organization and the individual receiving the maximum long-
range benefit".
Human Resource planning is the predetermination of the future course of actioin chosenfrom a number of alternatives.
HR planning is the processes including forecasting, developing and controlling by whicha firm course that it has the right number of people and right kind of people at the right
places at the right time doing work for which they are economically most useful.The characteristic of according to this company is that (HRP): They are:
1. Human resource plan most incorporate the human resource needs in the light oforganisational goals.
2. H.R. plan must be directed towards well defined objectives3. H.R.P must ensure that it has the right number of people and the the right kind of
people at the right time, doing work for which they are economically most useful.
4. H.R.P should have the way for an effective motivational process.5. A human resource plan should take into account the principle of periodical
reconsideration of new development and extending the plan to cover the chargesduring the given long period.
HR planning is a highly important and useful activity without clear cut planning, an
estimation of the organsations human resource needs is reduced to more success work.1. Planning defines future manpower needs and this becomes the basis or recreating
and developing personal
2. Employees can be trained, motivated and developed in advance and this helps inmeeting future needs for high quality employee
3. change in technology has attached more importance to knowledge and skillsresulting in surplus manpower in some areas and shortage in other areas. HR
planning helps in creating balance in such a situation.
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4. Jobs are becoming more and more knowledge oriented. This has resulted in achanged profile of H.R because of increased emphasis on knowledge, recruitment
costs have also increased.
Human Resource Planning is not only done by organizations and corporate bodies. It is aprevalent practice at different levels:
i) At the countrys national level, it is generally done by the Government and coversitems like population projections, programme for economic development, basic and
advanced educational infrastructure and opportunities, occupational distribution acrossurban and rural areas, industrial and geographical mobility of employable people.
ii) At the state level, it may be done by the state government and would includemanpower planning for the needs of the agricultural, industrial and service sector.
iii)A
t the specific industry level, it would include manpower needs forecast for specificindustries, such as engineering, heavy industries, consumer goods industries, publicutility industries, etc.
iv) At the level of the individual organization/ unit, it would relate to the planning of
manpower needs for each department and for various types of personnel.
Human Resource Planning System
The steps in the HRP process is a systematic set of activities carried out in achronological manner. Each step needs to be evaluated and debated with all possibleinformation gathered from the external as well as internal environment.
A. Purpose of Human Resource Planning: Human Resource Planning fulfils individual aswell as organizational goals. What it essentially amounts to is striking a balance
between the future human resources needs and the future enterprise needs. And this isdone with the clear objective of maximizing the future return on investment in human
resources. And this objective may be laid down for a short-term (i.e. for one year).
B.Estimating/Forecasting the future Manpower Requirements: the first step in the
process is to arrive at the desired organizational structure at a given point in time.Mapping this structure with the existing structure helps in identifying the gap in resourcesrequirement. The number and type of employees needed have to be determined. In
addition to the structure there are a number of external factors that affect thisdetermination. They include business forecasts, competitor strategy, expansion plans,
product/skills mix changes, profit/revenue growth projections, in addition to managementphilosophy and government policies. This step also includes an analysis of the external
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labour/talent environment, its demographics, demand/supply of the required talent, andcost considerations.
Forecastingprovides the basic premises on which manpower planning is done.
Forecasting is necessary for various reasons, such as:
a) The challenges of the general economic business cycles have an influence on the short-range and long-run plans of all organizations. These are inflation, wages, prices, costs
and raw material supplies.
b) An expansion / growth initiative might need the business to use additional machinery
and personnel, and a re-allocation of facilities, all of which call for adequate advanceplanning of human resources.
c) Changes in management philosophies and top management leadership styles.
d) The use of new technology (such as the introduction of automatic controls, or themechanization of materials handling functions) requiring a change in the skills ofworkers, as well as a change in the number of employees needed.
e) Very often, changes in the quantity or quality of products or services require a changein the organization structure. Plans have to be made for this purpose as well.
C. Auditing Human Resources: Once the future human resource needs are estimated, the
next step is to determine the present supply of manpower resources. This is done throughwhat is called "Skills Inventory". A skills inventory contains data about each employees
skills, abilities, work preferences and other items of information which indicate his worth
to the company. Skills inventory are also referred to as competency dictionaries. Thisinformation is usually retained as part of the performance management system with theHR department. This step in the HRP system helps identify the existing profile of the
manpower and its efficiency. It helps highlight where the organization is vs. where itought to be. The step concludes with identifying clear gaps in the skills / manpower mix
required to meet the upcoming business objectives.
D.Job Analysis: After having decided how many persons would be needed, it isnecessary to prepare a job analysis. The recorded details of training, skills, qualification,
abilities, experience and responsibilities, etc. as needed for a job are studied. Job analysisincludes the preparation of job descriptions and job specifications.
E.Developing a Human Resource Plan: This step refers to the development andimplementation of the human resource plan, which consists in finding out the sources of
labour supply with a view to making an effective use of these sources. Some importantconsiderations at this point are:
F: Specific roles/disciplines being hired for, of them which roles are pivotal for the
business
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y Competencies and capabilities neededy Manager vs. employee hiring
y Hire internally vs. External sourcingy Planning for new skills through training existing staff vs. hiring new teams
y In case of surpluses, planning for redeployment / reduction in workforce as
requiredy Succession planning for key positions in the company
Q.4 Explain Thayer and McGhee Assessment of training requirement
model.
Assessment of Training Requirement: Given the investment that organizations make
in training it is critical for organizations to ensure that the money is rightly spent.Training needs consider both the organizations demands and that of the individuals.
Diversification of product lines, new technology, and hence a new kind of job, or a shiftin organizational culture or ways of conducting business are common organizational
needs that cover most employees in the company. On the other hand demands that pertainto individuals growth and development, including induction training for new hires, or
training necessitated by job rotation due to an organizations internal mobility policies areexamples of individual need based training.
The model we shall examine here is the Thayer and McGhee model. It is based on thefollowing three factors:
1. Organization analysis
2. Task analysis
3. Individual analysis
1O
rganization Analysis: Total Organization Analysis is a systematic effort tounderstand exactly where training effort needs to be emphasized in an organization. It
involves a detailed analysis of the organization structure, objectives, human resourcesand future business plans, and an understanding of its culture.
The first step in organization analysis is establishing a clear understanding of both short-run and long-run business and people goals. Long-term objectives are the broad
directions in which the organizations would move over a long duration. These long-term
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objectives are then broken down into specific strategies and short-term goals for each ofthe units/departments. In an organization, the cumulative effect of all these would
ultimately lead to the long-term goal. Short-term goals are constantly in need ofadaptation to the changing environment, both external and internal.
For an organization analysis, there are three essential requirements:
(1) an adequatenumber of employees available to ensure fulfilment of the business operation; (2) thatemployee performance is up to the required standard; and (3) that the working
environment in their units/departments is conducive to fulfilment of tasks.
In order to ensure the first two requirements a human resource inventory needs to bemade. Data regarding positions, qualifications, vacancies, replacements and training time
required for replacements have to be worked out. Job standards must also be worked out.
Various efficiency and productivity indexes, or ratios such a productivity ratios, cost per
unit etc, can be worked out to determine not only efficiency but also adequacy, in terms
of under-manning or over-manning, of the workforce.
An important dimension of organizational need-based analysis, is the diagnosis of the
state of the organization "climate" or culture. While rules, procedures, systems andmethods all contribute to the making of the environment, much of it is also determined by
the attitude that the "people" have in the organization-for instance, the attitude that topmanagement has towards its subordinate staff and the attitudes that members have
towards work, Managers and company procedures. These attitudes are learnt, they resultfrom the persons experience both within and outside the organization, and training
inputs could be used to effect changes of attitude and consequently of the organizationalclimate.
In analyzing the organization climate, both direct and indirect methods could be used.
Direct methods are observation, use of questionnaires, and interviews. Reliance orindirect methods would not give a clear understanding of the attitudes and predispositions
of employees. In fact, factors such as low absenteeism and low turnover are not bythemselves indicators of positive or negative attitudes, and high or low morale. It would
be better to make a careful analysis and study each indicator in a particular situation inconjunction with more direct methods like attitude surveys. Analysis and interpretation of
the data may give clear clues not only to attitudinal training needs but possibly also to killtraining needs.
2. Task Analysis: This activity entails a detailed examination of each job, itscomponents, its various operations and the conditions under which it has to be performed.
The focus here is on the "task" itself and the training required to perform it, rather than onthe individual. Analysis of the job and its various components will indicate the skills and
training required to perform the job at the required standard.
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Standard of Performance: Every job has an expected standard of performance (SOP).Unless such standards are attained, not only will inter-related jobs suffer, but
organizational viability will be affected, and so will the expectations that have been set
for that particular job itself. If the standards set for the performance of a job are known,then it is possible to know whether the job is being performed at the desired level ofoutput or not. Knowledge of the "task" will help in understanding what skills, knowledge
and attitudes an employee should have.
Methods: If an employee is asked to perform a job, the exact components of the job andthe standard of performance must be known. Task analysis entails not merely a simple
listing of the various job components, but also of the various sub-tasks. Conventionalmethods of job analysis are usually suitable for task analysis. They are:
1. Literature review regarding the job.
2. Job performance.
3. Job observation,
4. Data Collection regarding job interviews.
For blue-collar employees, more precise industrial-engineering techniques, like time and
motion studies, could be used, and for white-collar employees, work samplingobservation, interviews, and job performance data analysis could be employed. The focus
in task analysis approach to identifying training needs is with the clear objective of
enhancing the performance standard of a given task. This information is then utilised toestablish the training programme for the employee. It helps identify the skill required,either in terms of education or training, to perform the job, knowledge, and finally
attitudinal pre-dispositions such as the attitudes, towards safety, or interpersonalcompetence that will ensure that the job is performed optimally.
3 Individual Analysis: Individual analysis is the third component in identifying trainingneeds. The focus of individual analysis is on the individual employee, his abilities, and
the inputs required for job performance, or individual growth and development in terms
of career planning.
The common source for this needs analysis usually forms parts of the performance
assessment process. Clues to training needs can also come from an analysis of anindividuals or a groups typical behaviour. The primary sources of such information are:
(1) Observation at place or work, examination of job schedules, quantum of spoilage,
wastage, and clues about interpersonal relations of the employees; (2) interviews with
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superiors and employees; (3) comparative studies of good vs. poor employees, to identifydifferences, skills and training gaps; (4) personnel records; (5) production reports; and (6)
review of literature regarding the job and machines used. Job-knowledge tests, worksampling and diagnostic psychological tests also provide information about employees.
Q.5 Write short notes on:
Succession Planning
Career Planning
Succession planning:
It enables the organization to identify talented employees and provide education
to develop them for future higher level and broader responsibilities. Succession planning
helps to "build bench strength." Succession planning helps to decide where people belong
on the bus.
Succession planning is a process whereby an organization ensures that employees are
recruited and developed to fill each key role within the company. Through your
succession planning process, the organization recruit superior employees, develop their
knowledge, skills, and abilities, and prepare them for advancement or promotion into
ever more challenging roles.
Through the succession planning process, the organization also retain superior employees
because they appreciate the time, attention, and development that you are investing in
them. To effectively do succession planning in the organization, the organization must
identify its long term goals. It must hire superior staff.
The organization need to identify and understand the developmental needs of its
employees. They must ensure that all key employees understand their career paths and
the roles they are being developed to fill. They need to focus resources on key employee
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retention. The organization need to be aware of employment trends in their area to know
the roles
Career Planning:
Career planning is a deliberate attempt by an individual to become more aware of their
skills, interests, values, opportunities and constraints. It requires an individual thinking to
identify career-related goals and establishing plans towards achieving those goals. Often
it is a self-driven process, which every professional spends some time to dwell on and
discuss it with peers or superiors and frame it. It is also viewed from time to time that the
individual looks for possible new career options. Having a career plan builds a
commitment towards achieving it and is viewed as an excellent personal goal-setting
exercise for self motivation.
Career management is considered to be an organizational process that involves preparing,
implementing and monitoring career plans undertaken by an individual alone or within
the organizations career systems. Organizations establish policies that provide for
multiple career path options that an employee can choose from and pursue. This is
supported with a lot of training and development activities that are agreed to with the
manager and planned carefully and executed.
A variety of career development activities and tools exists for use in organizations. HR
managers should be familiar with these components because the managers often serve as
internal consultants responsible for designing the career development systems. Some of
the activities described are individual career planning tools and others are commonly
used for organizational career management. In general the most effective career
development programs will use both types of activities.
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Q.6 Discuss Individual evaluation methods used for performance
appraisal.
When it has been decided who will evaluate, when, and on what basis, the technique to
be used will be selected. A number of approaches will be described here. There are
several ways to classify these tools. The three categories used here will be; individual
evaluation methods; multiple person evaluation methods; and other methods.
Individual Evaluation Methods :There are five ways to evaluate an employee
individually. In these systems, employees are evaluated one at a time without directlycomparing them with other employees.
Graphic rating scale: The most widely used performance evaluation technique is a
graphic rating scale. In this technique, the evaluator is presented with a graph and asked
to rate employees on each of the characteristics listed. The number of characteristics rated
varies from a few to several dozen. A factor analysis of the result indicates that only two
traits were being rated: quality of performance and ability to do the present job.
The rating can be in a series of boxes, or they can be on a continuous scale (0-9) or so. In
the latter case, the evaluator places a check above descriptive words ranging from none to
maximum. Typically, these ratings are then assigned points. For example, outstanding
may be assigned a score of 4 and unsatisfactory a score of 0. Total scores are then
computed. In some plans, greater weights may be assigned to more important traits.
Evaluators are often asked to explain each rating with a sentence of two.
Forced choice: The forces-choice method of evaluation was developed because other
methods used at the time led to a preponderance of higher ratings, which made promotion
decisions difficult. In forced-choice, the evaluator must choose from a set of descriptive
statements about the employee. The two-, three-, or four-statements items are grouped in
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a way that the evaluator cannot easily judge which statements apply to the most effective
employee.
Typically, personnel specialist prepare the items for the form, and supervisors or
the other personnel specialist rate the items for applicability; that is, they determine
which statement describe effective and ineffective behaviour. The supervisor then
evaluates the employee. The Personnel Department adds up the number of statements in
each category (for example, effective behaviour ), and they are summed into
effectiveness index. Forced choice can be used by supervisors, peers subordinates, or a
combination of these in evaluating employees.
Essay evaluation: In essay technique of evaluation, the evaluator is asked to describe
the strong and weak aspects of the employees behavior. In some enterprises, the essay
technique is the only one used; in other, the essay is combined with other form, such as
graphic rating scale. In this case, the essay summarizes the scale, elaborates on some of
the ratings, or discusses added dimensions not on the scale. In both of these approaches
the essay can be open ended, but in most cases there are guidelines on the topics to be
covered, the purpose of the essay, and so on. The essay method can be used by evaluators
who are superiors, peers or subordinates of the employees to be evaluated.
Management by objectives: Another individual evaluation method in use today is
Management by Objectives (MBO). In this system the supervisor and employee to be
evaluated jointly set objectives in advance for the employee to try to achieve during a
specified period. The method encourages, if not required, them to phrase these objectives
primarily in quantitative terms. The evaluation consists of joint review of the degree of
achievement of the objectives. This approach combines the superior and self
evaluation.
Critical incident technique:I this technique, personnel specialist and operating
managers prepare lists of statements of very effective and very in effective behavior for
an employee. These are critical incidents. The personnel specialists combine these
statements into categories, which vary with the job. Once the categories are developed
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and statements of effective and ineffective behavior are provided, the evaluator prepares
a log for each employee. During the evaluation period, the evaluator records examples
of critical (outstandingly good or bad) behaviours in each of the categories, and the log is
used to evaluate the employee at the end of the period. It is also very useful for the
evaluation interview, since the evaluator can be specific in making positive and negative
comments, and it avoids recency bias. The critically incident technique is more likely
to be used by superiors than in peer or subordinate.
Checklist and weighted checklist: Another type of individual evaluation method is the
checklist. In its simplest form, the checklist is a set of objectives or descriptive
statements. If the Rater believes that the employee possesses a trait listed, the Rater
checks the items; if not, the Rater leaves it blank. A rating score from the checklist
equals the number of checks.
A more recent variation is the weighted checklist. Supervisors or personnel specialist
familiar with the job to be evaluated prepare a large list of descriptive statements about
effective and ineffective behaviour on jobs, similar to the critical incident process. Judges
who have observed behavior on the job sort the statements into piles describing behavior
that is scaled from excellent to poor (usually on a 7-11 scale). When there is reasonable
agreement in an item (for example, when the standard deviation is small), it is included in
the weighted checklist. The weight is the average of the Raters to the checklists use.
The supervisor or other Raters receive the checklist without the scores, and they check
the items that apply, as with an un- weighted checklist. The employees evaluation is the
sum of the scores (weights) on the items checked. Checklist and weighted checklist can
be used by evaluators who are superior, peers, or subordinates, by a combination.
Behaviourally anchored rating system: Another technique which essentially is based
on the critical incident approach is the behaviourally anchored rating scale (BARS). This
technique is also called the behavioural expectation scale (BES). This is a new, relatively
infrequently used technique.
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Supervisors give descriptions of actually good and bad performance, and personnel
specialists group these into categories (five to ten typical). As with weighted checklist,
the items are evaluated by supervisors (often other than those who submitted the items).
A procedure similar to that for weighted checklist is used to verify the evaluations
(outstandingly good, for example) with the smallest standard deviation, hopefully around
1.5 on a 7- point scale. These items are then used to construct the BARS.
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Human Resource Management
Q.1 Explain Wage Administration policy. What are the ways by which
wages and salaries are managed in India?
Principles of Wage Determination
As the major production cost, wages affect profits, business investment, competitiveness,
and are a cost push inflationary factor.
The following principles have always been the bases of the wage determination process.1. Preserving real income:This is the argument used by employees and Unions viewing
wages as an income. Following this principle usually results in wages being indexed to
inflation. Underlying aspects that have also impacted on real wage preservation
arguments have been a "basic" minimum wage, and comparative wage justice.
2. Labor productivity:A valid economic theory connects wages to labor productivity.
Conflict arises over the measurement of productivity. Rewarding labor with a wage
increase when technology, and/or capital investment, increases labor efficiency may not
be justified.
3. The capacity of business to afford wage increases:This emphasizes wages as a cost
of production, and the threat of wage increases to squeeze profits. This "capacity"
argument is that followed by business owners.
4. The capacity of the Economy to absorb wage increases:This "capacity" argument
views the macro impact of wage increases on inflation, competitiveness, and other
aspects of internal and external balance; as well as the affect on business profits and
investment from 3. This is the main argument of the Federal Government recognising the
macro policy potential of an Incomes Policy to address external and internal balance
goals to supplement demand management policies, and the effects on income
distribution.
The Methods of Wage Determination
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Generally wage determination can be through a centralized, regulated, institutionalized
system, or a decentralized system. Collective bargaining is when workers with similar
employment conditions and skills unite, usually through a union, to present their wage
demands to their employer(s). Enterprise bargaining is when workers at the same plant
bargain with the employer. An award is an agreement that sets out both wages and
working conditions. Our reliance on a centralized system, often based on indexation, has
dominated wage determination over the last century.
Q.2 Texas is a medium size, plastic manufacturing company. In this
Company, workers have developed grievances against management. For
past 2 years, in spite of making Profit, Company is not paying bonus to
the workers. It is expected that, if the grievances are not dealt, it might
lead to severe consequences. Imagine this situation and explain the
grievance handling procedure, list each steps of the procedure. Suggest
few measures to avoid grievances.
In the solution of a problem, the greater burdens rest on management. The clearestopportunity for settlement is found at the first stage, before the grievance has left the
jurisdiction of the supervisor.
The following directions help in handling grievances properly.
i). Receive and define the nature of the dissatisfaction:The manner and the attitude
with which the supervisor receives the compliant of grievance are important. The
supervisor should assume that employee is fair in presenting the compliant or grievance.
Statements should not be prejudged on the basis of past experience with this or other
employees. The supervisors who are task oriented, as contrasted with people oriented,
tended to experience a significantly greater number of complaints being filed in their
units.
ii). Get the facts: In gathering facts, one quickly becomes are of the importance of
keeping proper records such as performance ratings, attendance records and suggestions.
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The supervisor is wise to keep records on each particular grievance. The supervisor
posses and exercise some skill in interview conference, and discussion.
iii). Analyze and Divide: With the problem defined and the facts in hand, the manager
must now analyze and evaluate them, and then come to some decision. There is usually
more than one possible solution. The manager must also be aware that the decision may
constitute a precedent within the department as well as the company.
iv). Apply the Answer:through the solution decided upon by the supervisor is adverse to
the employees, some answer is better than none. Employees dislike supervisors who will
take no stand, good or bad. In the event of an appeal beyond this stage of procedure, the
manager must have the decision and the reasons for his decisions should be properly
recorded.
v). Follow up:The objective of the grievance handling procedure is to resolve a
disagreement between an employee and organization. Discussion and conference are
important to this process. The purpose is to determine whether the clash of interest has
been resolved. If the follow up reveals that the case has been handled unsatisfactorily or
that the wrong grievance has been processed, then redefinition of the problem, further
fact finding, analysis, solution and follow up are required.
The few measures to avoid grievances
Build good morale, maintains code of discipline. It Brings uniformity in handling
grievances. It develops faith of employees.
Reduces personality conflicts. It acts as a pressure valve.
Provides judicial protection to the employees. Provides avenues to present the problems.
Strengthen good corporate relationship. It detects the flaws in working conditions and
helps to take corrective measures.
Q.3 Define competency. How competency is linked to Human resource
system
Meaning of competency
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A competency is an underlying characteristic of a person/organization which enables to
deliver performance in a given job, role or a situation1. Thus the performance of an
organization or an individual will depend on the relevant competencies they possess and
higher the level of competencies, superior will be the performance. Competencies allow
focus process-How things are done? not simply on outcomes.
Classification of competencies
Competencies can be broadly classified into three categories namely organizational
competencies, job related competencies and personal competencies.
Organizational competencies are unique factors that make an organization competitive.
According to C.K.Prahlad and Hamel who wrote the famous book
Competing in the future, organizational competencies- a) Provide potential access to a
wide variety of markets b) Make a significant contribution to perceived customer benefits
of the end product c) Are difficult for competitors to imitate. Organizations need to focus
their efforts in the area of their competencies and strengthen them and outsource the other
activities. This is very important as these competencies are fundamental to the success of
the organization. Some of the examples for organizational competencies include Sony-
miniaturization, Phillips-optical media, Honda-engines, and Intel-microchip.
Job related competencies are those competencies which are required for performing a
specific job. These are the competencies someone must demonstrate to be effective in his
job/role, task or duty. Thus these competencies are job or role specific and vary from job
to job. A competency model can be used to develop specific job related competencies and
come out with a competency dictionary. These competencies are organization specific as
roles and responsibilities may vary from organization to organization even though the job
title may be the same. Job related competencies may become the criteria for most of the
HR functions like selection, Training and development, performance appraisal,
compensation etc.
Personal competencies are aspects of an individual they include the abilities of
individuals to perform the activities within an occupation or function to the standard
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expected in employment. It includes the various behavioral competencies apart from the
knowledge and skill level of an individual. These competencies include.
Personal competencies like developing oneself, taking initiative, delivering results,
showing commitment, and adaptability.
b. Interpersonal competencies like influencing, relationship building, advising, team
orientation, service orientation, cultural awareness, communication, and openness.
c. Information oriented competencies like strategic thinking, business understanding,
conceptualizing, innovation, processing, analyzing and comprehending.
d. People management competencies like leadership, directing, building teams,
facilitating performance, motivating, guiding people, and transferring knowledge.
How competency is linked to Human resource system?
The four steps may be for competency linked to Human resource system:
1. Developing a Competency model
2. Competency Mapping
3. Linking Competencies to Compensating factors
4. Designing compensation on the basis of actual competencies
Developing a competency model
The basic need for a competency based compensation management is a competency
model. A competency model is one which identifies the various competencies required
for performing a job and describing these competencies in the form of indicators, which
can be quantified. Each competency can be quantified on a scale on the basis of its
relative importance with respect to each job. This serves as a reference for all
competency management activities in the organization. Competency model is
organization specific as each organization may have its own way of defining and
quantifying competencies and competencies may be unique for each organization.
We have been working with few organizations on issues related to competency
management and this paper is based on the experience in developing the competency
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model and its applications. We adopted following procedure to develop standard
competencies.
1. We started with job/role analysis to identify the competencies require to perform the
job. Job descriptions and job specifications can throw a light on competency
requirements for satisfactory performance of the duties and responsibilities, which are
listed in them. If these are not available then job analysis is to be carried out. This gives
us the preliminary list of job specific competencies.
2. Job holders and immediate superiors may have better understanding of the jobs and
thus they can easily identify the critical competencies. Thus we gathered further
information with discussions and brainstorming sessions involving them. This helped us
in refining the list of preliminary competencies developed in the first step.
.
Competency Mapping
Once the dictionary is ready, then the actual mapping process needs to be carried out. To
do the mapping, the following steps were followed by us in mapping out competencies:
1. A structured questionnaire was designed for the employee and his immediate superior.
The same questionnaire is administered to both for getting the rating.
2. The employee whose competency is to be mapped is asked to rate his/her own
competency level in the questionnaire.
3. The immediate superiors ratings of the employee are also collected in the same way.
4. A weighted average of the ratings is computed to get the final score. 70% weight was
given to the superiors rating and 30% to the employees self rating.
Linking the Competencies to Compensation Factors
The next step in the competency based compensation model is to link the compensation
to competency mapping ratings of the employee. This is done so by computing the
Compensation Factor which is defined as the weighted average of the competency
ratings an employee has obtained. This compensation factor can then be used to design
compensation strategies according to the organizations compensation policy. It can also
be used to fine tune the policy and adjust for internal and external equities which are
explored in the sections given below. Further computations and adjustments might be
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required to the compensation factor depending on situations, which will be explained as
and when those situations are taken up for discussion.
Computing the Compensation Factor F:
Let us assume that for a given level of employees m competencies have been
identified.
Let xp, where p = 1 to m represent the average criticality ratings of each of the
competencies identified. Let the matrix C, of the order 1 X m, represent the row vector of
criticality ratings of competencies.
Let yij, where i = 1 to m and j = 1 to n, m is the number of competencies and
n is the number of employees, represent the competence rating exhibited by jth
employee on ith competence. Let the matrix R, of the order m X n, represent the vector of
employee ratings on each competency where m is the number of competencies and n
is the number of employees. Since competencies vary across organizational units like
departments or hierarchical levels, the number n typically represents the number of
employees in a given unit.
Let Cp where p = 1 to m represent the sum of the criticality ratings.
Let the matrix F of the order 1 X n represent the row vector of each employees
compensation factor.
Then we can say that
F 1 X n = (1/Cp )* C 1 X m * R m X n --------------------- (1)
The above equation actually gives out the compensation factors, which are the weighted
average of the employees ratings. The row vector F can now be used to design the
compensation packages of the employees of the unit and/or the hierarchical level. The
next section uses this model to demonstrate how various compensation packages can be
designed using the compensation factor vector.
Designing Compensation Packages:
The compensation models vary across organizations. Two typical cases are very frequent.
First is the case where the organization makes changes to the Basic salary component
of the employee. Next is the case where the organization does not change the basic
frequently, but has an Incentive component to reward performances of employees
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which are highly satisfactory. Below we explore both the cases sufficiently and provide
illustrations with the help of live data wherever necessary. It must be noted that while the
competency mapping data is live, several assumptions and adjustments have been made
to the compensation data, to keep the Non-Disclosure Agreement sacred.
Q.4 Think of a situation in which an employee is to be dismissed from the
organization, what will be the fair steps of dismissal followed by the
organization?
According to Article 311 of the Indian Constitution, which says that no person shall
be dismissed or removed from service until he has been given a reasonable
opportunity to show cause as to why the proposed action should not be taken
against him?"
The Model Standing Orders, too, lay down that, "before an employee is dismissed,
he should be given an opportunity to explain the circumstances against him."
The following steps are followed for dismissal of an employee:
a) Charge Sheet is Framed and Issued:
The first step in the procedure is to frame a written charge sheet which is based
upon a written complaint against the employee in question, and which contains
details of the offence with which he is charged and the allegation of misconduct
made against him, and indicating the time limit within which a reply to the charge
sheet should be submitted to the authorities.
The employee is called upon to show because why a disciplinary action should not
be taken against him.
The contents and implications of the charge sheet may be explained to him in his
own language and in the presence of some reputable witness, before a copy of it is
handed over to him. If he refuses to accept it, it should be sent to his residential
address "registered post with acknowledgement due". If the employee refuses to
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take delivery of the registered letter, or when it has been returned undelivered, it
should be published in a local paper to ensure its wide publicity.
b) Receipt of Explanation:
The employee may submit his explanation within the prescribed period of time, or he
may ask for an extension of time for its submission. In the latter case, the request
should be considered in good faith in accordance with the rules of natural justice.
c) Issue of Notice of Enquiry:
If the explanation is received from the employee is found to be unsatisfactory, a
notice of enquiry, mentioning the time, date and place, has to be given to him in
which the name of the person or officer who would conduct the enquiry would also
be mentioned. The employee is required to be present at the appointed time and
place, together with his witness, if he has any.
d) The Holding of Enquiry:
On the appointed day and at the appointed place and time, the enquiry is held by the
Enquiry Officer in the presence of the employee. The contents of the charge sheet
and an explanation of the procedure to be followed at the enquiry are communicated
to the worker. If he pleads his innocence, the enquiry proceeds; but if he pleads
guilty, unconditionally and in writing, the enquiry is dropped.
e) The Findings:
Once the enquiry is over, the Enquiry Officer has to give his findings, which shouldinvariably contain the procedure which was followed, the partys statements, the
documents produced and examined, the charges made and the explanations given
and the evidence produced. The officer should then record his own findings on each
of the charges and the grounds on which he has come to a particular conclusion. He
should specifically mention which charges have been proved and which have not
been proved. He then submits his findings to the authorities empowered to take a
disciplinary action against the employee. He, however, is not required to make any
recommendations.
a) On receiving the report, the executive authorized to take a decision thereon
passes an order of punishment.
b) Communication of the order:
A copy of the orders is then handed over to the employee.
Discharge of an Employee
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The following conditions must necessarily be satisfied before an employee is
discharged from service by way of punishment for misconduct.
a) The misconduct of the employee is of such a nature as to indicate that his
discharge or dismissal would be an appropriate punishment and that this kind of
punishment has been provided in the Standing Orders.
b) An enquiry must be held by the employer into the misconduct which an employee
has been charged with. This enquiry should be held only after a charge sheet has
been preferred against him, and he has been given due notice of the time, place and
date of enquiry.
c) The officer should be held in such a manner as to ensure that it would be fair and
proper and in conformity with the principles of natural justice. The worker must be
given an adequate opportunity to defend himself and to present witness in support of
his contention or case.
d) The officer holding the enquiry should not be one who may be disqualified on the
ground of bias, personal interest, or on the ground of his having been on eye witness
to the misconduct with which the employee is charged.
e) At the conclusion of the enquiry, the findings, based on recorded evidence, should
be recorded by the enquiry officer.
f) The findings must necessarily be based on recorded evidence and should not be
perverse.g) The order of dismissal or discharge against the employee must be passed in good
faith.
h) The order must be duly communicated to the employee against who it has been
passed.
Q.5 Suggest few measures to improve employee morale.
Measurement of Employee Morale
Signs of low morale are generally not noticed till it is obviously, low or when something goes
amiss. By the time the management recognizes the fact that morale has deteriorated, it is
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faced with one crisis or another. Perceptive managers are, therefore, constantly on the
lookout for clues to any deterioration in the morale of the employees.
Dale Yoder and others pointed out the following as signals of low morale:
1. Employee unrest.
2. High rate of absenteeism.3. Tardiness.
4. High employee turnover.
5. Grievances.
6. Need for discipline
7. Fatigue and monotony.
ImprovingMorale
There are a number of measures which can be used to control the warning signals of low
morale.
The following are the positive measures to be taken to bring job satisfaction to the
employees and reconcile individual interests with the interests of the organization.
1. Creation of whole jobs.
2. Job enrichment.
3. Building responsibility into a job.
4. Modifying the work environment.
5. Flexing working hours.
6. Job sharing.
7. Rotation of jobs.
8. Profit sharing.
Morale can also be improved by adapting several other measures such as employee contest,
special recognition and awards to long service employees, film shows to employees during
their lunch hour, free coffee during rest pauses, and training the supervisors in how to handle
people.
1. Under this method, complete jobs are assigned to the workers. The complexity of a jobshould be increased so that it may appeal to their higher needs.
2. Job enrichment tries to deal with dissatisfaction by increasing job depth. Under this,
individual employees may be given responsibility for setting their own work pace, for
concerning their own errors, and/or for deciding on the best way to perform a particular task.
3. Employees should be encouraged to take risk decision.
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4. This can be achieved by:
i) Developing work groups;
ii) Developing the social contacts of the employees;
iii) The use of music;
iv) Regular rest breaks.5. Flex time permits employees to arrange their work hours to suit their personal needs and
lifestyles.
This is particularly suited to situations with fluctuating workloads. Flex time employees are
responsible for coordinating their functions with other employees and thereby have more
responsibility and autonomy.
6. Two workers divide a fulltime job between themselves splitting not only the hours of work
but also the salary.
7. This reduces employee's boredom which arises out of the monotonous nature of his work.
8. Morale can be improved by effective profit sharing schemes. In addition to its economic
aspects, profit sharing has also psychological aspects relating to friendly move by the
management in providing the workers an opportunity to participate in the profits.
Q.6 Explain Victor Vrooms Expectancy theory of motivation.
Vroom's expectancy theory :It assumes that behavior results from conscious choices
among alternatives whose purpose it is to maximize pleasure and minimize pain.
Together with Edward Lawler and Lyman Porter, Victor Vroom suggested that the
relationship between people's behavior at work and their goals was not as simple as was
first imagined by other scientists. Vroom realized that an employee's performance is
based on individuals factors such as personality, skills, knowledge, experience and
abilities.
The theory suggests that although individuals may have different sets of goals, they can
be motivated if they believe that:
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y There is a positive correlation between efforts and performance,
y Favorable performance will result in a desirable reward,
y The rewardwill satisfy an important need,
y The desire to satisfy the need is strong enough to make the effort worthwhile.
The theory is based upon the following beliefs:
Valence
Valence refers to the emotional orientations people hold with respect to outcomes
[rewards]. The depth of the want of an employee for extrinsic [money, promotion, time-
off, benefits] or intrinsic [satisfaction] rewards). Management must discover what
employees value.
Expectancy
Employees have different expectations and levels of confidence about what they are
capable of doing. Management must discover what resources, training, or supervision
employees need.
Instrumentality
The perception of employees as to whether they will actually get what they desire even if
it has been promised by a manager. Management must ensure that promises of rewards
are fulfilled and that employees are aware of that.
Vroom suggests that an employee's beliefs about Expectancy, Instrumentality, and
Valence interact psychologically to create a motivational force such that the employee
acts in ways that bring pleasure and avoid pain.