1. Introduction
Human resources create organisations
and help them to survive and prosper.
They essentially enable organisations to
retain people.
Through their :
philosophies,policies,procedures and
practices.
2. Lessons objectives
Objectives of HR.
Importance and changing role of HR.
Origin and growth of HR in India.
Reasons for slow growth of HR in
India.
Evolving role of HR-Man.
HR AUDIT
3. Definitions of HRM
Flippo states HR as:
Planning ,organising,directing and
controlling of the
procurement,development,compensationi
ntegration,maintenance of human
resource to the end that
individual,organisational and societal
objectives are accomplished
4. Objectives of HRM
To improve the service rendered by the
enterprise through building better
employee morale.
To establish in the minds of everybody.
To create and utilise an able and
motivated workforce.
5. contd
To recognise and satisfy individual
and group needs.
To employ the skills and knowledge of
employees efficiently and effectively.
To strengthen and appreciate the
human assets.
6. Contd…
To maintain morale and sound human
relations.
To enhance job satisfaction and self
actualisation.
To develop QWL.
7. Scope of HRM
Nature of human resource management.
Employee selection.
Employee remuneration
Employee motivation
Employee health and safety.
Industrial relations.
Employee education.
9. Corporate
Good HR practices help in attracting
and retaining good people.
Develop right skills and attitude.
Securing cooperation of employees
through motivation.
Effectively utilising human resources.
10. Professional
Improve QWL.
Opportunity for development.
Allocating work properly and scientifically.
Maintaining healthy relation between
individual and groups.
11. Social
Employment opportunities multiply.
Scarce talentys are put to best use.
Organisation which treat human
resource as assets have excellent
results.
12. Contd…
Balance between job and job seekers.
Provides suitable employment that
gives social and psychological
satisfaction to people.
14. Changing role of HRM
Recognise talent and nurture .
Shifting from a protector to planner.
Help in changing from traditional to
modern.
Selection process more appropriate and
benefit package more individualistic.
19. Personnel management policies
Acquisition of personnel
Training and development
Appraisal and compensation of
human resource.
Human resources Mobility.
21. Role of Personnel Manager
Departmental administration.
Recruitment,selection,Job analysis,job
description and performance appraisal.
Training and induction
Wage and salary.
24. Staff role of HR-Dept
Policy formulation.
Advising
Assistance and service
Monitoring and control.
25. Origin and growth of HR-India
1930-Royal commission formation.
Appointment of labour officers.
Second world war.-welfare officers.
1947-Industrial disputes act-
Industrial relation officers
27. Slow growth of HR
Late arrival of factory system
Low status of industrial worker.
Professionalisation of HRM
Late awareness of social responsibility
and Government attitude.
28. Factors impeding Growth
Abundance of cheap labour.
Weak labour movement
Authoritarian culture.
Technological backwardness
Instability in employment.
Unhealthy growth of trade unions
Migratory characteristics of Indian
labour.
29. Evolving role of HR Man in India
Origin of Human Resource Management
in India.
The Police Man
The welfare Man.
The Law Man.
33. Training and Development
Training improves
Changes and moulds the employees
Skill,Behaviour,Aptitude and attitude
towards the requirement of the job.
Training bridges the gap between job and
employees specification.
34. Contd…
Management development is a
systematic process of growth and
development by which their abilities
to manage.
It is a planned effort to improve
current current or future managerial
performance.
35. Organisation Development
Organisation development is the
modern approach to management of
change and human resource
development.
OD is a complex educational strategy
It is used to increase organisational
effectiveness and wealth .
36. Contd…
Through planned intervention.
Concentrates on
norms,values,attitudes,relationship
and organisational climate.
Aims at improving the organisational
effectiveness and job satisfaction of
employees.
37. Organisation/Job design
Organisational design deals with
structural aspects of organisation
Aims at analysing roles and
relationships
Develops relationship between
exercise of authority and exchange.
38. Contd…
Michael Armstrong defines job design
as job in term of its duties and
responsibilities.
Understanding the job design to
motivate the individual and the
organisation.
39. Planning
HRP is defined as the process of
assessing the HR needs in the light of
organisational goals.
Efficient use of human,capital and
technology.
Estimation of future requirements.
40. Selection and staffing
Searching for prospective employees
and stimulating them to apply.
Selecting the right people at right
time.
Selection process involves judging on
variety of dimensions.
41. Contd…
Selection includes
Application form
Initial interviews
Reference checks
Physical examination
Final interview.
42. Sub factors of staffing
Recruitment of getting applications.
Selection of the best.
Transfer and promotion.
Training people who are qualified.
43. Importance of proper staffing
Helps in discovering talented
employees.
Ensures greater production.
Avoids sudden distruption of enterprise
Provides information to management
for internal succession.
44. Personnel research and information
system
Research means systematic and goal
oriented investigation.
Managers make decision and solve
problems
Research can lead to better HRM
practices.
45. Compensation/Benefits
Wages and salaries (the payment received for
performing work) are a major component of
compensation
Reward process is to motivate the employees.
Benefits such as ESI,leave travel
concession,non financial rewards such as
security,recognition and privileges.
48. Environmental Influence on HRM
Technological Innovation
Economic factors.
Employees organisation.
Labour markets.
49. Contd…
Changing Demand of employers.
Legal factors- Management of Human
resource as per legislation enacted.
Legislations enacted in India
Factories Act, Trade Unions act,Workmens
compensation act ,The payment of wages
act,The minimum wages act,Payment of
gratuity act,The maternity benefit act.
50. Human Resource in the Country
Change in structure of employment
and their different backgrounds.
Changes that have taken place in the
structure of work force.
Increased level of formal education.
51. HR Audit
HR records provide information
regarding the utilisation of human
resources.
Critical evaluation of man power
programme is required to identify the
areas where improvement required.
52. Contd…
Audit is an important aspect of
management control.
It is evaluation of
policies,programmes and procedures
in the area of HR management.
53. Objective of HR Audit
Review the whole system of
management.
To evaluate the extent to which line
managers have implemented the
policies and practices
To review HR system in comparison to
other organisations.
54. Contd….
To locate gaps and lapses.
To evaluate various HR policies.
To evaluate HR staff.
To seek answers to what ? Why? Why
not?
55. Need of HR audit
To increase size of organisation.
To change the philosophy of
management towards HR.
To increase the strength and
influence of trade unions.
56. Contd….
To change HR management
philosophy,personnel policies and
practices.
To increase dependence on the HR
system.
59. Utilisation
Identificatin of merits
Quantitative
Capacity utilisation,idle
time,statistics,extra-time
statistics,backlogs,turnover per
employee,profit per rupee….
60. Training and development
Training programmes,supervisory and
management development
programmes,systematic
promotions,career planning….
Time taken in training,apprentice
ratios,scrap losses,productivity
increases.
61. Compensation
Job evaluation programme,wage and
salary surveys,complaint from
employees about wage and salaries.
Wage and salary
differentials,bonus,ctc.
62. Integration and maintainance
House organ,employees hand
book,employees voluntary
participation in optional service
programmes.
Quantitative
Measured morale,measured
communication,absenteeism and
turnover rates.
63. Labour relations
Labour management
committes,contract interpretations,no
strike clause.
Work stoppages,grievances and their
settlement,arbitrations,costs.
64. Significance of HR Audit
Employees participation in
organisational activities is essential
for the success of the organisation.
Provides the required feed back.
CTC
Governments intervention can be
restricted.
65. Benefits of HR Audit
Identifies the contribution of HR
department.
Improves proffesional image
Encourages greater responsibility and
professionalism amongst members of
HR department.
Classifies the HR departments duties.
Stimulates equality
66. Contd…..
Identifies critical personnel problems
Timely compliance with legal
requirements.
Reduces Human resource cost.
67. HR Audit Areas and levels
Planning
Staffing and development.
Organising
Motivation and Commitment
Administration.
Research and innovation.
73. Research and innovation
Level-1 : Changes ,experiments
research reports,publication.
R&D approach in all areas
Level-3 Test all old new theories.
74. Scope of HR audit
Forecasting
Recruitment, selection
,careers,promotions ,training
Areas of leadership,welfare,PA….
75. HR Audit Process
Identify indices,indicators,statistical
ratios…
Variation in time frame.
Variations of different department.
Draw trend lines and submit report.
76. Audit results
Close look at the
policies,manuals,procedures
Trends in manpower utilisation.
HR depends on HR audit for
improving his own performance.
77. Audit Report
Table of contents.
Preface.
Executive summary
Area wise data,department wise,individual
wise then analysed
Summary of analysis
Appendix
Bibliography.The audit report needs to be
signed by all members.
78. Unit-2 HR Planning
HR Planning is the predetermination of the
future course of action chosen from a
number of alternative course of action for
procuring,developing,managing,motivating
,compensating,career planning,sucession
planning and seperating the human
element of enterprise.
79. Definition of HRP
HRP is the process which includes
forecasting,developing and controlling
by which a firm ensures that it has
right kind of people at the right place
in the right time for doing work which
is economically most useful. By
Geisler.
80. General characteristics of HRP
HRP must incorporate the human
resource needs in the light of
organisational goals.
HRP must be directed towards well
defined objectives.
Right number of people in right place
Should pave way for effective
motivational process
82. Objectives of HRP
Plan adequate number of people to
achieve organisational objectives.
HR planner should have timing and
scheduling of HR planning.
Aid in framing training and
development.
83. Importance of HR planning
Planning acts as a base for
recruitment.
Employees can be trained and
developed in advance.
A balance of Human resource can be
created.
84. Contd…
To keep the cost of recruitment in
check.
To bring a resorvoir of talent
Appropriate man power budget can
be created.
88. Strategies for HRP
Collect ,maintain and interpret
relevant information regarding HR.
Peridically report manpower
objectives,requirements and
exisisting employment and allied
features.
Techniques to understand the
requirement of manpower.
89. Contd…
Measures of manpower utilisation as
components of forecasting.
Suitable techniques for allocation of
work.
Develop and employ methods of
economic assesment of HR.
90. CONTD….
Should evaluate the
procurement,promotion and retention
of the effective HR.
Should analyse the dynamic process
of recruitment,promotion andloss to
the organisation and controll them for
maximum utilisation of individual and
group.
91. Advantage of HRP
Improvement of labour productivity.
Recruitment of qulified HR
Adjusting with rapid technological
changes
Reducing labour turnover.
92. Contd….
Control over recruitment and training
costs .
Mobility of labour.
Facilitating expansion Programmes.
To treat manpower as corparate assets.
93. Limitations of HRP
Inaccuracy
Uncertainties
Lack of support.
Number Game.
97. Responsibility for HRP
Assist ,counsel and pressurise the
operating management to plan and
establish objectives.
Collect and summarise data.
Monitor and measure performance .
To provide research necessary.
98. Job Analysis
The immediate out come of job
analysis is job description.
It is a statement explaining the
contents and essential needs of job
and a summary of the duty to be
performed.
99. contd
Job description gives a precise picture
of features features of each job in
terms of task contents and
occupational requirements.
Job description describes jobs not the
job holder.
100. Contd….
It defines the scope of job
activities,major
responsibilities,positioning of the job in
the organisation.
101. Advantages/Important function
Indicate very clearly the nature and
content of the job to the applicant.
Rewards and punishments can be
legitimised.
Job description serves as an
important basis for wage and salary
Easy to identify the training needs of
the employee
102. Limitation of Job Description
Job tends to be dynamic,not static
and a job description can quickly go
out of date.
The superior and subordinates should
agree with the job description.
Job description must be as accurate
as possible but this is a very difficult
job.
103. Job specification
Job specification is minimum qualities
necessary to perform a job
satifactorily.
Making job description as its base,it
lays down the base of abilities and
qualities.
104. Job Specification
Physical
characteristics:Height,weight,vision,voice
Psychological characteristics:Analytical
ability,mental concentration and
alertness,mechanical aptitude etc…
Personal Characteristics:emotional
stability,good and pleasing manners.
105. Contd…
Responsibilities: Responsibility for the
safety of others, responsibility for
generating confidence and trust,etc…
Demographic characteristics :
Age,gender, education,experience
etc….
106. Recruitment
It is process of searching for
prospective employees and stimulating
and encouraging them to apply for jobs
in an organisation.
Source of recruitment:
Internal
External
108. Merits of internal sources of
recruitment
Absorbing people already acquainted with
the company culture.
Maintains internal motivation very high.
Reduces labour turn over.
Less costly.
109. Demerits
Limits the choice of employees.
Can be biased as role of seniors can
play an important role.
It creates frustration among the
unselected employees.
112. Merits of external source of
Recruitment
Fresh talent and skill come into
organisation.
New employees may try to change
old habits.
Highly qualified and experienced
employees
113. Contd…
Recruitment happening from a large
market,the best selection can be
made.
External sources provide the requisite
type of personnel having the required
skill and standard.
114. Demerits of external sources
Reduce the morale of existing
employees.
Denial of carrier advancement for
existing employees.
Proper evaluation not be possible
because of time constraints.
External recruitment may require
training.
115. Recruitment Policy
A policy is standing plan policies are
directives
A policy assits in decision making.
A frame work to implement and
function.
116. Essentials of policy formulation.
Should be definite ,positive and clear
Should be translatable into practice.
It should be flexible at the same time
should have great transperency.
Should take care of all anticipated
conditions.
117. Contd…..
Take care of sound judgement.
Should confirm economic
principles,statutes and regulations.
General statement of the established
rules.
118. Recruitment policy involves
To find and employ the best qualified
persons for each job.
To retain the best talent by offering
life-time carriers
To facilitate personal growth on the
job.
119. Good recruitment policy
Cover organisational objectives
Identification of recruitment needs.
Ensure long term employment
opportunities.
Preffered source of recruitment.
120. Selection
Selection,either internal or external,is
a deliberate effort of organisations to
select a fixed number of personnel
from a number of applicants .
The primary aim of employee
selection is to choose those persons
who are most likely to perfom their
jobs with maximum effectiveness.
121. Definition of Selection
The hiring process is of one or many
“go-no-go” gauges.
Candidates are screened by the
employer and the shortlisted
applicants go on to the next hurdle
while the unqualified once are
eliminated.
122. Steps in selection procedure
Application blank
Initial interview of the candidate
Employment test.
Aptitude test
Interest test
Intelligence test.
125. Placement
After selecting a candidate he should
be placed on a suitable job.
Most organisation put new recruits on
probation for a given period of time.
The probation period may be
extended if the employees do not
perform.
126. Employees placement process
Collect details about the employees.
Construct the employees profile.
Match between sub group profile and
individual profile.
Compare sub group profile to job family
profile.
127. Contd….
Assign the individuals to job family.
Assign the individuals to specific job
and future counseling and
assessment.
128. Contd…
Definition according to Pigors and
Meyers have defined placement as
determination of the job to which an
accepted candidate is to be assigned
and his assignment to that job.
129. Problems of placement
Employees expectation from the job.
Expectation form the employers are more
than the employees ability or skills.
Technological changes might result in
mismatch between the job and the
employees.
Change in the organisational structure may
result in changes in the job.
130. Induction Programme
According to R.P.Billimoria induction
is a technique by which anew
employee is rehabilitated into
changed surroundings and introduced
to the practices,policies and purpose
of the organisation.
131. Need for orientation
Anxiety of new employees.
Employee joins and finds job not
according to expectation.
Proper induction helps to gel new
employees with old employees.
132. Steps in induction program
Welcoming the new recruit.
Providing knowledge about comp
Providing with companies manual.
Location to work
133. Contd…
Explain department.
Providing information about various
groups.
Details about pay,wage and salary.
Disscusing career prospects.
134. Types of induction prgrm
General induction
Specific orientation
Follow up Induction.
135. Chpt-3 Training
Training is a process of learning a
sequence of programmed behaviour.
It is application of knowledge.
It gives people an awareness of the
rules and procedures to guide their
behaviour and attempts to improve
their performance on the current job.
136. Purpose of training
Is to achieve change.
Enable to perform better
This is achieved through bringing in
positive change.
137. Contd…
Knowledge-Helps trainees to know
facts,policies,procedures and rules
pertaining to job.
Skills- helps him to increse the
technical and manual efficiency.
Attitude-Moulds his behaviour
towards his co-workers.
138. Importance of training
Equips the management to face the
changing pressure.
Results in the increase of quantity
and quality of output.
Leads to job satisfaction and high
morale.
Need lesser supervision.
Trained personnels can meet the
competition of rival organisation.
139. Contd…
Employees can increase their earning
capacity.
Moulds employees attitude and helps
them achieve better.
Economic use of material and
equipments
Reduces absenteesim and labour
turnover.
140. Benefits of organisation
Higher productivity
Better organisation climate
Less supervision.
Man power obsolescence.
Economic operations.
Prevents industrial accidents.
Improves quality
142. Benefits to employees
Personnel growth
Development of new skills.
High earning capacity
Adjust with technology
Increased safety
Confidence
143. Types of training programmes
Induction or orienting training
Job training
Promotional training
Refresher training
145. Steps in training Programme
Discovering or identifying training
needs.
Preparing the instruction or getting
ready for the job
Preparing the trainee
146. Contd….
Presenting the operation
Try out the trainees performance
Follow up or rewards and feedback.
147. Identifying the training needs
Organisational analysis.
Operational analysis
Man Analysis :Reviews the
knowledge,attitudes and skills a
person must acquire
148. Preparing the instructor
Instructor is the key figure in the
entire programme.
He must know both the job tught
and how to teach.
Job must be divided into logical parts.
Must have a lesson plan.
149. Preparing the trainee
Putting the learner at ease.
Stating the importance and ingredients of the
job and its relationship to work flow.
Explaining why he is being taught.
Creating interest and encouraging questions .
Explaining the why of the whole job and
relating it to some job the workeralready
knows.
150. Contd…
Placing the learner as close to his
normal position as possible.
Familiarising him with equipment
,materials,tools and trade terms.
151. Presenting the operations
Explain the course for the job.
Do the job step by step according to
the procedure.
Explain each step that he is
performing.
Have the trainee explain the entire
job.
152. Try out the trainees performance
The trainee is asked to go through
the job several times slowly.
Mistakes are corrected .
Repetitive practice.
153. Follow up
Testing the effectiveness of training.
Feed back on training effectiveness.
154. Selection of training method
Nature of problem area: operational
problem or human resource problem.
Level of trainees in the organisation
hierarchy
Methods ability to hold and arouse
the interest of trainees during the
training period.
155. Contd…
Availability of competent trainers.
Availability of finance.
Availability of time.
156. Executive or management
development
According to Harold Koontz,
Developing a manager is a
progressive process in the same
sense that educating a person is
.Neither education or development
should be thought of as something
that can ever be complicated.
157. Need and importance of executive
development
Shortage of trained managers.
Performance of company depends
upon the quality of managers.
Obsolescence of managerial skills
158. Objectives of executive
development
Steady source of competent people.
Prevents managerial obsolescene.
Prepares the employees for higher
assignments.
Develop a second line of competent
managers.
Promote high morale and good
organisational climate.
163. Career Planning
It is a series of work related
experiences but a sequence of
attitudes and behaviours associated
with work related activities over the
span of a persons life.
Career thus represents an
organised ,well timed and positive
move taken by aperson across time
and space.
164. Aims and Objectives of career
planning
Aims at matching individual potential
for promotion and individual
aspiration.
Organisation has right people with
right skill at right time.
Opens growth opportunities for
employees of organisation.
165. Principle objectives
To secure right person at right time
for the right job.
To provide adequate career avenues
To strengthen the retention
programme of the organisation.
To make a contended team of
employees.
166. Needs for career planning
To attract competent persons and
retain them in the organisation.
To provide suitable promotional
opportunities
Map out careers
Ensure better utilisation of
managerial reserves
To reduce employee dissatisfaction
167. Contd….
To correct employee placement
To improve employee morale and
motivation
To achieve higher productivity.
To provide guidance and encourage
employees.
168. Benefits of career planning
Career planning helps employees
enhance their job.
Helps in overall effectiveness of the
organisation.
Employees is assured of qualified and
comitted employees.
169. Benefits of a career development
systyem
Managers
Increased skill in careers
Greater retention of valued
employees
Better communication between
managers and employees.
More realistic staff development
Prductiver performance appraisal
decision and enhanced reputation.
170. Contd…
Employees
Helpful assistance with career decisions
Enrichment of present job,better
communication
More realistic goal planning
Better feedback
Current information
Greater personal responsibility for career
171. Organisation
Better use of managing employees skills.
Dissemination of information.
Better communication in organisation.
Greater retention of valued employees.
Expanded public image
Increased effectiveness of personnel
system and greater clarification of goals.
172. Process of career Planning
Identfication of individual needs and
aspiration.
Analysing Career opportunities.
Identifying congruence and incongruence
Action plans and periodic review.
173. Performance Appraisal
Performance appraisal includes all
formal procedures used to evaluate
personalities and contributions and
potentials of group members in a
working organisation.
174. Objectives of PAS
Feed back
Compensation decisions
Personal development
Training and development Programme.
Promotion Decision
Improves Supervision.
175. Uses of PAS
Valuable information for personnel
decision.
Provide feedback about level of
achievement.
Suggesting changes
Analyse training and development
Used for selection for higher positions
Base for HRP and positive
environment.
176. Performace appraisal system
Establish job analysis.
Establih standards of performance
Communicating standards of
performace for subordinates.
Measuring actual performance.
Comparing actual with standard.
Initiating corrective action.
177. Purpose of performace appraisal
Administrative
Employee Development
Programme assessment
178. Need of performance appraisal
Creating satisfactory level of
performance
Fixation of salary,allowances
Evaluate the effectiveness of training
and development
Assessing the strengths and
weakness of HR and giving feed back
179. Process of performance appraisal
Job analysis,job description and job
specification.
Establishing standards of
performance.
Communicating performance
standards to employees
180. Contd….
Measuring actual performance
Objective performance
Quality of production
Degree of training needed
Accidents in a given period
Absenteesim
Length of service
181. Subjective performance measures
Ratings by supervisors
Knowledge about overall goals.
Contribution to socio cultural values
of the environment.
192. Problems of performance appraisal
Rating biases
Leniency and strictness error
Halo error
Central tendency error
Personal Prejudice
Consequence of appraisal
Recency effect
194. Ways for Improving performance
appraisal
Choosing the appraisal method
Multiple raters
Training Appraisers
Ongoing feedback
Selective rating
Peer evaluation
Post appraisal interviews
Rewards to accurate appraisers.
195. Job Compensation
Job evaluation is an effort to determine the
relative value of every job in a plant to
dtermine what fair basic wage for such a
job should be.
A process of determining the relative worth
of the various jobs within the
organisation,so differential wages may be
paid to jobs of different worth.
196. Objectives of job evaluation
Payment of high wages and salaries to
persons who hold jobs and positions not
requiring skill,effort and responsibility.
Paying beginners less than they are entitled
Giving raise to people whose performance
does not justify
Deciding rates of pay on the basis of
seniority rather than the ability
Payment of varied wages and salary
Payment of wages and salaries on the basis
of race,sex,religion ….
197. Principles of job evaluation
programmes
Rate the job and not the man.
Elements selected for rating should
be easily explainable.
Elements should be clearly defined
and properly selected
Involving the employees for job
evaluation.
198. Advantages of job evaluation
A logical method for ranking jobs.
A new job the method often facilitates
fitting them to existing wage
structure.
Helps in removing grievances
199. Contd…
Uniformity in wage structure.
Information can be used for
transfer,promotion procedure.
200. Limitations of job evaluation
Rapid technological advancement
Creates doubts and fears.
Job evaluation takes a long time to
install.
Leads to grievances.
201. Contd….
Job evaluation is a highly subjective
process
Traditional job evaluation method is
not suitable to evaluate relative worth
of managers.
202. Methods of job evaluation
Non-analytical or non-quantitative
system
Ranking system
Job classification or grading system
203. Ranking system
In this the job raters rank one job
against another
They do not assign any points or
values
It is done from lowest to the highest.
204. Merits
Simple,quick and inexpensive.
Suitable for small organisations who
can not employ consultants.
System is simple and easy to
understand.
Inexpensive.
205. Demerits
It is a crude process where specific
job requirements are not analysed
separately.
There is absence of any yard stick.
It just produces a job order but does
not indicate how much one job differs
from the other.
206. Job cassification/grading system
A number of pre-determined grades
or classification are established.
It begins with an overall comparison
of all jobs.
Ageneral specification is prepared
indicating the nature of workand
responsibility.
207. Contd….
Each grade is assigned a salary range
with maximum and minimum limits
The jobs are then fitted into these
predetermined classes.
208. Merits of job classification
Best suited for small organisations,it
is easy,inexpensive to administer.
Employs think of jobs in cluster or
group.
Job grading is considered to be an
improvement over ranking.
209. Contd….
Job grading makes pay determination
problems administratively easier to
handle.
210. Demerits of grading system
Difficult to write comprehensive and
unambiguous class description.
Rater can be easily influenced by
title,personality and existing pay rate
of jobs.
Lack of substantiating data.
211. Contd….
Personal evaluation determine into
which class the job should be placed.
Unsuitable for large organisations as
it is a very rigid system
212. Analytical or quantitative system
In case of quantitative system various
factors of a job are considered and
points are alloted according to their
relative worth.
There two types of system,point
rating system and factor comparison
method.
213. Point rating system
This system is based on allocation of
points to each factor of the job and
the sub factors.
The overall point scored decides the
worth or value of a job.
First introduced by western electrical
company
214. Merits of rating system
Predetermined factors act as
guidelines for rating.
Method forces raters to consider
individual factors rather than job as
whole.
Gives numericals as base for job
differentiation.
215. Contd….
Prejudice and human judgement are
minimised.
Assignment of points determine the
worth of the job and also gives a
comparison of how much one job is
worth than the other.
216. Demerits of point rating system
Very difficult to give a fair evaluation
of the relative worth of each job in
the organisation.
The listing may omit some elements
that are important in certain jobs.
Workers find it difficult to fully
comprehend the point rating system
217. Contd…..
Time consuming
There is considerable working.
System is inflexible at the same point
systems canot generally be sued for
production and office jobs.
218. Factor comparison system
This was developed by Eugine J Benge at
the Philadelphia Rapid transit company in
1926
Determined the relative importance of
factors and their significance.
E.g,factor skills,mental skills,responsibility
which is then converted to money.
219. Merits
Systematic,quantified and detailed.
Can be used to evaluate unlike jobs such as
clerical,supervisory.
Job by job comparison.
Fairly easy system to explain to employees.
220. Demerits
Very expensive and complicated
Difficult to operate.
Money rates ,tends to influence rater.
221. Essentials for success of job
evaluation
Managements objective must be
clear.
All relevant internal and external
factors must be considered.
Should have approval by top
management.
222. Contd…
Must be accepted by trade unions.
There must be a centralised
coordination
Conduct of wage surveys to provide
proper information.
223. Contd…
Predetermination of factors
Important factors of job content.
Job evaluation issues
Category up to which it would be
covered.
224. Contd…
Who would evaluate the job?
How would employees be consulted.
Is the atmosphere proper for
launching the programme.
225. Uses of job evaluation
Effective means of determining
internal pay relationship
Used as a tool for implementing
companies basic pay.
Foundation for insentives and bonus
plans.
226. Contd…
Moves for promotion or demotion can
be determined
Realistic foundation for gearing
companies pay scale
Assists managers in meeting day to
day problems,reduction in employees
grieveances.
227. Uses of Job evaluation
Job evaluation is most effective
means of determining internal pay
relation for most type of jobs.
Can be used as a tool for making
companies basic pay policies.
Forms a reasonable basis for
personnel moves
228. Contd…
Useful control over wage and salary.
Forms a realistic foundation.
Assists managers in meeting day to
day problems.
229. Wage and salary administration.
Methods of Wage Payment
Time wage system
Piece wage system
230. Time wage system
Based on the amount of time spend
on work.
Wages do not depend on the
performance of the employees.
231. Features of time wage
It is more widely used.
It is simple to compute the earnings.
Provides guaranteed and secured
income.
Removing fear of irregular income.
It facilitates pay roll function.
232. Advantages of time wage system
Sense of security of income.
Conducive climate is provided for
better labour management.
Disputes minimised.
233. Disadvantage of time wage system
Time wage system offers no
incentives.
No encouragement for better
performance.
Ambitious workers receive no
monetary reward.
Demands intensive and strict
supervision.
234. Piece wage system
The amount is paid based on the
work performed or productivity.
Earning of the employees are directly
proportional to productivity.
235. Features of Piece wage system
Can offer direct connect between
effort and reward.
Ensures productivity.
Wage cost determination is easy.
236. Advantages of piece wage system
Direct connect between effort and reward.
Simple and easy to understand
Worker interested in higher efficiency
Cost accounting and control by
management is made easy.
237. Disadvantages of piece wage
system
Danger of overwork
Requires a lot of supervision to
maintain quality and standard of
work.
It is an ineffective method ,if quality
is given preference.
238. Incentive wage plans.
A system of payment which would
maintain both quality and quantity is
called Incentive wage plan.
A judicious system which includes
both basic wage system and a blend
of time and piece wage system.
239. Essentials of a sound wage
incentive plan.
Measurement of the amount of work
done
Establishment of standard output on
the basis of which the incentive have
to be worked
Setting up a suitable rate of
incentive.
240. Types of incentive plans
Halsey Plan
Rowan plan
Taylor ‘s differential piece wage plan
The Emerson efficiency system
The Gantt system
The bedeaux point premium plan
241. Halsey Plan
Plan originated by F.A.Halsey
Was started to bring in efficiency
amongst workers.
Guaranteed wages according to time
basis.
Standard time calculated was based
on time and motion studies.
242. Contd…
Workers who perform the job in less
than standard time is paid bonus.
Those who take the whole time ,not
punished but paid regular time wage
system.
243. Contd….
Earnings are based on the 33% value
of time saved.
Standard time set on previous
experience.
50% of time saved when the
standards are scientifically set.
244. Rowan Plan
Wages ,according to time basis are
guaranteed.
A standard time is determined before
and a bonus is paid according to
time.
246. Taylor’s differential piece wage plan
There is no guarantee of wages.
The standard of output is fixed per
day e.g. 40
If the per unit charge is 30 paisa and
25 paisa
If the output reaches 40 units then
they get 30 paisa for every unit.
If the output is 39 units they get 30
paisa for every unit.
247. Emerson efficiency system
In this the daily wage is gauranteed.
Workers given a particular time to
complete.
If they take lesser time then bonus
granted .
248. Gantt System
Similar to Emerson efficiency system
100% Efficiency essential
Foreman also attains bonus if the
worker under him attains the required
standards.
249. Bedeaux point premium plan
The chief novelty of this plan is that
the value of time saved is divided
between workers and foreman
¾ to workers.
¼ to foreman.
250. Variable Compensation individual
and group
Incentive compensation is also called as
payment by result.
A means of sharing financial profit with
workers so that there is better out-put.
Incentive system helps to reduce the gap
between workers and management.
251. Broad categories of incentives
3 incentive schemes classified by
Dunn and Rachel.
Simple incentive plan
Sharing incentive wage plan
Group incentive plan
252. Simple Incentive Plan
The simplest of all wage incentives
straight piece rate system.
One of the oldest method.
Straight calculation done on the basis
of the price given per unit.
E.g-Rs 2 ,if 10 pieces then Rs 20.
253. Sharing incentive wage plan
Modification of Taylors wage plans.
The workers get paid on the piece
rate system
Those who produce more in a given
time is paid more per unit charges.
254. Group incentive plan
Applied where there are more
number workers.
There is join achievements and
results
Inculcate team spirit and a sense of
mutual cooperation among workers.
255. Requisites for the success of an
incentive plan
Believe that money is a strong
motivator
Direct effort between effort and
reward
Worker is immediately rewarded for
effort.
256. Contd…
Relation between management and
workers
Should reward employees in direct
manner
Plan should be easily calculated
257. Contd….
Immediate rewards for performance
Must be within the financial budget
Should be gauranted and on reasonable
standards.
Reward needs to be valuable to employee.
258. Contd…
Plan must encourage employees to
support each other
Taken to consideration health and
welfare of the employees.
Clearly identifiable
Guaranteed base rate.
259. Fringe Benefits
Fringe benefits are additional benefits
and services that are provided to
employees in addition to their salary.
They are given to the employees
based on their performance.
260. Contd…
Advantage of fringe benefits are that
they are not included under taxable
income.
Fringe benefits such as health,
insurance can be attained at a lower
expenditure.
Companies usually use these benefits
to retain the employees.
262. Principles of fringe benefits
Benefits and services must be provided to
the employees for protection and
encourage their well being.
The benefits should fulfill real requirements
of employees.
Benefits should and services should be cost
effective.
263. Contd…
Fringe benefits should be monitored
with proper planning.
While determining the fringe benefits
the fringe benefits communicated by
the union must be considered.
The employees of a company must be
well informed.
264. Examples of monetary benefit
Legally required payments: Old age
,survivors and health insurance,
workers compensation, unemployment
compensation.
Dependent and long term benefits:
Pension plan, group life insurance,
group health insurance, sick leave
265. Contd…
Payments for time not
worked:Vacations,holidays,voting pay
allowances.
Other benefits: Travel allowances,
company car
266. Types of fringe benefits
Monetary
Non –Monetary
Examples of non-monetary:
Knick-knacks: Company watches, desk
accessories-shirts…
Treats: Free lunch, coffee breaks,
picnics….
267. Important fringe benefits
Payment for time not worked
Insurance benefits
Compensation benefits
Pension plans.
268. Monitoring fringe benefits
Setting up benefit objectives
Assessing environmental factors
Determining competitiveness
Conveying benefit information
Controlling benefit costs and
evaluation.
269. Setting up benefit objectives
Encouraging external competitiveness
Enhancing cost effectiveness
Fulfilling the needs and preferences of
each employee
Adhering to the legal compulsion.
270. Assessing Environmental factors
Government policies
Regulations
Union and economic factors
Internal factor includes: Financial
condition.
273. Controlling benefit costs and
evaluation
Has the employees earnings
enhanced.
Has the earning of the employees
been able to attract new employees.
Has the confidence risen.
274. Concept of variable compensation
plan
The variable compensation reffers to
the incentive schemes given to
workers on the basis of productivity
Individual incentives
Group incentives.
275. Incentive schemes
Straight piece work method
Standard hour method
In both methods earnings vary in the
same proportion as output.
276. Earnings vary less proportionately
than output
Halsey plan
Rowan plan
Barth scheme
Bedaux plan
All the plans work on time saved.
278. Objectives of national wage
To eliminate malpractices.
To set minimum wages for workers.
To rationalize inter occupational,inter-
industrial,inter-regional wage
differentials in such a way that
disparities are reduced in a phased
manner.
279. Contd…
To compensate workers for the raise
in the cost of living in such a manner
that in the process the ratio of
disparity between the highest paid
and the lowest paid worker is
reduced.
Promote collective bargaining and
trade unions.
280. Contd…
Fruits of economic development.
Avoid a policy of high wages.
Efficient allocation and utilization of
resources.
282. Minimum wages
In order to prescribe the minimum
rate of wages, the min wages act
1948 was passed.
The act empowers the govt to fix
minimum rates of wages in respect of
certain sweated and unorganized
employments.
283. Compulsory conciliation and
arbitration
With the object of providing for
conciliation and arbitration, the
industrial disputes act 1947 was
passed.
It provides for the appointment of
industrial tribunals for settlement of
industrial disputes.
284. Wage boards
A wage board is a tripartite body with
representatives of management and
workers.
It is presided over by a government
nominated chairman who can act as
an umpire in the event of
disagreement among the parties.
285. Wage policy in a developing
economy
A suitable wage policy for a
developing economy must ensure
economic growth with stability.
If the wage level is high it will
hamper the industrial growth.
If the wage level is low it will
adversely affect the workers.
286. Two main considerations in wage
fixation
Adjust wages to cost of living need
based wages)
To link wages with productivity.
287. Need based wages
The wage should enable the worker to
provide for himself and for his family
not merely the bare necessities of food,
clothing and shelter but also include
education for children, protection
against ill-health, requirements of
essential social needs and a measure of
insurance against misfortunes and old
age.
288. Labour conference 1957
The standard working family should
consist of three consumptions units.
The minimum requirements of food
should be calculated on the basis of
net intake of calories as
recommended by Dr. Aykroyd
289. Contd….
The clothing requirements should be
taken as 18 yards per head per
annum.
As for housing the rent corresponding
to minimum provided under the
government industrial housing
scheme.
Fuel ,lighting and other miscellaneous
constitute 20 percent.
290. Minimum wage
National commission on labour
describes
Wage which provides a worker with
physical subsistence.
291. Fair wage
The productivity of labour
Prevailing rate of wages.
Level of national income and its
distribution
Place of industry in the economy.
The degree of unionization of labour.
292. Promotion
Promotion is a term which covers a
change and calls for greater
responsibilities and usually involves
higher pay and better terms and
conditions of service and therefore a
higher status or rank.
293. Types of promotion
Limited promotion
Dry promotion
Multiple promotion
Up and out promotion
294. Basis of promotion
Promotion based on seniority
Promotion based on merit
Temporary promotion
295. Promotion policy
State formally the organizations broad
objective
Ratio of internal promotion Vs external
recruitment
Decide the basis of promotion
performance appraisal)
296. Contd…
Communicate promotion policy
Lack of promotion avenues.
Determination of seniority
Relation of disciplinary action to
promotion.
297. Advantages of promotion policy
Works as an incentive .
Develops employee loyalty.
Increases job satisfaction
Increases work effectiveness.
298. Contd…
Attracts effective employees.
Increases employee interest in
training and development.
Promotion makes employees believe
that their turn would come.
299. Demotion
It is a process where the employees
are send to a lower position.
It could be with less authority and
responsibility with lesser payment.
300. Causes of demotion
As a disciplinary weapon.
Due to personnel reasons such as ill
health
Curtailing of activities.
Can not meet standards.
301. Conditions for demotion
Violation of rules
Proper and detailed investigation
Violations occur
Provision for review and infrequent.
302. Transfer
A change in the assignment without
the change in status is called
transfer.
Yoder defines it as a lateral shift
without change in position .
303. Types of transfer
General transfer
Production transfer
Replacement transfer
Shift transfer
Remedial transfer
Versatility transfer
Punishment or penal transfer.
305. Transfer policy
Clarify circumstances under which
transfer would be used.
Must locate the authority who initiate
transfer
The policy should maintain if transfer
can happen within department, within
sub units….
306. Contd..
Describe the type of transfer.
If seniority credit would be
maintained and so on……..
314. Contd…
Absence of sufficient welfare activities
Managerial attitude
Over identification with family affairs
Desire for money status and power.
315. Measures to control absenteesim.
Notification.
Granting of leave
Programmes should be strengthened
Offering bonus…
317. Accession
Labour turn over= (No of accession
during a period+ Average no of
workers during the period) *100
Separation= No of separations during
the period * 100
Average number of workers during the period
319. Measures to reduce labour turn
over
Increase pay level
Introduce rewards
Career opportunities
Work shop etc….
320. QUALITY OF WORK LIFE
Quality of work life basically talks
about the sociopsychological needs of
the employees, requirements of
technology ,structure where the
employees have a level of satisfaction
thus increasing their rate of
performance
321. Factors for QWL
Compensation
Safe working conditions
Personal rights
Balance of family and work
322. Effects of QWL
Job involvement
Employee satisfaction
Great sense of competencies.
323. Scope of QWL
Fair and reasonable pay
Safer environment
Benefit for employees
Job security, job satisfaction
324. Approaches to Qwl
Flexibility of work schedules
Freedom to form groups
Opportunity for growth
Participation of employees
Implementing suggestion system…
325. Historical background of QC
It was started in Japan in 1960.
QCs have spread all over the world.
QCs became popular in all the industry.
QC members identify the problem and bring
in improved condition.
326. Objectives of quality circles
Improvement and development of
organization.
Develop respect of human relation
and induce job satisfaction.
Deploy human capabilities
To satisfy the workers psychology.
To improve quality of product
services and reduce cost.
327. Advantages of quality circles
Generation of creative ideas
Improve in productivity
Better team work
Higher motivation
328. Limitations of QC
Fitting of QCs in existing culture.
Top management should take proper
care and interest.
329. Conditions essential to make QC
effective
Top management support
Education and training of managers.
Timely implementation
Sharing gains in productivity
330. Contd…
Facilities for meetings and discussions
Regular monitoring of working of
quality circles.
331. Morale
Morale is the degree of enthusiasm
and willingness with which individual
workers of a group set out to
perform.
332. Effects of low morale
High rate of absenteeism
Tardiness
High labour turnover.
Strikes and sabotage
Lack of pride in work
Wastage and spoilage
333. Measures to build high morale
Leadership
Sound wage
Favorable work environment.
Higher order need satisfaction.
Other measures
334. Factors affecting morale
The organization.
Job enrichment
Leadership
Work environment
Nature of work
Attitude of co-workers.
335. Job satisfaction
Job satisfaction : The combination of
physiological and environmental
circumstances that cause a person to
truthfully say I am satisfied with my
job.
336. Determination of job satisfaction
Job content
Occupational level.
Pay and promotion
Work group
Supervision
338. Consequences of job satisfaction
Affects the physical health
Lack of job satisfaction creates an
unwillingness to work
Job satisfaction reduces employee
turnover.
339. Social Security
Social security is complete protection
of every citizen.
According to ILO1952 following are
the nine components.
340. Components of social security
Medical care
Sickness benefit
Unemployment benefits.
Old age benefit
Employment injury benefit
Family benefit
Maternity benefit
Invalidity benefit & survivor benefit.
342. Draw backs of social security
schemes in India
All needed to be integrated in one
act.
Very little contribution is made by the
state and the employer.
Social security benefits only industry
workers.
343. Laws and acts
The employee state insurance act
1948
The employees provident fund act
1952
The workmen’s compensation act ,
1923
345. Employees state insurance act 1948
ESIS Employee state insurance
scheme.
Medical facilities to employees who
have salary less than 6,500 Rs.
The treatment should also to be
provided to retired and spouse at a
cost of Rs.10
346. Contd…
The entire functioning is monitored by
ESIC-Employees state insurance
scheme. It covers
Sickness benefits
Medical benefit
Maternity benefit
Disablement benefit
348. The employees provident fund act
1952
The employees provident fund act
was launched in1952
The scheme is applicable to people
getting a salary of Rs5000.
According to this employees are
supposed to contribute
349. Coverage of employees provident
fund act 1952
Employees pension scheme 1995
Death Relief fund
Gratuity scheme
Employees deposit linked scheme.
Group life insurance scheme
350. Workmen's compensation act 1923
This act provides social security to
the employees of a company
The employee has to be compensated
if they meet with an accident during
course of employment.
Overtime pay, benefits of food,
clothing etc…
351. Contd…
Min amt to be paid to an employee
for permanent disabled or death is
Rs60000 and Rs 50000
Min payment for permanent
disablement is 2.28 lac and Rs 2.74
lac.
352. Maternity Benefit act 1961
Maternity leave
6 weeks before due date
Free medical treatment
Allow the female ladies to feed her
baby.
353. The Industrial disputes act 1947
25A TO 25S: Related to employee
termination
25C to 25 E :They are not applicable for
organization with employees less than 50
employees.
Sec 25 C ;It states that if an employee has
worked for a year or more than a year the
company needs to give 50% of the
employees basic salary.
354. Health and safety
Physical health
Mental health
Noise control
Work stress
