MB0043 Set1

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Subject: MB0043 Human Resource Management

Assignment No: Set 1

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Q.1 Trace the phases of evolution of human resource management.

Answer:

The historical back ground to the management techniques of human resources are in vogue since ancient times. It’s only in the past 100 odd years that the technique and study of human behaviour at work has become formal and structured with certain basic practices established as core and a host of other practices left to each organization to design and implement as per their individual business driven practices.

As per Fisher, Schonfeldt and Shaw, in their book titled Human Resources Management, they have characterized the history of HRM as having evolved through four broad phases, the Craft system, the scientific system, the human relations approach and the prevalent organizational science- human resources approach.

The Craft system refers to early trends noticed in Egypt and Babylon, where skill based training was provided to people to ensure a steady flow of craftsmen required to build huge monuments. By the 13th century, subsequently the trend was noticed in Europe and later craft guilds evolved to ensure not only the skill acquisition but regulate the conditions of employment, level of skill and improve production techniques.

The Scientific Management approach was a key part of the industrial revolution typical of the nineteenth and early twentieth century. It was instilled in the principles of mass production and organization of work- simple work skills and supervisory/managerial skills. This rapid emerged as the assembly line approach to management workflow, which later Fredick Taylor pioneered based on the philosophy that employees wanted to be used efficiently and money being the primary motivator. Over a period of time this was proved wrong as employee dissent grew and union issued surfaced. It was during this phase that employee welfare as a key HR practice emerged which redressed employee issues like recreational facilities, medical program and employee grievance system.

Evolution of Personnel management started in 19th century at that time there was a boom in industrialization which leads to increase in franchising and influence of trade unions and harshness of industrial condition called for the better of industrial condition. There was no department as such for taking care of above problem only welfare officers came into being to take care of above situation. These welfare officers were only women’s who take care of protectionism of women and girls because they feel it as worthy if women employee are sick they visit their home give food accommodation give moral welfare. As the role of women increasing like they were getting employed in modern industries where their work is packing assembly or other routine job so the quality required by these women employee increased so

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these welfare officer who were women their responsibility also increased that is to recruitment training development.

But ambiguity has been increased due to increased in production and also increased in paternalistic behavior relationship between employer and employee and also aiming at moral protection of women and girls and also side by side the aim of achieving economies of scale is also increased like achieving higher output by minimizing cost by resolving grievances control of sickness these leads to mixed aim of achieving organizational objective in order to achieve but at that time there was only a handful of welfare officer was their they wanted to improve the condition of working of women in 1900 there were only few welfare officer was their but in 1913 number of welfare officer has been increased to take care of the situation.

GROWTH IN PERSONNEL MANAGEMENT 1914-39

The exact growth of personnel management started during First World War because the number of munitions manufactured at a large scale so the number of employees needed to manufacture increased on the other hand the welfare officer also increased by 1300 to take care of employees it also sought the supply of labor to munitions factories as the supply of welfare officer made mandatory by government.

During war women recruited at a large scale to fill the gap of men who left the factories to joint war which in turn leads to dispute labour union to employ unskilled women

The title labour manager or employment manager came in the yeat 1920 in engineering industry and other industries where the factories was very huge to handle absence, recruitment, queries over business and so on.

Companies started merger and acquisition as strategy to grow in the mid of 19th century due to large number of employees employed they created their own specialist personnel department to unify the different policies and manage absence and recruitment with the objective of improving productivity. But this department is mainly concerned with hourly paid workers. As personnel management exist only in the emerging companies like plastic, chemicals and multiple retail. But during 1930’s the economy started to grow at a rapid pace due to this big corporation came in to existence they feel to improve the value of employee benefits like different kinds of allowances as a measure of retaining motivating employee.

SECOND WORLD WAR LEADS TO IMPROVEMENT IN PERSONNEL MANAGEMENT.

Second World War increased the importance of having personnel department because of producing large war materials the ministry of labour and national services insisted to combine both personnel department and welfare officer work on a full time basis. Again in second world

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war the number of women employees is more to fill the gap left by men who join the battle field again re-training proper recruitment taken place government saw the there is a huge need to have personnel department to take care of all employees in well manner.

INDUSTRIAL REVOLUTION ERA

As the industrial revolution take place simultaneously the factory system came in to being that leads increase in working rules and regulation to large number to employees increase in the hierarchical structure also increased in working hours but decrease in pay bad working condition, social distance between employee and employer has increased, increased bureaucratization all these factor results in increasing monotony boredom job displacement impersonality due to these factor personnel management got higher attention.

1945 – 1979 STARTED COLLECTIVE BARGAINING POWER AND INDUSTRIAL RELATION HAVE PRIMACY ROLE TO PLAY.

As in the Second World War the term employment manager started to take care of women employees the combination of both welfare officers and employment manager leads to personnel management. Though in the war times the productivity increased due to number of employment policies undertaken but the role of personnel management during war time was small that to implement the rules demanded to produce large scale goods but it was not focusing on other aspect of managing human resource that is by motivation, promotion, increasing morale, performance appraisal etc but the role of negotiation of union has gain important role.

But there is an increasing in the bargaining between employer and unions during pre world war. During there is an enormous growth in an engineering industry but in 1950,s and 60,s there was an enormous growth in other type of industry which leads to the increasing the role of personnel management at same time large companies wanted to develop their own employment policies which suites to their company which leads to improve emerging new aspect in personnel management.

The bargaining power of unions has increases which resulted in unnecessary official and unofficial strikes which were damaging the economy particularly manufacturing industry in UK the strikes were in huge number and it became famous in maintain poor industrial relation and the number of working days lost due to strike which resulted in closer of number of factories. The situation becoming worse and worse it was critical for both employers and unions due to this reason personnel manager was blaming for lacking of negotiation skill to resolve these situation and plan for industrial relationship strategies because of these deficiencies personnel management was not given high priority these leads to management to think something higher profile which have all the skill to negotiate to motivate.

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In the year mid of 1960’s organization started giving much importance to employ the personnel specialist to perform different activities in order to make the employees as a whole package to perform in the organization. the world is becoming global village and labour started moving from one country to another this resulted in managing the workforce diversity this become the challenge for the personnel management to manage these workforce diversity.

In the year 1960 Even the domestic rules and regulation was increased towards employability the new legislation was introduced towards employment, training, and redundancy payments, equal pay opportunities, employment protection. The year 1960 was high inflation so there was a regulation on wages paid by the employer personnel manager has to understand this new aspect of regulation regarding inflation to develop policies to implement new measures which aligned with employee’s satisfaction level.

Improvement in selection training appraisal and new management techniques has been expanded to improve the performance of the employees which demands to improve the profile of personnel management.

Personnel management perform different function such as

• Collective bargaining role

• Implementation of legislation role

• Bureaucratic role

• Social conscience of the business role

• Growing performance improvement role

RISING ROLE OF HRM

The role of HRM has gain more important in the year 1980. There was a complete shift from post war collectivism and towards individualism and changes in structure of economy. Some people thought that HRM was evolved to solve union problem as there is an demand to take care of employees of an organization as a whole it performs different function.

During 1990,s the success of large Japanese corporation in export market like automobiles and electronic goods took surprise to many western companies but studies says that the success of these Japanese firm is due to effective management of workforce the studies also shows that the workforce of Japanese firm are more productive and efficient than western firm. The key to success of Japanese companies like Toyota Matsushita are the practice adopted for efficient management of workforce as these companies started opening its manufacturing plant

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in western countries the practice of these companies also started practiced by western companies. The practice include are:

• Strict and rigorous selection and recruitment

• High level of training, especially induction training and on the job training

• Team working

• Multitasking

• Better management-worker communications

• Use of quality circles and an emphasis on right first time quality

• Encouragement of employee suggestions and innovation

• Single status symbols such as common canteens and corporate uniforms

The reason of above practice is create an organization atmosphere where workers can grow and identify their own success and goal which match with organization.

Q.2 Explain the various techniques and methods used in selecting employees.

Answer:

There is no shortcut to fair and accurate evaluation of a candidates. Organization are constantly evaluating the selections tools they use to hire and keep innovating to ensure they hire quality candidate.

The following are popular methods commonly used:

(a) Initial or preliminary interview. Initial interview is usually quite short and has as its object of elimination of the obviously unqualified. In many instance it is an over- telephone/ short face to face interview conducted at desk. The facts and impressions collected are of the type generally obtained in an initial interview.

(b) Application blank or blanks. An application blank is a traditional, widely accepted template for getting information from a prospective applicant. This enables the recruiter to qualify the candidate to the next level in the selection process and is used extensively subsequently during the selection process.

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(c) Check or reference. The use of references is common in most selection procedures. It involves minimum of effort and time/money., The objective is to obtain evaluation of prior employers and profession colleagues, who have known the candidate in a profession capacity.

(d) Skill/ Psychological test. The next step in the procedures outlined above is that of testing. The use of tests is common and most popular in the lower levels in an organization. It serves as a excellent qualifying criteria and in jobs that are dependent on a skill or a specific competency it is very useful. Most organization do not use psychological test.

(e) Interviewing. Interviewing is probably the most widely used single method of selection. A substantial amount of subjectivity and therefore, unreliability is to be expected from interviewing when used as a tool of evaluation. The interview consists of interaction between interviewer and applicant.

(f) Approval by the manager. Following the outlined procedure, we should now be of the opinion that a candidate who has successfully completed all steps so far should be hired. In executing the recruitment unit screening functions, the emphasis tends to be more on formal qualification and general suitability. When the manager takes over the emphasis tends to switch toward more specifically job orientated worker characteristics such as training and relevant past experience.

(g) Medical examination. The medical examination is an employment step found in most businesses. It can vary from a very comprehensive examination and matching of an applicant’s physical capabilities to job requirements to a simple check of general physical appearance and well-beng.

(h) Induction or orientation. Induction is concerned with introducing or orienting a new employee to the organization. Organization could have induction programs of duration of 1-3 days and even up to 1/3/6 months.

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Q.3 A company is being set up by a group of 3 professionals. The business objective is to sell mobile phones of a Chinese company which has come up with an inexpensive range of handset ranging from Rs.1200 to Rs.7000. They need to submit a human resource plan to their investors. Explain the process of Human Resource Planning system for this company, which covers all important steps needed for HRP.

Answer:

The processes of Human Resources Planning system for this company are listed below:

Step 1: Forecasting manpower requirements, either by using mathematical tools to project trends in the economic environment and development in industry, or in by using simple judgmental estimates based on the specific future business plans of the company.

Step 2: Creating an inventory of present manpower resources and assessing the extent to which these resources are employed/ optimally.

Step 3: Identifying manpower problems by projecting present resources in to the future to determine their adequacy, both quantitatively and qualitatively and

Step 4: Planning the necessary programs of requirement selection, training development, utilization, transfer, promotion, motivation and compensation to ensure that future manpower requirements are properly met.

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Q.4 Explain Thayer and McGhee ‘Assessment of training requirement’ model.

Answer:

Organizational analysis determines where training emphasis should be placed within the organization and is based on the objectives of an organization. Concerning what one should do in analysing an organization, McGhee and Thayer (1961) suggest four steps:

1. Stating the goals and objectives of an organization

2. Analysing the human resources

3. Analysing efficiency indices

4. Analysing the organizational climate

The results of these analyses are then compared with the objectives of the organization. These comparisons point to specific areas in which training is needed.

Individual analysis aims at identifying specific training needs for an individual or group of employees so that training can be tailored to their needs. This analysis centers on individuals and their specific needs concerning the skills, knowledge, or attitudes they must develop to perform their assigned tasks. The possible methods or techniques for individual analysis include performance appraisal, interviews, questionnaires, tests, analysis of behavior, informal talks, checklist, counseling, critical incidents, recording, surveys, and observations.

Group analysis includes a number of techniques in which a group of well-informed employees discuss different aspects of the organization, the employees, and the tasks to identify the major discrepancies in achieving predetermined targets for each of them with a view to assessing training needs as distinguished from other necessary changes for removing these discrepancies. The major techniques which are used in this approach are brainstorming, buzzing, cardsorts, advisory committee, conferences, problem clinic, role playing, simulation, task forces, workshops, and so forth.

Many problems exist in an organization, but some problems cannot be solved by training. After a preliminary needs analysis, which gives probable causes and solutions, the results should be verified with the concerned personnel of the organization to determine whether training is an appropriate action to solve that problem.

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Curriculum Development: This is the most important part in a training programme after a need for training has been identified. The curriculum specifies what will be taught and how it will be taught. It provides the framework and foundation of training. The first phase of curriculum development determines what will be taught, that is, the training content.

Once training needs have been identified and training activities have been decided as part of the solution, a needs analysis should be done to determine knowledge, skills, and attitude requirements and performance deficiencies. The needs analysis procedure involves breaking down the "training problem" into its basic parts in different successive phases to identify and understand the important components in each phase. Ultimately it leads to identifying and understanding the training content. The training needs analysis process can be divided into three distinct analytical phases: job analysis, task analysis, and knowledge and skill-gap analysis.

Job analysis: Job analysis is a method of determining major areas of tasks where training may be needed (see JA Worksheet). It involves the dissecting of a job into its component events or parts. This analysis allows a trainer to better understand what an employee does in an organization. Job analysis involves the "task identification" of a particular job (Wentling, 1992). The techniques used in task identification include job questionnaire, interview, participant observation, work sampling, job audit, and small-group discussion. The following steps may provide a guide for completion of job analysis:

1. Identify the job that is to be the subject of the analysis. This involves defining the focal point for the job analysis. It may include the entire job of a group of employees or only a specific segment of their job.

2. Prepare a list of tasks which can be done following different approaches and methods. Four approaches can be used to identify job tasks: (1) experts identify and list critical tasks, (2) observations and interviews are conducted with employees, (3) meetings are held with group representatives, and (4) a tentative list of task is reviewed by employees and their supervisors.

3. Verify the tasks. The draft list of tasks should be verified by experts, workers, and supervisors in the analysis process. This can be done through expert review, small-group discussions, and inter views. When the tasks are verified, a final list of job tasks is prepared.

4. Determine the frequency. The workers and super visors can fill in a form indicating how frequently each task in a job is performed. Different scales such as "seldom," "occasionally," "weekly to monthly," "daily to weekly" and "daily" can be used to quantify the intensity of a task accomplished.

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5. Determine the importance. Not all tasks are equally important to a job. An occasionally performed task may be very important. Therefore, a relative importance rating is useful along with frequency rating. A scale such as "marginally important," "moderately important," and "extremely important" may be used to determine the relative importance of the job tasks.

6. Estimate the learning difficulty. An estimate of learning difficulty is another dimension of the job-task analysis. It shows the trainer the employees' perception of difficulty, which may be different from the trainer's own perception. A scale such as "easy," "moderately difficult," "very difficult," and "extremely difficult" may be used to determine the difficulty indices of job tasks.

7. Calculate the total score. This can be done by simply adding the scores for frequency, importance, and learning difficulty for each task. The column for total score in a worksheet indicates the priority tasks for training if these are training problems.

8. Review the findings. The results of the job-task analysis should be discussed with significant people in the training system, including government leaders, programme directors, and others interested in related training.

Q.5 Write short notes on: Succession Planning Career Planning(6.3 and 6.5)

Answer:

Succession Planning: Succession planning involves having senior executive periodically review their top executives and those in the next- lower level to determine several backups for each senior or key position in the firm. It takes years of grooming to develop effective senior managers and this is a talent challenge that all organizations face today. Traditionally succession planning was restricted to senior – level management positions and this was either an informal or formal process.

Over the years succession planning has established itself as a key HR activity in most organizations with formal processes that ensure it is reviewed regularly and scientifically. In smaller organization it is yet an informal succession planning process where the individual manager identifies and grooms his or her own successor.

Succession planning involves an examination of strategic plans and HR forecasts for all identified key positions in an organizations. It includes positions that are critical for the business and for its continuity and not just the senior level positions. It includes a review of the data on all potential candidates who might be able to move to these positions either right-away or in the

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near future. The objective is to identify employees with potential and increases managerial depth as well as promoting from within the company. This is unusually and exercise undertaken one year and usually runs parallel to the performance appraisal process. This exercise is carried out by the senior management team of the unit/ subsidiary and facilitated by the HR team.

All member’s voice opinions about the potential candidates that are proposed and disagreements are openly debated, before the final document is signed off.

A succession planning exercise concludes with an organization chart of all key positions with listing of possible potential candidates and the readiness rating for each potential candidate. Other component include performance appraisal of these employees, and individual development plans and management development programs. Additionally the factors rated as most important in selecting specific internal/ external potential candidates for grooming includes: past job performance, past positions or prior employment perceived credibility, area of expertise and career paths and value and attitudes.

Career Planning: Career is defined as “individually perceived sequence of attitudes and behaviour work- related activities and experiences over the span of a person’s life. The dynamics of career development in an organizational context has two dimensions

a. How individuals plan and implement their own career goals.

b. How organizations design and implement their career development programs

Career planning is a deliberate attempt by an individual to become more aware of their skills, interests values, opportunities and constraints. It requires an individual thinking to identify career-related goals and establishing plans towards achieving those goals. Often it is a self – driven process, which every professional (irrespective of the nature of employment) spends some time to do well on discuss it with peers or superiors and frame it. It is also viewed from time to time that the individual looks for possible new career options. Having a career plan builds a commitment towards achieving it and is viewed as an excellent personal goal- setting exercise for self motivation.

A variety of career development activities and tools exists for use in organizations. HR managers should be familiar with these components because the managers often serve as internal consultants responsible for designing the career planning tools

Some of the more popular ones include:

a) Self assessment tools

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b) Individual Counseling

c) Information services.

d) Initial employment programs.

e) Organizational Assessment programs.

f) Development program

Q.6 Discuss Individual evaluation methods used for performance appraisal.

Answer:

There exists five ways to evaluate an employee individually. Here the employee is evaluated one at a time with directly comparing him/her with other employees.

Graphic rating scale: The most widely used performance rating technique is a graphic rating scale. In this technique, the evaluator is presented with a list of assessment characteristics and asked to assign a number rating to the employee on each of the characteristics listed. The number of characteristics might vary from a few to several dozen. It aims to measure the quality of performance and ability to do the present job.

Forced choice:The forced- choice method of evaluation was developed because other method used at the time led to a preponderance of higher rating, which made promotion decision difficult. In forced choice, the evaluator must choose from a set of descriptive statements about the employee. The two- three- , or four- statement items are grouped in a way that the evaluator cannot easily judge which statements apply to the most effective employee.

Typically, HR specialists/consultants prepare the items for the form, and managers or other hR specialists rate the items for applicability; that is , they determine which statements describe effective and ineffective behaviour.

Essay evaluation: In the essay technique of evaluation, the evaluator is asked to describe the strong and weak aspects of the employee’s behaviour. In very little organization, the essay technique is the only one used; in others, the essay is combined with another form, such as a graphic rating scale. The essay summarizes and elaborates on some of the ratings, or discusses added dimensions which are not captured by the scale. Wherever it is used the essay, the can either be open ended or as in most cases there are guidelines on the topics to be covered, the purpose of the essay, and so on.

Management by objectives; One of the most popular individual evaluation methods in use today is Management by Objective (MBO). In this system, the manager and employee to be

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evaluated jointly set objectives/ targets in advance for the employee to try to achieve during a specified period. And usually the objectives framed are quantitative nature. MBO is very common industry practice.

Critical incident technique: In this technique, HR specialists and operating managers prepare lists of statements of very effective and very ineffective behaviour for an employee. These are the critical incidents. The HR specialists combine these statements into categories, which vary with the job.

Checklists and weighted checklists. Another type of individual evaluation method is the checklist. In its simplest form, the checklist is a set of objective or descriptive statement. If the manager believes that the employee possesses the trait listed, the manager checks the items; if not it is left blank. A rating score from the checklist equals the number of checks.

Behaviorally anchored rating scales: The most prevalent technique which is a variation to the critical incident approach is the behaviorally anchored rating scales (BARS). This techniques is also called the behavioral expectation scale (BES)

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