Bharathidasan University BBA Material

1. Associate Professor,
BON SECOURS COLLEGE FOR WOMEN,
THANJAVUR
Dr.N.R.SARAVANAN
MBA, MBA, MA (Yoga), PGDHRM, M.Phil, Ph.D,
HUMAN RESOURCE MANAGEMENT

2. Human Resource Roles & Functions
Unit - I

3. DEFINITION OF HRD
 A set of systematic and planned activities
designed by an organization to provide its
members with the necessary skills to meet
current and future job demands.

4. EMERGENCE OF HRD
 Employee needs extend beyond the
training classroom
 Includes coaching, group work, and
problem solving
 Need for basic employee development
 Need for structured career development

5. RELATIONSHIP BETWEEN HRM AND HRD
 Human resource management (HRM)
encompasses many functions
 Human resource development (HRD) is just
one of the functions within HRM

6. PRIMARY FUNCTIONS OF HRM
 Human resource planning
 Equal employment opportunity
 Staffing (recruitment and selection)
 Compensation and benefits
 Employee and labor relations
 Health, safety, and security
 Human resource development

7. SECONDARY HRM FUNCTIONS
 Organization and job design
 Performance management/ performance
appraisal systems
 Research and information systems

8. HRD FUNCTIONS
 Training and development (T&D)
 Organizational development
 Career development

9. ORGANIZATIONAL DEVELOPMENT
 The process of improving an organization’s
effectiveness and member’s well-being
through the application of behavioral science
concepts
 Focuses on both macro- and micro-levels
 HRD plays the role of a change agent

10. CAREER DEVELOPMENT
 Ongoing process by which individuals
progress through series of changes until they
achieve their personal level of maximum
achievement.
 Career planning
 Career management

11. LEARNING & PERFORMANCE

12. CRITICAL HRD ISSUES
 Strategic management and HRD
 The supervisor’s role in HRD
 Organizational structure of HRD

13. STRATEGIC MANAGEMENT & HRD
 Strategic management aims to ensure
organizational effectiveness for the
foreseeable future – e.g., maximizing profits
in the next 3 to 5 years
 HRD aims to get managers and workers
ready for new products, procedures, and
materials

14. SUPERVISOR’S ROLE IN HRD
 Implements HRD programs and procedures
 On-the-job training (OJT)
 Coaching/mentoring/counseling
 Career and employee development
 A “front-line participant” in HRD

15. ORGANIZATIONAL STRUCTURE OF HRD
DEPARTMENTS
 Depends on company size, industry and
maturity
 No single structure used
 Depends in large part on how well the HRD
manager becomes an institutional part of the
company – i.e., a revenue contributor, not
just a revenue user

16. SAMPLE HRD JOBS/ROLES
 Executive/Manager
 HR Strategic Advisor
 HR Systems Designer/Developer
 Organization Change Agent
 Organization Design Consultant
 Learning Program Specialist
 Instructor/Facilitator
 Individual Development and Career Counselor
 Performance Consultant (Coach)
 Researcher

17. HR’S STRATEGIC ROLE
 Employees as organisation’s assets
 Driving business strategy
 Spanning organizational functions
 HRD Deliverables:
 Performance
 Capacity Building
 Problem solving/consulting
 Org. change and development

18. STRATEGIC HRD
 Integration of HRD with strategy formulation
and implementation
 Long-term view of HR policy
 Horizontal integration among HR functions
 Vertical integration with corporate strategy
 SHR as core competitive advantage

19. DEFINITION OF HR ROLES
Role/Cell Deliverable/
Outcome
Metaphor Core Activity
Mgmt of SHR Executing corp.
strategy
Strategic Partner Aligning HR and bus.
Strategy
Mgmt of Firm
Infrastructure
Building an efficient
infrastructure
Administrative Expert Reengineering org.
Processes
Mgmt of Employee
Contributions
Increasing employee
commitment and
capability
Employee Champion Providing resources
to employees
Mgmt of
Transformation/Chang
e
Organizational
renewal
Change Agent Managing
transformation and
change,

20. IMPORTANCE OF HUMAN RESOURCES
 Human resources are an important part of the
value chain
 They can be unique, and thus a source of
core competence in an organization
 If a core competence is related to HR, then
HR can contribute to competitive advantage

21. STRATEGIC ANALYSIS OF HR: PURPOSE
 People related strategies may be important to
new strategy (for example, a change in the
way the organization does business)
 In today’s technologically complex business
world, analysis of existing human resources
is important in order to determine what
options are available
 The network of people within an organization
and their relationships with people can be an
important part of strategy

22. HR AND SUSTAINABLE COMPETITIVE ADVANTAGE
 In some industries, people are the most
important factor in success
- advertising and creative development
- leisure and tourism
- management consulting
- hospitals and medical professions
 The adaptability of people to changing
environments is an important skill
 “The ability to learn faster than your competitors
may be the only sustainable advantage” – Arie De
Geus, former head of planning at Royal Dutch
Shell

23. CHALLENGES FOR HRD
 Changing workforce demographics
 Competing in global economy
 Eliminating the skills gap
 Need for lifelong learning
 Need for organizational learning

24. COMPETING IN THE GLOBAL ECONOMY
 New technologies
 Need for more skilled and educated workers
 Cultural sensitivity required
 Team involvement
 Problem solving
 Better communications skills

25. TRAINING & HRD PROCESS MODEL

26. High Performance Organizations
 Traditional
Organizations
 Narrow expertise
 Rugged individuals
 Centralized
 Closed
 Standardized selection
 Routine training
 Job-based pay
 Narrow, repetitive jobs
 Tall rigid hierarchies
 Functional departments
 Promote compliance
 Routine behaviors
 High Performance
Organizations
 Multi-skilled team players
 Dispersed
 Open
 Realistic job interviews
 Continuous learning
 Performance-based pay
 Enriched jobs
 Flat, flexible hierarchies
 Self-contained businesses
 Promote involvement
 Innovation and cooperation
 Design
Components
 People
 Decision Systems
 Human Resources
 Structure
 Values & Culture

27. HUMAN RESOURCES MANAGEMENT

28. RECRUITMENT

29. RECRUITMENT
 The process by which a job vacancy
is identified and potential employees are notified.
 The nature of the recruitment process
is regulated and subject
to employment law.
 Main forms of recruitment through advertising in
newspapers, magazines, trade papers and internal
vacancy lists.

30. RECRUITMENT
 Job description – outline of the role
of the job holder
 Person specification – outline
of the skills and qualities required
of the post holder
 Applicants may demonstrate their suitability through
application form, letter or curriculum vitae (CV)

31. SELECTION

32. SELECTION
 The process of assessing candidates and
appointing a post holder
 Applicants short listed –
most suitable candidates selected
 Selection process –
varies according to organisation:

33. SELECTION
 Interview – most common method
 Psychometric testing – assessing the personality of the applicants –
will they fit in?
 Aptitude testing – assessing the skills
of applicants
 In-tray exercise – activity based around what the applicant will be
doing, e.g. writing a letter to a disgruntled customer
 Presentation – looking for different skills
as well as the ideas of the candidate

34. EMPLOYMENT LEGISLATION

35. EMPLOYMENT LEGISLATION
 Increasingly important
aspect of the HRM role
 Wide range
of areas for attention
 Adds to the cost of the
business
Even in a small business, the legislation
relating to employees is important –
chemicals used in a hairdressing salon for
example have to be carefully stored and
handled to protect employees.

36. DISCRIMINATION
 Crucial aspects
of employment legislation:
 Race
 Gender
 Disability
Disability is no longer an issue for employers
to ignore, they must take reasonable steps
to accommodate and recruit disabled workers.
Copyright: Mela, http://www.sxc.hu

37. DISCIPLINE

38. DISCIPLINE
 Firms cannot just ‘sack’ workers
 Wide range of procedures and steps
in dealing with workplace conflict
 Informal meetings
 Formal meetings
 Verbal warnings
 Written warnings
 Grievance procedures
 Working with external agencies

39. DEVELOPMENT

40. DEVELOPMENT
 Developing the employee
can be regarded as investing
in a valuable asset
 A source of motivation
 A source of helping the employee fulfil potential

41. TRAINING

42. TRAINING
 Similar to development:
 Provides new skills for the employee
 Keeps the employee up to date
with changes in the field
 Aims to improve efficiency
 Can be external or ‘in-house’

43. ***Good Afternoon Budding Managers***
***Unit 01 HR Roles and Functions***
contd

44. ROLE OF HR MANAGER 8/1/13
 Conscience Role
 Counsellor
 Mediator
 Spokesman
 Problem solver
 Change Agent
 - As a Specialist
 - As a Source of help and also a controller

45. DEPARTMENT OF HUMAN RESOURCES
ORGANIZATIONAL CHART
MANAGING DIRECTOR
(CEO)
Manpower planning and
Development
Salaries Unit Relationship
Management
Employee Relations
Unit
Loans, Benefits &
Systems Unit
HEAD HUMAN RESOURCES
DEPARTMENT
-Trade unions
-Team Building
-CSR Activities
-HIV/AIDS
-Sexual Harassment
-Staff welfare
-Staff Canteen
-Staff Clinic
-Staff Health, Safety
& Security
-Statutory
Deductions-
NSSF,NHIF
-Tax Returns
-Pay slips
production
This is a new
strategy by large
Corporate entities
to manage many
Staff in many
Departments /
Branches
-Staff Loans
-Retirement Benefits
-Medical Cover
-Overtime Claims
-Leave Allowances
-Daycare for Staff
Children
-Staff Recruitment
-Staff Training &
Development
-Staff Deployment
& Transfers
-Staff Performance
Management
-Promotions
-
ADMINISTRATIVE
ASSISTANT
DISCIPLINARY
COMMITTEE
CHANGE
MANAGEMENT

46. HR ORGANIZATION STRUCTURE
The organizational structure of HR
is usually very flexible and it reflects
the immediate need of the
organisation. There is no modern
organisation where the HRM
organizational Structure stayed the
same for 18 months.

47. TYPES OF ORGANISATIONAL STRUCTURE
 HR department in line organisational structure.
 HR department in functional organisational
structure.
 HR department in line and staff organisational
structure.
 HR department in divisional organisational
structure.
 HR department in matrix organizational
structure.

48. H R DEPARTMENT IN LINE
ORGANIZATIONAL STRUCTURE
C.E.O.
H R Manager
Training OfficerEmployment Officer Wage & Salary Officer Welfare Officer
clerks clerks clerksclerks

49. H R DEPARTMENT IN FUNCTIONAL
ORGANIZATIONAL STRUCTURE
C.E.O.
H R Manager
Training OfficerEmployment Officer Wage & Salary Officer Welfare Officer
clerks clerks clerksclerks

50. H R DEPARTMENT IN LINE & STAFF
ORGANIZATIONAL STRUCTURE
C.E.O.
H R Manager
Training OfficerEmployment Officer Wage & Salary Officer Welfare Officer
clerks clerks clerksclerks
Staff Function
Line Function

51. H R DEPARTMENT IN DIVISIONALISED
ORGANIZATIONAL STRUCTURE
C.E.O.
H R Manager
Training OfficerEmployment Officer Wage & Salary Officer Welfare Officer
clerks clerks clerksclerks
H R Officer
(Northern Division)
H R Officer
(Southern Division)
H R Officer
(Eastern Division)
H R Officer
(Western Division)

52. H R DEPARTMENT IN MATRIX
ORGANIZATIONAL STRUCTURE
C.E.O.
G.M.
H. R.
Department
Engineering
Department
Finance
Department
Marketing
Department
Project A
Project B
Project C

53. Human
Resource
Development

54. SIGNIFICANCE OF HRD
 It refers to the Knowledge, skills, abilities,
talents, aptitude, values and beliefs of an
Organizational Work force.

55. CHARACTERISTICS OF HR
 HR is complete humanbeing, emp enter with
their own values and sentiments.
 Competencies are developed through HRD
Programmes.
 Background, expectations and values vary
from person to person, hence every one
should be managed differently.

56. FEATURES OF HRD
 HRD is a systematic approach
 HRD is a continuous Process approach
 HRD is multidisciplinary
 HRD is embodied with techniques and
processes
 HRD develops skills at all fn levels

57. SCOPE FOR HRD
 Recruiting with possibilities of Dev.
 Selecting to meet future demands
 Analysing, Appraising & developing
performance of employees
 Training to acquire new skills
 Planning for succesion
 Learning through Group dynamics, Job
rotation, Enlargement & empowerment.

58. NEED FOR HRD
 Changes in Economic policies
 Changing Job requirements
 Need for multi skilled HR
 Orgn Visibility and Transformation Process
 Technological Advances
 Organizational Complexity
 Human Relations

59. HRD OBJECTIVES
 To Prepare the employee to meet the present
and changing future job requirements.
 To prepare for higher level jobs.
 To enhance Orgn. Capabilities.
 To ensure smooth and efficient working of the
Orgn.

60. HRD FUNCTIONS
 Performance Appraisal
 Employee Training
 Executive Development
 Career Planning & Development
 Succession plng
 Involvement in Quality Circles
 Worker’s Participation in Mgt

61. TECHNIQUES/ METHODS/INSTRUMENTS
 Performance App / Potential Appraisal
 Career Plng / CareerDevelopment
 Employee Training / Executive development
 Organizational Change / Orgn Development
 WPM / Qly Circles
 Employee Councelling / Team work / Role
Analysis
 Monetary rewards/Employee
Benefits/Grievance Mechanism

62. HR Strategies &
Organizational
Strategies

63. “WHAT IS STRATEGY”?
 Unified, comprehensive and integrated plan
designed to ensure that the basic objectives
of the enterprise are achieved”
 StrategicManagement:
 Cross functional process to view the Orgn as
a Single system.
 Matching Strengths with Opportunities.
 Set of decisions and actions to achieve Orgn.
Objectives.

64. MISSION, VISION AND OBJECTIVES
 Vision: An Organizational Vision is to identify
What they want to be? / What they want to
create?
 Mission: It relates to the Company’s
existence with the needs of the Society.
 Objectives: These are ends towards which
activity is aimed. Accomplishment of Mission
requires formulation of number of objectives.

65. STRATEGY – AN OVERLOOK
 SWOT Analysis.
 Formulation of Strategies.
 Selecting the best Strategy.
 Strategy Implementation.
 Strategy Evaluation and Control.

66. LEVELS IN STRATEGIES
 Corporate Level Strategies.
 Stability Strategy.
 Growth Strategies.
 Concentration Strategies.
 Merger and Acquisiton Strategies.
**Horizontal Integration. ( Related Diversification )
**Conglomerate Diversification. ( Diversification into unrelated activity )
**Joint Ventures. ( Two firms carry out a specific project )
 Retrenchment Strategies. ( Liquidation & Divestment )
 SBU Level Strategies.
 Low cost Leadership. ( Enhancing Labour Productivity )
 Differentiation Strategy. ( Produce pdt different from others )
 Focus/ Niche Strategy. ( Concentrate on a specific product )
 Functional Level Strategies.

67. International HRM
( Global
Environment )

68. INTERNATIONAL HRM ( GLOBAL ENVIRONMENT)
 International Co: “Export the Pdt
manufactured in the home country.”
 Multinational Co: “ Establishes
branches/subsidiaries in various countries
and operate as a domestic company”

69. INTERNATIONAL HRM ( GLOBAL ENVIRONMENT)
 Global Co: Produces Globally and Market
Locally (or) Produces locally and Market
Globally.
 Transnational Co: Produces, Markets,
Invests and Operates across the world.

70. SOURCES OF GLOBAL RECRUITMENT
 Parent Company Nationals.
 Host Company Nationals.
 Third Country Nationals.

71. GLOBAL SELECTION APPROACH
 Ethnocentric Approach
 Polycentric Approach
 Geocentric Approach
 ## Concept of Expatriates

72. COMPENSATION IN GLOBAL ENVIRONMENT
 Expatriate Pay
 Gratuity
 Allowances
 Taxation

73. Human Resource Planning and Recruitment
Unit - II

74. HR PLANNING
 HR Planning is the process of examining an
organizations’ future human resource need.
 It involves:
 Identifying and acquiring the right number of people with the
proper skills
 Motivating them to achieve high performance
 Creating interactive links between business objectives and
resource planning activities

75. Human Resource Planning (HR Planning) is both a process and a set of plans.
It is how organizations assess the future supply of and demand for human
resources.
An effective HR plan also provides mechanisms to eliminate any gaps that may
exist between supply and demand. Thus, HR planning determines the
members and types of employees to be recruited into the organization or
phased out of it.
Dynamic by nature, the HR planning process often requires periodic
readjustments as labor market conditions change.
HUMAN RESOURCE PLANNING

76. Technological forecasts
Economic forecasts
Market forecasts
Organizational planning
Investment planning
Annual operating plans
Annual employment
requirements
Numbers
Skills
Occupational categories
Existing employment
inventory
After application of expected
loss and attrition rates
Variances End
If surplus If shortage
Decisions
Layoff,
retirement,
etc.
Decisions
Overtime,
recruitment,
etc.
End End
Strategic Planning Human Resource Demand Human Resource Supply
Compared
with
If none
Action
Decisions
HRP PROCESS

77. All effective HR planning shares certain features. It is generally agreed that HR
planning involves four distinct phases or stages:
Situation analysis or environmental scanning
Forecasting demand for human resources
Analysis of the supply of human resources
Development of plans for action
THE HRP PROCESS

78. WHAT IS HRP?
 HRP is a sub-system of total organizational planning.
 HRP facilitates the realization of the company’s
objectives for the future by providing the right type and
number of personnel
 HRP is also called Manpower planning, Personnel
planning or Employment planning

79. BENEFITS OF HRP
 Create reservoir of talent
 Prepares people for future
 Expand or Contract
 Cut Costs
 Succession Planning

80. FORECASTING TECHNIQUES
 Managerial Judgment
 Ratio trend analysis
 Work Study Techniques
 Delphi Technique
 Flow Models
 Others

81. FACTORS IN DEMAND FORECASTING
 Social factors – Working conditions, Govt. regulations,
environmental conditions, religious, cultural.
 Technological Factors
 Political Factors – Trade restrictions, War etc.
 Economic Factors
 Demand generation
 Growth
 Employee Turnover

82. JOB ANALYSIS
 Job Analysis is not a one time activity as jobs are
changing constantly
 The job and not the person – an important
consideration in job analysis is conducted of the job
and not of the person
 It simply highlights what are the minimum activities that
are entailed in a job.

83. JOB ANALYSIS
 Skill Range
 Does the job cover a reasonable but not too
extensive range of different tasks?
 Are there opportunities to use knowledge and
skills associated with effective performance of
the job?
 Can the individual make full use of their skills
and develop their skill base?

84. JOB ANALYSIS
 Job Purpose
 Is the purpose of the job clearly and
unequivocally
 Is its contribution to the organisation’s objectives
evident?
 Is its contribution to its dept obvious?
 Is the post holder responsible for the successful
completion of the whole job?
 Do the internal systems help the post holder do
the job?

85. JOB ANALYSIS
 Relationships
 Are the formal relationships clearly specified and
related to the achievement of the objectives?
 Is there opportunity to develop working
relationships within and across the department’s
boundaries?
 Are colleagues available with whom the post
holder can discuss professional issues

86. JOB ANALYSIS
 Job Outcomes:
 Can the post holder see the result of their
efforts?
 Can the results of the post holders efforts be
recognised?
 Does the post holder have the opportunity to
influence their own levels of performance?
 Rewards
 Are the rewards appropriate and obtainable?
 Are the rewards linked directly with the
performance of the post holder?

87. STEPS IN JOB ANALYSIS
1. Organizational Analysis – Overview of various jobs in
the organization and the linkages between them and
the contribution of various jobs towards achieving
organizational efficiency and effectiveness.
2. Uses of Job Analysis Information
3. Selection of jobs for analysis
4. Collection of Data
5. Preparation of Job description – tasks, duties,
responsibilities
6. Preparation of Job Specification – personal attributes
required in terms of education, training, aptitude and
experience to fulfill the job description

88. Tasks Responsibilities Duties
Job
Analysis
Job Descriptions
Job Specifications
Knowledge Skills Abilities
Human Resource Planning
Recruitment
Selection
Training and Development
Performance Appraisal
Compensation and Benefits
Safety and Health
Employee and Labor
Relations
Legal Considerations
Job Analysis for Teams
Job Analysis: A Basic Human Resource Management Tool

89. JOB DESCRIPTION
 A job description
 Clarifies work functions and reporting relationships,
helping employees understand their jobs.
 Aids in maintaining a consistent salary structure.
 Aids in Performance evaluations.
 Is a set of well written duty statements containing
action words which accurately describe what is being
done.

90.  Duty statements
 should focus on primary, current, normal, daily duties and
responsibilities of the position (not incidental duties, an
employee’s qualifications or performance, or temporary
assignments). Related or similar duties should be combined
and written as one statement.
 Should be a discreet, identifiable aspect of the work
assignment, described in one to three sentences, and should
be outcome-based, allowing for alternate means of performing
the duty, changes in technology, preferences of employees
and supervisors, and accommodations of workers with
disabilities, without altering the nature of, and/or the duty itself.

91. WRITING A JD
 Duties are to be listed in order of importance, not
necessarily frequency.
 There is no need to group tasks/duties under sub
headings, however it is acceptable.
 Commence each statement with a verb eg 'processes',
'maintains', 'records' etc, .
 Avoid using the term 'responsible for' rather describe the
action e.g. 'obtains', 'coordinates' etc.

92. WRITING A JD
 Frequencies should be identified in multiples of 5%.
Duties that take less than 5% of the officer's time
should not be shown as separate but grouped with
other duties.
 Use action verbs which tell what the position does.
Examples include "supervises", "programs", "directs"
and "analyzes". Provide specific examples to
illustrate the duties Avoid ambiguous terms such as
"oversees" or "manages", instead, describe the
activities involved in overseeing or managing.
Quantify activities when possible. Examples may
include: How often is the activity performed? How
much money does this position manage? What is
the volume of work handled?

93. WRITING A JD : PRIMARY FUNCTION
 What is the Position's objective?
 What is the Role of Position (including key
relationships)?
 Position summary [Briefly state the purpose or
objective of the position]:
 Essential job functions [State the major
responsibilities, indicate New (N) or Existing (E), and
the estimated percent of time devoted to each -
include descriptive statements of typical or
representative tasks associated with the major
responsibilities/functions]:
 State briefly the general function of your position,
including the basic nature of the department and the
relationship of your position with other positions in

94. PERSON SPECIFICATION
 Person Specification is a statement
derived from the job analysis process
and the job description
 Of the characteristics that an individual
would need to possess in order to fulfill
the requirements of a job

95. REASONS FOR CONDUCTING JOB
ANALYSIS
 Staffing – would be haphazard if recruiter did not
know qualifications needed for job
 Training and Development – if specification lists a
particular knowledge, skill, or ability, and the person
filling the position does not possess all the
necessary qualifications, training and/or
development is needed
 Compensation and Benefits – value of job must be
known before dollar value can be placed on it

96. REASONS FOR CONDUCTING JOB
ANALYSIS (CONTINUED)
 Safety and Health – helps identify safety and health
considerations
 Employee and Labor Relations – lead to more objective
human resource decisions
 Legal Considerations – having done job analysis important
for supporting legality of employment practices

97. CONDUCTING JOB ANALYSIS
The people who participate in job
analysis should include, at a minimum:
 The employee
 The employee’s immediate supervisor
 Other key stakeholders in the organization

98. HR Processes – An Employee Life Cycle

99. ROUTINE HR FUNCTIONS
 Manpower planning
 Recruitment and Selection
 Training & Development
 Appraisals – Performance Management
 Transfers / Promotions
 Compensation and Benefits

100. NON ROUTINE HR FUNCTIONS
 Culture Management
 Change Management
 Cross Cultural Issue Management
 HR Audit
 HR Accounting
 Outsourcing of HR
 VRS / Existing Employee Management /
Succession Planning

101. HR PROCESS MAPPING
Business
Planning
HR Policy HR
Planning
Recruitment
Selection
Performance
Management
Compensation
Management
Talent
Management
Training
Development
HR Systems
Data Mgmt
Employee
Relations
Occupational
Health and Safety

102.  Recruitment: Overall process of
defining jobs profiles and inviting
applicants.
 Selection: Specific process of
narrowing the focus and selecting the
perfect fit
Definitions

103. MANPOWER PLANNING
 Business Needs
 Financial Feasibility
 Future Plans
 Brand Name

104. MANPOWER PLANNING
 Why does the position exist?
Temporary Replacement
Permanent Replacement
Creation of new position

105. RECRUITMENT AND SELECTION PROCESS
 Business Plan
 Related HR Plan
 Competencies
 People
 Compensation and Benefits
 Numbers
 Current : Budgeted and Actual
 Future : Short Term and Long Term
 Three Conditions
 Current = Future
 Maintenance B = A
 Vacancy Filling B > A
 Current > Future
 Redundancy Planning
 Current < Future
 Recruitment Plan

106. RECRUITMENT AND SELECTION PROCESS
 Recruitment Plan
 Position Description/Specifications
 Person Specifications
 Method of Recruitment
 Internal
 Reference/Promotions/Transfers
 External
 Advertisement
 Where to advertise
 Writing an advertisement
 Consultants
 Retainer
 Multiple
 Internet
 Receiving Applications and Screening/Filing

107. RECRUITMENT AND SELECTION PROCESS
 Screening /Short-listing
 Coding
 Computer aided screening
 Selection Tools
 Written Tests
 Group Discussions
 Interviews
 Assessment Centres
 Reference Checks
 Offer
 Joining

108. WHY OBJECTIVE SETTING?
 Gives direction to job.
 Helps focus on important job areas.
 Assists review and change in job emphasis.
 Provides a basis for appraisal, counselling
and feedback.
 Increases mutual job understanding with
superior.

109. HRS ROLE IN PERFORMANCE MANAGEMENT
 Delivering time-lines
 Ensuring timely adherence
 Auditing the objectives jointly with line
managers
 Ensuring objectives are in line with
organisational goals
 Requesting modification if required

110. Training & Development and
Performance Appraisal
UNIT - III

111. INTRODUCTION
 Performance appraisal is an evaluation of
the performance of an employee against the
job standards in terms of quantitative,
qualitative and behavioural aspects at the
workplace.
 A successful PA process involves explaining
the job, communicating expectations,
observing and documenting behaviour and
providing frequent informal feedback.

112. WHY PA ?
 It helps the supervisor and the employee
to –
 Understand individual strengths &
weaknesses of performance
 Mutually understand expectations for
performance
 Form a basis for personnel action
 Determine training & development needs of
employees

113. PERFORMANCE APPRAISAL AND TRAINING NEEDS
 Review org. goals to associate preferred org.
results in terms of units of performance i.e.
quality, quantity, cost or timeliness.
 Specify desired results for the domain, gives
guidance & focus on results needed by other
domains Learning goals
 Prioritize the range of results needed from the
employee helps the supervisor understand what
training needs to be given.

114. PERFORMANCE APPRAISAL AND TRAINING NEEDS
 Identify measures to evaluate if an how well the
domain’s desired results were achieved.
 Identify standards for evaluating how well the
desired results were achieved.
 Document a performance plan – desired results,
measures and standards.
 Conduct ongoing measurement to track the
performance of the employee.

115. PERFORMANCE APPRAISAL AND TRAINING NEEDS
 To provide an opportunity for the employee for
introspection, Self-evaluation and goal-setting so that
he remains on the path of development.
 To prepare the employees for higher jobs by
reinforcing development of behaviour & qualities for
these higher level positions.
 To generate relevant data on each employee
periodically.
 To enable employee to adopt the norms and values
of the organization and develop commitment.

116. PERFORMANCE APPRAISAL PROCESS
 Done on certain criterions or standards fixed
in advance.
 Employee should be aware of those
yardsticks.
 Steps in PA
 Establishing standards
 Communicating stds. to employees
 Measuring actual performance.
 Comparing actual with stds.
 Discussing reports with employees
 Taking corrective action

117. Individual Evaluation Methods
• Confidential report
• Essay evaluation
• Critical incidents
• Checklists
• Graphic rating scale
• Behaviorally anchored rating scale
• MBO

118.  Group Appraisal
 Ranking
 Paired comparison
 Forced distribution
 Performance tests
 Field review technique
PERFORMANCE APPRAISAL METHODS

119. Performance Appraisal Methods
Traditional
methods
1. Confidential report
2. Essay evaluation
3. Critical incidents
4. Checklists
5. Graphic rating scale
6. Straight Ranking
7. Paired comparison
8. Forced distribution
9. Grading system
10.Field review technique
11.Nominations
12.Work samples

120. Performance Appraisal Methods
Modern methods
1. Assessment centre
2. Human resource accounting –
costs & contribution
3. Behaviorally anchored rating scale
4. MBO
5. 360º performance apparaisal

121. CRITICAL INCIDENT METHOD
Ex: A fire, sudden breakdown, accident
Workers reaction scale
A informed the supervisor immediately 5
B Become anxious on loss of output 4
C tried to repair the machine 3
D Complained for poor maintenance 2
E was happy to forced test 1

122. CHECKLIST METHOD
Simple checklist method
Weighted checklist method
Forced choice method
Simple checklist method:
Is employee regular Y/N
Is employee respected by subordinate Y/N
Is employee helpful Y/N
Does he follow instruction Y/N
Does he keep the equipment in order Y/N

123. WEIGHTED CHECKLIST METHOD
weights performance rating
(scale 1 to 5 )
Regularity 0.5
Loyalty 1.5
Willing to help 1.5
Quality of work 1.5
Relationship 2.0

124. FORCED CHOICE METHOD
Criteria Rating
1.Regularity on the job Most Least
•Always regular
•Inform in advance for delay
•Never regular
•Remain absent
•Neither regular nor irregular

125. GRAPHIC RATING SCALE
• Continuous Rating Scale
• Discontinuous Rating Scale
Employee name_________ Deptt_______
Rater’s name ___________ Date________
------------------------------------------------------------------------
Exc. Good Acceptable Fair Poor
5 4 3 2 1 _
Dependability
Initiative
Overall output
Attendance
Attitude
Cooperation
Total score Continuous Rating Scale

126. DISCONTINUOUS RATING SCALE
Attitude
No
Interest
Indifferent
Interested
Enthusiastic
Very
enthusiastic

127. BARS (BEHAVIORALLY ANCHORED RATING SCALE)
Step 1. Identify critical incidents
Step 2. Select performance dimension
Step 3. Retranslate the incidents
Step 4. Assign scales to incidents
Step 5. Develop final instrument

128. MBO PROCESS
 Set organizational goals
 Defining performance target
 Performance review
 feedback

129.  Group Appraisal
 Ranking
 Paired comparison
 Forced distribution
 Performance tests Field review technique
PERFORMANCE APPRAISAL METHODS

130. RANKING METHOD
Employee Rank
A 2
B 1
C 3
D 5
E 4

131. PAIRED COMPARISON METHOD
A B C D E Final Rank
A - - - + + 3
B + - - + + 2
C + + - + + 1
D - - - - + 4
E - - - - - 5
No of Positive evaluation
Total no. of evaluation * 100 = employee superior
evaluation

132. FORCED DISTRIBUTION METHOD
10% 20% 40% 20% 10%
poor Below
average
average good Excellent
No.
of
employees
Force distribution curve

133. FIELD REVIEW METHOD
Performance subordinate peers superior customer
Dimension
Leadership ^ ^
Communication ^ ^
Interpersonal skills ^ ^
Decision making ^ ^ ^
Technical skills ^ ^ ^
Motivation ^ ^ ^

134. PERFORMANCE CRITERIA FOR EXECUTIVES
 For top managers
 Return on capital employed
 Contribution to community development
 Degree of upward communication from
middle-level executives
 Degree of growth and expansion of
enterprise.

135. FOR MIDDLE LEVEL MANAGERS
 Departmental performance
 Coordination among employees
 Degree of upward communication from supervisors
 Degree of clarity about corporate goals and policies

136. FOR SUPERVISORS
 Quality and quantity of output in a given period
 Labor cost per unit of output in a given period
 Material cost per unit in a given period
 Rate of absenteeism and turnover of employees
 No of accidents in a given period

137. Compensation Management
UNIT - IV

138. A DEFINITION . . .
 All forms of
 financial return,
 tangible services and
 benefits
 that employees receive as part of their
employment relationship

139. COMPONENTS OF A TOTAL COMPENSATION
PROGRAM - 1
 Financial
 Direct
 wages, salaries, commissions, bonuses
 Indirect
 insurance plans
 life, health, dental, disability
 social assistance benefits
 retirement plans, social security, workers’ comp
 paid absences
 vacations, holidays, sick leave

140. COMPONENTS OF A TOTAL COMPENSATION
PROGRAM - 2
 Non-Financial
 The Job
 interesting, challenging, responsible
 opportunity for recognition, advancement
 feeling of achievement
 Job Environment
 policies, supervision, co-workers, status
symbols, working conditions, flextime,
compressed work week, job sharing,
telecommuting, flexible benefits programs

141. FACTORS THAT INFLUENCE WAGE
LEVELS
WAGE
MIX
Conditions of
Labor Market
Area Wage
Rates
Cost of
Living
Collective
Bargaining
Legal
Requirements
Compensation
Policy of
Organization
Worth of
Job
Employee’s
Relative Worth
Employer’s
Ability to Pay

142. STEP 1 - ESTABLISH GENERAL WAGE LEVEL FOR
ORGANIZATION
 Factors to consider:
 Other firm’s rates
 Union demands
 Cost-of-living changes
 Firm’s ability to pay

143. STEP 2 - ESTABLISH WAGE STRUCTURE (THE
PAY FOR EACH JOB)
 Employ a job evaluation system
 Ranking
 Job Classification
 Point System
 Factor Comparison
 Results:
 pay grades
 rate ranges

144. STEP 3 - ESTABLISH PAY FOR EACH INDIVIDUAL
ON EACH JOB
 Inputs:
 Performance appraisal information
 Seniority system

145. A PAY MODEL -- 3 BASIC COMPONENTS
 I. Compensation Objectives
 II. Foundation Concepts
 III. Techniques for Management

146. A PAY MODEL
I. COMPENSATION OBJECTIVES - 1
 Organization Performance
 Labor Costs
 Attitudes and Behaviors
 Laws and Regulations

147. A PAY MODEL
I. COMPENSATION OBJECTIVES - 2
 Influence forms & procedures
 For example:
 if objective is pay for performance, emphasize
incentives, merit pay plans
 if objective is stable, experienced workforce,
emphasize seniority-based pay

148. A PAY MODEL
II. FOUNDATION CONCEPTS
 Equity
 External Equity
 Comparison: outside organization
 Internal Equity
 Comparison: inside organization, among
jobs
 Employee Equity
 Comparison: individuals doing same job
for same organization

149. A PAY MODEL
III. TECHNIQUES FOR MANAGEMENT
 A. Pay Level
 B. Pay Structure
 C. Individual Pay Rates

150. A PAY MODEL
III. TECHNIQUES FOR MANAGEMENT
A. PAY LEVEL
 Defined: average rates paid by
employer
 Applicable concept: External Equity
 3 Pure Alternatives
 lead competition
 match competition
 lag competition
 Mechanism used: Market Wage Survey

151. MARKET WAGE AND SALARY SURVEYS
 Select key jobs.
 Determine relevant labor market.
 Select organizations.
 Decide on information to collect:
wages/benefits/pay policies.
 Compile data received.
 Determine wages and benefits to pay.

152. MARKET WAGE LEVELS
•Which company is leading the market?
•Which company is lagging the market?
•What would the wage level line look like for a company
that was meeting/matching the market?

153. A PAY MODEL
III. TECHNIQUES FOR MANAGEMENT
B. PAY STRUCTURE
 Defined: pay rates for different jobs
within a single organization
 Applicable concept: Internal Equity
 Pay more for jobs with
 greater qualifications
 less desirable working conditions
 more valuable output
 Mechanism used: Job Analysis & Job
Evaluation

154. JOB EVALUATION
 defined: the systematic evaluation of
job descriptions
 outcome: a hierarchy of organizational
jobs according to their content and
value to the organization
 Methods:
 ranking
 classification
 factor comparison
 point method

155. JOB RANKING SYSTEM
Simplest and oldest system of job
evaluation by which jobs are arrayed
on the basis of their relative worth

156. JOB CLASSIFICATION SYSTEM
System of job evaluation by which jobs
are classified and grouped according
to a series of predetermined wage grades

157. POINT SYSTEM
Quantitative job evaluation procedure
that determines the relative value of a job
by the total points assigned to it

158. FACTOR COMPARISON SYSTEM
Job evaluation system that permits the
evaluation process to be accomplished
on a factor-by-factor basis by developing
a factor comparison scale

159. HAY PROFILE METHOD
Job evaluation technique using three
factors – knowledge, mental activity,
and accountability – to evaluate
executive and managerial positions

160. A PAY MODEL
III. TECHNIQUES FOR MANAGEMENT
C. INDIVIDUAL PAY RATES
 Defined: pay rates for different
individuals doing the same job within an
organization
 Applicable concept: Employee Equity
 2 Techniques
 Flat Rate
 Pay Ranges
 Mechanisms used: Performance or
Seniority

161. WAGE CURVE
Curve in a scattergram representing
the relationship between relative worth
of jobs and wage rates

162. COMPONENTS OF THE WAGE STRUCTURE

163. PAY GRADES
Groups of jobs within a particular class
that are paid the same rate or rate range

164. ELEMENTS OF THE RATE RANGE

165. COMMON PAY GRADE RANGES
 Laborers & Trades, up to 20%
 Clerical, Technical, Para-professional, 15-
49%
 First Level Supervisors, Professionals 30-
50%
 Middle and Senior Level Management, 40-
100%

166. MONITORING COMPENSATION COSTS
 Compra-Ratio
 Formula:
 A compra ratio < 1 indicates lag
 A compra-ratio > indicates excess
Actual Average Pay for Grade
Midpoint Pay for Grade

167. HOW WOULD YOU HANDLE OUTLIERS?
An individual whose current pay is beyond
the maximum of the pay grade for his/her
job
An individual whose current pay is
below the minimum of the pay grade
for his/her job

168. FEDERAL WAGE LAWS
Davis-Beacon Act
of 1931
Walsh-Healy Act
of 1936
Fair Labor
Standards Act of
1938

169. NONEXEMPT EMPLOYEES
Employees covered by the overtime
provisions of the Fair Labor Standards Act

170. EXEMPT EMPLOYEES
Employees not covered by the overtime
provisions of the Fair Labor Standards Act

171. COMPARABLE WORTH
The concept that male and female jobs
that are dissimilar, but equal in terms
of value or worth to the employer,
should be paid the same

172. Compression of differentials between
job classes, particularly the differential
between hourly workers and their managers

173. Performance Evaluation
Unit - V

174. What is Performance Appraisal
• It is the process by which organization evaluate
employee job performance.
• It is a process that involves determining and
communicating to an employee how he or she is
performing the job and ideally establishing a plan
of improvement.
• It is a systematic and objective way of evaluating
both work-related behaviour and potential of
employees.
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175. Difference between PM and PA
6/29/2020
Processes used to identify,
encourage, measure,evaluate,
improve, and reward
employee performance.
The process of evaluatinghow
well employees perform their
jobs and then communicating
that information to the
employees.

176. Objectives
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177. Benefits of Performance Appraisal
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178. Who conducts appraisal?
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179. 6/29/2020 180

180. Appraisal Factors used in A.C.C. ltd
• Ability to take
decisions
• Leadership
• Employee relation -
ship
• Delegation
• Ability to run
meetings
• Organising ability
• Loyalty
• Initiative
• Ability to
communicate
• Judgement
6/29/2020 181

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