Human resource management complete note

84
HRM The human resources of an organization consist of all people who perform its activities. Human resource management (HRM) is concerned with the personnel policies and managerial practices and systems that influence the workforce. In broader terms, all decisions that affect the workforce of the organization concern the HRM function. NIAZ SAHIL

Transcript of Human resource management complete note

Page 1: Human resource management  complete note

HRM

• The human resources of an organization consist of all people who perform its activities.

Human resource management (HRM) is concerned with the personnel policies and managerial practices and systems that influence the workforce. In broader terms, all decisions that affect the workforce of the organization concern the HRM function.

NIAZ SAHIL

Page 2: Human resource management  complete note

,

• According to Invancevich and Glueck, “HRM is concerned with the most effective use of people to achieve organizational and individual goals”.

• Human Resource Management outlines the importance of HRM and its different functions in an organization. Itexamines the various HR processes that are concerned with attracting, managing, motivating and developing employees for the benefit of the organization.

NIAZ SAHIL

Page 3: Human resource management  complete note

GOAL of HRM

• To meet the needs of the business and management (rather than just serve the interests of employees);

• - To link human resource strategies / policies to the business goals and objectives;

• - To find ways for human resources to "add value" to a business;

• - To help a business gain the commitment of employees to its values, goals and objectives

NIAZ SAHIL

Page 4: Human resource management  complete note

Nature of HRM

• Broader function : Human Resource Management is a comprehensive function because it is about managing people in the organization. It covers all types of people in the organization from workers till the top level management.

• People oriented : Human resource is the core of all the processes of human resource management. So HRM is the process which brings people and organizations together so that their goals can be achieved.

• Action oriented : Human resource management believes in taking actions in order to achieve individual and organizational goals rather than just keeping records and procedures.

NIAZ SAHIL

Page 5: Human resource management  complete note

Nature of HRM

• Development oriented: Development of employees is an essential function of human resource management in order to get maximum satisfaction from their work so that they give their best to the organization.

• Integrating Mechanism : HRM tries to build and maintain cordial relations between people working at various levels in the organization. Future oriented : HRM is very important activity which helps organization to achieve its objectives in future by providing well motivated and competent employees.

• Universal function• HRM can be applied in business as well as other

organizations organisations such as schools, colleges, hospital, religious organisations, etc.

NIAZ SAHIL

Page 6: Human resource management  complete note

As a Process : HRM is a process of four functions & FEATURES

Acquisition of human resources : This function includes Human Resource Planning, Recruitment, Selection, Placement and Induction of staff.• Development of human resources : This function includes

Training and Development and Career development. The knowledge, skills, attitudes and social behavious of the staff are developed.

• Motivation of human resources : This function includes giving recognition and rewards to the staff. It also includes Performance Appraisal and handling the problems of staff

•Maintenance of human resources : This function includes providing the best working conditions for employees. It also looks after the health and safety of the staff.

NIAZ SAHIL

Page 7: Human resource management  complete note

Scope of the HRM

• The scope of HRM is very immense. HRM plays a vital role of a worker from the time he enters into any organization till he leaves. HRM activities include –

• 1. Procurement : It the placement of right kind of personal to the right post. It includes, determination of manpower requirements. Job analysis, Nature and scope of requirement, employee selection and placement of employment.

• 2. Training and Development : Training and Development is a must in any organization. It prepares the worker to the actual situations in the orgnisation.

NIAZ SAHIL

Page 8: Human resource management  complete note

Scope of the HRM

• 3. Job Analysis and Job Description : Job analysis and job description involves the studies of job requirements of the enterprise and assignment of well defined functions to jobs so that qualified employees may be hired. It also forms the basis of wage determination.

• 4.Remuneration : Providing proper remuneration to the employees for the job done through job analysis and job description. It includes determining wage rates, incentives, wage payment, REWARDS and benefits and performance appraisal.

• 5. Welfare and Industrial Relations : It includes health and safety program, sanitary facilities, recreational facilities etc.

NIAZ SAHIL

Page 9: Human resource management  complete note

ROLE OF HRM

• The Human Resource Department deals with management of people within the organisation. There are a number of responsibilities that come with this title.

• First of all, the Department is responsible for hiring members of staff; this will involve attracting employees, keeping them in their positions and ensuring that they perform to expectation.

• Besides, the Human Resource Department also clarifies and sets day to day goals for the organisation.

• It is responsible for organisation of people in the entire Company and plans for future ventures and objectives involving people in the Company.

NIAZ SAHIL

Page 10: Human resource management  complete note

roles:

• Under the HR department’s remit are the following roles:

• The process of recruiting suitable candidates for the organisation

• Identifying and meeting the training needs of existing staff

• Ensuring employee welfare and employee relations are positive

• Ensure the working environment is safe for employees

• Raising awareness of current workplace legislation

NIAZ SAHIL

Page 11: Human resource management  complete note

The Human Resources Department also covers five

key roles.• Executive role – in this role the HR department are viewed as the

specialists in the areas that encompass Human Resources or people management.

• Audit role – in this capacity the HR department will check other departments and the organisation as a whole to ensure all HR policies such as Health & Safety, Training, Staff Appraisal etc are being carried out in accordance with the company’s HR policy.

• Facilitator role – in this role, the HR department help or facilitate other departments to achieve the goals or standards as laid out in the HR policies of the organisation. This will involve training being delivered for issues that arise in the areas relating to people management.

• Consultancy role – the HR department will advise managers on how to tackle specific managing people issues professionally.

• Service role – in this capacity the HR department is an information provider to raise awareness and inform departments and functional areas on changes in policy

NIAZ SAHIL

Page 12: Human resource management  complete note

Function of HRM • The main function of human resource management is

classified into two types: (a) Managerial Function; (b) Operative Function.

• Operative Function • Procurement – It involves attracting and employing individuals

with suitable knowledge, skills, • experience, and aptitude necessary to perform various jobs. • • Development – It aims to train and develop employees to

improve and update their knowledge and skills in order to help them perform better.

• • Compensation – It involves rewarding employees monetarily and through fringe benefits for their contributions to the organization.

• • Integration – It deals with employees as a social group; it contributes to the organization and enhances group interaction and communication.

• • Maintenance – It deals with maintaining employee safety and creating a sense of security among the employees.

NIAZ SAHIL

Page 13: Human resource management  complete note

2

NIAZ SAHIL

Page 14: Human resource management  complete note

Recruitment and selection•

Recruitment and selection is the process of identifying the need for a job, defining the requirements of the position and the job holder, advertising the position and choosing the most appropriate person for the job. Retention means ensuring that once the best person has been recruited, they stay with the business and are not “poached” by rival companies.

• Undertaking this process is one of the main objectives of management. Indeed, the success of any business depends to a large extent on the quality of its staff. Recruiting employees with the correct skills can add value to a business and recruiting workers at a wage or salary that the business can afford, will reduce costs.

• Employees should therefore be carefully selected, managed and retained, just like any other resource

NIAZ SAHIL

Page 15: Human resource management  complete note

Employees should therefore be carefully selected, managed and

retained, just like any other resource• .

NIAZ SAHIL

Page 16: Human resource management  complete note

Sources Of Recruitment

• Every organisation has the option of choosing the candidates for its recruitment processes from two kinds of sources: internal and external sources. The sources within the organisation itself (like transfer of employees from one department to other, promotions) to fill a position are known as the internal sources of recruitment. Recruitment candidates from all the other sources (like outsourcing agencies etc.) are known as the external sources of recruitment.

NIAZ SAHIL

Page 17: Human resource management  complete note

Recruitment , selection and induction

• Recruitment is the process of attracting the most suitable people for the position, selection is the process of choosing the best person for the position, and induction is introducing the person to the position

• This module describes a series of well-tested steps to help you identify the right person, to ensure he or she will fit well with your farm business, and to meet the various legal obligations of an employer.

• If recruitment is done well, the business benefits from happier and more productive people, reduced staff turnover, good working relationships and ultimately a more profitable farm.

NIAZ SAHIL

Page 18: Human resource management  complete note

Difference Between Recruitment And Selection

• Both recruitment and selection are the two phases of the employment process. The differences between the two are:

1. Recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organisation WHEREAS selection involves the series of steps by which the candidates are screened for choosing the most suitable persons for vacant posts.

2. The basic purpose of recruitments is to create a talent pool of candidates to enable the selection of best candidates for the organisation, by attracting more and more employees to apply in the organisation WHEREAS the basic purpose of selection process is to choose the right candidate to fill the various positions in the organization.

3. Recruitment is a positive process i.e. encouraging more and more employees to apply WHEREAS selection is a negative process as it involves rejection of the unsuitable candidates.

4. Recruitment is concerned with tapping the sources of human resources WHEREAS selection is concerned with selecting the most suitable candidate through various interviews and tests.

5. There is no contract of recruitment established in recruitment WHEREAS selection results in a contract of service between the employer and the selected employee.

NIAZ SAHIL

Page 19: Human resource management  complete note

objectives of Recruitment and selection

• Recruitment and selection objectives include a variety of components related to finding, hiring and retaining qualified employees. Clear definitions of the job qualifications allow easier identification of potential candidates. Recruitment consists of attracting capable individuals using methods such as outsourcing and the internet. Selection objectives consist of evaluation techniques such as interviews, background checks and competence tests.

NIAZ SAHIL

Page 20: Human resource management  complete note

the Employee selection Process

• Preliminary Interviews- It is used to eliminate those candidates who do not meet the minimum eligiblitycriteria laid down by the organization. The skills, academic and family background, competencies and interests of the candidate are examined during preliminary interview

• .• Application blanks- The candidates who clear the

preliminary interview are required to fill application blank. It contains data record of the candidates such as details about age, qualifications, reason for leaving previous job, experience, etc

NIAZ SAHIL

Page 21: Human resource management  complete note

the Employee selection Process

• Employment Interviews- It is a one to one interaction between the interviewer and the potential candidate. It is used to find whether the candidate is best suited for the required job or not.

• Medical examination- Medical tests are conducted to ensure physical fitness of the potential employee. It will decrease chances of employee absenteeism.

• Appointment Letter- A reference check is made about the candidate selected and then finally he is appointed by giving a formal appointment letter.

NIAZ SAHIL

Page 22: Human resource management  complete note

Manpower planning

• Manpower planning is the process of reviewing an organization’s employee, or manpower, needs and then selecting the best people for certain jobs. The end goal of successful manpower planning is a smoothly running operation, and the long-term result of manpower planning is a company able to achieve its goals, because its employees fill the right places within the organization. Manpower planning typically falls under the human resources department and it's not something that occurs quickly. Instead, it is a process thatrequires careful analysis and consideration to achieve the desired outcome.

NIAZ SAHIL

Page 23: Human resource management  complete note

Importance of Manpower Planning

Key to managerial functions- The four managerial functions, i.e., planning, organizing, directing and controlling are based upon the manpower. Human resources help in the implementation of all these managerial activities. Therefore, staffing becomes a key to all managerial functions.• Efficient utilization- Efficient management of personnels

becomes an important function in the industrialization world of today. Seting of large scale enterprises require management of large scale manpower. It can be effectively done through staffing function.

• Motivation- Staffing function not only includes putting right men on right job, but it also comprises of motivational programmes, i.e., incentive plans to be framed for further participation and employment of employees in a concern. Therefore, all types of incentive plans becomes an integral part of staffing function. NIAZ SAHIL

Page 24: Human resource management  complete note

Steps in Manpower Planning

NIAZ SAHIL

Steps in Manpower Planning1 Analysing the current manpower inventory- Before a manager makes forecast of future manpower, the current manpower status has to be analysed. For this the following things have to be noted-

Type of organizationNumber of departmentsNumber and quantity of such departmentsEmployees in these work units

Once these factors are registered by a manager, he goes for the future forecasting2 Making future manpower forecasts- Once the factors affecting the future manpower forecasts are known, planning can be done for the future manpower requirements in several work units

Page 25: Human resource management  complete note

Steps in Manpower Planning

• Developing employment programmes- Once the current inventory is compared with future forecasts, the employment programmes can be framed and developed accordingly, which will include recruitment, selection procedures and placement plans.

• Design training programmes- These will be based upon extent of diversification, expansion plans, development programmes,etc. Training programmesdepend upon the extent of improvement in technology and advancement to take place. It is also done to improve upon the skills, capabilities, knowledge of the workers.

NIAZ SAHIL

Page 26: Human resource management  complete note

Induction

• After a new employee is hired into an organization, it is necessary he or she be familiar to organization's philosophies, goals and objectives, policies, procedures, rules and regulations and practices. This orientation is called employee induction

• Induction can be defined as The HRM function that systematically and formally introduces new employees to the organization, the jobs, the work groups to which they will belong and the work environment where they will work.

NIAZ SAHIL

Page 27: Human resource management  complete note

Induction is designed to achieve following objectives:-

• Help the new employee overcome shyness and nervousness in meeting new people in a new environment.

• Give the new employee the necessary information such as the location of a cafe and other locations.

• Help the new employee build confidence in the organization.

• Help in reducing labor turnover and absenteeism.• Reduce confusion and develops healthy relations in the

organization.• Ensure that the new comer does not form false impressions

and develop a negative attitude towards the organization.• Develop among the new comers a sense of belonging and

loyalty to the organization

NIAZ SAHIL

Page 28: Human resource management  complete note

An induction programme consists primarily of three steps:

• General orientation by the staff: It gives necessary general information about the history and the operations of the firm. The purpose is to help an employee to build up some pride and interest in the organization.

• Specific orientation by the job supervisor: The employee is shown the department and his place of work; the location of facilities and is told about the organization’s specific practices and customs. The purpose is to enable the employee to adjust with his work and environment.

• Follow-up orientation by either the personnel department or the supervisor: This is conducted within one week to six months of the initial induction and by a foreman or a specialist. The purpose is to find out whether the employee is reasonably well satisfied with him. Through personal talks, guidance and counselling efforts are made to remove the difficulties experienced by the newcomeNIAZ SAHIL

Page 29: Human resource management  complete note

3 UNIT

NIAZ SAHIL

Page 30: Human resource management  complete note

Performance appraisal

• "Performance appraisal is the systematic description of an employee's job relevant strengths and weaknesses.“

•In a Performance appraisal, the employee's merits such as initiative, regularity, loyalty, personality, etc., are compared with others. Then each employee is rated or ranked. That is, he is given a particular rank such as First Rank, Second Rank, etc. So if an employee has the best attendance then he is given First Rank in attendance and so on.

NIAZ SAHIL

Page 31: Human resource management  complete note

Terms in Performance Appraisal

Terms involved in performance appraisal are:-

• Rater : The person who evaluates the employees is called the Rater or Appraiser.

• Ratee : The employee who is rated is called the Ratee.

• Rating : The process of performance appraisal is called Rating

NIAZ SAHIL

Page 32: Human resource management  complete note

Objectives Of Performance appraisal:

• To review the performance of the employees over a given period of time.

• To judge the gap between the actual and the desired performance.

• To help the management in exercising organizational control.• Helps to strengthen the relationship and communication between

superior – subordinates and management – employees.• To diagnose the strengths and weaknesses of the individuals so as

to identify the training and development needs of the future.• To provide feedback to the employees regarding their past

performance.• Provide information to assist in the other personal decisions in the

organization.• Provide clarity of the expectations and responsibilities of the

functions to be performed by the employees.

NIAZ SAHIL

Page 33: Human resource management  complete note

Limitations of Performance Appraisal

• 1. Halo Effect :The rater may base the full appraisal on the basis or one positive quality which was found out earlier

• 2. Problem of Leniency or Strictness :Many raters are too lenient (not strict) in their ratings. High scores may be given to all employees, even if they have no merit. Also a reverse situation may take place, where all employees are rated very strictly and very low scores are given.

• 3. Central Tendency•

Sometimes a rater gives only middle range scores to all individuals. Extremely high or low scores are avoided. This is called Central Tendency.

NIAZ SAHIL

Page 34: Human resource management  complete note

Limitations of Performance Appraisal

• 8. Horn Effect: Sometimes the raters may evaluate on the basis of one negative quality. This results in overall lower rating of the particular employee. For e.g. "He does not shave regularly. Therefore, he must be lazy at work."

• 10. Latest Behavior Effect: The rating is also influenced by the most recent behaviour. The rater may ignore an average behaviour during the full appraisal period

• 7. Evaluate performance not person” The rater should evaluate the performance, i.e. output, new ideas, extraordinary efforts, etc. and not the person. In reality, the person is evaluated and not his performance. It should be noted that failure is an event and a not a person.

NIAZ SAHIL

Page 35: Human resource management  complete note

Performance Appraisal Methods :• 1. Critical incident method

The critical incidents for performance appraisal is a method in which the manager writes down positive and negative performance behavior of employees throughout the performance period

2. Weighted checklist

This method describe a performance appraisal method where rater familiar with the jobs being evaluated prepared a large list of descriptive statements about effective and ineffective behavior on jobs

3. Paired comparison analysis

Paired comparison analysis is a good way of weighing up the relative importance of options. A range of plausible options is listed. Each option is compared against each of the other options. The results are tallied and the option with the highest score is the preferred option.

NIAZ SAHIL

Page 36: Human resource management  complete note

Performance Appraisal Methods :

• 4. Graphic rating scales

The Rating Scale is a form on which the manager simply checks off the employee’s level of performance. This is the oldest and most widely method used for performance appraisal.

5. Essay Evaluation

This method asked managers / supervisors to describe strengths and weaknesses of an employee’s behavior. Essay evaluation is a non-quantitative technique. This method usually use with the graphic rating scale method.

6. Behaviorally anchored rating scales

This method used to describe a performance rating that focused on specific behaviors or sets as indicators of effective or ineffective performance. It is a combination of the rating scale and critical incident techniques of employee performance evaluation.

NIAZ SAHIL

Page 37: Human resource management  complete note

Performance Appraisal Methods :

• 7. Performance ranking method

Ranking is a performance appraisal method that is used to evaluate employee performance from best to worst.

Manager will compare an employee to another employee, rather than comparing each one to a standard measurement.

8. Management By Objectives (MBO)

MBO is a process in which managers / employees set objectives for the employee, periodically evaluate the performance, and reward according to the result.

MBO focuses attention on what must be accomplished (goals) rather than how it is to be accomplished (methods)

9. 360 degree performance appraisal

360 Degree Feedback is a system or process in which employees receive confidential, anonymous feedback from the people who work around them.

NIAZ SAHIL

Page 38: Human resource management  complete note

Performance Appraisal Methods :

• 10.Forced ranking (forced distribution)

Forced ranking is a method of performance appraisal to rank employee but in order of forced distribution.

For example, the distribution requested with 10 or 20 percent in the top category, 70 or 80 percent in the middle, and 10 percent in the bottom.

11. Behavioral Observation Scales

Behavioral Observation Scales is frequency rating of critical incidents that worker has performed.

Most of the companies or organizations' follow 360 degree performance appraisal.

NIAZ SAHIL

Page 39: Human resource management  complete note

Ranking

• Employee ranking is an attempt to evaluate employees relative to each other, by using some criteria to identify the better performers versus the less better performance. The result, at least in theory, is a list of employees in some sort of ranked order.

• Rating - This involves rating an employee on a scale

which ranges from ‘poor’ to ‘excellent’ performance. The employee is assessed on this scale based on their performance or traits which are considered relevant to the job.

NIAZ SAHIL

Page 40: Human resource management  complete note

360 Degree Appraisal

• An appraisal made by top management, immediate superior, peers, subordinates, self and customers is called 360 Degree Appraisal. Here, the performance of the employee or manager is evaluated by six parties, including himself. So, he gets a feedback of his performance from everyone around him. This method is very reliable because evaluation is done by many different parties. These parties are in the best position to evaluate the employee or manager because they are continuously interacting and working with him. This method is mostly used to evaluate the performance of the employees. However, it is also used to evaluate other qualities such as talents, behaviour, values, ethical standards, tempers, loyalty, etc

NIAZ SAHIL

Page 41: Human resource management  complete note

• 360 degree appraisal was first developed by General Electric (GE), USA in 1992. Today it is used by all major organizations.

• In India, it is used

• by Crompton Greaves,

Wipro,

Infosys,

Reliance

Industries, etc

NIAZ SAHIL

Page 42: Human resource management  complete note

360 Degree Appraisal

• 1. Top Management :The top management normally evaluates the middle level managers. However, in a small organisation, they also evaluate the performance of the lower level managers and senior employees.

•2. Immediate Superior :The immediate superior is in a very good position to evaluate the performance of his subordinates. This is because they have direct and accurate information about the work performance of their subordinates.

•3. Peers / Co-workers : Peer or colleagues also evaluate each other's performance. They work continuously with each other, and they know each other's performance. Peer evaluation is used mostly in cases where team work is important. NIAZ SAHIL

Page 43: Human resource management  complete note

360 Degree Appraisal

• 4. Subordinates : The Subordinates can also evaluate the performance of his superior. Now-a-days students are asked to evaluate the performance of their teachers.

•5. Self Appraisal : In the self-appraisal, a person evaluates his own performance. He should be honest while evaluating himself. This results in self-development.

•6. Customers : Customers can also evaluate the performance of the employees who interacts with them. This evaluation is best because it is objective. It is also given a lot of importance because the customer is the most important person for the business. Organisations use customer appraisals to improve the strengths and remove the weaknesses of their employees.

NIAZ SAHIL

Page 44: Human resource management  complete note

360 Degree Appraisal

• In addition to these six parties, appraisal can also be done by an Appraisal Panel. This panel consists of 5 to 6 different types of members. Outside Consultants are also used for conducting appraisals. In some cases, Personnel Department also conducts an appraisal of employees and managers.

• 360 Degree Appraisal is becoming more popular because many parties are available for evaluation. Therefore, there is no "bias" or "halo effect". Hence the evaluation will become more realistic.

NIAZ SAHIL

Page 46: Human resource management  complete note

Remuneration program objectives —for the organisation

• Attract and keep the desired quality and mix of employees• Ensue equitable treatment• Motivate employees to improve their performance

continually and to strive to achieve the organisation’sstrategic business objectives

• Reinforce the organisation’s key values and desiredorganizational culture

• Drive and reinforce desired employee behaviour• Ensure remuneration is maintained at the desired

competitive level• Control remuneration costs• Ensure optimum value for each remuneration dollar spent• Comply with company requirements

NIAZ SAHIL

Page 47: Human resource management  complete note

Employee Remuneration Method1: Time Rate MethodUnder time rate system, remuneration is directly linked

with the time spent or devoted by an employee on the job. The employees are paid a fixed pre-decided amount hourly, daily, weekly or monthly irrespective of their output. It is a very simple method of remuneration. It leads to minimum wastage of resources and lesser chances of accidents. Time Rate method leads to quality output and this method is very beneficial to new employees as they can learn their work without any reduction in their salaries. This method encourages employees unity as employees of a particular group/cadre get equal salaries.

NIAZ SAHIL

Page 48: Human resource management  complete note

Employee Remuneration Method

2: Piece Rate Method: It is a method of compensation in which remuneration is paid on the basis of units or pieces produced by an employee. In this system emphasis is more on quantity output rather than quality output. Under this system the determination of employee cost per unit is not difficult because salaries differ with output. There is less supervision required under this method and hence the per unit cost of production is low. This system improves the morale of the employees as the salaries are directly related with their work efforts. There is greater work-efficiency in this method.

NIAZ SAHIL

Page 49: Human resource management  complete note

And also There are various others ways of rewarding employees such as:

• 1. Basic pay for standard hours• 2. Additional hours rewards.• 3. Commission• 4. Bonuses are another form of incentive to meet

particular targets.• 5. Performance related pay• 6. Profits related pay• 7. Payment by results• 8. Piece rate reward systems relate to paying

employees according to their level of output.

NIAZ SAHIL

Page 50: Human resource management  complete note

Components of remuneration

• 1 Wages and Salary

• :-Wages refer the hourly rates of pay, salary refers to the monthly rate pay, wages and salaries are subject to annual increments. They differ temp. To emp. Depend upon the nature of job , seniority and merits

• 2 : Incentives :-

• also called ‘payment by result’- paid in addition to wages and salaries. depend upon productivity, sale profit- there are

• A. individual incentives scheme

• B. group incentives scheme

NIAZ SAHIL

Page 51: Human resource management  complete note

Components of remuneration

• 3: Fringe benefits

• :- These include such employee benefits as provident fund, medical care, hospitalization, accident relief, health insurance, canteen uniform and like

• 4: Perquisites :

• - These are allowed to executives and include company car, club membership, paid holidays, furnished house and like

NIAZ SAHIL

Page 52: Human resource management  complete note

WHAT IS VARIABLE PAY?

• Variable pay, also known as performance pay, is used to recognise and reward employee contribution above and beyond their normal job requirements, towards company productivity, profitability, quality and the like. Sreeradha D Basu explains:

• Variable pay is often based on two main factors: your own performance and your company's performance.

NIAZ SAHIL

Page 53: Human resource management  complete note

Remuneration

InternalExternal

Labor Market

Cost of Living

Labor Unions

Government Legislations

Society

Economy

Business Strategy

Job Evaluation and

Performance Appraisal

The Employee

Remuneration – Influencing Factors

www.a2zmba.comNIAZ SAHIL

Page 54: Human resource management  complete note

Challenges of remuneration

• Skill Based Pay

• Pay Reviews

• Pay Secrecy

• Comparable worth

• International Pay

NIAZ SAHIL

Page 55: Human resource management  complete note

4th unit

training and development

NIAZ SAHIL

Page 56: Human resource management  complete note

training and development

• Training is the process of planned programs and procedures undertaken for the improvement of employee's performance in terms of his attitude, skills, knowledge and behavior. This training programs can significantly improve the overall performance of organization.

Main Aim

• Training Aims to improve employees current work skills and behavior

NIAZ SAHIL

Page 57: Human resource management  complete note

Training

• Training is normally viewed as a short process. It is applied to technical staff, lower, middle, senior level management. When applied to lower and middle management staff it is called as training and for senior level it is called managerial development program/executive development program/development program.

NIAZ SAHIL

Page 58: Human resource management  complete note

The Objectives of training and development

The principal objective of training and development division is to make sure the availability of a skilled and willing workforce to an organization. In addition to that, there are other objectives as follow : Individual Objectives – help employees in achieving their personal goals, which in turn, enhances the individual contribution to an organization.Organizational Objectives – assist the organization with its primary objective by bringing individual effectiveness.Functional Objectives – maintain the department’s contribution at a level suitable to the organization’s needs.Societal Objectives – ensure that an organization is ethically and socially responsible to the needs and challenges of the society.

TO INCREASE PRODUCTIVITYAn instructor can help employees increase their level of performance on their assignment. Increase in human performance leads to increase in the operational productivity and also the increase in the profit of the company.TO IMPROVE QUALITYBetter-trained workers are less likely to make operational mistakes. It can be in relationship to the company or in reference to the intangible organizational employment atmosphere. NIAZ SAHIL

Page 59: Human resource management  complete note

NIAZ SAHIL

Training:1.It's a short term process.2.Refers to instruction in technical and mechanical problems3.Targeted in most cases for non-managerial personnel4.Specific job related purpose5 Development is a never ending process

Development:1.It is a long term educational process.2.Refers to philosophical and theoretical educational concepts3.Managerial personnel4.General knowledge purpose5 Training methods are limited6 Training is one of the tools of development.

difference between training and development

Training is a process of learning a sequence of programmed behavior. It improves the employee's performance on the current job and prepares them for an intended job.Development not only improves job performance but also brings about the growth of the personality. Individuals not only mature regarding their potential capacities but also become better individuals.

Page 60: Human resource management  complete note

NIAZ SAHIL

PURPOSE OF TRAINING1.To improve Productivity: Training leads to increased operational productivity and increased company profit.2.To improve Quality: Better trained workers are less likely to make operational mistakes.3.To improve Organizational Climate: Training leads to improved production and product quality which enhances financial incentives. 4.To increase Health and Safety: Proper training prevents industrial accidents.5.Personal Growth: Training gives employees a wider awareness, an enlarged skill base and that leads to enhanced personal growth.

• PURPOSE OF DEVELOPMENT:Management development attempts to improve managerial performance by imparting1.Knowledge2.Changing attitudes3.Increasing skills

PURPOSE OF TRAINING and DEVELOPMENT

The major objective of development is managerial effectiveness through a planned and a deliberate process of learning. This provides for a planned growth of managers to meet the future organizational needs.

Page 61: Human resource management  complete note

Types Of Training Programs

• Basic literacy training is training for things like reading, writing and problem-solving skills.

• Interpersonal skills training is training on how to maintain positive relationships, communicate better, resolve conflicts and build trust.

• Technology Training

• Problem-solving training

• Diversity Or Sensitivity Training…

NIAZ SAHIL

Page 62: Human resource management  complete note

Training Process Or Steps Involved For Conducting Training

• A training is not a one sort affair; rather it is a step-by-step process that will completed only after successful completion of given sequential activities.

Training Process

• 1. Identifying Training Needs

• 2. Establish Specific Objectives

• 3. Select Appropriate Methods

• 4. Implement Programs

• 5. Evaluate Program

• 6. Feedback

NIAZ SAHIL

Page 63: Human resource management  complete note

training process

NIAZ SAHIL

Page 64: Human resource management  complete note

NIAZ SAHIL

1. Identifying Training NeedsTraining need is a difference between standard performance and actual performance.Hence, it tries to bridge the gap between standard performance and actual performance. The gap clearly underlines the need for training of employees. Hence, under this phase, the gap is identified in order to assess the training needs.

2. Establish Specific ObjectivesAfter the identification of training needs, the must crucial task is to determine the objectives of training. Hence, the primary purpose of training should focus to bridge the gap between standard performance and actual performance. This can be done through setting training objectives. Thus, basic objective of training is to bring proper match between man and the job.

Page 65: Human resource management  complete note

NIAZ SAHIL

3. Select Appropriate MethodsTraining methods are desired means of attaining training objectives. After the determination of training needs and specification of objectives, an appropriate training method is to be identified and selected to achieve the stated objectives. There are number of training methods available but their suitability is judged as per the need of organizational training needs.4. Implement ProgramsAfter the selection of an appropriate method, the actual functioning takes place. Under this step, the prepared plans and programs are implemented to get the desired output. Under it, employees are trained to develop for better performance of organizational activities.5. Evaluate ProgramIt consists of an evaluation of various aspects of training in order to know whether the training program was effective. In other words, it refers to the training utility in terms of effect of training on employes' performance.6. FeedbackFinally, a feedback mechanism is created in order to identify the weak areas in the training program and improve the same in future. For this purpose, information relating to class room, food, lodging etc. are obtained from participants. The obtained information, then, tabulated, evaluated, and analyzed in order to mark weak areas of training programs and for future improvements.

Page 66: Human resource management  complete note

Training Methods• A large variety of methods of training are used in

business. Even within one organization different methods are used for training different people. All the methods are divided into two classifications for:

NIAZ SAHIL

A. On-the-job Training Methods:1. Coaching2. Mentoring3. Job Rotation4. Job Instruction Technology5. Apprenticeship6. Understudy

B. Off-the-Job Training Methods:1. Lectures and Conferences2. Vestibule Training3. Simulation Exercises4. Sensitivity Training5. Transactional Training

Page 67: Human resource management  complete note

A. On-the-job training Methods:

• A. On-the-job training Methods:• Under these methods new or inexperienced

employees learn through observing peers or managers performing the job and trying to imitate their behavior. These methods do not cost much and are less disruptive as employees are always on the job, training is given on the same machines and experience would be on already approved standards, and above all the trainee is learning while earning. Some of the commonly used methods are:

NIAZ SAHIL

Page 68: Human resource management  complete note

NIAZ SAHIL

1. Coaching:Coaching is a one-to-one training. It helps in quickly identifying the weak areas and tries to focus on them. It also offers the benefit of transferring theory learning to practice. The biggest problem is that it perpetrates the existing practices and styles. In India most of the scooter mechanics are trained only through this method.2. Mentoring:The focus in this training is on the development of attitude. It is used for managerial employees. Mentoring is always done by a senior inside person. It is also one-to- one interaction, like coaching.3. Job Rotation:It is the process of training employees by rotating them through a series of related jobs. Rotation not only makes a person well acquainted with different jobs, but it also alleviates boredom and allows to develop rapport with a number of people. Rotation must be logical.

Page 69: Human resource management  complete note

NIAZ SAHIL

4. Job Instructional Technique (JIT):It is a Step by step (structured) on the job training method in which a suitable trainer (a) prepares a trainee with an overview of the job, its purpose, and the results desired, (b) demonstrates the task or the skill to the trainee, (c) allows the trainee to show the demonstration on his or her own, and (d) follows up to provide feedback and help. The trainees are presented the learning material in written or by learning machines through a series called ‘frames’. This method is a valuable tool for all educators (teachers and trainers). It helps us:a. To deliver step-by-step instructionb. To know when the learner has learnedc. To be due diligent (in many work-place environments)

Page 70: Human resource management  complete note

NIAZ SAHIL

5. Apprenticeship:Apprenticeship is a system of training a new generation of practitioners of a skill. This method of training is in vogue in those trades, crafts and technical fields in which a long period is required for gaining proficiency. The trainees serve as apprentices to experts for long periods. They have to work in direct association with and also under the direct supervision of their masters.6. Understudy:In this method, a superior gives training to a subordinate as his understudy like an assistant to a manager or director (in a film). The subordinate learns through experience and observation by participating in handling day to day problems. Basic purpose is to prepare subordinate for assuming the full responsibilities and duties.

Page 71: Human resource management  complete note

B. Off-the-job Training Methods:

In these methods, trainees have to leave their workplace and devote their entire time to the development objective. Off-the-job training

methods are conducted in separate from the job environment, study material is supplied, there is full concentration on learning rather than performing, and there is freedom of expression. Following training techniques are used off-the-job

NIAZ SAHIL

Page 72: Human resource management  complete note

NIAZ SAHIL

1. Lectures and Conferences:Lectures and conferences are the traditional and direct method of instruction. Every training programme starts with lecture and conference. It’s a verbal presentation for a large audience. However, the lectures have to be motivating and creating interest among trainees. The speaker must have considerable depth in the subject. In the colleges and universities, lectures and seminars are the most common methods used for training.2. Vestibule Training:Vestibule Training is a term for near-the-job training, as it offers access to something new (learning). In vestibule training, the workers are trained in a prototype environment on specific jobs in a special part of the plant.

An attempt is made to create working condition similar to the actual workshop conditions. After training workers in such condition, the trained workers may be put on similar jobs in the actual workshop.

Page 73: Human resource management  complete note

NIAZ SAHIL

3. Simulation Exercises:Simulation is any artificial environment exactly similar to the actual situation. There are four basic simulation techniques used for imparting training: management games, case study, role playing, and in-basket training.4. Sensitivity Training:Sensitivity training is also known as laboratory or T-group training. This training is about making people understand about themselves and others reasonably, which is done by developing in them social sensitivity and behavioral flexibility. It is ability of an individual to sense what others feel and think from their own point of view.5. Transactional Analysis:It provides trainees with a realistic and useful method for analyzing and understanding the behavior of others. In every social interaction, there is a motivation provided by one person and a reaction to that motivation given by another person.

Page 74: Human resource management  complete note

NIAZ SAHIL

EMPLOYEE ENGAGEMENT

Page 75: Human resource management  complete note

EMPLOYEE ENGAGEMENT

“A heightened emotional connection that an employee feels for his or her organization, that influences him or her to exert greater discretionary effort to his or her work".

“Employee engagement is the level of commitment and involvement an employee has towards their organization and its values.”

NIAZ SAHIL

Page 76: Human resource management  complete note

What is Employee Engagement ?

Its a step ahead than Employee Satisfaction:

• Belief in the organization

• Desire to work to make things better

• Understanding of business context and the ‘bigger picture’

• Respectful of and helpful to colleagues

• Willingness to ‘go the extra mile’

• Keeping up to date with developments in the field

NIAZ SAHIL

Page 77: Human resource management  complete note

Components of engagement

• Rational Engagement: the involvement, understanding and motivation an employee has in his/her job.

• Emotional Engagement: the attitudinal attachment an employee has to his/her company.

NIAZ SAHIL

Page 78: Human resource management  complete note

Categories of Employee Engagement

Engaged--"Engaged" employees are builders.

Not Engaged--Not-engaged employees tend to concentrate on tasks rather than the goals

Actively Disengaged--The "actively disengaged" employees are the "cave dwellers.

NIAZ SAHIL

Page 79: Human resource management  complete note

Measurement of Employee

Engagement

Step I: Listen.

Step II: Measure current level of employee

engagement.

Step III: - Identify the problem areas.

Step IV: Taking action to improve employee

engagement by acting upon the problem areas.

NIAZ SAHIL

Page 80: Human resource management  complete note

Model of Employee Engagement

• Say :Speak positively about the organization• Stay : Desire to be a member of the organization• Strive : Go beyond what is minimally required

NIAZ SAHIL

Page 81: Human resource management  complete note

Engagement activities

• “This is about how we create the conditions in which employees offer more of their capability and potential.” –David Macleod

1: Involve employees in your business planning process • Every 6 months, or even quarterly, present the most important

issues in your company and the actions made to address those issues. Involve your team in planning ahead, assessing opportunities and coming up with improvement ideas for your business strategy

• 2: Create a knowledge sharing system One of the biggest costs of a high employee turnover rate is the loss of essential information. Implement a mentorship program, pairing experienced employees with newly hired ones. Create a learning program template that they should follow, giving them enough space to test their own learning methods.

NIAZ SAHIL

Page 82: Human resource management  complete note

Engagement activities

3:Show them the money• Give your team a quick presentation of the financial state of your

company, every quarter or at the end of the year.

4: Encourage and provide learning opportunities• Create your own Academy, where employees can access the

knowledge and development opportunities that they need.

5: Create your own internal magazine• Create your internal employee-focused magazine with fun columns,

news, featured stories and opportunities. Who wouldn’t like to be featured on the cover as Employee of the Month?

6: I am my own hero” • Encourage individuals to design and own their career paths, instead

of relying on the company or on their manager.

NIAZ SAHIL

Page 83: Human resource management  complete note

Engagement activities

7:Celebrate people• Birthdays, promotions, retirements, newcomers welcoming, there are plenty of important

moments where people can be put at the front of the company. Show them they matter

8: Have team photos

• Have photos of your team on a wall, or frame

them around the office.

9: Raise salaries

10: Celebrate achievements

11: Show respect

12:Make sure that people have all the resources they need

13: Build long-term engagement

14: Make sure that people have all the resources they need

15. Empower your employees

NIAZ SAHIL