Title: Human resource management
1Human resource management
2Syllabus
- Manpower Planning, Job Analysis, Job Description,
Scientific Recruitment and Selection Methods. - Motivating Employees ? Motivational Strategies,
Incentive Scheme, Job-enrichment, Empowerment ?
Job satisfaction, Morale, Personnel Turnover. - Performance Appraisal Systems ? MBO Approach,
Performance Counseling, Career Planning. - Training and Development ? Identification or
Training Needs, Training Methods, Management
Development Programmes.
3Reference Text
- Human Resource Management ? P. Subba Rao
- Personnel Management ? C. B. Mammoria
- Dessler Human Resource Management (Prentice
Hall India) - Personnel / Human Resource Management DeCenzo
Robbins (Prentice Hall India) - D. K. Bhattacharya Human Resource Management
(Excel) - VSP Rao ? Human Resource Management (Excel)
- Gomez Managing Human Resource (Prentice Hall
India)
4Presentation Topics
- Role of Internet in HRM
- Twitter A Popular Recruitment Tool
- Performance Management A Necessary Evil
- Manage Men Tactfully Management
- The New Age of Working through Virtual Teams
- Managing Stress in Changing Times
- Integrating Six Sigma and HR
- Employee Retention An Art of Keeping People Who
keep You in Business - Promoting Innovation The Role of HR
- Exit Interview A Tool to Reduce Employee
Turnover - Talent Management An Agile Edge Over Competition
5Presentation Topics
- Employee Involvement An Approach to
Organisational Development and Change - A Human Resource Perspective on Importance of
Global Managers in a Post Merger Scenario - Corporate CEOs
- Diverse Skills of a Manager
6Manpower Planning Employee Recruitment
7Definition of Manpower Planning
- Process by which an organization ensures that it
has the right number kind of people at the
right place and at the right time, capable of
effectively and efficiently completing those
tasks that help the organization achieve its
overall objectives.
8Manpower Planning
Company Strategy
Job Analysis
- Performance Appraisal
- Company Databanks
- Training
- Employee Management and Development
What staff do we need to do the job?
What staff is available within our organization?
Is there a match??
What is the impact on Wage and Salary program
If not, what type of people do we need, and how
should we recruit them?
9Job Analysis
- Job analysis is a formal and systematic process
used for obtaining information about the job. - It is an investigation of duties and
responsibilities necessary to do a job - Determination of tasks which comprise the job and
of skills, knowledge, abilities and
responsibilities required of the worker for a
successful performance and which differentiates
one job from all others.
Job Description
Job Analysis
Job Specification
10Uses of Job Analysis
- Planning
- Recruitment and Selection
- Training
- Performance Appraisal
- Job Design
- Job Evaluation
11Methods of collecting Job analysis data
- Personal Observation
- Interview of Employee and Supervisors
- Put the worker at ease
- Make the purpose of interview clear
- Phrase question in such a way that the answer
will be in YES or NO - Summarize the information obtained before closing
the interview - Panel of Experts
- Diary Method
- Questionnaire Method
12Impact of behavioural factors on Job analysis
- Exaggerate he Facts
- Employee Anxieties
- Resistance to change
13Job description
- It defines the purpose and scope of a job.
- Describes what job is all about, what are job
content, environment and conditions of
employment. - Contents A job description usually covers the
following information
- Designation
- Corporate Grade
- Reporting To
- Position Reporting to
- this Position
- Qualifications
- Experience
- Job Summary
- Main Responsibilities
Sample Job Description 1 Sample Job Description 2
14Problems with job description
- It is not easy to reduce all the essential
components of the job in the form of a clear and
precise document. - Job description are sometimes not updated as the
job duties change - The can limit he scope of activities of the job
holder, reducing organizational flexibility.
15Job specification
- Job specification summarizes the characteristics
needed for completing a job. - It spells out the important attributes of a
person in terms of education, experience, skills,
knowledge and abilities to perform a particular
job. - This helps the organization to determine what
kind of persons are needed to take up specific
jobs. - Job specifications can be classified into three
categories - Essential Attributes
- Desirable Attributes
- Contra-Indicators
16Job evaluation
- Job analysis also helps in finding the relative
worth of a job based on criteria such as - Degree of difficulty in the work
- Type of work done by the employee
- Skills and knowledge needed
- This, in turn, assists in designing proper wage
policies, with internal pay equity between jobs.
17Importance of Manpower planning
- Talent pool
- Prepare people for future
- Smooth transition during expansion
- Succession Planning
- Support to overall business strategy
18Process of HRP
19Factors of Manpower Planning
Factors in forecasting Personnel Requirements
Quality and Nature of your Employees (in relation
to what you see as the changing needs of your
organisation)
Projected Turnovers (as a result of resignation
and terminations)
The financial resources available to your
organisation
20Techniques to determine no. of recruits
Trend Analysis
Ratio Analysis
21Recruitment from external resources
- Recruiting new staff from external sources will
be - influenced by several factors
Macro Economic Conditions of a Nation
22Recruitment from external resources
Availability of Manpower in Desired Sector
Company Reputation
23recruitment
24definition
- Recruitment is a process of locating and
encouraging potential applicants to apply for
existing or anticipated job openings. - Recruitment aims at
- Attracting a large no. of qualified applicants
who are ready to take up the job if its offered - Offering enough information for unqualified
persons to self-select themselves out
25Constraints and challenges
- Poor image
- Unattractive jobs
- Limited budgetary support
- Restrictive policies of government
- Compensation not matching as per the industry
standard - Economic Environment
- Social Environment
26Methods of Recruitment
Methods of Recruitment
27Methods of recruitment
- Internal Method
- Promotions and Transfers
- Job Posting
- Employee Referrals
- Direct Method
- Campus Recruitment
- Indirect Method
- Advertisement
- Private Employment Search firms
- Internet Recruitment
28Effectiveness of recruitment process
- Cost per hire
- Time-lapse between recruitment and placement
ratio - Applicants performance
- Turnover
29Selection
30definition
- To select means to choose.
- Selection is the process of picking individuals
who have relevant qualifications to fill jobs in
an organization. - The basic purpose is to choose the individual who
can most successfully perform the job, from the
pool of qualified candidates. - How well an employee is matched to a job is very
important because it directly affects the amount
and quality of the employees work.
31Selection Process
Application / Resume
Screening Interview
Aptitude Test
Group Discussion
Selection Interview
Reference Checks
32Basic Concept of selection test
- The quality of an employee selection test is
determined by the three main factors - Criterion Validity A type of validity based on
showing that scores on the test (predictors) are
related to the job performance (criterion). - Content Validity Test that contains fair sample
of tasks and skills actually needed for the job. - Reliability The consistency of scores obtained
by same person when retested with identical or
equivalent test.
33Selection testing
- Intelligence Test / Aptitude Test
- Personality Test
- Confidence, Emotional balance, behavioral
pattern, interpersonal skills, motivation level
etc. - Simulation tests
- Assessment Centre
- Interview
34Types of interview
- Several types of interviews are commonly used
depending on the nature and importance of the
position to be filled - Non-directive / Unstructured Interview
- Directive / Structured Interview
- Situational Interview
- Behavioural Interview STAR Technique
- Stress Interview
- Panel Interview
35Interviewing Mistakes
- Not asking right question and hence not getting
relevant responses - Snap Judgments
- May allow ratings to be influenced by his own
likes and dislikes - May have forgotten the interviews content after
its conclusion - Unduly influenced by person origin, cultural
background etc. - Halo Affect Positive
- Horn Affect Negative
- Have been under pressure to hire candidates at
short notices
36Induction
37Meaning and Objective
- Meaning
- Induction means the task of introducing the new
employees to the organization and is policies,
procedures and rules. - Objective
- Remove fears
- Creates good impression
- Acts as a valuable source of information
38Information to be provided
- Explain about the company
- Show the department
- Introduce with the colleagues
- Introduction with the reporting heads
- Overview of the Job responsibilities, Seating
place and relationship with other job - Give the companys manual to the new recruits
- Company policies, rules and disciplinary
procedure - Give the details about pay, benefits, holidays,
leave, etc. - Idea about work culture
- Future training opportunities
- Career Path
39Performance Appraisal
40What is performance appraisal
- Performance Appraisal (PA) refers to all those
procedures/tools that are used to evaluate
employees - Personality
- Performance
- Potential of employees
- PA is the method of evaluating the behaviour of
the employees in the workplace, normally
including both quantitative and qualitative
aspect of the job - How the employee is performing
- How the employee can develop others
- Planning and organising skills
- Initiative
41Objective of Performance Appraisal
- Provide information about performance ranks
- Provide a basis for promotion and increments.
- Enhances employees effectiveness by helping to
identify their strengths and weaknesses - Informs about expected levels of performance
- Identify Training and Development needs
- Remove work alienation Counseling Employees
- Develop Inter-personal relationship
- Career planning decisions
42Process of performance Appraisal
43Methods of performance appraisal
- Individual Evaluation Method
- Confidential report
- Essay evaluation
- Critical Incidents
- Graphic Rating Scale
- 360 Degree Feedback
- Behaviorally Anchored Rating Scale
- MBO
44Methods of performance appraisal
- Multiple Person evaluation Method
- Ranking
- Paired comparison
451. Confidential Report
- Descriptive report
- Prepared at the end of the year
- Prepared by the employees immediate supervisor
- The report highlights the strengths and
weaknesses of employees - Prepared in Government organizations
- Does not offer any feedback to the employee
462. Essay evaluation
- The rater is asked to express the strong as well
as weak points of employees behavior - The rater considers the employees
- Job knowledge and potential
- Understanding of companys programs, policies,
objectives etc - Relation with co-workers and supervisors
- Planning, organizing and controlling ability
- Attitude and perception
472. Essay evaluation
-
- This method has the following limitations
- Highly subjective
- Supervisor may write biased essay
- Difficult to find effective writers
- A busy appraiser may write the essay hurriedly
without assessing properly the actual performance
of the worker - If the appraiser takes a long time it becomes
uneconomical from the view point of the firm
483. Critical Incident technique
-
- Manager prepares lists of statements of very
effective and ineffective behavior of an employee - These critical incidents represent the
outstanding or poor behavior of the employees - The manager periodically records critical
incidents of employees behavior
493. Critical Incident technique
- Limitation of this technique are
- Negative incidents may be more noticeable than
positive incidents. - Supervisors have a tendency to unload a series of
complaints about incidents. - Results in very close supervision which may not
be liked by the employee. - The recording of incidents may be a chore for the
manager concerned who may be too busy or forget
to do it.
50 4. Graphic Rating Scale
- This is the oldest and most widely method used
for performance appraisal. - The appraiser has to rate the appraisee in
different parameter on a scale of 5. - Job Knowledge as a parameter might be rated 1
(poorly informed about work duties) to 5 (has
complete mastery of all phases of the job).
51Graphic Rating Scale Employee Name................
... Job title ................. Department
......................... Rate ............... Dat
a ..................................
Quantity of work Volume of work under normal working conditions Unsatisfactory (1) Fair (2) Satisfactory (3) Good (4) Out Standing (5)
Quality of work Neatness, thoroughness and accuracy of work Knowledge of job
A clear understanding of the factors connected with the job
Attitude Exhibits enthusiasm And cooperativeness on the job
52Behaviourally anchored rating scale (BARS)
- Combination of Rating Scale and Critical
Incidents Techniques of employees performance
evaluation. - The critical incidents serve as anchor statements
on a scale of ratings. - Rating forms usually contains six to eight
specifically defined performance dimensions.
53How to construct (BARS)
- Emphasis is pinpointed on pooling the thinking of
people who will use the scales as both evaluators
and evaluees. - Step I Collect Critical Incidents from Job
Holders Supervisors. - Step II Identify performance dimensions
Technical competence, Relationship with
customers, relationship with peers, meeting day
to day deadline etc.
54How to construct (BARS)
- Step III Reclassification of Incidents Another
group of participants are asked to retranslate
the critical incidents - Step IV Assigning scale values to the incidents.
Mean and standard deviation are calculated for
the scale value assigned to each incident. - Step V Producing final instrument. Each incident
is positioned on the scale according to its mean
value.
55Advantages limitations of BARS
- Increased acceptance by supervisors and superiors
- Job specific
- Identifies observable and measurable behaviour
- Reliable and valid method
- Lack of result orientation
- Time consuming and expensive to create BARS
- Several appraisal forms for different types of
Job
565. 360 Degree Feedback
360 Degree Feedback is a multi - rater feedback
system where an individual is assessed by a
number of assessors including his boss,
subordinates, colleagues, internal customers and
external customers.
57What is 360 DF?
Feedback collected from
Boss
Internal Customers
Peers
Self
Team Members
External Customers
586. Management by objectives (MBO)
- MBO emphasizes to set specific, measurable goals
with each employee and then periodically discuss
the employees progress towards these goals. - The technique emphasises on setting goals
collectively by superior and subordinates. - MBO focuses attention on what must be
accomplished (goals) rather than how it is to be
accomplished. - It is a kind of goal setting and appraisal
program.
59Steps involved in mbo
- Set Organisational goals
- Set Departmental goals
- Discuss Departmental goals
- Define expected results
- Performance Reviews
- Provide feedback
60Ranking method
- Ranking of an employee in a work group is done
against that of another employee. - Employees are ranked according to their relative
levels of job performance - In practice, its is very difficult to compare
individuals possessing varied behavioural traits. - It does not tell how much better / worse an
employee is when compared to another employee. - No systematic procedure for ranking individuals
in the organisation
61Paired comparison method
- Each worker is compared with all the other
employees in the group. - The comparison is done for every trait.
- Cant be applicable when the group is large.
As compared to A B C D E
A _ _
B _ _
C _ _
D _ _ _
E _ _
62Providing feedback
- Adequate Preparation
- Describe Behavior
- Acts, Not attitude
- Listen to recipient
- Data based feedback
- Suggestive
- Reinforcement
- Continuous
- Proper Timing
- Help the appraisee
63Problems with performance appraisal
- Judgement Errors
- Primacy Effect
- Halo Effect
- Horn Effect
- Leniency
- Central Tendency
- Recency Effect
- Poor appraisal forms
- Lack of Rater preparedness
64Employee Type
- Low potential Low Performance
- Low potential High Performance
- Low performance High Potential
- High performance High potential
65Training and Development
66Training
- Any attempt to change an employees current and
future performance by changing his knowledge,
skills and attitude can be termed as training
67 Importance Need of training
- Aids in new entrants attaining role clarity
- To bridge gap between skills requirement and
skills availability - Promotions
- Improves quality and productivity
- Meet organizational objectives
- Improves organizational climate
- To support personal growth and development
68Then why is training often neglected?
69Training Cycle
70Training need Assessment
- Organisational Analysis
- Analysis of Organization's Objectives
- Resources utilization analysis
- Environmental Scanning
- Organisational Climate analysis
- Task or Role Analysis
- Performance Standards
- The task they have to discharge
- Person Analysis
71Implementation
- Selecting the Trainees
- Selecting the Trainer
- Selecting the Venue
- Developing Training Program
- Required arrangements before the training session
72Evaluation
- Levels of evaluation
- How did participants react?
- What did participants learn?
- How did participants behaviour change?
- What organisational goals were affected?
- Cost Benefit Analysis
73Management Development Program
74What is MDP need for MDP
- Is the process of a conscious and systematic
improvement of managerial effectiveness within
the organisation, to achieve organizational goals
and strategies - Need for MDP
- Skills of executives may become redundant
without training and development - Change in business environment
- Conglomeration and integration
- Interpersonal skills
75MDP process
Design an apt Management devt team
No action to Be taken
Desired output generated
yes
output
No
Management skill Only need improvement
Problem exists
how to overcome the problem?
Restructure organization elements
Both managerial Skills and organizational Element
s need improvement
Either Or all
Which of the two Can be improved easily
Either managerial skill or organizational
elements need improvement
Organizational elements only need improvement
76Need Analysis
- What type of managers are needed today ?
- What type of managers will we need tomorrow ?
- Insight may be drawn from
- Organisation structure
- Business strategy
- Collect information like education, experience,
training, special knowledge, skills, and personal
traits required for each job
77Current Appraisal
- Current profiles based on
- education,
- experience,
- training,
- special knowledge,
- skills, and
- personal traits
- Competency Mapping ???
78Competency mapping Matrix
Strengths
Position Competency
Personal Competency
Development Areas
A B C D E F
79Employee Motivation
80Motivation
- Motivation refers to set of forces that cause
people to behave in certain ways - Performance of an individual depends on his or
her ability backed by Motivation - Performance f (ability X motivation)
- It is essential to offer highly motivated
employees to the organisation - Its a tough challenge because there is no one
fit approach to motivation - To which stimulus employee respond, how they
respond and what behavioural outcomes do hey
exhibit is difficult to say.
81Motivation framework
Employee
82Motivational Theories
- Maslows Theory of Motivation
- Two factor Theory by Fredrick Herzberg
- ERG Theory by Alderfer
- Achievement Motivation Theory by David C.
McClelland - Expectancy Theory by Vroom
- Equity Theory by Adams
Content Theories
Process Theories
83 2. Two factor Theory
- Proposed by psychologist Fredrick Herzberg.
- Survey of factors affecting work motivation
- Survey of 200 accountant and engineers
- Respondents were asked essentially two questions
- When did you feel particularly good about your
job - When did you feel exceptionally bad about your
job
84Findings
Hygiene Factors
No Dissatisfaction
Dissatisfaction
Motivators
Satisfaction
No Satisfaction
- Satisfaction and Dissatisfaction are not opposite
poles of one dimensions, they are separate
dimensions. - Satisfaction is affected by Motivators and
dissatisfaction by Hygiene Factors - To achieve motivation, managers should cope with
both satisfiers and dissatisfiers.
85Hygiene Factors and Motivators
Company Policy and Administration
Hygiene Factors
Motivators
Achievement Recognition Work Itself Responsibility
Growth Advancements
Security
Working Conditions
Status
Salary
863. Erg Theory
- Developed by Alderfer
- The E, R and G theory stand for Existence,
Relatedness and Growth the three sets of needs. - Needs stated by Alderfer are same as Maslows
Need and are important determinants of Human
Behavior - However, the ERG theory differs from the Maslows
theory in three respects - Only three needs
- Maslows theory follows a rigid step like
progression whereas ERG theory hypothesises that
more than one need may be operative at the same
time. - Maslow had stated that a person will stay at a
certain level until that need is satisfied
whereas ERG theory states that when a higher
level need is frustrating, the individuals
desire to increase the lower level needs
increases.
874. Achievement Motivation Theory
- Developed by David McClelland
- According to this theory the needs that motivate
human behavior are Power, Affiliation and
Achievement - This theory envisages that each person has a need
for all the three, but differ in degree to which
various needs motivate their behavior. - Need for Achievement
- Derive satisfaction from reaching their goals
- High achievers prefer immediate feedback on their
performance - Generally undertake task of moderate difficulty
- They dislike tasks with high risks because they
get no achievement satisfaction from accidental
successes - They dislike easy tasks because there is no
challenge to their skills
884. Achievement Motivation Theory
- Need for Power
- Derive satisfaction from the ability to control
others - Actual achievement of goals are less important
than the means by which goals are achieved - Organisations that fosters power motive tend to
attract individuals with a high need for power - Need for Affiliation
- Derive satisfaction from social and interpersonal
activities - There is a need to form strong interpersonal ties
and to get close to people psychologically - If asked to choose between working at a task with
those who are technically competent and those who
are their friends, high need for affiliation
individuals will choose their friends
89Matching Content theories
Achievement Motivation Model
Need Hierarchy
Two Factor Theory
Self Actualisation
ERG Theory
- Motivators
- Advancement
- Growth
- Achievement
Need for Achievement
Growth
Self Esteem
Need for Power
Relatedness
Affiliation
- Hygiene
- Job Security
- Salary
- Working Conditions
Need for Affiliation
Security
Existence
Psychological
905. Expectancy theory
- Pioneered by Victor H. Vroom
- Four important variables of Expectancy Theory
are - First and Second Level of Outcomes
- Expectancy
- Instrumentality
- Valence
- First and Second Level of Outcomes
- Performance achieved as a result of efforts is
first level outcome - Performance may be reflected through high
productivity, quality of work etc. - Second level outcomes are the rewards that the
first level outcome is likely to produce. They
include pay raise, promotion, peer acceptance and
job security
915. Expectancy theory contd
- Expectancy
- The belief that particular level of effort will
be followed by particular level of performance is
called expectancy - Effort to Performance (E P)
- Instrumentality
- This is the perception by an individual that
first level outcomes are associated with second
level outcomes - Performance to Outcome (P O)
- Valence
- Valence is an individuals preference for a
second level outcome. - Desired outcomes have positive valence
- Avoided outcomes have negative valence
- Outcomes have 0 valence when an individual is
indifferent about receiving it
925. Expectancy theory contd
- According to Expectancy theory Motivation is
- Expectancy X Instrumentality X Valence
- If anyone of these variable is low, motivation is
likely to be low - Managers try to ensure that employees levels of
expectancy, instrumentality and Valence are high
so that they will be highly motivated
93Application of expectancy theory
Variable Objective Application
Expectancies To increase the belief that employees are capable of performing the job successfully Select people with required skills and knowledge
Expectancies To increase the belief that employees are capable of performing the job successfully Provide Training and clarify Job requirements
Expectancies To increase the belief that employees are capable of performing the job successfully Provide performance counseling
Instrumentality To increase the belief that good performance will result in valued outcomes Measure Job performance accurately
Instrumentality To increase the belief that good performance will result in valued outcomes Clearly explain the outcomes that will result from successful performance
94Application of expectancy theory
Variable Objective Application
Valence of Outcomes To increase the expected value of outcomes resulting from desired performance Distribute rewards that employee value
956. Equity theory
- Person compares their outcome/input ratio with
others outcome/input ratio. - Inputs refers to the characteristics which
individual bring with them to the job - Outcomes refers to what person gets from job in
terms of pay, promotions benefits and so on. - Inequity is defined as the perception that
persons outcome/input ratio is not equal to
others outcome/input ratio - Negative Inequity
- Positive Inequity
96Compensation management
97Components of remuneration
- Components of Remuneration are
- Salary
- Incentives
- Fringe benefits
- Perquisites
98Incentive Payments
- Incentives are variable rewards granted to
employees according to variations in their
performance. - Importance
- Greater Output
- Reduced supervision
- High Efficiency
- High Motivation
- Disadvantages
- Deteriorated Quality
- Jealousy feeling
- Unwanted Stock
99Types of Incentive Schemes
- Individual Incentive Schemes
- Group Incentive Schemes
- Company Wide Incentive Plans
100Benefits and Services
- Employee Benefits and Services include any
benefit that the employee receives in addition to
direct remuneration. - These benefits can be in terms of Fringe Benefits
or Perquisites - Fringe benefits include such benefits which are
provided to the employees either having long-term
impact like provident fund, gratuity, pension or
occurrence of certain events like medical
benefits, accident relief, health and life
insurance or facilitation in performance of job
like uniforms, Canteens, recreation, etc. - Administered for a group mostly
101Benefits and Services
- These are normally provided to managerial
personnel either to facilitate their job
performance or to retain them in the
organization. Such perquisites include company
car, club membership, free residential
accommodation, paid holiday trips, stock options,
etc. - Administered individually mostly
102Factors Influencing remuneration
- Internal factors
- Business Strategy
- Employee
- Job Evaluation and Performance Appraisal
- External factors
- Labour Market
- Cost of Living
- Economy
- Legislation
103Importance
Administratively Efficient
Attract talent
Motivate Retain Staff
104Challenges of remuneration
105Compensation Matrix
HIGH COMPENSATION LOW COMMITMENT Hired Guns HIGH COMPENSATION HIGH COMMITMENT Professionals
LOW COMPENSATION LOW COMMITMENT Workers as commodity LOW COMPENSATION HIGH COMMITMENT Family oriented organization
106Remuneration model
Job Evaluation
Job Description
Job Hierarchy
Pay Survey
Pricing Jobs