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Management of Human Resources

MS 02

Dr. Onkar Nath

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UNIT 1The changing Social Context and Emerging Issues

HRM is concerned with the most effective use of people

to achieve organizational and individual goals. It is a way

of managing people at work, so that they give their best

to the organization.

A new mandate for Human resources

HR should become partnerBecome an expert

Become a champion for employees

Become agent of continuous transformation

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Why HRM Matters now more than ever

Globalization

Profitability through growthTechnology

Intellectual capital

Change, change and more change

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The Changing Role of HRM

Managing human resources in the emerging scenario

Borderless worldDiversity

Knowledge power

Human resources are heterogeneous

Human beings behave in widely different and complicatedways

Modern employees are better educated

A human being himself determines what he contributes

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The Challenges of Human Resources Management

Pervasive forceAction oriented

Individually oriented

People oriented

Development oriented

Integrating mechanism

Comprehensive function

Auxiliary service

Inter-disciplinary function

Continuous function

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Managing Talent: the new avatar of HR manager

Talent Management: new vistas

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HRM in India

The Dynamics of Personnel/HRM

Changing role of HR in view of social factors

External factors Internal Factors

Technological factors Mission

Economic challenges Policies

Political factors Organizational culture

Social factors Organizational structure

Local and Governmentalissues HR systems

Unions

Employers demands

Workforce diversity

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Young Old

Inexperienced Difficult

Impulsive Traditional

Inpatient Go by the rule book

Unethical/ not alwaysethically conscious

Workaholic

Selfish Inflexible

Manipulative Prefer safe, steady work

environments, less risky

activities

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Women at work

Womens emancipation

Growing economic needs

Greater equality of sexes

Increased literacy rate

Suitability for certain soft jobs

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Changes in Employee Role and their Values

Level of education

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Faddism in western management and its

implications for Indian Managers

Guidelines for better HRM

Develop People

Grooming Future Talent

Employees DevelopmentBuild Employee Communities

Turn Managers into Coaches

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UNIT 2

The Concepts and Functions of HRM

Concepts of HRM

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Traditional Personnel Function Human Resource Development

TPF is an independent function HRD is a sub-system of a larger system

There are several sub-functions under TPF HRD is an organic whole: All the parts areinterlinked

The main task is to respond effectively to

demands

The main task is to develop enabling

capabilities

Main responsibility for their personnel

matters

All managers share the responsibility of

HR functions

The main responsibilities relate to salary

and job administration and management of

people and their development

The responsibilities relate to HRS, people,

systems, and the process of the total

organization

The attention is on personnel

administration and management

The major attention is on developing

people and their competencies

Personnel system and procedures should

be designed to achieve maximum

efficiency

HR systems and procedures should be

designed on the basis of process values to

reduce human wastage

People in the organization are motivated

mainly by salary and rewards

People are primarily motivated by

challenges and opportunities for

development and creativity

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HRM Objectives and Functions

HRM Objectives Supporting Functions

Societal Objectives Legal compliance, Benefits,Union-Management relations

Organizational Objectives HR planning, Employeerelations, Selection, Training and

Development, Appraisal,Placement, Assessment

Functional Objectives Appraisal, Placement,Assessment

Personal Objectives Training and Development,Appraisal, Placement,Compensation, Assessment

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UNIT 3

Structuring HRM

Evolution of HRM

The commodity concept

The factor of production concept

The paternalistic concept

The humanitarian conceptThe behavioural human resource concept

The emerging concept

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Importance of HRM

Significance for an Enterprise

Professional significanceSocial significance

National significance

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Scope of HRM

The labour or Personnel aspect

The welfare aspectThe industrial relations aspect

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Perspective of HRM

Historical perspective on HRM

Recent trends

Environmental perspective

Organizations as Open Systems

Buffering Strategies as an Organizational response

Strategic perspective on HRM

Political perspective on HRMInterpersonal perspective on HRM

Transactional scope

Transactional representation

Transactional processEvaluation perspective on HRM

Personal Audits and Utility Analysis

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Components of HRM

HR Organization

HR PlanningHR Systems

Recruitment management

Information management

Training managementPerformance management

Reward management

Career management

Health and safety management

Culture management

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Human Resource Development : HRD as

systems depends upon

The work it self which generates a higher degree ofresponsibility for the employees

The individuals personal and professional growth

The improved quality output as a result of increased

responsibilityThe organization as an open system

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Human Resource Relationship

Human Resource Utilisation

Human Resource AccountingHuman resource Audit

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UNIT 4

Job Analysis and Job Design

What it takes to do a job

What an individual brings to the job, and

What the gaps (learning and development needs) are

Purpose of Job Analysis

The focus of job analysis: Positions and Jobs

The importance of job analysis

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Methods of job analysis

Functional job analysis

Critical incident technique

Job elements approach

Barely acceptableSuperior

Trouble

PracticalPosition Analysis Questionnaire (PAQ)

Physical abilities requirements approach

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Job description and job specification

Recruitment and selection

Training

Job evaluation

Performance appraisalOrganization planning

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Techniques of collecting information for job

analysis

Questionnaire

Interview

Effects of work flow on people

Initiation of action

Systems design for better teamwork

Control of red tape

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Different work systems

Product and functional work systems

Labour pools

Assembly lines

The current picture

The single-job competency approach

The multiple job approach

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UNIT 5

Human Resource Planning

Objective of HRP

Ensure optimum utilization of human resources currently

employed

Assess or forecast future requirementsCope up with changing scenario

Attaching with business plans of organization

Anticipate redundanciesProvide basis for human resources development (HRD),

and

Assist in productivity bargaining

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Benefits of HRP

Create reservoir of talent

Preparation for future HR needs

Promote employees in a systematic manner

Provide basis for HRD

Help in career and succession planning

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Need for HRP at Macro level

Employment-unemployment situation

Technological changes

Organizational changes

Demographic changes

Skill shortages

Governmental influences

Legislative controls

Impact or pressure groups

Systems concept

Lead time

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Levels of HRP

National level

Sector levels

Industry level

Unit level

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Process of HRP

Analyzing organizational plans

Human resource demand forecasting

Demand forecast

Manpower gaps

Supply forecast

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Techniques of HR demand forecast

Managerial judgment

Work-study method

Ratio-trend analysis

Mathematical models

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Factors affecting HR demand forecasting

Employment trends

Replacement needs

Productivity

Absenteeism, and

Expansion and growth

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Problems in HRP process

Inaccuracy

Employee resistance

Uncertainties

Inefficient information system

Time and expense

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Guidelines for making HRP effective

Tailormade

Appropriate time

Adequate organization

Top management support

Participation

Information system

Balanced focus

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UNIT 6

Attracting the Talent: Recruitment, Selection,Outsourcing

The process of Recruitment

Preparation for recruitment

Physical specifications

Mental specifications

Emotional and social specifications

Behavioral specifications

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Sources of Manpower

Internal sources

External sources

It should have dependencies on:

Effect of the policy on the attitude and actions of all

employees

The level of specialization required of employees

The degree of emphasis on participation by

employees at all levels

The need for and availability of originality and

initiative within the organization

Acceptance of seniority principle

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Methods of Recruitment

Direct methods

Schools and Colleges

Employees contact with the public

Manned exhibits

Waiting list

Indirect methods

M th d f R it t (C td )

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Methods of Recruitment (Contd.)

Third-party methods

Private employment agencies

State or public employment agencies

Executive search agencies

Indoctrination seminars for College ProfessorsFriends and relatives of present employees

Trade unions

Professional societiesTemporary help agencies

Casual labour sources

Deputation

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Selection

The selection process

Initial screening or preliminary interview

Application scrutiny

Selection of tests

Purpose of test

Types of tests

Achievement or intelligence tests

Aptitude or potential ability test

Personality test

Interest test

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Achievement or Intelligence Tests

Test for measuring job knowledge

Work sample testsAptitude or Potential Ability Tests

Mental tests

Mechanical aptitude tests

Psychomotor or skill tests

Personality Tests

Objective tests

Projective tests

Situation tests

Interest Tests

Limitation of selection tests

Precautions in using selection tests

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Interview

Types of Interview

Informal interview

Formal interview

Planned interview

Patterned interview

Non-directive interview

Depth interview

Stress interview

Group interview

Panel interview

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Interview rating

Physical make-up

Attainments

Intelligence

Special aptitudes

Interests

Disposition

circumstances

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Pseudo-scientific methods of selection

Phrenology

Physiognomy

Graphology

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Physical examination

Reference checks

Final decision

Placement

Induction

General orientation by the staff

Specific orientation by the job supervisor

Follow-up orientation by either the personnel

department or the supervisor

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Outsourcing

Specialized knowledge

Size does matter

Maturity makes it easy

Road map for successful outsourcing

Reorient, you must

Entrepreneurial culture

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UNIT 7

Socialization, Mobility and Separation

Individual and the organization: the process of

integration

Self-image membership

Interactions between individual and organization

Never the total person

Never the total organization

Status and socialization

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Socialization factors in organizational socialization

Influence of subcultures relevance for gender and

minority issues

Cross-cultural comparisons

Importance of initial job socialization

The organization sizing up the individual

Matching of individual and organization

People do change organization

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Improving the socialization process

The individual perspectiverealistic career

planning

Organizational perspectiveinitial socialization

Concepts of mobility

Purpose of mobility

To improve organizational effectiveness

To maximize employee efficiency

To cope with changes in operation

To ensure discipline

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Promotion

Purpose and advantages of promotion

Types of promotion

Multiple chain promotion

Up or out promotion

Dry promotion

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Promotion programme and procedure

Formulation of promotion policyPromotion channels

Promotion appraisals

Centralise records

Bases of promotion

Seniority as a basis

Merit as a basis

Seniority-cum-merit as basis

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Promotion practice I India

Demotion

Causes of demotion

Adverse business conditions

Incompetency of the employee

Technological change

Disciplinary measures

Demotion policy1958 (Yoder, Heneman, Turnbull, and

Stone)

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Transfer

Purpose of transfer

Types of transferProductions transfers

Replacement transfers

Versality transfers

Personnel or remedial transfersShift transfers

Transfer Policy

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Separations

ResignationCompulsory retirement

Premature retirement

Voluntary retirement

Dismissal

Suspension

Retrenchment

Layoff

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UNIT 8

Competency Mapping

Competency Approach to Job AnalysisUse of Competency Approach in an Organization

Benefits of the Competency Approach

Competency Mapping

Conduct a job analysis by asking incumbents tocomplete a Position Information Questionnaire

(PIQ)

Using the results of job analysis, a competency

based job description is developed

With a competency based job description,

mapping the competencies can be done

To identify what competencies individuals need

additional development or training

M th d f t i

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Methods of competency mapping

Assessment centre

Group discussion

Positive Task Roles

InitiatorInformation seeker

Information giver

Opinion seeker

Opinion giver

ClarifierSummariser

Positive Maintenance Roles

Social supporter

Harmonizer

Tension reliever

Energiser

Compromiser

Gatekeeper

In tray

Interview simulation / Role play

Case Studies / analysis exercises

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Methods of competency mapping

Critical Incident Technique

Gathering facts

Content analysisCreating feedback

Interview Technique

Questionnaire

Common metric questionnaire (CMQ)Functional Job Analysis

Multiple Occupational Systems Analysis

Inventory (MOSIAC) USA

Occupational Analysis Inventory

Position Analysis Questionnaire (PAQ)Work Profiling System (WPS)

Psychometric Tests

Aptitude Test

Achievement Test

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UNIT 9

Performance Planning and Review

What is performance?

What is Appraisal?

Goals of Performance Appraisal

Objectives of Performance AppraisalThe Performance Appraisal Process

Establishment of performance standard

Communication of performance expectations

Measurement of performance

Comparison of Actual performance withstandards

Corrective action

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Benefits of Performance Appraisal

For the organization

For the appraiserFor the appraisee

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Performance Appraisal Methods

Critical incident method

ChecklistGraphic rating scale

Forced choice method

Behaviourally anchored rating scales

Group order ranking

Individual rankingPaired comparison

Management by objective (MBO)

360 degree appraisal

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Features of 360 degree appraisal

Improved feedback from more sources

Team developmentPersonal and organizational performance

development

Reduced discrimination risk

Improved customer serviceTraining needs assessment

Benefits of 360 degree appraisal

To the individual

To the team

To the organization

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Performance consulting

Problems in performance appraisal

Leniency errorHalo effect

Similarity error

Low appraiser motivation

Central tendency

Recency vs primacy effect

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Effective Performance Appraisal

Behaviourally based measures

Ongoing feedback

Peer evaluation

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UNIT 10

Potential Appraisal, Assessment Centres and Career

and Succession Planning

Potential Appraisal

Indicators of Potential

A sense of reality

Imagination

Power of analysis

Breadth of vision

Persuasiveness

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Assessment Centres

Job Analysis

Behavioural Classification

Assessment Techniques

Multiple Assessments

Simulation

Assessor

Assessor Training

Recording Behaviour

Reports

Data Integration

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Use of Assessment Centre

Recruitment and Promotion

Early Identification of Personnel

Diagnosis of Training and Development Needs

Organizational Planning

Assessment Centres and Development Centres

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Assessment Centres and Development Centres

Difference between Assessment and Development Centres

One for selection and one for development

Career Planning

Career AnchorsManagerial Competence

Functional Competence

Security

Creativity

Autonomy and independence

Technological Competence

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Career Planning Process

Analysis of the characteristic of the renewal and incentives

Analyze the characteristic of the hopes and aspirations

Mechanism for identifying congruence

Alternative strategies

Reviewing career plans

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Succession Planning

Superannuating

Resignation

Promotion

Diversification

Creation of new position

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UNIT 11

HR Measurement and Audit

HR Audit

Benefits of HR Audit

Scope of HR Audit

Procerement function

Development function

Compensation function

Maintenance function

Integration function

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Audit reports

Audit process

Benchmarking

Internal benchmarking

External benchmarking

HR Accounting

Objective of HR accounting

Advantages of HR accounting

Limitations of HR accounting

HRIS

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HRIS

Recruitment information

Personnel information

Manpower planning information

Training information

Health information system

Appraisal information

Payroll system

Personnel statistics system

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Designing HRIS

Preliminary system analysis

System design

System engineering

System testing and implementation

System monitoring and evaluation

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Human Resource Research

Comparative approach

Outside authority approach

Statistical approach

Compliance approach

MBO approach

Research Methods

Interviews

Questionnaires

Secondary sources of data

UNIT 12

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UNIT 12

Human Resource Development System

The Development dimensions of the personnel function

Analyzing role

Matching the role and the person

Developing the persons in the role

Developing the role for the person

Developing equitability

Developing self-renewing capability

Coping with collective power

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Developing self-renewing capability

Communication and development of culture

Downward communication

Diffusion of routine information

Diffusion of procedural information

Socialization

Job-related information

Feedback on individual performance

Employee development

D l i lf i bilit (C td )

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Developing self-renewing capability (Contd)

Upward communication

Management controlFeedback

Problem solving and involvement

Horizontal communication

Experience sharing

Problem solving

Coordination

External communication

Image building

Credibility building

Influencing

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Developing self-renewing capability (Contd)

Organizational culture

Strong corporate identity

Developing important values

Building healthy traditions and practices

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Principles in designing HRD system

Focus of the system

Focus on enabling capabilities

Balancing adaptation and change in the organizational

culture

Attention to contextual factors

Building linkages with other functions

Balancing specialization and diffusion of the function

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F i i f h

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Functioning of the system

Building feedback and reinforcing mechanisms

Balancing quantitative and qualitative decisions

Balancing internal and external expertise

Planning for the evolution of the HRD

Geographical phasing

Vertical phasing

Functional phasing

Sophisticated phasing

Changing boundaries of HRD

UNIT 13

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UNIT 13

Training

Needs and benefits of training

Organizing training programmes

Performance review reports

Potential appraisal

Job rotation

Continuing education

M th d f t i i

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Methods of training

Analysis of an activity

Analysis of problems

Analysis of behaviour

Analysis of an organization

Appraisal of performance

Training for different employees

On-the-job training

Off-the-job or classroom training

Evaluation of training

Retraining

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Retraining

Issues in training

The present status of training

Making training a strategic function

Training role

Research role

Consulting role

Change management role

Translating business strategy into training terms

Working more closely with line managers

Towards learning organization

UNIT 14

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Mentoring and professional coaching

Conditions for employee development

The individual should be interested in developing himself

The individual should know the areas of his potential development

The individual should make a clear choice about the direction inwhich he would like to grow and develop

He should be able to identify opportunities for development withinand outside the organization

He should identify mechanisms of using opportunities and get thesupport he needs from his superiors and the organization

He should make efforts to develop

He should take outside help to periodically review his progress

A positive emotional and professional climate should be created inthe work place for the employee to progress and review himself

The objective of performance coaching

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e object ve o pe o a ce coac g

Individual-level review

General improvement

Improved performance

Potential development of the employee

Feedback to groups or teams

Conditions for effective coaching

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Conditions for effective coaching

General climate of openness and mutuality

General helpful and empathic attitude of management

Uninhibited participation by the subordinates in the review

process

Dialogic relationship in goal setting and performancereview

Focus on work-oriented behaviour

Focus on work-related problems and difficulties

Avoidance of discussion of salary and other rewards

Unit 15

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Unit 15

Building roles and teams

Office (Position) Role

It is based on power relationship It is on mutuality

Has related privileges Has related obligations

Is usually hierarchical Is non-hierarchical

Is created by others Is created by others and role

occupants

Is part of the structure Is part of the dynamics

Is evaluative Is descriptive

Role System

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y

Developing roles : role efficacy

Dimension 1 : role makingSelf-role integration

Proactive

Creativity

Conformation

Dimension 2 : role centering

Centrality

Influence

Personal growth

Dimension 3 : role linking

Inter-role linkage

Helping relationship

superordination

Team Development

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Team Development

Awareness

Conflict

Cooperation

Productivity

Separation

M ki t ff ti

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Making team effective

Johari window approach

Role negotiation approach

Behaviour modification approach

Simulation approach

Action research approach

Appreciative enquiry approach

Steps for team building

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Steps for team building

Projection in the future

Linkage with individual goals

Force field analysis

Strengthen positive forces

Reducing negative forces

monitoring

UNIT 16

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UNIT 16

Laws Covering Wages, Welfare and Benefits

The Payment of Wages Act, 1936

Objective of Act

Applicability

Wage payment

Deductions of wages

Obligation of employer's

Obligation of employees

The minimum Wages Act 1948

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The minimum Wages Act 1948

Objective of the Act

Applicability

Fixing of minimum rates of wages

Registers, notices, abstract and returns

Offence and penalties

Th P t f B A t 1965

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The Payment of Bonus Act, 1965

Objective of the Act

Calculation of bonus

Eligibility of bonus

Amount of bonus

Time limit for payment of bonus

Claim for bonus

Mode of payment

Exemption

Obligations of employers

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The equal remuneration Act, 1976

Objective of the Act

Equal remuneration

Administration

Exemption

Statutory Social Security Benefits

UNIT 17

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Compensation Strategy, Structure, Composition

Compensation Issues

Compensation function

Compensation policies and objectives

Compensation administration

Compensation determinants

Product market

Labour market

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Wage structure in India

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Wage structure in India

Basic Wage

Dearness Allowance

Overtime payment

Annual bonus

Incentive systems

Fringe Benefits

UNIT 18

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UNIT 18

Reward Management

Motivational Aspects

Reward Systems

Motivate employees to perform effectively

Motivate employees to join the organization

Motivate employees to come to work, and

Motivate individuals by indicating their position in the

organization structure

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Incentives and Rewards

Employee Benefits

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Employee Benefits

Statutory and voluntary benefits

Flexible benefits

Trends in employee benefits

Less attention to tax avoidance

Greater simplification of benefit package

More attention to individual needs

Great emphasis on individual choice

A move towards cash rather than benefits in kinds

Greater concentration on assessing the cost/effectiveness of

total benefits package

More attention to communicating the benefits package

UNIT 19

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UNIT 19

Regulatory Mechanisms in Industrial Relations

Statutory Machinery

What is an Industrial dispute

The industrial Dispute Act, 1947

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p ,

Works Committee

Conciliation Officer

Board of Conciliation

Court of Enquiry

Voluntary Arbitration

Adjudication

Labour courts

Industrial Tribunals

National tribunals

Grievance Settlement Authority

Welfare Officer

Standing Orders

Central and State Industrial Relations Machinery

Other Preventive Measures

Voluntary Machinery

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Code of Discipline, 1958

Code of conduct

Tripartite Bodies

Indian Labour Conference

Tanding Labour Committee

Industrial Committees, and

Tripartite Committee on International Labour

Organization Conventions

Formation of joint consultative machinery

Collective bargaining

Workers participation in Management scheme

Mediation and Litigations

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g

Limitations of Litigation

Advantages of mediation

Lok Adalats

Development of Lok Adalats

Lok Adalats as a body to conduct mediation

Lok adalats and the Industrial Disputes Act, 1947

UNIT 20

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Dealing with Unions and Associations

Formative stages of trade unions

Forms of trade unions

Classical

Neo-classical

Revolutionary

Functions of trade unions

Militant or protective or intra-mutual functions

Fraternal or extramural functions

Political functions

Social functions

Objective of trade unions

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Objective of trade unions

Wages and salaries

Working conditions

Discipline

Personnel policies

Welfare

Employee-employer relation

Negotiating machinery

Safeguarding organizational health and the interest of the

industry

Role of Trade Unions

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Sectional bargainer

Class bargainer

Agents of state

Partners in social control

Enemies of economic systems

Business oriental role

Unions as change agent

Classification of trade unions

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Classification based on ideology

Revolutionary unions

Reformist or welfare unions

Uplift unions

Classification based on trade

Classification based on agreementClosed shop

Union shop

Preferential shop

Maintenance shop

Agency shop

Open shop

Theories of trade unionism

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Political revolutionary theory of labour movement or Marx and

EnglesWebbs theory of Industrial Democracy

Coles theory of union control of industry

Commons environment theoryMitchells economic protection theory of trade unionism

Simons theory of monopolistic, anti-democratic trade unionism

Perlmans theory of the scarcity Conciousness of manualworkers

Hoxies functional classification of unionism

Tannenbaums theory of man vs machine

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Trade Union Act, 1926

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Recognition of trade union

Election by secret ballotCheck-off method

Verification

Rule of thumb

Rights of recognized Unions

P bl f ti i d t t th

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Problems confronting unions and measures to strengthen

trade union movement in India

Measures to strengthen trade union movement in India

United Labour Front

Efficient Leadership

Membership Fees

White-colour and managerial trade unions

Employers Association

Local Organizations

Regional Organizations

Central Organizations

Different EOs in India

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AIOE

EFI

IOE

SCOPE

CIE

UNIT 21

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Industrial Democracy

Empowerment

Quality Circle

Workers Participation in Management

Collective bargaining

Works councils

Joint management councils and committees

Board representation

Workers ownership of enterprise

Forms of workers participation in management in different

countries

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General meeting

Supervisory board

Board management

Works council

Evaluation of workers participation in management

Measures for effective workers participation in management

Managerial attitude

Union co-operation

Meaning participation

Workers attitude

UNIT 22

G i H dli d Di i li

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Grievance Handling and Discipline

Dissatisfaction, complaint and grievance

Forms of grievance

Factual

Imaginary

Disguised

Causes of grievance

Economic

Work environmentSupervision

Work group

Miscellaneous

Aspects of grievance

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Organizational aspects

Informational aspects

Human aspects

Effects of grievance

On production

On the employees

On the managers

Discovery of grievance

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Observation

Grievance procedure

Gripe boxes

Open door policy

Exit interview

Opinion survey

Grievance procedure

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Intermediate stage

Organizational level

Third-party mediation

Steps in grievance handling

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Acknowledgement of dissatisfaction

Define the problem

Get the facts

Analyze and decide

Follow up

Key factors of a good grievance handling procedure

Fairness

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a ess

Facilities for representation

Procedural steps

Promptness

Essential pre-requisite of a grievance handling procedure

Conformity with statutory procedure

Un-ambiguity

Simplicity

Promptness

Training

Follow up

Discipline

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Disciplinary procedure

Legal procedure relating to discharge or dismissal (underindustrial dispute act, 1947) Sec II A