2. Ch-1 Understanding the Nature & Scope of Human
Resource Management
• Def-: Functions like Recruitment, Selection, Training &
Development (people’s dimension in an organization).
• Scope-Entry-Leaving
3. HRM Functions & Objectives
Function-: supply of competent & willing employees
Objectives-:
Societal (sensitive to needs & legal Compliance)
Organizational (effectiveness, Planning, selection, Training &
Development, Appraisal)
Personal (employee career, potential, training & development)
Outsourcing:
72% of Indian companies are outsourcing their HR activities.
e.g. Employee hiring, Training & development, Payroll preparation,
Benefits administration, Statutory records maintenance.
IIPM headquarters at Kolkata
National Institute of Labor Management (NILM) at Mumbai
Merged to form National Institute of Personnel management in 1980.
4. Chapter-2: Context of HRM
• External – Political, Legal, Economic, Technological
• Internal-Org. culture, Cultural, Unions, Professional bodies
• Analysis helps in pro-active approach
• Political:
Article 14: Equality before the law
Article 15: Prohibition of discrimination-religion, race, caste, sex or place
of birth
Article 16: Equality of opportunity in public employment
Article 23: Prohibits forced labor
Article 24: Prohibits employment of children –factories, mines/hazardous
jobs
Article 38(d) Equal pay for Equal work
Article 38(e) Health & Strength of workers, tender age of children forced
to work out of economic necessity- jobs not suitable to their health.
Article 42: Just & Humane conditions of work & Maternity leave for
women
Article 43: Living wages for workers
Article 43(a): Participation of workers in management
5. Economic:
Supplier: provides HR
Competitors
Customers
Economic Growth
Industrial Labor- diversity
Globalization
Technological: HRIS
Internal:
Strategy, Task & Leadership
Unions
Organizational culture & conflict
Enacted Environment- own creation e.g. OPEC Knowing the
Domain- carves out for itself, Domain Consensus
Environment
Task Environment- all groups that can influence organization.
E.g. range of products, technology, etc.
Scanning the Environment: Trends & projections,
E.g. labor market, legal environment etc.
6. Chapter-3
Integrating HR Strategy with Business Strategy
• Strategic HRM- HR abilities – anyone who deals with
people, regardless of functionality.
• Barriers-
Perceived short-term
Inability of HR to think strategically
Senior managers lacks appreciation for HR values
Too much concerned with technicality rather than people
values
Difficult to quantify HR outcome
HR other than capital assets is not owned by the
company and hence risk in investment.
7. Corporate level strategies: which business?
Growth strategies (horizontal, vertical, conglomerate, related-unrelated, mergers,
strategic alliances)
Stability strategies
Retrenchment strategies
Business level strategies: how to compete in chosen business, SBU
Functional level strategies : HR
Identification of key HR activities
Pro-reactive
Critical thinking
Explicit comm. of goals
Quality & service
Building core competencies
Environment scanning
SWOT analysis
Strategy implementation
Strategy evaluation
8. Chapter-4
Human Resource Planning
• The first part of human resource strategy is human resource
planning
• All other HR activities such as employee hiring, training &
development, remuneration, appraisal, & labor relations are
derived from HRP.
• HRP is a sub-system in total Org. Planning
• Importance:
Future personnel needs, succession planning
Part of strategic planning
Creating highly talented personnel
International strategy
Foundation for personnel functions
Investment in HR’s (human assets as compared to physical assets
increase in value)
Resistance to change & move
9. Factors affecting HRP:
1. Type & strategy of Organization.
2. Organizational growth cycles
3. Environment uncertainties
4. Time horizons (short/long term) greater the uncertainty, shorter the time
horizon
5. Type & quality of source information (HRIS)
6. Outsourcing
10. Environment scanning:
•Economic
•Technological
•Demographic
•Political & legislative
•Social concerns
Organization objectives & policies:
•Internal promotion
•Training & development
•Enrichment of job
•Union
•Retaining
Demand: Quantity & Quality
Basis- annual budget and long term corporate plan translated into
activity levels for each function & department.
External: Competition, Economic
Internal: Budget constraints, Employee separation etc.
11. Forecasting techniques:
Managerial judgment-(bottom up/ top-down)
Ratio trend analysis-(Past ratios, e.g. sales volume -employee size)
Regression analysis
Work supply technique(length of operation-amount of labor reqd.)
Delphi technique
Flow models (Markov analysis)
I. Time span (Time to be covered-depends on HR Plan)
II. Mutually exclusive categories of employees -movement in
categories
III. Estimate probability of transition based on past trends
13. Inflow-outflow = No. of current employees
Turnover rate = No. of separations in 1 year
* 100
Avg. no. of employees in 1 year
Absenteeism rate= No. of workers absent*No. of days)*100
Average no. of workers*No. of working days
E.g. 4% means 96 out of 100 are available
Retention plan:
Compensation plan
Performance appraisal
Employee quitting because of conflict or green pastures
The induction crisis(accurate job requirements, realistic job
picture)
Shortages
Unstable recruits- find characteristics
14. Chapter-5
Analyzing work & Designing jobs
• Origin civil right movement
• Collecting job related information-Job description &
specification
• Monetary consideration is necessary- deciding whether a
activity is work or not
• Work has two characteristics-
Sociological- Leadership, Politics, Power, Group dynamics
Psychological- Learning, Attitude, Motivation, Satisfaction & Perception.
• Job description – Task & Responsibilities
Importance:
– Lays foundation for HRP
– Employee hiring
– Training & development, Performance appraisal
– Salary & wage fixation, Safety & Health.
15. Process
Strategic choices:
Extent of employee involvement,
Level of detail,
Timing & Frequency of analysis,
Past oriented vs. Future oriented
Sources of job data:
Non-human: Human:
*Existing data *job analysis
*Equipment maintenance record *job incumbents
*Equipment blue print *supervisors
*Work area architecture *job experts
*Films of employee working
*Training manuals
*Magazines & news papers
16. 2) Information Gathering:
•Type of data (time & budget constraints)
•Methods of data collection
•Who should collect: trained job analyzers, supervisors, job-incumbents
Methods:
Observation
Interview
Questionnaire
Checklists
Technical conference
Diary methods
Quantitative:
Position analysis questionnaire:194 elements, 6 categories ,degree
of involvement
Manager position development questionnaire
Functional job analysis: Relation to people, data, & things.
19. Purpose of job analysis:
•HRP
•Employee hiring
•Training & development
•Performance appraisal
•HRIS
Job design: conscious effort, organize tasks, duties & responsibilities, follows
after job- analysis
Organization factors: internal structure of each task requires planning,
executing & controlling, completely integrated job.
Work flow, Ergonomics, work practices.
Environment factors: Availability of employees, abilities, social & cultural
expectations.
Behavioral elements:
Feedback,
Autonomy,
Use of abilities,
Variety
20. Job Design Approaches
Job rotation
Job engineering-specialization, time & motion studies
Job enlargement
Job enrichment: adding more motivators (empowerment)
Hertzberg 8 characteristics
1) Direct feedback
2) Personal accountability
3) Direct communication
4) Learning
5) Client relationship
6) Control over resources
7) Scheduling own work
8) Unique experience
Socio-technical systems
Ergonomics
Tele-commuting
Alternative work pattern (scheduling)
21. Chapter-6
Recruiting Human resources
• Recruitment represents the first contact that a company makes
with potential employees.
• Recruitment program helps the firm in 4 ways:
1. Attract highly qualified & competent people.
2. Ensure that the selected candidate stay longer with the
company.
3. Make sure that there is match between cost & benefit.
4. Help the firm create more culturally diverse work force.
• Factors governing Recruitment:
External: Internal:
Supply & demand Recruitment Policy
Unemployment rate HRP
Labor market Size of the Firm
Political- legal Cost
Image Growth & Expansion
22. Recruitment: process of identifying & attracting job seekers so as to
build a pool of qualified job applicants.
5 stages:
2.Planning
3.Strategy development
4.Searching
5.Screening
6.Evaluation & control
(how to distinguish applicants who are unqualified from those
who have a reasonable chance of success)
Planning: No. & Type (yield ratios)
Strategy development:
•Make/Buy,
•Technological sophistication of recruitment & selection devices
23. Sources of recruitment:
Internal: External:
Present employees E- recruitment
Employee referrals competitors
Former employees consultants
Previous applicants walk-in/write-in
Campus recruitment
Employment Exchange (Acc. To act, every
Industrial Establishment ( >25 workers)
should notify vacancies in it.)
When to look: time lapsed data
Searching: source activation-reported by line managers
Selling: realistic job picture + attract as many as possible.
24. Job compatibility questionnaire: whether an applicant’s preference for
work match the characteristics of the job.
400 item instrument.
Alternatives:
overtime
Employee leasing-outsourcing of recruitment
Temporary employment.
25. Chapter 7
Selecting Human Resources
• Selection is the process of differentiating between
applicants in order to identify & hire those with a greater
likelihood of success in a job.
26. Choosing tests-reliability, validity, objectivity, & standardization.
Contract of employment:
Job title
Duties
Date when continuous employment starts
Rate of pay, allowances, overtime, hours of work including lunch break &
shift arrangements
Sickness,
Length of notice,
Grievance procedure
Disciplinary procedure
Work rule
Arrangements (terminating, union membership),
Rights to patents,
Employee rights to vary terms of contract subject to proper notification.
Audit of selection program
Feedback,
how well selected candidate perform,
turnover
27. Chapter-9
Training, Development & Career Management
• Training & Development need ₌ standard Performance-Actual Performance.
• Training:-Specific Skills
• Development:- Learning opportunities for employees to grow
• Source of competitive advantage
36. Theories of Remuneration
Reinforcement & Expectancy Theory
Behavior which has rewarding experience is likely to be repeated.
Vroom’s Expectancy theory focuses on link between rewards &
behavior.
Equity Theory:
Internal Equity: different jobs in the Organization
External Equity: relative to outside similar job
Individual Equity
Agency Theory: To align with organizational goals
37.
38. •Demand & Supply-going rate system
•Legislation:
Payment of wages act, 1936 (regulate irregularity & unauthorized
deduction, payment in particular form & at regular interval)
Minimum wages act, 1948
Payment of Bonus act, 1965
Payment of Gratuity act, 1972
Equal remuneration act, 1976
Wage Boards, tribunals, & fair wage committees.
•Managerial Remuneration: Company’s Act, 1956.
•Business strategy:
Invest to grow:----------→Entrepreneurial Skills
Manage Earnings:-------→Management Effectiveness
Harvest:--------------------→Cost control
Minimum wage-----------→ Fair Wage---------------→Living Wage(frugal
comforts)
39. Chapter-13
Managing Employee Benefits & Services
• Why Benefits & services?
Mitigate fatigue
Discourage labor unrest
Satisfy employee objectives
Aid recruitment
Reduce turnover, and
Minimize overtime costs
• E.g. Legally required: old age pension, health insurance,
worker’s compensation, unemployment compensation
40. Contingent & deferred benefits:
Pension plans
Group life insurance
Group health insurance
Annual wage
Maternity leave
Child care leave
Sick leave
Dental benefits
Suggestion awards
Other benefits:
Travel allowances
Company car & subsidies
Moving expenses
Uniform & tool expense
Employee meal allowances
Child-care facilities
41. 3 conditions:
Monetary calculable
Not specific amount
Not specific time for payment
46. Equity theory-To be treated equitably at work place
Criticism (judgment of fair treatment)
Porter & Lawler performance-satisfaction Model:
Place the right person in the right job (abilities & traits)
Carefully explain their role
Explain in concrete terms performance level expected
Rewards preferred
51. Participation at the board level
Participation through share ownership
Through joint councils, committees, & work councils
Through job enlargement, & job enrichment
Through quality circles
Through empowered teams
Quality of Work Life:
Ensured when members of an organization are able to satisfy their
important personal needs through their experiences in organization.
52. Chapter-17
Empowering Employees
• Participative Management also called Employee Empowerment
• Staff/Work councils-representation entirely of workers/employees
• Joint councils/committees-both employee & employer
• Article 43 A (42nd amendment) state through suitable legislation
– Human welfare
– Human as thinking & independent free being
– Mental & physical health
– Enhancing self-belief & self-efficacy
• Negative consequences of hierarchy & authority
– 1975-1977 Emergency
20 points program for
– 1977- Janta
worker’s participation
– 1979- congress
– Bill- may 30, 1990 in Rajya Sabha-----------making it statutory
• Shop floor council & Establishment Council
53. Chapter-18
Communicating with Employees
• Exchange & understanding of information
• Play’s a major role in changing people’s attitude
• Mould by supply of information e.g. company’s news letter
• Decision maker’s need information from many people to
perceive problems etc.
• Originate Channel Receive
Sender- Verbal, Selective Listening,
Clarity of Non- Perceptions (stereotyping,
thought verbal projection-reflecting of one’s
Tone, own thoughts on others, halo-
Facial, effect)
Body-
language
54. Meta communication- interpretation (add our own interpretation)
Remedy-Active listening
Organization Communication : Authority
Communication Roles: Gate keepers, Liaisons (not members of any
group), Isolates, cosmopolites-external world
55. Chapter-19
Managing Betterment at work
• The Factories Act, 1948
a) Washing Facilities
b) Facilities for storing & drying Clothes
c) Sitting facilities for occasional rest for workers who are obliged to
work standing
d) First aid boxes, one for every 150 workers & ambulance facilities, if
there are more than 500 workers
e) Canteen, if employing more than 250 workers
f) Shelters, rest rooms, lunch rooms, if employing more than 150
workers
g) Crèche, if employing more than 30 women
h) Welfare officer, if employing more than 500 workers
56. a) Not more than 48 hours per week
b) Not more than 9 hours per day
c) No worker has to remain in factory for more than 10 ½ hours
d) Rest interval of ½ hour, after 5 hours of work
e) Weekly one holiday
f) If worker puts more than 48 hours per week-overtime wages
g) No overlapping of shift
h) Women workers are not to be employed between 7 p.m. & 6 a.m.
(exception allowed)
i) No child below 14 years of age to be employed
58. Strategic choices-
level of protection
Formal/informal
Proactive/reactive(as marketing tool)
Safety Policy: goals, responsibility, & authority
Organization for safety -Safety committees
Risk management
Assessing risks (frequency, probability, & severity), steps to reduce
Incidence rate: no. of recordable injuries * 1 million
no. of employee exposure hours
Severity rate= no. of work hours lost * 1 million
total no. of worked hours
60. Factories Act, 1948
Factories to be kept clean & free from effluvia & dirt
Arrangements to be made for disposal of wastes & effluents
Adequate ventilation & temperature to be maintained
Measures to be taken for prevention of inhalation or accumulation
of dust & fumes
Standards for artificial humidification to be fixed
Overcrowded related injuries to health of workers to be avoided
(9.9/14.2 cubic meters of space must be provided for each worker)
61. Sufficient & suitable lightening must be provided in every part of
factory
Glazed windows to be kept clean, measures for prevention of glare
& shadows
Suitable points for wholesome drinking water- legibly marked &
away from urinals. Water needs to be cooled, if no. of workers 250 or
more
Latrines & urinals separately for males & females, well lighted &
ventilated
Sufficient no. of spittoons
63. Remedies:
Meditation
Cognitive restructuring: replacement of thoughts- reasons
applied
Time management: Delegate as much as possible minor work to
subordinates
67. HR Research
Wage surveys
Effectiveness of various recruitment sources
Effectiveness of training efforts
Survey of supervisor’s effectiveness
Job analysis
Survey of employee needs etc.
68. Analytical approach:
Cost-benefit analysis (utility analysis)
(excessive reliance on quantitative)- dysfunctional
Qualitative – (loyalty, commitment, attitude etc.)
Balanced Score Card:
4 dimensions
2.Financial Performance
3.Customer Service
4.Internal Business Processes
5.Capacity to learn & achieve growth