BA 924 – HUMAN RESOURCE MANAGEMENT

Unit – IEvolution of Human Resource Management: Human resource activities probably been performed since ancient times. The pioneering work of Peter Drucker and Douglas McGregor in the 1950’s laid its formal foundation. Modern concept of HRM has developed through the following stages

a) The commodity concept: Before industrial revolution, the guild system was the beginning of personnel management. Guild was a closely knit group concerned with selecting, training, rewarding and maintaining workers. Labour began to be considered a commodity to be bought and sold.

b) The factor of production concept: employees were considered a factor of production just like land, material, machinery. Taylor’s scientific management stressed proper selection and training of employees so as to maximise productivity.

c) The paternalistic concept: employees organised together on the basis of their common interest and formed trade unions to improve. Also employers began to provide schemes to workers.

d) The Humanitarian concept: It is based on the belief that employees had certain inalienable rights as human beings and it is the duty of the employer to protect them.

e) The behavioural Human resource concept: it aimed at analysing and understanding human behaviour in organisation. Motivation, group dynamics, organisational climate, organisational conflict etc., become popular under this concept.

f) Emerging concept: Here employees are considered as partners in industry. They are given share in company’s stock membership. Slowly and steadily HRM is emerging as a discipline in this stage.

Definition:- Human resource management is the planning, organising, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organisational and social objectives are accomplished.

David A. Decenzo and Stephen P. Robbins

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The importance of human factor:- The study of human factor is to understand human capabilities and limitations. This includes applying this information to design equipment, work environments, procedures and policies that are compatible with human abilities. In this way one can design technology, environment, and organizations that will work with people to enhance their performance. The following are the various traits of people in an organization.

Knowledge – Specific information and understanding of the job/role or the technology one is working with, is an important factor influencing human performance.

Skills – The proficiency, facility, or dexterity that is acquired or developed through training or experience, i.e. a talent or ability that has been developed by putting knowledge into practice.

Abilities –Abilities refer to an individual’s natural or acquired mental or physical power to accomplish the job assigned to him/her.

Memory – Memory refers to the process of reproducing or recalling what has been learned. In context of human performance it means an individual’s ability to recall what was learned through training or experience and apply it in one’s job.

Motivation – A learned behaviour occurs only if it is energized/ backed by a reason; which gives purpose and direction. Both observation and research shows that motivated employees are more productive.

Alertness – In organisation alertness is an important determinant of human performance. The nature of the job requires an individual to be watchful and quick in perceiving and responding to danger or emergency.

Objectives of human resource management:- I Social Objectives:

Creation of employment opportunitiesMaximising productivityAffording maximum material and mental satisfaction to workforceAvoidance of wastage and effortPromotion of healthy human relationsLegal Compliance

II Personnel ObjectivesProvision of adequate remunerationJob securityTraining and Development

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Opportunities of advancementPlacement Appraisal

III Enterprise ObjectivesRecruitment integration and maintenance of competent workersForecasting and balancing the demand and supply of personnelEmployee relationsHuman resource planning

III Union ObjectivesRecognition of unionFormulation of personnel policies in consultation with unionInculcating self discipline

Nature/characteristics of Human Resource Management:-1.HRM is a pervasive function. It permeates all levels of decision making in an organisation. All sections perform human resource management in some way. Academically, the nature of the subject is inter-disciplinary. It draws inputs from other social sciences, particularly, sociology, psychology, political science, anthropology, economics, etc. 2. HRM is also a comprehensive function, in that it is concerned directly or indirectly with every decision that in any way relates, even collaterally to human resource management, irrespective of the section it emanates from or the level at which it is made. 3. Cost effectiveness is a must to attract, induce and mobilise resources for its policies, draw the attention of main line management to its policies and proposals. 4. There is a need to spot trends and tailor personnel requirements accordingly towards perceived direction or end, to make optimum utilisation of available human capital. 5. Human resource management department provides for an integrating mechanism. It attempts to build and maintain coordination between all operative levels in an organisation. It is indispensable as a clearing house. Its added significance is due to its being an auxiliary service which is an indispensable maintenance activity. HR department aids ‘line’ officials perform their respective allotted tasks, with direct or incidental bearing on human resource. Policy- making does not proceed piecemeal and organisational functioning is imparted a coherence that might otherwise be hard to achieve. Human resource manager is therefore a specialist advisor and performs vital staff function. 6. HRM is an imperative function for all complex organisations where inter section interests are inextricably linked. It is action oriented as in

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it the focus is on action, rather than record keeping, written procedures or rules. The problems of employees at work are solved through rational, standard policies. 7. HRM seeks to maximise employee motivation to make them contribute to their maximum potential. The same is done through a systematic process of recruitment, selection, training and development together with worker-friendly policies like fair wage, bonus and reward system, effective grievance redressal, etc. 8. HRM is people oriented. Peoples’ existence is defined or perceived in two ways, that is, as individuals working for personal satisfaction and members of a group or collectivity, contributing towards a common objective. Together they constitute the pillars of organisation or organisation wide effort. 9. Tangible quantifiable benefits result to the organisation as also externalities, intangibles or unquantifiable gains (improved organisational culture, management-worker relations, etc.) which optimise organisational performance. Enhanced productivity is then used to reward employees monetarily and motivate them further towards better and improved performance. 10. HRM is continuous activity, consistent function and not a short-term measure. It requires constant alertness and awareness of human relations on the part of managers to maintain healthy organisational climate. 11. Human resource management function is of importance to Public as well as private organisations. Fayol’s advocacy of management as a universal science endorses this idea. 12. It is based on principles: Personnel management is based on certain well defined principles, which have evolved after a great deal of research and experimentation.

HRM Model

The American Society for Training and Development identified the following nine human resource areas.

i. Training and Developmentii. Organisation and Developmentiii. Job designiv. Human Resource Planningv. Selection and Staffing

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vi. Personnel research and information systemsvii. Compensation/benefitsviii. Employee assistanceix. Union/labour relations Scope of HRM

Role of Human Resource Managers

The human resource (HR) manager position is vital to the successful operation of a business. These managers perform such tasks as hiring, training, and maintaining a healthy workplace environment.Strategic Partner: One of the most important role that HRM can play today is that of a strategic partner. Aligning HRM strategies to business strategies is important to help the company execute its business strategy.Administrative Expert: Playing the role of administrative expert requires designing and delivering efficient and effective HRM systems, processes and practices. These include systems for selection, training, developing, appraising and rewarding employees.Employee Advocate: The employee advocate role entails managing the commitment and contributions of employees. No matter how skilled the workers may be, if they are alienated or angry, they will not

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Employee and Executive remuneration

contribute their efforts to the firm’s success not will they stay with the firm for long.Change Agent: It requires that HRM help transform organizations to meet the new competitive conditions. In today’s fast changing competitive world, firms need to both constantly change and develop a capacity for change. HR managers must help identify and manage processes for change.Hiring: An HR manager's objective is to maintain adequate staffing levels for a business and to fill each position with the applicant who is most qualified to perform the job successfully. To do this, an HR manager may post job openings, test applicants, conduct or schedule interviews, and attend recruiting events. Orientation/Training: Orientation entails introducing a new hire to the company and its goals, history, policies, workers, culture, and any other information essential to function within the company. According to the Bureau of Labour Statistics, training may entail classroom instruction, electronic learning, videos and other tools. Interactions: HR managers take employee complaints, mediate conflicts, promote communication, and in some cases, assist in negotiating union contracts. Employee Benefits: HR managers are also charged with providing information about employee benefits, such as 401(k)s, health insurance, life insurance, vacation time, transit subsidies, and stock plans. Performance Reviews/Discipline: In many companies, HR managers conduct or facilitate performance reviews, which is a discussion with an employee about how "she or he is doing relative to the standards and expectations laid out in the job description," according to the Bureau of Labour Statistics. This also includes providing any follow-up training or goals. If needed, HR managers perform or assist with the discipline or firing of employees for not following company policy. They also conduct exit interviews. Allocating Resources/Layoffs: HR managers may help with layoff decisions and allocating remaining resources after layoffs. They may be responsible for informing employees of the layoffs and providing them with severance information. Qualities of HR/Personnel Manager:

Fairness and firmness Tact and resourcefulness Sympathy and consideration Knowledge of labour and other terms Broad social outlook

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Communication skill Competence Self confidence Decision making skill Selflessness

Human Resource Policies: A policy is a plan of action. It is a statement of intention committing the management to a general course of action. When the management drafts a policy statement to cover some features of its personnel programmes, the statement may often contain an expression of philosophy and principle as well.

A policy statement on the other hand is more specific and commits the management to a definite course of action.Why companies adopt policies?

1. The work involved in formulating personnel policies requires that the management give deep thought to the basic needs of both the organisation and the employees

2. Established policies ensure consistent treatment of all personnel throughout the organisation.

3. Continuity of action is assured even though top management personnel change.

4. Policies serve as a standard of performance5. Sound policies help build employee motivation and loyalty.6. Sound policies help resolve intrapersonal, interpersonal and

intergroup conflicts.Policy Formulation:

There are five principal sources for determining the content and meaning of policies

1. Past practice in the organisation2. Prevailing practice in rival companies3. Attitudes and philosophy of founders of the company and also its

directors4. Attitudes and behaviours of the middle and lower management5. The knowledge and experience gained from handling personnel

problems.Human Resource Accounting: The American Accounting Association’s Committee on HRA has defined that human resource accounting as “a process of identifying and measuring data about human resources and communicating this data to information to interested parties”. This definition considers human resource accounting to be an extension of basic functions of accounting namely,

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Human transformed into valuable human output

PEOPLE (Individuals, Groups and the Total human organisationMANAGERIAL SUBSYSTEMS For acquiring, developing, allocating, conserving, utilising, evaluating and rewarding peopleSERVICES Provided by individuals and groups

INPUTS TRANSFORMATION PROCESS OUTPUTS

identification, measurement and communication of data related to human resources. Human transformation

Objectives of HRA:

Increased managerial awareness of the values of human resources,

Better decisions about people, based on improved information systems,

Greater accountability on the part of management for its human resources,

Developing new measures of effective manpower utilization, Enabling a longer time horizon for planning and budgeting, Better human resource planning. Proper management of human resources Improvement of human resources. Depicting the true value of the organization. Provides quantitative information on human resources which

helps the managers and investors in making decisions. HRA communicates the worth of human resources to the

organization and to the public.Characteristics of Human Resource Accounting

It’s a system of accounting in which identification of human resources is made.

Investment made in human resources is recorded. Measurement of costs and values are made. Changes occurring in human resources over a period of time are

also recorded. Communicates information through financial statements to

interested parties.

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HRA is a part of MIS Joint efforts of behavioral scientists, accountants and

managements are needed for the working and development of HRA.

Models or Methods of Human Resource AccountingHistorical Cost Method : Actual cost incurred for recruiting, hiring, training and developing the human resources of the organization are capitalized and amortized over the expected useful life of the human resources.Replacement Cost Method : This is the measure of the cost to replace a firm’s existing human resources. This method has the advantages of adjusting the human value of price trends in the economy.Opportunity Cost Method : In this method, the human resource of an organization has to be valued on the basis of the economist’s concept of opportunity cost which is value of benefit foregone by putting it to present use.Present Value Of Future Earnings Method: ( Lev And Schwartz) It recognizes an individual’s expected economic value to the enterprise during his remaining service period. An estimate about the future earning is made, and these earnings relate to the period which extends to the date of retirement of the employees. Such earnings are discounted by an appropriate range to get the present value. Benefits of HRA

HRA provides the information of total cost of human assets which can be used for calculating the benefits for business by comparing it with the benefits provided by employees.

It offsets uncertainty and change, as it enables the organization to have the right person for the right job at the right time and place.

It provides scope for advancement and development of employees by effective training and development

It helps individual employee to aspire for promotion and better benefits

It aims to see that the human involvement in the organization is not wasted and brings high return to the organization.

It helps to take steps to improve employee contribution in the form of increased productivity.

It can foresee the change in value, aptitude and attitude of human resources and accordingly change the techniques of interpersonal management.

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Demerits of Human resource accounting There is no proper clear cut and specific procedure or guidelines

for finding cost and value of human resources of an organisation Jealousy to see the high value of other employee can decrease

the efficiency of any employee because he can think why my price is so low and other employee’s price is so high.

From human resource accounting, we cannot get short period benefits like general historical accounting system.

Indian company law 1956, Indian Income tax law 1961 and other legal laws have no rule for showing human resource assets in the balance sheet.

There is a constant fear of the opposition from the trade unions that placing a value on employees.

There is no universally accepted method of human resource valuation.

Human Resource Audit

Human Resource Audit is a systematic process, which is designed to examine the strategies, policies, procedures, documentation, structure, systems and practices with respect to the organization’s human resource management. It systematically and scientifically assesses the strengths, limitations, and developmental needs of the existing human resources from the larger point of view of enhancing organizational performance. The Scope of HR audit

The HR audit usually covers three parameters, namely, the HR policies and practices, the HR professionals and the HR department.With respect to each of these, the Audit tries to find out:

1. The actual state2. The congruence between the desired/professed state and the

actual state;3. The alignment with the overall organizational strategy and goals;

and4. The compliance with the laws and regulations.

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Auditing HR PracticesAll HR departments provide several services that may be

clustered into six key domains (Ulrich and Lake, 1990), staffing, training and development, appraisal, rewards, organization governance and communication. For each of these six domains, Ulrich recommends four types of assessments.

The first is an assessment of activity that not only describes the services being provided by the HR department but also assesses the focus of the HR strategies, the distribution of responsibility, the resource utilization, and the competencies of the HR portfolio.

The second type of assessment is that of customer value. HR departments may be said to be providing a range of services to customers, who are the employees of the firm. Customer surveys are conducted to capture the employees’ perceptions about the importance and the quality of the HR services.Auditing HR Professionals

An audit of HR professionals is essentially an assessment of the extent to which the professionals demonstrate competence for HR function. Such an assessment requires a 360 degree feedback, and, usually employs the following fivesteps :Developing a Model of Competencies: Before embarking on an assessment of competence, it is necessary to first determine the competencies that make a successful HR professional. Collect data using the Model: Several techniques may be employed to collect data about the extent to which an HR professional exhibits the modeled competencies. These include interviews, questionnaires and focused groups.Summarise data and give feedback to the HR professionals: The quantitative and qualitative data that is collected in the above mentioned ways needs to be synthesized and codified so that specific themes emerge. Create action plans: The HR audit goes beyond defining the competencies and inadequacies of the HR function. It also identifies the measures to develop the competencies at both, the individual and the departmental level. Continuous Improvement: Auditing of HR professionals is not a onetime audit activity but an ongoing continuous process through which HR professionals are able to constantly build on their HR competencies and strengthen the HR functions in the organization.Auditing HR Function or Department

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Auditing HR function and the HR department may be an integration of individual HR competencies. However, at the same time, there are additional overall indicators of HR functions, such as ratio of total employees to HR professionals, the performance of the department against the plan, the ratio of expenditure on HR to total sales, general costs and other such measuresThe Auditing Process:. is a function of the objectives and the scope of the Audit, the nature of the organisation and the level of involvement of the top management. Though this process may vary from organisation to organisation, it essentially follows the stages described below.1.Briefing and orientation: This is a preparatory meeting of key staff members to:

discuss particular issues considered to be significant chart out audit procedures, and develop plans and programme of audit

II.Scanning material information: This involves scrutiny of all available records and documents pertaining to the personnel as well as personnel handbooks and manuals, guides, appraisal forms, material on recruitment, computer capabilities, and all such other information considered relevant.III.Surveying employees: Surveying employees involves interview with key managers, functional executives, top functionaries in the organizations, and even employees representatives, if necessary. The purpose is to identify and enumerate issues of concern, present strengths, anticipated needs and managerial philosophies on human resources.IV.Conducting interviews: The key issue here is to list the pertinent and probing questions. The decision on these questions depends on the scope and purpose of the Audit as well as on the culture of the organization. The skill of the interviewer lies in getting relevant and correct information without threatening the interviewees.V.Synthesizing: The data thus gathered is synthesized to present the:

Current situation Priorities Staff pattern, and Issues identified. Similarly, future needs are identified and appropriate criteria

developed for spotlighting the human resource priorities and specific

recommendations made.

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VI.Reporting: Like planning meetings for briefing and orientation, the results of the audit are discussed within several rounds with the managers and staff specialists. In the process, the issues get further crystallized. Based on the findings and the discussion during the meetings, then a final report is prepared and presented formally to the Management. A Human Resource Management System (HRMS) or Human Resource Information System (HRIS), refers to the systems and processes at the intersection between human resource management (HRM) and information technology. It merges HRM as a discipline and in particular its basic HR activities and processes with the information technology field.Currently Human Resource Management Systems encompass:The payroll module automates the pay process by gathering data on employee time and attendance, calculating various deductions and taxes, and generating periodic pay cheques and employee tax reports. Data is generally fed from the human resources and time keeping modules to calculate automatic deposit and manual cheque writing capabilities.The work time module gathers standardized time and work related efforts. The most advanced modules provide broad flexibility in data collection methods, labor distribution capabilities and data analysis features. Cost analysis and efficiency metrics are the primary functions.The benefits administration module provides a system for organizations to administer and track employee participation in benefits programs. These typically encompass insurance, compensation, profit sharing and retirement.The HR management module is a component covering many other HR aspects from application to retirement. The system records basic demographic and address data, selection, training and development, capabilities and skills management, compensation planning records and other related activities. Leading edge systems provide the ability to "read" applications and enter relevant data to applicable database fields, notify employers and provide position management and position control. Online recruiting has become one of the primary methods employed by HR departments to garner potential candidates for available positions within an organization. The training module provides a system for organizations to administer and track employee training and development efforts. The system, normally called a Learning Management System if a stand

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alone product, allows HR to track education, qualifications and skills of the employees, as well as outlining what training courses, books, CDs, web based learning or materials are available to develop which skills. Courses can then be offered in date specific sessions, with delegates and training resources being mapped and managed within the same system. Sophisticated LMS allow managers to approve training, budgets and calendars alongside performance management and appraisal metrics.The Employee Self-Service module allows employees to query HR related data and perform some HR transactions over the system. Employees may query their attendance record from the system without asking the information from HR personnel.An Applicant Tracking System (ATS) is a software application that enables the electronic handling of recruitment needs. An ATS can be implemented on an Enterprise or small business level, depending on the needs of the company. ATS systems are very similar to Customer Relationship Management Systems, but are designed for recruitment tracking purposes. Learning management system A learning management system (commonly abbreviated as LMS) is a software application for the administration, documentation, tracking, and reporting of training programs, classroom and online events, e-learning programs, and training content.E-learning comprises all forms of electronically supported learning and teaching. The information and communication systems, whether networked or not, serve as specific media to implement the learning process. E-learning is essentially the computer and network-enabled transfer of skills and knowledge. E-learning applications and processes include Web-based learning, computer-based learning, virtual classroom opportunities and digital collaboration. Content is delivered via the Internet, intranet/extranet, audio or video tape, satellite TV, and CD-ROM. It can be self-paced or instructor-led and includes media in the form of text, image, animation, streaming video and audio.Computer-Based Trainings (CBTs) are self-paced learning activities accessible via a computer or handheld device. CBTs typically present content in a linear fashion, much like reading an online book or manual. For this reason they are often used to teach static processes, such as using software or completing mathematical equations. The term Computer-Based Training is often used interchangeably with Web-based training (WBT) with the primary difference being the delivery method. Where CBTs are typically delivered via CD-ROM, WBTs are delivered via the Internet using a web browser.

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Computer-supported collaborative learning (CSCL) is one of the most promising innovations to improve teaching and learning with the help of modern information and communication technology. Most recent developments in CSCL have been called E-Learning 2.0, but the concept of collaborative or group learning whereby instructional methods are designed to encourage or require students to work together on learning tasks has existed much longer. Technology enhanced learning (TEL) has the goal to provide socio-technical innovations (also improving efficiency and cost effectiveness) for e-learning practices, regarding individuals and organizations, independent of time, place and pace. The field of TEL therefore applies to the support of any learning activity through technology.Electronic Performance Support Systems, EPSS, can help an organization to reduce the cost of training staff while increasing productivity and performance. It can empower employees to perform tasks with a minimum amount of external intervention or training. By using this type of system an employee, especially a new employee, will not only be able to complete his or her work more quickly and accurately, but as a secondary benefit the employee will also learn more about the job and the employer's business.

Advantages Reducing the complexity or number of steps required to

perform a task Providing the performance information an employee needs

to perform a task Providing a decision support system that enables an

employee to identify the action that is appropriate for a particular set of conditions

Unit – IIHuman Resource Planning:Definition: it is the process by which an organisation ensures that it has the right number and kinds of people, at the right places, at the right time, capable of effectively and efficiently completing those tasks that will help the organisation achieve its overall objectives. Human resource planning, then, translates the organisations objectives and plans into the number of workers needed to meet those objectives.

DecenzoThe objectives of HRP are mainly to:a) Ensure optimum utilization of human resources currently employed;b) Assess or forecast future requirements;

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c) Cope up with the changing scenario;d) Attaching with business plans of organization;e) Anticipate redundancies;f) Provide basis for human resource development (HRD); andg) Assist in productivity bargaining.Benefits of HRPProper HRP results into a number of benefits. Some of them are:a) Create reservoir of talent.b) Preparation for future HR needs.c) Promote employees in a systematic manner.d) Provide basis for HRD.e) Help in career and succession planning.HR Planning Process

Forecasting Human Resource Requirements Forecasting is the attempt to determine the supply of and

demand for various types of human resources to predict areas within the organisation where there will be future labour shortages or surpluses.

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Forecasting techniquesa)Managerial Judgment: In this, experienced managers estimate the human resource requirements or their respective departments on the basis of their knowledge of expected future work load and employee efficiency.b) Work-study Method: In this method time and motion study are used to analyze and measure the work being done.c) Ratio-Trend Analysis: Under this method ratios (e.g. total output/no. of workers, direct workers/indirect workers) are calculated on the basis of past data. Future ratios are basing on the past trend.d)Delphi Technique: Named after the ancient Greek oracle at the city of Delphi, the Delphi technique is a method of forecasting personnel needs. It solicits estimates of personnel needs from a group of experts, usually managers.e) Mathematical Models: It expresses the relationship between independent variable (e.g. investment, production, sales, etc.) and dependent variables (e.g. no. of employees required).Job Analysis: a job analysis is a systematic exploration of the activities within a job. It is a basic technical procedure, one that is used to define the duties, responsibilities and accountabilities of a job. This analysis involves compiling a detailed description of tasks, determining the relationship of the job to technology and to other tasks and examining the knowledge, qualifications or employment standards accountabilities and other incumbent requirement.

A job element is the smallest unit into which work can be divided. Putting the tomato on a hamburger is an example of an element in the job

A task is a distinct work activity carried out for a distinct purpose. Example typing a letter, preparing a lecture etc.

A duty is a number of tasks. Example a general accounting clerk’s duties might include preparing the monthly income statement and distributing the weekly payroll checks.

A position refers to one or more duties performed by one person in an organisation. Example Assistant professor, Clerk

A job is a type of position within an organisation. If a large insurance company employs sixty life insurance actuaries, then there are sixty positions but just one insurance actuary job.

An occupation is a group of similar jobs found across organisations. Eg. Electrician, accountant etc.

A career represents a sequence of positions, jobs, or occupations that a person has over his or her working life.

Purposes of job analysis

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A job analysis is the conceptual, analytical process or action from which we develop our tangible outcomes; job descriptions, job specifications, and job evaluations.Job Description

A job description is a written statement of what the jobholder does, how it is done, and why it is done. It should accurately portray job content, environment, and conditions of employment. A common format for a job description includes the job title, the duties to be performed, the distinguishing characteristics of the job, and the authority and responsibilities of the job holder.Job Specifications

The job specification states that the minimum acceptable qualifications that the incumbent must possess to perform the job successfully. Based on the information acquired through job analysis, the job specification identifies the knowledge, skills and abilities needed to do the job effectively.

Job descriptionA statement containing itemsSuch as

Job title Location Job summary Duties Machines, tools and

equipments Materials and forms used Supervision given Working conditions Hazards

Job specificationA statement of human qualifications necessary to do the job. Usually contains such items as

Education Experience Training Judgement Initiative Physical effort Responsibilities Communication skills Emotional characteristics Unusual demands such as

sight, smell, hearing

Recruiting:- Recruiting is the discovering of potential candidates for actual or anticipated organisational vacancies. Or, from another perspective, it is a linking activity – bringing together those with jobs to and those seeking jobs.Purpose and importance of recruitment:

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Determine the present and future requirements of the organisation in conjunction with its personnel planning and job analysis activities.

Increase the pool of job candidates at minimum cost. Help increase the success rate of the selection process by

reducing the number of visibly, underqualified or overqualifed job applicants.

Help reduce the probability of applicants once recruited and selected will leave the organisation only after a short period of time.

Increase organisational and individual effectiveness in the short term and long term.

Evaluate the effectiveness of various recruiting techniques and sources for all types of job applicants.

Recruiting sources:-I Internal Recruitment

1. Internal Search/Present employees: Most large organisational will attempt to develop their own employees for positions beyond the lowest level. Its advantages are it builds morale, it encourages good individuals who are ambitious it improves probability of a good selection, it is less costly, they already know the organisation etc.

2. Employee referrals : Employees can develop good prospects for their families and friends by acquainting them with advantages of a job with the company, furnishing cards of introduction, and even encouraging them to apply.

3. Former Employees: Former employees are also a source of applicants. Some retired employees may be willing to come back to work on a part time basis or may recommend someone who would be interested in working for the company.

4. Previous Applicants: Although not truly an internal source, those who have previously applied for jobs can be contacted by mail, a quick and inexpensive way to fill an unexpected opening.

II External Recruitment1. Advertisements: When an organisation desires to communicate to

the public that it has a vacancy advertisements are one of the most popular methods used. However where the advertisement is placed is often determined by the type of job.

2. Employment Agency : There are three types of agencies, public, state agencies, private employment agencies and management consulting firms

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a. Public Agencies: It is designed both to help job seekers find suitable employment especially government jobs and to help employers find suitable workers.

b. Private Employment agencies: It is similar to a government agency but charge fee for its services. Private agencies are believed to offer positions and applicants of a higher caliber. It also provide a more complete line of services.

c. Management consultants/ Head hunters: It consists of the management consulting, executive search, or headhunting firms. Agencies of this type are actually specialised private employment agencies. They specialise in middle and top level executive placements.

3. Temporary help services : temporary services can be a source of employees when individuals are needed on a temporary basis. Temporary employees are particularly valuable in meeting short term fluctuations in personnel needs.

4. Schools, colleges and Universities : Educational institutions offer opportunities for recruiting recent graduates. Most educational institutions operate placement services where prospective employers can review credentials and interview candidates.

5. Professional Organisations; Professional organisations including labour unions, operate placement services for the benefit of their members.

6. Casual Unsolicited Applications/Walk ins: Walk ins whether they reach the employer by letter, telephone or in person can be a source of prospective applicants. Although the qualifications of unsolicited applicants will depend on economic conditions, the organisations image, and the job seekers perception of the types of job that might available, this source does provide an excellent supply of stockpiled applicants.

7. Contractors: Contractors are used to recruit casual workers. The names of the workers are not entered in the company workers and to this extent, difficulties experienced in maintaining permanent workers are avoided.

8. Competitors: Rival firms can be a source of recruitment. Popularly called poaching or raiding this method involves identifying the right people in rival companies offering them better terms and luring them away.

9. International recruiting : Recruitment in foreign countries presents unique challenges to recruiters. In advanced nations more or less similar channels of recruitment are available for recruiters. In less developed countries the picture is different. Beyond employee

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referrals and embassy assistance, recruitees may find that they have to develop their own network of contacts, ranging from newspaper reporters to government officials in the host country.

Selection: Selection is the process of differentiating between applicants in order to identify those with a greater likelihood of success in a job.

In other words it is the process of picking individuals with requisite qualifications and competence to fill jobs in the organisation. Selection Process:I Preliminary Interview: It is also called as initial screening. In the overall process of selection, screening comes after the recruitment is complete. Screening is a process of reducing the number of applicants to a few who have better chances of selection than those screened out. Screening is generally done on two counts – eligibility and suitability.II Application Blank: Once the initial screening has been completed, applicants are asked to complete the organisation’s application form. The amount of information required may be applicants name, address, phone no, etc. Some organisations on the other hand may request the completion of six to ten page comprehensive personal history profile.III Employment Tests: Job seekers who pass the screening and the preliminary interview are called for tests. Different types of tests may be administered, depending on the job and the company. Tests are used to determine the applicant’s ability, aptitude and personality.Type of tests:

i. Cognitive ability tests: cognitive ability has many different facets, although one focus on three dominant ones. Verbal comprehension refers to a person’s capacity to understand and use written and spoken language. Quantitative ability concerns the speed and accuracy with which one can solve arithmetic problems of all kinds. Reasoning ability a broader concept refers to a person’s capacity to invent solutions to many diverse problems.

ii. Performance test or achievement test: this test measures the level of knowledge and skills which a candidate has acquired for a particular job. For example candidates for

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the post of typist may be asked to type some material in order to judge their speed and accuracy.

iii. Intelligence test: such a test seeks to measure the mental capacity of an individual in terms of memory, vocabulary, perception, reasoning etc. It also judges the ability to deal with abstract symbols, words, ideas, numbers etc.

iv. Aptitude test: an aptitude test is used to measure applicant’s capacity and potential for learning the skills required for a particular job. It is helpful in predicting a candidate’s success on a particular job.

v. Interest test: these tests are designed to find out the interest of an applicant in the job he has applied for, two of the most widely used tests are strong vocational interest blank and Kuder preference record.

vi. Personality test: Personality tests are given to measure a prospective employee’s motivation to function in a particular working environment. There are various tests designed to assess individuals personality.

a. Thematic Appreciation Test: in this popular test the candidate is shown a series a pictures, one at a time and asked to write a story for each picture, for example, in one scene there is a boy lying on the floor next to a couch with a revolver by his side, another picture shows a person with liquor bottle in his hand, quarrelling with his wife. The candidate is supposed to expand the story thus what has led up to the current scene, what is happening at the moment, what are the characters feeling etc. The psychologist analyse the story in terms of factors as length, vocabulary, ideas, plot, mood etc.

b. Ink Blot Test: in this test the candidate is asked to organise unstructured ink blots into a meaningful concepts. The resulting projections are analysed in terms of use of colour and shades, use of part or whole of a blot, definiteness of forms seen, etc. An integrated picture of the candidate’s personality is then formulated.

vii. Graphology test: it is designed to analyse the handwriting of an individual. It has been said that an individual’s handwriting can suggest the degree of

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energy, inhibitions and spontaneity as well as disclose the idiosyncrasies, and elements of balance of control.

viii. Dexterity test: these tests are used to measure the capacity of the applicant to use his fingers and hands in the industrial work. In many companies interview is the only tool used in selecting new employees. This is a particularly useful in case of skilled and technical jobs.

IV Interview: The interview is designed to probe into areas that cannot be addressed by the application form or tests. These areas usually consist of assessing one’s motivation, ability to work under pressure, and ability to fit in with the organisation. The interview may be conducted by personnel department interviewers, executives within the organisation, a potential supervisor, potential colleagues or some combination of these.Types of Interview:

i. Individual or one to one interview: it is one of the most common selection method. They offer the advantages of direct face to face communication, and opportunity to establish rapport between the candidate and interviewer.

ii. Board/Panel Interview: A panel may consist of two or more people who together interview a single candidate: most commonly an HR specialist and other experts.

iii. Situational interview: an interview procedure where applicants are confronted with specific issues, questions, or problems, that are likely to arise on the job.

iv. Structured interview or Patterned interview: under this method a number of standard questions to be put to a candidate are framed in advance. Ideal answers to these questions are also determined beforehand. Then the answers given by the candidate are checked with the ideal answers to assess his suitability for the job in question.

v. Unstructured Interview: Under this type a blend of structured and unstructured questions are used by the interviewer while interviewing job seekers.

vi. Stress interview: in such an interview the interview deliberately creates a situation that subjects the candidate to considerable stress and strain. The purpose is to know how the candidate reacts to such a situation.

vii. Depth interview: the purpose of depth interview is to get total information of an applicant. The objective is to develop a comprehensive profile based on in-depth understanding of the frozen aspects of his personality and

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flexible aspects of his personality. This kind of interview is usually very time consuming because a lot of time is spent with the applicant to get detailed information on various aspects of his life.

viii. Group interview: under this method a number of candidates are interviewed simultaneously. A question or problem situation is posed before them and each candidate is asked to participate in the discussion. It is helpful to evaluate a candidate’s performance in a group.

V Background Investigation: the next step in the selection process is to undertake an investigation of those applicants who appear to offer potential as employees. This may include contacting former employers to confirm the candidates work record and to obtain their appraisal of his or her performance, contacting other job related and personal references, and verifying the educational accomplishments shown on the application.

VI Selection Decision: those individuals who perform successfully on the employment tests and the comprehensive interview, and are not eliminated by the development of negative information on either the background investigation are considered to be eligible to receive

an offer of employment.VII Physical Examination: After the selection and before the job

offer is made the candidate is required to undergo a physical fitness test. A job offer is often contingent upon the candidate being declared fit after the physical examination.

VIII Job Offer: A job offer is made to those applicants who have passed the previous hurdles. Such a letter generally contains a date by which the appointee must report to the duty. The appointee must be given reasonable time for reporting. This is necessary when he

or she is already in employment.IX Contract of employment: After the job offer has been made

and the candidates accept the offer, certain documents need to be executed by the employer and the candidate. One such document is the contract of employment. Such contracts seek to restrain job hoppers to protect knowledge and information that might be vital to a company’s healthy bottom line and to prevent competitors from poaching highly valued employees.

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Selection Method StandardsPersonnel selection is the process by which companies decide

who will or who will not be allowed into organisations. Several standards should be met in any of the selection process. We focus on five (1) Reliability (2) validity (3) Generalizability (4) Utility and (5) Legality.Reliability: The consistency of a performance measure; the degree to which a performance measure is free from random error. For example if you were to have your height measured everyday with a wooden yardstick, you would get highly reliable results. On the other hand, if you were measured each day by an elastic tape measure, there would probably be considerable disparity between your height measurements from one to the next. Your height of course, does not change from day to day. The variability is due to the unreliability of the measuring device.Validity: It is the extent to which performance on the measure is related to performance on the job. A measure must be reliable if it is to have any validity. On the other hand we can reliably measure many characteristics that may have no relationship to whether some can perform a job. For this reason. Reliability is a necessary but insufficient condition for validity. For example just because a test score is consistent is no indication that it is measuring important characteristics related to job behaviour. It must also differentiate between satisfactory and unsatisfactory performances of the job.

There are three types of validity: Content, Construct and Criterion related. Content Validity: A test validation strategy performed by demonstrating that the items, questions, or problems posed by a test are a representative sample of the kinds of situations or problems that occur on the job.Construct validity: It is the degree to which a particular trait is related to successful performance on the job. These trait are usually abstract in nature, such as measure of intelligence. This type of validity is

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usually conducted by observing various behaviours of applicant and measuring how these behaviours or traits relate to the job.Criterion related validity: It is the degree to which a particular selection device accurately predicts the important elements of work behaviour. The measures reveal the relationship between test score and job performance. To establish criterion related validity, one of the two measures can be used: predictive validity and concurrent validity.Predictive Validation: A criterion related validity study that seeks to establish an empirical relationship between applicants test scores and their eventual performance on the job.Concurrent Validation: A criterion related validity study in which a test score is administered to all the people currently in their job and the incumbents scores are correlated with existing measures of job performance.Generalizability: The degree to which the validity of a selection method established in one context extend to other contextUtility: The degree to which the information provided by selection methods enhances the effectiveness of selecting personnel in real organisations.Legality: The final Standard that any selection methods adhere to is legality. All selection methods should conform to existing laws and existing legal precedents.

Socialisation: It is the process by which new employees are transformed into effective members of the company. Effective socialisation involves being prepared to perform the job effectively, learning about organisation, and establishing work relationships.Socialisation involves three stages

Prearrival Stage: It recognizes that each individual arrives with a set of organisational values, attitudes and expectations. Individuals also develop expectations about the company, job, working conditions and interpersonal relationships.Encounter Stage: Upon entry into the organisation the new members enter the encounter stage. Here individuals confront the possible dichotomy between their expectations- about their job, their co-workers, their boss, and the organisation in general and reality.

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Metamorphosis Stage In this stage the new members have become comfortable with the organisation and their job. They have internalised the norms of the organisation and their work groups; they understand and accept these norms. The new members feel accepted by their peers as trusted and valued individuals. They are self confident that they have the competence to complete their job successfully. They understand their tasks, the rules, procedures and informally accepted practices as well.Orientation: Orientation is only a small part of the overall socialisation of new organisational member. It covers the activities involved in introducing a new employee to the organisation and to his or her work unit. Orientation involves familiarising new employees with company rules, policies, and procedures. Typically a program includes information about the company, department in which the employees will be working and the community they will live in.Benefits of Orientation

Improves employee retention rate Communicates to employees what is expected Helps satisfy employee’s need to know about where he/she works Increases employee commitment by introducing them to the

company’s mission and philosophy Shows how individual jobs fit into overall company mission

Unit – IIITraining: Training is a learning experience in that it seeks a relatively permanent change in an individual that will improve his or her ability to perform on the job. Typically say training can involve the changing of skills, knowledge, attitudes, and work behaviour. It may mean changing what employees know, how they work, their attitudes toward their work, or their interactions with their co workers or their supervisors.

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Need for Training: Employment of inexperienced and new labour requires detailed

instructions for effective performance on the job People have not to work, but work effectively with the minimum

of supervision, minimum of cost, waste and spoilage and to produce quality goods and services.

Increasing use of fast changing techniques in production and other operations requires training into newer methods for the operatives.

Training is necessary when a person has to move from one job to another because of transfer, promotion or demotion.

Old employees need refresher training to enable them to keep abreast of changing techniques and use of sophisticated tool and equipment.

To prevent the obsolescence of the employees by updating their skill and knowledge.

To prepare for future assignments To develop employee competencies

Identifying Training Needs1.Organisational Analysis: It involves a comprehensive analysis of organisational structure, objectives, culture, processes of decision making, future objectives and so on.

i. Support of managersii. Company strategyiii. Training resources

2.Task Analysis: Task involves a detailed analysis of various components of jobs, and how they are preformed3.Man/Person Analysis: This focus on individual, his skills, abilities, knowledge and attitude.

i. Input – instructions that tell what how and when to perform

ii. Output- a job’s performance standardsiii. Consequences – the incentives that employees receiveiv. Feedback – information that employees receive

4.Analysis of equipment: Change in equipment or modification of existing machines and equipment calls for new skills and abilities.Inputs in Training

Skills Knowledge Education Development Ethics

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Organisational objectives and strategies

Assessment of Training Needs

Establishment of training goals

Devising training programme

Implementation of training programme

Evaluation of results

Training Process

Methods of Training

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The most popular training methods used by organisations can be broadly classified into two types.

i. On the job trainingii. Off the job training

On the Job Training (OJT)The most widely used methods of training take place on the job.

On-the-job training places the employees in an actual work situation and makes them appear to be immediate productive. It is learning by doing. For jobs that are difficult to simulate or can be learned quickly by watching and doing, on-the-job training makes sense. The following are the various On-the-job training methodsApprenticeship programs: People seeking to enter skilled trades to become, for example, plumbers, electricians or iron workers are often required to undergo apprenticeship training before they are accepted to journeyman status. During the apprenticeship period the trainee is paid less than a fully qualified worker.Job Instruction Training It is a step by step relatively simple technique used to train employees on the job. It is especially suitable for teaching manual skills or procedures; the trainer is usually an employee’s supervisor but can be a co-worker.JIT consists of four basic steps that a supervisor or other instructor follows when teaching an employee to do something: 1. Preparing the trainees by telling them about the job and overcoming their uncertainties; 2. Presenting the instruction, giving essential information in a clear manner; 3. Having the trainees try out the job to demonstrate their understanding; and 4. Placing the workers into the job on their own with a designated resource person to call upon should they need assistance.Coaching: The trainee is placed under particular supervisor who function as a coach in training the individual. The supervisor provides feedback to the trainee on his performance and offers suggestions to him for his development.Job rotation: It involves the movement of a trainee from one job to other jobs. It increases the flexibility of a system by introducing an element of multiskilling. The key is to make use of rotation with a minimum of disruption and learning curve effects, and to retain the element of freshness.Action learning: is an educational process whereby the participant studies their own actions and experience in order to improve performance. Learning acquires knowledge through actual actions and repetitions, rather than through traditional instruction.Off the Job Training

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Off the job training involves taking training away from their place of work. This is often also referred to as formal training. Off the job training courses might be run by the business training department or by external providers.The following are the various types of off the job training programmesLectures/Conferences: The lecture or conference approach is well adapted to conveying specific information – rules, procedures or methods. The use of audio visual or demonstrations can often make a formal classroom presentation more interesting while increasing retention and offering a vehicle for clarifying a more difficult point.Audio Visuals/Films: Motion pictures can be useful training technique. Whether purchased from standard film distributors or produced internally by the organisation, they can provide information and explicitly demonstrate skills that are not easily presented by other techniques.Simulation Exercises: Any training activity that explicitly places a trainee in the artificial environment that closely mirrors actual working conditions can be considered a simulation. Simulation activities include case studies, experiential exercises, complex computer modelling and vestibule training.

Case Study: it is a written description of an actual situation in business which provokes in the reader; the need to decide what is going on, what the situation really is or what the problems are, and what can be done. Taken from the actual experiences of organisations, these cases attempt to describe as accurately as possible, real problems that managers have faced. Trainees study the cases to determine problems, analyse causes, develop alternative solutions, select the best one, and implement it. Case studies can provide stimulating discussions among participants as well as excellent opportunities for individuals to defend their analytical and judgement abilities.Experiential exercise: Experiential exercise is usually short, structured learning experiences where individuals learn by doing. For instance rather than talk about interpersonal conflicts and how to deal with them, an experiential exercise could be used to create a conflict situation where employees have to experience a conflict personally and workout its resolution. After completing the exercise the trainer discusses what happened and introduces theoretical concepts to help explain the members’ behaviour during the exercise.Role playing: One of the most effective training methods is role playing. Not just for sales or customer service training, this

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technique is an excellent way to achieve a number of benefits for employees, management and support people. Role playing allows a group of employees to act out work scenarios. It opens communications; it also gives a great deal of confidence and develops friendship among those participating in the role play situations.Vestibule Training: In vestibule training, employees learn their jobs on the equipment they will be using, but the training is conducted away from the actual work floor. Under this method training is given in a specially created vestibule labs that simulated the actual environment. While expensive, vestibule training allows employees to get a full feel for doing tasks without real world pressures. Additionally it minimises the problem of transferring learning to the job, since vestibule training uses the same equipment that trainee will use on the job.Computer Based Training

Computer assisted instruction: CAI is an improved system when compared to other methods. First CAI provides for accountability as tests are taken on the computer so that the management can monitor each trainee’s progress and needs. Second a CAI training programme can also be modified easily to reflect technological innovations in the equipment for which the employee is being trained. Third this training also tends to be more flexible in that trainees can usually use the computer almost any time they want, and thus get training when they prefer

Computer Modelling: Complex computer modelling simulates the work environment by programming a computer to imitate some of the realities of the job. Computer modelling is widely used by airlines in the training of pilots.

Virtual Reality: Computer based technology that provides trainees with a three dimensional learning experience. Trainees operate in a simulated environment that responds to their behaviours and reactions.

E Learning: Electronic Learning or E-Learning has been around for last ten years. From initial strategy of a radical idea it is now regarded as the mainstream learning technology. E- Learning is a general term which refers to computer enhanced learning and is the result of sophisticated computer technology. Basically, it involves posting lessons on computer, which can be downloaded by the users. Online training is given by the instructor to the trainee. The most common technologies involved in E learning are E-mail, virtual class room, E conferencing, telephone and PDA’s etc.

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Programmed Instruction: The programmed instruction can be in the form of programmed texts or manuals, while in some organisations teaching machines are utilized. All programmed instruction approaches have a common characteristic: they condense the material to be learned into highly organised, logical sequences, which require the trainee to respond. The ideal format provides for nearly instantaneous feedback that informs the trainee if his or her response is correct.Sensitivity training : also known as T Group Training is a type of program designed to help facilitate respect between groups that include people with different genders, religions, ages and races. The exact procedures can vary depending on the leader of the training, but typically involve lectures, discussions, and exercises to help participants understand and respect one another. The training can be implemented anywhere, but tends to be most common in workplaces and educational environments.

Executive Development; Executive development is a systematic process of training and growth by which individuals gain and apply knowledge, skills, insights and attitudes to manage work organisations effectivelyMethods of Development

The development of a manager’s abilities can take place on the job. The following are the various on-the-job techniques. Coaching: When a manager takes an active role in guiding other manager we refer to this activity as coaching. Just as track coaches observe, analyze and attempt to improve the performance of their athletes, “coaches” on the job can do the same. The effective coach, whether on the track or in the corporate hierarchy, gives guidance through direction, advice, criticism and suggestions in an attempt to aid the growth of the employee.Understudy Assignment: By understudy assignment potential managers are given the opportunity to relieve an experienced manager of his or her job and act as his or her substitute during the period. This label also describes permanent, ‘assistant to’ position as well as temporary opportunities to assist managers in completing their jobs. As staff assistant to a manager, the understudy gets the opportunity to learn the manager’s job. Job rotation: Job rotation can be either horizontal or vertical. Vertical rotation is nothing more than promoting a worker into a new position. Horizontal transfer can be understood as lateral transfer. Job rotation represents an excellent method for broadening the manager or potential manager, and for turning specialists into generalists. In

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addition to increasing the manager’s experience and allowing the manager to absorb new information, it can reduce boredom and stimulate the development of new ideas.Committee Assignment: Assignment to a committee can provide an opportunity for the employee to share in managerial decision making, to learn by watching others, and to investigate specific organisational problems. When committees are of an “ad hoc” or temporary nature, they often take on task force activities designed to delve into a particular problem, ascertain alternative solutions, and make a recommendation for implementing a solution. These temporary assignments can be both interesting and rewarding to employee’s growth.

Off-the-job development: There is a wealth of management development techniques that personnel can partake of the job. The following are the various off-the-job development methods.Sensitivity training: Sensitivity training in “encounter groups” became popular during 1950’s as a method of changing behaviour through group processes. Often referred to as laboratory training, it influences the participants through unstructured group interaction. Members are brought together in a free and open environment in which participants discuss themselves and their interactive process, loosely facilitated by a professional behavioural scientist. This profession then creates the opportunity for the participants to express their ideas, beliefs and attitudes. The objective of sensitivity training is to provide managers with increased awareness of their own behaviour and of how others perceive them, greater sensitivity to the behaviours of others and increased understanding of group processes.Lecturers: lectures offer an opportunity for managers or potential managers to acquire knowledge and develop their conceptual and analytical abilities. In large organisations these lectures may be offered in-house by the organisation itself and supported by outside college course work.Simulation exercises: simulations were introduced as a training technique. They are probably even more popular for management development. The following are the various simulation exercises used in the organisations.

Case study: case study approach to management was popularized at the Harvard Graduate School of Business. Taken from the actual experiences of organisations, these cases represent attempts to describe, as accurately as possible, real problems that managers have faced. Trainees study the cases to determine problems,

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analyze causes, develop alternative solutions, select what they believe to be the best solution and implement it.Simulated decision games and role playing exercises: these exercises put individuals in the role of acting out managerial problems. Business games, which are frequently played on an electronic computer that has been programmed for the particular purpose, provide opportunities for individuals to make decisions and to consider the implications of a decision on other segments of the organisation, with no adverse effect though the decision be a poor one.Role playing: Role playing allows the participants to act out problems and to deal with real people. Participants are assigned roles and are asked to react to one another as they would have to do in their managerial jobs. Role playing, when combined with modelling as presented in social learning, theory has become increasingly popular as a development technique.Incident Method: It deals with incidents prepared on the basis of actual situations which happened in different organisations. Each trainee in the training group is asked to study the incident and to make short term decisions.In-basket Training In basket training is a training method to acquaint employees about their job where a number of problems are kept in the "in basket” (usually kept on the desk of the employee). The worker has to look at the problems which could also be complaints from different employees and simultaneously deal with those problems. The problems that the employee solves, he keeps transferring it to the "out-basket".

Knowledge Management: Knowledge management is defined as the systematic process of finding, selecting, organising, distilling, and presenting information in a way that improves employees’ comprehension in a specific area of interest.Process of Knowledge Management:Identification: In this process, the knowledge that exists in various forms in, for instance, file, computers, conversations, minds of people, etc. is located. Elicitation: The next step is to retrieve the knowledge that is identified. Since knowledge can be elicited directly and indirectly from available sources, the elicitation methods also vary. Appropriate systems need to be created to gather information. Some of these systems are interview, case study, protocols, simulation, prototyping, observation and document analysis.

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Classification: The third step is to classify the knowledge. The aim of the process is put organisational knowledge into a form that makes it accessible to those who need it. Knowledge managers can categorize knowledge, describe it, map it, simulate it and embed it in rules. Each of these has its own value and can be applied singly or in combination.Storing: The gathered knowledge has to be stored in such a way that it is readily and easily accessible. Building a robust infrastructure will allow knowledge to be leveraged through systems and technology platforms. It includes common communication, infrastructure, easy accessibility to knowledge sources and having a common organisational vocabulary.Knowledge Worker: Knowledge workers basically use their intellect to transform ideas, products, services and processes. Their main value to an organisation is their ability to gather and analyse information and make decisions to benefit the company. Knowledge workers are also called as gold-collar workers, who are sometimes known by their professional speciality, for example lawyer, doctor, programmer, information system designer, librarian, teacher and scientist.

Modes of Knowledge Conversion: Socialization: Tacit knowledge to conversion takes place when tacit knowledge within one individual is shared by another through training. Combination : Explicit knowledge to explicit knowledge conversion takes place when an individual combines discrete pieces of explicit knowledge into a whole new concept. Externalization: Tacit knowledge to explicit knowledge conversion can be said to take place when an individual is able to articulate the foundations of his or her tacit knowledge. Internalization : Explicit knowledge to tacit knowledge conversion takes place when new explicit knowledge is shared throughout the firm and other members begin to use it to broaden, extend and reframe their own tacit knowledge. Types of Knowledge There are two kinds of knowledge- explicit knowledge and tacit knowledge. Explicit knowledge can be expressed in words and numbers and shared in the form of data, scientific formulae, specifications, manuals and the like. This kind of knowledge can be readily transmitted across individuals formally and systematically. Tacit knowledge, or the other hand, is highly personal and hard to formalize, making it difficult to communicate or share with others. Subjective insights, intuitions, and hunches fall into this category of knowledge. Difficult to verbalize, such

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tacit knowledge is deeply rooted in an individual’s actions and experience, as well as in the ideals, values, or emotions he or she embraces.

Socialization: From Tacit to Tacit

Tacit knowledge accumulation

Managers gather information from sales and production sites, share experiences with suppliers and customers and engage in dialogue with competitors.

Extra-firm social information collection (wandering outside)

Managers engage in bodily experience through management by wandering about and get ideas for corporate strategy from daily social life, interaction with external experts, and informal meetings with competitors.

Intra-firm social information collection (wandering inside)

Managers find new strategies and market opportunities by wandering inside the firm.

Transfer of tacit knowledge.

Managers create a work environment that allows peers to understand craftsmanship and expertise through practice and demonstrations by the master.

Externalization: From Tacit to Explicit (Creating Concepts)

Managers perform facilitation of creative and essential dialogue, the use of “adductive thinking”, the use of metaphors in dialogue for concept creation.

Combination: From Explicit to Explicit Acquisition and integration

Managers engage in planning strategies and operations, assembling internal and external existing data by using published literature, computer simulation and forecasting.

Synthesis and processing

Managers build and create manuals, documents, and databases on products and services and build up material by gathering management figures and /or technical information from all over the company.

Dissemination Managers engage in planning and in implementation of presentations to transmit newly created concepts.

Internalization: From Explicit to Tacit

Personal experience: real-world knowledge acquisition

Managers engage in “enactive liaisoning’ activities with functional dept. by using cross functional development teams. Search and share new values and thoughts: share and try to understand management visions and values through communications with fellow members in the organization.

Stimulation and experimentation; virtual-world knowledge acquisition

Managers engage in facilitating prototyping and benchmarking and facilitate the challenging spirit within the organization; managers form teams as a model and conduct experiments and share results with the entire dept.

Sources of Knowledge The two sources of Knowledge are: Internal sources emerging from the operations of the organization- internal sources include the organizational operations such as design,

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development, engineering, sales, marketing, manufacturing, customer contact, etc. This is the basic source of organizational information, which is controllable and can be easily canalized to KR. In the absence of any formal mechanism, this knowledge remains in the minds of organization members and usually, disappears with them. External sources such as Industry/Professional Associations, Commercial web sites etc.- there are many professional bodies such as IEEE, academic bodies such as universities, research institutions, industry associations such as NEMA, and commercial organizations. These sources usually make the knowledge available through web sites and sometimes through publications. Some of them could be free services and some could be for a fee. A well-designed KM should be able to take advantage of both the sources to create Knowledge Management Framework

Level 5 Corporate and Individual Performance

Level 4 Delivery of Knowledge

Level 3 Grouping of Knowledge

Level 2 Technical Infrastructure and Knowledge Resources

Level 1 Creation of Strategy for KMS

Knowledge Management ProgrammeA broad KM programme in an organization requires defining a

clear strategy based on the business needs of the organization; keeping the central KM unit small, which oversees overall implementation; making available a budget to allow communities to function; supporting the development of communities; keeping IT user friendly and responsive to its users needs; introducing new incentives to accelerate the shift towards a knowledge culture; and developing a set of metrics to measure progress.Steps in Knowledge Management Programme

1. Specifying the goals of the knowledge2. Identifying the knowledge being sought3. Collecting the required knowledge along with the sources

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4. Processing and developing the acquired knowledge for presentation purposes

5. Transferring the knowledge across individuals and groups within the organization

6. Applying the knowledge for value addition7. Storing the knowledge for timely availability8. Assessing the transferred and disseminated knowledge with the

help of feedback, for modifications and changes.Benefits of Knowledge Management Fostering innovation by encouraging free flow of ideas Improving customer service by streamlining response time Boosting revenues by getting products and services to market faster Enhancing employee retention rates by recognizing the value of

employees’ knowledge and rewarding them for it. Streamlining operations and reducing costs by eliminating

redundant or unnecessary processes. A creative approach to KM can result in improved efficiency, higher

productivity and increased revenues in practically any business function.

Self-DevelopmentSelf-Development is taking personal responsibility for one's own

learning and development through a process of assessment, reflection, and taking action. How to develop self

Assess your current skills and interest through paper-and-pencil career tests or through computer programs that analyze skills and interests.

Maintain a learning log or diary to help you analyze what you are learning from work experiences.

Write a personal vision and mission statement. Develop a personal development plan that identifies your

learning needs and goals. Find a mentor who can provide you with support, advice,

and assistance in your career direction. Become involved in professional organizations. Read professional journals and trade magazines to keep

current on the latest developments in your field.Personal CompetenciesI Self Awareness: It is the yardstick used to measure whether what we are doing or planning to do is worthwhile and our feelings are the measurement. It involves knowing one’s internal state, preferences,

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resources and intuitions. It involves how aware you are of our feelings, how you view yourself and what you are doing in life. The skills needed for this are

1.Emotional awareness is the ability to Recognize your feelings Differentiate between them Identify what emotion you are feeling and why Know what caused the feelings Use the value to guide decision making

2. Self Assessment: this involves knowing your inner resources, abilities and limitations. Here you aim to achieve the following

Be aware of your strengths and weaknesses Be reflective of things you do or happen to you Learn from your experience Be able to show a sense of humor and perspective about

yourself3. Self Confidence: It is very important for you to be self

confident i.e trusting or believing in your abilities, qualities and judgment. It is very essential for superior performance

II Self Regulation: this involves managing your internal states/emotions, impulses and resources. Therefore it is both trying not to be distressed, or stiffing an impulse and at times intentionally eliciting an emotion. Self regulation includes:

i. Self controlii. Trustworthinessiii. Conscientiousnessiv. Attitudev. Innovation

III Motivation

Individual Learning Strategies: Job Rotations Special Assignments Coaching Mentoring Individual Development Plan Manager as Teacher Learning Groups (Teams)

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Unit – IVCompensation/Pay: compensation is what employees receive in exchange for the services rendered in an organization. In other words it refers to all forms of financial returns and tangible benefits that employees receive as a part of the employment relationship. It plays a key role in recruitment, job performance and job satisfaction.Objectives of compensation planning: It ensures more difficult jobs are paid more It ensures that jobs are fairly compensated in comparison to similar

jobs in the labour market. It ensures equal pay for equal work, which is each individual’s pay is

fair in comparison to that of another person doing the same or a similar job.

It enables an organization to attract and retain qualified, competent individuals.

It motivates employee performance, fosters a feeling of equity, and provides direction to their efforts

It supports, communicates and reinforces an organisation’s culture, values and competitive strategy.

Its cost structure reflects the organisation’s ability to pay.Factors affecting Pay Levels:

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