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Human resource management complete note

kabul university
kabul university
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Human resource management complete note for graduate as well for postgraduate students

Human resource management complete note

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HRM
• The human resources of an organization
consist of all people who perform its activities.
Human resource management (HRM)
is concerned with the personnel policies and
managerial practices and systems that
influence the workforce. In broader terms, all
decisions that affect the workforce of the
organization concern the HRM function.
NIAZ SAHIL
,
• According to Invancevich and Glueck, “HRM is
concerned with the most effective use of people
to achieve organizational and individual goals”.
• Human Resource Management outlines the
importance of HRM and its different functions in
an organization. Itexamines the various HR
processes that are concerned with attracting,
managing, motivating and developing employees
for the benefit of the organization.
NIAZ SAHIL
GOAL of HRM
• To meet the needs of the business and
management (rather than just serve the
interests of employees);
• - To link human resource strategies / policies
to the business goals and objectives;
• - To find ways for human resources to "add
value" to a business;
• - To help a business gain the commitment of
employees to its values, goals and objectives
NIAZ SAHIL
Nature of HRM
• Broader function : Human Resource Management is a
comprehensive function because it is about managing
people in the organization. It covers all types of people
in the organization from workers till the top level
management.
• People oriented : Human resource is the core of all the
processes of human resource management. So HRM is
the process which brings people and organizations
together so that their goals can be achieved.
• Action oriented : Human resource management
believes in taking actions in order to achieve individual
and organizational goals rather than just keeping
records and procedures.
NIAZ SAHIL
Nature of HRM
• Development oriented: Development of employees is
an essential function of human resource management in
order to get maximum satisfaction from their work so
that they give their best to the organization.
• Integrating Mechanism : HRM tries to build
and maintain cordial relations between people working
at various levels in the organization. Future oriented
: HRM is very important activity which helps
organization to achieve its objectives in future by
providing well motivated and competent employees.
• Universal function
• HRM can be applied in business as well as other
organizations organisations such as schools, colleges,
hospital, religious organisations, etc.
NIAZ SAHIL
As a Process : HRM is a process of four
functions & FEATURES
Acquisition of human resources : This function includes
Human Resource Planning, Recruitment, Selection,
Placement and Induction of staff.
• Development of human resources : This function includes
Training and Development and Career development. The
knowledge, skills, attitudes and social behavious of the
staff are developed.
• Motivation of human resources : This function includes
giving recognition and rewards to the staff. It also includes
Performance Appraisal and handling the problems of staff
•
Maintenance of human resources : This function includes
providing the best working conditions for employees. It
also looks after the health and safety of the staff.
NIAZ SAHIL
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Human resource management complete note

  • 1. HRM • The human resources of an organization consist of all people who perform its activities. Human resource management (HRM) is concerned with the personnel policies and managerial practices and systems that influence the workforce. In broader terms, all decisions that affect the workforce of the organization concern the HRM function. NIAZ SAHIL
  • 2. , • According to Invancevich and Glueck, “HRM is concerned with the most effective use of people to achieve organizational and individual goals”. • Human Resource Management outlines the importance of HRM and its different functions in an organization. Itexamines the various HR processes that are concerned with attracting, managing, motivating and developing employees for the benefit of the organization. NIAZ SAHIL
  • 3. GOAL of HRM • To meet the needs of the business and management (rather than just serve the interests of employees); • - To link human resource strategies / policies to the business goals and objectives; • - To find ways for human resources to "add value" to a business; • - To help a business gain the commitment of employees to its values, goals and objectives NIAZ SAHIL
  • 4. Nature of HRM • Broader function : Human Resource Management is a comprehensive function because it is about managing people in the organization. It covers all types of people in the organization from workers till the top level management. • People oriented : Human resource is the core of all the processes of human resource management. So HRM is the process which brings people and organizations together so that their goals can be achieved. • Action oriented : Human resource management believes in taking actions in order to achieve individual and organizational goals rather than just keeping records and procedures. NIAZ SAHIL
  • 5. Nature of HRM • Development oriented: Development of employees is an essential function of human resource management in order to get maximum satisfaction from their work so that they give their best to the organization. • Integrating Mechanism : HRM tries to build and maintain cordial relations between people working at various levels in the organization. Future oriented : HRM is very important activity which helps organization to achieve its objectives in future by providing well motivated and competent employees. • Universal function • HRM can be applied in business as well as other organizations organisations such as schools, colleges, hospital, religious organisations, etc. NIAZ SAHIL
  • 6. As a Process : HRM is a process of four functions & FEATURES Acquisition of human resources : This function includes Human Resource Planning, Recruitment, Selection, Placement and Induction of staff. • Development of human resources : This function includes Training and Development and Career development. The knowledge, skills, attitudes and social behavious of the staff are developed. • Motivation of human resources : This function includes giving recognition and rewards to the staff. It also includes Performance Appraisal and handling the problems of staff • Maintenance of human resources : This function includes providing the best working conditions for employees. It also looks after the health and safety of the staff. NIAZ SAHIL
  • 7. Scope of the HRM • The scope of HRM is very immense. HRM plays a vital role of a worker from the time he enters into any organization till he leaves. HRM activities include – • 1. Procurement : It the placement of right kind of personal to the right post. It includes, determination of manpower requirements. Job analysis, Nature and scope of requirement, employee selection and placement of employment. • 2. Training and Development : Training and Development is a must in any organization. It prepares the worker to the actual situations in the orgnisation. NIAZ SAHIL
  • 8. Scope of the HRM • 3. Job Analysis and Job Description : Job analysis and job description involves the studies of job requirements of the enterprise and assignment of well defined functions to jobs so that qualified employees may be hired. It also forms the basis of wage determination. • 4.Remuneration : Providing proper remuneration to the employees for the job done through job analysis and job description. It includes determining wage rates, incentives, wage payment, REWARDS and benefits and performance appraisal. • 5. Welfare and Industrial Relations : It includes health and safety program, sanitary facilities, recreational facilities etc. NIAZ SAHIL
  • 9. ROLE OF HRM • The Human Resource Department deals with management of people within the organisation. There are a number of responsibilities that come with this title. • First of all, the Department is responsible for hiring members of staff; this will involve attracting employees, keeping them in their positions and ensuring that they perform to expectation. • Besides, the Human Resource Department also clarifies and sets day to day goals for the organisation. • It is responsible for organisation of people in the entire Company and plans for future ventures and objectives involving people in the Company. NIAZ SAHIL
  • 10. roles: • Under the HR department’s remit are the following roles: • The process of recruiting suitable candidates for the organisation • Identifying and meeting the training needs of existing staff • Ensuring employee welfare and employee relations are positive • Ensure the working environment is safe for employees • Raising awareness of current workplace legislation NIAZ SAHIL
  • 11. The Human Resources Department also covers five key roles. • Executive role – in this role the HR department are viewed as the specialists in the areas that encompass Human Resources or people management. • Audit role – in this capacity the HR department will check other departments and the organisation as a whole to ensure all HR policies such as Health & Safety, Training, Staff Appraisal etc are being carried out in accordance with the company’s HR policy. • Facilitator role – in this role, the HR department help or facilitate other departments to achieve the goals or standards as laid out in the HR policies of the organisation. This will involve training being delivered for issues that arise in the areas relating to people management. • Consultancy role – the HR department will advise managers on how to tackle specific managing people issues professionally. • Service role – in this capacity the HR department is an information provider to raise awareness and inform departments and functional areas on changes in policy NIAZ SAHIL
  • 12. Function of HRM • The main function of human resource management is classified into two types: (a) Managerial Function; (b) Operative Function. • Operative Function • Procurement – It involves attracting and employing individuals with suitable knowledge, skills, • experience, and aptitude necessary to perform various jobs. • • Development – It aims to train and develop employees to improve and update their knowledge and skills in order to help them perform better. • • Compensation – It involves rewarding employees monetarily and through fringe benefits for their contributions to the organization. • • Integration – It deals with employees as a social group; it contributes to the organization and enhances group interaction and communication. • • Maintenance – It deals with maintaining employee safety and creating a sense of security among the employees. NIAZ SAHIL
  • 14. Recruitment and selection • Recruitment and selection is the process of identifying the need for a job, defining the requirements of the position and the job holder, advertising the position and choosing the most appropriate person for the job. Retention means ensuring that once the best person has been recruited, they stay with the business and are not “poached” by rival companies. • Undertaking this process is one of the main objectives of management. Indeed, the success of any business depends to a large extent on the quality of its staff. Recruiting employees with the correct skills can add value to a business and recruiting workers at a wage or salary that the business can afford, will reduce costs. • Employees should therefore be carefully selected, managed and retained, just like any other resource NIAZ SAHIL
  • 15. Employees should therefore be carefully selected, managed and retained, just like any other resource • . NIAZ SAHIL
  • 16. Sources Of Recruitment • Every organisation has the option of choosing the candidates for its recruitment processes from two kinds of sources: internal and external sources. The sources within the organisation itself (like transfer of employees from one department to other, promotions) to fill a position are known as the internal sources of recruitment. Recruitment candidates from all the other sources (like outsourcing agencies etc.) are known as the external sources of recruitment. NIAZ SAHIL
  • 17. Recruitment , selection and induction • Recruitment is the process of attracting the most suitable people for the position, selection is the process of choosing the best person for the position, and induction is introducing the person to the position • This module describes a series of well-tested steps to help you identify the right person, to ensure he or she will fit well with your farm business, and to meet the various legal obligations of an employer. • If recruitment is done well, the business benefits from happier and more productive people, reduced staff turnover, good working relationships and ultimately a more profitable farm. NIAZ SAHIL
  • 18. Difference Between Recruitment And Selection • Both recruitment and selection are the two phases of the employment process. The differences between the two are: 1. Recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organisation WHEREAS selection involves the series of steps by which the candidates are screened for choosing the most suitable persons for vacant posts. 2. The basic purpose of recruitments is to create a talent pool of candidates to enable the selection of best candidates for the organisation, by attracting more and more employees to apply in the organisation WHEREAS the basic purpose of selection process is to choose the right candidate to fill the various positions in the organization. 3. Recruitment is a positive process i.e. encouraging more and more employees to apply WHEREAS selection is a negative process as it involves rejection of the unsuitable candidates. 4. Recruitment is concerned with tapping the sources of human resources WHEREAS selection is concerned with selecting the most suitable candidate through various interviews and tests. 5. There is no contract of recruitment established in recruitment WHEREAS selection results in a contract of service between the employer and the selected employee. NIAZ SAHIL
  • 19. objectives of Recruitment and selection • Recruitment and selection objectives include a variety of components related to finding, hiring and retaining qualified employees. Clear definitions of the job qualifications allow easier identification of potential candidates. Recruitment consists of attracting capable individuals using methods such as outsourcing and the internet. Selection objectives consist of evaluation techniques such as interviews, background checks and competence tests. NIAZ SAHIL
  • 20. the Employee selection Process • Preliminary Interviews- It is used to eliminate those candidates who do not meet the minimum eligiblity criteria laid down by the organization. The skills, academic and family background, competencies and interests of the candidate are examined during preliminary interview • . • Application blanks- The candidates who clear the preliminary interview are required to fill application blank. It contains data record of the candidates such as details about age, qualifications, reason for leaving previous job, experience, etc NIAZ SAHIL
  • 21. the Employee selection Process • Employment Interviews- It is a one to one interaction between the interviewer and the potential candidate. It is used to find whether the candidate is best suited for the required job or not. • Medical examination- Medical tests are conducted to ensure physical fitness of the potential employee. It will decrease chances of employee absenteeism. • Appointment Letter- A reference check is made about the candidate selected and then finally he is appointed by giving a formal appointment letter. NIAZ SAHIL
  • 22. Manpower planning • Manpower planning is the process of reviewing an organization’s employee, or manpower, needs and then selecting the best people for certain jobs. The end goal of successful manpower planning is a smoothly running operation, and the long-term result of manpower planning is a company able to achieve its goals, because its employees fill the right places within the organization. Manpower planning typically falls under the human resources department and it's not something that occurs quickly. Instead, it is a process thatrequires careful analysis and consideration to achieve the desired outcome. NIAZ SAHIL
  • 23. Importance of Manpower Planning Key to managerial functions- The four managerial functions, i.e., planning, organizing, directing and controlling are based upon the manpower. Human resources help in the implementation of all these managerial activities. Therefore, staffing becomes a key to all managerial functions. • Efficient utilization- Efficient management of personnels becomes an important function in the industrialization world of today. Seting of large scale enterprises require management of large scale manpower. It can be effectively done through staffing function. • Motivation- Staffing function not only includes putting right men on right job, but it also comprises of motivational programmes, i.e., incentive plans to be framed for further participation and employment of employees in a concern. Therefore, all types of incentive plans becomes an integral part of staffing function. NIAZ SAHIL
  • 24. Steps in Manpower Planning NIAZ SAHIL Steps in Manpower Planning 1 Analysing the current manpower inventory- Before a manager makes forecast of future manpower, the current manpower status has to be analysed. For this the following things have to be noted- Type of organization Number of departments Number and quantity of such departments Employees in these work units Once these factors are registered by a manager, he goes for the future forecasting 2 Making future manpower forecasts- Once the factors affecting the future manpower forecasts are known, planning can be done for the future manpower requirements in several work units
  • 25. Steps in Manpower Planning • Developing employment programmes- Once the current inventory is compared with future forecasts, the employment programmes can be framed and developed accordingly, which will include recruitment, selection procedures and placement plans. • Design training programmes- These will be based upon extent of diversification, expansion plans, development programmes,etc. Training programmes depend upon the extent of improvement in technology and advancement to take place. It is also done to improve upon the skills, capabilities, knowledge of the workers. NIAZ SAHIL
  • 26. Induction • After a new employee is hired into an organization, it is necessary he or she be familiar to organization's philosophies, goals and objectives, policies, procedures, rules and regulations and practices. This orientation is called employee induction • Induction can be defined as The HRM function that systematically and formally introduces new employees to the organization, the jobs, the work groups to which they will belong and the work environment where they will work.NIAZ SAHIL
  • 27. Induction is designed to achieve following objectives:- • Help the new employee overcome shyness and nervousness in meeting new people in a new environment. • Give the new employee the necessary information such as the location of a cafe and other locations. • Help the new employee build confidence in the organization. • Help in reducing labor turnover and absenteeism. • Reduce confusion and develops healthy relations in the organization. • Ensure that the new comer does not form false impressions and develop a negative attitude towards the organization. • Develop among the new comers a sense of belonging and loyalty to the organization NIAZ SAHIL
  • 28. An induction programme consists primarily of three steps: • General orientation by the staff: It gives necessary general information about the history and the operations of the firm. The purpose is to help an employee to build up some pride and interest in the organization. • Specific orientation by the job supervisor: The employee is shown the department and his place of work; the location of facilities and is told about the organization’s specific practices and customs. The purpose is to enable the employee to adjust with his work and environment. • Follow-up orientation by either the personnel department or the supervisor: This is conducted within one week to six months of the initial induction and by a foreman or a specialist. The purpose is to find out whether the employee is reasonably well satisfied with him. Through personal talks, guidance and counselling efforts are made to remove the difficulties experienced by the newcomeNIAZ SAHIL
  • 30. Performance appraisal • "Performance appraisal is the systematic description of an employee's job relevant strengths and weaknesses.“ • In a Performance appraisal, the employee's merits such as initiative, regularity, loyalty, personality, etc., are compared with others. Then each employee is rated or ranked. That is, he is given a particular rank such as First Rank, Second Rank, etc. So if an employee has the best attendance then he is given First Rank in attendance and so on. NIAZ SAHIL
  • 31. Terms in Performance Appraisal Terms involved in performance appraisal are:- • Rater : The person who evaluates the employees is called the Rater or Appraiser. • Ratee : The employee who is rated is called the Ratee. • Rating : The process of performance appraisal is called Rating NIAZ SAHIL
  • 32. Objectives Of Performance appraisal: • To review the performance of the employees over a given period of time. • To judge the gap between the actual and the desired performance. • To help the management in exercising organizational control. • Helps to strengthen the relationship and communication between superior – subordinates and management – employees. • To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. • To provide feedback to the employees regarding their past performance. • Provide information to assist in the other personal decisions in the organization. • Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. NIAZ SAHIL
  • 33. Limitations of Performance Appraisal • 1. Halo Effect :The rater may base the full appraisal on the basis or one positive quality which was found out earlier • 2. Problem of Leniency or Strictness :Many raters are too lenient (not strict) in their ratings. High scores may be given to all employees, even if they have no merit. Also a reverse situation may take place, where all employees are rated very strictly and very low scores are given. • 3. Central Tendency • Sometimes a rater gives only middle range scores to all individuals. Extremely high or low scores are avoided. This is called Central Tendency. NIAZ SAHIL
  • 34. Limitations of Performance Appraisal • 8. Horn Effect: Sometimes the raters may evaluate on the basis of one negative quality. This results in overall lower rating of the particular employee. For e.g. "He does not shave regularly. Therefore, he must be lazy at work." • 10. Latest Behavior Effect: The rating is also influenced by the most recent behaviour. The rater may ignore an average behaviour during the full appraisal period • 7. Evaluate performance not person” The rater should evaluate the performance, i.e. output, new ideas, extraordinary efforts, etc. and not the person. In reality, the person is evaluated and not his performance. It should be noted that failure is an event and a not a person. NIAZ SAHIL
  • 35. Performance Appraisal Methods : • 1. Critical incident method The critical incidents for performance appraisal is a method in which the manager writes down positive and negative performance behavior of employees throughout the performance period 2. Weighted checklist This method describe a performance appraisal method where rater familiar with the jobs being evaluated prepared a large list of descriptive statements about effective and ineffective behavior on jobs 3. Paired comparison analysis Paired comparison analysis is a good way of weighing up the relative importance of options. A range of plausible options is listed. Each option is compared against each of the other options. The results are tallied and the option with the highest score is the preferred option. NIAZ SAHIL
  • 36. Performance Appraisal Methods : • 4. Graphic rating scales The Rating Scale is a form on which the manager simply checks off the employee’s level of performance. This is the oldest and most widely method used for performance appraisal. 5. Essay Evaluation This method asked managers / supervisors to describe strengths and weaknesses of an employee’s behavior. Essay evaluation is a non- quantitative technique. This method usually use with the graphic rating scale method. 6. Behaviorally anchored rating scales This method used to describe a performance rating that focused on specific behaviors or sets as indicators of effective or ineffective performance. It is a combination of the rating scale and critical incident techniques of employee performance evaluation. NIAZ SAHIL
  • 37. Performance Appraisal Methods : • 7. Performance ranking method Ranking is a performance appraisal method that is used to evaluate employee performance from best to worst. Manager will compare an employee to another employee, rather than comparing each one to a standard measurement. 8. Management By Objectives (MBO) MBO is a process in which managers / employees set objectives for the employee, periodically evaluate the performance, and reward according to the result. MBO focuses attention on what must be accomplished (goals) rather than how it is to be accomplished (methods) 9. 360 degree performance appraisal 360 Degree Feedback is a system or process in which employees receive confidential, anonymous feedback from the people who work around them. NIAZ SAHIL
  • 38. Performance Appraisal Methods : • 10.Forced ranking (forced distribution) Forced ranking is a method of performance appraisal to rank employee but in order of forced distribution. For example, the distribution requested with 10 or 20 percent in the top category, 70 or 80 percent in the middle, and 10 percent in the bottom. 11. Behavioral Observation Scales Behavioral Observation Scales is frequency rating of critical incidents that worker has performed. Most of the companies or organizations' follow 360 degree performance appraisal. NIAZ SAHIL
  • 39. Ranking • Employee ranking is an attempt to evaluate employees relative to each other, by using some criteria to identify the better performers versus the less better performance. The result, at least in theory, is a list of employees in some sort of ranked order. • Rating - This involves rating an employee on a scale which ranges from ‘poor’ to ‘excellent’ performance. The employee is assessed on this scale based on their performance or traits which are considered relevant to the job. NIAZ SAHIL
  • 40. 360 Degree Appraisal • An appraisal made by top management, immediate superior, peers, subordinates, self and customers is called 360 Degree Appraisal. Here, the performance of the employee or manager is evaluated by six parties, including himself. So, he gets a feedback of his performance from everyone around him. This method is very reliable because evaluation is done by many different parties. These parties are in the best position to evaluate the employee or manager because they are continuously interacting and working with him. This method is mostly used to evaluate the performance of the employees. However, it is also used to evaluate other qualities such as talents, behaviour, values, ethical standards, tempers, loyalty, etc NIAZ SAHIL
  • 41. • 360 degree appraisal was first developed by General Electric (GE), USA in 1992. Today it is used by all major organizations. • In India, it is used • by Crompton Greaves, Wipro, Infosys, Reliance Industries, etc NIAZ SAHIL
  • 42. 360 Degree Appraisal • 1. Top Management :The top management normally evaluates the middle level managers. However, in a small organisation, they also evaluate the performance of the lower level managers and senior employees. • 2. Immediate Superior :The immediate superior is in a very good position to evaluate the performance of his subordinates. This is because they have direct and accurate information about the work performance of their subordinates. • 3. Peers / Co-workers : Peer or colleagues also evaluate each other's performance. They work continuously with each other, and they know each other's performance. Peer evaluation is used mostly in cases where team work is important. NIAZ SAHIL
  • 43. 360 Degree Appraisal • 4. Subordinates : The Subordinates can also evaluate the performance of his superior. Now-a-days students are asked to evaluate the performance of their teachers. • 5. Self Appraisal : In the self-appraisal, a person evaluates his own performance. He should be honest while evaluating himself. This results in self-development. • 6. Customers : Customers can also evaluate the performance of the employees who interacts with them. This evaluation is best because it is objective. It is also given a lot of importance because the customer is the most important person for the business. Organisations use customer appraisals to improve the strengths and remove the weaknesses of their employees. NIAZ SAHIL
  • 44. 360 Degree Appraisal • In addition to these six parties, appraisal can also be done by an Appraisal Panel. This panel consists of 5 to 6 different types of members. Outside Consultants are also used for conducting appraisals. In some cases, Personnel Department also conducts an appraisal of employees and managers. • 360 Degree Appraisal is becoming more popular because many parties are available for evaluation. Therefore, there is no "bias" or "halo effect". Hence the evaluation will become more realistic. NIAZ SAHIL
  • 45. Remuneration • Reward for employment in the form of pay, salary, or wage, including allowances, benefits (such as company car, medical plan, pension plan), bonuses, cash incentives, and monetary value of the noncash incentives. • Remuneration is the compensation that one receives in exchange for the work or services performed • Remuneration occupies an important place in the life of an employee NIAZ SAHIL
  • 46. Remuneration program objectives — for the organisation • Attract and keep the desired quality and mix of employees • Ensue equitable treatment • Motivate employees to improve their performance continually and to strive to achieve the organisation’s strategic business objectives • Reinforce the organisation’s key values and desired organizational culture • Drive and reinforce desired employee behaviour • Ensure remuneration is maintained at the desired competitive level • Control remuneration costs • Ensure optimum value for each remuneration dollar spent • Comply with company requirements NIAZ SAHIL
  • 47. Employee Remuneration Method 1: Time Rate Method Under time rate system, remuneration is directly linked with the time spent or devoted by an employee on the job. The employees are paid a fixed pre-decided amount hourly, daily, weekly or monthly irrespective of their output. It is a very simple method of remuneration. It leads to minimum wastage of resources and lesser chances of accidents. Time Rate method leads to quality output and this method is very beneficial to new employees as they can learn their work without any reduction in their salaries. This method encourages employees unity as employees of a particular group/cadre get equal salaries. NIAZ SAHIL
  • 48. Employee Remuneration Method 2: Piece Rate Method: It is a method of compensation in which remuneration is paid on the basis of units or pieces produced by an employee. In this system emphasis is more on quantity output rather than quality output. Under this system the determination of employee cost per unit is not difficult because salaries differ with output. There is less supervision required under this method and hence the per unit cost of production is low. This system improves the morale of the employees as the salaries are directly related with their work efforts. There is greater work-efficiency in this method. NIAZ SAHIL
  • 49. And also There are various others ways of rewarding employees such as: • 1. Basic pay for standard hours • 2. Additional hours rewards. • 3. Commission • 4. Bonuses are another form of incentive to meet particular targets. • 5. Performance related pay • 6. Profits related pay • 7. Payment by results • 8. Piece rate reward systems relate to paying employees according to their level of output. NIAZ SAHIL
  • 50. Components of remuneration • 1 Wages and Salary • :-Wages refer the hourly rates of pay, salary refers to the monthly rate pay, wages and salaries are subject to annual increments. They differ temp. To emp. Depend upon the nature of job , seniority and merits • 2 : Incentives :- • also called ‘payment by result’- paid in addition to wages and salaries. depend upon productivity, sale profit- there are • A. individual incentives scheme • B. group incentives scheme NIAZ SAHIL
  • 51. Components of remuneration • 3: Fringe benefits • :- These include such employee benefits as provident fund, medical care, hospitalization, accident relief, health insurance, canteen uniform and like • 4: Perquisites : • - These are allowed to executives and include company car, club membership, paid holidays, furnished house and like NIAZ SAHIL
  • 52. WHAT IS VARIABLE PAY? • Variable pay, also known as performance pay, is used to recognise and reward employee contribution above and beyond their normal job requirements, towards company productivity, profitability, quality and the like. Sreeradha D Basu explains: • Variable pay is often based on two main factors: your own performance and your company's performance. NIAZ SAHIL
  • 53. Remuneration InternalExternal Labor Market Cost of Living Labor Unions Government Legislations Society Economy Business Strategy Job Evaluation and Performance Appraisal The Employee Remuneration – Influencing Factors www.a2zmba.com NIAZ SAHIL
  • 54. Challenges of remuneration • Skill Based Pay • Pay Reviews • Pay Secrecy • Comparable worth • International Pay NIAZ SAHIL
  • 55. 4th unit training and development NIAZ SAHIL
  • 56. training and development • Training is the process of planned programs and procedures undertaken for the improvement of employee's performance in terms of his attitude, skills, knowledge and behavior. This training programs can significantly improve the overall performance of organization. Main Aim • Training Aims to improve employees current work skills and behavior NIAZ SAHIL
  • 57. Training • Training is normally viewed as a short process. It is applied to technical staff, lower, middle, senior level management. When applied to lower and middle management staff it is called as training and for senior level it is called managerial development program/executive development program/development program. NIAZ SAHIL
  • 58. The Objectives of training and development The principal objective of training and development division is to make sure the availability of a skilled and willing workforce to an organization. In addition to that, there are other objectives as follow : Individual Objectives – help employees in achieving their personal goals, which in turn, enhances the individual contribution to an organization. Organizational Objectives – assist the organization with its primary objective by bringing individual effectiveness. Functional Objectives – maintain the department’s contribution at a level suitable to the organization’s needs. Societal Objectives – ensure that an organization is ethically and socially responsible to the needs and challenges of the society. TO INCREASE PRODUCTIVITY An instructor can help employees increase their level of performance on their assignment. Increase in human performance leads to increase in the operational productivity and also the increase in the profit of the company. TO IMPROVE QUALITY Better-trained workers are less likely to make operational mistakes. It can be in relationship to the company or in reference to the intangible organizational employment atmosphere. NIAZ SAHIL
  • 59. NIAZ SAHIL Training: 1.It's a short term process. 2.Refers to instruction in technical and mechanical problems 3.Targeted in most cases for non-managerial personnel 4.Specific job related purpose 5 Development is a never ending process Development: 1.It is a long term educational process. 2.Refers to philosophical and theoretical educational concepts 3.Managerial personnel 4.General knowledge purpose 5 Training methods are limited 6 Training is one of the tools of development. difference between training and development Training is a process of learning a sequence of programmed behavior. It improves the employee's performance on the current job and prepares them for an intended job. Development not only improves job performance but also brings about the growth of the personality. Individuals not only mature regarding their potential capacities but also become better individuals.
  • 60. NIAZ SAHIL PURPOSE OF TRAINING 1.To improve Productivity: Training leads to increased operational productivity and increased company profit. 2.To improve Quality: Better trained workers are less likely to make operational mistakes. 3.To improve Organizational Climate: Training leads to improved production and product quality which enhances financial incentives. 4.To increase Health and Safety: Proper training prevents industrial accidents. 5.Personal Growth: Training gives employees a wider awareness, an enlarged skill base and that leads to enhanced personal growth. • PURPOSE OF DEVELOPMENT: Management development attempts to improve managerial performance by imparting 1.Knowledge 2.Changing attitudes 3.Increasing skills PURPOSE OF TRAINING and DEVELOPMENT The major objective of development is managerial effectiveness through a planned and a deliberate process of learning. This provides for a planned growth of managers to meet the future organizational needs.
  • 61. Types Of Training Programs • Basic literacy training is training for things like reading, writing and problem-solving skills. • Interpersonal skills training is training on how to maintain positive relationships, communicate better, resolve conflicts and build trust. • Technology Training • Problem-solving training • Diversity Or Sensitivity Training… NIAZ SAHIL
  • 62. Training Process Or Steps Involved For Conducting Training • A training is not a one sort affair; rather it is a step-by- step process that will completed only after successful completion of given sequential activities. Training Process • 1. Identifying Training Needs • 2. Establish Specific Objectives • 3. Select Appropriate Methods • 4. Implement Programs • 5. Evaluate Program • 6. Feedback NIAZ SAHIL
  • 64. NIAZ SAHIL 1. Identifying Training Needs Training need is a difference between standard performance and actual performance.Hence, it tries to bridge the gap between standard performance and actual performance. The gap clearly underlines the need for training of employees. Hence, under this phase, the gap is identified in order to assess the training needs. 2. Establish Specific Objectives After the identification of training needs, the must crucial task is to determine the objectives of training. Hence, the primary purpose of training should focus to bridge the gap between standard performance and actual performance. This can be done through setting training objectives. Thus, basic objective of training is to bring proper match between man and the job.
  • 65. NIAZ SAHIL 3. Select Appropriate Methods Training methods are desired means of attaining training objectives. After the determination of training needs and specification of objectives, an appropriate training method is to be identified and selected to achieve the stated objectives. There are number of training methods available but their suitability is judged as per the need of organizational training needs. 4. Implement Programs After the selection of an appropriate method, the actual functioning takes place. Under this step, the prepared plans and programs are implemented to get the desired output. Under it, employees are trained to develop for better performance of organizational activities. 5. Evaluate Program It consists of an evaluation of various aspects of training in order to know whether the training program was effective. In other words, it refers to the training utility in terms of effect of training on employes' performance. 6. Feedback Finally, a feedback mechanism is created in order to identify the weak areas in the training program and improve the same in future. For this purpose, information relating to class room, food, lodging etc. are obtained from participants. The obtained information, then, tabulated, evaluated, and analyzed in order to mark weak areas of training programs and for future improvements.
  • 66. Training Methods • A large variety of methods of training are used in business. Even within one organization different methods are used for training different people. All the methods are divided into two classifications for: NIAZ SAHIL A. On-the-job Training Methods: 1. Coaching 2. Mentoring 3. Job Rotation 4. Job Instruction Technology 5. Apprenticeship 6. Understudy B. Off-the-Job Training Methods: 1. Lectures and Conferences 2. Vestibule Training 3. Simulation Exercises 4. Sensitivity Training 5. Transactional Training
  • 67. A. On-the-job training Methods: • A. On-the-job training Methods: • Under these methods new or inexperienced employees learn through observing peers or managers performing the job and trying to imitate their behavior. These methods do not cost much and are less disruptive as employees are always on the job, training is given on the same machines and experience would be on already approved standards, and above all the trainee is learning while earning. Some of the commonly used methods are: NIAZ SAHIL
  • 68. NIAZ SAHIL 1. Coaching: Coaching is a one-to-one training. It helps in quickly identifying the weak areas and tries to focus on them. It also offers the benefit of transferring theory learning to practice. The biggest problem is that it perpetrates the existing practices and styles. In India most of the scooter mechanics are trained only through this method. 2. Mentoring: The focus in this training is on the development of attitude. It is used for managerial employees. Mentoring is always done by a senior inside person. It is also one-to- one interaction, like coaching. 3. Job Rotation: It is the process of training employees by rotating them through a series of related jobs. Rotation not only makes a person well acquainted with different jobs, but it also alleviates boredom and allows to develop rapport with a number of people. Rotation must be logical.
  • 69. NIAZ SAHIL 4. Job Instructional Technique (JIT): It is a Step by step (structured) on the job training method in which a suitable trainer (a) prepares a trainee with an overview of the job, its purpose, and the results desired, (b) demonstrates the task or the skill to the trainee, (c) allows the trainee to show the demonstration on his or her own, and (d) follows up to provide feedback and help. The trainees are presented the learning material in written or by learning machines through a series called ‘frames’. This method is a valuable tool for all educators (teachers and trainers). It helps us: a. To deliver step-by-step instruction b. To know when the learner has learned c. To be due diligent (in many work-place environments)
  • 70. NIAZ SAHIL 5. Apprenticeship: Apprenticeship is a system of training a new generation of practitioners of a skill. This method of training is in vogue in those trades, crafts and technical fields in which a long period is required for gaining proficiency. The trainees serve as apprentices to experts for long periods. They have to work in direct association with and also under the direct supervision of their masters. 6. Understudy: In this method, a superior gives training to a subordinate as his understudy like an assistant to a manager or director (in a film). The subordinate learns through experience and observation by participating in handling day to day problems. Basic purpose is to prepare subordinate for assuming the full responsibilities and duties.
  • 71. B. Off-the-job Training Methods: In these methods, trainees have to leave their workplace and devote their entire time to the development objective. Off-the-job training methods are conducted in separate from the job environment, study material is supplied, there is full concentration on learning rather than performing, and there is freedom of expression. Following training techniques are used off-the-job NIAZ SAHIL
  • 72. NIAZ SAHIL 1. Lectures and Conferences: Lectures and conferences are the traditional and direct method of instruction. Every training programme starts with lecture and conference. It’s a verbal presentation for a large audience. However, the lectures have to be motivating and creating interest among trainees. The speaker must have considerable depth in the subject. In the colleges and universities, lectures and seminars are the most common methods used for training. 2. Vestibule Training: Vestibule Training is a term for near-the-job training, as it offers access to something new (learning). In vestibule training, the workers are trained in a prototype environment on specific jobs in a special part of the plant. An attempt is made to create working condition similar to the actual workshop conditions. After training workers in such condition, the trained workers may be put on similar jobs in the actual workshop.
  • 73. NIAZ SAHIL 3. Simulation Exercises: Simulation is any artificial environment exactly similar to the actual situation. There are four basic simulation techniques used for imparting training: management games, case study, role playing, and in-basket training. 4. Sensitivity Training: Sensitivity training is also known as laboratory or T-group training. This training is about making people understand about themselves and others reasonably, which is done by developing in them social sensitivity and behavioral flexibility. It is ability of an individual to sense what others feel and think from their own point of view. 5. Transactional Analysis: It provides trainees with a realistic and useful method for analyzing and understanding the behavior of others. In every social interaction, there is a motivation provided by one person and a reaction to that motivation given by another person.
  • 75. EMPLOYEE ENGAGEMENT “A heightened emotional connection that an employee feels for his or her organization, that influences him or her to exert greater discretionary effort to his or her work".  “Employee engagement is the level of commitment and involvement an employee has towards their organization and its values.” NIAZ SAHIL
  • 76. What is Employee Engagement ? Its a step ahead than Employee Satisfaction: • Belief in the organization • Desire to work to make things better • Understanding of business context and the ‘bigger picture’ • Respectful of and helpful to colleagues • Willingness to ‘go the extra mile’ • Keeping up to date with developments in the field NIAZ SAHIL
  • 77. Components of engagement • Rational Engagement: the involvement, understanding and motivation an employee has in his/her job. • Emotional Engagement: the attitudinal attachment an employee has to his/her company. NIAZ SAHIL
  • 78. Categories of Employee Engagement Engaged--"Engaged" employees are builders. Not Engaged--Not-engaged employees tend to concentrate on tasks rather than the goals Actively Disengaged--The "actively disengaged" employees are the "cave dwellers. NIAZ SAHIL
  • 79. Measurement of Employee Engagement Step I: Listen. Step II: Measure current level of employee engagement. Step III: - Identify the problem areas. Step IV: Taking action to improve employee engagement by acting upon the problem areas. NIAZ SAHIL
  • 80. Model of Employee Engagement • Say :Speak positively about the organization • Stay : Desire to be a member of the organization • Strive : Go beyond what is minimally required NIAZ SAHIL
  • 81. Engagement activities • “This is about how we create the conditions in which employees offer more of their capability and potential.” –David Macleod 1: Involve employees in your business planning process • Every 6 months, or even quarterly, present the most important issues in your company and the actions made to address those issues. Involve your team in planning ahead, assessing opportunities and coming up with improvement ideas for your business strategy • 2: Create a knowledge sharing system One of the biggest costs of a high employee turnover rate is the loss of essential information. Implement a mentorship program, pairing experienced employees with newly hired ones. Create a learning program template that they should follow, giving them enough space to test their own learning methods. NIAZ SAHIL
  • 82. Engagement activities 3:Show them the money • Give your team a quick presentation of the financial state of your company, every quarter or at the end of the year. 4: Encourage and provide learning opportunities • Create your own Academy, where employees can access the knowledge and development opportunities that they need. 5: Create your own internal magazine • Create your internal employee-focused magazine with fun columns, news, featured stories and opportunities. Who wouldn’t like to be featured on the cover as Employee of the Month? 6: I am my own hero” • Encourage individuals to design and own their career paths, instead of relying on the company or on their manager. NIAZ SAHIL
  • 83. Engagement activities 7:Celebrate people • Birthdays, promotions, retirements, newcomers welcoming, there are plenty of important moments where people can be put at the front of the company. Show them they matter 8: Have team photos • Have photos of your team on a wall, or frame them around the office. 9: Raise salaries 10: Celebrate achievements 11: Show respect 12:Make sure that people have all the resources they need 13: Build long-term engagement 14: Make sure that people have all the resources they need 15. Empower your employees NIAZ SAHIL