BBA - Sem - 2 - BBA - Study Material PDF

Study Material BBA Semester-II Ms. Sapna Devani, Department of Management Offered by : Department of Management Preface About Course Human Resource Management course is designed to provide knowledge about the management of human capital in business organization. This course provides clear understanding to students about basic concept and functions of human resource management. It also provides opportunity to students to learn the importance of activities like acquiring, utilizing, developing and maintaining people with reference to business strategy. Course Outcome +-----------------------+-----------------------+-----------------------+ | **Course Outcomes:** | | | | Upon completion of | | | | this course, the | | | | learner will be able | | | | to | | | +=======================+=======================+=======================+ | **CO No.** | **CO Statement** | **Blooms Taxonomy | | | | Level** | | | | | | | | **(K~1~ to K~6~)** | +-----------------------+-----------------------+-----------------------+ | **CO~1~** | Familiarize with the | K1, K2 | | | fundamental concepts | | | | of Human Resource | | | | Management | | +-----------------------+-----------------------+-----------------------+ | **CO~2~** | Make student | K3 | | | understand the | | | | executing concepts of | | | | job environment | | +-----------------------+-----------------------+-----------------------+ | **CO~3~** | Memorize and describe | K1, K2 | | | the basic functions | | | | of HR department | | +-----------------------+-----------------------+-----------------------+ | **CO~4~** | Classify and analyze | K2, K4 | | | the methods of | | | | training and | | | | performance appraisal | | +-----------------------+-----------------------+-----------------------+ | **CO~5~** | Understand the | K3 | | | essential concept of | | | | working environment | | | | and recent trends in | | | | HRM and its | | | | application | | +-----------------------+-----------------------+-----------------------+ Table of Contents [1 Fundamentals of Human Resource Management 6](#fundamentals-of-human-resource-management) [1.1 Concept of Human Resource Management 6](#concept-of-human-resource-management) [1.2 Functions of HRM 9](#functions-of-hrm) [1.3 Importance of Human Resource Management 16](#importance-of-human-resource-management) [1.4 Challanges of Human Resource Management 18](#challanges-of-human-resource-management) [1.5 Role of HR manager: 23](#role-of-hr-manager) [1.6 Qualities of HR manager: 25](#qualities-of-hr-manager) [2 Job environment: 29](#job-environment) [2.1 Job Analysis: 29](#job-analysis) [2.2 Job Design: 33](#job-design) [2.3 Job Evaluation: 39](#job-evaluation) [3 Basic Functions Of HRM: 46](#basic-functions-of-hrm) [3.1 Human Resource Planning: 46](#human-resource-planning) [3.2 Recruitment and Selection: 51](#recruitment-and-selection) [3.3 Placement: 60](#placement) [3.4 Induction: 62](#induction) [3.5 Promotion: 63](#promotion) [3.6 Demotion: 67](#demotion) [3.7 Transfer: 68](#transfer) [4 Employee Training and Performance Appraisal: 72](#employee-training-and-performance-appraisal) [4.1 Employee Training - Concept: 72](#employee-training---concept) [4.2 Traning Methods: 72](#traning-methods) [4.3 Performance Appraisal - Concept: 86](#performance-appraisal---concept) [4.4 Performance Appraisal - Methods: 88](#performance-appraisal---methods) [**5** **Essential and Recent Concepts in HRM:** 104](#essential-and-recent-concepts-in-hrm) [5.1 Quality of Work Life (QWL) 104](#quality-of-work-life-qwl) [5.2 Job Satisfaction 108](#job-satisfaction) [5.3 Work Life Balance Employee Empowerment 115](#work-life-balance-employee-empowerment) [5.4 Employee Empowerment 117](#employee-empowerment) [5.1 Rightzining of Workforce: 121](#rightzining-of-workforce) [5.2 Moonlighting By Employees: 122](#moonlighting-by-employees) [5.3 Knowledge management: 122](#knowledge-management) [5.4 Virtual Organization: 124](#virtual-organization) **Human Resource Management (23UGMG202)** Fundamentals of Human Resource Management ========================================= The concept of HRM actually has evolved from the 'Management', which is concerned with staffing, developing, rewarding and motivating employees, but HRM is a wider concept. It suggests decentralization of responsibilities, adopting participative approach in Management and best utilization of employees for individual, organizational and social benefit. - **According to Schermerhorn** : "HRM is a strategic process and involves *attracting, developing and maintaining* a talented, energetic workforce to support the organization\'s mission, objectives and strategies." - **According to Wendel French :** "HRM means the functions of *recruiting, selecting, developing* of human asset by the institution and to *utilize* and *maintain* their capacities as well as provide them amenities." - **According to Edwin B. Flippo :** "HRM is the *planning, organizing, directing and controlling* of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and social objectives are accomplished." Concept of Human Resource Management ------------------------------------ Scientific writing is not just writing about science; it is the technical writing that scientists do to communicate their research to others. Scientific writing is predicated on the rigors of scientific inquiry, so it must reflect the same precision as that demanded in the research process. Scientific communication demands precision (the precise use of words and phrases), clarity, and economy.[^1^](#fn1){#fnref1.footnote-ref} Every organization is comprised of people acquiring their services, developing their skills, motivating them to high levels of performance, and ensuring that they continue to maintain their commitment to the organization are essential to achieve organization objectives. This is true regardless of the type of organization Government, business, education, health, recreation or social action. Getting and keeping good people is critical to the success of every organization. **Human Resource Management (HRM) is a modern approach of *maintaining people* at workplace which focuses on *acquisition, development, utilization and maintenance* of human resource.** In simple words, HRM is a process of making the efficient and effective use of human resources so that the set goals are achieved. - **[Features of HRM:]** ### It is an inherent part of management: This function is performed by all the managers throughout the organization rather that by the HR department only. If a manager is to get the best of his people, he must undertake the basic responsibility of selecting people who will work under him. ### It is a pervasive function: It is performed by all managers at various levels in the organization. It is not a responsibility that a manager can leave completely to someone else. However, he may secure advice and help in managing people from experts who have special skill in HR management and industrial relations. ### It is basic to all functional areas: ### HRM needed in all the functional area of management such as production management, financial management, and marketing management. That is every manager from top to bottom, working in any department has to perform the HR functions. {#hrm-needed-in-all-the-functional-area-of-management-such-as-production-management-financial-management-and-marketing-management.-that-is-every-manager-from-top-to-bottom-working-in-any-department-has-to-perform-the-hr-functions..ListParagraph} ### It is people centered: ### HRM is people centered and is relevant in all types of organizations. It is concerned with all categories of HR from top to the bottom of the organization. The broad classification of HR in an industrial enterprise may be as follows: {#hrm-is-people-centered-and-is-relevant-in-all-types-of-organizations.-it-is-concerned-with-all-categories-of-hr-from-top-to-the-bottom-of-the-organization.-the-broad-classification-of-hr-in-an-industrial-enterprise-may-be-as-follows.ListParagraph} \(i) Blue-collar workers (i.e. those working on machines and engaged in loading, unloading etc.) and white-collar workers (i.e. clerical employees), \(ii) Managerial and non-managerial HR, \(iii) Professionals (such as Chartered Accountant, Company Secretary, Lawyer, etc.) and non-professional HR. ### It involves various HR Activities or Functions: ### HRM involves several functions concerned with the management of people at work. It includes manpower planning, employment, placement, training, appraisal and compensation of employees. {#hrm-involves-several-functions-concerned-with-the-management-of-people-at-work.-it-includes-manpower-planning-employment-placement-training-appraisal-and-compensation-of-employees..ListParagraph} ### It is a continuous process: ### HRM is not a "one shot" function. It must be performed continuously if the organizational objectives are to be achieved smoothly. {#hrm-is-not-a-one-shot-function.-it-must-be-performed-continuously-if-the-organizational-objectives-are-to-be-achieved-smoothly..ListParagraph} ### It is based on Human Relations: ### HRM is concerned with the motivation of human resources in the organization. The human beings can't be dealt with like physical factors of production. Every person has different needs, perceptions and expectations. The managers should give due attention to these factors. They require human relations skills to deal with the people at work. Human relations skills are also required in training, performance appraisal, transfer and promotion of subordinates. {#hrm-is-concerned-with-the-motivation-of-human-resources-in-the-organization.-the-human-beings-cant-be-dealt-with-like-physical-factors-of-production.-every-person-has-different-needs-perceptions-and-expectations.-the-managers-should-give-due-attention-to-these-factors.-they-require-human-relations-skills-to-deal-with-the-people-at-work.-human-relations-skills-are-also-required-in-training-performance-appraisal-transfer-and-promotion-of-subordinates..ListParagraph} Functions of HRM ---------------- ### Managerial Functions : These are a set of functions that a manager performs to get the things done from others. These functions include the following: 1. **[Planning :]** This function deals with predetermining the future course of action. It involves the determination of objectives, programmers, policies, procedures and rules. These plans may be for short term, medium term or long term. He plans for procurement, development, compensation, integration and maintenance of employees in the organization. This forms the plan for his department which he further coordinates with the organizational plan. 2. **[Organising :]** This involves the process of dividing the work into smaller parts and allocating these tasks to people. Thus, group of people performing similar tasks can be formed. They are further grouped as departments and the organizational structure is formed. This function also determines how efficiently an organization performs its functions. Human relationships in the organization are also governed by the distribution of functions among various departments and its members. 3. **[Directing :]** This function pertains to providing proper instructions to people working in the organization. It also involves supervising, leading and motivating employees to work enthusiastically for the attainment of organizational goals. 4. **[Controlling :]** This function comprises of identifying deviations/ gaps between expected results and actual results and then taking corrective action for the efficient accomplishment of goals. It highlights individual performance through reports, reviews and audits. It also points out the blocks/hurdles in better performance and shows the areas for improvement. ### Operative Functions : The operative functions are those functions which are related to particular department and are performed for the attainment of departmental objectives. 1. **[Procurement Function :]** This function pertains to procuring the right person for the right job. It involves hiring people as per the need of the organization. It includes the following : A. [Human Resource Planning] : This function is concerned with determining the number of people required for various jobs and the different types of qualifications, skills and qualities required in various HR for different jobs. B. [Recruitment :] It is the process of linking job seekers and job providers. It involves searching for and attracting prospective employees and motivating them to apply for jobs. C. [Selection :] It is the process of identifying from a pool of applicants the most suitable person for a particular job based on his experience, skills, qualities and qualifications. D. [Placement :] It is the process of placing the selected candidate on the determined job. It is the final stage in the procurement process. To place the right candidate on the right job is the responsibility of the HR manager. E. [Induction and Orientation :] It is the introduction of a new employee to the organization or department and making him aware of the surroundings, policies and practices of the unit. This makes the employee comfortable and he gets acquainted with his work. F. [Internal Job Changes :] Promotions and transfers are the methods of internal job changes. An employee moves either horizontally or vertically within the organization. There are situations when employees leave their job to join elsewhere or are terminated and have to leave the job or they Move out due to retirement. This type of employee movement is called external mobility. Job changes are done in Order to make the best utilization of the employee towards the attainment of organizational objectives. 2. **[Development Function :]** This is the function to train employees for enhancing their performance on present job. It also aims at developing employees' skills, abilities and aptitude for future positions and changing the organizational culture to match individual and organizational requirements. It includes the following functions : A\) [HRD System] : HRD is a system in which there is development of the organization as a whole. It is about creating an environment in which every employee is able to utilize and develop his/her abilities to achieve individual and organizational goals. B\) [Training] : It is a process by which employees learn and enhance skills and abilities for better performance of duties and responsibilities shouldered on him. C\) [Managerial Development :] It is the Process of developing managerial skills and Capabilities in the human resources for effectively carrying out their present and future roles in the organization. This is done through all well development Programmes conducted for the human resources by the Human Resource manager. D\) [Career Planning and Development :] An individual can plan for one's own joining educational or/and training programmes, gaining job experiences which help him utilize or enhance his skills and abilities. Similarly an organization also does succession planning to identify most competent individuals for key positions in the Organization. E\) [Organizational Development :] It is an organization-wise Strategy used to bring about changes at the overall organizational level. It involves changing the environment, culture, structure to improve an organization\'s adaptation to new technologies, markets and dynamic challenges faced due to changing times. 3. **[Compensation Function :]** It involves determining the basic pay, Incentives, benefits and services offered in the form of reward for the services rendered by the human resources. A)[Job Evaluation] : It is a systematic process to determine the relative worth of a job as compared to other jobs in the organization. This helps in establishing the same value for similar jobs and identifying those jobs which need to be paid higher than others. [B) Compensation Management :] It involves the process of determining a pay plan that is attractive, motivating and considered as fair by the employees. It helps in retaining employees and makes it clear about how much is to be paid to each and every employee. [C) Incentives :] In addition to the basic pay, in most organizations, an incentive is paid based on effectiveness in performance. **[Example]** : An employee who achieves 100% targets given to him gets an incentive of 10% on his basic pay whereas an employee achieving 95% gets only 7% and the one achieving 80% gets no incentive. [D) Benefits and Services :] Today organizations offer many types of benefits and services to their human resources. Benefits like Workmen's\' Compensation, Provident Fund Scheme / Pension Scheme, insurance etc. are offered to the employees working in the organization. They are also provided with club membership, vacations, festival bonus, paid rest periods etc. 4. **[Maintenance Function]** This function aims at providing various welfare measures to protect the health of their employees. It includes proper communication, health and safety measures, welfare, employee participation, counseling and mentoring. [A)Communication] : Appropriate and timely communication directs an employee towards the performance of his tasks and accomplishments of targets. This provides job satisfaction to an employee working in the organization. [B) Health and Safety Measures] : The organization must ensure that the work environment protects its employees against unhealthy conditions, unsafe acts of other employees and any kind of physical hazards. By enforcing safety measures and health standards, the physical and psychological wellbeing of human resources is ensured. [C) Employee Welfare :] This includes offering facilities and amenities to employee for their physical mental and social well being. Facilities like transportation, recreation, social security measures like maternity benefits, medical benefits are offered to employees within or outside the organizational setup. [D) Employee Participation :] Giving the right to decisions to lower level employees gives them an opportunity to have an insight on the functioning of an organization and the importance of the functions performed by them for the organization. They consider the organization to be theirs and develop a bond and commitment towards it. [E) Stress Management :] Stress is the biological and psychological reaction to a situation. In organizations, stress converts into burnout which leads to increased absenteeism. Turnover and reduced job satisfaction. Employee Development and Stress Management Programmes are conducted to promote the physical and mental well being of their employees. [F) Counseling and Mentoring :] These are techniques to help an employee cope up with his problems in a better way. It develops understanding, self control and understanding in employees. 5. **[Motivation Function]** : It is the process of stimulating people to work enthusiastically for the organization. It can be done by providing monetary and non-monetary rewards to the employees. It can also be done through other methods as listed below. [A) Performance Appraisal :] An employee\'s performance on the job is evaluated in order to assess how well he is performing on his current job. This evaluation is then communicated to an employee and suggestions are provided for improvement. [B) Potential Appraisal :] Potential Appraisal is a technique to identify the ability/potential of an employee for better Opportunities or higher level jobs. These appraisals are carried out to help the organization in making their succession plan. [C) Financial Reward System :] In addition to wages, employees are paid incentives which are paid to employees based on their performance. These are not compulsory payments but they act as motivators for better performance eg. Performance bonus, commissions etc. [D) Non-Financial Reward System :] Certain organizations or institute certain awards for good performers in order to motivate them to perform better. Promotions and transfers also act as motivators. **6. [Integration Function :]** This is the function which combines individual goals and organizational goals. This can be achieved through the following activities. [A) Grievance Handling :] A grievance is a dissatisfaction or a complaint of an employee. It could be regarding wages, working hours or working conditions. Grievance handling is the procedure which involves listening to and settling employee grievances. [B) Discipline :] It is the system which motivates the employees to follow certain rules and regulations for the effective attainment of organizational goals. [C) Collective Bargaining :] It is the process of bargaining between management and trade unions on matters relating to wages, hours of work, rest pauses, benefits, vacations, layoffs and other such matters related with employment or terms of employment. After bargaining both the parties make an agreement which is implemented by them for establishing better relations and smooth functioning of the organization. [D) Industrial Relations :] The secret of high productivity and growth of an organization are peaceful and harmonious relations between the management and workers. An environment of trust, contentment and openness exists which reduces the chances of conflicts among them. [E) Employee Empowerment :] When the employees are given the power to make decisions and participate in the day to day functioning of the organization, it can be called employee empowerment. By doing this an employee understands his role in the growth and development of his organization. [F) Trade Unions :] It is an association of employees or employers formed with the intention of its members\' welfare and protecting them against any kind of exploitation. In our country labour unions have used bargaining tactics and have played a key role in improving the condition and respect of the labour community. **[7. Other Functions :]** [A) Record Keeping :] Records such as employee\'s personal data, appraisal reports, HR policies and programmes need to be documented and maintained properly as the records of the organization. [B) HR Audit :] Human resource audit is the process of evaluation of the HR policies and procedures in order to determine their effectiveness and relevance to continue them in future. [C) HR Research :] It is the process of evaluating the effectiveness of the HR policies already being practiced and involves designing new ones to augment their effectiveness. [D) HR Accounting :] It is the process of ascertaining the value of human resources of an organization by doing a cost benefit analysis and identifying the human assets of the organization. Importance of Human Resource Management --------------------------------------- The stages of the scientific method are often incorporated into sections of scientific ### Maintains quality of work life: Quality of work life is concerned with the employee's perception of physical as well as psychological wellbeing at workplace and it can be obtained by maintaining work autonomy, work freedom, job recognition, belongingness, rewards, etc. ### Increases productivity and profit: HRM ensures right quality and quantity of HR in workplace, apart from which, it creates opportunities to facilitate and motivate individual and group of employees to grow and advance their career. Motivated employees work hard to meet their personal career goal which directly influences productivity of organization. Minimizing cost and maximizing profit is the essence of productivity. ### Produces employees who are easily adaptable to change: HRM performs various functions, among which training and development of employees is one of the vital ones. T&D programs keep employees updated with skills necessary to adjust with alteration of organization's environment, structure and technology. ### Matches demand and supply of human resource: HRM looks into existing human resource in certain interval of time to identify if the company has adequate number of workers or not. In case when company has imbalanced human resource, HR department performs activities like recruitment and selection or lay off, whichever is needed. ### Retains employees and motivates them to accomplish company's goal: Utilizing human resource to their fullest and maintaining them in the company for a long term is a major function of HRM. Under this function, HRM performs tasks like providing benefits to the deserving employees. ### Recognizes contribution of employee: HRM performs timely appraisal of employee's performance in order to recognize excellent and poor workers. The excellent workers are then rewarded as a return for their contribution. ### Creates a feeling of belongingness and team spirit in the employee: HRM designs job on the basis of teamwork. As teamwork demands contribution from every team member, HRM focuses on making each and every employee feel valued so that employee contributes best from their side. ### Resolve conflicts: In any company, either big or small, conflicts may arise between any parties/group. Conflicts cannot be ignored. HRM acts as a consultant to sort out such conflicts timely and conduct other organizational activities smoothly. ### Develops corporate image: Every company should maintain good public image in order to sustain in the market. Any individual would like to work for companies which are known for moral and social behaviour. On the other hand, companies that do not treat their employees in a good manner can run through employee deficiency and even collapse. Challanges of Human Resource Management --------------------------------------- Table ‑: Challenges of HRM +-----------------------+-----------------------+-----------------------+ | Environmental | Organizational | Individual\ | | Challenges | Challenges | Challenges | +=======================+=======================+=======================+ | 1. Rapid Change | 1. Controlling Costs | 1. Productivity | +-----------------------+-----------------------+-----------------------+ | 2. Work Force | 2. Improving Quality | 2. Empowerment | | Diversity | | | +-----------------------+-----------------------+-----------------------+ | 3. Globalization | 3. Developing | 3. Brain drain | | | Distinctive | | | | Capabilities | | +-----------------------+-----------------------+-----------------------+ | 4. Legislation | 4. Restructuring | 4. Ethics & social | | | | responsibility | +-----------------------+-----------------------+-----------------------+ | 5. Technology | | 5. Job insecurity | +-----------------------+-----------------------+-----------------------+ | 6. Job & Family | | 6. Matching people & | | Roles | | organization | +-----------------------+-----------------------+-----------------------+ | 7. Lack of Skills | | | +-----------------------+-----------------------+-----------------------+ ### **Environmental Challenges:** 1. **[Rapid Change:]** The world is changing at a faster rate because change is constant from several centuries. So the management should be quickly adaptive to the changing requirement of the environment otherwise they become obsolete from the market. The HRM of an organization plays a basic role in response to the environmental change. The HR department should adopt such policies that can avail the new opportunities of the environment & keep the organization away from the newly emerging threats. 2. **[Work Force Diversity]** The changing environment provides the opportunities & threats to the HRM of the organization. The HR manager should adopt such policies that can make possible the diverse work force of employees. Although on one hand diversity creates big problem but in the long run, the survival & performance of the organization is do well. 3. **[Globalization:]** The world is converting into global business and severe competition is started between domestic & foreign companies. Such competition results in the laying off the effective workforce of the organization. The HR department can play an important role in keeping the culture of the organization as global & wider. 4. **[Legislation:]** There are certain labour laws that are declared by the government for the benefits of the working employees. Some of these laws are disadvantageous to the interests of the organizations so it is a one of the big challenges for the HRM to implement all those labour laws within the organizations. If any of such law is violated, serious actions are taken by the relevant government authority that may result into serious penalty for the management of the organization. 5. **[Technology:]** The technology is also growing with great speed especially in the field of computer & telecommunication. New methods are emerging that quickly dominates the older ones & makes them obsolete. Therefore the skills required by the employees also changes with the changing technology & this would compels the worker to advance the skills three to four times throughout their working lives. So there comes a burden on the HR department to constantly update the skills & expertise of their employees. 6. **[Job & Family Roles:]** In recent years, dual-career families are increasing in which both the wife & husband work. This creates a serious burden on the women that they have to give time to their families also. The working hours of the organizations are also strict for the employees. Even working men also suffer from these employment policies because they do not properly give time to their families. So the challenge for the HRM increases with this particular issue. 7. **[Lack of Skills:]** The service sector development is expanding due to many reasons like change in the tastes & preference of customers, technological change, legal change etc. All of this affected the structure and managing style of the business organizations. The skills required in the employment of service sector is also advancing but the graduates of the technical colleges & universities are groomed according to the latest requirements. ### Organizational Challenges: The organizational challenges for the HRM are related to the factors that are located inside the organization. These can be control by the management of the organization to much extent. The proactive HR managers take notice of such challenges in advance and take corrective measures before these would convert into serious issues. 1. **[Controlling Costs]** An organization can avail the competitive position by lowering its cost & strengthening its cash flows. For this purpose, the labour cost of the organization is minimized through effective compensation system that adopts innovative reward strategies for good performances. In this way the favourable behaviours of the employees are rewarded so the organization would get the ultimate advantage. Moreover the policies of compensation should keep the labour cost under control. The effective employees should be selected that keep with the organization for a longer duration & proper training should also be provided to these employees. The HR department should also restore the work of the employees along with the improvement in the health & safety issue of working environment. All of these efforts would limit the cost of labour. 2. **[Improving Quality]** The quality improvement can lead an organization towards competitive advantage. The total quality management programs are employed that improves all the processes within the organization which would ultimately result in the improvement of the final product or service. 3. **[Developing Distinctive Capabilities]** Another method of gaining competitive advantage is to employ the people that have distinct capabilities to develop extra ordinary competence in specific area. 4. **[Restructuring]** Another technique is the restructuring of the organization in which the methods of performing different functions are altered positively. In some organizations the major functions of HR department are now transferred to the other parties in the shape of outsourcing, shared service center etc. The sizes of HR department in those organizations are shrinking because most of functions are performed by outsiders. But in most of the organizations the HR manager performs all the relevant functions of HRM. ### Individual Challenges: The decisions related to the specific individual employees are included in the individual challenges for the HRM. The organizational issues are also affected by the fact that how employees are treated within the organizations. The problems related to the individual level are as follow. 1. **[Productivity]** Productivity is defined as the measure of the value that an employee can add to the final product or service of the organization. Ability & motivation are two important factors that affect the employee productivity. The ability of the employee can be improved by the hiring & replacement along with the proper training & career development. On the other side quality of work life serves as accelerator to the motivational factor of the employees. 2. **[Empowerment]** In the modern days many organizations make changes in such a way that their individual employees apply more control on their work as compared to their superiors. This individual control of employees is called empowerment which helps the employees to work with enthusiasm, commitment & learn new skills because they make normal decisions about their work by themselves & hence enjoy their work. 3. **[Brain Drain]** One of the challenges for HRM is the detachment of the key potential employees from the organization which link with the competitors for higher remunerations etc. In such cases the organization loses its intellectual property & in many situations the leaving employees at the higher levels also take with them the potential lower level employees. This brain drainage is becoming serious issue in the high-tech companies. 4. **[Ethics & Social Responsibility]** Under this challenge, the organizations make an effort to benefit some portion of the society. This is now considered to the social responsibility of the organization to show favourable behaviour towards the society. The ethics serves as the basic principle for the socially behaviour of the organizations. Within organizations, the HR departments develop a code of conduct & principles of code of ethics that serve as the guidance for the personal behaviour of the employees of the organizations. The employees also expect from the management to show favourable decisions. 5. **[Job Insecurity]** Now many employees only desire to get a steady job rather than a job with promotional future. Even most successful organizations lay off its employees in the period of cut throat competition. The stock market also shows favourable results when layoffs has been made. All these things create a fear among employees about the insecurity of their jobs which would hinder their effective performance. **[\ ]** 6. **[Matching People & Organizations]** It has been proved from the research that the HR department contributes to the profitability of the organization when it makes such policies of employee selection in which those employees are selected & retained that best suits the culture of the organization & its objectives. For example it is proved from research that those employees would become beneficial for the high-Tech companies that can work in risky, uncertain environment having low pay. In short it is an important challenge for the HR department to hire and keep such employees whose abilities & strengths would match the requirements & circumstances of the organization. Role of HR manager: ------------------- In today\'s organizations, HR managers play important role at various level. Various experts have defined various role of HR manager according to the roles performed by them in different organization like that of counselor, mediator, change agent, problem solver, fire fighter and many more. Each one has been explained below : ### The Counselor : The HR manager performs the role of counselor and offers advices and suggestions to employees who have problems related to their present job, health education, career. ·married life or personal life. On consulting the HR manager provides solutions to overcome their problems. ### The Company Spokesperson : He represents the company while making various statements at meetings, conferences, media to employees on behalf of the company. ### The Change Agent : HR managers frequently act as catalysts in introducing changes in the company\'s programs. They are popularly known as change agents in the company. ### The Mediator : The role of HR manager is that of a middleman in times of disputes between labour, employees and management. They perform the function of resorting to amicable and peaceful relations between the disputing parties through effective communication and various other relationships maintaining skills. This role is also known as the liasoning role. ### The Humanitarian Role : As a humanitarian the HR manager keeps the management aware of their obligations and responsibility to the employees as well as reminds the management of various morals and ethics to be followed as well as implemented in the organization. ### Advisory Role : Under this role, the HR managers ensure effective manpower planning, recruitment, selection, training of employees and development of line managers and measuring individual and group performance. They advise top management on effective use of human resources. ### Welfare Role : The HR managers identify various programs like cooperative stores, canteens, uniforms and many such facilities to promote employees\' Welfare. They also develop programs to ensure effective communication, motivation and group dynamics to ensure good quality of work life. ### Fire Fighting Role : To ensure good industrial relations various participative and disciplinary practices are identified and introduced. In times of disputes and for collective bargaining agreements HR managers act as fire fighters to resolve grievances and disputes. ### Clerical Role : This role pe1formed by HR managers includes time keeping, maintaining employee records (MIS), recently termed as Management Information System, administering the pay roll and performance records. ### A controller : Effective HR managers and executives advise line managers on policies and help them in implementing programs. They also provide services like monitoring and controlling the implementation of these policies and programs. ### Employee Champion : The HR managers ensure full commitment and contribution of employees\' to the organization. They train line managers on the importance of employee morale and how to achieve it and they become the voice for employees\' problems and promote (advocate) their tights. Qualities of HR manager: ------------------------ The HR managers perform various functions and their roles differ from organization to organization depending upon the nature, size, location etc. However the following attributes and competencies are important for being effective HR managers. They must possess technical, cognitive and interpersonal skills. Some of the necessary skills have been explained below : ### Intelligence : He should be a person who can understand a situation and react accordingly. He needs to understand the nature of facts that exist in any problem so that he can readily provide solutions to those problems. He should have the ability and tact to articulate. moderate and understand so that he can effectively de.al with people and situations. ### Educational Skills : He should have the capability of teaching as well as leam1ng. He has to learn about organizational growth and need for individual developn1ent. He also needs to share this at various meetings and development programs thus. making teaching an essential quality. ### Experience : An experienced person would be able to understand and tackle problems and situations more effectively. A person experienced with the application of labour legislation human resource management. general management would definitely adopt a more practical approach in resolving HR problems. ### Qualifications : However the qualifications for HR managers vary from industry to industry and state to state the qualifications that shall be suitable for being an HR manager would be an MBA with HR specialization, Masters in Personnel Management, MA with Industrial relations, Masters in Performance Management or PGDPM ### Analytical Qualities : The HR manager may be faced with various problems. Those which may be important and urgent and the others which may only seem so. He must be able to differentiate and quickly understand the situation as well as the core problems and issues involved and accordingly priorities them. ### Emotional Stability : He should have high level of emotional stability. He should try and be free from anger and personal bias. He should be confident about handling any situation. He must be objective in his approach and must rely on facts and information without any kind of personal opinion or prejudice. ### Conceptual Skills : He should have the ability to understand the significant elements in a situation and the relationship between various variables in a situation. He must have broader perspective in order to deal with abstractions and set models and plans. ### Communication and Persuasive Skills: He must have excellent communication skills because he has to get his ideas accepted and implemented hence should be convincing and motivating in his approach. ### Executing Skills : He must have the ability to execute management\'s decisions objectively and accurately. He should be able to set performance standards, coordinate and control the working of the enterprise effectively. ### Human Relations Skills : Since he- has to deal with people he must understand the way people behave and 1nust regularly interact with them to seek cooperation for their effective performance. ### Professional Attitudes : An HR manager must possess a professional attitude. He should be empathetic and listen before offering advice. He should be patient and must possess understanding of various disciplines like sychology, engineering, sociology, commerce, law, management. He must be fair and just in his opinions and offer advices, such as to create mutual benefit. ### Discriminating Skills : He should have the ability to discriminate between right and wrong, merit and demerit and unjust and just. Thus he would be able to perform the humanitarian role effectively. **Human Resource Management (23UGMG202)** **Unit-2: JOb Environment** Job environment: ================ Job Analysis: ------------- The knowledge of job is very much important for performing major personnel functions like manpower planning, recruitment and selection. Moreover, standards for the best performance of the job are to be established against which the applicants\' qualifications and skills are compared and accordingly decision can be taken for putting the most suitable employees on different job positions. - **[CONCEPT:]** - This will mean redesigning the job. Work simplification helps to improve productivity of personnel. - Establishment of standards of performance in order to hire the personnel on a scientific basis, it is very necessary to determine in advance a standard of performance with which applicants can be compared. This standard should establish the minimum acceptable qualities necessary for the effective performance of the job duties and responsibilities. These standards would be established with the help of job analysis only. - Support to other personnel activities Job analysis provides support to other personnel activities such as recruitment, selection, training, development, performance appraisal, job evaluation etc. It is a complete and detailed study of the job. It is like a post mortem analysis of the job. It is a procedure by which all the relevant information regarding job is gathered. It is a systematic study with the help of which tasks, duties and responsibilities of a particular job are identified. The U.S. Department of Labour defined job analysis as \"the process of determining, by observation and study and reporting relevant information relating to the nature of the specific job. It is the determination of the tasks which comprise the job and of the skills, knowledge, abilities and responsibilities required of the worker of a successful performance and which differentiate one job from all others. \" - **[USES:]** - Human Resource Planning - Pay Fixation - Recruitment, Selection, Promotion, Transfer Decisions - Training and Development - Health and Safety Measures - Performance Evaluation ### **Job Description:.** Job description is the first immediate by-product of job analysis process. It is a recorded statement of facts about the activities of the jobholder, *how and why it is performed*. Job description statement reveals what, how and why job is to be done. It defines a scope of responsibility and continuing work assignment that are sufficiently different from those of other jobs to warrant a specific title". - **[COMPONENTS OF JOB DESCRIPTION:]** 1. **[Proper Job Title:]** It is desirable that the job title should be short, definite and suggestive of the nature of the job. The desirable qualities of job holder should also be clear from the title so that every job could be distinguished from one another. 2. **[Job Summary:]** Job summary describes the contents of the jobs in terms of activities or tasks performed. Job summary should clear the nature of the Job. Primary, secondary and other duties to be performed on the job, should clearly be indicated separately. 3. **[Job Location:]** Job location should also be given in the description of the job. Job location means the place where the job is to be performed i.e. in which department. 4. **[Duties and Responsibilities:]** This is the most important phase of job description and should be prepared very carefully. It describes the duties to be performed along with frequency of each major duty. Responsibilities concerning custody of money, supervision and training of staff etc are also described in this part. 5. **[Machines, Tools and Materials:]** The machines, tools, equipment and material required in the performance of each job should also be included in job description. It will indicate the nature and complexity of the job and will help in devising the training programmes. 6. **[Working Conditions:]** 7. The working environment in terms of heat, light, noise levels, dust and fumes etc, the job hazards and possibility of their occurrence and working conditions should also be described. It will be helpful in job evaluation. 8. **[Nature of Supervision:]** The nature of supervision required on each job should also be mentioned. There are certain jobs like unskilled jobs which require close supervision while other Jobs like skilled or supervisory or managerial jobs require less supervision. 9. **[Relation to Other Jobs:]** The jobs immediately below and above are mentioned. It provides an idea of vertical work flow and channels of promotion. It also indicates to whom the job holder will report and who will report to him. - **[CHARACTERISTICS OF A GOOD JOB DESCRIPTION:]** 1. It should be kept Up-to-date. Necessary adjustments and amendments should be made from time to time. 2. Job title should be short, definite & suggestive so as to indicate nature of the work. 3. It should describe in sufficient detail each of the duties and responsibilities. 4. Job specifications should clearly be mentioned. 5. It should be descriptive but short and concise. 6. Statement of opinion should be avoided. 7. Examples of work performed may be quoted. 8. It should ensure that a new employee can understand the job by reading it. 9. All employees must know the contents of job description. In order to make it up-to-date, a regular survey should be made in the organization and necessary changes should be incorporated in the existing job description. ### **Job Specification:** Job specification is also the product of job analysis. Job specification or employee specification is a statement of the minimum acceptable human qualities required for the proper performance of a job. It specifies the type of person required in terms of *educational qualifications, experience, aptitude* etc on the job and further assists in the selection of appropriate personnel by outlining the particulars working conditions to be encountered on the job. Job specification has been defined by various authors as follows: **According to Edwin B. Flippo,** \"A job specification is a statement of minimum acceptable human qualities necessary to perform a job properly\" **According to Dale Yoder,** \"The Job specification, as such a summary properly described is thus, a specialized job description, emphasizing personnel requirement and designed especially to facilitate selection and placement." It is clear from the above definitions that job specification is a statement of summary of personnel requirements for a job. It may also be called \"standard of personnel for the selection\" A job specification should include: **(i) Physical Characteristics** Such as height, weight, chest, vision, hearing, health, age, voice etc. **(ii) Psychological and Social characteristics** such as emotional stability, flexibility, decision making ability, analytical view, mental ability, pleasing manners, initiative, conversational ability etc. **(iii) Mental Characteristics** such as general intelligence, memory, judgement, ability to concentrate, foresight etc. **iv) Personal Characteristics** such as gender, education, family background, job experience, hobbies, extra-curricular activities etc. All these characteristics must be classified into three categories: \(a) Essential attributes which a person must possess. \(b) Desirable attributes which a person ought to posses. \(c) Contra indicators which will become a handicap to successful job performance. Job Design: ----------- Job design follows job analysis i.e. it is the next step after job analysis. Job design essentially involves integrating job responsibilities or content and certain qualifications that are required to perform the same. It outlines the job responsibilities very clearly and also helps in attracting the right candidates to the right job. Further it also makes the job look interesting and specialized. - **[JOB DESIGN APPROACHES/ TECHNIQUES:]** ### **Job Simplification** In job simplification, the complete job is broken down into [small subparts]. This is done so that employees can do these jobs without much specialized training. Moreover, small operations of the job can also be performed simultaneously so that the complete operation can be done more quickly. For job simplification, generally time and motion studies are used. ### **Job Rotation** Job rotation implies the shifting of an employee from one job to another job within a working group so that there is some variety and relief from the boredom of routine. Job rotation is horizontal or lateral transfer. Job rotation may be due to situational factor which means shifting the employee to another Job to meet the needs of work scheduling. Job rotation is also a part of management programme to develop managerial talent. **Advantages** i. It relieves the employee from the boredom of doing the same job. ii. The employee experiences variety of work, workplace and peer group. iii. Job rotation broadens the knowledge and skills of an employee. iv. Job rotation broadens the work experience of employee and turns specialists into generalists. v. It is beneficial for the management also as the management gets employees who can perform a variety of tasks to meet the contingencies. vi. This method improves the self image and personal worth of the employee. **Disadvantages** i. Frequent shifting of employees may cause interruptions in the work routine of organization. ii. Job rotation may lead to increase in costs and decrease in productivity due to shifting of employees to new positions just when their efficiency on particular Job has started improving. iii. The employees who want specific responsibility in a chosen speciality may feel demotivated. iv. This method has very limited impact on employee motivation and productivity. ### **Job Enlargement** Enlargement is done only *[on the horizontal level]*. Thus, the job remains the same, but becomes of a larger scale than before. In the words of Geoge Strauss and L.R. Sayles \"Job enlargement implies that instead of assigning one man to each job, a **group of men can be assigned to a group of Jobs** and then allowed to decide for themselves how to organize the work. Such changes permit more social contacts and greater control over the work process·\" **Advantages** i. Increase in variety of jobs ii. Increases the knowledge necessary to perform it iii. Reduces monotony and boredom iv. Trains and develops more versatile employees **Disadvantages** ### **Job Enrichment** Job enrichment consists of designing the job in such a way that the worker **gets greater autonomy for planning and controlling** his own performance. The greatest motivation for the employee, according to this method, is the opportunity for achievement, recognition, responsibility, and growth. **According to Richard W. Beatty and Graig Eric, Schneider** \"Job enrichment is a motivational technique which emphasizes the need for challenging and interesting work. It suggests that jobs be redesigned so that intrinsic satisfaction is derived from doing the job. In its best applications it leads to a vertically enhanced job by adding functions from other organizational levels, making it contain more variety and challenge and offer autonomy and pride to the employee\" Simply means, adding a few more motivators to a job to make it more rewarding. A job is enriched when the nature of the job is made more exciting, challenging and creative or gives the job holder more decision making, planning and controlling powers. **Techniques of the Job Enrichment:** i. Add new tasks to the Job for increasing the scope of the job. ii. Allow the employee to set his own standards of performance. iii. Minimize the control to provide freedom to employees. iv. Make an employee directly responsible for his performance. v. Provide feedback to the employees. vi. Encourage participation of employees in deciding organizational goals and policies. vii. Introducing new, difficult and creative tasks to the employees. viii. Make the personnel understand how tasks contribute to a finished product of the enterprise. **Advantages of Job Enrichment** i. Job enrichment is the most widely used method of job design as it provides a meaningful work experience and learning to employees. ii. It makes the work interesting iii. It helps in reducing the rate of labour turnover and absenteeism. iv. It increases skills of the employees. v. Workers get higher Job satisfaction as redesigned jobs provide intrinsic motivation to the employees. vi. Organization gets improvement in output both quantitative and qualitative. **Disadvantages of Job Enrichment** i. Enriched jobs may fail to motivate employees who prefer job security, shorter work, bonus and good pay to autonomy and responsibility. For such employees, job enrichment may lead to feelings of inadequacy, failure and dependence. They may consider it an additional burden without appropriate compensation. ii. Job enrichment proves to be a costly process as the expenditure involved is higher than the gain in productivity. iii. It may not be possible to enrich all the jobs especially the technical jobs with specialized machinery. iv. Job enrichment does not necessarily mean Job satisfaction. Jobs of highly skilled professionals are very challenging in nature but it does not mean that they are always satisfied with their Jobs. ### **Job Engineering** Job engineering focuses on the tasks to be performed, methods to be used, workflows among employees, layout of the workplace, performance standards, and interdependencies among people and machines. Experts often examine these job design factors by means of time-and-motion studies, determining the time required to do each task and the movements needed to perform it efficiently. This approach continues to be successfully used, particularly when it is combined with a concern for the / social context in which the jobs are performed. Job engineering may be used with success, subject to the following golden rules of work design being ensured: The end product/output of the work is clearly defined and fully understood by the employees. The steps/tasks to be performed to achieve the required end product/output are clearly defined in the appropriate sequence. The employees know and understand where their responsibility starts and finishes in the work process. The tools, facilities and information needed to perform the work are readily available and fully understood by the employees: There is a process whereby the employees can suggest possible improvements in the work design and exercise initiative in implementing them. The employees are involved in the work design process. ### **Socio-technical Systems** The socio-technical systems approach focuses on organizations as being made up of people with various competencies (the social systems) who use tools, machines and techniques (the technical system) to create goods or services valued by customers and other stakeholders. Thus, the social and technical systems need to be designed with respect to one another and to the demands of customers, suppliers and other stakeholders in the external environment. Because of their impact, socio-technical systems are complex and influence the way work is performed throughout the organization. ### **Ergonomics** Ergonomics focuses on minimizing the physical demands and risks of work. This approach helps ensure that job demands are consistent with people\'s physical capabilities to perform them with least risk. It involves the design of aids (ranging from computer software to instruments) used to perform tasks. Where jobs are well designed (through ergonomics), workers report less physical effort and fatigue, fewer aches and pains, and hence fewer health complaints. The likelihood of accidents is reduced and employees have more favourable attitudes towards their work and experience job satisfaction. But on the cost side, equipment investments are high and training requirements tend to increase. Ergonomics has become more relevant now because employees stay in the work-force longer, and jobs are altered to meet their changing physical needs. Its relevance is also felt more now because of the need to accommodate individuals with physical disabilities (eg., impaired hearing or loss of mobility in the limbs). Job Evaluation: --------------- Job evaluation is the outcome of Job Analysis while the job analysis describes the duties of a job, authority responsibility relationships skills required, conditions of work and other relevant information, job evaluation uses the information produced by job analysis to evaluate each job which means determining the relative worth of a job by valuing its different components. In short it can be called as the process of measuring value of jobs in an organization. It helps the management in maintaining high levels of employee productivity and satisfaction. If these job values are not ascertained properly. jobs would not be appropriately priced i.e.; highly valued jobs may receive less pay than low valued jobs. This would dissatisfy the employees and they may leave jobs or not perform their jobs effectively. - **[DEFINITION:]** **According to Kimball and Kimball,** \"An effort to determine the relative value of every job in a plant in order to determine what the fair basic wage for such a job should be.\" - **[OBJECTIVES:]** - To secure and maintain complete description of each job in the organization. - To provide a standard procedure for determining the relative value of each job in the organization. - To determine a fair rate of salary / compensation for each job in relation to other jobs in the industry. - To ensure same wages/ compensation is paid to all qualified employees who are involved in doing similar work. - To promote and provide a factual basis for consideration of wage rates for similar jobs in the industry. - To provide information for employee selection, placement, training and other similar areas. - **[METHODS:]** There are basically four methods of Job evaluation : 1. **The Ranking Method** 2. **Job Classification or Grading Method** 3. **The Point System** 4. **Factor Comparison Method** ### **[The Ranking Method:]** Under this system, all the jobs are arranged or ranked in the order of their importance from the simplest to the hardest or in the reverse order, each successive job being higher or lower than the previous one in the sequence. A more common practice is to arrange all the jobs according to their requirements by rating them. An example of Pharma Company\'s sales job ranking could be - Marketing Manager - Regional Marketing Manager - Area Sales Manager - Medical Representative After ranking additional jobs between those already ranked, an appropriate wage rate / compensation is assigned. - This system is simple, easily understood and easy to explain to employee unions. - It is very suitable for small organizations with clearly defined jobs. - It is less expensive in its implementation cost as compared to other systems. It also demands minimum maintenance and efforts. - It requires less time, fewer forms and less work. **Demerits of Ranking Method :** - As there is no standard for an analysis in the whole job position different basis of comparison between rates occur. This method is based on judgment and hence tends to be influenced by a variety of personal biases. - Specific job requirements like skill, effort, responsibility are not normally analyzed separately. - Introduction of a new job would change rank of all other jobs. ### **[Job Classification or Grading :]** This method of job evaluation was made popular by the U.S. Civil Service Commission. Under this system, a number of predetermined grades are first established by a committee and then various jobs are assigned within each grade or class. After formulating and studying job description and job specification, jobs are grouped into classes or grades which represent different pay level ranging from low to high. Common job responsibilities, knowledge and experience can be identified by the process of job analysis. Certain jobs may then be grouped together into a common grade or classification. - This method is simple to operate and understand as it does not take much time and does not even require technical help. - Since oral job descriptions are used, the evaluation of jobs tends to be more accurate as compared to the ranking system. - It is used in government services and operates efficiently but not very commonly used in industry like Indian Railways uses it. - The grouping of jobs makes salary determination problems administratively easier to handle. Salary grades are determined for all job classifications. - **Although it is more accurate than the ranking system, it depends on the personal evaluations made by a supervisor or rater.** - **This system is rigid and unsuitable for large organizations having variety of jobs.** **[\ ]** ### **[Job Classification or Grading :]** ----------------------------------------------------------------------------------------------------------- Sr. No. **Factor** --------- ----------------------- -------------------- --------------- ---------------- ------------------- **1** **Education** **Post Graduation\ **Graduation\ **High School\ **Primary School\ (05)** (04)** (03)** (02)** **2** **Experience** **2 Years\ **1 Year\ **6 Months\ **Fresher\ (05)** (04)** (03)** (02)** **3** **Mental Effort** **Very High\ **High\ **Average\ (05)** (03)** (02)** **4** **Complexity of Job** **Very High\ **High\ **Average\ (05)** (03)** (02)** ----------------------------------------------------------------------------------------------------------- In this method of job evaluation, different characteristics of job are identified and points are assigned to each factor. The job having the highest points will be provided with a very high salary, the job having less number of points indicates that its value is relatively low and hence the person appointed for this job would be paid accordingly. **Merits of the Point System :** - Once the point scales are developed they can be used for a longer period of time and this method can be used even when some job changes like promotion and transfer occur. - Prejudice and human judgement are minimized and hence manipulation may not be possible - It has the ability of handling large number of jobs and enjoys stability as long as the factors identified remain relevant - The worker\'s acceptance of this system is very high because it is most systematic and objective than other methods of job evaluation. **Demerits of the Point System :** - The development and installation of this method calls for a very heavy expenditure. - The task of defining different job factors for all jobs is very time consuming and difficult. - It is a complex method which requires skilled personnel and - sometimes workers do not fully understand this method - It increases work since it involves recording work of all job factors during evaluation. ### **[Factor Comparison Method:]** **Here the evaluation committee selects some key jobs for which clearly understood job descriptions and salary rates are agreed upon and are acceptable to management and workers\' unions.** **Under this method each job is ranked several times- once for each factor selected. e.g. : Jobs may be ranked first in terms of the factor \'skill\' and then \'education\' and then \'experience\'. Finally these individual ratings are combined for each job and the overall evaluation is prepared as shown below :** +-------------+-------------+-------------+-------------+-------------+ | **Factors** | **Mental | **Responsib | **Education | **Experienc | | | Skills/** | ility** | ** | e** | | | | | | | | | **Concentra | | | | | | tion** | | | | +=============+=============+=============+=============+=============+ | **Job\ | **A** | **D** | **C** | **E** | | Ranking** | | | | | +-------------+-------------+-------------+-------------+-------------+ | | **B** | **A** | **D** | **A** | +-------------+-------------+-------------+-------------+-------------+ | | **C** | **E** | **A** | **C** | +-------------+-------------+-------------+-------------+-------------+ | | **D** | **B** | **B** | **D** | +-------------+-------------+-------------+-------------+-------------+ | | **E** | **C** | **E** | **B** | +-------------+-------------+-------------+-------------+-------------+ **[Fixing up value of Job:]** **Job Factors** **Job A** **Job B** **Job C** **Job D** **Job E** ----------------- ----------- ----------- ----------- ----------- ----------- Concentration 300 175 150 100 50 Responsibility 200 130 75 275 100 Education 175 150 300 200 80 Experience 200 50 160 120 300 **Total** **875** **505** **685** **695** **530** **\ Merits of Factor Comparison Method :** - It is systematic quantifiable method for which step by step instructions are available. - It is fairly easy system to explain to the employees and their unions. - It is a scientific method with greater validity and reliability. - It is an objective method and there is minimum chance of personal bias and preferences. **Demerits of Factor Comparison Method :** - It is costly to install and somehow difficult to operate for anyone who is not acquainted with the general nature of job evaluation techniques. - The system is complex. - Wage levels change from time to time and these minor changes have to be adjusted to all the jobs considered under this method which means change in one job position would affect all other jobs too. **Human Resource Management (23UGMG202)** **Unit-3: Basic Functions of HRM** Basic Functions Of HRM: ======================= Human Resource Planning: ------------------------ Planning is determining future course of action. Human resource planning pertains to determining future requirement of human resource **in terms of quality as well as quantity.** Human resource planning is projecting the number and kind of employees needed in future to achieve organizational objectives and deciding the action plan to be used to meet this requirement. It is the determination of future course of action to be taken to fill the gap between present status and future requirement so far as number and nature of employees are concerned. The meaning of the term ***'Human Resource Planning'*** would become clear on the basis of some definitions. "Man power planning or human resource planning the process of determining man power requirements and the means for meeting those requirements in order to carry out the integrated plan of the organization.\" "Human resource planning is the process by which an organization should move from its current manpower position to desired manpower position. Through planning, management strives to have the right number and right kind of people at the right place at the right time, doing things which result both the organization and the individual receiving maximum long-run benefit." \- E. W. Vetter According to **Wickstrom,** human resource planning consists of the following series of activities : 1. To forecast future manpower requirement with the help of suitable forecasting techniques. 2. To take stock of the available manpower and to check their level of utilization. 3. To match present employees and future.requirements and to find the qualitative as well as quantitative gap. 4. To plan programs of selection, recruitment, promotion, transfer, development, training, etc. to fill the gap and to ensure the fulfilment of future requirement. In simple words, manpower planning is making provision for right kind and right number of employees to perform various duties so as to achieve organizational objectives as well as to fulfil individual requirements of the employees. ### **PROCESS :** Human resource planning is a sequential procedure prescribed in the form of a series of logical steps. The process can be explained as under : ### **[Analysis of Organizational Strategy :]** The very first step in the process of human resource planning is to study and analyze corporate level strategy. Company's strategy could be of merger, amalgamation, diversification, expansion, etc. Functional level strategies are to be determined in accordance to the overall strategy. Thus, human resource strategy is to be designed keeping in view organizational strategy. ### **[Estimation of Human Resource Demand :]** Human resource requirement is estimated keeping in view organizational strategy. Requirement is to be estimated in terms of number in the sense that how many employees would be needed to implement corporate strategy. Same way estimation is to be done for the type of employees needed in terms of required skills and knowledge. ### **[Forecasting of Human Resource Supply:]** The very first step in the exercise of estimating future supply of human resource is to take stock of existing human resource inventory. It involves following steps: - Total number of employees is counted. - Number is counted department wise, designation wise, salary wise, skill wise, etc. - Job Categories are developed on the basis of skill requirement, nature of job, etc. - Job categories are developed on the basis of age. Then number and nature of employees are counted in each category. After taking the stock of existing employees, future supply of employees is calculated considering potential additions and potential losses in the present stock of employees. **Present Inventory + Potential Additions = Total future supply** **Total Future Supply - Potential Losses = Net Future Supply** Potential additions could be in the,, form of transfers, promotions, new recruitments, demotions, etc. Potential losses can take place in the form of resignations, retirement, promotions, demotions, transfers, discharges, VRS, dismissals, deaths, etc. ### **[Estimation of Net Human Resource Requirement :]** Net human resource requirement is estimated taking into consideration future demand and net future supply of the employees. This requirement is to be estimated number-wise and nature-wise. **Net Human Resource Requirement = Future Demand - Net Future Supply** ### **[Managing Surplus of Human Resource :]** If surplus is estimated in some departments, only then some employees can be shifted to other departments by way of promotion, transfer or demotion to the extent possible. There are two possibilities: Relocation and Retrenchment. a. **Relocation of Employees :** - Such employees are identified and **career guidance and training** is planned for them so that either they can be placed in some other departments of the same organization or they can be helped in making themselves fit to take up jobs outside the organization. - The surplus employees can be given job in the **sister concerns** if possible. - If the vacancies are there for almost similar kind of job **in other organization** then HR manager would help surplus employees in getting employment in such other firms. b. **Retrenchment / Cutback :** - **Sharing the Work :** Employees can be asked to share the jobs wherever possible so that the surplus employees can be accommodated and to that extent the burden of other employees would reduce. - **Reduction in Working Hours :** Work burden of each employee can be reduced and **each one** of them can be asked to work for less number of hours so that the employees that have become extra can be given that part of the job. - **Leave Without Pay Policy :** Surplus employees can go for leave without pay so that the company can reduce the cost of labour and the employees can be given time to prepare themselves for taking up job somewhere else after some time. - **Temporary or Permanent Layoff :** In case of temporary layoff, employees are asked not to come to work place only for the temporary time period. Such layoffs take place due to such reasons like machine breakdown, temporary material non availability, power failure, etc. Permanent layoff takes place when the company closes its business permanently. - **Early Retirement :** Some employees can be- offered the scheme of getting retired early, i.e., before the actual due date of retirement. They can be given some extra cash benefit over and above the regular retirement benefits. This is the reason why it is known as Golden Handshake. This is also known as Voluntary Retirement Scheme. - **Attrition** : When the excess of supply over demand is estimated then the policy of attrition is followed wherein positions that get vacant are not filled so that there will not be addition to existing workforce so as to avoid the problem in future. - **Forced Retirement :** In case of compulsory retirement, extra employees are identified and they are asked to leave the job compulsorily. They are not left with any choice but to retire. They are given regular retirement benefits but no extra benefits are given to them. This is known as Iron Handshake. - **Creation of Adhoc Positions :** At times, companies create temporary/adhoc jobs just to retain some extra employees so that they do not lose their employment immediately or in short run. **[\ ]** ### **[Managing Deficit of Human Resource :]** If the estimation says that there will be deficit in future so far as human resource is concerned either in the whole organization or in any part/department of the organization, planning should be done to fill the gap. a. **Internal Plan:** It covers mainly following plans : - Promotion Plan : - Transfer Plan : - Training and Development Plan : - Retention Plan : b. **External Plan :** - Outsourcing Plan : - Recruitment and Selection Plan ### **[Revising Organizational Plan and Strategy:]** Organizational plan is to be changed if it is concluded that future requirements cannot be fulfilled hilly after considering all possible sources. The overall plan is to be altered keeping in view future scarcity of human resource. Recruitment and Selection: -------------------------- ### **[reCRUITMENT:]** Procurement function is one of the important functions to be performed by the personnel manager. The first stage in the procurement function is man power planning. Human resource planning determines the number and type of employee required to carry out organizational plans in the future. Recruitment is the second important stage in the process. **[\ ]** #### **DEFINITIONS :** **According to Edwin B. Flippo,** \"Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization.\" **According to Yoder,** \"Recruitment is a process to discover the sources of man power to meet the requirements of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient workforce.\" #### **CONCEPT :** Man power planning states the requirement of the employees in terms of number and nature. The next step is to find out from where the required employees can be availed and to work out the strategy for encouraging and attracting these prospective employees towards the organization. Thus, recruitment is the process of searching the potential candidates for filling organizational vacancies. This is how it links the job seekers and job providers. Recruitment is a process of finding and attracting the potential resources for filling up the vacant positions in an organization. #### **SOURCES OF RECRUITMENT :** A. Internal Sources B. External Sources +-----------------------------------------------------------------------+ | **A. Internal Sources of Recruitment** | +=======================================================================+ | 1. Present Employees | | | | 2. Former/Retired Employees | | | | 3. Dependents of present, Deceased, Disabled or retired Employees | | | | 4. Employee Referrals | +-----------------------------------------------------------------------+ ### **[Internal Sources:- ]** {#internal-sources-.ListParagraph} 1. **Present Employees:-** Usually to fill higher level vacancies, first preference is given to the present employees working on the permanent basis in the organization. Present employees can also be given chance when their qualifications match the requirements or when trade unions pressurize to do so. Two effective ways are there to do recruitment from present employees: \- Promotion \- Transfer 2. **Former/ Retired Employees:-** Organization can always reconsider those employees who have already served the organization in the past if their qualifications match the requirements of the new openings. The advantage here is that the performance of the employee is known to the organization. 3. **Dependents of present, Deceased, Disabled or retired Employees:-** At times, an opportunity is given to the dependents of the present, deceased, retired or disabled employees in the organization. This is how an organization can show its commitment towards not only the employees but their family members also. 4. **Employee Referrals:-** Present employees can work as an intermediary between the firm and their relatives and friends. In an organizations, with a large number of employees, Employee Referrals can provide quite a large pool of potential organizational members. +-----------------------------------------------------------------------+ | **B. External Sources of Recruitment** | +=======================================================================+ | 1. **Advertisements** | | | | 2. **Employee Exchanges** | | | | 3. **Campus Recruitment** | | | | 4. **Casual Applicants** | | | | 5. **Data Banks** | | | | 6. **Trade Unions** | | | | 7. **Gate Recruitment** | | | | 8. **Labour Contractors** | | | | 9. **Competitors** | | | | 10. **Walk-ins, Write-ins and Talk-ins** | | | | 11. **Recruiting Agencies** | +-----------------------------------------------------------------------+ ### **[External Sources:- ]** {#external-sources-.ListParagraph} 1. **Advertisements** Advertisement is the best method of recruiting persons for higher and experienced jobs. The advertisements are given in local or national press, trade or professional journals. The requirements of jobs are given in the advertisements. Basically there are two types of employment advertisements: **Wants ads and blind ads.** **Wants ads -** Ads describe the job identify the employer **Blind ads -** Ads which do not identify employer 2. **Employee Exchanges** Employment exchanges run by the government are also a good source of recuitinent. Unemployed persons get themselves registered with these exchanges. The vacancies may be notified with the exchanges, whenever there is a need. The job-seekers and job-givers are brought into contact by the employment exchanges. 3. **Campus Recruitment** From different educational institutions like schools, colleges and universities providing education in different fields, inexperienced candidates can be recruited whereas from training institutions trained candidates can be recruited. In some companies recruiters are bound to recruit a large number of candidates from these institutes every year. 4. **Casual Applicants** Some candidates apply on their own in the organization without the organization giving any advertisement for job vacancies. The number of such casual applications depends on the image of the organization in the local activities, level of unemployment etc. 5. **Data Banks** The recruiting firms can **prepare** a data bank about various persons in different fields. They can collect information from educational institutions, employment exchanges, professional organizations etc. It Will become another source and the firm can get the particulars as and when it needs to recruit. 6. **Trade Unions** Unions. Generally, unemployment and underemployed persons make a request to trade union leaders for finding suitable jobs for them, union leaders are aware of various vacancies in firms and also know the management. These leaders can help in the recruitment of suitable persons. 7. **Gate Recruitment** A notice on the notice board of the company specifying the details of the Job Vacancies can be put. Such recruitment is called direct recruitment. It is a very economical method and used mainly for unskilled and casual job vacancies. 8. **Labour Contractors** When workers are required for short periods and are hired without going through the full procedure of selection etc. Contractors or jobbers are the best source of getting them. The contractors maintain regular contract with workers at their places and also bring them to the cities at their expense. 9. **Competitors** Rival firms can be a source of recruitment. This method involves identifying the right people in rival companies and offering them better terms. 10. **Walk-ins, Write-ins and Talk-ins** - Walk-ins are declared by companies on the specific day and time and conducted for selection. - Write-ins are those who send written enquiries. These job seekers are asked to complete application forms for further further processing. - Talk-ins are becoming popular nowadays. Job aspirants are required to meet the recruiter (on an appropriated date) for detailed talks. No application is required to be submitted to the recruiter. 11. **Recruiting Agencies** Several private consultancy firms perform recruiting functions on behalf of client companies by charging fees. ### **Selection:** #### **cONCEPT:** Selection is a process of identifying and hiring the applicants for filling the vacancies in an organization. Employee selection is a process of matching organization's requirements with the skills and the qualifications of individuals. #### **DEFINITIONS:** **According to dale Yoder,** \"Selection is the process in which candidates for employment are divided into two classes- those who are to be offered employment those who are not.\" **\ ** **According to R.M. Hodgetts,** "Selection is the process in which an enterprise chooses the applicants who best meet the criteria for the available positions." #### **pROCESS OF sELECTION:** The selection process can be defined as the process short listing of the right candidates with the necessary qualifications and skill set to fill the vacancies in an organization. The selection process varies from industry to industry, company to company and even amongst departments of the same Every organization creates a selection process because they have their own requirements. Although, the main steps remain the same. So, let's understand in brief how the selection process works. 1. **[Preliminary Interview or Screening :]** When the organization gets large number of applications, it is advisable to conduct preliminary interview so that the candidates not fulfilling the primary criteria can be eliminated at the outset only. It is a sorting process wherein the candidates are given some basic information on the nature of the job to be performed and the nature of the organization. At the same time, organization tries collect some primary information on the qualifications, experience, expected salary etc. from the prospective candidates. The main purpose of this interview is to reject the candidates who do not satisfy the minimum requirement for getting selected in the organization. 2. **[Application Form :]** An application form or an application blank is a tool with the help of which the information required for making selection decision is collected from the candidates. Application form can be very long and detailed or it can be short. and, precise according to the requirement. Mainly it contains following information : i. **Personal or Biographical Information:** Name, Address, Date and Place of Birth, Age, Gender, Nationality, Height and Weight, Marital Status, etc. ii. **Educational Achievement :** Degrees- obtained, Subjects selected, Training undergone, other courses completed, etc. iii. **Salary** : Expected and Present salary iv. **Experience** : Number of -previous jobs, duties performed and salary offered in each case, etc. v. **Other Information :** Achievements in sports and extra-curricular activities, hobbies, memberships in professional institutions, etc. The data provided in the application form serves as a base for evaluating the candidate and for checking the possibility of his/her selection for the job concerned. 3. **[Tests :]** Tests are very important instruments for doing comparative evaluation of candidates on the basis of their behaviour and attitudes. It works as a tool to match the requirements of the job and the characteristics of the candidates, necessary input for taking selection decision. Selection tests can be grouped into following categories : i. **[Aptitude Tests : ]** These tests measure the ability of the candidate to acquire new skills and to learn new job if adequate training is given. ii. **[Achievement Tests : ]** When the organization wants to employ experienced candidates, these tests are taken with the help of which the accomplishments of the candidates are measured. iii. **[Interest Tests : ]** These tests are conducted to know the likes and dislikes of the candidates so far as the job, work, and hobbies, recreational activities are concerned. **[\ ]** iv. **[Situational Tests : ]** These tests measure the ability of the candidates to cope up and work under different critical situations. v. **[Personality Tests : ]** These are the tests that measure different personality traits like maturity, values and principles, emotional stability, etc. 4. **[Interview :]** Interview is a tool which helps the employer to gather some important information on the basis of the candidates\' oral responses to the oral inquiries made by the interviewers. It is a two-way exchange of information wherein the interviewer tries to know about the candidate and the applicant tries to know the employer. No selection procedure gets complete without interview. Basically interviews are of two types : i. **Structured Interviews :** Here, the questions as well as acceptable responses are pre decided. ii. **Unstructured Interviews :** Here, in the absence of the pre fixed format, questions are asked as they come in mind while taking with the candidate. 5. **[Medical Examination :]** Physical examination is meant for judging the physical fitness of the candidates. Medical examination tells whether the candidate possesses the required physical capacity according to the job requirements or not. It provides base for the selective placement of the candidate on the basis of the identified deficiencies through, medical examination. Physical examination serves many purposes : - Physical fitness of the candidate can be judged. - It reveals the existing disabilities of the applicants at the time of getting job in the company and even works as a future reference. - Candidates having infectious diseases can be identified and rejected. - Candidates who are otherwise suitable for the job but physically handicap can be put to specific job. 6. **[Reference Checks :]** Applicants are asked to give references of two or three well-known persons who know the candidate well. Previous employer can give reference for his past employee. On the basis of the information provided by these people, judgment can be derived regarding the potential performance of the candidate. Opinion given by the referee is generally not considered very reliable as the opinion given is rarely unfavourable, then also reference check is considered very important stage in the selection process. 7. **[Final Approval and Appointment :]** At the end of the selection procedure, human resource department gives its recommendation on the selection of the candidate. Final decision is left on the concerned department where the candidate is put on the job. If approved, appointment letter is issued to the candidate wherein the designation, salary grade and terms and conditions of the employment are mentioned. Placement: ---------- When the candidate is selected for a particular post and when he reports to duty, the organization has to place him or her in the job for which he or she is selected which is being done through placement. Placement is the act of offering the job to a finally selected candidate. It is the act of finally assigning the rank and responsibility to an employee, identifying him with a particular job. In the words of Pigors and Myers, "Placement is the determination of the job to which an accepted candidate is to be assigned and his assignment to that job. It is a matching of what the supervisor has reason to think he can do with the job demands. It is a matching of what he imposes in strain, working conditions and what he offers in the form of pay roll, companionship with others, promotional possibilities etc." #### **Principles:** 1. Man should be placed on the job according to the requirements of the job. The job should not be adjusted according to the qualifications or requirements of the man. Job first, man Next, should be the principle of placement. 2. The job should be offered to the man according to his qualifications. The placement should neither be higher nor lower than the qualifications. 3. The employee should be made conversant with the working condition; prevailing in the industry and all things relating to the job. He should also be made aware of the penalties if he commits a wrong. 4. While introducing the job to the new employee, an effort should made to develop a sense of loyalty and cooperation in him so that he may realize his responsibilities better towards the job and the organization. 5. The placement should be ready before the joining date of the newly selected person. 6. The placement in the initial period may be temporary as changes are likely after the completion of training. The employee may be later transferred to the job where he can do better justice. Proper placement helps to improve employee morale. The capacity of the employee can be utilized fully if he is placed on the job for which he is most suitable. Right placement also helps to reduce labour turnover absenteeism and accident rates. If a candidate adjusts himself , to the job and continues to perform as per expectations, it might mean that the candidate is properly placed. Induction: ---------- #### **Introduction**: It is the process of receiving and welcoming an employee when he first joins a company and giving him the basic information he needs to settle down quickly and happily and start work. It is a welcoming process to make him feel at home and generate in him a feeling of belongingness to the organization. In the process of induction the new comer is explained his duties and responsibilities, company rules, policies and regulations so as to make him familiar to the organization. #### **Meaning:** **Induction is a function whereby a new employee is made familiar with the job, organizatio

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