Basics on HRM

1 a) Define HRM b) Discuss its importance and role c) Briefly discuss the function of a HR Department d) Distinguish between Personnel Management and Human Resources Management

Ans

A Definition of HRMThe first definition of HRM is that it is the process of managing people in organizations in a structured and thorough manner

The second definition of HRM encompasses the management of people in organizations from a macro perspective ie managing people in the form of a collective relationship between management and employees

Management specialists have defined human resource management as below

The Process of analyzing and managing an organizations human resources needs to ensure satisfaction of its strategic objectivesrdquo -Management ndashHellriegel Slocum

ldquoThe policies and practices involved in carrying out the lsquopeoplersquo or human resources aspects of a management position including recruiting screening training and appraisingrdquo -HRM ndashGray Dessler

B The Important Role of HR Human-Resource Management performs 5 key functions1) Hiring2) Compensation amp Benefits3) Evaluation and Management (Appraisals Trainings Work enhancement methodologies)4) Promotions5) Managing Relations (Employee vs Employers vs Departments vs Divisions)The human resource managers are responsible to conduct these activities in an effective legal fair and consistent manner

HR Managers today are focusing attention on the following-a) Policies- HR policies based on trust openness equity and consensusb) Motivation- Create conditions in which people are willing to work with zeal initiative and enthusiasm make people feel like winnersc) Relations- Fair treatment of people and prompt redress of grievances would pave the way for healthy work-place relationsd) Change agent- Prepare workers to accept technological changes by clarifying doubtse) Quality Consciousness- Commitment to quality in all aspects of personnel administration will ensure success

HR is a face value for any organization Right from when the candidate walks for interview inthe organization till he leaves the premises of the organization the way they treat acandidate the way the entire recruitment activity is schedule tells lots about the companyShows HR plays a pivotal role in any organization Ensure that each individual in a companyis properly utilized as per hisher ability to perform hisher duties well to act as a deviladvocate so that problems and issues are resolved immediately To ensure smooth functioningof workflow good working environment etc

The backbone of any successful company is the HR department and without a talented group of people to hire culture andinform employees the company is doomed for failure

C Functions of HR Department

1 Pre-Recruitment Process a Receipt of requirement of manpower from various department heads b Scrutinize them and take approval from concerned authorities if the post is new c Prepare a recruitment budgetd Select the appropriate Recruitment process

2 Recruitment Process a Prepare Advertisements etc for the recruitment b Scrutinize and shortlist the applications received c Send interview call lettersmails as required d Conduct Interviews through panels e Preparation of offer letters as required

3 Joining Formalities a Administrating Joining formalities b Pre Employment Reference checks c Preparation of Appointment Advice and intimating the same to other departments d Preparing and entering new hire paperwork e Co-ordinating to get Employee ID Cards f Handing over the new hire to the concerned HODManager g Preparation of Job Profiles co ordination with HODManagers for new posts

4 Employee Personal File Maintenance a Opening new file and Closing the Resigned employeersquos File b Make sure all Employee files are maintained safely with care c Make sure all personal records are available in the files d Periodic Personal File Auditing

5 Employee Data Base a Keeping Track of Knowledge Management Software b Maintenance of HRIS

6 Confirmation Formalities a Intimating the concerned HODManager about the due dates for confirmation b Conducting Confirmation Appraisals c Co ordinating for Skill Gap Analysis d Co ordinating to set Quality Objectives for each job profile e Ensuring updating of the existing Job Profiles f Processing the Confirmation

7 ISO Compliance a Ensuring all the updating of the ISO documentation and HR Formats b Learning and enforcing Standard Operating Procedures (SOP) c Facing the Internal and External Audits accountable to enforce the correctional actions

8 Statutory Compliance a Handling PF and ESI formalities and co ordinating with other departments b Handling Apprentice Training Submitting Periodic Returns to Board c Submitting other returns to the labor Department as per Shops and establishment Act

9 Training And Development a Conducting Induction Training for new hires b Training Need Analysis based on Skill Gap Analysis Appraisal Feedback and suggestions c Co ordinating External and Internal Training Programs d Maintaining Training Records e Analysis of Training Feedback

10 Performance Appraisal a Prepared the new Appraisal Form b Educated employees about self-appraisal c Provided inputs to HODrsquos for Appraisals d Prepared Appraisal Letters

11 Employee Relation a Having formal and Informal counseling with employees b Prepared Event Calendar of monthly recreation to motivate employees c Handling Corporate Medical Insurance d Processing required letters on employeersquos request

12 Report Generation a Generating and analyzing Employee Attrition Reports Training Evaluation and Manpower Status b Weekly and monthly recruitment reports c Report generation of Pre appraisal Appraisal and Post Appraisals d Salary Details Reports to Accounts Department e Reports as per the HODrsquos request

13 Exit Formalities a Administering Exit paper work including all Statutory requirements b Conducting Exit Interviews c Preparing Exit Interview Summary d Giving post employment reference for relieved employees e Processing File to Accounts Department for final settlement

D Difference between Personnel Management and Human Resources ManagementSome say that there are no basic differences between Human Resource Management and Personnelmanagement These experts say that the two terms ndash HRM and Personnel management ndash have nodifference in their meaning and can be used interchangeably Well there are many expertswho have come up with many differences between the two

Personnel management is regarded to be more administrative in nature Personnel managementbasically deals with the employees their payroll and employment laws On the other handHuman Resources Management deals with the management of the work force and contributes to anorganizationrsquos success

Human Resources Management is spoken about in a much broader sense than Personnel ManagementIt has been said that HRM incorporates and develops personnel management skills It is HumanResources Management that develops a team of employees for an organization

Summary

1 Personnel management deals with employees their payroll and employment laws On the otherhand Human Resources Management deals with the management of the work force and contributesto an organizationrsquos success2 HRM basically deals with developing personnel management skills It is Human ResourcesManagement that develops a team of employees for an organization3 While Personnel management is considered to be reactive Human Resources Management isstated to be proactive4 Personnel management focuses on administrating people or employees On the other hand theprime focus of Human Resources Development is to build a dynamic culture5 Personnel management is independent from an organization On the contrary Human ResourcesManagement forms an integral part of a company or an organization

Personnel Management and HRM A Paradigm ShiftCynics might point to the fact that whatever term we use it is finally ldquoabout managingpeoplerdquo The answer to this would be that the way in which people are managed says a lotabout the approach that the firm is taking For instance traditional manufacturing units hadpersonnel managers whereas the services firms have HR managers While it is tempting to viewPersonnel Management as archaic and HRM as modern we have to recognize the fact that eachserves or served the purpose for which they were instituted Personnel Management waseffective in the ldquosmokestackrdquo era and HRM is effective in the 21st century and thisdefinitely reflects a paradigm shift in the practice of managing people It is clear from theabove paragraphs that HRM denotes a shift in focus and strategy and is in tune with the needsof the modern organization HRM concentrates on the planning monitoring and control aspectsof resources whereas Personnel Management was largely about mediating between the managementand employees

2 ldquoThe role of personnel function is becoming more strategic in naturerdquo Discuss the statement in the context of future of personnel functions

Ans

Strategic HR issues include

bull Responsibility of the HR function ndash What is HR really tasked to do Can HR really stand as a strategic partner of the CEO

bull Responsibility of line managers with respect to HR issues ndash Should management of employee concerns fall solely on the HR Department or be shared at all levels from senior management down to juniormanagement

bull Manner by which HR can help the organization compete in the marketplace ndash What efficiencies can be achieved in the HR Department in its processes policies and procedures What processes can be retained and what can be outsourced What best practices can be implemented

bull Technology requirements ndash What systems will HR need to support its changing and growing requirementsDo The HR function of the future new roles and a changing focusGiven all the issues confronting todayrsquos HR function HR practitioners are being called to assume roles beyond the traditional HR administrative functions Dave Ulrich1 has outlined five key roles HR has to play in order to help organizations meet their strategic objectives

bull Strategic business partner ndash HR must factor in policies on employee welfare and new or changing competency requirements when corporate strategies are being developed Through partnering with management HR may take on the role of consultant and assist in strengthening the relationship between employees and senior managementbull Change agent ndash HR professionals must lead in actively building and maintaining a corporate culture that embraces people development

bull Employee champion ndash HR must create a productive work environment ensure effective communication and manage workforce relations

bull Manager of personnel acquisition and development ndash HR must define generate continuously reinforce and sustain organizational skills knowledge abilities attitudes and desired behaviors

bull Manager of processing compliance and reporting ndash HR must align its strategic and tactical plans with those of the corporation comply with laws create policies and execute administrative processes all in a cost-effective manner

Several of the roles may help HR respond to the evolving profile of todayrsquos workforce Aschange agent employee champion and advocate of employee development HR departments in someorganizations have instituted improvements in the workplace such as upgraded or flexibleemployee benefits wellness programs and the like HR may also assist in developing moreeffective training programs that include not only technical courses but also programs thatenhance soft skills and make use of multiple learning modes In the HR organization oftomorrow business partnering will include change leadership replacing administrativesupport functions (see Exhibit 2)

As agents of change HR practitioners may be seen taking on more consulting- typeresponsibilities They may also be seen functioning as ldquoexecutive coachesrdquo and reinforcingthe competencies not only of the workforce but also of company leadership

Ques No 3 a What is HR Policyb Why should an organization adopt HR policy Explainc Discuss the characteristics of a good HR Policy

A Definition of HR PolicyHuman resource policies are systems of codified decisions established by an organization tosupport administrative personnel functions performance management employee relations and resource planning Each company has a different set of circumstances and so develops an individual set of human resource policies HR policies allow an organization to be clear with employees on

The nature of the organization What they should expect from the organization What the organization expects of them How policies and procedures work What is acceptable and unacceptable behavior The consequences of unacceptable behavior

B Why policies are importantPolicies serve several important functions

Communicate values and expectations for how things are done at your organization

Keep the organization in compliance with legislation and provide protection against employment claims

Document and implement best practices appropriate to the organization Support consistent treatment of staff fairness and transparency Help management to make decisions that are consistent uniform and predictable Protect individuals and the organization from the pressures of expediency

C Characteristics of Sound HR PolicyWhile developing sound personnel policies management should pay attention to the following things1 Related to Objectives Policies must be capable of relating objectives functions physicalfactors and company personnel2 Easy to Understand Policies should be stated in define positive clear and understandable language3 Precise Policies should be sufficiently comprehensive and prescribe limits and yardsticksfor future action4 Stable as well as Flexible Personnel policies should be stable enough assure people that there will not be drastic overnight changes They should be flexible enough to keep the organization in tune with the times5 Based on Facts Personnel policies should be built on the basis of facts and sound judgment and not in personal feelings or opportunistic decision6 Appropriate Number There should be as many personnel policies as necessary to cover conditions that can be anticipated but not so many policies as to become confusing or meaningless7 Just Fair and Equitable Personnel policies should be just fair and equitable to internal as well as external groups 8 Reasonable Personnel policies must be reasonable and capable of being accomplished To gain acceptance and commitment from employees the policy should be conditioned by the suggestions and reactions of those who are affected by the policy9 Review Periodic review of personnel policies is essential to keep in tune with changing times and to avoid organizational complacency or managerial stagnation Personnel policies to be sound should also have broad coverage in addition to satisfying the above conditions

Ques No 4a What is job analysisb Discuss the uses of Job Description and Job Specificationc Prepare Job Descriptions for a HR Managerd Difference between job description and job specification

A Definition of Job AnalysisA job analysis is the process used to collect information about the duties responsibilitiesnecessary skills outcomes and work environment of a particular jobThe job analysis may include these activities1 Reviewing the job responsibilities of current employees2 Doing Internet research and viewing sample job descriptions online or offline highlightingsimilar jobs3 Analyzing the work duties tasks and responsibilities that need to be accomplished by theemployee filling the position

4 Researching and sharing with other companies that have similar jobs and5 Articulation of the most important outcomes or contributions needed from the position

B Uses of Job Description and Job Specification

Definition of Job descriptionA job description sets out the purpose of a job where the job fits into the organization structure the main accountabilities and responsibilities of the job and the key tasks to be performed

Importance of Job DescriptionA job description has four main usesOrganization - it defines where the job is positioned in the organization structure Who reports to whomRecruitment - it provides essential information to potential recruits (and the recruiting team)so that they can determine the right kind of person to do the job (see person specification)Legal - the job description forms an important part of the legally-binding contract of employmentAppraisal of performance - individual objectives can be set based on the job descriptionTraining and employee development - You can use your employee job descriptions along with descriptions of possible job promotions as incentives for employees to pursue classes seminars and other career development activitiesCompensation - Job descriptions can be helpful in developing a standardized compensation program with minimums and maximums for each position

C What is Job SpecificationA job specification describes the knowledge skills education experience and abilities youbelieve are essential to performing a particular job Components of a Job Specification areExperience Education Required Skills Knowledge and Characteristics High Level Overview ofJob Requirements A job specification is useful for recruiting as it helps you write your jobpostings and your website recruiting material The job specification is also useful fordistribution in social media for screening resumes and for interviewers Based on jobdescription and job specification employing organizations insert advertisements innewspaper other publications internet etc in order to minimize the size of theadvertisements most of the organizations prefer to include various contents of the jobdescription and job specification only briefly the details of such contents may be mentionedin the application forms to be filled-in by the prospective candidate or may be communicatedto the candidate at the time of interview In cases where candidates are selected not forspecific jobs but for a pool of jobs like IAS PCS etc in government service managementtrainees in business organizations probationary officers in commercial banksfinancialinstitutions etc positions existing in various ministriesdepartments business functions(production marketing finance human resource etc) are notified

D Difference between job description and job specificationJob description Job description is a written statement that defines the duties relationships and results expected of anyone in the job It is an overall view of what is to be done in the job Typically it includes is a written statement that defines the duties relationships and results expected of anyone in the job It is an overall view of what is to be done in the job Typically it includes

Job Title Date Title of immediate supervisor

Statement of the Purpose of the Job Primary Responsibilities List of Typical Duties and Responsibilities General Information related to the jobTraining requirements Tool use Transportation Signature of the person who has prepared the job description

Job Specification Job Specification is an analysis of the kind of person it takes to do the job that is to say it lists the qualifications Normally this would include is an analysis of the kind of person it takes to do the job that is to say it lists the qualifications Typically this would include Degree of education Desirable amount of previous experience in similar work Specific Skills required Health Considerations

Ques No 5a What is induction and socializationb How can induction process benefit an organizationc Briefly describe the content of an induction programd Why is it essential for an organization

A Definition of inductionInduction means introducing the new employee in the organization means when a new employee enters in the organization he is told about the companys policies and rules Once an employee is selected and placed on an appropriate job the process of familiarizing him with the job and the organization is known as induction Induction is the process of receiving andwelcoming an employee when he first joins the company and giving him basic information he needs to settle down quickly and happily and stars work

Definition of SocializationProcess that adopts employees to the organizationrsquos culture Orientation or Induction is animportant part of the process of socialization of a new organizational member or employeeSocialization is a process of adaptation by which employees are able to understand the basicvalues norms and customs for becoming the accepted members of the organization and assumingorganizational roles

B The Advantages of Formal Induction are -1 Induction helps to build up a two-way channel of communication between management and workers2 Proper induction facilitates informal relation and team work among employee3 Effective induction helps to integrate the new employee into the organization and to develop a sense of belonging4 Induction helps to develop good relation5 A formal induction programme proves that the company is taking interest in getting him off to good start6 Proper induction reduces employee grievances absenteeism and labor turnover7 Induction is helpful in supplying information concerning the organization the job and employee welfare facilities8 To help the new comer to overcome his shyness and overcome his shyness nervousness in meeting new people in a new environment9 To give new comer necessary information such as location of a cafeacute rest period etc

10 To build new employee confidence in the organization11 It helps in reducing labor turnover and absenteeism12 It reduces confusion and develops healthy relations in the organization13 To ensure that the new comer do not form false impression and negative attitude towards the organization14 To develop among the new comer a sense of belonging and loyalty to the organization

C content of an induction program - Brief history and operations of the company The companyrsquos organization structure Policies and procedure of the company Products and services of the company Location of department and employee facilities Safety measures Grievances procedures Benefits and services of employee Standing orders and disciplinary procedures Opportunities for training promotions transfer etc Suggestion schemes Rules and regulations

DImportance of Induction for an OrganizationIt is critical for organizations to provide the correct induction for any new employee asthat will be beneficial to them and the organization The induction lays the foundation ofthe relationship between the employees and the employer this allows organizations to get themost out of the employees as quickly as possible and influences the long term success of theorganizationIt is important that all new employees receive induction training at the commencement oftheir employment and that they are provided with all the equipment and information necessaryto carry out their jobs effectively This can be provided in a myriad of ways such astraining or mentoring Depending on the nature of the induction an induction may last forweeks or even months During this time the employee gains valuable information regarding theorganization and how well they will expect to integrate in it

Ques No 6a Define Recruitment and Selectionb What are the sources of recruitmentc Discuss the steps involved in the selection processd Difference between recruitment and selection

ADefinition of RecruitmentRecruitment is the premier major steps in the selection process in the Organizations It hasbeen explained as an activity directed to obtain appropriate human resources whosequalifications and skills match functions of the relevant posts in the Organization Itsimportance cannot be over-emphasized and can also be best described as the lsquoheartrsquo of theorganization

Definition of SelectionOnce the potential applicants are identified the next step is to evaluate their qualification qualities experiences capabilities etc amp make the selection It is the process of offering jobs to the desired applicants Selection means choosing a few from those

who apply It is picking up of applicants or candidates with requisite qualifications and qualities to fill jobs in the organization

BSources of RecruitmentEvery organization has the option of choosing the candidates for its recruitment processesfrom two kinds of sources internal and external sources The sources within the organizationitself (like transfer of employees from one department to other promotions) to fill aposition are known as the internal sources of recruitment Recruitment candidates from allthe other sources (like outsourcing agencies etc) are known as the external sources ofrecruitment

SOURCES OF RECRUITMENT

CThe steps involved in the selection process are

Step 1 - Preparation The need for the position was considered The possibility of job redesign was examined An up-to-date position description was available The position description adequately supported the selection process

Step 2 - The Selection Committee At least one member was trained in Staff Selection The selection process gave a high priority to achieving a timely resolution All information relevant to the selection process was kept confidential Equal opportunity issues were drawn to the attention of members All members were involved at all stages of the selection process The committee was appropriately constructed in terms of membership Gender balance was achieved The same core questions were asked of each applicant

Provision of feedback for unsuccessful applicants was arranged and carried out All information used in the selection process was returned to the convenor The principles of merit based selection were applied at all times A clear process for reaching a decision existed Each applicant was objectively and impartially assessed against the selection criteria The same panel members were retained throughout the selection process

Step 3 - Selection CriteriaThe selection criteria

proved assessableverifiable during the selection process were kept to an essential minimum had input from all members of the committee were clearly communicated to applicants were lawful were not altered once the process commenced were assessed in the context of written applications were assessed in the context of referee reports were assessed in the context of interview were not used to eliminate an over qualified applicant were derived from the position description were not structured to favor an acting appointment

Step 4 - AdvertisingThe advertisement

did not exceed 75 words contained a contact point for information discouraged unsuitable applicants attracted sufficient quality applicants specified a closing date was supported by additional information handouts

Step 5 ndash Short listing Short listing commenced after the closing date for applications The process involved all members of the selection committee The shortlist was developed against the selection criteria Concerns or conflicts of interest were dealt with The shortlist included applicants who satisfied all essential Selection criteria Unsuccessful applicants were notified once eliminated from consideration Interviews were granted on merit

Step 6 - Referees Referees were directed to comment against selection criteria Referees provided information that contributed to the selection decision Reports were read by all members of the selection committee Only information from nominated referees as opposed to unofficial referees was

considered Reports were held in strictest confidence Applicants were advised if contact was to be initiated with referees

Step 7 - Structuring the Interview All committee members had input in structuring questions Each criterion was sufficiently covered by interview questions Example based questions were asked The interview had a structure

A record of interview was kept The role of each committee member during the interview was agreed Interviews were held as far as possible on the same or successive days Applicants convenience and comfort was a consideration

Step 8 - Conduct of the Interview The venue was fit for the purpose Committee members had read applicants details Reception of applicants was arranged The committee convened 30 minutes before the first interview Note-taking practice was determined Qualifications were sighted Members were introduced and identifiable to applicants No interruptions occurred during an interview The convener explained the interview structure to the applicants Questions of clarification were used Applicants were given time to ask questions

Step 9 - Reaching a Selection Decision A decision process was determined in advance of attempting to reach a decision First impressions were checked against a number of sources Possible halo effects were avoided Negative information was balanced against positive information The selection decision was not influenced by the sequence of interviews The selection decision was not a rushed decision The selection decision was not subject to pressure from the convener

Step 10 - In Conclusion Applicants were given timely advice of the outcome of their application A committee member was delegated to offer feedback to applicants Committee members contributed input to feedback to be provided Working papers were returned to the convener A good appointment resulted

DDifference between recruitment and selection

Ques No 7a Define grievance and grievance handling procedureb Do you think a formal grievance handling procedure is important for your organization

whyc Discuss the steps involved in handling employee grievances

ADefinition of Grievance

Prof Pigors and Meyers define grievance as dissatisfaction According to them dissatisfaction of an employee is anything that disturbs the employee whether expressed or not

Dale Yoder defines it as a written complaint filed by an employee and claiming unfair treatment

The National Commission of Labor states that complaints affecting one or more individual workers in respect of their wage payments overtime leave transfer promotion seniority work assignment and discharges would constitute grievance

Grievance and Grievance Handling

1 Grievances or conflicting thoughts are part of industrial life2 It is essential to bring this conflict to the surface3 All conflicts cannot be eliminated but their exposure will contribute towards their reduction4 Such exposures lead to adjustments and further improved organizational effectiveness

BA formal grievance handling procedure is important for an organization Because(i) Identification and analysis of grievances nature nod causes(ii) Helps at formulating and implementing the policies and programmes(iii) It is problem solving dispute-settling mechanism(iv) Strengthen good industrial relationship(v) It detects the flaws in working conditions and helps to take corrective measures(vi) Build good morale maintains code of discipline(vii) Brings uniformity in handling grievances(viii) It develops faith of employees(ix) Reduces personality conflicts(x) It acts as a pressure valve(xi) Provides judicial protection to the employees(xii) Provides avenues to present the problems

CBasic Elements in Handling Grievance

1 Existence of sound channel2 The procedure should be simple definite and prompt3 It should be clearly defined4 Helpful attitude of management5 Fact-oriented system6 Respect for decisions7 Adequate publicity8 Periodic Review

The steps involved on handling employee grievance are given below

1 Receive and define the nature of dissatisfaction(a) Manner and attitude when complaint is received (b) Assessment must be made that the complaint is presented fairly(c) Statement and issues must not be pre-judged(d) Proper time and attention is given

2 Get the facts (a) Facts be separated from impressions and opinions(b) Consult the policies(c) Consult the records

3 Analyze and decide4 Apply the answer

5 Follow-up

Dorsquos in Handling Grievances

1 Investigate and handle each case carefully2 Talk to the employee3 Enforce the time limit4 Visit the work area or place of grievance5 Determine witnesses6 Examine records7 Examine witnesses8 Evaluate grievance9 Permit full hearing10 Identify the relief an employee is expecting11 Command the respect of all12 All discussions privately13 Keep superiors informed14 Ensure proper productivity15 Stick to labor agreements

Ques No 8a What is Manpower Planningb What is the importance of manpower planningc Describe the process of manpower planning

ADefinition of Manpower PlanningManpower Planning which is also called as Human Resource Planning consists of putting right number of people right kind of people at the right place right time doing the right thingsfor which they are suited for the achievement of goals of the organization Human Resource Planning has got an important place in the arena of industrialization Human Resource Planning has to be a systems approach and is carried out in a set procedure The procedure isas follows

1 Analyzing the current manpower inventory 2 Making future manpower forecasts 3 Developing employment programmes 4 Design training programmes

B Importance of Manpower Planning

1 Key to managerial functions- The four managerial functions ie planning organizingdirecting and controlling are based upon the manpower Human resources help in the implementation of all these managerial activities Therefore staffing becomes a key toall managerial functions

2 Efficient utilization- Efficient management of personnelrsquos becomes an important function in the industrialization world of today Setting of large scale enterprises requires management of large scale manpower It can be effectively done through staffing function

3 Motivation- Staffing function not only includes putting right men on right job but it also comprises of motivational programmes ie incentive plans to be framed for further participation and employment of employees in a concern Therefore all types ofincentive plans become an integral part of staffing function

4 Better human relations- A concern can stabilize itself if human relations develop and are strong Human relations become strong trough effective control clear

communication effective supervision and leadership in a concern Staffing function also looks after training and development of the work force which leads to co-operationand better human relations

5 Higher productivity- Productivity level increases when resources are utilized in best possible manner higher productivity is a result of minimum wastage of time money efforts and energies This is possible through the staffing and its related activities( Performance appraisal training and development remuneration)

CSteps in Manpower Planning

1 Analyzing the current manpower inventory- Before a manager makes forecast of future manpower the current manpower status has to be analyzed For this the following thingshave to be noted-

Type of organization Number of departments Number and quantity of such departments Employees in these work units

Once these factors are registered by a manager he goes for the future forecasting2 Making future manpower forecasts- Once the factors affecting the future manpower

forecasts are known planning can be done for the future manpower requirements in several work units The Manpower forecasting techniques commonly employed by the organizations are as followsi Expert Forecasts This includes informal decisions formal expert surveys and

Delphi technique ii Trend Analysis Manpower needs can be projected through extrapolation (projecting

past trends) indexation (using base year as basis) and statistical analysis (central tendency measure)

iii Work Load Analysis It is dependent upon the nature of work load in a departmentin a branch or in a division

iv Work Force Analysis Whenever production and time period has to be analyzed due allowances have to be made for getting net manpower requirements

v Other methods Several Mathematical models with the aid of computers are used toforecast manpower needs like budget and planning analysis regression new venture analysis

3 Developing employment programmes- Once the current inventory is compared with future forecasts the employment programmes can be framed and developed accordingly which will include recruitment selection procedures and placement plans

4 Design training programmes- These will be based upon extent of diversification expansion plans development programmes etc Training programmes depend upon the extentof improvement in technology and advancement to take place It is also done to improve upon the skills capabilities knowledge of the workers

Ques No 9a Differentiate among line organization functional organization and line amp staff

organizationb Design a structure of HR Department of a large manufacturing organization

A

Line OrganizationLine organization is the oldest and simplest method of administrative organizationFeatures of Line Organization

1 It is the simplest form of organization

2 Line of authority flows from top to bottom 3 Specialized and supportive services do not take place in this organization 4 Unified control by the line officers can be maintained since they can independently

take decisions in their areas and spheres 5 This kind of organization always helps in bringing efficiency in communication and

bringing stability to a concern Functional OrganizationFunctional organization has been divided to put the specialists in the top positionthroughout the enterprise Features of Functional Organization

1 The entire organizational activities are divided into specific functions such as operations finance marketing and personal relations

2 Complex form of administrative organization compared to the other two 3 Three authorities exist- Line staff and function 4 Each functional area is put under the charge of functional specialists and he has got

the authority to give all decisions regarding the function whenever the function is performed throughout the enterprise

5 Principle of unity of command does not apply to such organization as it is present in line organization

Line amp Staff OrganizationLine and staff organization is a modification of line organization and it is more complexthan line organization Features of Line and Staff Organization

1 There are two types of staff a Staff Assistants- PA to Managing Director Secretary to Marketing Manager b Staff Supervisor- Operation Control Manager Quality Controller PRO

2 Line and Staff Organization is a compromise of line organization It is more complex than line concern

3 Division of work and specialization takes place in line and staff organization 4 The whole organization is divided into different functional areas to which staff

specialists are attached 5 Efficiency can be achieved through the features of specialization 6 There are two lines of authority which flow at one time in a concern

a Line Authority b Staff Authority

7 Power of command remains with the line executive and staff serves only as counselors

B Structure of HR Department of a large manufacturing organization

Ques No 9a Differentiate among line organization functional organization and line amp staff organizationb Design a structure of HR Department of a large manufacturing organizationc Discuss the Role of a HR Manager

A Difference Between Line Functional and Staff OrganizationAns

Line authority The authority of those managers directly responsible throughout the organizationrsquos chain of command for achieving organizational goalsExample General Manager

Staff Authority The power to conduct investigations and advice line managers but not to implement these recommendations Example InternalExternal Auditor

Functional Authority The authority of members of staff departments to control the activities of other departments as they relate to specific staff responsibilitiesExample Quality Manager

B A Structure of HR Department of a Large Manufacturing OrganizationHR organizational structure is the framework within a human resources department that divides the decision making functions within HR into specificgroups with distinct job functionsThe HR organizational structure establishes specialist groups to work together within their speciality to manage tasks within the HR organization Each division may have a manager or team leader depending on the size of the organization to coordinate efforts and perform reporting tasks

C Role of HR ManagerThe role of the HR manager must parallel the needs of this developing changing organization Successful organizations are becoming more adaptable resilient quick to change direction and customer-centered They recognize that organizations will vie for talent in coming years This recognition brings about the need for employee oriented workplaces and programs that meet

the needs of employees for meaningful work growth challenge communicationand effective leadership

Depending on the size of the organization the HR manager has responsibility for all of the functions that deal with the needs and activities of the organizations people including these areas of responsibility

Recruiting Hiring Training Organization Development Communication Performance Management Coaching Policy Recommendation Salary and Benefits Team Building Employee Relations Leadership

When you ask the question what the HR manager does as you can see the answer is a lot The role bears responsibility for all of the processes and systems related to people in an organization The role must support the work of managers who supervise and lead the work of these people The HR professionals must develop the skills of their managers and their organization to do these activities well The job of the HR professional is aconstant challenge as HR staff balance many roles and activities in support of their organizations

Ques No10a What do you mean by SHRMb Briefly discuss the role of HRM in strategy formulation and strategy implementation

AnsDefinition of SHRMStrategic human resource management can be defined as the linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that foster innovation flexibility and competitive advantage In an organization SHRM means accepting and involving the HR function as a strategic partner in the formulation and implementation of the companys strategies through HR activities such as recruiting selecting training and rewarding personnel

The key features of SHRM are

There is an explicit linkage between HR policy and practices and overallorganizational strategic aims and the organizational environment

There is some organizing schema linking individual HR interventions so that they are mutually supportive

Much of the responsibility for the management of human resources is devolved down the line

The Role of HRM in Strategy Formulation and Strategy ImplementationThe recognition of the role played by the employees in the knowledge industrybrought a transition to the responsibility of the human resource department from recruitment and other mundane jobs to the formulation and implementationof the company strategies 1048715 Administrative Linkage mdash Lowest level of integration HRM functions attention is focused on day-to-day activities No input from the HRM function to the companys strategic plan is given1048715 One-Way Linkage mdash The strategic business planning function develops the plan and then informs the HRM function of the plan HRM then helps in the implementation1048715 Two-Way Linkage mdash Allows for consideration of human resource issues during the strategy formulation process The HRM function is expected to provide input to potential strategic choices and then help implement the chosen option1048715 Integrative Linkage mdash Is based on continuing rather than sequential interaction The HR executive is an integral member of the strategic planning team

Five components of the strategic management process1048715 A mission is a statement of the organizations reasons for being1048715Goals are what the organization hopes to achieve in the medium-to long-term future1048715 External analysis consists of examining the organizations operating environment to identify strategic opportunities and threats1048715 Internal analysis attempts to identify the organizations strengths and weaknesses1048715 Strategic choice is the organizations strategy which describes the ways the organization will attempt to fulfill its mission and achieve its long term goals Mission Goals

HRM Practices1048715 Job Analysis - the process of getting detailed information about jobs1048715 Recruitment - the process through which the organization seeks applicants1048715 Training - a planned effort to facilitate learning of job-related knowledge skills and behavior1048715 Job design - making decisions about what tasks should be grouped into a particular job1048715 Selection - identifying the applicants with the appropriate knowledge skills and ability1048715 Development - the acquisition of knowledge skills and behavior that improves employees ability to meet the challenges of future jobs1048715 Performance management - helps ensure that employeesrsquo activities and outcomes are congruent with the organizationrsquos objectives1048715 Pay structure incentives and benefits1048715 Labor and employee relations

Ques No 11a Differentiate between performance appraisal and job evaluationb List the methods used in performance appraisal and discuss the MBO Methodc What are the defects of traditional performance appraisal methods

ADifference Between Performance Evaluation and Job Evaluation

AppraisalAccording the Society for Human Resource Management (SHRM) performance appraisals are thetail end of a long chain of business procedures They start with your businesss strategicplan which lays out goals for the company to reach through a set of strategies Thesestrategies are fulfilled by individual business units which heavily determines howindividual job tasks and requirements are defined These looming goals and strategies alsoplay a role in setting the skills and core competencies each employee must have tosuccessfully complete her job and contribute to meet the strategic goals These factors intheory form objective measures on which to evaluate an employees actual performancePerformance consists of behaviors as well as results In the end individual components ofthe appraisal are weighted by a pre-determined scheme For example conducting work tasksmight be more important than organizational citizenship qualities like being a team player

EvaluationAn evaluation can occur outside the context of determining an annual pay increase Ideallyinformal employee evaluation is an on-going process in which an employee receives routinefeedback on how hes doing Logistically speaking performance appraisals and evaluations aretime-consuming costly and conducted by subjective human beings Thats why in practiceevaluation and appraisal look alike In an evaluation form template offered by HR World aleading online human resources community an evaluation measures topics such job skillsquantity and quality of work work habits communication initiative judgment andleadership Evaluations sometimes take into account goals set between the employee and hissupervisor as well as an employees self-evaluation

B There are many types of performance appraisal methods Some of them are

1) job resultsoutcome 2) essay method 3) Ranking 4) Forced Distribution 5) Graphic Rating Scale 6) Behavioral Checklist 7) Behavioral Anchored Rating Scales (BARS) 8) Management by Objectives (MBO)

1048715 Management by Objectives Management by Objectives (MBO) is one of the morepopular performance appraisal methods among organizations MBO requires you to establish the objectives of the job The question asked in performance appraisal is whether these objectives are achieved by employees and to what extent This method is suitable for assessing the performance of managers

Defects of Traditional Performance Appraisal MethodMany performance appraisal methods have been severely criticized Many of the problems commonly mentioned are not inherent in the method but rather reflect improper usage

a Lack of Objectivity - A potential weakness of traditional methods of performance appraisal is that they lack objectivity Some subjectivity will always exist in appraisal methods However the use of job-related factors does increase objectivity

b Halo Error-Occurs when the evaluator perceives one factor as being of paramount importance and gives a good or bad overall rating to an employee based on this factor

c LeniencyStrictness-The giving of undeserved high or low ratings

d Central Tendency-Occurs when employees are incorrectly rated near the average or middle of the scale

e Recent Behavior Bias-It is only natural to remember recent behavior more clearly than actions from the more distant past However performance appraisals generally cover a specified period of time and an individualrsquos performance should be considered for the entire period

f Personal Bias-Supervisors doing performance appraisals may have biases related to their employeesrsquo personal characteristics such as race religion gender disability or age group

g Manipulating the Evaluation-In some instances supervisors control virtually every aspect of the appraisal process and are therefore in a position to manipulate the system

Ques No 12a Differentiate between Benefits and Incentivesb What is the factors influence employee compensationc List the financial and non-financial benefits

A Difference Between Benefits and Incentives

BenefitsThe benefits processes introduce the transparency into Human Resources and rewardingemployees for the achieved performance The compensation and benefits provides the managerswith the compensation tools to build a difference among employees as the high performancecorporate culture can be built in the organization The benefits department monitors theexternal job market and optimizes the personnel expenses budget of the organization Thebenefits defines the compensation strategy sets the transparent and simple compensationpolicy and defines the general rules for the extraordinary payments bonus schemes applied inthe organization and introduces general other compensation policies like the RelocationPolicy Short-Term Assignment Policies Benefit Car Policies and other

IncentivesWhat is incentive In simple words incentive is anything that attracts a worker andstimulates him to work The incentives can be financial and non-financial Both types ofincentives play important role under different conditions For example financial incentivesare considered to be more valued under the work conditions where wages are at low levels Onthe contrary non-financial incentives are more preferable where wage levels are high and therate of tax is progressive However a review of research evidences indicates that there is ashift in emphasis in the demands of employees and their unions from financial to non-financial benefits

BThese factors include the following

Ability to payThis is one of the most significant factor influencing employee compensation Generally a firm which is prosperous and successful has the ability to pay more than the competitive rate This way it can attract a superior caliber of personnel Often the labour unions also demand an increase in compensation on the grounds that the organization is prosperous and is able to pay more

Employee Numerous employees related factors also influence his or her compensation These include the following

PerformancemdashIt is always rewarded with pay increase and as a result it motivates the workers to do better in future

ExperiencemdashThis makes a person perfect by providing valuable insights and thus rewarded alsoToday companies are demanding for 10 to 20 years experience candidates especially for theexecutive positions The companies presume that experience candidate possesrsquo leadershipskills which influence the other behavior and performance Generally experiencecandidate perform the job without need of training which is time consuming and deals withmatter of cost to company Hence the experience candidates demand more pay than aninexperienced candidate

SenioritymdashTrade unions always prefer this objective criterion for pay rises

PotentialmdashFirms also pay their employees especially young ones on the basis of their potential

Ca) Financial incentives financial incentives include Salary premium reward dividend bonus income from investment Financial incentives play a very important role in improving the performance of the employees Cash plays a very important role in fulfilling the needs ofthe individuals especially of labor class

(b) Non financial incentives As the employees have other needs like respect and self centered needs they can be motivated with the help of following non-financial incentives

bullJob satisfactionbullJob securitybullRespect and recognitionbullTraining and other employee improvement programsbullHousingmedicaleducational facilitiesbullOpportunities for growthbullSuggestion scheme praise employee-superiors relationship etc

Ques No 13a Differentiate between ldquoPositive Disciplinerdquo and ldquoNegative Disciplinerdquob Briefly discuss the stages in disciplinary procedure

A

Positive disciplinePositive discipline is encouraging It makes allowances for the fact that children need time to learn what behavior is ok and what is not and that they will make mistakes Its aim is tohelp children learn self discipline to take responsibility for their own actions and to treat both others and themselves with care and respect Here are some key ingredients in positive discipline It

establishes and maintains clear boundaries notices and rewards positive behaviour uses reasonable penalties in response to negative behaviour

Negative disciplineNegative discipline focuses on what children are doing wrong It relies for control on childrens fear of adults power Its methods are unfair harsh and often inconsistent and are based on punishment It teaches what is wrong but seldom explains what is right or

acknowledges good behaviour Negative discipline has a negative effect on children It makes them believe not just that they have done wrong but that they themselves are bad Theres another approach that while it is not harsh is also unhelpful Over indulgent and soft attitudes tend to make children selfish

B Stages in Disciplinary Procedure

Stage 1 ndash First Verbal Warning If there isnrsquot any improvement in the employeersquos behavior after the informal meeting then a formal verbal warning is given This warning will be active on the employeersquos personal file for a specified period If there is no improvement by the date set for re-assessment then Stage 2 will occur

Stage 2 ndash Second Verbal WarningIn the event of a further breach of conduct poor attendance or lapse from performance the employee will be given the second and final verbal warning This warning will be recorded onthe employeersquos file for a specified period of time

Stage 3 ndash First Written Warning If it is considered after a review that progress is unsatisfactory then the management committee should appoint at least three members to form a disciplinary panel in order to conduct a disciplinary hearing The panel will decide whether to issue a formal written warning

Stage 4 ndash Final Written Warning If the Management Committee considers after a review of the previous stage that progress is still unsatisfactory the employee will receive a final written warning which will remain active on their personnel file for a specified period

Stage 5 ndash Dismissal The dismissal should be confirmed in writing and it will be within the terms of the Minimum Notice and Terms of Conditions Act The letter should state the grounds for the action taken

Personnel Management and HRM A Paradigm Shift

B Why policies are important

C

The steps involved in the selection process are

Step 1 - Preparation

Step 2 - The Selection Committee

Step 3 - Selection Criteria

Step 4 - Advertising

Step 5 ndash Short listing

Step 6 - Referees

Step 7 - Structuring the Interview

Step 8 - Conduct of the Interview

Step 9 - Reaching a Selection Decision

Step 10 - In Conclusion

Importance of Manpower Planning

Steps in Manpower Planning

Features of Line Organization

Features of Functional Organization

Features of Line and Staff Organization

Appraisal

Evaluation

Positive discipline

Negative discipline

Stage 1 ndash First Verbal Warning

Stage 2 ndash Second Verbal Warning

Stage 3 ndash First Written Warning

Stage 4 ndash Final Written Warning

Stage 5 ndash Dismissal

C Functions of HR Department

1 Pre-Recruitment Process a Receipt of requirement of manpower from various department heads b Scrutinize them and take approval from concerned authorities if the post is new c Prepare a recruitment budgetd Select the appropriate Recruitment process

2 Recruitment Process a Prepare Advertisements etc for the recruitment b Scrutinize and shortlist the applications received c Send interview call lettersmails as required d Conduct Interviews through panels e Preparation of offer letters as required

3 Joining Formalities a Administrating Joining formalities b Pre Employment Reference checks c Preparation of Appointment Advice and intimating the same to other departments d Preparing and entering new hire paperwork e Co-ordinating to get Employee ID Cards f Handing over the new hire to the concerned HODManager g Preparation of Job Profiles co ordination with HODManagers for new posts

4 Employee Personal File Maintenance a Opening new file and Closing the Resigned employeersquos File b Make sure all Employee files are maintained safely with care c Make sure all personal records are available in the files d Periodic Personal File Auditing

5 Employee Data Base a Keeping Track of Knowledge Management Software b Maintenance of HRIS

6 Confirmation Formalities a Intimating the concerned HODManager about the due dates for confirmation b Conducting Confirmation Appraisals c Co ordinating for Skill Gap Analysis d Co ordinating to set Quality Objectives for each job profile e Ensuring updating of the existing Job Profiles f Processing the Confirmation

7 ISO Compliance a Ensuring all the updating of the ISO documentation and HR Formats b Learning and enforcing Standard Operating Procedures (SOP) c Facing the Internal and External Audits accountable to enforce the correctional actions

8 Statutory Compliance a Handling PF and ESI formalities and co ordinating with other departments b Handling Apprentice Training Submitting Periodic Returns to Board c Submitting other returns to the labor Department as per Shops and establishment Act









Summary




Ans












































































5 Follow-up



























A




































































A













C







Step 6 - Referees










Appraisal

Evaluation

Positive discipline

Negative discipline














Summary




Ans












































































5 Follow-up



























A




































































A













C







Step 6 - Referees










Appraisal

Evaluation

Positive discipline

Negative discipline









Ans












































































5 Follow-up



























A




































































A













C







Step 6 - Referees










Appraisal

Evaluation

Positive discipline

Negative discipline








































































5 Follow-up



























A




































































A













C







Step 6 - Referees










Appraisal

Evaluation

Positive discipline

Negative discipline






















A




































































A













C







Step 6 - Referees










Appraisal

Evaluation

Positive discipline

Negative discipline







































































A













C







Step 6 - Referees










Appraisal

Evaluation

Positive discipline

Negative discipline















C







Step 6 - Referees










Appraisal

Evaluation

Positive discipline

Negative discipline






Basics on HRM

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Transcript of Basics on HRM