This topic is about the management of human resource in a efficient way for the betterment of an organization and how it can be used to stabilize and economically power the employee as well as the organization.
Human Resource Management outlines the definition, core elements, objectives, functions, scope, and challenges of HRM. It discusses the meaning of HRM as integrating employment relationships to help organizations and employees achieve their goals. HRM aims to acquire, develop, motivate, and retain committed employees to meet organizational objectives. It also covers the planning, organizing, directing, and controlling of human resources from recruitment to retirement.
Human resource planning is a process of forecasting future personnel needs and the availability of personnel to meet those needs in order to ensure that the right number and type of people are available at the right time and place. It involves forecasting demand and supply of personnel, developing programs to fulfill needs, implementing those programs, and evaluating their effectiveness. Effective HRP requires aligning HR strategies with organizational objectives, obtaining management support, maintaining accurate personnel records, using appropriate forecasting techniques, and revising plans and processes over time.
Understand and Differentiate between strategic recruitment and selection.
Identify the dual goals of recruiting.
Comprehend recruitment process from organizational as well as individual perspective.
Identify what strategic decisions are involved in recruiting.
Explain the major recruitment methods and analyze their advantages and disadvantages.
Identify the basic selection criteria.
Design and administer an effective selection process.
Evaluate the three methods e.g., information gathering, tests and interviewing used in employee selection.
Appreciate varied contemporary interviewing techniques used by interviewers.
Design interview form and evaluation matrix.
The document provides an overview of recruitment and selection processes within an organization. It discusses key topics such as the importance of recruitment, factors influencing recruitment, sources of recruitment, recruitment methods, the selection process, and barriers to effective selection. The recruitment process involves job analysis, planning, developing strategies, searching for candidates, screening applicants, and evaluating the process. Selection involves differentiating among applicants using tools like interviews, tests, background checks, and making offers to the most qualified candidates.
The document discusses human resource management (HRM). It defines HRM as employing, developing, utilizing, maintaining, and compensating employees according to job and organizational needs. It outlines the key functions of HRM like acquisition, development, performance & compensation, and industrial relations. It also discusses the nature, scope, objectives, and importance of HRM. The document compares personnel management to HRM and lists qualities needed in HR managers. It examines factors influencing HRM and emerging issues. Finally, it covers human resource planning, its objectives, process, and importance.
This document discusses different approaches to strategic human resource management (SHRM). It defines SHRM and outlines five key approaches: traditional, strategy implementation, strategy formulation, best practices, and best fit. For each approach, it provides an overview of the focus and assumptions, as well as advantages/criticisms. The traditional approach views HR as separate from business strategy. The other four seek to align HR with organizational goals and strategy in different ways.
The document discusses the functions of human resource management which include planning, organizing, staffing, directing, and controlling as managerial functions and employment, human resource development, compensation management, and employee relations as operational functions. It also outlines the roles of HR executives as service providers, administrative experts, facilitators, consultants, auditors, change agents, and employee advocates.
Human Resource Management outlines the definition, core elements, objectives, functions, scope, and challenges of HRM. It discusses the meaning of HRM as integrating employment relationships to help organizations and employees achieve their goals. HRM aims to acquire, develop, motivate, and retain committed employees to meet organizational objectives. It also covers the planning, organizing, directing, and controlling of human resources from recruitment to retirement.
Human resource planning is a process of forecasting future personnel needs and the availability of personnel to meet those needs in order to ensure that the right number and type of people are available at the right time and place. It involves forecasting demand and supply of personnel, developing programs to fulfill needs, implementing those programs, and evaluating their effectiveness. Effective HRP requires aligning HR strategies with organizational objectives, obtaining management support, maintaining accurate personnel records, using appropriate forecasting techniques, and revising plans and processes over time.
Understand and Differentiate between strategic recruitment and selection.
Identify the dual goals of recruiting.
Comprehend recruitment process from organizational as well as individual perspective.
Identify what strategic decisions are involved in recruiting.
Explain the major recruitment methods and analyze their advantages and disadvantages.
Identify the basic selection criteria.
Design and administer an effective selection process.
Evaluate the three methods e.g., information gathering, tests and interviewing used in employee selection.
Appreciate varied contemporary interviewing techniques used by interviewers.
Design interview form and evaluation matrix.
The document provides an overview of recruitment and selection processes within an organization. It discusses key topics such as the importance of recruitment, factors influencing recruitment, sources of recruitment, recruitment methods, the selection process, and barriers to effective selection. The recruitment process involves job analysis, planning, developing strategies, searching for candidates, screening applicants, and evaluating the process. Selection involves differentiating among applicants using tools like interviews, tests, background checks, and making offers to the most qualified candidates.
The document discusses human resource management (HRM). It defines HRM as employing, developing, utilizing, maintaining, and compensating employees according to job and organizational needs. It outlines the key functions of HRM like acquisition, development, performance & compensation, and industrial relations. It also discusses the nature, scope, objectives, and importance of HRM. The document compares personnel management to HRM and lists qualities needed in HR managers. It examines factors influencing HRM and emerging issues. Finally, it covers human resource planning, its objectives, process, and importance.
This document discusses different approaches to strategic human resource management (SHRM). It defines SHRM and outlines five key approaches: traditional, strategy implementation, strategy formulation, best practices, and best fit. For each approach, it provides an overview of the focus and assumptions, as well as advantages/criticisms. The traditional approach views HR as separate from business strategy. The other four seek to align HR with organizational goals and strategy in different ways.
The document discusses the functions of human resource management which include planning, organizing, staffing, directing, and controlling as managerial functions and employment, human resource development, compensation management, and employee relations as operational functions. It also outlines the roles of HR executives as service providers, administrative experts, facilitators, consultants, auditors, change agents, and employee advocates.
The document discusses traditional and modern pay systems, as well as the process for establishing pay plans.
1. Traditional pay systems are based on cost of living, seniority, and evenly distributed wages. Modern pay systems emphasize variable pay based on business, individual, team and organizational performance.
2. Establishing effective pay plans involves analyzing factors like the job market, designing compensation to attract and retain talent, and linking pay to performance to optimize costs.
3. Regular evaluation and review of pay plans is needed to ensure plans stay aligned with business strategy and changing internal and external conditions.
This document discusses the environment of human resource management (HRM) and analyzes various internal and external forces that impact HRM. It identifies key external forces like political-legal, technological, cultural, and economic factors. Important internal forces include unions, organizational strategy/tasks/leadership, and culture/conflicts. Analyzing these environmental forces helps HRM departments proactively adapt to changes in the competitive environment rather than reacting passively.
this presentation covers the following portion of HR managent:
-Human Resource Planning Process
-Difference between recruitment and selection
-Objectives of HR management
MOTIVATION IN HUMAN RESOURCE MANGEMENT; WHAT IS MOTIVATION, NEED FOR MOTIVATING EMPLOYEES, PROCESS OF MOTIVATION, TYPES OF MOTIVATION- INTRINSIC AND EXTRINSIC. MOTIVATION THEORY. METHODS OF MOTIVATION.
HUMAN RESOURCE MANAGEMENT (OBJECTIVE & FUNCTION)ADITYA .
This document outlines the objectives and functions of human resource management. It discusses 10 objectives of HRM which are to help the organization attain its goals by providing well-trained employees, employ skills efficiently, enhance job satisfaction, establish productive relationships, develop members, maintain work quality, high morale, ethical policies, recognize individual and group goals, and manage change. It also describes the managerial and operative functions of HRM which include planning, organizing, staffing, directing, controlling, procurement, development, compensation, integration, and maintenance.
The document discusses human resource audits, including their definition, significance, objectives, benefits, and approaches. A HR audit examines policies, practices, procedures, compliance, effectiveness, and efficiency. It identifies gaps, makes recommendations for improvements, and helps ensure HR activities align with organizational goals. The audit scope includes functions like planning, staffing, development, motivation and more. Objectives include assessing performance, implementation, corrective actions, evaluations, and strategy modification. Benefits are improving the HR department, responsibility, uniform policies, and legal compliance.
This Presentation cover all relative aspects of Human Resource Planning | HR Demand Forecasting & HR Supply Forecasting along with detail description of Recruitment & Selection as per the Syllabus of AKTU MBA Course.
This document discusses different types of organization structures, including line, functional, line and staff, matrix, and committee structures. It provides details on the key characteristics of each structure and lists their main advantages and disadvantages. The main types covered are line (simplest form with owner making decisions), functional (divided by specialized functions), line and staff (combines line executives and staff experts), matrix (divided by functions and projects), and committee (group discusses problems and solutions).
Job evaluation is a systematic way to determine the relative worth of jobs within an organization. It aims to establish a rational pay structure by comparing jobs based on factors like skill, effort, and responsibility required. The main methods of job evaluation are ranking, classification, factor comparison, and point method. Ranking simply arranges jobs in order of value, while classification groups similar jobs into predefined grades. Factor comparison and point method assign scores to jobs based on how they rate on important compensable factors. While objective, job evaluation still involves some subjectivity and may require periodic review.
Compensation Management importance and factors influencing compensationalisdq550
Compensation is what employees receive in exchange for their work, including both monetary and non-monetary benefits. It is important for both motivating employees and reducing costs for organizations. Many factors influence compensation, including external factors like the labor market, cost of living, unions, and laws, as well as internal factors like the organization's compensation policies, ability to pay, job analyses, and individual employee performance. Effective compensation systems can help organizations attract, retain, and motivate talented staff.
This document discusses job analysis and design. It defines job analysis as determining all pertinent information about a specific job. The main methods of job analysis are observation, interviews, questionnaires, and diaries. Job analysis is used to create job descriptions and specifications, and inform selection, training, performance reviews, and design. Job design structuring work activities and responsibilities. Approaches to design include engineering, human relations, and job characteristics models. Modern techniques incorporate flexibility like job rotation, enlargement, enrichment, and telecommuting.
Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. Compensation may achieve several purposes assisting in recruitment, job performance, and job satisfaction.Compensation Management is a Process of compensation management is to establish & maintain an equitable wage & salary structure & an equitable cost structure .it involves job evaluation, wage & salary survey, profit sharing &control of pay costs.
According to Thomas J. Bergmann(1988) compensation consists of four distinct components:
Compensation = Wage or Salary + Employee benefits +Non-recurring financial rewards+ Non-pecuniary rewards.
Compensation is a tool used by management for a variety of purposes to further the existence of the company. Compensation may be adjusted according the business needs, goals, and available resources.
These slides are intended to help the Kannur University MBA - HRM students of MBA. It deals with topics of Challenges in HRM, Managing protean careers, Moonlighting Phenomenon, Workforce Diversity, Employee empowerment, Competitive Challenges,
Functions of Human Resource Management Ankita Shah
This presentation consist of 7 main important functions of Human Resource Management. It gives a brief information that how important Human Resources are in any organisation now a days.
This document discusses job evaluation, which is a systematic process to determine the relative worth of jobs within an organization. It mentions the merits and demerits of job evaluation as well as the common methods used, which include ranking, grading, point rating, and factor comparison. The summary evaluates jobs based on factors like skills, effort, training, responsibilities, and assigns weights or points to determine each job's value in order to establish a rational pay structure.
Human Resource Training and DevelopmentJoey Miñano
The document discusses the key differences and relationships between training and development in organizations. It notes that training involves teaching employees skills for their current jobs, while development prepares employees for future roles and responsibilities. The document outlines various types of training, such as orientation training, job instruction training, and apprenticeship training. It also describes the typical training process, including needs analysis, objective setting, method selection, implementation, and evaluation. Overall, the summary emphasizes that training and development are ongoing processes aimed at improving employee skills and knowledge to help organizations achieve their goals.
Reward is an incentive plan to reinforce the desirable behavior of workers or employers and in return for their service to the organization.
Compensation and Reward system plays vital role in a business organization.
Reward Management is concerned with the formulation and implementation of strategies and policies that aim to reward people fairly, equitably and consistently in accordance with their value to the organization.
Understand Human Resource Planning (HRP) and purpose of HRP.
Identify the relationship between strategy and HRP.
Identify the steps of HR planning process.
Describe the approaches to understand the jobs.
Discuss the phases of job analysis, including what it is and how it’s used.
Design model for forecasting HR requirements and employee requisition form.
Develop job descriptions , including summaries and job functions, using the Internet and traditional methods by using Job analysis questionnaire.
Develop job specifications using the Internet as well as your judgment.
Explain job analysis in a “jobless” world, including what it means and how it’s done in practice.
This document outlines 8 economic theories of wages: 1) Subsistence Theory, 2) Wages Fund Theory, 3) Residual Claimant Theory, 4) Surplus Value Theory, 5) Marginal Productivity Theory, 6) Bargaining Theory of Wages, 7) Employment Theory, and 8) Competitive Theory. It provides a brief description of each theory, including key assumptions and economists associated with each view of how wages are determined.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise causes chemical changes in the brain that may help boost feelings of calmness, happiness and focus.
A Framework for Synergy, Collaboration, Exploration, Creativity, Discovery & Innovation. A Team activity to balance need, function & cost.
bsauter@workbench20.com
www.workbench20.com
The document discusses traditional and modern pay systems, as well as the process for establishing pay plans.
1. Traditional pay systems are based on cost of living, seniority, and evenly distributed wages. Modern pay systems emphasize variable pay based on business, individual, team and organizational performance.
2. Establishing effective pay plans involves analyzing factors like the job market, designing compensation to attract and retain talent, and linking pay to performance to optimize costs.
3. Regular evaluation and review of pay plans is needed to ensure plans stay aligned with business strategy and changing internal and external conditions.
This document discusses the environment of human resource management (HRM) and analyzes various internal and external forces that impact HRM. It identifies key external forces like political-legal, technological, cultural, and economic factors. Important internal forces include unions, organizational strategy/tasks/leadership, and culture/conflicts. Analyzing these environmental forces helps HRM departments proactively adapt to changes in the competitive environment rather than reacting passively.
this presentation covers the following portion of HR managent:
-Human Resource Planning Process
-Difference between recruitment and selection
-Objectives of HR management
MOTIVATION IN HUMAN RESOURCE MANGEMENT; WHAT IS MOTIVATION, NEED FOR MOTIVATING EMPLOYEES, PROCESS OF MOTIVATION, TYPES OF MOTIVATION- INTRINSIC AND EXTRINSIC. MOTIVATION THEORY. METHODS OF MOTIVATION.
HUMAN RESOURCE MANAGEMENT (OBJECTIVE & FUNCTION)ADITYA .
This document outlines the objectives and functions of human resource management. It discusses 10 objectives of HRM which are to help the organization attain its goals by providing well-trained employees, employ skills efficiently, enhance job satisfaction, establish productive relationships, develop members, maintain work quality, high morale, ethical policies, recognize individual and group goals, and manage change. It also describes the managerial and operative functions of HRM which include planning, organizing, staffing, directing, controlling, procurement, development, compensation, integration, and maintenance.
The document discusses human resource audits, including their definition, significance, objectives, benefits, and approaches. A HR audit examines policies, practices, procedures, compliance, effectiveness, and efficiency. It identifies gaps, makes recommendations for improvements, and helps ensure HR activities align with organizational goals. The audit scope includes functions like planning, staffing, development, motivation and more. Objectives include assessing performance, implementation, corrective actions, evaluations, and strategy modification. Benefits are improving the HR department, responsibility, uniform policies, and legal compliance.
This Presentation cover all relative aspects of Human Resource Planning | HR Demand Forecasting & HR Supply Forecasting along with detail description of Recruitment & Selection as per the Syllabus of AKTU MBA Course.
This document discusses different types of organization structures, including line, functional, line and staff, matrix, and committee structures. It provides details on the key characteristics of each structure and lists their main advantages and disadvantages. The main types covered are line (simplest form with owner making decisions), functional (divided by specialized functions), line and staff (combines line executives and staff experts), matrix (divided by functions and projects), and committee (group discusses problems and solutions).
Job evaluation is a systematic way to determine the relative worth of jobs within an organization. It aims to establish a rational pay structure by comparing jobs based on factors like skill, effort, and responsibility required. The main methods of job evaluation are ranking, classification, factor comparison, and point method. Ranking simply arranges jobs in order of value, while classification groups similar jobs into predefined grades. Factor comparison and point method assign scores to jobs based on how they rate on important compensable factors. While objective, job evaluation still involves some subjectivity and may require periodic review.
Compensation Management importance and factors influencing compensationalisdq550
Compensation is what employees receive in exchange for their work, including both monetary and non-monetary benefits. It is important for both motivating employees and reducing costs for organizations. Many factors influence compensation, including external factors like the labor market, cost of living, unions, and laws, as well as internal factors like the organization's compensation policies, ability to pay, job analyses, and individual employee performance. Effective compensation systems can help organizations attract, retain, and motivate talented staff.
This document discusses job analysis and design. It defines job analysis as determining all pertinent information about a specific job. The main methods of job analysis are observation, interviews, questionnaires, and diaries. Job analysis is used to create job descriptions and specifications, and inform selection, training, performance reviews, and design. Job design structuring work activities and responsibilities. Approaches to design include engineering, human relations, and job characteristics models. Modern techniques incorporate flexibility like job rotation, enlargement, enrichment, and telecommuting.
Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. Compensation may achieve several purposes assisting in recruitment, job performance, and job satisfaction.Compensation Management is a Process of compensation management is to establish & maintain an equitable wage & salary structure & an equitable cost structure .it involves job evaluation, wage & salary survey, profit sharing &control of pay costs.
According to Thomas J. Bergmann(1988) compensation consists of four distinct components:
Compensation = Wage or Salary + Employee benefits +Non-recurring financial rewards+ Non-pecuniary rewards.
Compensation is a tool used by management for a variety of purposes to further the existence of the company. Compensation may be adjusted according the business needs, goals, and available resources.
These slides are intended to help the Kannur University MBA - HRM students of MBA. It deals with topics of Challenges in HRM, Managing protean careers, Moonlighting Phenomenon, Workforce Diversity, Employee empowerment, Competitive Challenges,
Functions of Human Resource Management Ankita Shah
This presentation consist of 7 main important functions of Human Resource Management. It gives a brief information that how important Human Resources are in any organisation now a days.
This document discusses job evaluation, which is a systematic process to determine the relative worth of jobs within an organization. It mentions the merits and demerits of job evaluation as well as the common methods used, which include ranking, grading, point rating, and factor comparison. The summary evaluates jobs based on factors like skills, effort, training, responsibilities, and assigns weights or points to determine each job's value in order to establish a rational pay structure.
Human Resource Training and DevelopmentJoey Miñano
The document discusses the key differences and relationships between training and development in organizations. It notes that training involves teaching employees skills for their current jobs, while development prepares employees for future roles and responsibilities. The document outlines various types of training, such as orientation training, job instruction training, and apprenticeship training. It also describes the typical training process, including needs analysis, objective setting, method selection, implementation, and evaluation. Overall, the summary emphasizes that training and development are ongoing processes aimed at improving employee skills and knowledge to help organizations achieve their goals.
Reward is an incentive plan to reinforce the desirable behavior of workers or employers and in return for their service to the organization.
Compensation and Reward system plays vital role in a business organization.
Reward Management is concerned with the formulation and implementation of strategies and policies that aim to reward people fairly, equitably and consistently in accordance with their value to the organization.
Understand Human Resource Planning (HRP) and purpose of HRP.
Identify the relationship between strategy and HRP.
Identify the steps of HR planning process.
Describe the approaches to understand the jobs.
Discuss the phases of job analysis, including what it is and how it’s used.
Design model for forecasting HR requirements and employee requisition form.
Develop job descriptions , including summaries and job functions, using the Internet and traditional methods by using Job analysis questionnaire.
Develop job specifications using the Internet as well as your judgment.
Explain job analysis in a “jobless” world, including what it means and how it’s done in practice.
This document outlines 8 economic theories of wages: 1) Subsistence Theory, 2) Wages Fund Theory, 3) Residual Claimant Theory, 4) Surplus Value Theory, 5) Marginal Productivity Theory, 6) Bargaining Theory of Wages, 7) Employment Theory, and 8) Competitive Theory. It provides a brief description of each theory, including key assumptions and economists associated with each view of how wages are determined.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise causes chemical changes in the brain that may help boost feelings of calmness, happiness and focus.
A Framework for Synergy, Collaboration, Exploration, Creativity, Discovery & Innovation. A Team activity to balance need, function & cost.
bsauter@workbench20.com
www.workbench20.com
This document discusses different aspects of line and staff authority in human resource management. It defines line authority as the right of line managers to direct the work of subordinates, while staff managers are authorized to assist and advise line managers. The document also discusses different types of human resource professionals, including executives, generalists, and specialists. It outlines several key human resource management functions performed by HR managers, such as staffing, training, compensation, and employee relations.
This document discusses various wage payment methods and incentive plans used in organizations. It describes time-based wage systems that pay employees based on time worked, and piece-rate systems that pay based on output. It also discusses individual and group incentive plans that provide bonuses for efficient work. Some key incentive plans covered are Halsey, Merrick Multiple Piece Rate, and Gainn Task & Bonus plans. The document stresses that no single method is best and combinations can provide security and incentives for high performance.
20 Rules of Change Management in Organizations by Catherine AdenleCatherine Adenle
20 Rules of Change Management in Organizations.
When implementing change, no two organizations are the same, nor is there a ’one-size-fits-all’ approach because each organisation is different in structure, size, vision, culture, business needs and most all, each change management is different. However, despite the range of approaches to change management, there are common guidelines for delivering a successful change. The content of this presentation is intended as a tool to facilitate best practice of change management, thereby guide the actions that will result to successful change.
This document discusses wages and salary administration. It covers developing a pay system through job evaluation and market surveys, establishing pay structures, and administering individual pay adjustments while monitoring the system. It also discusses factors affecting compensation levels and the purpose of wages. Principles of compensation administration and different types of compensation like direct, indirect, and total compensation are defined.
This presentation contains functions of human resources management, recruitment process, types of wage payment plans, selection procedure, types of wage incentives plans. For wage payment I have provide various examples.
This document provides an overview of recruitment and selection processes within human resource management. It defines recruitment as discovering potential job applicants, while selection involves choosing candidates based on assessing their fit for open positions. The document outlines objectives, methods, sources, advantages/disadvantages, and factors influencing recruitment. It also describes the multi-step selection process, including screening, testing, interviews, investigations, examinations, approval, and final hiring. Key differences between recruitment and selection are that recruitment aims to attract many applicants, while selection aims to choose the best from available candidates through a more intensive rejection-focused process.
A presentation on Recruitment and Selection for your better understanding.
Presented by Asish Raut
Studying M.COM
Central University Of Karnataka
Thank you for choosing our ppt
hope it helps you.
The document discusses several aspects of human resource management in nursing including recruitment, selection, orientation, deployment and retention. It defines key terms and describes processes. For recruitment, it outlines internal and external sources and modern methods. Selection involves application, testing, interviewing and selection committee evaluation. Orientation and deployment aim to integrate new staff. Retention is important to maintain skills, experience and productivity within the organization.
This document discusses recruitment and provides details about:
1. The recruitment process at Anisha Jain's college, including the objectives, methodology, and content of her project report on recruitment.
2. An overview of the recruitment process, including defining recruitment, discussing factors that affect recruitment, and outlining the typical stages in the recruitment process.
3. The various sources that can be used for recruitment, including internal sources like current employees and external sources like advertisements, employment agencies, and campus recruitment.
This document provides an overview of human resource management and staffing. It discusses estimating manpower requirements, recruitment, selection methods like screening and interviews, placement and orientation, training and development, promotions, compensation, and the advantages of proper staffing. Organizational culture is key to ensuring a good fit when staffing. A strong culture with widely shared values allows employees to know what is expected and act quickly.
The document discusses staffing as one of the most important functions of management, involving finding the right personnel to fill organizational roles. It defines staffing and explains its importance in finding efficient workers, improving performance, facilitating succession planning, and developing future managers. The staffing process involves estimating manpower needs, recruitment, selection, placement, training, and performance appraisal. Recruitment sources can be internal through transfers or promotions, or external through various methods like advertisements or campus recruitment. Selection involves screening applications, testing, interviews, reference checks, and making offers. Training and development help employees improve skills and prepare for future roles.
Human resources refer to the individuals who comprise an organization's workforce. HR departments typically handle recruitment, compensation, training, and other employee-related matters. Recruitment involves attracting, screening, and selecting qualified applicants for jobs. It is influenced by factors like strategic plans, organizational policies, and recruitment criteria. Sources of recruitment can be internal, like promotions or transfers, or external, such as advertisements or employment agencies. The selection process includes steps like application reviews, interviews, background checks, and final selection. Effective recruitment and selection are important for organizations to hire suitable candidates and achieve their goals.
This document discusses recruitment and selection processes. It covers:
1. The recruitment process involves planning, developing strategies, searching, screening, evaluating candidates. Recruitment policies outline fair treatment of applicants.
2. Recruitment is a two-way process where information is exchanged between applicants and organizations. Both parties assess fit and interest.
3. Sources of recruitment include internal promotion/transfer and external options like job boards, agencies, universities. Internal sources save costs but limit growth. External sources introduce new ideas but take more time.
Escorts Limited is an Indian engineering conglomerate that was founded in 1960 and is involved in businesses like agriculture machinery, construction equipment, and railway equipment. It is one of the largest tractor manufacturers in India and has two international subsidiaries. The company is committed to quality and has facilities for automotive press shop, hemming shop, die spotting press, and weld shop. It also has capabilities in CAD modelling. Escorts manufactures tractors under brands like Farmtrac, Powertrac, and Escort and has products like shock absorbers and railway couplers. The company is committed to quality, environmental performance, and customer satisfaction.
The document discusses the process of recruitment and selection in human resource management. It defines recruitment as the process of searching for prospective employees and stimulating them to apply for jobs in an organization. The key steps in recruitment include planning, strategy development, searching, screening, and evaluation. Selection is defined as the process of choosing from among applicants the best qualified individuals. The main steps in selection are application forms, pre-employment tests, interviews, decision making, medical examination, and reference checks. The goal is to identify the most suitable candidates through a systematic selection process.
This document discusses recruitment processes and policies. It contains 4 sections:
1. It describes recruitment as searching for candidates and inspiring them to apply. The process includes analyzing job requirements, attracting employees, selecting applicants, and integrating new hires.
2. It outlines developing recruitment policies to advertise vacancies internally, reply to applicants promptly, inform them of job details, process applications efficiently, and ensure fair interviews.
3. Sources of recruitment include internal promotions and transfers, employee referrals, and external sources like job boards, agencies, and educational institutions.
4. Organizational inducements to attract applicants include compensation, career opportunities, and reputation. Equal employment opportunities legislation influences recruitment to avoid discriminatory
The document summarizes the key aspects of employment planning and procurement in human resource management. It discusses job analysis and defining job requirements. The procurement process involves deciding what positions to fill, recruiting candidates both internally and externally, screening applicants through interviews and tests, and making job offers. Employment planning assesses an organization's human resource needs and translates overall goals into required staff. It aims to prevent understaffing and overstaffing while ensuring the right employees are hired to achieve strategic objectives. Common recruitment sources, selection steps, and types of employment tests are also outlined.
The document discusses key concepts in human resource management including staffing, recruitment, selection, placement, orientation, performance appraisal, and direction. It defines these terms and describes common methods and objectives for each process. For example, it notes that staffing involves hiring suitable candidates based on their skills and placing them in the right jobs. Recruitment aims to attract potential employees through sources like advertising, agencies, and referrals. Selection evaluates applicants to choose the most suitable candidate.
Recruitment and Selection
Recruitment :
Recruitment is a process of attracting candidates towards a job in an organization.
Selection :
Selection is a process of hiring right person for a right job at a right time at a right cost.
Selection follows recruitment.
This document provides an overview of key aspects of human resources management, including:
1. It defines human resource planning, job analysis, recruitment and selection, training and development, and performance appraisal as core HR functions.
2. It compares personnel management with human resource management and outlines the different perspectives and approaches of each.
3. It summarizes various selection techniques used in recruitment like employment tests, interviews, and group discussions and how they are conducted.
Human Resource Policies and Practices discusses key aspects of human resource management including recruitment, selection, and training. It defines human resource management as the process of hiring and developing employees so they become more valuable to an organization. The main responsibilities of human resource management include conducting job analyses, planning personnel needs, recruiting and selecting the right candidates, orientation and training, managing compensation and benefits, performance evaluation, and resolving disputes. Recruitment is the process of finding and hiring the best qualified candidates, while selection refers to interviewing and evaluating candidates to select the right individual for employment. Training teaches skills and knowledge related to specific job competencies and can take various forms such as induction training, on-the-job training, coaching, and
Recruitment&selection of nursing personnelAHMED ZINHOM
This document outlines the recruitment and selection process of personnel. It begins with definitions of recruitment as the process of generating job applicants and selection as choosing candidates for jobs. The recruitment process involves identifying vacancies, advertising positions, evaluating responses, and dealing with constraints. Selection involves preliminary interviews, tests, employment interviews, reference checks, job offers, and evaluating the selection program. Sources of recruitment can be internal through promotions or transfers, or external through agencies, advertisements, or online methods. The document discusses interview types and formats and provides guidance on conducting effective interviews. It concludes with an overview of selection criteria organizations consider when hiring.
Staffing is the process of hiring qualified candidates for specific positions in an organization. It involves recruiting employees by evaluating their skills and knowledge and assigning them appropriate job roles. The key functions of staffing include obtaining qualified personnel, ensuring the right person is recruited for the right job, promoting optimal utilization of human resources, increasing job satisfaction, and ensuring continuity and growth of the organization. Effective staffing is important for the efficient performance of other management functions like planning, organizing, and controlling. It also enables effective use of technology and other resources through qualified personnel.
The Rules Do Apply: Navigating HR ComplianceAggregage
https://www.humanresourcestoday.com/frs/26903483/the-rules-do-apply--navigating-hr-compliance
HR Compliance is like a giant game of whack-a-mole. Once you think your company is compliant with all policies and procedures documented and in place, there’s a new or amended law, regulation, or final rule that pops up landing you back at ‘start.’ There are shifts, interpretations, and balancing acts to understanding compliance changes. Keeping up is not easy and it’s very time consuming.
This is a particular pain point for small HR departments, or HR departments of 1, that lack compliance teams and in-house labor attorneys. So, what do you do?
The goal of this webinar is to make you smarter in knowing what you should be focused on and the questions you should be asking. It will also provide you with resources for making compliance more manageable.
Objectives:
• Understand the regulatory landscape, including labor laws at the local, state, and federal levels
• Best practices for developing, implementing, and maintaining effective compliance programs
• Resources and strategies for staying informed about changes to labor laws, regulations, and compliance requirements
2. Members:
Deepak Sharma
Rana Shubhendu Pratap Singh
Ravi Ranjan
Sake Ramesh
Supriya Soni
Suresh Rajan
Tomar Singh Chauhan
Vag Singh
Vikas Kumar
Vikash Kumar Singh
3. Definition of HRM
Human resource management is to make the most productive
use of human resource to the greatest benefits of the
organization and individuals.
Organization: profits and social commitments.
Individuals: development and achievement.
4. Definition By Pettigrew & Whipp
(1991)
“Human resource management relates to the total set of knowledge,
skills and attitudes that firms need to compete. It involves concern
for and action in the management of people, including: selection,
training and development, employee relations and compensation.
Such actions may be bound together by the action of an HRM
philosophy”
7. 2. Operative functions
The operative functions are those tasks or duties which are
specifically entrusted to the HR.
a) Employment
Employment of proper kind and number of persons necessary to
achieve the objectives of the organization.
b) Development
Training and development of personnel is a follow up of the
employment function.
c) Compensation
This function is concerned with the determination of adequate
and equitable remuneration of the employees in the organization of
their contribution to the organizational goals
8. d) Maintenance (Working Conditions and Welfare)
Provide good working conditions so that employees may like
their work and workplace and maintain their efficiency.
e) Motivation
Design a system of financial and non-financial rewards to
motivate the employees.
f) Industrial Relations
The human resource manager can do a great deal in
maintaining industrial peace in the organization as he is deeply
associated with various committees on discipline, labor welfare,
safety, grievance, etc.
g) Seperation
The personnel manager has to ensure the release of retirement
benefits to the retiring personnel in time.
9. 3. Advisory functions
Human resource manager is an expert in his area and so can
give advise on matters relating to human resources of the
organization.
a) Advised to Top Management
Personnel manager advises the top management in
formulation and evaluation of personnel programs, policies and
procedures.
b) Advised to Departmental Heads
Personnel manager offers advice to the heads of various
departments on matters such as manpower planning, job analysis
and design, recruitment and selection, placement, training,
performance appraisal, etc.
10. RECRUITMENT
Definition of Recruitment:
“Recruitment is the process of searching for prospective employees
and stimulating and encouraging them to apply before the job.”
- Flippo EB
“Recruitment acts set of activities and organization uses to attract
job candidates possessing appropriate characteristics to help the
organization reach its objectives.”
- William F Glueck
11. Recruitment can be defined as:
all activities directed towards locating potential employees
the attraction of applications from suitable applicants.
Recruitment is the process of finding and hiring suitable candidates
to fill the positions. The process involves searching, sourcing and
selecting right candidates for the roles to the organization
The aim of recruitment is to get the best person suited to the job
based on objective criteria for a particular job
12. Types of Recruitment
Based on the source recruitment is divided into categories:
1. Internal Recruitment: This involves recruiting candidates
within an organization to fill the vacancy.
2. External Recruitment: This involves recruiting a candidate
through references, networks, job portals or they may approach
recruitment agencies.
13. Internal Recruitment
Internal sources of recruitment are readily available to an
organization. Internal sources are primarily three -
1. Transfers: It implies shifting of an employee from one job to
another without any shift in change of responsibilities.
2. Promotion: It refers to shifting of an employee to a higher
position carrying higher status, responsibilities and pay.
3. Re-employment of ex-employees: It is one of the internal
sources of recruitment in which employees can be invited and
appointed to fill vacancies in the concern. There are situations when
ex-employees provide unsolicited applications also.
14. Advantages of Internal Recruitment
1. No cost and less time consuming
2. No need of training
3. Builds strong relationship with employees.
4. Motivates others of hard work to get high positions.
5. Easy to pick best talents within an organization very quickly
6. Long stay with the company when promoted to high position.
15. Disadvantages of Internal
Recruitment
1. The positions of the persons who is promoted will be vacant.
2. There may be partiality in promoting employees.
3. No new opportunities for external candidates.
4. Dissatisfied employees may quit if his co-worker is promoted to
high positions.
5. All vacancies cannot be filled from within organization.
16. External Recruitment
External sources are external to a concern. But it involves lot of time
and money. The external sources of recruitment includes
1. Educational Institutions:
Various companies visit many colleges which have made
arrangements for campus interviews and recruit candidates.
2. Recruiting Agencies:
There are certain professional organizations which look towards
recruitment and employment of people.
3. Employment exchanges:
These exchanges provide information about job vacancies to
jobseekers. These can be private and also government exchanges.
17. 4. Labor Contractors:
These are the specialist people who supply manpower to the
Factory or Manufacturing plants.
5. Recommendations:
Employees recruited through recommendations by trade unions.
6. Gate recruitment:
In this method a notice on the noticeboard of the company
specifying job details of job vacancies can be put. This method is
also called direct recruitment.
7. Advertisement:
It is an external source which has got an important place in
recruitment procedure. Medium used is Newspapers and
Television.
18. Advantages of External
Recruitment
1. Create new opportunities for external employees.
2. Best candidates can be placed for the roles
3. Cost of employees can be minimized.
4. Increase in the selection ratio.
5. There are less chances of partiality.
6. Uniqueness in employees worked for different companies can
take the current company to extra mile.
7. Able to recruit the skills it needs.
19. Disadvantages Of External
Recruitment
1. Time consuming and expensive.
2. Employees unfamiliar with organization and its orientation.
3. If higher level jobs are filled from external sources,
motivation and loyalty of existing staff effected.
4. Sourcing quality candidates becomes difficult for the
companies.
20. SELECTION PROCEDURE
Selection:
The Process of making a “Hire” or “No Hire” decision
regarding each applicant for a job.
OR
It is the process of choosing qualified individuals who
are available to fill the positions in organization.
21. Selection Criteria
The Purpose is to reduce the method of selection as much as
possible, and this means selecting those who will, by and
large ,perform well in the organization and reject who will
not .
22. FALSE NEGATIVE TRUE POSITIVE
FALSE POSITIVETRUE NEGATIVE
A C
DB
Selection Criteria
PerformanceCriteria
Cut-Off
Points
Cut-Off Points
24. Selection Process
The selection process refers to the steps involved in choosing
people who have the right qualifications to fill a current or future
job opening.
The selection process consists of five distinct aspects:
1. Criteria development: All individuals involved in the hiring
process should be properly trained on the steps for interviewing,
reviewing resumes and developing interview questions.
2. Application and resume review: People have different
methods of going through this process, but there are also
computer programs that can search for keywords in resumes
and narrow down the number of resumes that must be looked at
and reviewed.
25. 3. Interviewing: After the HR manager and/or manager have
determined which applications meet the minimum criteria, he
or she must select those people to be interviewed.
3. Test administration: Any number of tests may be
administered before a hiring decision is made. These include
drug tests, physical tests, personality tests, and cognitive tests.
4. Making the offer: The last step in the selection process is to
offer a position to the chosen
candidate. Compensation and benefits will be defined in an
offer.
27. 1. Testing
Tests measure knowledge, skill, and ability, as well as other
characteristics, such as personality traits.
TESTING TYPES
Cognitive
Ability Test
Integrity
Test
Personality
Test
Drug Test
Physical
Ability Test
Work
Sample
Testing
28. 2. Information Gathering
Common methods for gathering information include application
forms and resumes, biographical data, and reference checking.
I. Application Forms and Resumes
Generally ask for information such as address and phone number,
education, work experience, and special training.
II. Biographical Data
Historical events that have shaped a person’s behavior and
identity.
III. Reference Checking
Involves contacting an applicant’s previous employers, teachers, or
friends to learn more about the applicant issues with reference
checking.
29. 3. Interviewing
The interview is the most frequently used selection
method.
Interviewing occurs when applicants respond to questions posed
by a manager or some other organizational representative
(interviewer).
Typical areas in which questions are posed include education,
experience, knowledge of job procedures, mental ability,
personality, communication ability, social skills.
30. CAMPUS SELECTION
PROCEDURE
Some organization in India have recently started visiting
college campuses for recruitment purposes.
Selection teams from different organization, announces jobs,
market there companies – the opportunities, compensation
package, generate the shortlist of application and finally select
the desire number.
31. Campus Selection procedure includes following steps:
1. Organization’s presentation.
2. Written test /Online test (Aptitude +technical).
3. Group Discussion(Optional).
4. Technical Interviews.
5. HR interviews.
32. The advantage of this process are most of the applicants are
present at one place and interviews can often be arranged at
short notice.
Disadvantage of this type of recruitment is that organization
probably have to limit their selection only and “entry”
position. For higher level positions, campus recruitment is
neither feasible nor an attractive proposition.
33. TYPES OF INTERVIEW
Unstructured interview
Questions are changed to match the specific applicant.
for example, questions about the candidate’s background in relation
to their resume might be used.
Structured interview
There is a set of standardized questions based on the job
analysis, not on individual candidates’ resumes.
Different Techniques of Interview:
1. Traditional interview
Takes place in the office and consists of the interviewer and the
candidate, and a series of questions are asked and answered.
34. 2. Telephone interview
A telephone interview is often used to narrow the list of people
receiving a traditional interview.
3. Panel interview
A panel interview occurs when several people are interviewing
one candidate at the same time.
4. Information interview
Informational interviews are usually used when there is no
specific job opening, but the candidate is exploring possibilities in
a given career field.
35. 5. Meal interviews
Many organizations offer to take the candidate to lunch or dinner
for the interview. To gather more information about the person, such
as their manners and treatment of wait staff.
6. Group interview
Two or more candidates interview at the same time.
7. Video interviews
Same as traditional interviews, except that video technology is
used. This can be cost saving if one or more of your candidates are
from out of town. For example, Skype.
36. 8. Nondirective interview (Unstructured interview)
In a nondirective interview, some very general questions that are
planned ahead of time may be asked, but the candidate spends
more time talking than the interviewer. It can give candidates a
good chance to show their abilities.
38. Wages:
A Wage is a monetary compensation (or remuneration,
personnel expenses, labor) paid by an employer to an
employee in exchange for work done.
Wages are an example of expenses that are involved in
running a business.
Incentives:
An incentive is something that motivates an individual to
perform an action.
Incentives can be classified according to different ways in
which they motivates agents to take a particular course of
action.
39. Salary:
A salary is a form of periodic payment from an employer to an
employee which may be specified in a employment contract.
It’s a fixed amount of money or compensation paid to an
employee by an employer in return for work done. Salary is
determined by comparing market pay rates for performing
similar work in similar industries in the same region.
Bonus:
A bonus is an incentive payment that is given to an employee
beyond one's normal standard wage. It is generally given at
the end of the year and does not become part of base pay.
40. TYPES OF WAGES
Wages have been classified into three categories:
1. Living wages
2. Minimum wages
3. Fair wages
41. 1. Living Wages
The best definition is given by Justice Higgins which reads
"Living wage is a wage sufficient to ensure the workman
food, shelter, clothing, frugal comfort, provision for evil days etc.
as regard for the skill of an artisan, if he is one".
According to Fair Wages Committee Report:
"The living wage should enable the male earner to provide
himself and his family not merely the basic essentials of food,
clothing and shelter but a measure of frugal comfort including
education for the children, protection against ill-health,
requirement of essential social needs and measures of
insurance against old age.“
42. 2. Minimum Wages
“The minimum wage may be defined as the lowest wage necessary
to maintain a worker and his family at the minimum level of
subsistence, which includes food, clothing and shelter. “
Minimum wage in a country is fixed by the government in
consultation with business organizations and trade unions.
43. 3. Fair Wages
Fair wage is a mean between the living wage and the minimum
wage.
While the lower limit of the fair wage must obviously be the
minimum wage, the upper limit is the capacity of the industry
to pay fair wage compares reasonably with the average payment
of similar task in other trades or occupations requiring the same
amount of ability.
Fair wage depends on the present economic position as well as
on its future prospects.
44. Depending Factors of Fair Wages
1. Minimum Wages.
2. Capacity of the industry to pay.
3. Prevailing rates of wages in the same or similar occupations in
the same or neighboring localities.
4. Productivity of labor.
5. Level of national income and its distribution.
6. The place of the industry in the economy of the country.
45. TYPES OF WAGE PAYMENT
PLANS
All wage system must satisfy the basic need of the employee
for food, shelter, clothing and reasonable compensation for their
efforts.
1. Time Based Wage System
2. Piece Base Wage System
All other wage systems are combination of these two methods
of wage system.
46. 1. Time Wage System
Wages are calculated in the basis of time worked irrespective
of the quality of work done.
Thus the wages are calculated by multiplying the time spent
by predetermined rate of wages.
Wage = Time spent * Rate per unit of time
= T * R
where T = Time spent in hours
R = Rate per hour
47. Advantages of Time Wage system
Simple system and economical.
It gives workers a sense of security as they know that they will
be compensated for time spent within the organization
irrespective of efficiency.
Minimize material wastages as the work is not done in hurry.
This system works best on artistic jobs where quality of output
is of prime consideration.
Workers can easily understand the calculation of their wages.
48. Disadvantages of Time wage system
It requires continuous supervision.
As the workers are not in hurry to work, production can suffer.
Under this process the workers generally adopt the policy of go
slow.
This system has no positive inducement for workers so that
they could enhance their efficiency.
The system doesn’t differentiate between efficient and
inefficient workers. As wages are paid in terms of time spent, it
decrease the morale of efficient ones.
49. 2. Piece Rate System
Under this system, the wages are paid to a worker on the
basis of output produced by him without considering the time
taken in performing the work.
Wages = N * R
where N = no. of unit produced.
R = Rate per unit
The earning of workers depends on the speed of the work and
his own individual skills and efficiency.
50. Advantages of Piece Rate System
Works as an inducer for workers to produce more.
Here reward is related to efforts.
This method is fair to all as inefficient workers are panelized
and efficient worker are rewarded.
51. Disadvantages of Piece Rate System
In an effort to produce more and earn more workers may
exert themselves to fatigue.
Workers feels insecure in this system because they will lose
wages for the period of absence.
This system requires an up-to-date records of output produce
by each workers which increase the clerical works.
53. 1. Individual Incentive Wage Plans
Also known as Personnel Incentive Wage Plans.
These plans motivate the individuals to produce more. Such plans
may be based on time or production.
54. 1.1. Time Based Individual
Incentive Wage Plans
a) The Halsey Premium Plan
A mechanical engineer F.A. Halsey devised this plan.
It is a simple combination of the time - speed basis of payment.
The worker gets his wages for the time he works.
For the calculation of premium, a standard time is fixed for each
job on the basis of past performances. If the worker finishes the
job before this standard fixed time, he gets bonus for the time
saved by him.
55. Example:
Rate of bonus is 30% to 50% of the wage payable for the time saved.
Suppose a worker gets his wages @ Rs 60 per hour.
He finishes his work in 15 hours for standard time fixed is 20 hours.
Thus he saves 5 hours. He will get a total wage of Rs. 1050.
Wage for 15 hours @ Rs 60 i.e. = 15 * 60 = Rs 900
Wages for 5 hours (the time saved) @ 50% of the usual hourly rate =
(5 * 60 * 50 ) / 100 = Rs 150
So, total earning for him = Rs 900 + Rs 150 = Rs 1050
He will get Rs. 1050 and will also earn something more by utilizing the
time saved i.e., 5 hours.
56. b) The Rowan Premium Plan
It was introduced by James Rowan of David Rowan & Sons,
Glassgow in 1901.
It is modification in the Halsey's Plan.
The premium is calculated on a percentage of wages for the
time worked and not for the time saved.
This gives more bonus to the workers.
57. It is calculated by the following formula:
Total Wage = Time Taken × Time Rate + Time Saved /
Standard Time × Time Taken × Time Rate
Total Wage = ( 15 × 60 ) + ( ( 5 / 20) × 15 × 60) = 900 + (0.25 × 15
× 60 ) = 900 + 225
= Rs. 1125
Thus, if the worker finishes the job in 15 hours for standard time
of 20 hours and the hourly rate of wage is Rs. 60 , a worker will
get a total of Rs. 1125 .
58. c) Emerson's Efficiency Bonus Plan
This plan has been introduced by Harrington Emerson.
Under this plan every worker is guaranteed his day wages
irrespective of his performance.
A standard output is fixed, and is represents 100% efficiency.
According to the plan up to 66 2/3 % the guaranteed time wages are
paid to the workers, after this they are paid bonus at stated ratio of
the time wages.
Emerson used 32 empirical bonus percentages for efficiency beyond
66 2/3% i.e. 67%(approx.) under this plan, the bonus starts from
0.01% above 67% efficiency and increases to 20% at maximum
efficiency. After this point the bonus is 20% above the basic wages
plus 1% for each 1% increase in efficiency.
59. In a manufacturing concern the daily wages guaranteed for workers
is Rs. 2. The standard output for the
month is 2000 articles representing 100% efficiency. The rate of
wages is paid without bonus to those workers who show up to 66 2/3
% efficiency.
Beyond this bonus is payable on a graded scale:
Calculate the total earning of A, B, C, and D who have worked 26
days in a month. A’s output 1000 articles, B’s output 1800 articles,
C’s output 2000 articles and D’s output 2400 articles.
61. d) The Bedaux Points Premium Plan
Under this plan, Standard time is divided into Standard
minutes.
Each minute of standard time is called Bedaux point or B's.
B's are indicated on each job ticket.
Time wages are paid until 100% efficiency is reached.
Bonus is paid on the basis of number of Beduax Points saved.
Bonus at 75% of wages of Bedaux saved is paid to the worker
and 25% is paid to the foreman.
62. Thus the standard hour would consist of 60 B’s , or a standard
day of 8 hours ,480 B’s .
Suppose a worker earns 600 B’s in a day ; if the rate per point is
Rs 1 , his total earnings would be :
=(Rs 480 x 1 ) + ( 3 / 4 ) x ( 600 – 480 ) x 1
=Rs 480 + 90
= Rs 570
63. 1.2. Output Based Individual
Incentive Wage Plans
a) Taylor's differential Piece Rate Plan
Under this plan, a standard task is established by the
techniques of time and motion study and two piece rates are
set up for each job.
A high piece rate is allowed to those who can make equal to
higher than the standard performance; and for others who
cannot reach the standard, a lower piece rate exists.
This method penalize the slow and lazy worker and pays
incentive to efficient workers.
64. Example:
A standard output of 200 units is fixed in an 8 hours time. A
rate of 45% is paid if the output is 200 or more units and 35%, if
production is less than 200 units. Worker A has produced 240 units
and B produced 180 units.
The wages to be paid to worker, A will be Rs. 108 i.e. (240 x 0.45)
and that to B will be Rs63 i.e. (180 x 0.35).
65. 2. Merrick's Multiple Piece Rate Plan
It is an improvement over Taylor's Differential Plan.
According to this plan, three piece rates for a job is fixed.
None of these three piece rates are fixed below the normal
level.
These three rates are applied in the manner given below:
Rates Bonus Incentive
1. Up to 83 '/3% Normal Rate
2. Above 83 1/3 % to 100% 110% of Normal Rate
3. Above 110% 120% of Normal Rate
66. Example:
Case 1 -> Output = 80 units
Efficiency = (80 /100 ) x 100 = 80 %
Earnings : As the efficiency is less than 83% ,only the base pie-
rate applies : 80 x 10 = Rs. 800.
Case 2 -> Output = 90 units
Efficiency = (90 / 100 ) x 100 = 90 %
Earnings : As the efficiency is 83 % but less than 100 % , 110 %
the base pie-rate applies :(90 x 110 /100 ) x 10 = Rs. 990.
67. Case 3 -> Output = 110 units
Efficiency = (110 x 100 / 100 ) = 110 %
Earnings : As the efficiency exceeds 100 % , 120 % of the base
piece – rate applies : 110 x (120 / 100 ) x 10 = Rs 1320 .
68. c) The Gantt Plan
Introduced by H.L. Gantt
Its an associate of Taylor, devised this scheme on the basis of
Taylor's plan.
Under this scheme, fixed time rates are guaranteed.
Output standards and time standards are established for the
performance of each job.
Workers completing the standard job within the standard
time or a shorter time receive wages for the standard time
plus a bonus.
The bonus is a percentage, varying from 20 to 50, of the
wage for the standard time.
When a worker fails to turn out the required quantity of
products, he simply gets his time rate without any bonus.
69. 2. Group Incentive Wage Plan
Group incentive bonus schemes are introduced where it is difficult to
measure the performance of one worker is affected by the performance
of other workers.
Under this scheme, bonus is made payable to all the workers on a
collective basis. This bonus is promised by management in advance of
the commencement of work for securing in effective teamwork. In all
cases, a fixed standard of performance is established and the bonus is
given for the results shown over the standard performance.
70. Group incentive wage plan is most suitable in the following cases:
Where it is not possible to measure the performance of each
individual worker.
Where the number of workers making a group is not very large.
Where the workers making a group, possess the same or equal
skills and abilities.
Where the finished product is the result of collective efforts of a
group
71. Types of Group Incentive Wage
Plan
a) Priestman Plan
Proposed by Priestman's in 1917.
It is applied to workers who work in groups.
It provides for payment of group bonus in addition to the
ordinary time rate to the individual workers.
Thus if during a year, an enterprise is able to reach the
predetermined standard output or exceed the previous year's
output, workers are paid increased wages in the same ratio in
which output has increased.
72. Example:
If in 1990, the output per worker-hour was 10 units and in
1991, it rises to 11 units per worker-hour, the wages in 1991 would
be 10% higher than those in 1990.
73. Advantage : It brings about team-spirit among the
workers of a group. If the group as a whole works well, this
is bound to add to overall output of the enterprise and in
that case all the workers would stand to benefit.
Disadvantage : It may be insufficient to motivate
individual workers, particularly these who possess greater
skills and experience.
74. b) Scanlon Plan
This plan is the most popular for shaving the gains from
increase in productivity.
It provides for payment of 10% participating bonus for every
10% increase in productivity.
The benefit is extended to all employees except the members of
top management.
Under the plan, workers are not paid the entire amount of
bonus earned by them in any month.
One half of the first 15% of such bonus is set apart for the
creation of a reserve fund.
This fund is used to neutralize the effects of any fluctuations in
labor costs.