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Hotel administration

  2. 2. SYLABUSUnit I:Management - Definition - General Manager Duties and Responsibilities -Difference Between Administration and Management - Planning - organization -Direction - Co-ordination - Motivation (Maslow Theory) - Communication.Unit II:Human Resource Department - Role and Function of HRD- Human ResourcesPlanning - Job Analysis (Specification & Description) - Recruitment, Selectionand Training - Wages and Salary administration.Unit III:Financial & Management Accounting - Basic Accounting concept. Financialstatement, Fund flow analysis - Cash flow Analysis (Basic concept, Advantage,Disadvantage) Budgetary Control -Meaning - Classification -( simple problem incash budget & flexible Budget - Cost - Costing - Cost accounting - Classification- Cost Sheet.Unit IV:Sales & Marketing - Concept of Marketing - Marketing Mix - Product - ProductPlanning & Development - Product Life Cycle - Pricing - Types of Pricing -Factors affecting Pricing- channel of distribution & Types - advantage andDisadvantage - Promotion - Objectives Of Promotion activity - MarketingStrategy.Unit V:Entrepreneurship - Types - Classification - Entrepreneurship Development -Project Report - Institutional Finance to Entrepreneurs (ICICI, IDBI, IFCI, UTI,NARBAD etc.)
  3. 3. Unit - IManagement in all business and human organization activity is the act of getting people together toaccomplish desired goals and objectives.Management comprises planning, organizing, staffing, leading or directing, and controlling anorganization (a group of one or more people or entities) or effort for the purpose ofaccomplishing a goal. Resourcing encompasses the deployment and manipulation of humanresources, financial resources, technological resources, and natural resources.Management can also refer to the person or people who perform the act(s) of management.Management (Traditional Interpretation)There are a variety of views about this term. Traditionally, the term "management" refers to theactivities (and often the group of people) involved in the four general functions listed below.(Note that the four functions recur throughout the organization and are highly integrated): 1) Planning: including identifying goals, objectives, methods, resources needed to carry out methods, responsibilities and dates for completion of tasks. Examples of planning are strategic planning, business planning, project planning, staffing planning, advertising and promotions planning. 2) Organizing resources to achieve the goals in an optimum fashion. Examples are organizing new departments, human resources, office and file systems, re-organizing businesses, etc. 3) Leading,including to set direction for the organization, groups and individuals and also influence peopleto follow that direction. Examples are establishing strategic direction (vision, values, mission and/ or goals) and championing methods of organizational performance management to pursue thatdirection.4) Controlling, or coordinating,the organizations systems, processes and structures to reach effectively and efficiently reachgoals and objectives. This includes ongoing collection of feedback, and monitoring andadjustment of systems, processes and structures accordingly. Examples include use of financialcontrols, policies and procedures, performance management processes, measures to avoid risksetc.
  4. 4. Another common view is that "management" is getting things done through others. Yet anotherview, quite apart from the traditional view, asserts that the job of management is to supportemployees efforts to be fully productive members of the organizations and citizens of thecommunity.To most employees, the term "management" probably means the group of people (executives andother managers) who are primarily responsible for making decisions in the organization. In anonprofit, the term "management" might refer to all or any of the activities of the board,executive director and/or program directors.Management QuotationsManagement is efficiency in climbing the ladder of success; leadership determines whether theladder is leaning against the right wall.Stephen CoveyWhen a management with a reputation for brilliance tackles a business with a reputation for badeconomics, it is the reputation of the business that remains intact.Warren BuffettManagement is doing things right; leadership is doing the right things.Peter DruckerMost of what we call management consists of making it difficult for people to get their workdone.Peter DruckerManagement by objective works - if you know the objectives. Ninety percent of the time youdont.Peter DruckerThe most efficient way to produce anything is to bring together under one management as many aspossible of the activities needed to turn out the product.Peter DruckerSo much of what we call management consists in making it difficult for people to work.Peter DruckerDefinition of “Management” • “A set of management functions directed at the efficient and effective utilization of resources in the pursuit of organization goals.” - By Griffin. • “Management is the process of designing and maintaining an environment in which individuals working together in groups, efficiently accomplish selected aims.”- By Koontz and Weihrich.
  5. 5. 1. Skills needed for managers:Technical skill It refers to the ability to the tools, equipment procedure and techniques. Effective supervision and co-ordination of the work a group members or subordinates.Human skill 1. It refers to the ability of the manager to work effectively as group members and to build co-operative effort in team leaders.2. Needed to understand people.Conceptual skill 1. It is also called as design and problem 2. To see the organization and the various component of it as whole 3. To understand how its various parts and functions mesh together.2. Management level and functions. 1. Top-level management 2. Middle level management 3. Lower level management Top level management functions 1. To formulate goals and policies 2. To formulate budgets 3. To appoint top executives Middle level management functions. 1. To train motives &develop supervisory level 2. To monitor and control the operations performance Low level management 1. To train &develop workers 2. To assign job 3. To give orders and instructions 4. To report the information about the workers
  6. 6. Functions of Management:1.Planning in organizations and public policy is both the organizational process of creating andmaintaining a plan; and the psychological process of thinking about the activities required tocreate a desired goal on some scale. As such, it is a fundamental property of intelligent behavior.This thought process is essential to the creation and refinement of a plan, or integration of it withother plans, that is, it combines forecasting of developments with the preparation of scenarios ofhow to react to them.The term is also used to describe the formal procedures used in such an endeavor, such as thecreation of documents diagrams, or meetings to discuss the important issues to be addressed, theobjectives to be met, and the strategy to be followed. Beyond this, planning has a differentmeaning depending on the political or economic context in which it is used.Two attitudes to planning need to be held in tension: on the one hand we need to be prepared forwhat may lie ahead, which may mean contingencies and flexible processes. On the other hand,our future is shaped by consequences of our own planning and actions.Planning is a process for accomplishing purpose. It is blue print of business growth and a road mapof development. It helps in deciding objectives both in quantitative and qualitative terms. It issetting of goals on the basis of objectives and keeping in view the resources.What should a plan be?A plan should be a realistic view of the expectations. Depending upon the activities, a plan can belong range, intermediate range or short range. It is the framework within which it mustoperate. For management seeking external support, the plan is the most important document andkey to growth. Preparation of a comprehensive plan will not guarantee success, but lack of a soundplan will almost certainly ensure failure.
  7. 7. Purpose of PlanJust as no two organizations are alike, so also their plans. It is therefore important to prepare a plankeeping in view the necessities of the enterprise. A plan is an important aspect of business. It servesthe following three critical functions: • Helps management to clarify, focus, and research their businesss or projects development and prospects. • Provides a considered and logical framework within which a business can develop and pursue business strategies over the next three to five years. • Offers a benchmark against which actual performance can be measured and reviewed.Importance of the planning ProcessA plan can play a vital role in helping to avoid mistakes or recognize hidden opportunities.Preparing a satisfactory plan of the organization is essential. The planning process enablesmanagement to understand more clearly what they want to achieve, and how and when they cando it.A well-prepared business plan demonstrates that the managers know the business and that theyhave thought through its development in terms of products, management, finances, and mostimportantly, markets and competition.Planning helps in forecasting the future, makes the future visible to some extent. It bridgesbetween where we are and where we want to go. Planning is looking ahead.Essentials of planningPlanning is not done off hand. It is prepared after careful and extensive research. For acomprehensive business plan, management has to 1. Clearly define the target / goal in writing. 1. It should be set by a person having authority. 2. The goal should be realistic. 3. It should be specific.
  8. 8. 4. Acceptability 5. Easily measurable 2. Identify all the main issues which need to be addressed. 3. Review past performance. 4. Decide budgetary requirement. 5. Focus on matters of strategic importance. 6. What are requirements and how will they be met? 7. What will be the likely length of the plan and its structure? 8. Identify shortcomings in the concept and gaps. 9. Strategies for implementation. 10. Review periodically.2. Organizing (also spelled organising) is the act of rearranging elements following one or morerules.Anything is commonly considered organized when it looks like everything has a correct order orplacement. But its only ultimately organized if any element has no difference on time taken to findit. In that sense, organizing can also be defined as to place different objects in logicalarrangement for better searching.Organizations are groups of people frequently trying to organize some specific subject, such aspolitical issues. So, even while organizing can be viewed as a simple definition, it can get ascomplex as organizing the worlds information.Nature of organizationThe following are the important characteristics of organisation.Division of work or specializationThe entire philosophy of organisation depends on the concept of specialization. In specialization,various activities are assigned to different people who are specialists in that area. Specializationimproves efficiency. Thus, organisation helps in division of work and assigning duties todifferent people.
  9. 9. Orientation towards goalsEvery organisation has its own purposes and objectives. Organizing is the function employed toachieve the overall goals of the organisation. Organisation harmonies the individual goals of theemployees with overall objectives of the firm.Composition of individuals and groupsIndividuals form a group and the groups form an organisation. Thus, organisation is thecomposition of individual and groups. Individuals are grouped into departments and their work iscoordinated and directed towards organizational goals.Differentiated functionsThe organisation divides the entire work and assigns the tasks to individual in-order to achieve theorganizational objectives each one has to perform a different task and tasks of oneindividuals must be coordinated with the tasks of others.Continues processAn organization is a group of people with defined relationship to each other that allows them towork together achieve the goals of the organisation. This relationship do not come to end aftercompleting a task. Organisation is a never ending process.Purpose or importance of organizationHelps to achieve organizational goalOrganization is employed to achieve the overall objectives of business firms. Organizationfocuses attention of individual’s objectives towards overall objectives.Optimum use of resourcesTo make optimum use of resources such as men, material, money, machine and method, it isnecessary to design an organization properly. Work should be divided and right people should begiven right jobs to reduce the wastage of resources in an organization.To perform managerial functionPlanning, Organizing, Staffing, Directing and Controlling cannot be implemented without properorganization.
  10. 10. Facilitates growth and diversificationA good organization structure is essential for expanding business activity. Organization structuredetermines the input resources needed for expansion of a business activity similarly organization isessential for product diversification such as establishing a new product line.Human treatment of employeesOrganization has to operate for the betterment of employees an must not encourage monotony ofwork due to higher degree of specialization. Now, organization has adapted the modern concept ofsystems approach based on human relations and it discards the traditional productivity andspecialization approach.ApplicationsOrganizing, in company’s point of view, is the management function that usually follows afterplanning. And it involves the assignment of tasks, the grouping of tasks into departments and theassignment of authority and allocation of resources across the organization.StructureThe framework in which the organization defines how tasks are divided, resources are deployed,and departments are coordinated. 1. A set of formal tasks assigned to individuals and departments. 2. Formal reporting relationships, including lines of authority, decision responsibility, number of hierarchical levels and span of managers control. 3. The design of systems to ensure effective coordination of employees across departments.Work specializationWork specialization (also called division of labour) is the degree to which organizational tasks aresub-divided into individual jobs. With too much specialization, employees are isolated and doonly a single, tiny, boring job. Many organizations enlarge jobs or rotate assigned tasks to providegreater challenges.Chain of commandThe chain of command is the unbroken line of authority that links all individuals in anorganization, and specifies who reports to whom. • o Unity of Command - one employee is held accountable to only one supervisor o Scalar principle - clearly defined line of authority in the organization that includes all employees
  11. 11. Authority, responsibility, and accountability • Authority is a managers formal and legitimate right to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes. • Responsibility means an employees duty to perform assigned task or activities. • Accountability means that those with authority and responsibility must report and justify task outcomes to those above them in the chain of command.DelegationDelegation is the process managers use to transfer authority and responsibility to positions belowthem. Organizations today tend to encourage delegation from highest to lowest possible levels.Delegation can improve flexibility to meet customers’ needs and adaptation to competitiveenvironments. Managers often find delegation difficultTypes of authority (and responsibility)Line authority managers have the formal power to direct and control immediate subordinates. Thesuperior issues orders and is responsible for the result—the subordinate obeys and isresponsible only for executing the order according to instructions.Functional authority is where managers have formal power over a specific subset of activities. Forinstance, the Production Manager may have the line authority to decide whether and when a newmachine is needed but the Controller demands that a Capital Expenditure Proposal issubmitted first, showing that the investment will have a yield of at least x%; or, a legaldepartment may have functional authority to interfere in any activity that could have legalconsequences. This authority would not be functional but it would rather be staff authority if suchinterference is "advice" rather than "order".Staff authority is granted to staff specialists in their areas of expertise. It is not a real authorityin the sense that a staff manager does not order or instruct but simply advises, recommends, andcounsels in the staff specialists area of expertise and is responsible only for the quality of theadvice (to be in line with the respective professional standards etc) It is a communicationrelationship with management. It has an influence that derives indirectly from line authority at ahigher level.Span of managementFactors influencing larger span of management. 1. Work performed by subordinates is stable and routine. 2. Subordinates perform similar work tasks. 3. Subordinates are concentrated in a single location. 4. Subordinates are highly trained and need little direction in performing tasks. 5. Rules and procedures defining task activities are available. 6. Support systems and personnel are available for the managers. 7. Little time is required in non-supervisory activities such as coordination with other departments or planning. 8. Managers personal preferences and styles favour a large span.
  12. 12. Tall versus flat structure • Tall - A management structure characterized by an overall narrow span of management and a relatively large number of hierarchical levels. Tight control. • Flat - A management structure characterized by a wide span of control and relatively few hierarchical levels. Loose control. Facilitates delegation.Centralization, decentralization, and formalization • Centralization - The location of decision making authority near top organizational levels. • Decentralization - The location of decision making authority near lower organizational levels. • Formalization - The written documentation used to direct and control employees.DepartmentalizationThe basis on which individuals are grouped into departments and departments into totalorganizations.Approach options include; 1. Functional - by common skills and work tasks 2. Divisional - common product, program or geographical location 3. Matrix - combination of Functional and Divisional 4. Team - to accomplish specific tasks 5. Network - departments are independent providing functions for a central core breakerImportance of organizing • Organizations are often troubled by how to organize, particularly when a new strategy is developed • Changing market conditions or new technology requires change • Organizations seek efficiencies through improvements in organizing.3. DIRECTING is said to be a process in which the managers instruct, guide and oversee theperformance of the workers to achieve predetermined goals. Directing is said to be the heart ofmanagement process. Planning, organizing, staffing has got no importance if direction functiondoes not take place.Directing initiates action and it is from here actual work starts. Direction is said to be consistingof human factors. In simple words, it can be described as providing guidance to workers is doingwork. In field of management, direction is said to be all those activities which are designed to
  13. 13. encourage the subordinates to work effectively and efficiently. According to Human, “Directingconsists of process or technique by which instruction can be issued and operations can be carried outas originally planned” Therefore, Directing is the function of guiding, inspiring, overseeing andinstructing people towards accomplishment of organizational goals.Direction has got following characteristics: 1. Pervasive Function - Directing is required at all levels of organization. Every manager provides guidance and inspiration to his subordinates. 2. Continuous Activity - Direction is a continuous activity as it continuous throughout the life of organization. 3. Human Factor - Directing function is related to subordinates and therefore it is related to human factor. Since human factor is complex and behaviour is unpredictable, direction function becomes important. 4. Creative Activity - Direction function helps in converting plans into performance. Without this function, people become inactive and physical resources are meaningless. 5. Executive Function - Direction function is carried out by all managers and executives at all levels throughout the working of an enterprise, a subordinate receives instructions from his superior only. 6. Delegate Function - Direction is supposed to be a function dealing with human beings. Human behavior is unpredictable by nature and conditioning the people’s behavior towards the goals of the enterprise is what the executive does in this function. Therefore, it is termed as having delicacy in it to tackle human behavior. Importance of Directing FunctionDirecting or Direction function is said to be the heart of management of process and therefore, isthe central point around which accomplishment of goals take place. A few philosophers callDirection as “Life spark of an enterprise”. It is also called as on actuating function ofmanagement because it is through direction that the operation of an enterprise actually starts.Being the central character of enterprise, it provides many benefits to a concern which are asfollows:-
  14. 14. 1. It Initiates Actions - Directions is the function which is the starting point of the work performance of subordinates. It is from this function the action takes place, subordinates understand their jobs and do according to the instructions laid. Whatever are plans laid, can be implemented only once the actual work starts. It is there that direction becomes beneficial.2. It Ingrates Efforts - Through direction, the superiors are able to guide, inspire and instruct the subordinates to work. For this, efforts of every individual towards accomplishment of goals are required. It is through direction the efforts of every department can be related and integrated with others. This can be done through persuasive leadership and effective communication. Integration of efforts bring effectiveness and stability in a concern.3. Means of Motivation - Direction function helps in achievement of goals. A manager makes use of the element of motivation here to improve the performances of subordinates. This can be done by providing incentives or compensation, whether monetary or non - monetary, which serves as a “Morale booster” to the subordinates Motivation is also helpful for the subordinates to give the best of their abilities which ultimately helps in growth.4. It Provides Stability - Stability and balance in concern becomes very important for long term sun survival in the market. This can be brought upon by the managers with the help of four tools or elements of direction function - judicious blend of persuasive leadership, effective communication, strict supervision and efficient motivation. Stability is very important since that is an index of growth of an enterprise. Therefore a manager can use of all the four traits in him so that performance standards can be maintained.5. Coping up with the changes - It is a human behavior that human beings show resistance to change. Adaptability with changing environment helps in sustaining planned growth and becoming a market leader. It is directing function which is of use to meet with changes in environment, both internal as external. Effective communication helps in coping up with the changes. It is the role of manager here to communicate the nature and contents of changes very clearly to the subordinates. This helps in clarifications, easy adoptions and smooth running of an enterprise. For example, if a concern shifts from handlooms to power looms, an important change in technique of production takes place. The resulting factors are less of manpower and more of machinery. This can be resisted
  15. 15. by the subordinates. The manager here can explain that the change was in the benefit of the subordinates. Through more mechanization, production increases and thereby the profits. Indirectly, the subordinates are benefited out of that in form of higher remuneration. 6. Efficient Utilization of Resources - Direction finance helps in clarifying the role of every subordinate towards his work. The resources can be utilized properly only when less of wastages, duplication of efforts, overlapping of performances, etc. doesn’t take place. Through direction, the role of subordinates become clear as manager makes use of his supervisory, the guidance, the instructions and motivation skill to inspire the subordinates. This helps in maximum possible utilization of resources of men, machine, materials and money which helps in reducing costs and increasing profits.From the above discussion, one can justify that direction, surely, is the heart of managementprocess. Heart plays an important role in a human body as it serves the function pumping bloodto all parts of body which makes the parts function. In the similar manner, direction helps thesubordinates to perform in best of their abilities and that too in a healthy environment. Themanager makes use of the four elements of direction here so that work can be accomplished in aproper and right manner. According to Earnest Dale, “Directing is what has to be done and inwhat manner through dictating the procedures and policies for accomplishing performancestandards”. Therefore, it is rightly said that direction is essence of management process. General ManagerGeneral Manager (sometimes abbreviated GM) is a descriptive term for certain executives in abusiness operation. It is also a formal title held by some business executives, most commonly in thehospitality industry.In hotels, the General Manager is the executive manager responsible for the overall operation of ahotel establishment. The General Manager holds ultimate authority over the hotel operation andusually reports directly to a corporate office or hotel owner.
  16. 16. Common duties of a General Manager include hiring and management of a management team,overall management of hotel staff, budgeting and financial management, creating and enforcingbusiness objectives and goals, managing projects and renovations, management of emergencies andother major issues involving guests, employees, or the facility, public relations with the media,local governments, and other businesses, and many additional duties.The extent of duties of a hotel General Manager vary significantly depending on the size of the hoteland company; for example, General Managers of smaller hotels may have additional duties such asaccounting, human resources, payroll, purchasing, and other duties that would usually be handled byother managers or departments in a larger hotel.A hotel General manager is responsible for the day-to-day management of a hotel and its staff andhas commercial accountability for planning, organising and directing all hotel services, includingfront-of-house (reception, concierge, and reservations), food and beverage operations andhousekeeping. In larger hotels, managers often have a specific remit (guest services,accounting, and marketing) and make up a general management team.While taking a strategic overview and planning ahead to maximize profits, the manager mustalso pay attention to the details, setting the example for staff to deliver a standard of service andpresentation that meets guests needs and expectations. Business and people management areequally important elements.Typical work activitiesTypical work activities vary depending on the size and type of hotel, but may include: • Planning and organising accommodation, catering and other hotel services; • Promoting and marketing the business; • Managing budgets and financial plans and controlling expenditure; • Maintaining statistical and financial records; • Setting and achieving sales and profit targets; • Recruiting, training and monitoring staff; • Planning work schedules for individuals and teams; • Meeting and greeting customers; • Dealing with customer complaints and comments;
  17. 17. • Addressing problems and troubleshooting; • Ensuring events and conferences run smoothly; • Supervising maintenance, supplies, renovations and furnishings; • Dealing with contractors and suppliers; • Ensuring security is effective; • Carrying out inspections of property and services; • Ensuring compliance with licensing laws, health and safety and other statutory regulations.The manager of a large hotel may have less contact with guests but will spend time meetingheads of department to coordinate and monitor the progress of business strategies. In a smallerestablishment, the manager is much more involved in the hands-on day-to-day running of thehotel, which may include carrying out reception duties or serving meals if the need arises.A significant number of hotel managers are self-employed which often results in a broader set ofregular responsibilities, from greeting guests to managing finances. Difference between Administration /ManagementAdministration can be defined as the universal process of efficiently organizing people and resources so to direct activities toward common goals and objectives. Administration is both an art and a science (if an inexact one), and arguably a craft, as administrators are judged ultimately by their performance. Administration must incorporate both leadership and vision.Management is viewed as a subset of administration, specifically associated with the technical and mundane elements within an organizations operation. It stands distinct from executive or strategic work.Management is closer to the employees. Administration is over the management and more over the money of the organization and licensing of an organization.Management manages employees. Administration manages the outside contacts and the facility as a whole. As a manger, you can also be administrator but as an administrator, you may not be a manager.
  18. 18. Administration is the paper work. Management is how you deal with the people or people management.There are many factors according to which administration can be distinguished frommanagement. These are as follows:Nature of workAdministration: It is concerned about the determination of objectives and major policies of anorganization.Management: It puts into action the policies and plans laid down by the administration.Type of functionAdministration: It is a determinative function.Management: It is an executive function.ScopeAdministration: It takes major decisions of an enterprise as a whole.Management: It takes decisions within the framework set by the administration.Level of authorityAdministration: It is a top-level activity.Management: It is a middle level activity.Nature of statusAdministration: It consists of owners who invest capital in and receive profits from anenterprise.Management: It is a group of managerial personnel who use their specialized knowledge tofulfill the objectives of an enterprise.Nature of usageAdministration: It is popular with government, military, educational, and religiousorganizations.Management: It is used in business enterprises.
  19. 19. Decision makingAdministration: Its decisions are influenced by public opinion, government policies, social, andreligious factors.Management: Its decisions are influenced by the values, opinions, and beliefs of the managers.Main functionsAdministration: Planning and organizing functions are involved in it.Management: Motivating and controlling functions are involved in it.AbilitiesAdministration: It needs administrative rather than technical abilities.Management: It requires technical activitiesManagement handles the employers.
  23. 23. CommunicationCommunication is a process of transferring information from one entity to another.Communication processes are sign-mediated interactions between at least two agents whichshare a repertoire of signs and semiotic rules. Communication is commonly defined as "theimparting or interchange of thoughts, opinions, or information by speech, writing, or signs".Although there is such a thing as one-way communication, communication can be perceivedbetter as a two-way process in which there is an exchange and progression of thoughts,feelings or ideas (energy) towards a mutually accepted goal or direction (information).Communication is a process whereby information is enclosed in a package and is channeledand imparted by a sender to a receiver via some medium. The receiver then decodes themessage and gives the sender a feedback. All forms of communication require a sender, amessage, and a receiver. Communication requires that all parties have an area ofcommunicative commonality. There are auditory means, such as speech, song, and tone ofvoice, and there are nonverbal means, such as body language, sign language, paralanguage,touch, eye contact, and writing.Process of Communication:
  24. 24. Types of CommunicationCommunication can occur via various processes and methods and depending on the channel usedand the style of communication there can be various types of communication.Types of Communication Based on Communication ChannelsBased on the channels used for communicating, the process of communication can be broadlyclassified as verbal communication and non-verbal communication. Verbal communicationincludes written and oral communication whereas the non-verbal communication includes bodylanguage, facial expressions and visuals diagrams or pictures used for communication. • Verbal Communication Verbal communication is further divided into written and oral communication. The oral communication refers to the spoken words in the communication process. Oral communication can either be face-to-face communication or a conversation over the phone or on the voice chat over the Internet. Spoken conversations or dialogs are influenced by voice modulation, pitch, volume and even the speed and clarity of speaking. The other type of verbal communication is written communication. Written communication can be either via snail mail, or email. The effectiveness of written communication depends on the style of writing, vocabulary used, grammar, clarity and precision of language. • Nonverbal Communication Non-verbal communication includes the overall body language of the person who is speaking, which will include the body posture, the hand gestures, and overall body movements. The facial expressions also play a major role while communication since the expressions on a person’s face say a lot about his/her mood. On the other hand gestures like a handshake, a smile or a hug can independently convey emotions. Non verbal communication can also be in the form of pictorial representations, signboards, or even photographs, sketches and paintings.
  25. 25. Types of Communication Based on Style and PurposeBased on the style of communication, there can be two broad categories of communication,which are formal and informal communication that have their own set of characteristic features. • Formal Communication: Formal communication includes all the instances where communication has to occur in a set formal format. Typically this can include all sorts of business communication or corporate communication. The style of communication in this form is very formal and official. Official conferences, meetings and written memos and corporate letters are used for communication. Formal communication can also occur between two strangers when they meet for the first time. Hence formal communication is straightforward, official and always precise and has a stringent and rigid tone to it. • Informal Communication: Informal communication includes instances of free unrestrained communication between people who share a casual rapport with each other. Informal communication requires two people to have a similar wavelength and hence occurs between friends and family. Informal communication does not have any rigid rules and guidelines. Informal conversations need not necessarily have boundaries of time, place or even subjects for that matter since we all know that friendly chats with our loved ones can simply go on and on.Other Methods of CommunicationIn addition to manual language, people with hearing problems can use several othercommunication strategies. The amount of hearing loss and the age at which it occurs, ofteninfluences which strategies are most appropriate.For infants and young children with severe-to-profound hearing loss, the choice ofcommunication strategy taught during key “windows of opportunity” early in life may influence theskill sets that can be mastered later in life.
  26. 26. Auditory / oral - The auditory-oral method teaches children to: Use the childs hearing throughamplification and to employ auditory and lip reading training. To talk, use their hearing as much asthey can, read lips. Use other clues to understand what people are saying. It excludes teachingmanual language (sign language). The goal is to “mainstream” children with hearing problems tolive independently in the hearing world.Auditory / verbal - The auditory-verbal (AV) method teaches children to:Use whatever hearing they have (residual hearing) to listen. Lip reading is discouraged. Thebelief is that by listening to other people, children can learn to speak better by listening to otherpeople. Children practice with therapist and use hearing aids, cochlear implants or other devices.Cued Speech - A visual system to make speech (lip) reading easier. Eight handshapes (cues) in fourpositions represent different sounds of speech that look the same on lips (such as "p" and "b"). Oftenused to help children learn speech reading or for those who may not fully understand speech withthe use of hearing aids.Finger spelling - A method in which hand positions represent each letter of the alphabet. Wordsare spelled out one letter at a time. In some countries, like the United States, the finger spellingalphabet is represented with one hand; in other countries, such as Australia, finger spelling usestwo hands.Signed Exact English (SEE) - A technique developed in 1972 in which manual gestures (signs)create an exact word-for-word representation of spoken English. One of the most common uses ofSEE has been the translation of classic children’s books. A combination of SEE and ASL (AmericanSign Language) is called Pidgin Signed English (or PSE).Speech Reading (Lip Reading) - A “listener” watches a speakers lip movements, facialexpressions, and body language to determine what they are saying. This technique can be usefulfor Deaf people and for those who may not fully understand speech with the use of hearing aids.Total Communication - A technique that uses all means of communication for teachingchildren with severe-to-profound hearing loss. In a classroom, this usually means a teacher usingsigned and spoken languages at the same time. This is also called signed supported English orsigned supported speech. Some feel this method broadens communication and learning skills.
  27. 27. UNIT IIHuman resources: Human resources are a term used to refer to how people are managed by organizations. The field has moved from a traditionally administrative function to a strategic one that recognizes the link between talented and engaged people and organizational success.The field draws upon concepts developed in Industrial/Organizational Psychology and System Theory. Human resources have at least two related interpretations depending on context. The original usage derives from political economy and economics, where it was traditionally called labor, one of four factors of production although this perspective is changing as a function of new and ongoing research into more strategic approaches at national levels.This first usage is used more in terms of human resources development, and can go beyond just organizations to the level of nations.The more traditional usage within corporations and businesses refers to the individuals within a firm or agency, and to the portion of the organization that deals with hiring, firing, training, and other personnel issues, typically referred to as human resources management.Key functions of Human Resource Management: 1. Recruitment and Selection 2. Redundancy 3. Industrial and Employee Relations 4. Record keeping of all personal data 5. Total Rewards: Employee benefits and compensation 6. Confidential advice to internal customers in relation to problems at work 7. Career development 8. Competency Mapping (Competency mapping is a process an individual uses to identify and describe competencies that are the most critical to success in a work situation or work role.) 9. Time motion study is related to HR Function 10. Performance Appraisal.
  28. 28. Role of Human Resource DepartmentHuman Resources are exactly it says: resources for humans - within the workplace! Its mainobjective is to meet the organizational needs of the company it represents and the needs of thepeople hired by that company. In short, it is the hub of the organization serving as a liaisonbetween all concerned. 1. Organizational Development: To ensure its success, a company must establish a hierarchal reporting system. The funnel of responsibility is critical to the efficiency of a smoothly operating business entity in which there is a clearly defined understanding of who is responsible for what.They provide consultation to a companys management team to identify what the companys corebusiness and culture is about, and proceeds to plan and map the companys organizationalinfrastructure to support those needs. 2. Employee Recruitment and Selection Process: There are many steps to recruiting and selecting qualified employees. First, a department head must inform the HR manager of an opening in their department.Then the HR manager must obtain the job description to formulate a Job Description Sheet forpublication either internally, publicly, or both. Then HR must field the (many) responses to that jobannouncement to weed out the qualified from the unqualified applicants.Once that is completed, the interview process must be coordinated. They prepare the jobdescription, contact the newspaper, run the ad, field the calls, compile a list of potentialcandidates, submit that list to the departments hiring manager for approval and selection, contact thechosen candidates to set up preliminary interviews, and interview the candidates!Although most interviews are with the hiring manager or their associates, not all applicants get tomeet with the departments hiring manager right away. It is not uncommon for a company tofilter out those who fail to impress the HR manager first. For those select few who make itthrough, the HR manager schedules interviews between the departments hiring manager andpotential candidates, and follows up with the hiring process to establish the new hire with thecompany.
  29. 29. 3. Employee Training & Development: As a company and the requirements of a positionevolve, a company needs to take certain measures to ensure a highly skilled workforce is inplace.The Human Resources Department oversees the skills development of companys workforce,acting as an in-house training center to coordinate training programs either on-site, off-site, or inthe field. This might include on-going company training, outside training seminars, or evencollege, in which case an employee will receive tuition reimbursement upon earning a passinggrade.4. Employee Compensation Benefits: This covers salaries, bonuses, vacation pay, sick leavepay, Workers Compensation, and insurance policies such as medical, dental, life, and 401k.The Human Resources Department is responsible for developing and administering a benefitscompensation system that serves as an incentive to ensure the recruitment and retainment of toptalent that will stay on with the company.When an employee is hired, the companys Benefits Coordinator is required to meet withemployees one-on-one or in small group settings to explain their benefits package. This oftenrequires an employee to make an informed decision and to provide their signature for processingpurposes5. Employee Relations: With the increased rise in unethical practices and misbehaviors takingplace in todays workplace such as age, gender, race, and religion discrimination and sexualharassment, there needs to be mandatory compliance with governing rules and regulations toensure fair treatment of employees. In short, employees need to know they have a place to turnwhen a supervisor abuses his or her authority in anyway.Whether corporate or union, the HR Department will get involved to act as arbitrator and liaisonbetween legal entities, regulatory agencies such as Human Rights, supervisors (who might befalsely accused), and employees to properly address and resolve the issue at hand.
  30. 30. 6. Policy Formulation:Regardless of the organizations size, company policies and procedures must be established toensure order in the workplace. These policies and procedures are put in place to provide eachemployee with an understanding of what is expected of them.Similarly, these policies and procedural guidelines will assist hiring managers in evaluating theiremployees performance. These policies can be established company-wide or used to define eachdepartments function. It is Human Resources responsibility to collaborate with departmentmanagers on the formulation of these policies and regulations to ensure a cohesive organization. Acommon practice is the development and implementation of an Employee Procedure Manual orEmployee Handbook that is either distributed to each employee at the time of hire or a master copyallocated one to a department.7.The Human Resources Information Systems:keeps track of the vast amount of data, a human resources department must have a good HRIS inplace to automate many functions such as planning and tracking costs, monitoring and evaluatingproductivity levels, and the storing and processing of employee records such as payroll, benefits, andpersonnel files.It is very important that you, the job seeker, understand how the HR function works -specifically in the area of candidate recruitment.If you are considering a career in human resources, you can choose to become a Generalist or aSpecialist. Whether a job seeker or a HR professional, research a company well before applying fora position.
  31. 31. Human Resource planningHuman Resource Planning: an Introduction was written to draw these issues to the attention of HRor line managers. We address such questions as: What is human resource planning? How do organisations undertake this sort of exercise? What specific uses does it have?In dealing with the last point we need to be able to say to hard pressed managers: why spendtime on this activity rather than the other issues bulging your in tray? The report tries to meet thisneed by illustrating how human resource planning techniques can be applied to four keyproblems. It then concludes by considering the circumstances are which human Resourcing canbe used.1. Determining the numbers to be employed at a new locationIf organisations overdo the size of their workforce it will carry surplus or underutilized staff.Alternatively, if the opposite misjudgment is made, staff may be overstretched, making it hard orimpossible to meet production or service deadlines at the quality level expected. So the questionswe ask are: • How can output be improved your through understanding the interrelation between productivity, work organisation and technological development? What does this mean for staff numbers? • What techniques can be used to establish workforce requirements? • Have more flexible work arrangements been considered? • How are the staffs you need to be acquired?The principles can be applied to any exercise to define workforce requirements, whether it be abusiness start-up, a relocation, or the opening of new factory or office.
  32. 32. 2. Retaining your highly skilled staffIssues about retention may not have been to the fore in recent years, but all it needs is fororganisations to lose key staff to realize that an understanding of the pattern of resignation isneeded. Thus organisations should:  Monitor the extent of resignation  Discover the reasons for it  Establish what it is costing the organisation  Compare loss rates with other similar organisations.Without this understanding, management may be unaware of how many good quality staff arebeing lost. This will cost the organisation directly through the bill for separation, recruitment andinduction, but also through a loss of long-term capability.Having understood the nature and extent of resignation steps can be taken to rectify the situation.These may be relatively cheap and simple solutions once the reasons for the departure ofemployees have been identified. But it will depend on whether the problem is peculiar to yourown organisation, and whether it is concentrated in particular groups (eg by age, gender, grade orskill).3. Managing an effective downsizing programmeThis is an all too common issue for managers. How is the workforce to be cut painlessly, while at thesame time protecting the long-term interests of the organisation? A question made all the harder bythe time pressures management is under, both because of business necessities andemployee anxieties. HRP helps by considering: • the sort of workforce envisaged at the end of the exercise • the pros and cons of the different routes to get there • how the nature and extent of wastage will change during the run-down • the utility of retraining, redeployment and transfers • What the appropriate recruitment levels might be.
  33. 33. Such an analysis can be presented to senior managers so that the cost benefit of various methods ofreduction can be assessed, and the time taken to meet targets established.If instead the CEO announces on day one that there will be no compulsory redundancies andvoluntary severance is open to all staff, the danger is that an unbalanced workforce will result,reflecting the take-up of the severance offer. It is often difficult and expensive to replace lostquality and experience.4. Where will the next generation of managers come from?Many senior managers are troubled by this issue. They have seen traditional career pathsdisappear. They have had to bring in senior staff from elsewhere. But they recognise that while thismay have dealt with a short-term skills shortage, it has not solved the longer term question ofmanagerial supply: what sort, how many, and where will they come from? To address thesequestions you need to understand: • the present career system (including patterns of promotion and movement, of recruitment and wastage) • the characteristics of those who currently occupy senior positions • the organization’s future supply of talent.This then can be compared with future requirements, in number and type. These will of course beaffected by internal structural changes and external business or political changes. Comparing yourcurrent supply to this revised demand will show surpluses and shortages which will allow you to takecorrective action such as: • recruiting to meet a shortage of those with senior management potential • allowing faster promotion to fill immediate gaps • developing cross functional transfers for high fliers • hiring on fixed-term contracts to meet short-term skills/experience deficits • Reducing staff numbers to remove blockages or forthcoming surpluses.Thus appropriate recruitment, deployment and severance policies can be pursued to meetbusiness needs. Otherwise processes are likely to be haphazard and inconsistent.
  34. 34. How can HRP be applied?The report details the sort of approach companies might wish to take. Most organisations arelikely to want HRP systems: • which are responsive to change • where assumptions can easily be modified • that recognize organizational fluidity around skills • that allow flexibility in supply to be included • that are simple to understand and use • Which are not too time demanding.To operate such systems organisations need: • appropriate demand models • good monitoring and corrective action processes • comprehensive data about current employees and the external labor market • an understanding how Resourcing works in the organisation.If HRP techniques are ignored, decisions will still be taken, but without the benefit ofunderstanding their implications. Graduate recruitment numbers will be set in ignorance ofdemand, or management succession problems will develop unnoticed. As George Bernard Shawsaid: ‘to be in hell is to drift; to be in heaven is to steer’. It is surely better if decision makers followthis maxim in the way they make and execute Resourcing plans. JOB ANALYSISJOB:“Job is a ‘group of tasks to be performed everyday.”JOB ANALYSISDefinition 1: (Process of Collecting Information)“Job Analysis is a process of studying and collecting information relating to operations andresponsibilities of a specific job. The immediate products of this analysis are ‘Job Description’ and‘Job Specifications’.”
  35. 35. Definition 2: (Systematic Exploration of Activities)“Job Analysis is a systematic exploration of activities within a job. It is a basic technicalprocedure that is used to define duties and responsibilities and accountabilities of the job.”Definition 3: (Identifying Job Requirements)“Job is a collection of tasks that can be performed by a single employee to contribute to theproduction of some product or service, provided by the organization. Each job has certain abilityrequirements (as well as certain rewards) associated with it. Job Analysis is a process used toidentify these requirements.”MEANING OF JOB ANALYSISJob Analysis is a process of collecting information about a job. The process of job analysisresults into two sets of data.• Job Description• Job SpecificationAs a result Job analysis involves the following steps in a logical order.Steps of Job Analysis1. Collecting and recording job information2. Checking the job information for accuracy3. Writing job description based on information collected to determine the skills, knowledge, abilities and activities required4. Updating and upgrading this informationPURPOSE OF JOB ANALYSIS: -• Human Resource Planning (HRP): - The numbers and types of personnel are determined by the jobs, which need to be staffed. Job related information in the form of Job Analysis serves this purpose or use.• Recruitment & Selection: - Recruitment precedes job analysis. It helps HR to locate places to obtain employees. It also helps in better continuity and planning in staffing in the organization. Also selecting a good candidate also requires detailed job information. Because the objective of hiring is to match the right candidate for right job• Training & Development: Training and development programs can be designed depending upon job requirement and analysis. Selection of trainees is also facilitated by job analysis.
  36. 36. • Job Evaluation: Job evaluation means determination of relative worth of each job for the purpose of establishing wage and salary credentials. This is possible with the help of job description and specifications; i.e. Job Analysis.• Remuneration: Job analysis also helps in determining wage and salary for all jobs.• Performance Appraisal: Performance appraisal, assessments, rewards, promotions, is facilitated by job analysis by way of fixing standards of job performance.• Personnel Information: Job analysis is vital for building personnel information systems and processes for improving administrative efficiency and providing decision support.• Safety & Health: Job Analysis helps to uncover hazardous conditions and unhealthy environmental factors so that corrective measures can be taken to minimize and avoid possibility of human injury.PROCESS OF JOB ANALYSISProcess 1: Strategic ChoicesProcess 2: Collecting InformationProcess 3: Processing InformationProcess 4: Job DescriptionProcess 5: Job SpecificationStrategic Choices: -Extent of involvement of employees: Extent of employee involvement is a debatablepoint. Too much involvement may result in bias in favor of a job in terms of inflating duties andresponsibilities. Too less involvement leads to suspicion about the motives behind the job.Besides it may also lead to inaccurate information. Hence extent of involvement depends on theneeds of the organization and employee.Level of details of job analysis: The nature of jobs being analyzed determines the level ofdetails in job analysis. If the purpose were for training programs or assessing the worth of job,levels of details required would be great. If the purpose is just clarification the details requiredwould be less.
  37. 37. Timing and frequency of Job Analysis: When do you do Job Analysis? • Initial stage, for new organization • New Job is created • Changes in Job, Technology and Processes • Deficiencies and Disparities in Job • New compensation plan is introduced • Updating and upgrading is required. •Past-oriented and future-oriented Job Analysis: For rapidly changing organizationmore future oriented approach would be desired. For traditional organizations past orientedanalysis would be required. However more future oriented analysis may be derived based on pastdata.Sources of Job Data: For job analysis number of human and non-human sources is availablebesides jobholder himself. Following can be sources of data available for job analysis. Non-Human Sources Human SourcesExisting job descriptions and specifications Job Analysis JobEquipment maintenance records IncumbentsEquipment design blueprints SupervisorsArchitectural blueprints of work area Job ExpertsFilms of employee workingTraining manuals and materialsMagazines, newspapers, literaturesCollecting Information: -Information collection is done on the basis of following 3 parametersTypes of Data for Job Analysis: • Work Activities (Tasks details) • Interface with other jobs and equipments (Procedures, Behaviors, Movements) • Machines, Tools, Equipments and Work Aids (List, Materials, Products, Services) • Job Context (Physical, Social, Organizational, Work schedule) • Personal Requirement (Skills, Education, Training, Experience)
  38. 38. Methods of Data Collection: • Observation • Interview • Questionnaires • Checklists • Technical Conference • Diary MethodsWho to Collect Data? • Trained Job Analysts • Supervisors • Job IncumbentsProcessing Information: -Once the job information is collected it needs to be processed, so that it would be useful invarious personnel functions. Specifically job related data would be useful to prepare jobdescription and specifications, which form the next two processes of job analysis.METHODS OF DATA COLLECTION:Observation: Job Analyst carefully observes the jobholder and records the information interms of what, how the job is done and how much time is taken. It is a simple and accuratemethod, but is also time consuming and inapplicable to jobs involving mental activities andunobservable job cycles. The analysts must be fully trained observers.Interview: In this analyst interviews the jobholders, his supervisors to elicit information. It can beStructured or Unstructured Interview. Again this is also a time consuming method in case of largeorganizations. Plus there is also a problem of bias.Questionnaires: A standard questionnaire is given to jobholder about his job, which can befilled and given back to supervisors or job analysts. The questionnaire may contain job title,jobholder’s name, managers name, reporting staff, description of job, list of main duties andresponsibilities etc. It is useful in large number of staffs and less time consuming. However theaccuracy of information leaves much to be desired.
  39. 39. Checklists: It is more similar to questionnaire but the response sheet contains fewer subjectivejudgments and tends to be either yes or no variety. Preparation of checklist is a challenging jobitself.Technical Conference: Here a conference of supervisors is used. The analysts initiate thediscussions providing job details. However this method lacks accuracy.Diary Methods: In this method jobholder is required to note down their activities day by day intheir diary. If done faithfully this technique is accurate and eliminates errors caused bymemory lapses etc.Quantitative Methods of Job Data Collection: -Position Analysis Questionnaire (PAQ): -PAQ is a highly specialized instrument for analyzing any job in terms of employee activities.The PAQ contains 194 job elements on which job is created depending on the degree to which anelement is present. These elements are grouped together into 6 categories. 1. U - Usability / Use of Job 2. I - Importance of Job 3. T - Time 4. P - Possibility of Occurrence of Job 5. A - Applicability of Job 6. S - Specialty Tasks of JobThe primary advantage of PAQ is that it can be used to analyze almost every job. This analysisprovides a comparison of a specific job with other job classifications, particularly for selection andremuneration purposes. However PAQ needs to be completed by trained job analysts only ratherthan incumbents.Management Position Description Questionnaire (MPDQ): -Highly structured questionnaire, containing 208 elements relating to managerial responsibilities,demand, restrictions and other position characteristics These 208 elements are grouped under 13categories.PAQ and MPDQ yield standardized information about the worker and the job.Functional Job Analysis: -
  40. 40. It is a worker oriented job analytical approach, which attempts to describe thewhole person on the job.BARRIERS OF JOB ANALYSIS• Support from Top Management• Single means and source, reliance on single method rather than combination• No Training or Motivation to Jobholders• Activities and Data may be DistortedJOB DESCRIPTION“Job Description implies objective listing of the job title, tasks, and responsibilities involved in ajob.”Job description is a word picture in writing of the duties, responsibilities and organizationalrelationships that constitutes a given job or position. It defines continuing work assignment and ascope of responsibility that are sufficiently different from those of the other jobs to warrant aspecific title. Job description is a broad statement of purpose, scope, duties and responsibilities ofa particular job.Contents of Job Description1. Job Identification2. Job Summary3. Job Duties and Responsibilities4. Supervision specification5. Machines, tools and materials6. Work conditions7. Work hazards8. Definition of unusual termsFormat of Job Description• Job Title• Region/Location• Department
  41. 41. • Reporting to (Operational and Managerial)• Objective• Principal duties and responsibilitiesFeatures of Good Job Description1. Up to date2. Proper Job Title3. Comprehensive Job Summary4. Clear duties and responsibilities5. Easily understandable6. State job requirements7. Specify reporting relationships8. Showcase degrees of difficulties9. Indicates opportunities for career development10. Offer bird’s-eye-view of primary responsibilitiesJOB SPECIFICATIONS“Job Specification involves listing of employee qualifications, skills and abilities required to meetthe job description. These specifications are needed to do job satisfactorily.”In other words it is a statement of minimum and acceptable human qualities necessary to perform jobproperly. Job specifications seeks to indicate what kind of persons may be expected to most closelyapproximate the role requirements and thus it is basically concerned with matters of selection,screening and placement and is intended to serve as a guide in hiring.Contents of Job Specifications1. Physical Characteristics2. Psychological characteristics3. Personal characteristics4. Responsibilities5. Demographic features.
  42. 42. RECRUITMENT & SELECTIONRECRUITMENTDefinition of Recruitment: Finding and Attracting Applications“Recruitment is the Process of finding and attracting capable applicants for employment. TheProcess begins when new recruits are sought and ends when their applications are submitted. Theresult is a pool of application from which new employees are selected.”MEANING OF RECRUITMENT:Recruitment is understood as the process of searching for and obtaining applicants for jobs, fromamong them the right people can be selected. Though theoretically recruitment process is said to endwith the receipt of applications, in practice the activity extends to the screening ofapplications so as to eliminate those who are not qualified for the job.PURPOSE AND IMPORTANCE OF RECRUITMENT: - 1. Determine the present and future requirements in conjunction with personnel planning and job analysis activities 2. Increase the pool of job candidates at minimum cost 3. Help increase success rate of selection process by reducing number of under-qualified or over-qualified applications. 4. Reduce the probability that job applicants once selected would leave shortly 5. Meet legal and social obligations 6. Identify and prepare potential job applicants 7. Evaluate effectiveness of various recruitment techniques and sources for job applicants. 8.FACTORS GOVERNING RECRUITMENTExternal Factors:• Demand and Supply (Specific Skills)
  43. 43. • Unemployment Rate (Area-wise)• Labor Market Conditions• Political and Legal Environment (Reservations, Labor laws)• ImageInternal Factors• Recruitment Policy (Internal Hiring or External Hiring?)• Human Resource Planning (Planning of resources required)• Size of the Organization (Bigger the size lesser the recruitment problems)• Cost• Growth and Expansion Plans.RECRUITMENT PROCESSRecruitment Planning • Number of contacts • Types of contactsRecruitment Strategy Development • Make or Buy Employees • Technological Sophistication • Where to look • How to lookInternal Recruitment (Source 1) • Present employees • Employee referrals • Transfers & Promotions • Former Employees • Previous Applicants • Evaluation of Internal RecruitmentExternal Recruitment (Source 2) • Professionals or Trade Associations • Advertisements
  44. 44. • Employment Exchanges • Campus Recruitment • Walk-ins Interviews • Consultants • Contractors • Displaced Persons • Radio & Television • Acquisitions & Mergers • Competitors • Evaluation of External RecruitmentSearching • Source activation • Selling • Screening of ApplicationsEvaluation and Cost Control • Salary Cost • Management & Professional Time spent • Advertisement Cost • Producing Supporting literature • Recruitment Overheads and Expenses • Cost of Overtime and Outsourcing • Consultant’s feesEvaluation of Recruitment Process • Return rate of applications sent out • Suitable Candidates for selection • Retention and Performance of selected candidates • Recruitment Cost • Time lapsed data • Image projection INTERNAL RECRUITMENT Advantages Disadvantages1. Less Costly 1. Old concept of doing things
  45. 45. 2. Candidates already oriented towards 2. It abets raiding organization 3. Candidates current work may be3. Organizations have better knowledge affected about internal candidates 4. Politics play greater roles4. Employee morale and motivation is 5. Morale problem for those not enhanced promoted. EXTERNAL RECRUITMENT Advantages Disadvantages1. Benefits of new skills and talents 2. 1. Better morale and motivationBenefits of new experiences associated with internal recruiting is3. Compliance with reservation policy denied becomes easy 2. It is costly method4. Scope for resentment, jealousies, and 3. Chances of creeping in false positive heartburn are avoided. and false negative errors 4. Adjustment of new employees takes longer time. SELECTIONMEANING OF SELECTION:Selection is the process of picking up individuals (out of the pool of job applicants) withrequisite qualifications and competence to fill jobs in the organization. A formal definition ofSelection is as underDefinition of Selection: Process of differentiating“Selection is the process of differentiating between applicants in order to identify and hire thosewith a greater likelihood of success in a job.”DIFFERENCE BETWEEN RECRUITMENT AND SELECTION: Recruitment Selection1. Recruitment refers to the process of 1. Selection is concerned with picking up identifying and encouraging the right candidates from a pool of prospective employees to apply for applicants. jobs. 2. Selection on the other hand is negative
  46. 46. 2. Recruitment is said to be positive in its in its application in as much as it seeks approach as it seeks to attract as many to eliminate as many unqualified candidates as possible. applicants as possible in order to identify the right candidates.PROCESS / STEPS IN SELECTION1. Preliminary Interview: The purpose of preliminary interviews is basically to eliminate unqualified applications based on information supplied in application forms. The basic objective is to reject misfits. On the other hands preliminary interviews is often called a courtesy interview and is a good public relations exercise.2. Selection Tests: Jobseekers who past the preliminary interviews are called for tests. There are various types of tests conducted depending upon the jobs and the company. These tests can be Aptitude Tests, Personality Tests, and Ability Tests and are conducted to judge how well an individual can perform tasks related to the job. Besides this there are some other tests also like Interest Tests (activity preferences), Graphology Test (Handwriting), Medical Tests, Psychometric Tests etc.3. Employment Interview: The next step in selection is employment interview. Here interview is a formal and in-depth conversation between applicant’s acceptability. It is considered to be an excellent selection device. Interviews can be One-to-One, Panel Interview, or Sequential Interviews. Besides there can be Structured and Unstructured interviews, Behavioral Interviews, Stress Interviews.4. Reference & Background Checks: Reference checks and background checks are conducted to verify the information provided by the candidates. Reference checks can be through formal letters, telephone conversations. However it is merely a formality and selections decisions are seldom affected by it.5. Selection Decision: After obtaining all the information, the most critical step is the selection decision is to be made. The final decision has to be made out of applicants who have passed preliminary interviews, tests, final interviews and reference checks. The views of line managers are considered generally because it is the line manager who is responsible for the performance of the new employee.6. Physical Examination: After the selection decision is made, the candidate is required to undergo a physical fitness test. A job offer is often contingent upon the candidate passing the physical examination.
  47. 47. 7. Job Offer: The next step in selection process is job offer to those applicants who have crossed all the previous hurdles. It is made by way of letter of appointment.8. Contract of Employment: After the job offer is made and candidates accept the offer, certain documents need to be executed by the employer and the candidate. Here is a need to prepare a formal contract of employment, containing written contractual terms of employment etc.ESSENTIALS OF A GOOD SELECTION PRACTICE1. Detailed job descriptions and job specifications prepared in advance and endorsed by personnel and line management2. Trained the selectors3. Determine aids to be used for selection process4. Check competence of recruitment consultants before retention5. Involve line managers at all stages6. Attempt to validate the procedure7. Help the appointed candidate to succeed by training and management developmentBARRIERS TO EFFECTIVE SELECTION: -1. Perception: We all perceive the world differently. Our limited perceptual ability is obviously a stumbling block to the objective and rational selection of people.2. Fairness: Barriers of fairness includes discrimination against religion, region, race or gender etc.3. Validity: A test that has been validated can differentiate between the employees who can perform well and those who will not. However it does not predict the job success accurately.4. Reliability: A reliable test may fail to predict job performance with precision.5. Pressure: Pressure brought on selectors by politicians, bureaucrats, relatives, friends and peers to select particular candidate are also barriers to selection.TRAINING & DEVELOPMENTDefinition of Training & Development: Improve performance
  48. 48. “Training & Development is any attempt to improve current or future employee performance byincreasing an employee’s ability to perform through learning, usually by changing theemployee’s attitude or increasing his or her skills and knowledge.”MEANING OF TRAINING & DEVELOPMENT: -The need for Training and Development is determined by the employee’s performancedeficiency, computed as follows.Training & Development Need = Standard Performance - Actual PerformanceWe can make a distinction among Training, Development and Education.Distinction between Training and Education Training EducationApplication oriented Theoretical OrientationJob experience Classroom learningSpecific Task in mind Covers general conceptsNarrow Perspective Has Broad PerspectiveTraining is Job Specific Education is no barTraining: Training refers to the process of imparting specific skills. An employee undergoingtraining is presumed to have had some formal education. No training program is completewithout an element of education. Hence we can say that Training is offered to operatives.Education: It is a theoretical learning in classrooms. The purpose of education is to teachtheoretical concepts and develop a sense of reasoning and judgment. That any training anddevelopment program must contain an element of education is well understood by HRSpecialists. Any such program has university professors as resource persons to enlightenparticipants about theoretical knowledge of the topics proposed to discuss. In fact organizationsdepute or encourage employees to do courses on part time basis. CEOs are known to attendrefresher courses conducted by business schools. The education is more important for managersand executives rather than low cadre workers. Anyways education is common to all employees,their grades notwithstanding.
  49. 49. What are the Training Inputs?• Skills• Education• Development• Ethics• Problem Solving Skills• Decision Making• Attitudinal ChangesImportance of Training & Development• Helps remove performance deficiencies in employees• Greater stability, flexibility and capacity for growth in an organization• Accidents, scraps and damages to machinery can be avoided• Serves as effective source of recruitment• It is an investment in HR with a promise of better returns in future• Reduces dissatisfaction, absenteeism, complaints and turnover of employees. NEED OF TRAININGIndividual level• Diagnosis of present problems and future challenges• Improve individual performance or fix up performance deficiency• Improve skills or knowledge or any other problem• To anticipate future skill-needs and prepare employee to handle more challenging tasks• To prepare for possible job transfersGroup level
  50. 50. • To face any change in organization strategy at group levels• When new products and services are launched• To avoid scraps and accident ratesIdentification of Training Needs (Methods)Individual Training Needs Identification1. Performance Appraisals2. Interviews3. Questionnaires4. Attitude Surveys5. Training Progress Feedback6. Work Sampling7. Rating Scales.Group Level Training Needs Identification1. Organizational Goals and Objectives2. Personnel / Skills Inventories3. Organizational Climate Indices4. Efficiency Indices5. Exit Interviews6. MBO / Work Planning Systems7. Quality Circles8. Customer Satisfaction Survey9. Analysis of Current and Anticipated ChangesBenefits of Training Needs Identification1. Trainers can be informed about the broader needs in advance2. Trainers Perception Gaps can be reduced between employees and their supervisorsTrainers can design course inputs closer to the specific needs of the participants3. Diagnosis of causes of performance deficiencies can be done.
  51. 51. Methods of Training:On the Job Trainings: These methods are generally applied on the workplace while employees isactually working. Following are the on-the-job methods.Advantages of On-the-Job Training:It is directly in the context of job Itis often informalIt is most effective because it is learning by experience Itis least expensiveTrainees are highly motivatedIt is free from artificial classroom situations.Disadvantages of On-the-Job Training:Trainer may not be experienced enough to train Itis not systematically organizedPoorly conducted programs may create safety hazards.On the Job Training Methods: 1. Job Rotation: In this method, usually employees are put on different jobs turn by turn where they learn all sorts of jobs of various departments. The objective is to give a comprehensive awareness about the jobs of different departments. Advantage - employee gets to know how his own and other departments also function. Interdepartmental coordination can be improved, instills team spirit. Disadvantage - It may become too much for an employee to learn. It is not focused on employees own job responsibilities. Employees basic talents may remain under utilized. 2. Job Coaching: An experienced employee can give a verbal presentation to explain the nitty-gritty’s of the job. 3. Job Instruction: It may consist an instruction or directions to perform a particular task or a function. It may be in the form of orders or steps to perform a task.
  52. 52. 4. Apprenticeships: Generally fresh graduates are put under the experienced employee to learn the functions of job. 5. Internships and Assistantships: An intern or an assistants are recruited to perform a specific time-bound jobs or projects during their education. It may consist a part of their educational courses.Off the Job Trainings: These are used away from work places while employees are not working likeclassroom trainings, seminars etc. Following are the off-the-job methods;Advantages of Off-the-Job Training: • Trainers are usually experienced enough to train • It is systematically organized • Efficiently created programs may add lot of valueDisadvantages of Off-the-Job Training: • It is not directly in the context of job • It is often formal • It is not based on experience • It is least expensive • Trainees may not be highly motivated • It is more artificial in natureOff the Job Training Methods 1. Classroom Lectures: It is a verbal lecture presentation by an instructor to a large audience. Advantage - It can be used for large groups. Cost per trainee is low. Disadvantages - Low popularity. It is not learning by practice. It is One-way communication. No authentic feedback mechanism. Likely to boredom. 2. Audio-Visual: It can be done using Films, Televisions, Video, and Presentations etc. Advantages - Wide range of realistic examples, quality control possible,. Disadvantages - One-way communication, No feedback mechanism. No flexibility for different audience. 3. Simulation: creating a real life situation for decision-making and understanding the actual job conditions give it. Following are some of the simulation methods of trainings
  53. 53. • Case Studies: It is a written description of an actual situation and trainer is supposed to analyze and give his conclusions in writing. The cases are generally based on actual organizational situations. It is an ideal method to promote decision-making abilities within the constraints of limited data. • Role Plays: Here trainees assume the part of the specific personalities in a case study and enact it in front of the audience. It is more emotional orientation and improves interpersonal relationships. Attitudinal change is another result. These are generally used in MDP. • Sensitivity Trainings: This is more from the point of view of behavioral assessment, under different circumstances how an individual will behave himself and towards others. There is no preplanned agenda and it is instant. Advantages - increased ability to empathize, listening skills, openness, tolerance, and conflict resolution skills. Disadvantage - Participants may resort to their old habits after the training. 4. Programmed Instructions: Provided in the form of blocks either in book or a teaching machine using questions and Feedbacks without the intervention of trainer. Advantages - Self paced, trainees can progress at their own speed, strong motivation for repeat learning, material is structured and self-contained. Disadvantages - Scope for learning is less; cost of books, manuals or machinery is expensive. 5. Computer Aided Instructions: It is extension of PI method, by using computers. Advantages - Provides accountabilities, modifiable to technological innovations, flexible to time. Disadvantages - High cost. 6. Laboratory TrainingBarriers to Effective Training:1. Lack of Management commitment2. Inadequate Training budget3. Education degrees lack skills4. Large scale poaching of trained staff5. Non-coordination from workers due to downsizing trends6. Employers and B Schools operating distantly
  54. 54. 7. Unions influence.How To Make Training Effective?1. Management Commitment2. Training & Business Strategies Integration3. Comprehensive and Systematic Approach4. Continuous and Ongoing approach5. Promoting Learning as Fundamental Value6. Creations of effective training evaluation system WAGES AND SALARY ADMINISTRATION Wages- Aggregate earnings of a employee for his service for a day, or a week, or a month . It is the price paid for the services of labor in the process of production. Includes 2 parts- the basic wages & other allowance Salary- compensation to an employee for service rendered on a weekly, monthly or annual basis. NATURE AND PURPOSEThe basic purpose of wage and salary administration is to establish and maintain an equitablewage and salary structure. The wage and salary administration is concerned with financialaspects of needs, motivation and rewards. Managers, therefore, analyze and interpret the needs oftheir employees so that rewards can be decided to satisfy those needs. The reward may be money orpromotion, recognition, acceptance etcOBJECTIVESA sound wage and salary administration tries to achieve these objectivesFOR EMPLOYEES
  55. 55. 1. Employees are paid according to requirements of the highly skilled jobs are paid more compensation than low skilled jobs. This eliminates inequalities. 2. the chances of favoritism (while fixing wage rates) are greatly eliminated 3. Job sequences and lines of promotion are established wherever applicable. 4. Employee’s morale and motivation are increased because a wage program can be explained and is base on facts.TO EMPLOYERS They can systematically plan and control labor costs • In dealing with trade union, they can explain the basis of their wage program because it is based upon a systematic analysis of job and wage facts • A wage and salary administration reduces the likelihood of friction and grievances on job inequalities. • It enhances an employee’s morale and motivation because adequate and fairly administered wages are basic to his wants and needs. • It attracts qualified employees by ensuring adequate payment for all the jobs. • According to Beach, wage and salary administration have four major purposes • To recruit persons for a firm • To control payroll costs • To satisfy people, to reduce the incidence of quitting grievances, and fractions over pay • To motivate people to perform better.
  56. 56. UNIT IIIFinancial management entails planning for the future of a person or a business enterprise toensure a positive cash flow. It includes the administration and maintenance of financial assets.Besides, financial management covers the process of identifying and managing risks.The primary concern of financial management is the assessment rather than the techniques offinancial quantification. A financial manager looks at the available data to judge the performance ofenterprises. Managerial finance is an interdisciplinary approach that borrows from bothmanagerial accounting and corporate finance.Some experts refer to financial management as the science of money management. The primaryusage of this term is in the world of financing business activities. However, financialmanagement is important at all levels of human existence because every entity needs to lookafter its finances.Financial Management can be defined as:The management of the finances of a business / organisation in order to achieve financialobjectivesTaking a commercial business as the most common organizational structure, the key objectives offinancial management would be to:• Create wealth for the business• Generate cash, and• Provide an adequate return on investment bearing in mind the risks that the business is takingand the resources invested
  57. 57. There are three key elements to the process of financial management:(1) Financial Planning: Management need to ensure that enough funding is available at the right timeto meet the needs of the business. In the short term, funding may be needed to invest inequipment and stocks, pay employees and fund sales made on credit.In the medium and long term, funding may be required for significant additions to the productivecapacity of the business or to make acquisitions.(2) Financial Control: Financial control is a critically important activity to help the businessensure that the business is meeting its objectives. Financial control addresses questions such as:• Are assets being used efficiently?• Are the businesses assets secure?• Do management act in the best interest of shareholders and in accordance with business rules?(3) Financial Decision-making: The key aspects of financial decision-making relate toinvestment, financing and dividends:• Investments must be financed in some way - however there are always financing alternatives thatcan be considered. For example it is possible to raise finance from selling new shares, borrowingfrom banks or taking credit from suppliers• A key financing decision is whether profits earned by the business should be retained ratherthan distributed to shareholders via dividends. If dividends are too high, the business may bestarved of funding to reinvest in growing revenues and profits further. • There are two main forms of accounting information:(1) Financial Accounts.