5 human resource management.21714217

7/31/2019 5 Human Resource Management.21714217

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Human Resource

Management


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Learning Objective

Introduction to Human Resource

Management

Concept of Human Resource Planning,

Job analysis,

Recruitment and selection,

Performance appraisal, Training and development


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Case incident 1

Global Textile industries had its presence

in the textile industry for more than 100

years .The HR DEPT of the company was

mostly administrative in nature . But with

the changes in the company environment ,

the company plan to integrate HR in

strategy formulation and implementation.What are the challenges do you think the

company HR department would face?


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Human Resource Management

Human Resource Management (HRM) The comprehensive set of managerial

activities and tasks concerned withdeveloping and maintaining a qualified

workforcehuman resourcesin ways thatcontribute to organizational effectiveness.

Effective human resource management isa vital strategic concern for organizations

today.


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Definition and concept of HRM

According to Gluke Human resource

management is function performed in

organization that facilitates the most

effective use of people (Employees) toachieve organizational and individual

goals


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HRM is a process that consists of FourFunctions-Acquiring, Developing, Motivatingand retaining human resources.

Acquisition-starts with Planning and ends withstaffing

Development function has three dimensions-Employee training, Employee Developmentand career development

.Motivating function includes Identifying theindividual motivational needs of employeesand identifying ways to motivate them

Retention function is concerned with

providing a conducive work environment


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Definition and concept of HRM

Managing people is one of the biggestchallenges for any manager for followingReasons

Individual Differ from each other in terms of values ,attitudes , beliefs and culture. This leads to a verycomplex situation in an organizational context

The stimulating and motivating factors might not besame for all the employees.

The expectation of employees of today are much greaterwhen compared to employees of yesteryears. Theyknow they are valuable assets and demand to be treatedas such.


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Challenges that HR Dept of Global

Textile industries would face

Global Business Environment

Profitability through Growth

Technology Intellectual Capital

Adaptability


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HR

Management

Activities


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Case Incident 2

ABC corporation is a large manufacturing organization

which have been facing problems due to constant

conflicts between human resource and production

department. While the production team resents the mere

presence of HR department the HR team on the otherhand believes that the production dept does not

appreciate the value and importance of its contribution to

the organization. What do you think could be the

probable cause for the conflict between the twodepartment? If you were the external consultant asked to

resolve this conflict, what would you suggest?


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Line vs. Staff Perspectives Organizations typically divide managers into

two groups: Line (now operating) managers in operations,

finance, and marketing functions supervise anddirect the workforce in the creation of goods andservices. Their contributions to the organization

can be measured directly. Staff managers in legal, HR departments perform

indirect or support functions, which makes theircontributions less easily measured directly.

HR departments are assigned staff functionsandstaff responsibility. HRM activities are distributedthroughout organizations, yet HR departments areresponsible for monitoring and ensuringorganizational compliance with laws, regulations,

policies, procedures, and rules.


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HR Staff should reorient itself and play

more strategic role

Understanding the market and business better

Having a complete understanding of organizationalprocesses

Being emphatic to the limitation of line function

Building an atmosphere of trust and transparency Trying to work towards a win-win situation rather than

trying to gain upper hand

Being open to bouquets as well as brick bats for itsaction

Playing an active role in designing the strategy of theorganization


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Case Incident 2

The economic downturn during the recent past caused serious

problems to most organizations, especially in the IT field. Horizon

Technologies, a five-year old firm was faced with the most common

problem surplus manpower, The top management called for

a meeting to discuss strategies to help the organization surviveduring those turbulent times. What do you think might be the

strategies that will help Horizon deal with surplus manpower?


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HUMAN RESOURCEPLANNING


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Human Resource Planning

It can be defined as a process of ensuring the

right number of qualified people , into the right

job at the right time to deliver the results in an

effective and efficient manner . It is the systemof matching the available resources either

internally or externally with the demand the

organization is going to have over a period of

time


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Process of Human resource

Planning 1 Analyzing the impact of the organizational strategy

and objectives on different units of the organization interms of the human resource requirements.

2. Involving the line managers in determining thehuman resource needs of their respective departments.

3. Forecasting the quantity and quality of humanresources required by different departments/divisions.

4. Matching !he current human resources supply in theorganization with the numbers required in the future.

5. Developing an action plan to meet the future


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Dealing With Surplus man power

Voluntary Retirement

Attrition

Reduced work hours

Work Sharing

Loaning

Leave of absence without pay

Lay off

Retrenchment


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s ma ng n erna a or upp y for a Given Unit


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Case incident

Triumph Electronics, a manufacturer of electronicappliances, decided to conduct a detailed job analysis tocollect information about various aspects of the different

jobs in the organization that would provide necessary

inputs for a number of HR activities like recruitment,selection, job design, training and appraisal. However,problems cropped up when its employees began to viewthe initiative asa threat to their job security as someorganizations use this process for downsizing the

workforce. Organizations like Triumph face suchproblems while implementing the process of job analysis.Discuss the various issues associated with job analysisand suggest ways of tackling them


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What is a job?

Job

Group of related activities and duties

Made up of tasks

Tasks

Basic elements of jobs

what gets done


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Job Analysis

It is the process of determining and

recording all the pertinent information

about a specific job, including the tasks

involved, the knowledge and the skill setrequired to perform the job, the

responsibilities attached to the job and the

abilities required to perform the jobsuccessfully.


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Job Analysis Information and Facts Job Description (JobOriented)

Job Identification : Job Title,Location, Job code, Departmentand unit

Job Summary: Brief Jobcontent,its authority, responsibility,Hazards

Relation to other jobs

Location in the hierarchy

Machines, tools, equipments used

Responsibilities

Conditions of work, location ofwork, Posture Etc

Job Specification(Employee

Oriented) Education

Experience

Training

Judgement

Initiative

Physical Efforts

Physical Skills Communication Skills

Emotional Characteristics


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Uses Of Job Analysis Employment

Organization Audit

Training and Development

Performance Appraisal

Promotion and Transfer Preventing Dissatisfaction

Compensation Management

Health and Safety

Induction

Industrial Relation Career Planning

Succession Planning


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Case Incident

To solve the problem

Involve the employees in the process of job analysis

Management should be Transparent

Need to update the information gathered

Analyze job not the person


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Case Incident

The TNB Bank Ltd. is an established private sector bank in south

India. The bank has a few vacancies in top managerial positions due

to the retirement of some ofsenior personnel. The HR departmenthas decided to identify suitable personnel from within the

organization for promotion, instead of recruiting from outside .Was

the HR department right in deciding to recruit people from within theorganization'. Will they not miss out on talent from outside? Discuss

the pros and cons of conducting an internal recruitment drive instead

of seeking potential employees from-outside


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RECRUITING

AND

SELECTING

THE

RIGHT PERSON


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Recruitment

Recruitment is the process of searching for

prospective employees and stimulating them to

apply for jobs in the organization

This process starts with the identification of the

need for the human resources and ends with

getting the prospective employees to apply for

the vacancies available.


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Sources of recruitment

Internal Search-Identify Employees from within

the the organization to be groomed to take

higher responsibilities

Advantages -Helps in maintaining good employee relation

Boost Morale of employees

Encourages competent and ambitious employees as their

performance is rewarded

Time and resources are saved on selection and induction program


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External Sources

Advertisements

Employee Referrals

Employment Agencies Education Institutes

Unsolicited Applicants


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Case Incident

Sputnik enterprises had advertised in a leading national

daily for an able and qualified production manager for its

Nagpur branch. In response to the advertisement, the

HR department received a number of applications- After

a preliminary analysis of the applications, it short listedaround sixty applicants, who had lo be further tested for

their managerial and decision-making abilities. Suggest

appropriate selection methodologies that Sputnik can

implement to decide on the most suitable candidate for amiddle-level managerial position of production manager.


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Selection

The process of choosing the most suitable

candidate for a job from among the

available applicants is called Selection.

This process starts with gathering

complete information about applicants

from his application forms and ends with

inducting them into the organization


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The TYPICAL SELECTION PROCESS

Completion of the Application Form

Initial Screening Interview

Employment test Test

Comprehensive Interview

Background Investigation

Physical Examination

Final Employment Decision


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Selection Process

Steps in Selection Process

1Resumes/CV review

2 Initial Screening interview

3 Analyze the application blank 4 Conducting Tests and Evaluating Performance

5 Preliminary Interview

6 Core and departmental Interview

7 Reference Check

8 Medical Examination

9 Placement


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Case Analysis

Group Discussion- Candidates are testedfor initiative, lesdership qualities ,negotiation skills and decision making

abilities In basket Exercises objective is how he

is able to hadle multiple tasks, prioritizethings, analyze information and delegatetasks.

Simulated Games- ROLE PLAY


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Case Incident

Peoples Bank, a growing private sector bank has just recruited 15

new employee as senior officers to fill vacancies across the country.

On the first day at the bank the new recruits had an informal talk

among themselves. All of them had deferrer opinions about the bank

and their role in the organization. A lot of ambiguity and uncertainty

prevailed among them. They were apprehensive about theiracceptance in the organization, the functions they have to perform,

their peers superiors and other co-workers. Discuss how Peoples

Bank can reduce the apprehensions among its employees


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Induction

To provide the information and opportunity

required by all new employees to

satisfactory adjust to their work and help

them to develop an enthusiasm for theorganization, its ideals, policies and

responsibilities.


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Objectives of Induction

To define the terms and conditions of work

To acquaint the employee with the requirements of thejob

To inculcate in the employee a confidence in his ownability to do the job and also a confidence in theorganization.

To bring about integration and agreement between

organization goals and personal goals.


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Objectives of Induction

To provide the information and opportunity

required by all new employees to

satisfactory adjust to their work and help

them to develop an enthusiasm for theorganization, its ideals, policies and

responsibilities


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Organisational Issues

History Of the organizatiom Names of key executives

Employee title and dept

Layout and physical facilities

Probation period

Product line and service provided Overview of production process

Company policies and rules

Discipline procedure

Employee Handbook

Safety procedure and enforcement


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Employee Benefits

Pay scale

Vacations and holidays

Rest breaks Training and education benefits

Insurance Benefits

Retirement programme


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NTRODUCTION

To supervisors

To trainers

To co workers Employee counsellors


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Job duties

Job location

Job tasks

Job safety requirements Overview of the job

Job objectives

Relationship with other jobs


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Case Incident

Vishnu Group of Industries is a refrigeratormanufacturing and marketing company. In the recentpast, the performance of its sales personnel was foundto be going down. An analysis revealed that the salespersonnel were not happy with their performanceappraisal. A survey was conducted, which revealed thatthe appraisal of the employees did not take intoconsideration the slump period and the salesmen wereexpected to maintain the same standards throughout.

What dc you think would have gone wrong and how canthe management win back its employees' confidenceand commitment?

Appraising and


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Appraising and

Managing

Performance


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Definition

Performance Appraisal is the systematic

evaluation of the individual with respect to

his or her performance on the job and his

or her potential for development.

Process of performance


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Process of performance

appraisal

Setting performance standards

Communicating standards

Measuring performance

Comparing with standards

Discussing results

Taking corrective actions


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PURPOSES

Training and development

Identification of potentialPromotion decision

Compensation administration

Work force planningValidation of selection procedure


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Methods of Appraisal

1) Traditional Methods

2) Modern Methods


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Traditional Methods

1) Rating Scales

2) Checklists

3) Forced Distribution Method

4) Critical incident method

5) Field review method

6) Annual confidential report 7) Essay method


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Rating Scales

A simple and popular technique.

Consists of various job-related

performance criterion which are to be

rated on a scale of 1 to 5.


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Graphic Rating Scale

Ch kli t


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Checklist

Method

A checklist of statements on the traits of

the employee is prepared in two columns-

YES and NO.


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Forced Distribution Method

Based on the assumption that the

employee performance levels conforms to

a normal statistical distribution ( a bell-shaped curve).

The rater is compelled to distribute the

ratees on all points on the rating scale.


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Forced Distribution Example

-----5-------4-------3-------2-------1------

Excellent Poor

No more than 5% of employees should

receive a 5 rating.

At least 50% of employees shouldreceive a rating of 3 or lower.


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Critical Incidents Method

It was developed following the research

conducted by the armed forces in the United

States during World War II.

Employees performance is measured in termsof certain events or episodes that occur in the

performance of ratees job.

The critical incidents are discovered after a

thorough study of the personnel working on thejob. The collected incidents are then ranked in

the order of frequency and importance.


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Field Review Method

Someone outside the Supervisors owndeptt., usually someone from the HRdeptt., interviews the line supervisor to

evaluate their respective subordinates. He asks some specific questions which

are prepared in advance to the supervisorabout the subordinates performance.

The answers are noted and approved bythe supervisor.


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Free essay method

Supervisor makes a free form, open-endedappraisal of an employee in his own words andputs down his impressions about the employee.

Usually the following factors are taken into

consideration: 1) Relations with fellow workers.

2) General organization and planning ability.

3) Job knowledge and potential.

4) Employee characteristics and attitude. 5) Understanding and application of company

policies and procedures.


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Confidential Report

A traditional form of appraisal used mostly

in govt. organization.

A report is prepared by the employees

immediate superior. It covers thestrengths-weaknesses, achievements-

failures, personality and behavior of the

employees. This report is kept confidential and is

considered while making promotion

decisions.


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Modern Methods

Management by Objectives (MBO)

BARS

Assessment Centers

360-Degree Feedback


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Management by Objectives

The concept of MBO was developed byPETER F. DRUCKER in 1954.

Definition: MBO is a process whereby the

superiors and subordinates of an

organization jointly identify its common

goals, define each individuals major areas

of responsibility in terms of results

expected of him and use these measuresas guides for operating the unit and

assessing the contribution of each

member.


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Management by Objectives


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ERRORS IN JUDGMENT

HALO ERRORS

The appraiser allows the singlecharacteristics of the appraisee todominate his judgment of the

employee Eg, good communication

skills/shoody dressing


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LENIENCY ERRORS

NEGATIVEGIVES HARSHEREVALUATION THAN DESERVED

POSITIVEGIVES HIGHER RATINGS THANDESERVED


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ERRORS

CENTRAL TENDENCY- RATERUNWILLING TO GIVE EXTREMERATINGS, USE ONLY THE MIDDLE

PART OF THE SCALE


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ERRORS

Perceptual set- This is the tendency of the

appraisers to have expectation of

performance level , which might distort the

perception and judgement of actualperformance.


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Possible PA


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Raters

Supervisor

Supervisors supervisor

Self

Peer

Subordinate

Customer

360 degree appraisal


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360 Feedback

The combination of peer,subordinate, and self-review


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Case Incident 2

An IT firm recruited fresh graduates from

the campus. The Chief HR Manager

assigned the task of training these

employees to the Assistant Manager HR.Vipul Shah. What are the various areas in

which these new recruits should be

trained?


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Training and Development

Training Effort initiated by an organization to foster

learning among its members.

Tends to be narrowly focused and orientedtoward short-term performance concerns.

Development

Effort that is oriented more toward broadening

an individuals skills for the futureresponsibilities.

Training Methods for Non


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managerial Employees

On-the-Job Training Methods

Apprenticeship Training

Job instruction training

Job rotation Committee Assignments

Vestibule training



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managerial Employees (contd)

On-the-job training (OJT) Method by which employees are given hands-

on experience with instructions from theirsupervisor or other trainer.

Apprenticeship training

System of training in which a worker enteringthe skilled trades is given thorough instruction

and experience, both on and off the job, in thepractical and theoretical aspects of the work.



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managerial Employees (contd)

Vestibule Training

A special type of classroom facility is used to

give instruction in the operation of

equipment like that found in operatingdepartments.

Committee Assignments A group of

employee are given an actual organization

problem and are asked to find a solution

Training Methods for


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Training Methods for

Management Development

Off-the-Job method of training

Seminars and Conferences

Case Studies

GD

In basket

Management Games

Role Playing

Behavior Modeling


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Quiz

1 The process of recording all pertinentinformation about specific job , includingthe task involved , the knowledge and skill

sets required to perform the job is termedas

A Job Evaluation

B Job specification

C Job Analysis

D Job design


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2 An HR MANAGER WAS INVOLVED IN THEPROCESS of HRP . The first step heundertook was assessing current resourcesand making an inventory. What is the next stepthat the manager has to take in HRP

A Start recruiting to meet the requirement

B Forecasting

C Matching the inventory with future

requirement D Developing an action plan to meetfuture requirement


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3 An HR Manager in a large multinational firmis involved in establishing an intentional

structure of roles for people and assigning

responsibilities. What is the managerial function

that the HR manager is performing?

A Managing

B Staffing

C Directing

D Controlling


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4 The HR department of Magnus Textiles made surethat any vacancies in the organization first reachedthe prospective candidates in the organization.Candidates from the organization responded to jobposting. What is the source of recruitment being

used?

A Advertisement

B Internal Search

C Employee Referrals

D Campus Recruitment


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5 A software firm has a vacancy for the post of Vicepresident (Operations) which of the following methods ofrecruitment would you suggest

A Employment Pages of a national daily orbusiness magazine

B Campus Placement

C Advertisement in a local daily

D Listing of the vacancy on a play card outside theorganization


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6 In a process of selection, the step thatfollows Analyze the application Blankis

A Decision making interview

B Preliminary Interview

C Reference check D Induction


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7 A formal record of an individual appeal orintention for employment that in helps ingathering information about a prospectivecandidate is called

A Application blank B Employee data

C Employee blank

D Data blank


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8 Mohan Krishna attended an interview and was veryupset with the way it progressed . The interviewerrepeatedly interrupted him, criticized his answers andasked him unrelated questions. What is the method ofinterview adopted?

A Panel Interview

B Stress Interview

C In depth Interview

D Group Interview


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9 Identify the correct sequence of interview process A Closing The interview

B Evaluation

C Conduct of interview

D Reference check

A a,b,c,d

B C,A,B,D

C B,C,D,A D d,c,b,a


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10 A new employee is being introduced to theorganization , its business organizational culture,its value and belief? What is the proceduretermed as?

A Selection B Placement

C Induction

D Recruitment


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11 Clear and well defined goals, a definitetime plan and an action plan to achieve

these goals combined with timely

feedback are characteristics ofA Work standard approach

B Management by objectives

C BARS

D Balanced Scorecard Method


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12 The method of appraisal where theappraisee makes a list of all the important

situation and employee reaction/

behaviour at that time isA Checklist method

B Critical Incident method

C Graphic rating Method

D Work Standard Method


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13 Riana is a good salesman and works for an itcompany, but his performance in 2001-02 wasaffected because of the slump in the IT market .However his boss fails to acknowledge it and

rates his performance as poor. This is anexample of

A Halo effect

B Perceptual effect

C Stereotyping

D Fundamental attribution error


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14 Praveen is a new recruit in amanufacturing firm. His job entails

operating and using expensive equipment.

Therefore, he needs to first make himselfcomfortable with the various machines and

their working. What is the method that the

organization has to adopt to train him?

5 human resource management.21714217

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