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Module 1.Introduction It is not very easy to define precisely Management, but it is essential to know what Management means before we study Human Resource Management. Management has been defined by Mary Parker Follett as, "the art of getting things done through people." But Management is much more than what is said in this definition. It is further defined as ...... That field of human behaviour in which Managers plan, organise, staff, direct and control human, physical and financial resources in an organised effort, in order to achieve desired individual and group objectives with optimum efficiency and effectiveness." [Quoted in Chandan J.S., Fundamentals of Modern Management] It is therefore clear that management is charged with the responsibility of achieving planned individual and group goals by a balanced utilisation of physical and financial resources through the efforts of human resources. Human resource, therefore, becomes a crucial subsystem in the process of Management. But most of us are not clear what exactly Human Resource means. According to Leon C. Megginson, Human Resources means "the total knowledge, skills, creative abilities, talents and aptitudes of an organisation's workforce, as well as the value, attitudes and beliefs of the individuals involved." Therefore, Management can procure and use the skill, knowledge and ability, through the development of skills, using them again and again. Therefore, it is a long term perspective whereas personnel is a short term perspective. Personnel Vs Human Resources at Various levels Human Resources denotes the total sum of all the components - skills, creative ability etc. - with all the people (employed, self-employed, unemployed, employers, owners etc.) whereas personnel is limited to employees of organisations only. Human Resources, even at the organisation level, includes all resources of all the people who contribute their services to the achievement of organisational goals and also others who contribute their services to create hurdles in the achievement of the said goals.

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PERSONNEL VS HUMAN RESOURCES MANAGEMENT Personnel Management 1. Personnel means persons employed. Personnel management is the management of people, skills employed. 2. Employee in personnel management is mostly treated as an economic man as his services are exchanged for wage / salary. 3. Employee is viewed as a commodity or tool or equipment which can be purchased. 4. Employees are treated as cost centres and therefore management controls the cost of labour. 5. Employees are used mostly for the organisational benefit. 6. Personnel function is treated as only an Auxiliary function. Human Resources Management 1. Human Resources management is the management of employees knowledge, abilities, talents, aptitudes, creative abilities etc. 2. Employee in human resource management is treated not only as economic man but also as social and psychological man. Thus, the complete man is viewed under this approach. 3. Employee is treated as a resource. 4. Employees are treated as profit centres and therefore, invests capital for human resource development and future utility. 5. Employees are used for the multiple benefits of the organisation, employees and their family members. 6. Human resources management is a Strategic Management function.

[P. V. Subba Rao Essentials of Human Resources Management and Industrial Relations] Figure .1. Meaning and Significance of Human Resources Management Human resources means different things to different people. They are: Labour Management, Labour Administration, Labour Management Relations, Employee-Employer relations, Industrial relations, Personnel Administration, Personnel management, Human capital management, Human asset management, Human resources management etc. Human Resources Management means employing people, developing their resources, utilising, maintaining and compensating their services in consonance with the job and organisational requirements.

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Personnel management as defined by the Indian Institute of Personnel Management Personnel management is a responsibility of all those who manage people as well as being a description of the work of those who are employed as specialists. It is that part of management which is concerned with people at work and with their relationships within an enterprise. It applies not only to industry and commerce but to all fields of employment. Human resources has a very definite role in the development of modem economics. Arthur Lewis says there are great differences in development between countries which seem to have roughly equal resources, so it is necessary to enquire into the difference in human behaviour. Hence all development comes from committed manpower. Abundance of resources has no meaning unless we make proper use of them. Myrdal Gunnar, [Asian Drama, Penguin Books Ltd.] says that lack of organisation of human resources is largely responsible for the backwardness of the nation. Countries are under developed because their people are under developed. In essence, the difference in the level of economic development of the country is largely a reflection of the differences in quality of their human resources Hence what determines a countrys economic development are the values, attitudes, general orientation and quality of its people. Also, the shifts from manufacturing to services and technological upgradations make the human resources the vital element to the nations growth and progress. And in any service industry like banks, railways etc., the quality and the methods of utilisation of human resources become significant. Peter F. Drucker rightly pointed out the significance of personnel as; managers are fond of repeating the truism, that the only real difference between one organisation and the other is the performance of people. Human Resources system in any organisation is an unique subsystem operating upon and controlling all other subsystems.

MATERIAL SUBSYSTEM

FINANCIAL SUBSYSTEM

HUMAN RESOURCES SUBSYSTEM

MARKETING SUBSYSTEM

TECHNOLOGY SUBSYSTEM [Organisation System] Figure .2.

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Functions of Human Resources Management: . There are two broad functions of H R M. They are 1. Managerial Functions 2. Operational Functions

Managerial Functions: Managerial functions of Personnel management include planning, organising, directing, co-ordinating and controlling. Planning: It is the charting out of programmes and changes in advance in the achievement of organisational goals. Hence, it involves planning of human resources requirements, recruitment, selection, training etc. It also involves forecasting of personnel needs, changing values, attitudes and behaviour of their employees and their impact on the organisation. Organising: In the words of J.C. Massie, an organisation is a "structure and process by which co-operative groups of human beings allocated its tasks among its members, identifies relationships and integrates its activities towards a common objective." Given the complex relationships that exist between specialised departments and the general departments, many top managers seek the advice of personnel manager. In this manner, the organisation establishes relationships among the employees so that they can together contribute to the achievement of organisational goals. Directing: After planning and organising comes the execution of the plan. The willing and effective co-operation of employees towards the achievement of organisation's goal has to be brought about by proper direction. Identifying and utilising maximum potentials of people is possible through motivation and command. Direction, therefore, is an important managerial function in ensuring optimum employee contribution. Co-ordinating: It is the task of matrixing various employees efforts to ensure successful goal achievement. The Personnel manager co-ordinates various managers at different levels as far as the personnel functions are concerned. Controlling: After planning, organising, directing and co-ordinating, the various activities, the performance is to be verified in order to know, at various points of time, whether the activities are performed as per plans and directions. It involves checking, verifying and comparing actual with the plans, identification of deviations if any and correcting the deviations. Auditing training programmes, analysing labour turnover, overseeing morale surveys, conducting exit interviews are some of the controlling functions of personnel management. Operative Functions:

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The operative functions of H R M relate to employment, development, compensation and relations. All these are interacted by managerial functions. Also, they are to be performed in conjunction with management functions. Human Resources Planning Recruitment Selection Induction Placement Performance Appraisal Training Management Development Career Planning & Development Organisation Change & Organisation Development Job Evaluation Wage & Salary Administration Fringe Benefits Motivation Morale Job Satisfaction Communication Grievance & Disciplinary Procedures Quality of Work Life & Quality Circles

EMPLOYMENT

HUMAN RESOURCE DEVELOPMENT

COMPENSATION MANAGEMENT

HUMAN RELATIONS

ORGANISATIONAL DESIGN ---- JOB DESIGN ---- JOB ANALYSIS Functions of H R M Figure .3. Employment: Employment function is securing and employing the people having required level of human resources essential for achieving the organisational objectives. It involves job analysis, human resources planning, recruitment, selection, placement, induction and handling internal mobility. Job Analysis: It is the study and collection of data relating to the operations and responsibilities of a specific job. It includes: a. Collection of data and information and facts relating to the various aspects of jobs including men, machines and materials. b. Drawing up of job description, job specification, job requirements and employee specification with which nature, levels and quantum human resources can be finalised. c. Providing the guidelines, plans and the basis for job design and for all operative functions of H R M. Human Resources Planning:

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This is the process which assures the organisation that it will have adequate number of qualified persons, at requisite times, performing in a way to satisfy the needs of the organisation and also provide satisfaction to the individual employee, so employed. The process involves: a. Estimating the present and future requirements of human resources based on objectives and long range plans of the organisation. b. Calculation of net human resource requirements based on the present availability of human resources. c. Taking suitable steps to identify, mould, change and develop the strength of existing employees so as to meet the future requirements. d. Preparation of action plans to acquire the balance human resources from outside the organisation and to develop the existing employees. Recruitment: It is the process of searching for future employees (requirement) and ensuring they apply for jobs in the organisation. It involves: a. Identification of existing sources of candidates and developing them. b. Seeking out and identifying new sources of applicants. c. Motivating the right type of candidates to apply for jobs in the organisation. d. Ensuring a healthy balance between internal and external sources Selection: It is the process of ascertaining the qualifications, experience, skill, knowledge etc. of an applicant to ascertain his / her suitability for the job applied for. This includes: a. Developing application blanks. b. Creating and developing valid and reliable testing techniques. c. Formulating interviewing techniques. d. Checking of references. e. Setting up for medical examination policy and procedure. f. Line Managers to be involved in the decision making. g. Sending letters of appointment. h. Employing the selected candidates, when he reports for duty Placement: It is the process of allotting to the selected candidate the most suitable job, as per the job requirements and employee specifications. This function includes: a. Counselling the concerned managers regarding the placement

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Overseeing the follow-up studies, employee performance appraisal to monitor employee adjustment to the job, in the coming days. c. Correcting wrong / misjudged placements, if any.b.

Induction and Orientation: These are procedures by which a new employee is rehabilitated in the new surroundings and introduced to the practices, procedures, policies, people etc. of the organisation. It includes: a. Familiarising the employee with company philosophy, objectives, policies, career planning and development, company product, market share, history, culture, etc. b. Introduce the new employee to the people - his colleagues, supervisors and subordinates. c. Mould the employee by orientation methods to the new working conditions. Human Resources Development: This process involves improving, moulding, and developing the skills, knowledge, creativity, attitude, aptitude, values, commitment etc. based on the present and future job and company requirements. Performance Appraisal: It is the continuous and systematic evaluation of individual employees with respect to their performance and their potential for future development. It includes: a. Enunciating policies, procedures and techniques. b. Assisting functional managers. c. Reviewing and summarising reports. d. Evaluating the effectiveness of various programmes. Training: It is the process of transmitting the employees the technical and operating skills and knowledge. It includes: a. Identification of training needs of the individuals and for the organisation. b. Developing appropriate training programmes. c. Assisting and advising the management in the conduct of training programmes. d. Transmitting requisite job skills and job knowledge to the employees. e. Assess the effectiveness of training programmes. Management Development: It is the process of designing and conducting appropriate executive development programmes so as to develop the managerial and human relations of skills of the employees. It includes: a. Identification of the areas in which management development is needed.

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b.

c. d. e. f.

Conducting development programmes. Motivating executives / managers. Designing special development programmes / assessment procedures for promotions. Utilising the services of specialists - both internal and external for development and / or Institutional (external) development programmes. Evaluating the effectiveness of executive development programmes.

Career Planning and Development: It is the planning of one's career and implementation of career plans by means of education, training, job search and acquiring of work experience. It includes: a. Internal mobility - vertical and horizontal transfers, promotion and demotion. b. Transfer - process of placing employees in the same level jobs where they can be utilised more effectively as per the needs of the organisation. This also means - developing transfer policies, offering assistance and guidance to employees under transfer orders and evaluating transfer policy periodically. c. Promotion - it deals with the upward assignment of employees to occupy higher positions (with better status and pay) in consonance with resources of employees and job requirement. The Department must ensure that: i. equitable, fair and consistent promotions are formulated and administered. ii. managers and employees are given assistance and guidance on the subject of promotion. iii. execution of promotional policies are as per policies and procedures. d. Demotion - is the downward assignment of, an employee in an organisation. The Department must ensure that: i. equitable, fair and consistent demotion policies are drawn up. ii. assisting and advising employees regarding demotions. iii. ensure fair implementation of demotion policies and procedures. Organisation Development: The planned process drawn up to improve organisational effectiveness through changes in individual and group behaviour, culture and systems of the organisation - drawing models from applied behavioural science. Compensation Management: The process of providing equitable, fair and adequate remuneration to the employees. This per se involves - Job evaluation, wage and salary administration, incentives, bonus, fringe benefits, social security measures and so on. a. Job Evaluation - the process of determining the relative worth of jobs: i. Select suitable job evaluation techniques. ii. Classify jobs in to various categories.

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b.

c.

d. e.

iii. Determining relative worth of jobs in various categories. Wage and Salary Administration - developing and operating an appropriate wage and salary programme. It will necessitate: i. Initiate a wage and salary survey. ii. Determining wage / salary rates based on various factors. iii. Proper administration of Wage and Salary Programmes. iv. The periodical evaluation of its effectiveness. Incentives - formulation administration and reviewing the schemes of payment of financial incentives in addition to regular wages and i. Formulation of incentive schemes. ii. Assisting managers on its operation. iii. Periodical review to evaluate effectiveness and relevance. Bonus - payment of statutory bonus according to the Payment of Bonus Act, 1965, and its latest amendments. Fringe Benefits - various benefits at the peripheral area of the wage. Organisation provides these primarily to motivate the employees and to meet their contingencies. Benefits include: i. Disablement benefit. ii. Housing facilities. iii. Educational facilities to employees children. iv. Canteen facilities. v. Conveyance facilities. vi. Credit facilities. vii. Legal assistance. viii. Medical, maternity and welfare facilities. ix. Company stores. Social security measures -These measures are in addition to fringe benefits, which include : i. Workmen's compensation to those workers (or their dependants) who are involved in accidents. ii. Disablement benefits and allowance. iii. Dependent benefits. iv. Retirement benefits like Provident Fund, Pension, Gratuity etc.

f.

Human Relations: Administering various human resources policies like employment development and compensation and interactions among the employees on one hand and employees and the, management on the other, create a sense of working relationship between workers and management and trade unions. Basically they are all interactions between human beings. Human relations, is therefore, is an important area in management which integrates people into work situations in a way that motivates people to work together with economic, psychological and social satisfaction thereby increasing their productivity. Hence Human Resources Management functions will centre around: a. Understanding perception, personality, learning, intra and inter personal relations, inter and intra group relations.

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b. c. d. e.

Motivating all employees. Promoting employee morale. Developing communication skills. Developing leadership skills. f. Redressing satisfactorily through a well defined grievance procedure. g. Handling disciplinary cases by established disciplinary procedures and in all fairness. h. Providing adequate counselling to solve employees' personal, work and family problems, thereby releasing their stress and strain. Objectives of Human Resource Management Objectives of Personnel Management are determined by organisational objectives and individual and social goals. Institutions are established to achieve certain specific objectives. The objectives of commercial institutions are mostly to earn profits and of educational institutions are mostly to impart education and conduct research etc. But the fundamental objective of any institution is survival. However, institutions are not satisfied with this goal. They definitely have a further goal of growth and profits. Institutions acquire and manage resources including human resource to achieve their objectives. The prime tool employed and utilised for this purpose is human resource. Hence the main objectives of Human Resources Management are drawn from the organisational objectives. The other objectives of HRM are to take care of the needs, aspirations, dignity of individual employees and at the same time keeping in mind the socio-economic problems of the community and the country. The objectives of HRM may therefore be something as below: 1. Create and utilise capable and motivated workforce, to achieve the basic organisational goals. 2. To establish and maintain proper and sound organisational structure and healthy working relationships among all its employees. 3. To ensure the integration of individual group's goals with those of the organisation. 4. To create facilities for individuals and groups to develop so as to be in tune with the growth of the organisation. 5. Proper and optimum utilisation of human resources. 6. Ensuring adequate and equitable wages, incentives and other benefits so that satisfied individuals and groups are motivated to take on challenges. 7. Maintain high employee morale. 8. Continuously upgrading the skill and knowledge levels of employees, by training and development programmes. 9. Ensure opportunity for participation in management to the extent possible. 10. Provide acceptable and effective leadership. The above objectives will remain pious and perhaps lofty ideals unless sufficient preparations and precautions are not undertaken at various stages.

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The prerequisites for achieving the above objectives are: 1. Recruitment of right persons with requisite skills, knowledge and competence. 2. Every employee should be informed of the objectives of the organisation and their individual goals and be explained how achievement of their individual goals contribute to the achievement of organisational goals and objectives. 3. Maintenance of sound human and industrial relations. 4. Formulation and circulation of sound organisational policies defining authority, responsibility and accountability in unambiguous terms. Evolution and Development of Human Resources Management Human Resources Management involves all management decisions and practices that directly affect or influence people or human resources, who work for the organisation. In recent years, increased attention has been devoted to how organisations manage human resources. This increased attention comes from the realisation that an organisation's employees enable an organisation to achieve its goals, and the management of these human resources is critical to the success of the organisation. The term "world class" or ranking among the foremost in the world, is used frequently as the aspirations of organisations. In the context of HRM, world class is indicated by an HR group with a shared vision as to its constituents and how best to serve them. Excellence in HRM is characterised by a service orientation and a willingness to be in partnership with constituents. Specific earmarks of world class HRM include: having an HR vision oriented to strategic needs of the organisation. having a philosophy and values consistent with those of the organisations. being seen as a business unit within the firm and operating the same way as other units - having customers and quality management etc. being organised in a way that brings maximum service to the customer and maximum motivation to the HR staff. having the best HR products available for the customers. championing HR programmes that fulfil the agenda of HR group and the customer. having an HR vision that is actively shared by the entire group. being a proactive and not a reactive group. being involved in key business issue discussions. being seen as successfully treating a great place to work.

The number of activities involved in HRM is potentially large, depending on the size of the organisation and its needs. The utilisation of people, in a rudimentary form, can be traced to ancient times. Efforts to use talents, even though informal in nature, were undertaken whenever people came together in a community. The change has been that during the course of the past century efforts to best manage humus resources have become more formal and specialised.

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The history of HRM can be characterised as moving through our broad phases: the craft system scientific management the human relations approach the current organisational science - human-resource approach. The Craft System: From the earliest times in Egypt and Babylon, training in craft skills was organised to maintain an adequate supply of craft workers. By 13"' century craft training became popular in Western Europe. Craft guilds supervised quality and methods of production and regulated conditions of employment for each occupation. The craft guilds were controlled by master crafts worker, and the recruit entered after a period of training as an apprentice. The crafts system was best suited to domestic industry, the master operated in his own premises with his assistants residing and working in the same house. Scientific Management: The Industrial Revolution and mass production emerged in the nineteenth and early twentieth centuries and led to the deterioration of the craft guilds. The development of mass production transformed the organisation of work in two important ways. First, tasks were subdivided in to very simple parts which could he performed by unskilled workers. Second, manufacturing grew to such an extent that a large hierarchy of supervisors and managers became necessary. Along with mass production came the assembly line and a scientific approach to an analysis of work in terms of its constituent parts. The basis of scientific management is that there is one best way to do a job. The best way will be the most efficient and therefore the fastest and least expensive. The founder of this new field of scientific management was an American mechanical engineer, Frederick W. Taylor (1856 - 1915). Two of Taylor's contemporaries, Frank Gilbreth (1868 - 1924) and his wife Lillian Moeller Gilbreth (1878 - 1972), joined in becoming the proponents of scientific management or industrial engineering. 11

_ Edwin A. Locke, The Ideas of Frederick W. Taylor: An Evaluation. Academy of Management Review, January 1982, pp.14 - 24. In the decade after 1910, the principles of scientific management were applied on a wholesale basis in the United States. Taylor and his disciples assumed that workers wanted to be used efficiently and were motivated by money. This philosophy proved to be incorrect because it ignored the feelings and actual motivations. Workers were left dissatisfied with their work. Union opposition grew as union leaders condemned Taylorism for depriving workers of a voice in the conditions and functions of their work.

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One result was the emergence of welfare secretaries as organisational employees to oversee programmes for the welfare of employees. This programme included recreational facilities, employee assistance programmes and medical programmes. The welfare secretary position was the beginning of the professional personnel (now human resource) function. Human Relations: The first important discovery in the social context of mass production resulted from the famous experiments undertaken by U.S. social scientists Elton Mayo (1840 - 1949) and Fritz Roethlisberger (1898 - 1974) between 1924 and 1932 at Western Electric's Hawthorne plant in Chicago. Mayo and his colleagues sought to study the effects that changes in illumination would have on productivity. The investigators chose two groups of employees working under similar conditions. The level of illumination was varied for the test group but kept constant for the control group. To Mayo's surprise, the output of both groups rose. Even when the researchers told the workers in one group that the light was going to be changed but then did not change it, the workers expressed satisfaction and productivity continued to increase. Mayo saw that the significant variable was not physical but psychological. The reason for the increase in productivity was the workers' attitude towards their jobs and Western Electric. Because their co-operation had been requested, the workers now felt themselves part of an important group whose help and advice were being sought by the company.2 The discovery of the Hawthorne effect led to further research on the social factors associated with work. Results of these studies led to the human relations movement with its emphasis on the fact that employees need to be understood in order to be satisfied and productive. However, the idea that good human relations in and of2

- Fritz J. Roethlisberger and William J. Dickenson, Management and the Worker (Cambridge, Mass.): Havard University Press, 1939. themselves will increase productively failed to be consistently supported, and many of the movement's idea were abandoned. Organisational Science: Following the realisation of the limitations of the human relations approach, academic researchers from various disciplines, such as psychology, political science, economics and sociology, began studying organisations. The organisational science approach focuses more on the total organisation and less on the individual. HRM, as we currently know, grew out of organisational science trend and combined learning from the previous movements with current research in the behavioural science. QUESTIONS FOR DISCUSSION

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1.

Describe, in brief, the nature and scope for personnel function in an organisation. What are the indicators of its working in an organisation?

2. Differentiate the functions of personnel management and human resources management. 3. Identify and discuss, in detail, the managerial and operative functions of personnel management. 4. Personnel management is a basic management pertaining to all levels and types of management. Discuss. 5. The objective of personnel management in an organisation is to obtain maximum individual development, desirable working relationship between employers and employees and effective utilisation of human resources. Elucidate. 6. Visit a(1) a manufacturing organisation (2) a service organisation- like a bank or a hospital (3) a small scale enterprise7.

Examine how personnel activities are carried out. Suggest at least three areas where the personnel activities can be improved.

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Module 2.Integrated Strategic Planning & Human Resource Planning: An organisation would not build a new plant, inaugurate it and then begin to worry about how to staff the facility. A firm cannot hire several hundred engineers and get them join the organisation overnight. Nor can management talent can be developed in just a few weeks. Foresight is necessary to ensure that appropriate number of people will be available for an organisation's future plans. Also in a declining economy, planning ahead is critical to prevent over staffing and the subsequent layoffs and retrenchments. Human Resource Planning is concerned with the flow of people into, through and out of an organisation. HR planning involves forecasting the need for labour and the supply of labour, then planning the programmes necessary to ensure that the organisation will have the right mix of employees and skills when and where they are needed. Strategic Human Resource Planning: The above description of HR planning takes the organisational plans and goals as given, and then commences the planning processes needed for carrying out those plans. In most organisations, HR planning (if it is undertaken at all) follows this traditional approach and still is called manpower planning. However, more recent concepts of strategic human resource planning emphasise a proactive role for HR function in formulating strategic organisational plans, as well as providing integrated programmes to ensure effective implementation of those plans.3 Many organisations that take on some human resource forecasting do not have a system for strategic human resource planning. There is some evidence that a firm's environment may affect the degree to which HR planning activities are integrated with strategic planning. Organisations that exists in unstable environments, face stiff competition, and have experienced staffing difficulties are more likely to involve HR planners in corporate strategic planning process. Involvement also seems to be greater when the top HR person reports directly to the CEO, has past line experience to provide credibility and a broad view of the business, and is backed up by an excellent human resource information system (HRIS) that produces the type of information needed in the strategic planning process.43

- Randall S. Schuler and James W. Walker, "Human Resources Strategy: Focusing on Issues and Actions." 4 - David Ulrick, Strategic and Human Resource planning: Linking Customers and Employees," Human Resource Planning, 1992, Vol. 15, No. 2, pp. 47-62.

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Integration: Strategic integration of HR requires: 1. that a strategic planning process occurs in the organisation. 2. that HR managers play an important role in that process. The strategic planning process should establish, with significant HR input, an identifiable strategic direction for the organisation, along with appropriate goals and objectives. In addition, this planning process should identify a set of organisational cultural principles and values that enhance and contribute to the achievement of strategic goals and objectives. Integration does not mean that HR managers are allowed to provide HR-related information to those making strategic decisions. To achieve full integration, HR managers must have both process control - that is the ability to influence the development and selection of information used in making a decision - as well as decision control, which is the ability to make or strongly influence the decision itself.5 When AT&T Global Business Communications Systems (GBCS) began its transformation from traditional to strategic HR, this process was part of an overall realignment of the organisation's business strategy. 6 A period of declining sales and low employee morale had required a major rethinking of the organisation's direction. In 1991, Jerre Stead became president and went about developing a new set of strategic business principles for the organisation. The principles that resulted from this process were: Make people a key priority. Win customers for life. Use total quality management approach to run the business. Profitably grow by being the leader in customer-led applications of technology. Rapidly and profitably globalise the business. Be the best value supplier. These principles provided overall directions for the business and focused the nature of daily operations. Once these general strategic principles had been established, the development of a more strategic and integrated HR function became possible. The process of integrating HR in to the strategic decision making process can occur through a variety of actions.5

- J. Thibault and L. Walker, Procedural Justice: A psychological Analysis and "A Theory of Procedure," California Law review, Vol. 66, 1978, pp 541 - 566. 6 - Information about AT&T's Global Business Communications Systems obtained from an article by Pelvel, et al., "AT&T Global Business Communications."

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For example, Australian Global Insurance (AGI) began the process of HR integration by changing hierarchical position of some of the senior HR manager so that it was equivalent to that of a Chief General Manager. This automatically made the top HR person a member of the senior executive committee of AGI. Once in this committee, the top HR person was in a position to make sure that HR issues were incorporated in to the strategic decisionmaking process.7 Human Resource Planning at different levels: Different organisations make Human Resources Planning at different levels to suit their own purposes, of which, national, industry, unit departmental, job and aggregate level are important. a. National level: Usually Government plans for human resources requirement at the national level i.e. it forecasts the requirement and supply of human resources for the entire nation. b. Industry level: Man power requirements of a particular industry like steel, textiles, cement are forecast taking in to account the output / operational level of that particular industry. c. Unit level: This will cover the estimated requirement of human resource of an organisation or a firm based on its corporate business plans. d. Departmental level: This will address itself to the requirement of a particular department in a firm. e. Job level or aggregate level: In designing a human resources planning system, there are several choices regarding whom to plan for. One choice is to plan for the aggregate level, for jobs or job families. This type of planning is typically used for jobs with multiple incumbents and for jobs at or below the middle management level. An organisation may forecast that 35 electrical engineers will be needed at Mumbai development laboratory or that a total of 540 unskilled assemblers will be needed in the whole organisation. The focus on the number of persons needed for a particular job, not on specific individuals who will fill the vacancies. Many large organisations plan for each job, but this may not always be necessary. The alternative is to plan for only those jobs that logic or experiences indicate are problematic. For instance, a large manufacturer may need to plan carefully for scientists and engineers if there is a chronic shortage of these professionals. But the manufacturer may find that it does not need to engage in long-range planning for messengers or assembly personnel if they can be hired and trained quickly when demand increases.7

- Peter Howes and Pat Fley, "Strategic Human Resource Management: An Australian Case study," Human Resource Planning, 1993 Vol. 16, No.3, p. 64. In addition to aggregate planning - or instead of it - many organisations plan at the individual level. For important jobs, particularly upper - management positions, these organisations identify specific employees who are likely successors when a position becomes vacant due to promotion or retirement. A succession plan for a top managerial position might identify one to three possible replacements and specify the additional training each needs to become fully qualified for that position at sonic point in the future.

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Process, Control and Review mechanism of Human Resource Planning Process of Human Resource Planning: The process of Human Planning essentially consists of the following steps: Analysing Organisational plans. Demand Forecasting. Supply Forecasting. Estimating the net human resource requirements. If the net is surplus, plan for redeployment, retrenchment and lay-off. If the net is deficit. Estimating the future supply of human resources from various sources. Planning for recruitment, development and internal mobility if future supply is more than or equal to net human resource requirement. Planning for modification or alteration of the organisational plan if future supply will be inadequate to meet the future net requirements. The above steps are depicted in figure below. The same order may not necessarily be followed in the actual planning processes the steps are interdependent many times. In some cases any two steps may also be processed simultaneously. In some other cases some steps may not be needed.Human Resources Planning Model Analysing Organisational Objectives Plans and Programmes Adjust or Modify the Organisational Plans Present Programmes Demand Forecast Resource Requirements Skillwise, Knowledge wise etc. Supply Forecast Present Inventory of Human Resources(+) Additions (-) Losses Skillwise Control and Review Mechanisms Net Human Resources Requirements for future skill Knowledge, Values etc.. Forecast the future supply of Human Resources in all sources if supply is inadequate

Surplus of Future Available Human Resources within the Organisation

Shortage of Future Available Human Resources within the Organisation

Redeployment

Retrenchment / Redundancy

Employment

Training Deployment

Internal Mobility

[P.V. Subba Rao: Essentials of Human Resources Management & Industrial Relations.]

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The process has gained importance in India with the increase in the size of business enterprises, complex production technology and the adoption of professional management techniques. It may be rightly regarded as a multi-step process, including various issues such as: Deciding goals or objectives. Estimating future organisational structure and manpower requirements. Auditing human resources Planning job requirements and job descriptions and Developing human resource plan. Objectives of Human Resources Planning: Human resources planning fulfils individual, organisational and national goals, but the ultimate mission or purpose is to relate future human resources to future enterprise needs so as to maximise the future return on investment in human resources. In effect, the main purpose is one of matching or fitting employee abilities to enterprise requirements For example, the short term objective may be to hire 25 persons from Scheduled Tribes or Backward Class for purposes of training. The long range objective may be to start a new industry, to expand the market, to produce a new product, to develop its own sales force rather than depend on distributors, or to have minority group members eventually in position of middle and upper management cadres. Estimating the Future Organisational Structure of Forecasting the Manpower Requirements: The management must estimate the structure of the organisation at a given point of time. For this estimate, the number and type of employees needed have to be determined. Many environmental factors affect this determination. They include business forecasts, expansion and growth, design and structural changes, management philosophy, govt .policy, product and human skills mix, and competition. Forecasting provides the basic premises on which the manpower planning is built. Forecasting is necessary for various reasons, such as: a. The eventualities and contingencies of general economic business cycles (such as inflation, wages, prices, costs, and raw material supplies) have an influence on the short-range and long-run plans of all organisations. b. An expansion following enlargement and growth in business involves the use of additional machinery and personnel and a reallocation of facilities, all of which call for advance planning of human resources. c. Changes in management philosophies and leadership styles.

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d. The use of mechanical technology (such as the introduction of automatic controls, or mechanisation of materials handling functions) necessitates changes in skills of workers as well as a change in the number of employees needed. e. Very often, changes in the quantity or quality of products or services require a change in the Organisation structure. Plans have to be made for this as well. After estimating what the future organisation structure should be, the next step is to draw up the requirements of human resources, both for the existing departments and for new vacancies. For this purpose, a forecast of labour force is needed, and requisitions should be obtained from different departments i.e. forecast has to be made in returns of functional category. The members needed, and the levels at which they are required. Vacancies, occurring in any department, should be notified in writing by different department heads to the personnel dept., stating clearly the number of vacancies to be filled, job or category-wise types of personnel needed, their technical qualifications and experience, and the reasons for requisition (i.e. whether for replacement or addition), a statement of duties, types of jobs, pay scales, age, and previous experience required should also be made.) Requisitions should be based on accurate job specifications by first line supervisors. They should as far as possible be clear-cut about the exact demands of a job. In determining the requirements of human resources, the expected losses which are likely to occur through labour turnover quits, retirements, death, transfers, promotions, demotions, dismissals, disability, resignations, lay-off, and other separations -- should be taken into account. Changes in the human quality resulting from experience gained in the jobs during the period and the training achieved also need to be considered. The addition of new lines of production and new projects also influence the demand estimates of human resources. The basic fact to remember is that the human resources in an organisation constantly changes in terms of its present and future size. Additional human resources are gained through new employment of personnel promotions, through transfers and demotions: but personnel is lost through voluntary quits, death, dismissals, termination and retirements. After making adjustments for wastage, anticipated and exposed losses and separations, the real shortage or surplus may be found out. Demand Forecasting: Demand forecasting refers to the process estimating the future need of human resources in the context of corporate and functional plans and forecasts of future activity levels of the organisation. Demand for human resources in an organisation should be based on the annual budget and corporate plan, translated in to activity levels of each function and department. In a manufacturing concern, the starting point is the sales forecast and targets. Based on these production plans are prepared, specifying the numbers and types of products to be made over a specified period. Then the number of

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people, skill levels, etc. to accomplish the sales and production targets are estimated. The human resource requirements for a given level of operations vary in the same organisation over different points of time or among organisations depending upon the production technologies, processes, make or buy decisions, etc. The plans refer to expected changes in production or manpower levels arising from changes in working methods or procedures, automation or mechanisation. These can be mentioned as a crude percentage increase in productivity which could be used to adjust the required man hours for a given level of output. Job Analysis and work study provide the major inputs for demand forecasting. Job Analysis: Before carrying out the human resource planning exercise, management should decide what is to be performed and how. The several tasks that are required to be carried out will have to be divided and allocated into manageable work units called jobs. Assigning tasks to jobs is commonly known as job design. The human resource requirements for a given volume of operations in an organisation depend upon the content of the jobs and the behaviour pattern and operation of control systems in an organisation. Where multi-skilling is introduced, as in fabrication, idle time in each of the operations is eliminated so that with less number of people more output could be obtained. Work Study: Work study techniques are appropriate for those jobs where it is possible to measure work, set standard norms and calculate the number of persons required for various jobs with reference to these norms and planned output.

A simplified example is given below: Planned output for the year 10,000 units Standard hours per unit 3 hours Planned hours required 30,000 hours Productive hours per person per year 1,500 hours (Allowing for absenteeism, idle time, etc.) Number of workers required 20 workers If the span of control is 10, two supervisors will be required to supervise the work of 20 workers. Since work study techniques are more appropriate for direct production workers than for any other category of employees, usually these are used in conjunction with other techniques. There are three methods for demand forecasting: a. Managerial judgement b. Simple statistical models

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c. d. e. f.

Mathematical models Probabilistic models Regression models Optimisation models

a. Managerial Judgement: Under this method, experienced managers prepare guidelines for departmental managers. Such guidelines which have the approval of top management, indicate broad assumptions about future activity levels which will affect their departments. Targets are set and desirable changes in flow of work and job design are also indicated where considered necessary. Taking a cue from these, the departmental managers prepare forecasts with the help from personnel, O&M, or work study specialists. Meanwhile, the personnel department may also, in conjunction with other departments in the organisation, prepare a forecast of the company-wide demand for human resources. Later the two sets could be reconciled and reviewed by a committee consisting of functional heads to arrive at a final forecast. The subjective element of this method is its weakness as also its strength. The weakness can be overcome to a certain extent by checking subjective assumptions with data from O & M, work study exercises, etc. The value of the information about intangible factors like informal group norms and their effects on estimates and output cannot be measures so well by employing any other method. b. Simple Statistical Models: The most common method is the ratio trend analysis. In its simplest form, it refers to the ratios between say, the number of direct and indirect workers or the number of workers and supervisors and so on. Future ratios are forecast based on time series extrapolation, after making some allowances for the changes that are likely to occur in future. Then the number of employees required for different groups / skill levels etc. are calculated. For use of mathematical models for Human Resources Planning, time series statistical data is necessary. Besides, it becomes necessary to identify and describe a number of variables affecting human resource requirements in a mathematical formula. These variables could be investment, sales, etc. The process is complex and suitable only to large organisations. c. Mathematical Models: A model is a standard or a representation, generally in miniature, to show the structure or serve as a copy etc. Models may be descriptive, representing past or present patterns or they may be normative, representing possible future patterns. Descriptive models help understanding complex data on personnel flow / movements. This is attempted through mathematical techniques that present a simplified and abstract view of complex and often contradictory empirical data on personnel flows, surpluses and shortages relative to needs. Future needs may be forecast through application of past patterns in projections by use of probabilities and correlation as also by making appropriate assumptions. The normative models of proper or adequate staffing are usually influenced by such subjective elements as experience, assumptions and philosophy guiding managerial decision making. Models are used mainly to

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generate a series of alternative scenarios so that managers may select the forecast they consider most apt for their needs. Based on certain assumptions covering possible changes in the future, models may be developed to show how an organisation looks like in terms of its staffing pattern. The modelling techniques which seek to project organisation change include succession analysis, probabilistic analysis (referred to also as Markov analysis of personnel flows based on probability theory) and regression analysis. Simulations analysis is another variant of modelling change in organisation where alternative patterns are generated by modifying the assumptions and variables. d. Probabilistic Models: In succession planning the unit of analysis is the data concerning the individual. In probabilistic model the unit of analysis is data concerning groups of employees, classified according to organisational units, job categories, locations, levels, grades etc. Here the probability of employees moving from one classification to another or out of the organisation is considered. A matrix or table of personnel flows is determined at specified intervals of future time. While personnel policies, practices and past trends concerning promotions, transfers, separations, etc. provide a useful basis in the forecast exercise, the projections are influenced more by the assumptions that managers make. The most popular technique in this category is called the Markov analysis. Here simple arithmetical calculations are made to indicate possible movements from job category A to B to C and so on from one point of time to another. Such calculations are repeated for all jobs / categories / levels for successive periods. The sequences of transitions shown in the matrix are called Markov Chains. The process involves certain mathematical properties such as the strict independence of the job categories, constant transition probabilities and a number of forecasting cycles. Considering the uncertainties in everchanging business context and the inevitable influence of subjective elements in the decision making processes, the forecasts are to be treated as merely probabilistic. Computerised simulation models based on stochastic processes have also been developed. Among them, the Minnesota Manpower Management Simulation model which seeks to represent the role of important personnel decisions, the consequences of personnel performance measures and accomplishment of corporate goals merit special mention. The implications of normal attrition and personnel policies concerning internal promotions, transfers, career development etc. would also be gauged by building these variables in to the models.8 e. Regression Models: Regression analysis is used to measure the relationship between one or more independent variables to explain a dependent variable. In HRP regression analysis can be used to correlate personnel requirements with output, revenue, etc. as in trend-ratio and time series analyses, the analysis is based more on historical patterns. The real value of regression analysis in HRP is in generating alternatives scenarios in personnel needs. It is important to bear in mind hat the relationships are not always linear and the purpose of the analysis is not to present the management with precise quantitative forecasts.

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f. Optimisation Models: Some models seek to present optimal or the best or minimal costs, minimal Mathematical techniques such as linear, non linear and dynamic programming are among the optimisation modes used in HRP also. Goal programming which is refinement of linear programme, can also be used in HRP if the purpose is to examine the discrepancies between forecasted results and identified targets and suggest optimum goals that are attainable in given circumstances and time perspective.8

- Walker J. W. 1980, Human Resources Planning, McGraw-Hill, New York, pp 99 - 122. Supply Forecasting: Every organisation will have two major sources of supply of human resources: internal and external. In unionised firms, agreements up to certain level jobs may determine the ratio of internal and external sources of supply. Also as shown below, manpower flows in and out of an organisation due to a variety of reasons. Policies affecting each of these aspects need to be reviewed regularly to assess their possible effects on human resource planning. MANPOWER FLOWS IN AN ORGANISATIONPromotions Out

Transfers in

Recruits in

Transfers Out Retirement Voluntary Retirement Discharge / Dismissal Terminations Resignations Redundancy / Retrenchment

Promotions in

Internal Sources: Proper HRP and information systems enable the organisation to know the profile of the employee in terms of age, sex, education, training, experience, job level, performance and potential. Manpower requirements arise out of organisational growth or diversification or because of movement of the employees on account of transfer, promotion, job rotation, voluntary retirement, resignation, retirement, dismissal, discharge or death. In either case, as and when the vacancies arise, organisations can match the skill and level

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requirements with the profile of the employees and meet the requirements. While some of the internal changes and external supply could be predicted (such as growth opportunities, transfer and promotions, retirements etc.), others are not so easy to predict. But past experience and historical data may be of some help. The companies which have systematised personnel records and information systems and which have well-established career and succession plans find it easier to project internal sources of supply relatively accurately. External Sources: When the company grows rapidly, diversifies into newer areas of operations or when it is not able to find the people internally to fill the vacancies, it has to resort to outside recruitment. To the extent a firm is able to anticipate its outside recruitment needs and scans the possible sources of supply with a feel of the labour market, its problems in recruiting the right number with appropriate skills at the required time would become easier. Determining Human Resource Requirement: Human resource requirements are determined by relating the supply to the demand forecasts and identifying deficits or surpluses of human resources that will exist in future. The table (next page) shows how demand and supply forecasts can be scheduled over a period of five years. The reconciliation of demand and supply forecasts gives us the number of people to be recruited or made redundant as the case may be. This forms the basis of the action programmes in HRP. Action Planning: The human resource requirements identified along the procedure mentioned above has to be considered within a strategic framework. Organisations operate in a changing environment, so manpower structures also do not remain static. Review of activities and roles of persons at different levels and O & M studies will provide opportunity to review and modify assumptions made. DETERMINING HUMAN RESOURCES REQUIREMENTS 1 2 D E M A N D 1. Numbers required at the beginning of the year 2. Changes to requirements forecast during the year 3. Total requirements at the end of year (1 + 2) 4. Numbers available at the Beginning of year 5. Accession from transfers and promotions in 6. Separations through: a) retirements Y E A R S 3 4 5

S U P

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P L Y

R E Q U I 10. Additional numbers required R during the year E (8 + 9) MENTS. --------------------------------------------------------------------------------------------Once the human resources requirements are studied and analysed vis--vis strategic options, an action plan can be drawn up. a. Recruitment Plan: Number and kind of people required and when they are required Identify any problem in recruiting the right people and how to solve them The recruitment schedules b. The Redeployment Plan: for transferring or retraining existing employees for new jobs c. The Redundancy Plan: who is redundant, where and when? the plans for retraining, if possible and programmes for voluntary separation, retrenchment, lay-off, etc. d. The Training Plan : the number of employees required and the programme for recruiting them or training them number of exiting staff who need training or retraining and the training programme e. The Productivity Plan : work simplification through O & M studies mechanisation and automation productivity bargaining ( with union ) incentives job redesign training and refresher training f. The Retention Plan: To reduce wastage by review of reasons for employee turnover. Information can be obtained through exit interviews and necessary changes initiated in: Compensation policies Induction and training Changes in work requirement Improvement in working conditions In the above areas it is essential to undertake cost benefit analysis. Control and Review Mechanism:

b) wastage c) separations and promotions out d) total losses 7. Total available at the end of year (4+5+6) 8. Deficit OR Surplus: (3 - 7) 9. Losses of those recruited during the year

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While assessing future requirements, the estimates also depend upon the human resource policy in the organisation. Corporate strategy can influence manpower strategy and vice versa. We therefore consider three approaches.a.

Zero Budgeting: is an approach in which one forces unit / division managers to justify their total operation from zero. The objective is to encourage managers to seriously think about their current activities. However, with the restrictions by law and pressures from the unions, this approach may not be practical, especially for established organisations. Ideal Approach: new units can think of Ideal approach. Any decision on subcontracting, off-loading functions like maintenance, production technology, etc. may depend on what is considered ideal for the organisation. But a note of caution, what might be considered ideal by the management (from the short term point of view) may attract ethical considerations. Realistic Approach: A firm operating a three year planning cycle may plan manpower in sub-units or divisions in such a way that it is easy to monitor and hold managers responsible. Organisations which plan to supplement human resource plans with other business parameters and manpower ratios ( turnover per employee, capital employed per employee etc.) should note that they might have to make adjustments in the future for variations. JOB ANALYSIS:

b.

c.

It was after the Industrial Revolution around 1900 that approaches to scientific analysis of jobs were developed by Frederick W. Taylor and Gilbert, which have been widely used since then. Job analysis involves formal study of jobs. It provides information regarding the requirements of a job in terms of time for completion, necessary activities and the expected performance standards on the one hand and also the specific technical and behavioural knowledge, skill and attitudes needed in a person to meet those job requirements. Uses of Job Analysis: Job analysis through clearly defined and written down job description and job specification, provides the basic information for all personnel functions. USES OF JOB ANALYSIS Manpower planning Future job requirement Skill requirement JOB ANALYSIS Job description Factual Statt Job specification Statement of

Organisation structure Responsibility Authority Accountability Labour relation Deviation from agreed job standards

Recruitment / Selection, Placement Matching job requirement & skill Orientation What is expected?

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of tasks, duties & responsibilitie s of a job. Counselling Vocational guidance Rehabilitation Counselling Engineering design & methods of improvement Job design and matching of social and psychological requirements of employees technical system requirements Job evaluation and rating classification of jobs Guiding decisions on salary structures

human attributes. Abilities required to perform job. Performance Appraisal Performance Standards Performance review Career path planning Future prospects for movement along career paths

Training and development updating of skills changing job requirements

[Courtesy: Mr .S. V. Venkataratnam, Personnel Management] It provides a fuller understanding of the jobs and personal attributes needed and thus helps in taking job-related decisions. Hence it is needed to be carried out periodically. In Organisation Structure and Design job analysis helps in classifying job requirements and interrelationships among jobs. Decisions on hierarchical positions and functional integration as also integration is possible on the basis of information made available through job analysis. In Manpower Planning, it helps by providing useful information for forecasting and in planning for transfers and promotions. In Recruitment, it provides information regarding the job in question. In Selection process, useful information regarding what the prospective candidate is expected to do on the job is available.

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In Placement, it helps to make correct decision regarding placing the right man at the right job. In Orientation, a clear idea of what is required on a job function is provided by Job Analysis. In Performance Appraisal, it helps in the understanding of critical parts of a job and hence a critical evaluation is made possible. In Career Path Planning, job analysis provides a clear idea of the various opportunities in terms of career path. In Training & Development, Job Analysis provides useful information for identifying training needs, design and evaluation of the effectiveness of training programmes. In Job Evaluation, Job Analysis is essential for ranking jobs in respect of their relative worth. Job Design - Information about employee requirements and individual capabilities obtained from Job Analysis form the basic data on which decisions about job design / redesign can be taken. Steps in Job Analysis Process:1.

Organisation Analysis: One must obtain an overall view of the various jobs in the firm with a view to examining the interrelationships between jobs and the organisational objectives and the contribution of various jobs to the organisations effectiveness and efficiency. The organisation chart is an important source for this data. Decision regarding the usage of Job Analysis information: Depending on organisation, it is desirable to decide before hand, the possible uses the organisation would like to make on the information that might be made available from Job Analysis information. Selection of Jobs for Analysis: It is desirable to select a representative sample of jobs for Job Analysis, to save cost and time. Collection of Data: Data is to be collected on the characteristics of the job, the personal attributes and behaviour to do the job effectively. Care also should be taken to employ only reliable and acceptable - to the specific organisational environment - techniques from among the various techniques available. Preparation of Job Description: The data collected is used in preparing a job description for the job highlighting major tasks, duties and responsibilities. Preparation of Job Specification: Also, the data collected is used to prepare job specification for a job, highlighting the personal requirements like education, training, aptitude, experience, attitude etc.

2.

3.

4.

5.

6.

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Job Analysis: Methods of Collecting Data: There are many sources and methods for collection of data. The organisation chart provides a basic understanding of the relationship between departments and units, between line and staff functions, channels of communication and information flow. The chart will give out the formal arrangements in the organisation, but not about the informal arrangements that do develop when people work together. Another source of information is the process chart or work flow chart specifying the interconnections of various jobs in specific terms, as it spells out the flow of activities pertaining to a job from the input to the output stage. These and other sources need to be consulted before beginning the use of other job analysis methods. A questionnaire, called the Job Analysis Information Format (JAIF) 9 can also be used. The JAIF can provide basic information for use of any job analysis method. Job incumbents are asked to complete the JAIF and on the information obtained, decision regarding the use of various methods of data collection and further investigation can be taken. The JAIF has 17 items covering purposes of the job, supervisory duties, work output, duties, educational qualifications, experience, skill, equipment, physical and emotional demands, environmental conditions, health and safety requirements of the job. The commonly used methods of data collection are discussed below: Job Performance: This involves the analyst actually doing the job under consideration to get first hand information about actual tasks, physical, environmental, and social demands of the job. This method can be employed where skill requirements are not high and therefore jobs can be learned quickly and easily. This method is not useful for jobs requiring extensive training. Observation: The analyst observes, without getting directly involved in the job, the worker or a group of workers during their actual performance in job. Observations are made on tasks, activities, the way the different activities are performed. This method is useful for jobs that involve manual, standardised and observation is difficult. The workers are interviewed to collect data on various requirements of the job. It is advisable to use a standard questionnaire. Data thus collected from a number of workers can be analysed to find out the common and important aspects of the job.[

Interview: This is a widely used method particularly with those jobs that cannot be observed or actual performance analysed by the analyst. The workers are therefore, interviewed to collect data on various requirements of the job. It is necessary to use a standard format. Standardised interview schedule with job related questions need to be prepared carefully.

179

- Henderson, R/L., 1979. Compensation Management, Reston: Virginia, pp 16 - 152. One major problem with the interviewing is that incorrect information may be given. If the purpose of the interview is not explained to the worker, he may give wrong information to protect his interest. Also establishing rapport between the worker and the interviewer is critical. Critical Incidents: Another way to obtain data on job requirements is to differentiate between effective and ineffective behaviours of the workers in their jobs. The workers narrate, from their past, their experiences in particular job(s). The incidents are collected and analysed. The result of the analysis will indicate a clear picture of job requirements. However, the method is time consuming and requires special expertise on the part of the analyser to sieve the data collected. Questionnaire: Structured questionnaire are developed on the different aspects of the job and the behavioural patterns (co-ordinating, mental processes etc.). The questionnaires are administered to employees and they are asked to respond. The data obtained is analysed and a profile of job profile is constructed. Some of the standard questionnaires are the Comprehensive Occupational Data Analysis Programmes (CODAP), Position Analysis Questionnaire (PAQ) and Functional Job Analysis (FJA). The Position Analysis Questionnaire (PAQ)* is a behavioural oriented job analysis questionnaire. It has 194 attributes that may be broadly classified in to: 1. Information Input 2. Mental Process 3. Work output 4. Relationship with others 5. Job Context 6.Other job characteristics Each of items above is rated in terms of its importance to the job and analysed under a 5 point scale: DNA -- Does not apply 1. -- Very minor 2. -- Low 3. -- Average 4. -- High 5. -- Extreme For analysing managerial jobs also, the following two questionnaires are available.

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Management Position Description Questionnaire (MPDQ) 10: It has 208 behavioural instruments for comparing, classifying and evaluating executive positions in terms of their job content. The latest version of the MPDQ is classified in to 10 parts: a. General information b. Decision making c. Planning and organising d. Supervising & controlling e. Consulting & innovating f. Contact g. Monitoring business indicators h. Overall ratings i. Know-how j. Organisation chart. Supervisory Task Description Questionnaire (STDQ) 11: This questionnaire has 100 instruments for the front-line supervisors in seven categories: Working with subordinates Organising work of subordinates Work Planning schedule Maintaining efficient quality and production Maintaining safe and clean work areas Maintaining equipment and machinery Compiling records and reports Job Design: The purpose of carrying out job analysis is to develop appropriate design for improved efficiency and productivity. Job analysis provides details of the tasks and activities to be carried out on a particular job as also the human characteristics required of inter-relatedness of the activities, combining them in manageable work units, using input-output analysis and matching them with required human skills and motivation in such way as to maximise productivity and human satisfaction.

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- Rornow, W. W. and P. R. Pinto, 1976. The Development of a Managerial Job Taxonomy: A System for Describing, Classifying and Evaluating Executive Positions, Journal of Applied Psychology, vol. 61, pp. 410 - 418. 11 - Dowell B. E. and Wexley K. N., 1978. Development of a Work Behaviour Taxonomy for First Line Supervisors, Journal of Applied Psychology, Vol. 63, pp. 563 - 572. Classical Approach: It was in 1900s that Frederick W. Taylor developed the Principles of Scientific Management, which forms the basis for designing jobs in

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organisations. The emphasis of scientific management is on planning, standardisation and improving quality of human effort at the operative level so as to maximise output with minimum input. The principles on which job design is based can be explained as below: Task Fragmentation: To achieve technical efficiency, a task is to be broken down to smaller operations. Technology Optimisation: On the basis of scientific analysis of the job it is advisable to develop the best way to do the job. The best method can be changed without any change in efficiency. Standardisation of the Method: The standardisation is achieved through time and motion studies. Specialisation: Workers are to be selected to perform specific tasks leading to specialisation. Training: Selected workers be trained efficiently for the task. Training costs and time are reduced due to fragmentation of tasks in to simple operations requiring low skill-level. Individual Responsibility: Individual worker is made responsible for a single operation (fragmented task). Economic Incentive: After assigning responsibility of specialised and standardised operations, incentives as reward for performance is developed. The design of job based on the above principles has its impact on organisational efficiency, human motivation etc:1.

Narrow Specialisation: Workers will perform only one or two operations or duties. Full worker potential may not be exploited. Routine Job Functions: The same operation is or duty is repeated again and again, resulting in boredom and dissatisfaction. Reduction in Work Cycle: The intervals between repetitions of operations becomes less and less, leading to monotony and boredom. Techno-Economic Criteria of Evaluation: As the design is based on technical efficiency alone and not on human satisfaction and well being.

2.

3.

4.

5. The rational and task centred approach to job design will have serious impact as the social and personal needs of human beings in work are not taken in to

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account. Adam Smith notes The man whose whole life is spent in performing a few simple operations becomes as stupid and ignorant as it is possible for a human creature to become. 12 Jobs designed on classical principles to maximise efficiency and to minimise costs will result in very high hidden psychological costs, particularly with the present generation of workers with high awareness and a better education and high aspirations, leading to them becoming frustrated and alienated. This alienation and frustration will translate itself into, in job context, loss of interest, lack of attention, absenteeism, resistance to change and even sabotage. At the individual level, it might cause illness, depression, maladjustment in family and social life. Thus the psychological costs of monotonous, non-challenging jobs well exceed their economic benefits. Job Description: The data collected for job analysis provide the basis for preparing job description for each job. This functional description describes what the job entails. Although there is no standard format for a job description, it usually includes: 1. Job Title: --- a title of the job. 2. Job Summary: --- a brief statement of what the job entails. 3. Job Activities: --- a description of the tasks performed, resources used and the extent of supervision given or received. 4. Working Conditions and Physical Environment: --- heat, light, noise level, hazards are described. 5. Social Environment: --- Information on size of work group and interpersonal interactions required to perform on the job.12

-- Smith, Adam. An Inquiry in to the Nature and Causes of the Wealth of Nations (1976) quoted in R. H. Campbell, et al. (Eds), 1976. Oxford University Press: London. Job Specification: The job specification details the attributes of a person in terms of education, training, experience, skills, abilities and aptitude required for performing a particular job, which have been enunciated in Job description. For every job description it is essential to have a job specification so that one can determine what kind of a person is required to perform a particular job. The attributes can be categorised as under: 1. Essential Attributes: abilities, skills, and knowledge. 2. Desirable Attributes: those one must possess. 3. Contra-indicators: attributes that will come in the way of successful performance. To specify minimum human requirements for a job is difficult and it will involve a high degree of subjectivity. Generally organisations enunciate high

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requirements for formal education and training, thereby highly qualified people end up doing routine jobs. Particularly, in India, highly qualified persons are recruited for jobs where their abilities, skills and knowledge are under-utilised, leading to job-dissatisfaction and frustration. Despite these problems, minimum acceptable human requirements require to be specified for various jobs and categories of jobs. The usual format for job specification is given below: 1. Position Title 2. Education / Training 3. Experience 4. Knowledge 5. Abilities 6. Skills 7. Aptitude 8. Desirable attributes 9. Contra-indicators, if any. Recruitment, Selection, Placement and Induction: Recruitment: It refers to the process of bringing together prospective employers and employees. The purpose of recruitment is to prepare an inventory of people who meet the criteria in job specifications so that the organisation may choose those who are found most suitable for the vacant positions. Process of Recruitment: The process begins by specifying the human resource requirements, initiating activities and actions to identify the possible sources from where they can be met, communicating the information about the jobs, terms and conditions and the prospects hey offer and encourage people who meet the requirements to respond to the invitation by applying for the job(s). Then the selection process begins with the initial screening of applications and applicants. Job analysis would have already provided the job specifications i.e. qualities, qualifications, experience and abilities. Human Resource Planning provides the basis to arrive at the numbers, levels, and timing of recruitment. Sources of Recruitment: The requirement can be met from internal or external sources. Internal Sources:

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They include those who are employed in the organisation or those who were in the past employ (but quit voluntarily or due to retrenchment) and would return if the organisation likes to re-employ. The advantage in looking for internal resources is that they provide opportunities for better deployment and utilisation of existing human resources through planned placements and transfers. It will also motivate people through planned promotions and career development when vacancies exist in higher grades. The law provides preferences to retrenched employees when vacancies arise in future. External Sources: Organisations may look for people outside it. Entry level jobs are usually filled by new entrants from outside. Also in the following circumstances organisations may resort to outside sources: a. when suitably qualified people are not available. b. when the organisation feels it necessary to impart new blood for fresh ideas. c. when it is diversifying into new avenues and d. when it is merging with another organisation. Internal Method: This is filling up of vacancies from within through transfers and promotions. Transfer decisions are usually taken by the management and communicated to those concerned. In case of promotions, however, information about vacancies is communicated through internal advertisement or circulation and application are invited from eligible candidates who wish to be considered for the positions. Or the organisation may prepare seniority o seniority-cummerit lists and consider the eligible candidates for internal promotions. Some organisations keep a central pool of persons from which vacancies can be filled for manual jobs. Any person who remains on such rolls for 240 days or more is treated, in the eyes of law, as a permanent employee, and is therefore, entitled to all benefits including Provident Fund, Gratuity and retrenchment compensation under section 25F of the Industrial Disputes Act. Though the system appears to be costly, it has its own benefits, viz. (a) continuous supply of labour is assured (b) work is not affected due to absenteeism (c) there is no problem of fresh induction and (d) it is possible to train people in multi-skills. Methods of Recruitment: The methods of recruitment might include one or more of the following: a. Direct b. Indirect c. Third-party. Direct Method: These include campus interviews and keeping a live register of job seekers. Usually used for jobs requiring technical or professional skills,

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organisations may visit IITs, IIMs and colleges and universities and recruit persons for various jobs. Usually under this method, information about jobs and profile of persons available for jobs is exchanged and preliminary screening done. The short-listed candidates are then subjected to the remainder of the selection process. Some organisations maintain live registers / records of job applicants and refer to them as and when the need arises. Usually in all such cases, preliminary screening is completed by examining the application form filled by the candidate and / or preliminary interviews. Indirect Method: These include advertisement in the print media, radio, T.V., trade, technical and professional magazines, etc. It is advisable to state in the advertisement the responsibilities and requirements along with definite hint about compensation, prospects etc. This method is appropriate where there is plentiful supply of talent which is geographically or otherwise spread out and when the purpose of the organisation is to reach out to a larger group. However, it is not always possible to get key professionals or those with rare skills through this method. Third-party Method: They include reference to Employment Exchange, which is a statutory requirement for the jobs / organisations to which the Employment Exchanges (Compulsory Notification) Act applies. Special Employment Exchanges have been set up in different places for displaced persons, ex-military personnel, physically handicapped, professionals etc. For highly skilled technical jobs University Employment Bureaux and the Council of Scientific and Industrial Research have also been set up. There are many problems in developing such services efficiently and organisations successfully contested such rulings by filing cases in courts when they were asked to select only from among those sponsored by the employment exchanges. Head Hunting services, consultancy firms, professional societies and temporary help agencies are among other sources of third-party recruitment. Traditionally, in India the following methods are used: Casual labour presenting itself at the factory gates on a day-today basis and offering themselves for employment Hiring through labour contractors, maistries etc. Spreading information about jobs through word of mouth including friends and relatives, present employees etc. In recent times, new form of sub-contracting, franchising, home-work and contractual norms of work are emerging. Some of the legal and political restraints limiting the sources of recruitment are mentioned briefly below:

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1. Child Labour (Prohibition and Regulation ) Act, 1986: This Act replaces the Employment of Children Act, 138, and seeks to prohibit the engagement of children below 14 years of age in certain employment and to regulate the conditions of work of children in certain other employment. Penalties for contravening the provisions are fine and imprisonment.2.

The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959: The Act requires all employers to notify vacancies (with certain exemptions) occurring in their establishments to the prescribed employment exchanges before they are filled. The Act covers al establishments in public sector and non-agricultural establishments employing 25 or more workers in the private sector. Employers are also required to furnish quarterly return in respect of their staff strength, vacancies and shortages and a biennial return showing occupational distribution of their employees. While notification of vacancies is compulsory, selection need not be confined only to those who are forwarded by the concerned Employment Exchanges. The Apprentices Act, 1961: The Act seeks to provide for the regulation and control of training apprentices and for matters connected therewith. The Act provides for a machinery to lay down syllabi and prescribe period of training, reciprocal obligations for apprentices and employers etc. The responsibility for engagement of apprentices lies solely with the employer. An apprentice is not a workman. The Contract Labour (Regulation and Abolition) Act, 1970: This Act seeks to regulate the employment of contract labour in certain establishments and to provide for the abolition in certain circumstances. The Act applies to every establishment / contractor employing 20 or more persons. Bonded Labour System (Abolition) Act, 1976: This Act seeks to provide for the abolition of bonded labour system with a view to preventing the economic and physical exploitation of the weaker sections of society. The Inter-state Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979: This Act safeguards the interests of the workmen who are recruited by contractors from one state for service in an establishment situated in another state and to guard against the exploitation of such workmen by the contractors.

3.

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5.

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7. The Factories Act, 1948, the Mines Act, 1952, etc. : Certain legislation, like the Factories Act and the Mines Act prohibit employment of women (in night work, underground work etc.) and children (below 14 years of age) in certain types of jobs.8.

Reservations for Special Groups:

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In pursuance of the constitutional provisions, statutory reservations and relaxed norms have been provided in education and employment to candidates belonging to Scheduled Castes and Scheduled Tribes in central and state services including departmental undertakings, government corporations, local bodies and other quasi - government organisations. Most state governments have issued policy directives extending the reservations to notified backward communities also. Over the years, the concept of reservations in education and employment has been extended to other categories as measures to tackle social problems or to pursue socio-political objectives. Such categories include: physically handicapped and disabled persons, women, ex-servicemen, sportspersons etc.9.

Sons -of -the-Soil: The question of preference to local population in the matter of employment has become more complex toady than ever before. The National Commission on Labour suggested that the solution to the problem has to be sought in terms of the primacy of common citizenship, geographic and economic feasibility of locating industrial units on the one hand and the local aspirants on the other. The Govt. of India has recognised the main elements of the arguments on behalf of the sons of the soil and laid down certain principles in the matter of recruitment to its public sector projects, whose implementation, however, is left to the undertakings themselves. Displaced Persons: Whenever major projects are set up, large tracts of land are acquired for the purpose, displacing several hundred households in each case. Payment of compensation for land was at one time considered a sufficient discharge of obligation towards persons who are dispossessed of land. This alone did not solve the question of earning livelihood.