2. Ch-1 Understanding the Nature & Scope of Human
Resource Management
⢠Def-: Functions like Recruitment, Selection, Training &
Development (peopleâs dimension in an organization).
⢠Scope-Entry-Leaving
3. HRM Functions & Objectives
Function-: supply of competent & willing employees
Objectives-:
Societal (sensitive to needs & legal Compliance)
Organizational (effectiveness, Planning, selection, Training &
Development, Appraisal)
Personal (employee career, potential, training & development)
Outsourcing:
72% of Indian companies are outsourcing their HR activities.
e.g. Employee hiring, Training & development, Payroll preparation,
Benefits administration, Statutory records maintenance.
IIPM headquarters at Kolkata
National Institute of Labor Management (NILM) at Mumbai
Merged to form National Institute of Personnel management in 1980.
4. Chapter-2: Context of HRM
⢠External â Political, Legal, Economic, Technological
⢠Internal-Org. culture, Cultural, Unions, Professional bodies
⢠Analysis helps in pro-active approach
⢠Political:
ďą Article 14: Equality before the law
ďą Article 15: Prohibition of discrimination-religion, race, caste, sex or place
of birth
ďą Article 16: Equality of opportunity in public employment
ďą Article 23: Prohibits forced labor
ďą Article 24: Prohibits employment of children âfactories, mines/hazardous
jobs
ďą Article 38(d) Equal pay for Equal work
ďą Article 38(e) Health & Strength of workers, tender age of children forced
to work out of economic necessity- jobs not suitable to their health.
ďą Article 42: Just & Humane conditions of work & Maternity leave for
women
ďą Article 43: Living wages for workers
ďą Article 43(a): Participation of workers in management
5. Economic:
Supplier: provides HR
Competitors
Customers
Economic Growth
Industrial Labor- diversity
Globalization
Technological: HRIS
Internal:
Strategy, Task & Leadership
Unions
Organizational culture & conflict
Enacted Environment- own creation e.g. OPEC
Domain- carves out for itself, Domain Consensus
Task Environment- all groups that can influence organization.
E.g. range of products, technology, etc.
Scanning the Environment: Trends & projections,
E.g. labor market, legal environment etc.
Knowing the
Environment
6. Chapter-3
Integrating HR Strategy with Business Strategy
⢠Strategic HRM- HR abilities â anyone who deals with
people, regardless of functionality.
⢠Barriers-
ďPerceived short-term
ďInability of HR to think strategically
ďSenior managers lacks appreciation for HR values
ďToo much concerned with technicality rather than people
values
ďDifficult to quantify HR outcome
ďHR other than capital assets is not owned by the
company and hence risk in investment.
7. Corporate level strategies: which business?
Growth strategies (horizontal, vertical, conglomerate, related-unrelated, mergers,
strategic alliances)
Stability strategies
Retrenchment strategies
Business level strategies: how to compete in chosen business, SBU
Functional level strategies : HR
Identification of key HR activities
Pro-reactive
Critical thinking
Explicit comm. of goals
Quality & service
Building core competencies
Environment scanning
SWOT analysis
Strategy implementation
Strategy evaluation
8. Chapter-4
Human Resource Planning
⢠The first part of human resource strategy is human resource
planning
⢠All other HR activities such as employee hiring, training &
development, remuneration, appraisal, & labor relations are
derived from HRP.
⢠HRP is a sub-system in total Org. Planning
⢠Importance:
ďź Future personnel needs, succession planning
ďź Part of strategic planning
ďź Creating highly talented personnel
ďź International strategy
ďź Foundation for personnel functions
ďź Investment in HRâs (human assets as compared to physical assets
increase in value)
ďź Resistance to change & move
9. Factors affecting HRP:
1. Type & strategy of Organization.
2. Organizational growth cycles
3. Environment uncertainties
4. Time horizons (short/long term) greater the uncertainty, shorter the time
horizon
5. Type & quality of source information (HRIS)
6. Outsourcing
10. Environment scanning:
â˘Economic
â˘Technological
â˘Demographic
â˘Political & legislative
â˘Social concerns
Organization objectives & policies:
â˘Internal promotion
â˘Training & development
â˘Enrichment of job
â˘Union
â˘Retaining
Demand: Quantity & Quality
Basis- annual budget and long term corporate plan translated into
activity levels for each function & department.
External: Competition, Economic
Internal: Budget constraints, Employee separation etc.
11. Forecasting techniques:
ďManagerial judgment-(bottom up/ top-down)
ďRatio trend analysis-(Past ratios, e.g. sales volume -employee size)
ďRegression analysis
ďWork supply technique(length of operation-amount of labor reqd.)
ďDelphi technique
ďFlow models (Markov analysis)
I. Time span (Time to be covered-depends on HR Plan)
II. Mutually exclusive categories of employees -movement in
categories
III. Estimate probability of transition based on past trends
13. Inflow-outflow = No. of current employees
Turnover rate = No. of separations in 1 year
Avg. no. of employees in 1 year
Absenteeism rate= No. of workers absent*No. of days)
Average no. of workers*No. of working days
E.g. 4% means 96 out of 100 are available
Retention plan:
ďCompensation plan
ďPerformance appraisal
ďEmployee quitting because of conflict or green pastures
ďThe induction crisis(accurate job requirements, realistic job
picture)
ďShortages
ďUnstable recruits- find characteristics
* 100
*100
14. Chapter-5
Analyzing work & Designing jobs
⢠Origin civil right movement
⢠Collecting job related information-Job description &
specification
⢠Monetary consideration is necessary- deciding whether a
activity is work or not
⢠Work has two characteristics-
Sociological- Leadership, Politics, Power, Group dynamics
Psychological- Learning, Attitude, Motivation, Satisfaction & Perception.
⢠Job description â Task & Responsibilities
Importance:
â Lays foundation for HRP
â Employee hiring
â Training & development, Performance appraisal
â Salary & wage fixation, Safety & Health.
15. Process
Strategic choices:
ďźExtent of employee involvement,
ďźLevel of detail,
ďźTiming & Frequency of analysis,
ďźPast oriented vs. Future oriented
Sources of job data:
Non-human: Human:
*Existing data *job analysis
*Equipment maintenance record *job incumbents
*Equipment blue print *supervisors
*Work area architecture *job experts
*Films of employee working
*Training manuals
*Magazines & news papers
16. 2) Information Gathering:
â˘Type of data (time & budget constraints)
â˘Methods of data collection
â˘Who should collect: trained job analyzers, supervisors, job-incumbents
Methods:
ďObservation
ďInterview
ďQuestionnaire
ďChecklists
ďTechnical conference
ďDiary methods
ďQuantitative:
ď§Position analysis questionnaire:194 elements, 6 categories ,degree
of involvement
ď§Manager position development questionnaire
ď§Functional job analysis: Relation to people, data, & things.
19. Purpose of job analysis:
â˘HRP
â˘Employee hiring
â˘Training & development
â˘Performance appraisal
â˘HRIS
Job design: conscious effort, organize tasks, duties & responsibilities, follows
after job- analysis
Organization factors: internal structure of each task requires planning,
executing & controlling, completely integrated job.
Work flow, Ergonomics, work practices.
Environment factors: Availability of employees, abilities, social & cultural
expectations.
Behavioral elements:
ďźFeedback,
ďźAutonomy,
ďźUse of abilities,
ďź Variety
20. Job Design Approaches
ďJob rotation
ďJob engineering-specialization, time & motion studies
ďJob enlargement
ďJob enrichment: adding more motivators (empowerment)
Hertzberg 8 characteristics
1) Direct feedback
2) Personal accountability
3) Direct communication
4) Learning
5) Client relationship
6) Control over resources
7) Scheduling own work
8) Unique experience
ďSocio-technical systems
ďErgonomics
ďTele-commuting
ďAlternative work pattern (scheduling)
21. Chapter-6
Recruiting Human resources
⢠Recruitment represents the first contact that a company makes
with potential employees.
⢠Recruitment program helps the firm in 4 ways:
1. Attract highly qualified & competent people.
2. Ensure that the selected candidate stay longer with the
company.
3. Make sure that there is match between cost & benefit.
4. Help the firm create more culturally diverse work force.
⢠Factors governing Recruitment:
External: Internal:
Supply & demand Recruitment Policy
Unemployment rate HRP
Labor market Size of the Firm
Political- legal Cost
Image Growth & Expansion
22. Recruitment: process of identifying & attracting job seekers so as to
build a pool of qualified job applicants.
5 stages:
2.Planning
3.Strategy development
4.Searching
5.Screening
6.Evaluation & control
(how to distinguish applicants who are unqualified from those
who have a reasonable chance of success)
Planning: No. & Type (yield ratios)
Strategy development:
â˘Make/Buy,
â˘Technological sophistication of recruitment & selection devices
23. Sources of recruitment:
Internal: External:
Present employees E- recruitment
Employee referrals competitors
Former employees consultants
Previous applicants walk-in/write-in
Campus recruitment
Employment Exchange (Acc. To act, every
Industrial Establishment ( >25 workers)
should notify vacancies in it.)
When to look: time lapsed data
Searching: source activation-reported by line managers
Selling: realistic job picture + attract as many as possible.
24. Job compatibility questionnaire: whether an applicantâs preference for
work match the characteristics of the job.
400 item instrument.
Alternatives:
ď§ overtime
ď§Employee leasing-outsourcing of recruitment
ď§Temporary employment.
25. Chapter 7
Selecting Human Resources
⢠Selection is the process of differentiating between
applicants in order to identify & hire those with a greater
likelihood of success in a job.
26. Choosing tests-reliability, validity, objectivity, & standardization.
Contract of employment:
ďąJob title
ďąDuties
ďąDate when continuous employment starts
ďąRate of pay, allowances, overtime, hours of work including lunch break &
shift arrangements
ďąSickness,
ďąLength of notice,
ďąGrievance procedure
ďąDisciplinary procedure
ďąWork rule
ďąArrangements (terminating, union membership),
ďąRights to patents,
ďąEmployee rights to vary terms of contract subject to proper notification.
Audit of selection program
ďźFeedback,
ďź how well selected candidate perform,
ďź turnover
27. Chapter-9
Training, Development & Career Management
⢠Training & Development need â standard Performance-Actual Performance.
⢠Training:-Specific Skills
⢠Development:- Learning opportunities for employees to grow
⢠Source of competitive advantage
30. Problems of Rating:
ďLeniency or Severity
ďCentral Tendency
ďRater Effect
ďHalo Error
ďPrimacy & Recency Effects
ďPerceptual Set (previously held beliefs)
ďPerformance Dimension order
ďSpill-over Effect (Past Performance)
ďStatus Effect
Solving Raterâs problems:-Training to Raters
31. What should be rated:
ďźQuality
ďźQuantity
ďź Timeliness
ďźCost effectiveness
ďźNeed for supervision
ďźInterpersonal impact
ďźCommunity service
36. Theories of Remuneration
Reinforcement & Expectancy Theory
Behavior which has rewarding experience is likely to be repeated.
Vroomâs Expectancy theory focuses on link between rewards &
behavior.
Equity Theory:
Internal Equity: different jobs in the Organization
External Equity: relative to outside similar job
Individual Equity
Agency Theory: To align with organizational goals
37.
38. â˘Demand & Supply-going rate system
â˘Legislation:
ďąPayment of wages act, 1936 (regulate irregularity & unauthorized
deduction, payment in particular form & at regular interval)
ďąMinimum wages act, 1948
ďąPayment of Bonus act, 1965
ďąPayment of Gratuity act, 1972
ďąEqual remuneration act, 1976
ďąWage Boards, tribunals, & fair wage committees.
â˘Managerial Remuneration: Companyâs Act, 1956.
â˘Business strategy:
Invest to grow:----------âEntrepreneurial Skills
Manage Earnings:-------âManagement Effectiveness
Harvest:--------------------âCost control
Minimum wage-----------â Fair Wage---------------âLiving Wage(frugal
comforts)
39. Chapter-13
Managing Employee Benefits & Services
⢠Why Benefits & services?
ďź Mitigate fatigue
ďź Discourage labor unrest
ďź Satisfy employee objectives
ďź Aid recruitment
ďź Reduce turnover, and
ďź Minimize overtime costs
⢠E.g. Legally required: old age pension, health insurance,
workerâs compensation, unemployment compensation
40. Contingent & deferred benefits:
ď§Pension plans
ď§Group life insurance
ď§Group health insurance
ď§Annual wage
ď§Maternity leave
ď§Child care leave
ď§Sick leave
ď§Dental benefits
ď§Suggestion awards
Other benefits:
ď§Travel allowances
ď§Company car & subsidies
ď§Moving expenses
ď§Uniform & tool expense
ď§Employee meal allowances
ď§Child-care facilities
46. Equity theory-To be treated equitably at work place
Criticism (judgment of fair treatment)
Porter & Lawler performance-satisfaction Model:
ďźPlace the right person in the right job (abilities & traits)
ďźCarefully explain their role
ďźExplain in concrete terms performance level expected
ďźRewards preferred
51. ďąParticipation at the board level
ďąParticipation through share ownership
ďąThrough joint councils, committees, & work councils
ďąThrough job enlargement, & job enrichment
ďąThrough quality circles
ďąThrough empowered teams
Quality of Work Life:
Ensured when members of an organization are able to satisfy their
important personal needs through their experiences in organization.
52. Chapter-17
Empowering Employees
⢠Participative Management also called Employee Empowerment
⢠Staff/Work councils-representation entirely of workers/employees
⢠Joint councils/committees-both employee & employer
⢠Article 43 A (42nd
amendment) state through suitable legislation
â Human welfare
â Human as thinking & independent free being
â Mental & physical health
â Enhancing self-belief & self-efficacy
⢠Negative consequences of hierarchy & authority
â 1975-1977 Emergency
â 1977- Janta
â 1979- congress
â Bill- may 30, 1990 in Rajya Sabha-----------making it statutory
⢠Shop floor council & Establishment Council
20 points program for
workerâs participation
53. Chapter-18
Communicating with Employees
⢠Exchange & understanding of information
⢠Playâs a major role in changing peopleâs attitude
⢠Mould by supply of information e.g. companyâs news letter
⢠Decision makerâs need information from many people to
perceive problems etc.
⢠Originate Channel Receive
Sender-
Clarity of
thought
Verbal,
Non-
verbal
Tone,
Facial,
Body-
language
Selective Listening,
Perceptions (stereotyping,
projection-reflecting of oneâs
own thoughts on others, halo-
effect)
54. Meta communication- interpretation (add our own interpretation)
Remedy-Active listening
Organization Communication : Authority
Communication Roles: Gate keepers, Liaisons (not members of any
group), Isolates, cosmopolites-external world
55. Chapter-19
Managing Betterment at work
⢠The Factories Act, 1948
a) Washing Facilities
b) Facilities for storing & drying Clothes
c) Sitting facilities for occasional rest for workers who are obliged to
work standing
d) First aid boxes, one for every 150 workers & ambulance facilities, if
there are more than 500 workers
e) Canteen, if employing more than 250 workers
f) Shelters, rest rooms, lunch rooms, if employing more than 150
workers
g) Crèche, if employing more than 30 women
h) Welfare officer, if employing more than 500 workers
56. a) Not more than 48 hours per week
b) Not more than 9 hours per day
c) No worker has to remain in factory for more than 10 ½ hours
d) Rest interval of ½ hour, after 5 hours of work
e) Weekly one holiday
f) If worker puts more than 48 hours per week-overtime wages
g) No overlapping of shift
h) Women workers are not to be employed between 7 p.m. & 6 a.m.
(exception allowed)
i) No child below 14 years of age to be employed
58. Strategic choices-
ďźlevel of protection
ďźFormal/informal
ďźProactive/reactive(as marketing tool)
Safety Policy: goals, responsibility, & authority
Organization for safety -Safety committees
Risk management
Assessing risks (frequency, probability, & severity), steps to reduce
Incidence rate: no. of recordable injuries * 1 million
no. of employee exposure hours
Severity rate= no. of work hours lost * 1 million
total no. of worked hours
60. Factories Act, 1948
ďźFactories to be kept clean & free from effluvia & dirt
ďźArrangements to be made for disposal of wastes & effluents
ďźAdequate ventilation & temperature to be maintained
ďźMeasures to be taken for prevention of inhalation or accumulation
of dust & fumes
ďźStandards for artificial humidification to be fixed
ďźOvercrowded related injuries to health of workers to be avoided
(9.9/14.2 cubic meters of space must be provided for each worker)
61. ďźSufficient & suitable lightening must be provided in every part of
factory
ďźGlazed windows to be kept clean, measures for prevention of glare
& shadows
ďźSuitable points for wholesome drinking water- legibly marked &
away from urinals. Water needs to be cooled, if no. of workers 250 or
more
ďźLatrines & urinals separately for males & females, well lighted &
ventilated
ďźSufficient no. of spittoons
67. HR Research
ď§Wage surveys
ď§Effectiveness of various recruitment sources
ď§Effectiveness of training efforts
ď§Survey of supervisorâs effectiveness
ď§Job analysis
ď§Survey of employee needs etc.
68. Analytical approach:
Cost-benefit analysis (utility analysis)
(excessive reliance on quantitative)- dysfunctional
Qualitative â (loyalty, commitment, attitude etc.)
Balanced Score Card:
4 dimensions
2.Financial Performance
3.Customer Service
4.Internal Business Processes
5.Capacity to learn & achieve growth