HRM Intro 2007 Ppt

HUMAN RESOURCE HUMAN RESOURCE MANAGEMENTMANAGEMENT

HRMHRMManagement of work force of an Management of work force of an

organisation ie how to manage the organisation ie how to manage the different people working together in different people working together in a organisation.a organisation.

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

HRMHRM HRM is concerned with the people HRM is concerned with the people

dimension in management. Since dimension in management. Since every organisation is made up of every organisation is made up of people, acquiring their services, people, acquiring their services, developing their skills, motivating developing their skills, motivating them to higher level of performance, them to higher level of performance, and ensuring that they continue to and ensuring that they continue to maintain their commitment to the maintain their commitment to the organisation are essential to achieving organisation are essential to achieving organisational objectives. This is true, organisational objectives. This is true, regardless of the type of organisation regardless of the type of organisation ie government, business, education, ie government, business, education, health.health.

Objectives of HRMObjectives of HRM Societal objectives – To be socially responsible to Societal objectives – To be socially responsible to

the needs of the society.the needs of the society.

Organisational Objective – To recognise the role Organisational Objective – To recognise the role of HRM in bringing about organisational of HRM in bringing about organisational effectiveness.effectiveness.

Functional objective – To maintain department’s Functional objective – To maintain department’s contribution at a level appropriate to the contribution at a level appropriate to the organisation’s needs.organisation’s needs.

Personal Objective – To assist employees in Personal Objective – To assist employees in achieving their personal goals, at least in so far achieving their personal goals, at least in so far as these goals enhance the individual’s as these goals enhance the individual’s contribution to the organisation.contribution to the organisation.

Objective of HRMObjective of HRM HRM Obj. Supporting HRM Obj. Supporting

functionfunction

Societal Objective

1. Legal compliance2. Benefits

3. Union Management relations

Organisational Objectives

1. HRP2. Employee relations

3. Selection4. Training & Development

5. Appraisal6. Placement

Objectives of HRMObjectives of HRM HRM Obj. Supporting HRM Obj. Supporting

functionfunction

Functional objectives1. Placement

2. Assessment

Personal Objectives1.Training & Development

2. Compensation

Competitive challenges and HRCompetitive challenges and HR

1.1. Going globalGoing global

2.2. Embracing new technologyEmbracing new technology

3.3. Managing change and organisation Managing change and organisation cultureculture

4.4. Responding to the marketResponding to the market

5.5. Containing costsContaining costs DownsizingDownsizing Outsourcing and employee leasingOutsourcing and employee leasing Enhancing productivityEnhancing productivity

Other challenges facedOther challenges faced Demographic and Employee Demographic and Employee

concernsconcerns Demographic changesDemographic changes Diversity of backgroundsDiversity of backgrounds Age distributionsAge distributions Gender distributionGender distribution Rising level of educationRising level of education

Cultural changesCultural changes Concern for employee rightsConcern for employee rights Changing attitude towards workChanging attitude towards work Balancing work and familyBalancing work and family

Functions of HRFunctions of HR

MANAGERIAL FUNCTIONS

Planning

Organising

Directing

Controlling

OPERATIVE FUNCTIONS

Staffing

Development

Compensation

Motivation

Maintenance

Integration

Operative functions of HROperative functions of HR

STAFFING Job analysis, HRP, Recruitment, Selection, Placement, Induction, Internal Mobility

DEVELOPMENTCompetency profiling, Training and development, Performance & potential management, Career management, 360 degree feedback

COMPENSATION & MOTIVATION

Job design, Work scheduling, Job evaluation, Compensation administration, Incentives and benefits

Operative functions of HR (contd.)Operative functions of HR (contd.)

MAINTENANCE Health, Safety, Welfare

INTEGRATIONEmployment relations, Grievance, Discipline, Trade unions, Participation

Scope of HRMScope of HRMLabourLabour or Personnel aspector Personnel aspect – –

Recruitment, Selection, Transfer, Recruitment, Selection, Transfer, Promotion etc.Promotion etc.

Welfare aspectWelfare aspect – Housing, Lunch – Housing, Lunch room, Health and Safety, Transport, room, Health and Safety, Transport, education etc.education etc.

Industrial relation aspectIndustrial relation aspect – Union – Union Management relations, Negotiation, Management relations, Negotiation, Grievance handling etc.Grievance handling etc.

HRM Environment - ExternalHRM Environment - External

Professionalism

Social & cultural

Union

Political & legal

Economic

Technology

HRM

HRM Environment - InternalHRM Environment - Internal

MissionOrganisational

Conflict

Policies

HRM

HRM PoliciesHRM Policies Policy Policy – is predetermined course of action – is predetermined course of action

established to guide the performance of established to guide the performance of work towards accepted objectives.work towards accepted objectives.

ImportanceImportance -: -:

(1) Clear Thinking(1) Clear Thinking

(2)Uniformity & Consistency of Admin.(2)Uniformity & Consistency of Admin.

(3)Sence of Security(3)Sence of Security

(4)Control(4)Control

Types of HR PoliciesTypes of HR Policies Originated policiesOriginated policies – Made by top – Made by top

Management.Management. Appealed policiesAppealed policies – Made on request to – Made on request to

handle certain situation, or if certain handle certain situation, or if certain aspects are missing in the main policy.aspects are missing in the main policy.

Imposed policiesImposed policies – Imposed by Govt & – Imposed by Govt & Legal authorities.Legal authorities.

General policiesGeneral policies – Do not relate any issue, – Do not relate any issue, may represent the priority of Top Mgmt. may represent the priority of Top Mgmt. (WPM).(WPM).

Specific PolicySpecific Policy – Related to specific issues – Related to specific issues like Recruitment, Transfer, Promotion etc.like Recruitment, Transfer, Promotion etc.

Strategic ManagementStrategic Management Strategy -: is a way of doing Strategy -: is a way of doing

something. It usually includes the something. It usually includes the formulation of a goal and set of formulation of a goal and set of action plans for accomplishment of action plans for accomplishment of that goal.that goal.

Strategy has two components -:Strategy has two components -:

1) Planning1) Planning

2) Action 2) Action

Strategic ManagementStrategic Management

Strategic management is understood Strategic management is understood as the process of formulating, as the process of formulating, implementing and evaluating implementing and evaluating business strategies to achieve business strategies to achieve organisational objectives.organisational objectives.

Analysis of the environment, Analysis of the environment, formulation of strategies, and formulation of strategies, and evaluation and control are the phases evaluation and control are the phases in the strategic management process. in the strategic management process.

Human Resource PlanningHuman Resource Planning Meaning – Assessment of Human Resource Meaning – Assessment of Human Resource

Requirements & also the time & stages of Requirements & also the time & stages of requirement.requirement.

Right person ---At Right place ---At Right Right person ---At Right place ---At Right time.time.

Definition – HRP is defined as the process Definition – HRP is defined as the process by which management determines how an by which management determines how an org should move from its current org should move from its current manpower position to its desired manpower position to its desired manpower position.manpower position.

Objectives of HRPObjectives of HRP To ensure optimum use of existing HR.To ensure optimum use of existing HR. To forecast future requirement for HR.To forecast future requirement for HR. To provide control measures to ensure To provide control measures to ensure

that necessary HR are available as and that necessary HR are available as and when required.when required.

To asses the surplus and shortage of To asses the surplus and shortage of HR. (Downsizing).HR. (Downsizing).

To anticipate the impact of technology To anticipate the impact of technology on jobs and HR.on jobs and HR.

Objectives of HRP – Contd.Objectives of HRP – Contd.To determine the level of To determine the level of

Recruitment and Training.Recruitment and Training.To estimate the cost of HR and To estimate the cost of HR and

Housing needs of employees. (Or Housing needs of employees. (Or HRA).HRA).

To provide the basis of MDP.To provide the basis of MDP.To meet the needs of expansion and To meet the needs of expansion and

diversification programmes.diversification programmes.

Importance of HRPImportance of HRPFuture Personnel needsFuture Personnel needs

Creating highly talented personnelCreating highly talented personnel

International StrategiesInternational Strategies

Foundation of personnel functionFoundation of personnel function

Resistance to change and moveResistance to change and move

Factors Affecting HRPFactors Affecting HRP

Outsourcing

Strategy of Organisation

Environmental Uncertainties

Organisational growth cycle & planning

HRP

Factors Affecting HRPFactors Affecting HRPOrganisation growth cycle and Organisation growth cycle and

planning-:planning-:

HRP is Critical when organisation HRP is Critical when organisation enters the growth stage.enters the growth stage.

Mature organisations experiences Mature organisations experiences less flexibility and variability, growth less flexibility and variability, growth slows down. HRP is dominated by slows down. HRP is dominated by Layoffs, Retrenchment, Retirements.Layoffs, Retrenchment, Retirements.

Factors Affecting HRPFactors Affecting HRPEnvironmental Uncertainties -:Environmental Uncertainties -:

When Political, Social and other When Political, Social and other changes affect the organisation, HR changes affect the organisation, HR planners deal with uncertainties. planners deal with uncertainties.

It can result in Recruitment, Training, It can result in Recruitment, Training, Succession Planning, Retrenchment Succession Planning, Retrenchment etc.etc.

Factors Affecting HRPFactors Affecting HRPStrategy of Organisation -:Strategy of Organisation -: Strategic plan of the organisation defines the Strategic plan of the organisation defines the

organisation’s HR needs.organisation’s HR needs.

Internal Growth

Informal

Reactive

Narrow

Inflexible

Growth through Mergers

Broad

Formal

Proactive

Flexible

Factors Affecting HRPFactors Affecting HRPOutsourcing -:Outsourcing -:

Most organisations have surplus Most organisations have surplus labour and they do not want to labour and they do not want to worsen the problem by hiring more worsen the problem by hiring more people.people.

Outsourcing is the option left.Outsourcing is the option left.

HRP ProcessHRP Process

HR Need Forecast

HR Programming

HRP Implementation

Control & Evaluation

ShortageSurplus

Environment

Org objectives & policies

HR Supply Forecast

HRP Process (Contd.)HRP Process (Contd.) Environmental Scanning - :Environmental Scanning - :

1)1) Economic factorsEconomic factors

2)2) Technological ChangesTechnological Changes

3)3) Demographic changesDemographic changes

4)4) Political and legislative issuesPolitical and legislative issues

5)5) Social concernsSocial concerns

HRP Process (Contd.)HRP Process (Contd.)Org objectives and policies-:Org objectives and policies-:

HR plans need to be based on org HR plans need to be based on org objectives, this implies that the objectives, this implies that the objectives of the HR plan must be objectives of the HR plan must be derived from Org objectives. derived from Org objectives.

HRP Process (Contd.)HRP Process (Contd.) HR Demand forecast-:HR Demand forecast-:

The process of estimating the future The process of estimating the future quantity and quality of people required.quantity and quality of people required.

The basis of forecast will be annual budget The basis of forecast will be annual budget and long term corporate plans.and long term corporate plans.

Demand forecasting must consider several Demand forecasting must consider several factors like internal (Budget constraints, factors like internal (Budget constraints, employee separations, production level) employee separations, production level) and external (Competition, laws, change in and external (Competition, laws, change in technology).technology).

HRP Process (Contd.)HRP Process (Contd.) Demand forecasting techniques are-:Demand forecasting techniques are-: Managerial judgmentManagerial judgment Ratio trend analysisRatio trend analysis Delphi techniqueDelphi technique Regression analysisRegression analysis

HR Supply forecasting-:HR Supply forecasting-:

Supply forecasting measures the number Supply forecasting measures the number of people likely to be available from within of people likely to be available from within and outside an org.and outside an org.

HRP Process (contd.)HRP Process (contd.) HR Programming-: HR Programming-: Once the Org’s HR Demand and Once the Org’s HR Demand and

Supply are forecast, the two must be Supply are forecast, the two must be reconciled or balanced in order that reconciled or balanced in order that vacancies can be filled by the right vacancies can be filled by the right employee at the right time. employee at the right time.

HR Plan Implementation-:HR Plan Implementation-: Implementation requires converting Implementation requires converting

an HR plans into action. (Recruitment, an HR plans into action. (Recruitment, Training, Succession plan etc.)Training, Succession plan etc.)

HRP Process (contd.)HRP Process (contd.)Control and Evaluation -:Control and Evaluation -:

Critical to have proper control and Critical to have proper control and regular checks to know the regular checks to know the achievements of HRP.achievements of HRP.

Surplus ShortageSurplus Shortage

Restricted hiring R & SRestricted hiring R & S

VRS, Lay off VRS, Lay off

HRIS HRIS

HRIS is a database system that HRIS is a database system that keeps important information about keeps important information about employees in a central and employees in a central and accessible location.accessible location.

The information provided by HRIS The information provided by HRIS can help the organisation to gain can help the organisation to gain competitive advantage. (SWOT of competitive advantage. (SWOT of org.)org.)

Information categories of HRISInformation categories of HRISBasic non confidential information-:Basic non confidential information-:

Employee name, Org name, Work Employee name, Org name, Work locationlocation

General non confidential information General non confidential information -:-:

Social security number, Position Social security number, Position related information (codes, tittles, related information (codes, tittles, effective date)effective date)

Info categories of HRIS (contd.)Info categories of HRIS (contd.)

General information with salary -:General information with salary -:

Current salary, Effective date, Current salary, Effective date, Amount of last change, Reason for Amount of last change, Reason for last change.last change.

Confidential information with salary -:Confidential information with salary -:

Information of previous category, Information of previous category, Educational dataEducational data

Info categories of HRIS (contd.)Info categories of HRIS (contd.)

Extended information with salary -:Extended information with salary -:

Information of previous category, Information of previous category, Bonus information, Projected salary Bonus information, Projected salary increase information, Performance increase information, Performance evaluation information.evaluation information.

Job AnalysisJob Analysis Job analysis is the process of Job analysis is the process of

collecting job related information. collecting job related information. Such information helps in the Such information helps in the preparation of job description and job preparation of job description and job specification.specification.

Job Analysis

Job Description Job Specification

Job Analysis (contd.)Job Analysis (contd.) Job description -: A statement Job description -: A statement

containing items such as Job title, containing items such as Job title, Location, Job summary, Working Location, Job summary, Working condition etc.condition etc.

Job specification -: A Statement of Job specification -: A Statement of human qualifications necessary to do human qualifications necessary to do the job. Usually contains items such the job. Usually contains items such as Education, Experience, Training, as Education, Experience, Training, Communication skills etc.Communication skills etc.

Purposes of Job AnalysisPurposes of Job Analysis

HRPHRPRecruitment & SelectionRecruitment & SelectionTraining & DevelopmentTraining & DevelopmentRemunerationRemunerationSafety & HealthSafety & HealthPerformance AppraisalPerformance Appraisal

Methods of Collecting Job DataMethods of Collecting Job Data

ObservationObservation InterviewsInterviewsQuestionnaireQuestionnaireTechnical Conference MethodTechnical Conference Method

Process of Job AnalysisProcess of Job Analysis

Strategic ChoicesStrategic Choices

Gather InformationGather Information

Process InformationProcess Information

Job DescriptionJob Description

Job SpecificationJob Specification

Process (contd.)Process (contd.) Strategic Choices –: Strategic Choices –: 1.1. Employee InvolvementEmployee Involvement2.2. Level of DetailsLevel of Details3.3. When and How oftenWhen and How often4.4. Past oriented and Future orientedPast oriented and Future oriented

Gather Information –:Gather Information –:1.1. What type of Data to Collected (machine, What type of Data to Collected (machine,

tools & work activities)tools & work activities)2.2. Data collection methodsData collection methods3.3. Who to collect Data (Trained analyst, Who to collect Data (Trained analyst,

Supervisors, Job incumbents)Supervisors, Job incumbents)

Process (contd.)Process (contd.) Information Processing -:Information Processing -:

How collected information will be How collected information will be used in forming Job Description and used in forming Job Description and Job Specification.Job Specification.

Job description –:Job description –:

Job Specification -: Job Specification -:

Problems with Job AnalysisProblems with Job AnalysisSupport from Top managementSupport from Top management

Single Means or SourceSingle Means or Source

No Training or MotivationNo Training or Motivation

Activities may be DistortedActivities may be Distorted

Job DesignJob Design

Job Design is defines as -: It Job Design is defines as -: It integrates work content (tasks, integrates work content (tasks, function), the rewards & the function), the rewards & the qualifications required (skills, qualifications required (skills, knowledge) for each job in a way that knowledge) for each job in a way that meets the need of the employees meets the need of the employees and the organisation.and the organisation.

Job DesignJob Design Job Design involves three steps -:Job Design involves three steps -:

1)1) Specification of individual tasks.Specification of individual tasks.

2)2) Specification of the methods of Specification of the methods of performing each tasks.performing each tasks.

3)3) Combination of tasks into specific Combination of tasks into specific jobs to be assigned to individuals.jobs to be assigned to individuals.

Methods of Job DesignMethods of Job Design

Job Design Methods -:Job Design Methods -:

Job Design

JobSimplification

JobEnlargement

Job Enrichment

Job Rotation

RecruitmentRecruitmentThe process of finding and attracting The process of finding and attracting

capable applicants for employment. capable applicants for employment. The process begins when new The process begins when new recruits are sought and ends when recruits are sought and ends when their applications are submitted. The their applications are submitted. The result is a pool of applicants from result is a pool of applicants from which new employees are selected.which new employees are selected.

Recruitment is a process of inviting Recruitment is a process of inviting applications from prospective applications from prospective employees.employees.

Recruitment is a positive process.Recruitment is a positive process.

Purpose & Importance of Purpose & Importance of RecruitmentRecruitment

Determine the present and future Determine the present and future requirements of the organisation in requirements of the organisation in relation with the HRP and Job Analysis.relation with the HRP and Job Analysis.

Increase the pool of job candidates at Increase the pool of job candidates at minimum cost.minimum cost.

Meet the organisation’s legal and Meet the organisation’s legal and social obligations regarding the social obligations regarding the composition of its workforce. composition of its workforce.

Sources of RecruitmentSources of Recruitment Internal Sources -:Internal Sources -:

Transfer , Promotions.Transfer , Promotions.

External Sources-:External Sources-:

Press Advertisements , Educational Press Advertisements , Educational Institutions, Placement Agencies, Institutions, Placement Agencies, Employment Exchange, Labour Employment Exchange, Labour Contractors, Recruitment at factory Contractors, Recruitment at factory Gate.Gate.

Recruitment ProcessRecruitment Process

Recruiting Required PersonnelRecruiting Required Personnel

Search for Perspective EmployeesSearch for Perspective Employees

Internal SourcesInternal Sources

External SourcesExternal Sources

Evaluating effectiveness of processEvaluating effectiveness of process

Recruitment ProcessRecruitment ProcessPersonnel Requisition -: Requisition Personnel Requisition -: Requisition

for recruitment from other deptt., for recruitment from other deptt., Contains info like no of person Contains info like no of person required, duties to be performed, required, duties to be performed, desired qualification, time of desired qualification, time of appointment, info about job.appointment, info about job.

Locating and developing sources of Locating and developing sources of required no and type of employees.required no and type of employees.

Identifying the prospective employees Identifying the prospective employees with required characteristics.with required characteristics.

Process (contd.)Process (contd.)Communicating the info about the Communicating the info about the

org, the job and the terms and org, the job and the terms and condition of service.condition of service.

Encouraging the identified Encouraging the identified candidates to apply for jobs in the candidates to apply for jobs in the org.org.

Evaluating the effectiveness of Evaluating the effectiveness of recruitment process.recruitment process.

Alternatives to RecruitmentAlternatives to RecruitmentOvertimeOvertime

Employee LeasingEmployee Leasing

Temporary EmploymentTemporary Employment

SelectionSelectionSelection is the process of picking Selection is the process of picking

individuals (out of the pool of job individuals (out of the pool of job applicants) with requisite applicants) with requisite qualifications and competence to fill qualifications and competence to fill jobs in the organisation.jobs in the organisation.

Selection is a negetive process. Selection is a negetive process.

Selection ProcedureSelection ProcedurePreliminary InterviewPreliminary InterviewApplication blankApplication blankSelection TestSelection TestEmployment InterviewEmployment InterviewReference Check and Background Reference Check and Background

AnalysisAnalysisMedical ExaminationMedical ExaminationFinal ApprovalFinal ApprovalEvaluationEvaluation

Test and InterviewTest and InterviewPsychological tests -: Aptitude testPsychological tests -: Aptitude test

Informal InterviewInformal InterviewFormal InterviewFormal InterviewDepth InterviewDepth InterviewStress InterviewStress Interview

Induction Or OrientationInduction Or OrientationPlanned introduction of employees to Planned introduction of employees to

their jobs, their co – workers and the their jobs, their co – workers and the organisation.organisation.

Orientation also called Induction, is Orientation also called Induction, is designed to provide a new employee designed to provide a new employee with the information he or she needs with the information he or she needs to function comfortably and to function comfortably and effectively in the organisation. effectively in the organisation.

Objectives of InductionObjectives of InductionTo help new comer overcome his To help new comer overcome his

natural shyness and nervousness in natural shyness and nervousness in meeting new people in the meeting new people in the environment.environment.

To develop among the newcomers a To develop among the newcomers a sense of belonging and loyalty to the sense of belonging and loyalty to the organisation.organisation.

To develop a close and cordial To develop a close and cordial relationship between newcomers and relationship between newcomers and the old employees and their the old employees and their supervisor.supervisor.

Objectives (contd.)Objectives (contd.)To ensure that the newcomers do not To ensure that the newcomers do not

form negative or false impression form negative or false impression and attitude towards the and attitude towards the organisation or the job because first organisation or the job because first impression is the last impression.impression is the last impression.

To give newcomers necessary To give newcomers necessary information such as leave rules, rest information such as leave rules, rest period, locker room etc. period, locker room etc.

Advantages of Formal Advantages of Formal InductionInduction

Helps in build up a two way channel Helps in build up a two way channel of communication between of communication between management and workers.management and workers.

Proper induction facilitates informal Proper induction facilitates informal relations and teamwork among relations and teamwork among employees.employees.

Effective induction helps to integrate Effective induction helps to integrate the new employees into the the new employees into the organisation and to develop the organisation and to develop the sense of belonging.sense of belonging.

Types of Induction ProgrammeTypes of Induction ProgrammeFormalFormal InformalInformal IndividualIndividualcollectivecollective

Contents of Induction Contents of Induction ProgrammeProgramme

History and operation of companyHistory and operation of companyProducts and services of companyProducts and services of companyPolicies and procedures of companyPolicies and procedures of companyGrievance procedureGrievance procedureBenefit and services for employeesBenefit and services for employeesOpportunities for training and Opportunities for training and

development, promotion, transfer development, promotion, transfer etc. etc.

PlacementPlacement

Placement refers to the allocation of Placement refers to the allocation of people to jobs. It includes initial people to jobs. It includes initial assignment of new employees and assignment of new employees and promotion, transfer, or demotion of promotion, transfer, or demotion of present employees.present employees.

Placement ProblemsPlacement Problems Difficulty with the placement is that Difficulty with the placement is that

we tend to look at the individual but we tend to look at the individual but not at the job.not at the job.

Job in this context may be classified Job in this context may be classified into three categories.into three categories.

1.1. IndependentIndependent

2.2. SequentialSequential

3.3. PooledPooled

Training & DevelopmentTraining & Development

Training is an attempt to improve Training is an attempt to improve current or future employee current or future employee performance by increasing an performance by increasing an employees ability to perform through employees ability to perform through learning, usually by changing the learning, usually by changing the employee’s attitude or increasing his employee’s attitude or increasing his or her skills and knowledge.or her skills and knowledge.

Training refers to the process of Training refers to the process of imparting specific skills. (Employees)imparting specific skills. (Employees)

T & DT & D

Development refers to learning Development refers to learning opportunities designed to help opportunities designed to help employees grow. (Executive)employees grow. (Executive)

Education is theoretical learning in Education is theoretical learning in classroom.classroom.

T & DT & DThe need for training and The need for training and

development is determined by the development is determined by the employee’s performance deficiency employee’s performance deficiency computed as follows-:computed as follows-:

Training & Development need = Training & Development need = Standard Performance – Actual Standard Performance – Actual PerformancePerformance

Difference between T & EduDifference between T & Edu Training -: Training -: 1. Application base, 1. Application base, 2.Job Experience, 2.Job Experience, 3. Specific Task, 3. Specific Task, 4. Narrow Perspective.4. Narrow Perspective.

Education -: Education -: 1.Theoretical Orientation,1.Theoretical Orientation,2. Classroom learning,2. Classroom learning,3. General Concepts,3. General Concepts,4. Broad Perspective. 4. Broad Perspective.

Inputs in T & DInputs in T & D

SkillsSkillsEducationEducationDevelopmentDevelopmentEthicsEthicsAttitudinal ChangesAttitudinal ChangesDecision making and Problem solving Decision making and Problem solving

skillsskills

T & D as a source of Competitive T & D as a source of Competitive AdvantageAdvantage

T & D offer competitive advantage to T & D offer competitive advantage to a firm by removing performance a firm by removing performance deficiencies, making staff stay long, deficiencies, making staff stay long, minimising accidents, Scrap & minimising accidents, Scrap & damage and meeting future damage and meeting future employees needs.employees needs.

Training ProgramTraining Program

Need AssessmentNeed Assessment

Deriving Instructional ObjectivesDeriving Instructional Objectives

Designing Training & Development ProgramDesigning Training & Development Program

Implementation of Training ProgramImplementation of Training Program

EvaluationEvaluation

Training ProcessTraining Process Need Assessment -: Diagnoses the Need Assessment -: Diagnoses the

present problems & future challenges to present problems & future challenges to be met through training and development.be met through training and development.

Need Assessment Methods -: As followsNeed Assessment Methods -: As follows Group Assessment – (intro of new Group Assessment – (intro of new

product.)product.)

1.1. Org goals & objectives.Org goals & objectives.

2.2. Personnel skill inventoriesPersonnel skill inventories

3.3. Exit interviewsExit interviews

4.4. Customers Satisfaction dataCustomers Satisfaction data

Training ProcessTraining ProcessNeeds Assessment & Remedial Needs Assessment & Remedial

measuresmeasures

Lack of Skill & Knowledge

TrainingNon – Training

Measures

Other Causes

PerformanceDeficiency

Training processTraining process Individual Analysis -:Individual Analysis -:1.1. Performance AppraisalPerformance Appraisal2.2. InterviewsInterviews3.3. QuestionnairesQuestionnaires4.4. Attitude Surveys.Attitude Surveys.

Issues in need assessment -:Issues in need assessment -:1.1. Org SupportOrg Support2.2. Org AnalysisOrg Analysis3.3. Task and KSA analysisTask and KSA analysis4.4. Person AnalysisPerson Analysis

Training ProcessTraining Process Deriving an instructional objectives -:Deriving an instructional objectives -: It help to know the inputs for the training It help to know the inputs for the training

program and as well as for the measures of program and as well as for the measures of success that would help assess success that would help assess effectiveness of the training program.effectiveness of the training program.

Designing training & development program Designing training & development program -:-:

1. Who are the trainees?1. Who are the trainees?2. Who are the trainers?2. Who are the trainers?3. Methods & techniques?3. Methods & techniques?4. Level of training?4. Level of training?5. Learning principles?5. Learning principles?6. Where to conduct the program?6. Where to conduct the program?

Training processTraining process Implementation of training programImplementation of training program

EvaluationEvaluation

Types of trainingTypes of training On the job -: On the job -:

1.1. Orientation Training ie InductionOrientation Training ie Induction

2.2. Job instruction – Info about how to Job instruction – Info about how to conduct the job.conduct the job.

3.3. Apprentice training - ITIApprentice training - ITI

4.4. Internship / Assistantship - DoctorsInternship / Assistantship - Doctors

5.5. Job rotation - BankJob rotation - Bank

6.6. Coaching – Cricket team Coaching – Cricket team

Types of trainingTypes of training Off the job -:Off the job -:1.1. Vestibule – Utilisation of actual equipments.Vestibule – Utilisation of actual equipments.2.2. Lecture – Verbal presentation of Lecture – Verbal presentation of

information.information.3.3. Role playing – is to create realistic situation.Role playing – is to create realistic situation.4.4. Simulation – technique that duplicates as Simulation – technique that duplicates as

nearly as possible actual condition nearly as possible actual condition encountered on the job.encountered on the job.

5.5. Laboratory / Sensitivity training – smaller Laboratory / Sensitivity training – smaller group ie 12 or less. Provides awareness group ie 12 or less. Provides awareness about their own behaviour & how other about their own behaviour & how other percieve them. percieve them.

Performance AppraisalPerformance Appraisal

It is the systematic evaluation of the It is the systematic evaluation of the individual with respect to his or her individual with respect to his or her performance on the job and his or performance on the job and his or her potential for development.her potential for development.

Objectives of Performance Objectives of Performance AppraisalAppraisal

Promotions based on competence Promotions based on competence and performance.and performance.

To confirm the services of To confirm the services of probationary employees upon their probationary employees upon their completing the probationary period completing the probationary period satisfactorily.satisfactorily.

To asses the training and To asses the training and development needs of employees.development needs of employees.

Objective of Performance Objective of Performance AppraisalAppraisal

To decide upon pay rise where To decide upon pay rise where regular pay scales have not been regular pay scales have not been fixed.fixed.

Finally, performance Appraisal can Finally, performance Appraisal can be used to determine whether HR be used to determine whether HR programmes such as selection, programmes such as selection, training and transfers have been training and transfers have been effective or not.effective or not.

Relationship of PA and Job AnalysisRelationship of PA and Job Analysis

Job Analysis – Describe work and Job Analysis – Describe work and Personnel requirement of a particular Personnel requirement of a particular job. job.

Performance Standards – Translate Performance Standards – Translate job requirements into levels of job requirements into levels of acceptable or unacceptable acceptable or unacceptable performance.performance.

Performance Appraisal – Describes Performance Appraisal – Describes the job relevant strengths and the job relevant strengths and weaknesses of each individual.weaknesses of each individual.

PA and Competitive AdvantagePA and Competitive Advantage Improving PerformanceImproving Performance

Making Correct decisionsMaking Correct decisions

Minimizing job dissatisfaction and Minimizing job dissatisfaction and turn overturn over

Consistency between organizational Consistency between organizational strategy strategy

Performance Appraisal processPerformance Appraisal processObjective of Performance AppraisalObjective of Performance Appraisal

Establish Job expectationsEstablish Job expectations

Design an Appraisal ProgrammeDesign an Appraisal Programme

Appraise PerformanceAppraise Performance

Performance InterviewPerformance Interview

Use Appraisal Data for Appropriate Purposes Use Appraisal Data for Appropriate Purposes

P A ProcessP A Process Objective – Correct or Improve performanceObjective – Correct or Improve performance Expectation – In forming what is expected Expectation – In forming what is expected

from employeefrom employee Design Appraisal – Helps in posing question Design Appraisal – Helps in posing question

which needs answers like Formal v/s which needs answers like Formal v/s Informal Appraisal, whose performance Informal Appraisal, whose performance should be rated (group, team, individual), should be rated (group, team, individual), Who are Raters, What should be rated Who are Raters, What should be rated (Quality, Quantity, Time, Cost effectiveness, (Quality, Quantity, Time, Cost effectiveness, Need For Supervision), When to Evaluate, Need For Supervision), When to Evaluate, What Methods to be opted. What Methods to be opted.

P A ProcessP A ProcessAppraise the Performance – Quantity, Appraise the Performance – Quantity,

Quality and time of Output.Quality and time of Output.Performance InterviewPerformance InterviewUse the Appraisal Data – HRP, Use the Appraisal Data – HRP,

Promotion, Remuneration, Training Promotion, Remuneration, Training and Development etc.and Development etc.

Performance Appraisal Performance Appraisal MethodsMethods

90 Degree – Only Supervisor is 90 Degree – Only Supervisor is Evaluator.Evaluator.

180 Degree – Superior and Peer Group180 Degree – Superior and Peer Group270 degree – Superior, Peer and 270 degree – Superior, Peer and

SubordinatesSubordinates360 Degree – Superior, Peer, 360 Degree – Superior, Peer,

Subordinates, Subordinates, ClientsClients and Self and Self540 Degree - Superior, Peer, 540 Degree - Superior, Peer,

Subordinates, Clients and SelfSubordinates, Clients and Self720 Degree - Superior, Peer, 720 Degree - Superior, Peer,

Subordinates, Clients, Self and FamilySubordinates, Clients, Self and Family


Past Oriented Methods - :Past Oriented Methods - : Rating Scales – Excellent-Good-Acceptable-Rating Scales – Excellent-Good-Acceptable-

Fair-Poor (Simplest & most popular)Fair-Poor (Simplest & most popular) Checklist – Yes / No (Is employee interested Checklist – Yes / No (Is employee interested

in job? Does have adequate qualification?)in job? Does have adequate qualification?) Forced Choice Method – Two Choices and no Forced Choice Method – Two Choices and no

other option (The rater is forced to select other option (The rater is forced to select statements which are readymade) Learns statements which are readymade) Learns fast ----- Work hard.fast ----- Work hard.

Critical Incident Method – this approach Critical Incident Method – this approach focuses on certain critical behaviours of an focuses on certain critical behaviours of an employee employee


Behaviourally Anchored Rating Behaviourally Anchored Rating Scales – On the basis of the Scales – On the basis of the behavioural criteria of the employee behavioural criteria of the employee rating is being done by the superior.rating is being done by the superior.

Field Review Method – Some one Field Review Method – Some one outside the assessee’s own outside the assessee’s own department, usually from corporate department, usually from corporate office or HR department. office or HR department.

Future Oriented MethodsFuture Oriented Methods360 Degree Appraisal360 Degree AppraisalAssessment Centers (Potential Assessment Centers (Potential

Appraisal)Appraisal)Psychological Counseling Psychological Counseling

Problems in Performance AppraisalProblems in Performance Appraisal

Leniency or SeverityLeniency or SeverityCentral TendencyCentral TendencyHalo ErrorHalo ErrorRater Effect – Rating based on raters Rater Effect – Rating based on raters

attitude towards rateeattitude towards rateePrimacy or Recency effectsPrimacy or Recency effectsPerceptual Set – Raters perceptionPerceptual Set – Raters perception

Job EvaluationJob Evaluation Job evaluation seeks to determine Job evaluation seeks to determine

the relative worth of each job so that the relative worth of each job so that salary differentials can be salary differentials can be established. established.

In job evaluation only jobs are rated In job evaluation only jobs are rated unlike in performance appraisal unlike in performance appraisal where only job holders are rated.where only job holders are rated.

Job Evaluation ProcessJob Evaluation ProcessObjectives of Job EvaluationObjectives of Job Evaluation

Job AnalysisJob Analysis

Job Description Job SpecificationJob Description Job Specification

Job Evaluation ProgrammeJob Evaluation Programme

Wage SurveyWage Survey

Employee Classification Employee Classification

Methods of Job EvaluationMethods of Job Evaluation

Non Analytical MethodsNon Analytical MethodsAnalytical MethodsAnalytical Methods

Non Analytical methodNon Analytical methodRanking Method – The evaluation Ranking Method – The evaluation

committee assesses the worth of committee assesses the worth of each job on the basis of its title or on each job on the basis of its title or on its contents, if the later is available.its contents, if the later is available.

Job Grading Method – There is a Job Grading Method – There is a yardstick in the form of job classes or yardstick in the form of job classes or grades.grades.

CompensationCompensationRemuneration is the compensation an Remuneration is the compensation an

employee receives in return for his or employee receives in return for his or her contribution to the organisation.her contribution to the organisation.

Society – Some people see pay as a Society – Some people see pay as a measure of justice.measure of justice.

Stockholders – To stockholders, Stockholders – To stockholders, executive pay is of special interest, as executive pay is of special interest, as linking executive pay to company linking executive pay to company performance is supposed to increase performance is supposed to increase stockholders wealth. stockholders wealth.

CompensationCompensationManagers – Compensation influences Managers – Compensation influences

their success in two ways. First, it is their success in two ways. First, it is a major expense. In addition to a major expense. In addition to treating it as an expense, a manager treating it as an expense, a manager also uses it to influence employee also uses it to influence employee behaviour and improve organisation behaviour and improve organisation performance.performance.

Employees – The pay individuals Employees – The pay individuals receive in return for the work they receive in return for the work they perform is usually the major source perform is usually the major source of their financial security.of their financial security.

Components of CompensationComponents of Compensation Financial – :Financial – :

1.1. Hourly and monthly rated wage and Hourly and monthly rated wage and salary.salary.

2.2. Incentives ie individual plans and Incentives ie individual plans and group plans.group plans.

3.3. Fringe benefits ie PF , Gratuity, Fringe benefits ie PF , Gratuity, Medical care, Group Insurance.Medical care, Group Insurance.

4.4. Perquisites are Company car, Perquisites are Company car, furnished house (Offered to retain furnished house (Offered to retain competent executives) competent executives)

Components of CompensationComponents of CompensationNon Financial -: Recognition, Growth Non Financial -: Recognition, Growth

Prospects.Prospects.

Factors Influencing Employee Factors Influencing Employee RemunerationRemuneration

External -: External -: 1.1. Labour Market – Demand & Supply, Labour Market – Demand & Supply,

Going RateGoing Rate2.2. Cost of Living – Escalatory clauseCost of Living – Escalatory clause3.3. Labour UnionsLabour Unions4.4. Labour Laws – Payment of wages Labour Laws – Payment of wages

act1936, Minimum wages act 1948, act1936, Minimum wages act 1948, Payment of Bonus act 1965, Equal Payment of Bonus act 1965, Equal remuneration act 1976, Payment of remuneration act 1976, Payment of gratuity act 1972.gratuity act 1972.

5.5. SocietySociety

Factors Influences Employee Factors Influences Employee RemunerationRemuneration

Internal -: Internal -:

1.1. Business Strategy – Rapid growth = Business Strategy – Rapid growth = High PayHigh Pay

2.2. Job Evaluation and Performance Job Evaluation and Performance AppraisalAppraisal

3.3. Employee – Performance , Employee – Performance , Experience, SeniorityExperience, Seniority

Devising a Remuneration PlanDevising a Remuneration Plan

Job DescriptionJob Description

Job EvaluationJob Evaluation

Job HierarchyJob Hierarchy

Pay SurveyPay Survey

Pricing jobsPricing jobs

Challenges of RemunerationChallenges of RemunerationSalary reviewsSalary reviewsPay secrecyPay secrecySkill based paySkill based payEmployee ParticipationEmployee ParticipationAbove Market or Below Market RatesAbove Market or Below Market RatesMonetary V/S Non Monetary RewardsMonetary V/S Non Monetary RewardsComparable WorthComparable Worth

Concept of WagesConcept of Wages Minimum Wage – Wage for sustenance of Minimum Wage – Wage for sustenance of

life plus for preservation of the efficiency life plus for preservation of the efficiency of worker. (Determined through of worker. (Determined through Legislation)Legislation)

Fair Wage – Equal to the rate prevailing in Fair Wage – Equal to the rate prevailing in the same trade and in the neighborhood or the same trade and in the neighborhood or equal to the predominant rate for similar equal to the predominant rate for similar work throughout the country.work throughout the country.

Living Wage – Higher than fair wage. Living Wage – Higher than fair wage. Provides for bare essentials plus frugal Provides for bare essentials plus frugal comforts.comforts.

IncentivesIncentives

Incentives are variable rewards Incentives are variable rewards granted to employees according to granted to employees according to variations in their performance. The variations in their performance. The other name for incentives is other name for incentives is “Payments by results”. But the word “Payments by results”. But the word ‘Incentives’ is most appropriate ‘Incentives’ is most appropriate because of its motivational content.because of its motivational content.

Importance of IncentivesImportance of IncentivesMotivation of worker for higher Motivation of worker for higher

efficiency and greater output.efficiency and greater output.Earning of employees would be Earning of employees would be

enhanced due to incentives.enhanced due to incentives. Increased earning helps employee to Increased earning helps employee to

improve standard of living.improve standard of living.Other advantages – Reduced Other advantages – Reduced

Supervision, better utilisation of Supervision, better utilisation of equipments, reduced lost time, equipments, reduced lost time, reduced absenteeism and turnover reduced absenteeism and turnover and increased output.and increased output.

Disadvantages of IncentivesDisadvantages of Incentives Deteriorate the quality of product as Deteriorate the quality of product as

employee want to earn more by producing employee want to earn more by producing more quantity of products.more quantity of products.

When job is restudied there are chances When job is restudied there are chances that it may yield in lower earning in terms that it may yield in lower earning in terms of earning incentives as new and high of earning incentives as new and high challenging jobs offers more scope for challenging jobs offers more scope for earning as compared to old jobs.earning as compared to old jobs.

Increases jealousy among the workers as Increases jealousy among the workers as the person earning less is jealous of the the person earning less is jealous of the person earning more.person earning more.

Employee benefitsEmployee benefits

Employee benefits and services Employee benefits and services include any benefits that the include any benefits that the employee receives in addition to employee receives in addition to direct remuneration.direct remuneration.

Employee benefits and services are Employee benefits and services are alternatively known as fringes or alternatively known as fringes or hidden payroll.hidden payroll.

Types of employee benefitsTypes of employee benefits

For fringe benefits three criteria’s For fringe benefits three criteria’s are needed to be fulfilled.are needed to be fulfilled.

1)1) It should be computable in terms of It should be computable in terms of money. money.

2)2) The amount of benefit is not The amount of benefit is not generally predetermined.generally predetermined.

3)3) No contract, indicating when the No contract, indicating when the sum is payable, should exists.sum is payable, should exists.

Fringe benefitsFringe benefitsLegally required payments -: Old Legally required payments -: Old

age, survivors, disability and health age, survivors, disability and health insurance.insurance.

Contingent benefits -: pension plans, Contingent benefits -: pension plans, group life insurance, group health group life insurance, group health insurance, maternity leave, sick insurance, maternity leave, sick leave, service awards.leave, service awards.

Other benefits -: payments for the Other benefits -: payments for the time not worked like holidays, leaves. time not worked like holidays, leaves.

Benefits and servicesBenefits and services

Treats -: free lunches, festival bashes, Treats -: free lunches, festival bashes, dinner for the family.dinner for the family.

Awards -: trophies, certificates, letter Awards -: trophies, certificates, letter of appreciation.of appreciation.

Office environment -: flexible hours.Office environment -: flexible hours.Tokens -: movie tickets, vacation trips.Tokens -: movie tickets, vacation trips.On the job -: job rotation, representing On the job -: job rotation, representing

the company at public meetings. the company at public meetings.

Administration of fringe Administration of fringe benefitsbenefits

Establish benefits objectivesEstablish benefits objectives

Assess environmental factorsAssess environmental factors

Access competitivenessAccess competitiveness

Communicate benefit informationCommunicate benefit information

Control benefit cost and evaluationControl benefit cost and evaluation

Executive remunerationExecutive remuneration

Components of remuneration -:Components of remuneration -:

1)1) SalarySalary

2)2) BonusBonus

3)3) CommissionCommission

4)4) Long term incentivesLong term incentives

5)5) PerksPerks

Industrial RelationsIndustrial Relations

IR is concerned with the system , IR is concerned with the system , rules and procedures used by unions rules and procedures used by unions and employers to determine the and employers to determine the reward for effort and their conditions reward for effort and their conditions of employment, to protect the of employment, to protect the interest of the employed and their interest of the employed and their employers, and to regulate the ways employers, and to regulate the ways in which employers treat their in which employers treat their employees.employees.

IR cont’dIR cont’d IR is concerned with the relationship IR is concerned with the relationship

between management and workers and between management and workers and the role of regulatory mechanism in the role of regulatory mechanism in resolving any industrial dispute.resolving any industrial dispute.

IR specially covers the following areas-:IR specially covers the following areas-:1)1) Collective bargainingCollective bargaining2)2) Role of management , unions and govt.Role of management , unions and govt.3)3) Machinery for resolution of industrial Machinery for resolution of industrial

disputedispute4)4) Individual grievance and disciplinary Individual grievance and disciplinary

policy and practicepolicy and practice

Approaches to IRApproaches to IR Unitary Approach – Direct negotiation with Unitary Approach – Direct negotiation with

employee and participation of Govt. employee and participation of Govt. Tribunals, and unions are not sought.Tribunals, and unions are not sought.

Pluralistic Approach – (a) org as coalitions Pluralistic Approach – (a) org as coalitions of competing interest, where the of competing interest, where the management’s role is to mediate amongst management’s role is to mediate amongst the different interest group.the different interest group.

(b) TU are legitimate representatives of (b) TU are legitimate representatives of employee interest.employee interest.

(c) Stability in IR is a product of concession (c) Stability in IR is a product of concession and compromises between management and compromises between management and unions.and unions.

Approaches to IRApproaches to IR

Marxist Approach – same as Marxist Approach – same as Pluralistic but feels conflict arises not Pluralistic but feels conflict arises not because of rift between management because of rift between management and workers, but because of the and workers, but because of the division in the society between those division in the society between those who own resources and who have who own resources and who have only labour to offer.only labour to offer.

Parties to IRParties to IREmployeesEmployeesEmployee AssociationsEmployee AssociationsGovernmentGovernment

Employer – Employee – RelationsEmployer – Employee – Relations

EmployersEmployersEmployer AssociationsEmployer AssociationsCourts and Tribunals Courts and Tribunals

Trade UnionsTrade Unions

TU are voluntary organisations of TU are voluntary organisations of employees or employers formed to employees or employers formed to promote and protect their interest promote and protect their interest through collective action. Though the through collective action. Though the terms employees and employers are terms employees and employers are used, when we say trade unions they used, when we say trade unions they generally refer to employees.generally refer to employees.

Why do employees join unions?Why do employees join unions?

DissatisfactionDissatisfaction

Lack of powerLack of power

Union InstrumentalityUnion Instrumentality

Union TacticsUnion Tactics Unions employ several tactics to Unions employ several tactics to

deal with management are-:deal with management are-:

1)1) StrikeStrike

2)2) Invoking political patronageInvoking political patronage

3)3) Blackmailing Blackmailing

4)4) UnionisingUnionising

Strategic choices before Strategic choices before ManagementManagement

Mgmt must decide whether the org should Mgmt must decide whether the org should remain union free or allow unionisation.remain union free or allow unionisation.

If mgmt decide company should remain If mgmt decide company should remain union free then they must take steps to union free then they must take steps to keep union away from the org.keep union away from the org.

If unionisation should be allowed, If unionisation should be allowed, managers must decide what type of union managers must decide what type of union mgmt relations they want.mgmt relations they want.

Mgmt must also choose the type of tactic Mgmt must also choose the type of tactic to use while negotiating a new wage to use while negotiating a new wage settlement.settlement.

Strategic choices before Strategic choices before UnionsUnions

Bread and Butter V/S Political Bread and Butter V/S Political objectiveobjective

Adversarial V/S Co operative roleAdversarial V/S Co operative role

Traditional issues V/S New servicesTraditional issues V/S New services

Strategies and Tactics for Strategies and Tactics for remaining Union - Freeremaining Union - Free

Effective supervisionEffective supervisionOpen communicationOpen communicationEffective personnel searchEffective personnel searchHealthy and Safe working Healthy and Safe working

environmentenvironmentEffective Employer and Employee Effective Employer and Employee

relationsrelationsEffective remmunerationEffective remmuneration

Some of the major Trade Some of the major Trade UnionsUnions

INTUC – Indian National Trade Union INTUC – Indian National Trade Union CongressCongress

CITU – Centre of Indian Trade UnionsCITU – Centre of Indian Trade UnionsHMS – Hind Mazdoor SabhaHMS – Hind Mazdoor SabhaAITUC – All India Trade Union AITUC – All India Trade Union

CongressCongressBMS – Bhartiya Mazdoor SanghBMS – Bhartiya Mazdoor SanghUTUC – United Trade Union CongressUTUC – United Trade Union Congress

Disputes and Their ResolutionDisputes and Their Resolution

Acc to Industrial Dispute Act, 1947, Acc to Industrial Dispute Act, 1947, industrial dispute mean any dispute industrial dispute mean any dispute or difference between employers and or difference between employers and employers or between employers employers or between employers and workmen, workmen and and workmen, workmen and workmen, which is connected with workmen, which is connected with the employment or non employment the employment or non employment or terms of employment. or terms of employment.

Causes of DisputesCauses of DisputesWage DemandsWage Demands

Union Rivalry (Singareni Collieries - Union Rivalry (Singareni Collieries - 445 TU – loss 3.12 million tones)445 TU – loss 3.12 million tones)

Political Interference (ideology Political Interference (ideology differs, union works on party lines, differs, union works on party lines, CITU- Communist love to fight but CITU- Communist love to fight but hate to win so they have not signed hate to win so they have not signed any settlement in last 15 years)any settlement in last 15 years)

Causes of DisputesCauses of Disputes Unfair Labour Practice - :Unfair Labour Practice - :

a)a) Management unwillingness to Management unwillingness to recognise a particular TU and recognise a particular TU and dilatory tactics.dilatory tactics.

b)b) Negotiation of settlement of dispute Negotiation of settlement of dispute the representatives of employers the representatives of employers take the side of management which take the side of management which results in disputes.results in disputes.

Multiplicity of Labour LawsMultiplicity of Labour Laws

Settlement of DisputesSettlement of Disputes

Collective Bargaining (reps of employees Collective Bargaining (reps of employees & employers meet to solve the issue)& employers meet to solve the issue)

Collective Bargaining Process-:Collective Bargaining Process-:

a)a) Preparing for negotiationPreparing for negotiation

b)b) Identifying bargaining issuesIdentifying bargaining issues

c)c) NegotiationsNegotiations

d)d) Reaching the agreementReaching the agreement

e)e) Ratifying the agreementRatifying the agreement

f)f) Administration of agreementAdministration of agreement

Settlement Cont’d.Settlement Cont’d.Collective Bargaining takes place Collective Bargaining takes place

when representatives of trade union when representatives of trade union meet management representatives meet management representatives to determine employee wages and to determine employee wages and benefits and to solve other issues.benefits and to solve other issues.

Collective Bargaining is the most Collective Bargaining is the most effective method of resolving effective method of resolving industrial disputes.industrial disputes.

Settlement of DisputesSettlement of DisputesGrievance ProcedureGrievance ProcedureArbitrationArbitrationConciliationConciliationAdjudicationAdjudicationConsultative MachineryConsultative Machinery

Settlement Cont’d.Settlement Cont’d.Grievance Procedure -:Grievance Procedure -:

Stage One (Sectional Head) 5 daysStage One (Sectional Head) 5 days

Stage two (Deptt Head) 5 daysStage two (Deptt Head) 5 days

Stage Three (Divisional Head) 10 daysStage Three (Divisional Head) 10 days

Fourth Stage (Union)Fourth Stage (Union)

Settlement Cont’dSettlement Cont’d Arbitrations refers to the procedure in Arbitrations refers to the procedure in

which a neutral third party studies the which a neutral third party studies the dispute, listen to both the parties and dispute, listen to both the parties and collects the information , and make collects the information , and make recommendations which are binding on recommendations which are binding on both the parties.both the parties.

Conciliation -: As per the Industrial Dispute Conciliation -: As per the Industrial Dispute act 1947, Sec 4, says that the govt shall act 1947, Sec 4, says that the govt shall appoint conciliation officers and their main appoint conciliation officers and their main duty is to mediate and promote settlement duty is to mediate and promote settlement of Industrial Dispute.of Industrial Dispute.

Settlement Cont’dSettlement Cont’d

Adjudication a mandatory settlement Adjudication a mandatory settlement of Industrial Dispute by a labour of Industrial Dispute by a labour court or Tribunal.court or Tribunal.

Consultative MachineryConsultative Machinery

Safety and HealthSafety and Health

There is a saying There is a saying

“ “ Precaution is always better than Precaution is always better than cure”.cure”.


Bhopal Gas TragedyBhopal Gas Tragedy

23 years ago, there was a gas leak 23 years ago, there was a gas leak from a Union Carbide plant which led from a Union Carbide plant which led to killing over 20000 thousands of to killing over 20000 thousands of people in Bhopal and become the people in Bhopal and become the worst industrial accident in India due worst industrial accident in India due to negligence of proper safety to negligence of proper safety features. Survivors still suffer from features. Survivors still suffer from various diseases and battling for life various diseases and battling for life and waiting for their turn to get and waiting for their turn to get compensated.compensated.

Safety and HealthSafety and Health Major Accident in last decade (India)-:Major Accident in last decade (India)-:1) Bhopal gas leak in December 1984.1) Bhopal gas leak in December 1984.2) Delhi gas leak from Sriram foods and 2) Delhi gas leak from Sriram foods and

fertilizers in December 1985.fertilizers in December 1985.3) Gwalior blast at a dyeing department 3) Gwalior blast at a dyeing department

of GRASIM in December 1991.of GRASIM in December 1991.4) Khalgaon boiler explosion in NTPC in 4) Khalgaon boiler explosion in NTPC in

October 1992.October 1992.5) Mumbai ONGC’s helicopter crash in 5) Mumbai ONGC’s helicopter crash in

the offshore Heera Panna oilfield’s the offshore Heera Panna oilfield’s Neelam area in August 2003.Neelam area in August 2003.

Safety and HealthSafety and HealthMajor International accident-:Major International accident-:

1) NASA – Columbia space shuttle 1) NASA – Columbia space shuttle broke apart during reentry on Feb 1, broke apart during reentry on Feb 1, 2003. Wing damage sustained during 2003. Wing damage sustained during launch by a chunk of fuel tank launch by a chunk of fuel tank insulation was cited as the accident insulation was cited as the accident cause.cause.

Safety and HealthSafety and HealthSafety -: refers to the absence of Safety -: refers to the absence of

accidents. Stated differently, safety accidents. Stated differently, safety refers to the protection of workers refers to the protection of workers from the danger of accidents.from the danger of accidents.

Research says “ Every twenty Research says “ Every twenty seconds of working minute of every seconds of working minute of every hour throughout the World, someone hour throughout the World, someone dies as a result of an industrial dies as a result of an industrial accident”.accident”.

Safety and HealthSafety and HealthTypes of accidents -:Types of accidents -:

Accidents Accidents

Internal External Internal External

Major MinorMajor Minor

Fatal DisabilityFatal Disability


Disability Disability

Temporary Temporary Permanent Permanent

Partial Total Partial TotalPartial Total Partial Total

Safety and HealthSafety and Health Internal – If a bone is fracture which Internal – If a bone is fracture which

cant be seen and judged from open cant be seen and judged from open eyes.eyes.

External – wounds which are seen External – wounds which are seen through our open eyes.through our open eyes.

Major – Accidents results in death or Major – Accidents results in death or results in prolonged injury.results in prolonged injury.

Minor – A scratch or injury does not Minor – A scratch or injury does not seriously disable.seriously disable.

Temporary – If a person recovers Temporary – If a person recovers disability from which he can recover disability from which he can recover fully after certain period.fully after certain period.

Safety and HealthSafety and HealthPermanent – Any injury which Permanent – Any injury which

permanently disabled the person.permanently disabled the person.

Safety and HealthSafety and Health Need for safety -:Need for safety -:1)1) Cost saving – Direct cost ie Cost saving – Direct cost ie

compensation and Indirect cost ie compensation and Indirect cost ie loss of production, damages of loss of production, damages of equipment, wastage of time.equipment, wastage of time.

2)2) Increased productivity – Safety Increased productivity – Safety promotes productivity, employees promotes productivity, employees feel safe and produce good quality feel safe and produce good quality and quantity.and quantity.


3) Moral – Providing safety to the 3) Moral – Providing safety to the employee has moral dimension, in employee has moral dimension, in addition to being a legal addition to being a legal requirement. An employer has no requirement. An employer has no right to cause accident to an right to cause accident to an employee which might kill the employee which might kill the person. Monetary compensation does person. Monetary compensation does not bring the person back as a not bring the person back as a healthy individual.healthy individual.

Can monetary compensation be a Can monetary compensation be a substitute for person?substitute for person?


4) Legal – Supreme court says “ An 4) Legal – Supreme court says “ An enterprise which is engaged in a enterprise which is engaged in a hazardous dangerously industry hazardous dangerously industry which poses a potential threat to the which poses a potential threat to the health and safety of the persons health and safety of the persons working in the factory or industry working in the factory or industry must ensure that neither the workers must ensure that neither the workers nor the society suffers any kind of nor the society suffers any kind of damages” . All safety related damages” . All safety related requirements to be fulfilled by the requirements to be fulfilled by the industry as legal requirement before industry as legal requirement before start of work.start of work.

Safety and HealthSafety and Health Safety Program -:Safety Program -: Safety program deals with the prevention of Safety program deals with the prevention of

accidents and with minimising the resulting accidents and with minimising the resulting loss and damage to person and property. loss and damage to person and property.

Five principles that govern the safety Five principles that govern the safety program of an organisation are -:program of an organisation are -:

1) Industrial accidents are a the result of 1) Industrial accidents are a the result of multiple factors. So these factors have to be multiple factors. So these factors have to be traced to their root causes, which are traced to their root causes, which are usually falls in the management system usually falls in the management system arising from poor leadership from top, arising from poor leadership from top, inadequate supervision, no attention to inadequate supervision, no attention to design safety system.design safety system.


2) The most important function of safety 2) The most important function of safety programmes is to identify potential programmes is to identify potential hazards, provide effective remedial hazards, provide effective remedial actions.actions.

This is possible only if there are -:This is possible only if there are -:

a)a) Effective system for reporting all Effective system for reporting all accidents causing damage or injury.accidents causing damage or injury.

b)b) Adequate accidents records.Adequate accidents records.

c)c) Systematic procedures for carrying out Systematic procedures for carrying out safety checks, inspections.safety checks, inspections.

d)d) Methods of ensuring that safety Methods of ensuring that safety equipment is maintained.equipment is maintained.


3) Safety policy of the organisation should 3) Safety policy of the organisation should be determined by the top management be determined by the top management and it must continuously involved in and it must continuously involved in monitoring safety performance.monitoring safety performance.

4) The management and supervision must 4) The management and supervision must be made fully accountable for safety be made fully accountable for safety performance in the working areas they performance in the working areas they control.control.

5) All employees should be given thorough 5) All employees should be given thorough training in safe methods of work and they training in safe methods of work and they should get regular guidance on should get regular guidance on eleminating safety hazards. eleminating safety hazards.

Safety and HealthSafety and Health Safety Process -:Safety Process -: Strategic choicesStrategic choices development of safety policydevelopment of safety policy

Organisation for safetyOrganisation for safety

Analysis of causes of accidentsAnalysis of causes of accidents

Implementation of programImplementation of program

Evaluation of effectivenessEvaluation of effectiveness

Safety and HealthSafety and Health Strategic choices – Management must Strategic choices – Management must

make decision regarding safety of their make decision regarding safety of their workers. Some strategic choices are-:workers. Some strategic choices are-:

1)1) Must determine the level of protection. Must determine the level of protection. Some co because of financial constraints Some co because of financial constraints prefer low level.prefer low level.

2)2) Must decide whether a safety program Must decide whether a safety program will be formal or informal. Formal have will be formal or informal. Formal have written regulation & carefully monitored. written regulation & carefully monitored. Informal are enforced because of Informal are enforced because of pressure and include good training.pressure and include good training.


3) Management can be proactive or 3) Management can be proactive or reactive.reactive.

4) Management can use safety of 4) Management can use safety of workers as a marketing tool of the workers as a marketing tool of the organisation.organisation.

Safety and HealthSafety and Health Health - : The well being of the Health - : The well being of the

employees in an industrial establishment employees in an industrial establishment is affected by accidents and by ill health is affected by accidents and by ill health – physical as well as mental.– physical as well as mental.

Health in Industry can be discussed Health in Industry can be discussed through following angles-:through following angles-:

1)1) Physical healthPhysical health

2)2) Mental healthMental health

3)3) Noise controlNoise control

4)4) Stress managementStress management

5)5) Violence at work placeViolence at work place

Safety and HealthSafety and HealthHealth hazards -:Health hazards -:

Health hazards CausesHealth hazards Causes

Lung cancer oven emissions, Lung cancer oven emissions, smokessmokes

Leukemia Radiation Leukemia Radiation

Reproductive problems RadiationReproductive problems Radiation

Vision Chemical fumes, Office Vision Chemical fumes, Office equip.equip.

Hearing High noise levelHearing High noise level

Safety and HealthSafety and HealthMental health -: Specially at Mental health -: Specially at

executive cadre. Three reasons for executive cadre. Three reasons for this development are mental this development are mental breakdowns because of pressure & breakdowns because of pressure & tensions. Mental disturbances tensions. Mental disturbances because of reduced productivity & because of reduced productivity & lower profits. Mental illness lower profits. Mental illness alcoholism & poor human relations. alcoholism & poor human relations.

Safety and HealthSafety and HealthNoise Control -: Noise can only be Noise Control -: Noise can only be

minimised but can not be totally minimised but can not be totally eliminated. Constant exposure to eliminated. Constant exposure to noise not only effects hearing ability noise not only effects hearing ability but also effect the general health of but also effect the general health of the employees.the employees.

Safety and HealthSafety and HealthWork stress -: refers to an individuals Work stress -: refers to an individuals

response to a disturbing factor in the response to a disturbing factor in the environment . Stress is mostly environment . Stress is mostly understood to be negative, but it has understood to be negative, but it has positive dimension also. When stress positive dimension also. When stress brings out something better from an brings out something better from an individual, it is called eustress.individual, it is called eustress.

Violence at work place -:Violence at work place -:

HRM Intro 2007 Ppt

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Transcript of HRM Intro 2007 Ppt