HR IMP POINTS
HRM dept prob: personnel planning,recruitment n selection, induction, performance uppraisal, training n delop, promotion n transfer, compensation payment, career planning, participative mgt.
Duties of HR manager:recruitment, selection, training, promotion, transfer, wage payment, working condition, welfare facilities, industrial relation.
Qualities of HR manager: knowledge of all labour laws, well qualifide, good communication skills, social outlook(knoweledge of market), feeling of sympathy 4 employees, resourcefullness, knwg of subject like (sociology, logic), creative thinking, leadership, decision making, generate trust amg employees.
Features of HRM: managing people, people oriented process, develop empo potentialities, intergral part, continous activity, co-operation, future oriented, challenging function.
Growing imp of HRM:automation, globalisation, information technology, quality concious, cut throat competition, impact of technology, growth of trade unions.
Objective of HRM: individual development, improve quality of service, maintain co ordination, maintain HRM, motivation, tean work, 2 achieve org goals, proper utilization of resources, good empo relation, empo satisfaction.
Function of HRM: managerial function-planning, organising, directing,controlling.
Operational function-selecting of manpower, develop of manpower, compensation payment, integration of manpower, maintainance of manpower, providing welfare facilities.
MEANING OF HRM: HRM is a management function that helps organization to recruit, select, train, develop and manage its members. Simply stated, HRM is all about management of people in the organization from Recruitment to Retirement. HRM refers to set of programs, functions, and activities designed and carried out in order to maximize both employee as well as organizational effectiveness.
Definition-“HRM is planning,organizing, directing and controlling of the procurement,development,compensation, integration,maintenance and separation of human resources to the end that individual, organizational and social objectives are accomplished.”
OBJECTIVES OF HRM 1. Organizational Objectives: To assist the organization to achieve its primary objectives, whether it is profit making or charity or social agenda.
2. Societal Objectives: To be responsive to the needs and challenges of the society while minimizing the negative impact, if any, of such demands upon the organization.
3. Functional Objectives: To maintain department’s contribution and level of services at a level appropriate to the organization’s needs.
4. Personal Objectives: To assist employees in achieving their personal goals, at least in so far as these goals enhance the individual’s contribution to the organization. This is necessary to maintain employee performance and satisfaction for the purpose of maintaining, retaining and motivating the employees in the organization.
SCOPE OF HRM-From Entry to Exit or Recruitment to Retirement of an employee in the organization
Following are the areas of operation of HRM:
1.Human Resource Planning
2.Job Analysis
3.Job Design
4.Recruitment & Selection
5.Orientation & Placement
6.Training & Development
7.Performance Appraisals
8.Job Evaluation
9.Employee and Executive Remuneration
10.Motivation
11.Communication
12.Welfare
13.Safety & Health
14.Industrial Relations
Based on the above activities, we can summarize the scope of HRM into following seven different categories:
1. Introduction to HRM
2. Employee Hiring
3. Employee and Executive Remuneration
4. Employee Motivation
5. Employee Maintenance
6. Industrial Relations
7. Prospects of HRM
ROLE OF HRM
1. Advisory Role: HRM advises management on the solutions to any problems affecting people, personnel policies and procedures.
(a)Personnel Policies: Organization Structure, Social Responsibility, Employment Terms & Conditions, Compensation, Career & Promotion, Training & Development and Industrial Relations.
(b)Personnel Procedures: Relating to manpower planning procedures, recruitment and selection procedures, and employment procedures, training procedures, management development procedures, performance appraisal procedures, compensation procedures, industrial relations procedures and health and safety procedures.
2. Functional Role: The personnel function formulates personnel policies in accordance with the company’s doctrine and management guidelines. It provides guidance to managers to help them ensure that agreed policies are implemented.
3. Service Role: Personnel function provides personnel services. These services constitute the main activities carried out by personnel department, like payroll, disciplinary actions, etc, and involve the implementation of the policies and procedures described above.
MANAGERIAL FUNCTIONS OF HRM
1. Planning: Research and plan about wage trends, labor market conditions, union demands and other personnel benefits. Forecasting manpower needs etc.
2. Organizing: Organizing manpower for the achievement of organizational goals and objectives.
3. Staffing: Recruitment & Selection
4. Directing: Issuance of orders and instructions, providing guidance and motivation to managers and employees.
5. Controlling: Regulating personnel activities and policies according to plans. Observations and comparisons of deviations
OPERATIONAL FUNCTIONS OF HRM
1. Procurement: Planning, Recruitment and Selection, Induction and Placement
2. Development: Training, Development, Career planning and counseling.
3. Compensation: Wage and Salary determination and administration
4. Integration: Integration of human resources with organization.
5. Maintenance: Sustaining and improving working conditions, retentions, employee communication
6. Separations: Managing separations caused by resignations, terminations, layoffs, death, medical sickness etc.
CHALLENGES OF HRM IN INDIAN ECONOMY
The job of HRM department in India has never been so challenging. Last decade has witnessed tectonic shift in Job market. From being an employer’s market, it has suddenly turned into employee’s market, especially in the most crucial segment, i.e. middle management. Globalization and India’s growing stature in the world has seen demand for Indian managers soaring. From the state of plenty, there is a stage of scarcity of the right talent. The biggest challenge is to retain the talent one has so assiduously hunted and trained. The attrition rate has reached alarming proportions. It has reached such proportions that certain segments of Industry are maintaining bench strengths to fill in the sudden gaps due to resignations. In addition, there are following new issues.
1. Globalization: Growing internationalization of business and workforce has its impact on HRM in terms of problems of unfamiliar laws, languages, practices, attitudes, management styles, work ethics and more. HR managers have a challenge to deal with more and more heterogeneous functions and more involvement in employee’s personal life.
2.Corporate Re-organizations: Liberalization has led to large-scale reorganization of businesses in terms of expansions, mergers and acquisitions, joint ventures, take over’s, and internal restructuring of organizations. In circumstances as dynamic and as uncertain as these, it is a challenge to manage employees’ anxiety, uncertainties, insecurities and fears.
3. New Organizational Forms:Exposure to international business and practices has led to change in the organizational structure and HR policies of the local companies. Take for instance, the hierarchical structure of Indian companies. Suddenly, Indian companies have begun to adopt flat hierarchical management structure. But to implement and grout such fundamental changes in management philosophy of any company is never easy. The challenge for HRM is to cope with the implications of these new relations in place of well established hierarchical relationships that existed within the organizations for ages in the past.
4. Changing Demographics of Workforce: Changes in workforce are largely reflected by dual career couples, large chunk of young blood with contrasting ethos of work among old superannuating employees, growing number of women in workforce, working mothers, more educated and aware workers etc. Thus, changing demography of workforce has its own implications for HR managers and a true challenge to handle.
5. Changed Employee Expectations: With the changes in workforce demographics, employee expectations and attitudes have also transformed. Traditional allurements like job security, house, and remunerations are not much attractive today. Rather, employees are demanding empowerment and equality with management. Hence, it is a challenge for HRM to redesign the profile of workers, and discover new methods of hiring, training, remunerating and motivating employees.
6. New Industrial Relations Approach: In the changed industrial climate, even trade unions have realized that strikes and militancy have lost their relevance and not many workers are willing to join them and disrupt work. However, the problems faced by workforce now have different dimension for the management. They manifest in the form of increased attrition rate. Unsatisfied employees instead of approaching the management for resolution, often take up the new job. The challenge before the HRM is find ways and means to feel the pulse of employees and address the issues on proactive basis.
7. Renewed People Focus: “Man behind the machine is most important than the machine”. This is an old doctrine of the Armed Forces. However, this doctrine has begun to gain acceptance in the corporate world and thus all out efforts to grab the best talent at whatever cost.
8. Managing the Managers: Managing the managers is most difficult. Armed with inside information, they cannot be lured with rosy promises. They are in great demand too with growth in economy. These are the people who are most mobile, attrition rate being highest for the junior and middle management level. The challenge of HRM is how to manage this tribe?
9. Weaker Section’s Interests: Another challenge for HRM is to protect the interest of weaker sections of society. The dramatic increase of women workers, minorities and other backward communities in the workforce, coupled with weakening of trade unions, has resulted in the need for organizations to re-examine their policies, practices and values. In the name of global competition, productivity and quality, the interests of the society around should not be sacrificed. It is a challenge of today’s HR managers to see that these weaker sections are neither denied their rightful jobs nor are discriminated while in service.
10. Contribution to the Success of Organizations: The biggest challenge to an HR manager is to make all employees contribute to the success of the organization in an ethical and socially responsible way. Because society’s well being to a large extent depends on its organizations.
HUMAN RESOURCE DEVELOPMENT
Human Resource Development is a process to help people to acquire competencies and to increase their knowledge, skills and capabilities for better performance and higher productivity.
Definition 1:
HRD is a process of enhancing the physical, mental and emotional capacities of individuals for productive work.
TEAM EFFECTIVENESS
Definition: A team is a small group of people who agree to work together for achieving a clear and identifiable set of goals.
Teams can be Very Effective.
A team is able to produce more than the sum of individuals working separately. A team benefits from complementing and sometimes contrasting abilities of its members. Teams can bring to bear a wider range of skills and experience to solve a problem. Teams often lead to better quality decisions as individual whims and prejudices are kept in check. Further, members of team have an obligation to each other and thus there is a moral force/binding to perform. Energy among the team members is very important. The team needs a clear sense of direction which the leader provides. Harmony and trust among the group members is utmost essential. In any group, conflicts are inevitable, however harmonious it may be. There has to be a well formulated policy for conflict management. Decision making is a source of potential conflicts. A well charted course for decision taking will be able to minimize such conflicts.
HUMAN RESOURCE PLANNING (H R P)
Human Resource Planning, as the name suggests, is the process of identification/ forecasting a firm’s future requirement of type and number of people in order to meet the organizational goals and objectives. It is a continuous process either due to fresh requirement of manpower owing to change/growth/diversification of business or due to attrition of manpower due to retirement, termination, death, disability or resignations.
Definition 1:
“HRP includes estimation of how many qualified people are necessary to meet the future business requirement, how many people will be available, and what, if anything, must be done to ensure availability of personnel equals the demand at all times in the future.”
Advantages of HRP/need/importance/role/benefits
Human resource planning can be defined as the process of identifying the number of people required by an organization in terms of quantity and quality. All human resource management activities start with human resource planning. So we can say that human resource planning is the principle/primary activity of human resource management.The process of HRP plays a very important role in the organization. The importance of HRP can be explained as follows.
1. Anticipating future requirement: - Thru this process of HRP, the company is able to find out how many people will be required in future. Based on this requirement the company could take further actions. This method also helps the company to identify the number of jobs which will become vacant in the near future.
2. Recruitment and selection process: - The recruitment and selection process is a very costly affair for a company. Many companies spend lakhs of rupees on this process. Therefore recruitment and selection must be carried out only if it is extremely necessary. HRP process helps to identify whether recruitment and selection are necessary or not.
3. Placement of personnel:-Since the HRP process is conducted for the entire organization we can identify the requirements for each and every department. Based on the requirement, we can identify existing employees and place them on those jobs which are vacant.
4. Performance appraisal:-HRP make performance appraisal more meaningful. Since feedback is provided in performance appraisal and employee is informed about his future chances in same company, the employee is motivated to work better. Information for all this is collected from HRP process.
5. Promotion opportunity: - HRP identifies vacancies in the entire organization including all the branches of all the company. Therefore when the company implements promotion policy it can undertake its activities in a very smooth manner.
NEED & IMPORTANCE OF HRP
Human Resource comes at a cost and generates profits. While excess of human resource will lead to unproductive costs, shortages of same will lead to idling of other resources and impede profit generation. Having the people is not enough. Each job needs specific skills and experience and only a certain trained personnel can do it effectively. Therefore, it is necessary that right kinds of people are hired for each job. Personnel requirement is never static. Manpower wastages in the organization keep taking place regularly due to retirement, injury, resignations, termination, etc. In addition, changes in the business environment, business model and plan, capacity/product changes, diversifications, etc, also generate need to review the human resource requirement of the organization. Changes in the Business Environment in the past one and half decade have led to relative scarcity of talented people. Right kinds of people are no more available at short notice. There is considerable time gap between identifying the need for manpower and filling the vacancy, sometimes stretching between 6 months to one year. Thus, it will help the company if the requirement is forecasted adequately in advance to enable hiring of right kind of personnel just in time so that neither the machines/other resource idle for want of manpower nor do the people idle. At the same time, there could be situations when there is spare manpower in the company. Company may have changed over to new technology productions and therefore all personnel trained in old machines may have become redundant and surplus. The “Exit Policy” for workers is not easy and they cannot be released at short notice. Re-training or retrenchment of personnel has to be planned in advance. In India services is growing at a fast pace. It has already overtaken agriculture and Industrial production sectors to become the biggest contributor to GDP. In service industry, human capital is the most important asset. HRP bears a disproportionate importance in this industry. Foundation of Personnel Functions:HRP provides for not only front line manpower but also caters for support staff requirement which are called Personnel “Functions” like recruitment, selection, personnel development, training and development etc. Large scale changes in frontline staff will have proportional changes in requirement of support staff as well which can be planned alongside.
HRP PROCESS
Organizational Objectives & Policies: Organizational objectives and policies give a clue to future requirement of manpower. A company planning expansion would require more manpower in near future. Kind of people required would be dictated by technology being planned for expansion. HRP needs to align hiring of people with these elements. In addition, company’s policies towards its manpower policies, like using internal resources for promotion or external resources or dependence on certain caste or region for some jobs have also to be catered for. Gujarati companies in diamond business hire only gujaraties. Similarly, certain Business Houses from Rajasthan prefer Rajasthanies. So, HRP process will be dictated by following organizational policies:
1.Internal Hiring or External Hiring?
2.Training & Development plans
3.Union Constraints
4.Job enrichment issues
5.Rightsizing organization
6.Automation needs
7.Continuous availability of adaptive and flexible workforce
Manpower Demand Forecasting: It is the process of estimating the future quantity and quality of people required. The basis should be long term corporate plans. Demand forecasting should be based on following factors.
Internal Factors: -
• Production levels
• New products and services
• Organizational structure
• Employee separation
• Budget constraints
External Factors:
• Economic climate
• Laws and regulatory bodies
• Technology changes
• Social Factors
• Legal requirements with regards to reservations
Manpower Supply Forecasting: This process measures the number of people likely to be available from within and outside the organization after making allowance for absenteeism, internal movements and promotions, wastages, changes in hours and other conditions of work.
Supply Analysis covers:
Existing Human Resources: HR Audits facilitate analysis of existing employees with skills and abilities. The existing employees can be categorized as skills inventories (non-managers) and managerial inventories (managers).
Skill inventory would include the following
• Personal data
• Skills
• Special Qualifications
• Salary
• Job History
• Company data
• Capabilities
• Special preferences
Management inventories would include the following:
• Work History
• Strengths• Weaknesses
• Promotion Potential
• Career Goals
• Personal Data
• Number and Types of Subordinates supervised
• Total Budget Managed
• Previous Management Duties
Internal Supply Assessment:
• Inflows and outflows (transfers, promotions, separations, resignations, retirements etc.)
• Turnover rate (No. Of separations p.a. / Average employees p.a. X 100)
• Conditions of work (working hours, overtime, etc.)
• Absenteeism (leaves absences)
• Productivity level
• Job movements (Job rotations or cross functional utilizations)
External Supply Assessment: External sources are required for following reasons
• New blood,
• New experiences
• Replenish lost personnel
• Organizational growth
• Diversification
External sources can be colleges and universities, consultants, competitors and unsolicited applications.
CAREER PLANNING
Career as a concept means a lifelong sequences of professional, educational and developmental experiences that an individual goes through in his working life. It is a sequence of positions occupied by a person during his life. Career planning is the process of identifying an individual’s strengths, weaknesses, aptitudes, inclinations, aspirations and attitudes and designing his job responsibilities to take maximum advantages of positive traits and minimizing the effect negatives traits. After identifying the personality traits of the individual then begins the process of identifying suitable job billets for him. It may also involve training at times to strengthen his weak areas. Career planning is a process of integrating the employees’ needs and aspirations with organizational requirements.
A typical succession planning involves the following activities:
1. Analysis of the demand for managers and professionals by company level, function and skill.
2. Audit of existing executives and projection of likely future supply from internal and external sources.
3. Planning of individual career paths based on objective estimates of future needs and drawing on reliable performance appraisals and assessments of potential.
4. Career counseling undertaken in the context of a realistic understanding of the future needs of the firm as well as those of the individual.
5. Accelerated promotions with development targeted against the future needs of the business.
6. Performance related training and development to prepare individuals for future roles as well as current responsibilities
7. Planned strategic recruitment not only to fill short term needs but also to provide people for development to meet future needs
8. The actual activities by which openings are filled
JOB ANALYSIS
Definition 1
“Job Analysis is a process of collecting and studying the information relating to operations and responsibilities of a specific job. The immediate products of this analysis are ‘Job Description’ and ‘Job Specifications’.”
PURPOSE OF JOB ANALYSIS: -
•Human Resource Planning (HRP): Job analysis helps in determining staffing needs, type, quality and quantity.
•Recruitment & Selection: Knowing the staffing needs is essential for Recruitment and Selection – Right person for each job. Sourcing of recruits also becomes easy and cost effective
•Training & Development: Job analysis is the key to determining Training and Development programs.
•Job Evaluation: Job evaluation means determination of relative worth of each job for the purpose of establishing wage and salary. This is possible with the help of job description and specifications i.e. Job Analysis.
•Remuneration: Job analysis also helps in determining wage and salary for the jobs.
•Performance Appraisal:Job analysis helps in fixing the bench marks of performance standards which in turn help in objective Performance appraisal, rewards, promotions, etc.
•Safety & Health: Job Analysis helps to uncover hazardous conditions and unhealthy environmental factors so that corrective measures can be taken to minimize and avoid possibility of human injury.
JOB DESCRIPTION
“Job Description implies objective listing of the job title, tasks, and responsibilities involved in a job.”Job description is a word picture of the duties, responsibilities and organizational relationships that constitutes a given job or position. It defines work assignment and a scope of responsibility that are sufficiently different from those of the other jobs to warrant a specific title. Job description is a broad statement of purpose, scope, duties and responsibilities of a particular job.
Contents of Job Description
1. Job Identification
2. Job Summary
3. Job Duties and Responsibilities4. Supervision specification
5. Machines, tools and materials
6. Work conditions
7. Work hazards8. Definition of unusual terms
Format of Job Description
1. Job Title
2. Region/Location
3. Department
4. Reporting to (Operational and Managerial)
5. Objective
6. Principal duties and responsibilities
JOB SPECIFICATIONS
“Job Specification involves listing of qualifications, skills and abilities required in an employee to meet the job description. These specifications are minimum required to do the job satisfactorily.”
In other words, it is a statement of minimum acceptable physical/psychological attributes and professional skills necessary to perform the job properly. Job specifications seek to indicate kind of persons who can be expected to meet the role requirements. Thus, it is basically concerned with matters of selection, screening and placement and is intended to serve as a guide in hiring.
Contents of Job Specifications
1. Physical Characteristics
2. Psychological characteristics
3. Personal characteristics
4. Educational Qualifications
5. Skill Set and Experience/Responsibilities
6. Demographic features
Job specifications can be further divided into three broad categories
1. Essential Attributes
2. Desirable Attributes
3. Contra-Indicators – Attributes which are likely to act as impediments to success of job
JOB EVALUATION
Job evaluation is the process of analyzing and assessing various jobs systematically to ascertain their relative worth in an organization.
Job Evaluation involves determination of relative worth of each job for the purpose of establishing wage and salary differentials. Relative worth is determined mainly on the basis of Job Description and Job Specification only. Job Evaluation helps to determine wages and salary grades for all jobs. Employees need to be compensated depending on the grades of jobs they perform. Remuneration must be based on the relative worth of each job. Ignoring this basic principle results in inequitable compensation and attendant ill effects on employees’ morale. A perception of inequity is a sure way of de-motivating an employee.
Jobs are evaluated on the basis of content and placed in order of importance. This establishes Job Hierarchies, which becomes the basis for satisfactory wage differentials among various jobs.
Jobs are ranked (not jobholders)
PROCESS OF JOB EVALUATION:
1. Defining objectives of job evaluation
(a)Identify jobs to be evaluated (Benchmark jobs or all jobs)
(b)Who should evaluate job?
(c)What training do the evaluators need?
(d)How much time involved?
(e)What are the criteria for evaluation?(f)Methods of evaluation to be used
2. Wage Survey
3. Employee Classification
4. Establishing wage and salary differentials.
METHODS OF JOB EVALUATION
1. Analytical Methods
(a)Point Ranking Methods: Different factors are selected for different jobs with accompanying differences in degrees and points.
(b)Factor Comparison Method: The important factors are selected which can be assumed to be common to all jobs. Each of these factors is then ranked with other jobs. The worth of the job is then taken by adding together all the point values.
2. Non-Analytical Methods(a)Ranking Method: Jobs are ranked on the basis of their title or contents. Like Managers, Supervisors, Workers, Peon, etc. All managers whether from production, planning, sales, stores or Allied Services (House Keeping) Dep’t are treated equal. Job is not broken down into factors etc. It is easier to implement but not always satisfactory for the employees.
(b)Job Grading Method: It is based on the job as a whole and the differentiation is made on the basis of job classes and grades. Like in a hotel, Receptionist’s job may be graded higher than back office billing clerk’s job. Similarly, a production/sales manager billet may be graded higher than Allied Services Manager’s. In this method it is important to form a grade description to cover discernible differences in skills, importance to company’s core operations, responsibilities and other characteristics.
DISADVANTAGES OF JOB EVALUATION:
1. Sometimes encourages employees to manipulate for promotion/internal placement when there may be limited opportunities for enhancement as a result of downsizing.
2. It promotes internal focus (office politics) instead of customer orientation
3. Not suitable for forward looking organizations, which may have trimmed multiple job titles into two or three broad jobs.
JOB DESIGN
In the most simplified form - The process of breaking/organizing work into specific tasks in order to perform a specific job is called Job Design. Job Design is the logical Sequence to Job Analysis. Job design involves conscious efforts to organize tasks, duties and responsibilities into a unit of work to achieve certain objective.
Steps in Job Design1. Specification of Individual Tasks
2. Specification of Methods for Tasks Performance
3. Combination of Tasks into Specific Jobs to be assigned to individuals
FACTORS AFFECTING JOB DESIGN
1. Organizational factors
(a)Characteristics of Tasks (Planning, Execution and Controlling of Task)
(b)Work Flow (Process Sequences)
(c)Ergonomics (Time & Motion Study)
(d)Work Practices (Set of ways of performing tasks)
2. Environmental Factors
(a)Employee Abilities and Availability
(b)Social and Cultural Expectations
3. Behavioral Elements
(a)Feedback
(b)Autonomy
(c)Use of Abilities
(d)Variety
TECHNIQUES OF JOB DESIGN
1. Work Simplification: Job is simplified or specialized. The job is broken down into small parts and each part is assigned to an individual. To be more specific, work simplification is breaking down the job to such small tasks that complexity is taken out of them. Like in an assembly line of car, one person only tightens wheel nuts with a pneumatic tool which tighten the nuts. The complexity of ensuring that each nut is tightened to required degree has been transferred to machine and the worker only applies the tool to the right place. He does not even put the wheel in place. In such cases, work becomes repetitive in nature. Work simplification is used when jobs are not specialized.
2. Job Rotation: Same job, same people, same surrounding, days over days, months over months, leads to boredom and even fatigue. And it manifests in higher error rate, fall in productivity, absenteeism, job hopping, etc. Job rotation is answer to such problems. While broadly the job may remain same, minor variations between jobs are enough to rejuvenate the employee. It not only benefits the personnel but also the organization in equal measure
(a)Benefit to the Employee. It is a development tool since the employees get exposure to several jobs which develop their personality and employability. It improves their self-image and leads to personal growth. Such cross functional deployments often reveal hidden performance potentials/skills of many employees in the course of new job.
(b)Benefits to the Company: Such cross functional knowledge of employees provides the company with a fall back option in case of absence of any employee. It also gives flexibility to the management to reorganize the functional setup just in case of need like demand pattern shift or change in business model or any other eventuality. Also, periodic job rotation is the best method to avoid compartmentalization of departments. Movement of personnel between departments and firsthand knowledge of limitations and problems faced by other departments reduces frictions and leads to better cooperation between them. Interpersonal bonds developed during in the course of such cross functional job rotation further smoothens the interaction between departments. On the negative side, training costs rise and it can also de-motivate intelligent and ambitious trainees who might take it as their undesirability in their own department unless it is well laid down policy of the company.
3. Job Enlargement: It means expanding the number of tasks, or duties assigned to a given job. Job enlargement is naturally opposite to work simplification. Adding more tasks or duties to a job does not necessarily mean that new skills and abilities are needed. There is only horizontal expansion. It is with same skills taking additional responsibilities like increasing the number of machines operators under a supervisor from 10 to 15. Job enlargement may involve breaking up of the existing work system and redesigning a new work system. For this employees also need to be trained to adjust to the new system. Job enlargement is said to contribute to employee motivation but the claim is not validated in practice.
4. Job Enrichment: Job enrichment is to add a few more motivators to a job to make it more rewarding. A job is enriched when the nature of the job is exciting, challenging, rewarding and creative or gives the job holder more decision-making, planning and controlling powers. An enriched job will have more authority, responsibility, autonomy (vertical enrichment), more variety of tasks (horizontal enrichment) and more growth opportunities. The employee does more planning and controlling with less supervision but more self-evaluation. For example: transferring some of the supervisor’s tasks to the employee and making his job enriched. As per Hertzberg, who was the father of this term, an enriched job has eight characteristics:
(a)Direct Feedback: Employee should be able to get immediate knowledge of the results they are achieving.
(b)Client Relationship: An employee who serves a client or customer directly has an enriched job. The client can be outside or inside the firm.
(c)New Learning: An enriched job allows its incumbent to feel that he is growing intellectually.
(d)Scheduling Own Work: Freedom to schedule own work (autonomy) is job enrichment.
(e)Unique Experience: An enriched job has some unique qualities or features.
(f)Control over Resources: One approach to Job enrichment is for the each employee to have control over his or her resources and expenses.
(g)Direct Communication Authority: An enriched job allows worker to communicate directly with people who use his or her output.
(h)Personal Accountability: An enriched job holds the incumbent responsible for the results. He or she receives praise for good work and blame for poor work.
Problems with Job Enrichment
(a)Job enrichment is not a substitute for good governance. If other environmental factors in the business are not right, mere job enrichment will not mean much.
(b)Job enrichment may have short term negative effects till the worker gets used to the new responsibility.
(c)Job enrichment itself might not be a great motivator since it is job-intrinsic factor. As per the two-factor motivation theory, job enrichment is not enough. It should be preceded by hygienic factors etc.
(d)Job enrichment assumes that workers want more responsibilities and those workers who are motivated by less responsibility, job enrichment surely de-motivates them
(e)Workers participation may affect the enrichment process itself.
(f)Change is difficult to implement and is always resisted as job enrichment brings in a changes the responsibility.
5. Autonomous or Self-Directed Teams: Empowerment results in self-directed work teams. A self-directed team is a group of employees responsible for a whole work segment. They work together, handle day-to-day problems, plan and control, and are highly effective team.
JOB SATISFACTION-Job satisfaction is self satisfaction derived by an employee in doing the job he has been entrusted to do. Job satisfaction is more a function of the various attitudes possessed by an employee towards his job, related factors and life in general than the job itself. The attitudes related to job may be wages, supervision, steadiness, working conditions, advancement opportunities, recognitions, fair evaluation of work, social relations on job, prompt settlement of grievances etc. A person with a kind heart will find high level of job satisfaction in working with some agency involved in charitable work though the salary might be relatively less. An over ambitious person will never find the job satisfaction. In short job satisfaction is a general attitude towards the job, which is the result of many specific attitudes in three areas namely, job factors, individual characteristics and group relationships outside the job.
COMPONENTS OF JOB SATISFACTIONPersonal factors: Sex, Dependents, Age, Timings, Intelligence, Natural affinity towards the job, Education and Personality.
Job Inherent Factors: Nature of work, Skills, Occupational status, Geography, etc.
Management Controlled Factors: Security, Payment, Fringe benefits, Advancement opportunities and Working conditions, Co-workers, Responsibilities, Supervision
RECRUITMENT
Definition:
“Recruitment is the process of finding and attracting capable applicants for a job to create a pool from which selection is to be made of the most suitable candidates”.
The Process begins when new recruits are sought and ends when their applications are submitted. Though theoretically recruitment process is said to end with the receipt of applications, in practice, the activity extends to the screening of applications so as to eliminate those who are not qualified for the job. The result is a pool of applicants from which selections for new employees are made.”
PURPOSE AND IMPORTANCE
1. To broad base the applicant pool in order to get the right talent at the affordable cost.
2. Increase the pool of job candidates at minimum cost
3. Help increase success rate of selection process by reducing number of under-qualified or over-qualified applications.
4. Meet legal and social obligations
5. Identify and prepare potential job applicants
FACTORS AFFECTING RECRUITMENT
External Factors:
1. Demand and Supply status of specific skills set.
2. Unemployment Rate (Area-wise)
3. Labor Market Conditions
4. Political and Legal Environment (Reservations, Labor laws)
5. Company’s Image
Internal Factors:
1. Recruitment Policy (Internal Hiring or External Hiring?)
2. Human Resource Planning (Planning of resources required)3. Size of the Organization (Bigger the size lesser the recruitment problems)
4. Cost
5. Growth and Expansion Plans
RECRUITMENT PROCESS
1. Recruitment Strategy Development
(a)Trained or untrained (to be trained at company’s expense)
(b)Internal or external sourcing
Internal Recruitment (Source 1)
1. Present employees
2. Employee referrals
3. Transfers & Promotions
4. Former Employees
5. Previous Applicants
External Recruitment (Source 2)
(i) Professionals or Trade Associations
(ii) Advertisements
(iii) Employment Exchanges
(iv) Campus Recruitment
(v) Walk-ins Interviews
(vi) Consultants
(vii) Contractors
(viii) Displaced Persons
(ix) Radio & Television
(x) Acquisitions & Mergers
(c) Competitors
(d) Technological tools to be used for advertising
(e) Where to look
(f) How to look
Internal sources of recruitment: - Internal sources of recruitment refer to obtaining people for job from inside the company. There are different methods of internal recruitment1. Promotion:- Companies can give promotion to existing employees. This method of recruitment saves a lot of time, money and efforts because the company does not have to train the existing employee. Since the employee has already worked with the company. He is familiar with the working culture and working style. It is a method of encouraging efficient workers.
2. Departmental exam :- This method is used by government departments to select employees for higher level posts. The advertisement is put up on the notice board of the department. People who are interested must send their application to the HR department and appear for the exam. Successful candidates are given the higher level job. The method ensures proper selection and impartiality.
3. Transfer:- Many companies adopt transfer as a method of recruitment. The idea is to select talented personnel from other branches of the company and transfer them to branches where there is shortage of people.
4. Retirement :- Many companies call back personnel who have already retired from the organization. This is a temporary measure. The method is beneficial because it gives a sense of pride to the retired when he is called back and helps the organization to reduce recruitment selection and training cost.
5. Internal advertisement:- In this method vacancies in a particular branch are advertised in the notice board. People who are interested are asked to apply for the job. The method helps in obtaining people who are ready to shift to another branch of the same company and it is also beneficial to people who want to shift to another branch.
6. Employee recommendation :- In this method employees are asked to recommend people for jobs. Since the employee is aware of the working conditions inside the company he will suggest people who can adjust to the situation. The company is benefited because it will obtain.
External methods/sources of recruitment: External sources of recruitment refer to methods of recruitment to obtain people from outside the company. These methods are
1. Management consultant: - Management consultant helps the company by providing them with managerial personnel, when the company is on the lookout for entry level management trainees and middle level managers. They generally approach management consultants.
2. Employment agencies:- Companies may give a contract to employment agencies that search, interview and obtain the required number of people. The method can be used to obtain lower level and middle level staff.
3. Campus recruitment: - When companies are in search of fresh graduates or new talent they opt for campus recruitment. Companies approach colleges, management, technical institutes, make a presentation about the company and the job and invite applications. Interested candidates who have applied are made to go through a series of selection test and interview before final selection.
4. News paper advertisement: - This is one of the oldest and most popular methods of recruitment. Advertisements for the job are given in leading news papers the details of the job and salary are also mentioned. Candidates are given a contact address where their applications must be sent and are asked to send their applications within a specified time limit. The method has maximum reach and most preferred among all other methods of recruitment.
5. Internet advertisement:- With increasing importance to internet, companies and candidates have started using the internet as medium of advertisement and search for jobs. There are various job sites like naukri.com and monster.com etc. candidates can also post their profiles on these sites. This method is growing in popularity.
6. Walk in interview:- Another method of recruitment which is gaining importance is the walk in interview method. An advertisement about the location and time of walk in interview is given in the news paper. Candidates require to directly appearing for the interview and have to bring a copy of their C.V. with them. This method is very popular among B.P.O and call centers.
2. Recruitment Planning
(a) Number of applicants sought (Based on past experience)
(b) Types of applicants to be called (Qualification, category, area, etc)
3. Searching
(a) Source activation
(b) Selling
4. Screening of Applications
5. Evaluation and Cost Control
(a) Salary Cost
(b) Management & Professional Time spent
(c) Advertisement Cost(d) Producing Supporting literature
(e) Recruitment Overheads and Expenses(f) Cost of Overtime and Outsourcing
(g) Consultant’s fees
EVALUATION OF RECRUITMENT PROCESS
1. Return rate of each source of recruitment
2. Selection rate from each source
3. Retention and Performance of selected candidates
4. Recruitment Cost
5. Time lapsed data
6. Image projection
SELECTIONMEANING OF SELECTION
Selection is the process of picking up individuals (out of the pool of job applicants) with requisite qualifications and competence to fill jobs in the organization. A formal definition of Selection is as under:
“Selection is the process of differentiating between applicants in order to identify and hire those with a greater likelihood of success in a job.”
Process of selection: - The process of selection is different in different companies however a general procedure of selection can be framed. This process of selection can be explained with the help of following diagram
1. Job analysis: - The very first step in the selection procedure is the job analysis. The HR department prepares the job description and specification for the jobs which are vacant. This gives details for the jobs which are vacant. This gives details about the name of the job, qualification, qualities required and work conditions etc.
2. Advertisement:- Based on the information collected in step 1, the HR department prepares an advertisement and publishes it in a leading news papers. The advertisement conveys details about the last date for application, the address to which the application must be sent etc.
3. Application blank/form: - Application blank is the application form to be filled by the candidate when he applies for a job in the company. The application blank collects information consisting of 4 parts- 1) Personal details 2) Educational details 3) Work experience 4.Family background.
5. Written test: - The applications which have been received are screened by the HR department and those applications which are incomplete are rejected. The other candidates are called for the written test. Arrangement for the written test is looked after the HR department i.e. question papers, answer papers, examination centers and hall tickets etc.6. Interview: - Candidates who have successfully cleared the test are called for an interview. The entire responsibility for conducting the interview lies with the HR department i.e. they look after the panel of interviewers, refreshments, informing candidates etc.
7. Medical examination: - The candidates who have successfully cleared the interview are asked to take a medical exam. This medical exam may be conducted by the organization itself (army). The organization may have a tie up with the hospital or the candidate may be asked to get a certificate from his family doctor.
8.Initial job offer:- Candidates who successfully clear the medical exam are given an initial job offer by the company stating the details regarding salary, terms of employment, employment bond if any etc. The candidate is given some time to think over the offer and to accept or reject.
9. Acceptance/ rejection: - Candidates who are happy with the offer send their acceptance within a specified time limit to show that they are ready to work with the company.
10. Letter of appointment/final job offer: - Candidates who send their acceptance are given the letter of appointment. The letter will state the name of the job. The salary and other benefits, number of medical leaves and casual leaves, details of employment bond if any etc. It will also state the date on which the employee is required to start duty in the company.
11. Induction: - On the date of joining the employee is introduced to the company and other employees through am elaborate induction program.
GOOD SELECTION PRACTICE: ESSENTIALS
1.Detailed Job Descriptions and Job Specifications prepared in advance and endorsed by personnel and line management should be available with Selection Board.
2.Train the selectors to assess the right attributes in applicants.
3.Determine aids to be used for selection process.
4.Check competence of recruitment consultants before hiring their services.
5.Involve line managers at all stages
6.Attempt to validate the procedure regularly
7.Help the appointed candidate to succeed by training and management developmentTypes of selection test: Different selection test are adopted by different organization depending upon their requirements. These tests are specialized test which have been scientifically tested and hence they are also known as scientific test. Different types of test can be explained with the help of following diagram,
I.Aptitude test:- Aptitude tests are test which assess the potential and ability of a candidate. It enables to find out whether the candidate is suitable for the job. The job may be managerial technical or clerical. The different types of aptitude test are
a.Mental ability/mental intelligence test:- This test is used to measure the overall intelligence and intellectual ability of the candidate to deal with problems. It judges the decision making abilities.
b.Mechanical aptitude test:-This test deals with the ability of the candidate to do mechanical work. It is used to judge and measure the specialized knowledge and problem solving ability. It is used for technical and maintenance staff.
c.Psycho motor test:-This test judges the motor skills the hand and eye co-ordination and evaluates the ability to do jobs lie packing, quality testing, quality inspection etc.
II.Intelligence test:-This test measures the numerical skills and reasoning abilities of the candidates. Such abilities become important in decision making. The test consists of logical reasoning ability, data interpretation, comprehension skills and basic language skills.
III.Personality test:-In this test the emotional ability or the emotional quotient is tested. This test judges the ability to work in a group, inter personal skills, ability to understand and handle conflicts and judge motivation levels. This test is becoming very popular now days.
IV.Performance test:- This test judges and evaluates the acquired knowledge and experience of the knowledge and experience of the individual and his speed and accuracy in performing a job. It is used to test performance of typist, data entry operators etc.
BARRIERS TO EFFECTIVE SELECTION
1.Perception: We all perceive the world differently. Our limited perceptual ability is obviously a stumbling block to the objective and rational assessment of people.
2.Fairness: Barriers of fairness includes discrimination against religion, region, caste, race or gender, etc.
3.Plethora of Human Traits:Success in any job is more a function of attitude than aptitude. The tests are validated over a period of time to differentiate between the employees who can perform well and those who will not. Yet, no test can claim 100% success in finding the right employee.
4.Pressure: Pressure brought on selectors by management, politicians, bureaucrats, relatives, friends and peers to select particular candidate are also barriers to effective selection.
5.Time and Cost: Often the time and funds available to undertake selection process are limited forcing the selectors to forego certain tests.
TRAINING & DEVELOPMENT
Training and development, though are spoken in the same breadth, are quite different. Training generally refers to teaching of new skill in professional field of the employee. Like an employee being taught to operate another machine, or to perform a new operation in the same machine. Development refers to enhancement of personal qualities of the employee which do not have a one to one relationship with his current job. It may be to help an employee to grow. Like stress management techniques, yoga lessons, meditation exercises, soft skills training, etc. While training is expected to reward the company immediately in terms of better productivity of employee, Development does not lead to any immediate and tangible benefits to the company. At the best, there might be some intangible benefits in the long run, like improved motivation, loyalty, improved intra-departmental relations, reduced absenteeism on medical ground, etc.
Dividing line between training and development is expectation of immediate benefits. Thus, in case a program, generally qualifying as development program, is directly related to employee’s job skills, like Communication Skills course for telephone attendant or receptionist, will qualify as training and not as development. Same program for someone in back office would be termed as Development program.
Education: It is a theoretical learning in classrooms. The purpose of education is to teach theoretical concepts and develop a sense of reasoning and judgment. Any training and development program must contain an element of education.
Definition of Training & Development
“Training & Development is any attempt to improve current or future employee performance by improving his performance capabilities and potential through learning, usually by changing the employee’s attitude or increasing his or her skills and knowledge.”
The need for Training and Development is determined by the employee’s performance deficiency, computed as follows.
Training & Development Need = Standard Performance – Actual Performance
Objectives/purpose/goals of training and development
Training is defined by Wayne Cascio as “training consists of planed programs undertaken to improve employee knowledge, skills, attitude, and social behavior so that the performance of the organization improves considerably.”
The purpose of training and development can be explained as follows.
1.Improving quality of work force:- Training and development help companies to improve the quality of work done by their employees. Training programs concentrate on specific areas. There by improving the quality of work in that area.
2.Enhance employee growth:-Every employee who takes development program becomes better at his job. Training provides perfection and required practice, therefore employee’s area able to develop them professionally.
3.Prevents obsolescence:-Through training and development the employee is up to date with new technology and the fear of being thrown out of the job is reduced.
4.Assisting new comer:-Training and development programs greatly help new employees to get accustomed to new methods of working, new technology, the work culture of the company etc.
5.Bridging the gap between planning and implementation
lans made by companies expect people to achieve certain targets within certain time limit with certain quality for this employee performance has to be accurate and perfect. Training helps in achieving accuracy and perfection.
6.Health and safety measures:- Training and development program clearly identifies and teaches employees about the different risk involved in their job, the different problems that can arise and how to prevent such problems. This helps to improve the health and safety measures in the company.
OBJECTIVES OF MANAGEMENT DEVELOPMENT PROGRAMS (MDP)
1. To make the managers
• Self-starters
• Committed
• Motivated
• Result oriented
• Sensitive to environment
• Understand use of power
2. Creating self awareness
3. Develop inspiring leadership styles
4. Instill zest for excellence
5. Teach them about effective communication
6. To subordinate their functional loyalties to the interests of the organization
IMPORTANCE OF TRAINING & DEVELOPMENT
1. Helps remove performance deficiencies in employees
2. Greater stability, flexibility and capacity for growth in an organization
3. Accidents, scraps and damages to machinery can be avoided
4. Serves as effective source of recruitment
5. It is an investment in HR with a promise of better returns in future
6. Reduces dissatisfaction, absenteeism, complaints and turnover of employees
IDENTIFICATION OF TRAINING NEEDS
Individual Training Needs Identification
1. Performance Appraisals
2. Interviews
3. Questionnaires
4. Attitude Surveys
5. Training Progress Feedback
6. Work Sampling
7. Rating Scales
Group Level Training Needs Identification1. Organizational Goals and Objectives
2. Personnel / Skills Inventories
3. Organizational Climate Indices
4. Efficiency Indices
5. Exit Interviews
6. MBO / Work Planning Systems
7. Quality Circles
8. Customer Satisfaction Survey
9. Analysis of Current and Anticipated Changes
Benefits of Training Needs Identification
1. Trainers can be informed about the broader needs in advance
2. Trainers Perception Gaps can be reduced between employees and their supervisors
3. Trainers can design course inputs closer to the specific needs of the participants
4. Diagnosis of causes of performance deficiencies can be done
METHODS OF TRAINING
On the Job Trainings (OJT): When an employee learns the job in actual working site in real life situation, and not simulated environment, it is called OJT. Employee learns while working. Take the instance of roadside mechanics. Small boys working there as helpers learn while helping the head mechanic. They do not learn the defect analysis and engine repairing skills in any classroom on engine models.
On the job method :- (5 marks)
On the job method refers to training given to personnel inside the company. There are different methods of on the job training.
1.Job rotation :- This method enables the company to train managerial personnel in departmental work. They are taught everything about the department. Starting from the lowest level job in the department to the highest level job. This helps when the person takes over as a manager and is required to check whether his juniors are doing the job properly or not. Every minute detail is studied.
2.Planned progression :- In this method juniors are assigned a certain job of their senior in addition to their own job. The method allows the employee to slowly learn the job of his senior so that when he is promoted to his senior job it becomes very easy for him to adjust to the new situation. It also provides a chance to learn higher level jobs.
3.Coaching and counseling :- Coaching refers to actually teaching a job to a junior. The senior person who is the coach actually teaches his junior regarding how the work must be handled and how decisions must be taken, the different techniques that can be used on the job, how to handle pressure. There is active participation from the senior. Counseling refers to advising the junior employee as and when he faces problems. The counselor superior plays an advisory role and does not actively teach employees.
4.Under study :-In this method of training a junior is deputed to work under a senior. He takes orders from the senior, observes the senior, attends meetings with him, learns about decision making and handling of day to day problems. The method is used when the senior is on the verge of retirement and the job will be taken over by the junior.
5.Junior board :- In this method a group of junior level managers are identified and they work together in a group called junior board. They function just like the board of directors. They identify certain problem, they have to study the problem and provide suggestions. This method improves team work and decision making ability. It gives an idea about the intensity of problem faced by the company. Only promising and capable junior level managers are selected for this method.
Advantages of On-the-Job Training:
1. It is directly in the context of job
2. It is often informal
3. It is most effective because it is learning by experience
4. It is least expensive
5. Trainees are highly motivated
6. It is free from artificial classroom situations
Disadvantages of On-the-Job Training:
1. Trainer may not be experienced enough to train or he may not be so inclined.
2. It is not systematically organized
3. Poorly conducted programs may create safety hazards
Off the Job Training: Trainings conducted in simulated environments, classrooms, seminars, etc are called Off the Job Training.
Advantages of Off-the-Job Training
1. Trainers are usually experienced enough to train
2. It is systematically organized3. Efficiently created programs may add lot of value
Disadvantages of Off-the-Job Training:
1. It is not directly in the context of job
2. It is often formal
3. It may not be based on experience.
4. It is expensive.
5. Trainees may not be much motivated
6. It is artificial in nature
“Off the Job Training” Methods
1.Classroom Lectures:Advantage – It can be used for large groups. Cost per trainee is low. Disadvantages – Low interest of employees. It is not learning by practice. It is One-way communication. No authentic feedback mechanism. Likely to lead to boredom for employees.
2.Audio-Visual: It can be done using Films, Televisions, Video, and Presentations etc. Advantages – Wide range of realistic examples, quality control possible. Disadvantages – One-way communication, No feedback mechanism. No flexibility for different audience.
3.Simulation: Creating a real life situation for decision-making and understanding the actual job conditions give it. Ensures active participation of all trainees. Can be very effective but needs good conductors.
4.Case Studies: It is a written description of an actual situation in the past in same organization or somewhere else and trainees are supposed to analyze and give their conclusions in writing. This is another excellent method to ensure full and whole hearted participation of employees and generates good interest among them. Case is later discussed by instructor with all the pros and cons of each option. It is an ideal method to promote decision-making abilities within the constraints of limited data.
5.Role Plays: Here trainees assume the part of the specific personalities in a case study and enact it in front of the audience. It is more emotional orientation and improves interpersonal relationships. Attitudinal change is another result. These are generally used in MDP.
6.Sensitivity Trainings:This is more from the point of view of behavioral assessment as to how an individual will conduct himself and behave towards others under different circumstances. There is no pre-planned agenda and it is instant. Advantages – increased ability to empathize, listening skills, openness, tolerance, and conflict resolution skills. Disadvantage – Participants may resort to their old habits after the training.
7.Programmed Instructions: Provided in the form of blocks either in book or a teaching machine using questions and feedbacks without the intervention of trainer. Advantages – Self paced, trainees can progress at their own speed, strong motivation for repeat learning, and material is structured and self-contained. Disadvantages – Scope for learning is less cost of books, manuals or machinery is expensive.
8.Computer Aided Instructions:It is extension of PI method, by using computers. Advantages – Provides accountabilities, modifiable to technological innovations, flexible to time. Disadvantages – High cost.
9.Laboratory Training.
INDUCTION & ORIENATION
Induction and Orientation are the procedure that a new employee has to go through in the organization. Every employee starting from the lower most, say, from peon to CEO, need orientation course when they join the organization? A new employee carries with him a lot of apprehension about place, job, colleagues, organizational culture, and so on. On the day of reporting, he needs to know his office/work place, routine, amenities, functional and reporting channels, etc.
Definition
“It is a Planned Introduction of employees to their jobs, their co-workers and the organization per se.”
Difference between Induction and Orientation
Induction refers to formal training programs that an employee has to complete before he is put on job. Like in Military, before a new recruit is sent to border, he is trained for a few months in Drill/Parade, physical fitness, weapon handling, etc. This is called Induction.
Orientation is the information given to the new employees to make him aware of the comfort issues - where the facilities are, what time lunch is, who are the people he would be working with and so forth.
Orientation conveys following information:
1. Organization’s geography/layout
2. Organizational set up (Structure)
3. Daily Work Routine
4. Organization Profile, History, Objectives, Products and Services, etc
5. Introduction to colleagues/immediate superiors and subordinates.
6. Importance of Jobs to the organization
7. Detailed Orientation Presentation covering policies, work rules and employee benefits.
TYPES OF ORIENTATION PROGRAMS
1.Formal or Informal: In informal orientation, new employees are put on the jobs and they are expected to acclimatize themselves with the work and the organization. In contrast, in formal orientation, an employee goes through a structured introduction programme.
2.Individual or Collective: Another choice is to be made whether new employees are to be inducted in group or individually.
3.Serial or Disjunctive: Orientation becomes serial when the person relinquishing the post hands over the position to the new incumbent. It becomes disjunctive when the new employee occupies a vacant position with no one to hand him over the position. He learns the prevalent practices and history slowly from his subordinates and superiors on gradual basis.
4.Investiture or Divestiture: This is the final strategic choice which relates to decision regarding allowing the new employees to affect the organization with his identity/ideas/functional methods or asking him to modify his identity to merge with existing culture of the organization. This is more applicable to high positions that may have been hired with a view to bring in their experiences and methods of management to the organization.
5.Define placement :- Companies conduct recruitment and selection and finally select employees. The employees undergo an induction program. After the induction program is over the employee is given a specific job in the company. This is called placement.
CHANGE MANAGEMENT
Change Management is a Critical HR Professional Skill
Definitions:
1. The adoption of a new idea or behavior by an organization.
2. Alterations in People, Structure and Technology
Change has become inevitable due to: -
(a) Technology
(b) Competition
(c) Growing customer needs
(d) Environment
(e) Politics
EXTERNAL FORCES OF CHANGE
1. Marketplace
2. Labor markets
3. Economic Changes
4. Technology
5. Laws and Regulations
INTERNAL FORCES OF CHANGE
1. Corporate Strategies2. Workplace
3. Technology and Equipments
4. Employee Attitudes
HOW TO REDUCE WORKPLACE STRESS
Biggest source of stress is Uncertainty. Quite often worst of the result is less painful than the anxiety waiting for it. If you can reduce uncertainty, stress will automatically reduce. However, reducing uncertainty is not always possible. Some of these methods can be employed to reduce work place stress: -
1.Organizational communication: Clear and prompt communication of policies and decisions can help in keeping the stress within manageable limits.
2.Performance Assessment is another source of anxiety. Clear predefined performance parameters will take the uncertainty out of assessment and also anxiety.
3.Job Redesign, especially when processes change, jobs merging, and relocation happens
4.Employee Counseling
5.Time management programs for employees: In the busy life of today, time management is another source of stress for a lot of employees. Time management programs will allow them to fill in more events into their daily life and reduce stress.
PERFORMANCE APPRAISALS
Performance Appraisals is the assessment of individual’s performance in a systematic way. It is a developmental tool used for all round development of the employee and the organization. The performance is measured against a number of factors. These factors can be divided into two groups.
(a)General personality such as initiative, leadership qualities, dependability, team spirit, etc.
(b)Professional qualities like job knowledge, quality and quantity of output, versatility and so on.
Factors vary from organization to organization and job to job. For a soldier, courage and endurance are more important factors. But for the Army General, his tactical abilities are more important. On the other side, a foreman in a factory would never be assessed for his courage. Assessment is often not confined to past performance but checks for potential performance also. The second definition brings in focus behavior because behavior affects not only employee’s performance but even his peers’ and subordinates’.
Definition 1: “It is a systematic evaluation of an individual with respect to present performance on the job and his potential.”
Objectives
erformance appraisals are used as a basis for following activities: -
1. Promotions
2. Confirmations
3. Training and Development program planning
4. Compensation reviews
5. Competency building
6. Evaluation of HR Programs
7. Feedback & Grievances
Advantages/needs/importance/use/purpose of performance appraisal
Performance appraisal is defined by Wayne Cascio as “the systematic description of employee’s job relevant, strength, weakness.
1.Feedback to the employee
erformance appraisal is beneficial because it provides feedback to the employee about his performance. It identifies the areas for improvement so that employee can improve itself.
2.Training and development:-
Due to performance appraisal it is easy to understand what type of training is required for each employee to improve himself accordingly training programs can be arranged.
3.Helps to decide promotion:-
Performance appraisal provides a report about the employee. Based on this report future promotions are decided, incentives, salary increase is decided.
4.Validation of selection process:-
Through performance appraisal the HR department can identify whether any changes are required in the selection process of the company normally a sound selection process results in better performance and positive appraisal.
5.Deciding transfers and lay off of the worker:-
Employee with specific talent can be transferred to places where their talents are utilized properly similarly decisions regarding termination of employees depend upon performance appraisal reports.
6.Human resource planning and career development:-
Companies can plan for future vacancies at higher levels based on performance appraisal reports. Similarly career planning can be done for the employee on the performance appraisal report.
PERFORMANCE APPRAISAL PROCESS
1. Setting Objectives and Standards of performance
2. Design an appropriate appraisal program – Appraisal program for different levels of employees would be different.
3. Performance Interviews
4. Appraise and record the performance
5. Use and store data for appropriate purposes
6. Identify opportunities variables
TECHNIQUES / METHODS OF PERFORMANCE APPRAISALS
Numerous methods have been devised to measure the quantity and quality of performance appraisals. Each of the methods is effective for a particular class of employees in certain types of organization only.
Broadly all methods of appraisals can be divided into two different categories.
• Past Oriented Methods
• Future Oriented Methods
PAST/TRADITIONAL ORIENTED METHODS: Traditional method of performance appraisal has been used by companies for very long time. A common feature of these methods is they are all relatively simple and involve appraisal by one senior.
1.Check list method :-In this method the senior, the boss is given a list of questions about the junior. These questions are followed by check boxes. The superior has to put a tick mark in any one of the boxes a questioner containing questions is given to the senior. This method is an extremely simple method and does not involve a lot of time. The same set of questioners can be given foe every employee so that there is uniformity in selecting employee.
2.Confidential report :- This method is very popular in government departments to appraise IAS officers and other high level officials. In this method the senior or the boss writes a report about the junior giving him details about the performance about the employee. The positive and negative traits, responsibilities handled on the job and recommendations for future incentives or promotions. The report is kept highly confidential and access to the report is limited.
3.Critical incident method :- In this method critical or important incidents which have taken place on this job are noted down along with employee’s behavior and reaction in all these situations. Both positive and negative incidents are mentioned. This is followed by an analysis of the person, his abilities and talent, recommendations for the future incentives and promotions.
4.Ranking method :- In this method ranks are given to employees based on their performance. There are different methods of ranking employees.
Simple ranking method
Alternate ranking method
Paired comparison method
i.Simple ranking method :- Simple ranking method refers to ranks in serial order from the best employee e.g. If we have to rank 10 best employees we start with the first best employee and give him the first rank this is followed by the 2nd best and so on until all 10 have been given ranks.
ii.Alternate ranking :- In this method the serial alternates between the best and the worst employee. The best employee is given rank 1 and then we move to the worst employee and give him rank 10 again to 2nd best employee and give him rank 2 and so on.
iii.Paired comparison :- In this method each and every person is the group, department or team is compared with every other person in the team/group/department. The comparison is made on certain criteria and finally ranks are given. This method is superior because it compares each and every person on certain qualities and provides a ranking on that basis.
5.Graphic rating scale :- Graphic rating scale refers to using specific factors to appraise people. The entire appraisal is presented in the form of a chart. The chart contains certain columns which indicate qualities which are being appraised and other columns which specify the rank to be given.The senior has to put a tick mark for a particular quality along with the ranking. Such charts are prepared for every employee. According to the department in which they work. Sometimes the qualities which are judged may change depending upon the department.
6.Narrated essay :- In this method the senior or the boss is supposed to write a narrative essay describing the qualities of his junior. He may describe the employees strength and weakness, analytical abilities etc. the narrative essay ends with a recommendation for future promotion or for future incentives.
FUTUR/MODERN ORIENTED METHODS
Modern methods of appraisal are being increasingly used by companies. Now days one of the striving feature that appraisal involves is, the opinion of many people about the employee and in some cases psychological test are used to analyze the ability of employee. These methods are as follows
1.Role analysis :- In this method of appraisal the person who is being apprised is called the focal point and the members of his group who are appraising him are called role set members.
These role set members identify key result areas (KRA) (areas where you want improvement are called KRA) which have to be achieved by the employee. The KRA and their improvement will determine the amount of incentives and benefits which the employee will receive in future. The appraisal depends upon what role set members have to say about the employee.
2.Assessment centers :- Assessment centers (AC) are places where the employee’s are assessed on certain qualities talents and skills which they possess. This method is used for selection as well as for appraisal. The people who attend assessment centers are given management games, psychological test, puzzles, questioners about different management related situations etc. based on their performance in these test an games appraisal is done.
3.Management by objective :- This method was given by Petter Druckard in 1974. It was intended to be a method of group decision making. It can be use for performance appraisal also. In this method all members of the of the department starting from the lowest level employee to the highest level employee together discus, fix target goals to be achieved, plan for achieving these goals and work together to achieve them. The seniors in the department get an opportunity to observe their junior- group efforts, communication skills, knowledge levels, interest levels etc. based on this appraisal is done.
4.Behavioral anchored rating scale :- In this method the appraisal is done to test the attitude of the employee towards his job. Normally people with positive approach or attitude view and perform their job differently as compared to people with a negative approach.
5.Psychological testing :- In this method clinically approved psychological test are conducted to identify and appraise the employee. A feedback is given to the employee and areas of improvement are identified.
6.Human resource audit/accounting :- In this method the expenditure on the employee is compared with the income received due to the efforts of the employee. A comparison is made to find out the utility of the employee to the organization. The appraisal informs the employee about his contribution to the company and what is expected in future.
7.360* appraisal :- In this method of appraisal and all round approach is adopted. Feedback about the employee is taken from the employee himself, his superiors, his juniors, his colleagues, customers he deals with, financial institutions and other people he deals with etc. Based on all these observations an appraisal is made and feedback is given. This is one of the most popular methods.
ESSENTIALS OF A GOOD PERFORMANCE APPRAISAL SYSTEM:
1. Standardized Performance Appraisal System
2. Defined performance standards – Bench Marks
3. Uniformity of appraisals
4. Trained Raters
5. Use of relevant rating tools or methods
6. Should be based on job analysis7. Use of objectively verifiable data
8. Avoid rating problems like halo effect, central tendency, leniency, severity etc.
9. Consistent Documentations maintained
10. No room for discrimination based on cast, creed, race, religion, region etc.
Process of performance appraisal (5 marks)
Performance appraisal is defined by Wayne Cascio as “the systematic description of employee’s job relevant, strength, weakness.
Process of performance appraisal followed by different companies is different. A general procedure is explained below with the help of a diagram.
1.Setting performance standards:- In this very first step in performance appraisal the HR department decides the standards of performance i.e. they decide what exactly is expected from the employee for each and every job. Sometimes certain marking scheme may be adopted e.g. A score 90/100 = excellent performance, a score 80/100 = good. And so on.
2.Communication standard set to the employee:- Standards of performance appraisal decided in 1st step are now conveyed to the employee so that the employee will know what is expected from him and will be able to improve his performance. 3.Measuring performance:- The performance of the employee is now measure by the HR department, different methods can be used to measure performance i.e. traditional and modern method. The method used depends upon the company’s convenience.
4.Comparing performance with standard:-The performance of the employee is now judged against the standard. To understand the score achieved by him. Accordingly we come to know which category of performance the employee falls into i.e. excellent, very good, good, satisfactory etc.
5.Discussing result:-The results obtained by the employee after performance appraisal are informed or conveyed to him by the HR department. A feedback is given to the employee asking him to change certain aspects of his performance and improve them.
6.Collective action:-The employee is given a chance or opportunity to improve himself in the areas specified by the HR department. The HR department constantly receives or keeps a check on the employee’s performance and notes down improvements in performance.
7.Implementation and review:-The performance appraisal policy is to be implemented on a regular basis. A review must be done from time to time to check whether any change in policy is required. Necessary changes are made from time to time.
Limitations of performance appraisal
Performance appraisal is defined by Wayne Cascio as “the systematic description of employee’s job relevant, strength, weakness.
The following are the limitations of performance appraisal
1.Halo effect :- In this case the superior appraises the person on certain positive qualities only. The negative traits are not considered. Such an appraisal will not give a true picture about the employee. And in some cases employees who do not deserve promotions may get it.
2.Horn effect :- In this case only the negative qualities of the employee are considered and based on this appraisal is done. This again will not help the organization because such appraisal may not present a true picture about the employee.
3.Central tendency :- In this case the superior gives an appraisal by giving central values. This prevents a really talented employee from getting promotions he deserves and some employees who do not deserve anything may get promotion.
4.Leniency and strictness:-
Some bosses are lenient in grading their employees while some are very strict. Employee who really deserves promotions may lose the opportunity due to strict bosses while those who may not deserve may get benefits due to lenient boss.
5.Spill over effect:-
In this case the employee is judged positively or negatively by the boss depending upon the past performance. Therefore although the employee may have improved performance, he may still not get the benefit.
6.Fear of losing subordinates and spoiling relations:-
Many bosses do not wish to spoil their relations with their subordinates. Therefore when they appraise the employee they may end up giving higher grades which are not required. This is an n injustice to really deserving employees.
7.Goodwill and techniques to be used:-
Sometimes a very strict appraisal may affect the goodwill between senior and junior. Similarly when different departments in the same company use different methods of appraisal it becomes very difficult to compare employees.
8.Paper work and personal biased:-
Appraisal involves a lot of paper work. Due to this the work load of HR department increases. Personal bias and prejudice result in bosses favoring certain people and not favoring others.
MOTIVATION THEORIES
Performance is a function of ability and motivation. P = f (A x M)
Definition:
Motivation is a set of forces that cause internal desire in people to behave in certain ways.
MOTIVATION PROCESS (6 STEPS)
1. Identify Individual’s Needs
2. Search for ways to satisfy needs
3. Goal & Objectives directed
4. Increased performance
5. Receiving rewards or punishment
6. Reassessment of needs
CRITICALITY OF MOTIVATION TO MANAGERS
Manager is responsible for improving the productivity of his subordinates and ensuring that his they contribute towards the objective and mission of the organization. It is only possible when employees perform at their maximum efficiency level. Motivation is a tool to achieve high level of performance from employees. Depending upon the direction, motivation can achieve one or more of the objectives below: -
1. Motivation improves productivity.
2. Motivation stimulates both participation and production at work
3. Motivation helps employees find new ways of doing a job
4. Motivation makes employees quality conscious
5. Motivation improves job related behavior.
6. Motivation increases attention towards human resources along with physical resources
PERSONNEL POLICIES
MEANING OF PERSONNEL POLICY
A Policy is a Plan of Action. It is a statement of intentions committing the management to a general course of action. A Policy may contain philosophy and principles as well. However a policy statement is more specific and commits the management to a definite course of action.
Hence Personnel policy is the company’s plan of action towards treatment of its employees in matters of pay, benefits, welfare, work, etc. A personnel policy spells out basic needs of the employees. Through personnel policy the personnel department ensures a fair and consistent treatment to all personnel by minimizing favouritism and discrimination. Personnel policy serves as a standard of treatment to all employees. Sound personnel policies help build employee motivation and loyalty. And this happens when personnel policies reflect fair play and justice and help people grow within the organization. Personnel policies are also plans of action to resolve intra-personal, inter-personal and inter-group conflicts.
IMPORTANCE OF PERSONNEL POLICY
Personnel policy is very important for an organization since it gives several benefits for managing the human resources effectively. Listed below are some of the benefits: 1.Consistent Treatment: Personnel policies ensure consistent treatment of all personnel throughout the organization.
2.Fair Play & Justice: Personnel policies reflect established principles of fair play and justice.
3.Minimize Favouritism: Personnel policies help minimize favouritism and discrimination
4.Promote Stability: Personnel policies ensure continuity of action plan even if top management is changed. These policies promote stability.
5.Motivation & Loyalty: Sound Personnel policies help build employee motivation and loyalty.
6.Basic Needs: Personnel policy helps the management to think deeply about basic needs of organization and the employees.
7.Standard of Performance: Personnel policies serve as a standard of performance.
8.Growth: Personnel policies help people grow within the organization.
PERSONNEL MANUAL
Personnel Policy Manual: A personnel policy manual is a booklet, which contains a comprehended form of the organizations policies regarding personnel. These policies deal with different aspects like employee benefits, employee discipline, company policies regarding unions etc. These policies prove to be guidelines for the functioning of an employee as an individual and also the functioning of the organization in totality. These policies avoid any sort of confusion when they are in written form. A personnel manual acts a guide to employees, managers and supervisors. A personnel manual should be provided to all managerial employees as a reference book for their task performance.
CONTENTS OF THE PERSONNEL MANUAL
1.Organization goals and objectives.
2. Personnel Policy.
3. The role of the Personnel Department.
4. Human Resource Planning.
5. Job Design, Job Analysis, Job Evaluation.6. Recruitment and Selection.
7. Orientation, Induction and Placement.
8. Training and Development.
9. Performance Appraisal.
10. Remuneration, Rewards, Incentives.
11. Employee Benefits and Services.
12. Promotions, Transfers, Separations.
13. Employee Welfare/Employee Relations.
14. Safety and Health, Counseling.
15. Employees Participation.
16. Industrial Relations.
BENEFITS OF PERSONNEL POLICY MANUAL
1) Clear explanation of existing policies:
One major benefit is that a written manual of policy provides everyone in management with a clear explanation of all existing company policies and practices. This acts as an invaluable asset to communications. Policy manual acts as a self-explanatory document
2) Useful tool in supervisory training:
Personnel policy manual provides excellent material that can be used in conducting supervisory training courses for new supervisors and for refreshing their understanding of past company policy. Results of supervisory training will be available if company develop a comprehensive and integrated company policy manual and use it as a basis for supervisory training programme, personnel policy manual acts as a cornerstone of supervisory training programmed in human relation case studies, role playing, and other problem solving techniques can be designed around the policy manual. Discussion among supervisors in the context of the company’s policy manual generates comment and criticism that are invaluable feedback for consideration of further modification.
3) Document to company’s faith on fair personnel polices: Personnel policy manual serves as written documentation of a company good faith in providing fair employment practices and equal employment opportunities for present employees and future job applicants of the company.
4) Readymade guide or personnel policies and procedures: A company needs well-trained and properly qualified managers who are capable of administering company’s policy in fair and a consistent manner. For this managers should know how to interpret company policy effectively clearly and promptly personnel policy acts as a guide to supervisory staff in regard to personnel policies and procedures.
5) Training manual for supervisory staff: Personnel policy manual act as a training manual for all ranks of supervision and key personnel officers in clearly understanding the personnel policies firmly, fairly equally to all employees regardless of their race color religion. Members of management can support the personnel policies and practices towers providing equal employment opportunities only to the degree of understanding of such policies and practices.
6) Avoid indecision on personnel matters: Personnel policy manual avoids indecision in regard to personnel matters. This reduces the tension on the part of management. It is in a position to reach to decisions in relation to operating personnel policies and practices.
7) Avoids unfair employment practices: Supervisors are supposed to know how to interpret companies’ personnel policies effectively and correctly so that employees or trade union will not be able to charge management with unfair employment practices. These manuals provide with necessary information explanation and guidance to managers and avoid misinterpretation of personnel policies and practices of the company by the managers and supervisors. This protects goodwill and reputation of the company.
8) Act as a communication tool: Personnel policy manual is useful as a tool of communication with the users it act as two-way communication tool in development stage and an authorized announcement method after policy has been approved. The view of supervisors can be collected and studied before changing the policies incorporated in the manual. The official announcing of the new policy is made through the manual. This provides the details that answers question before they are asked. In brief policy manual acts as a useful communication device within the organization.
PARTICIPATIVE MANAGEMENT
Participative management refers to the process of involving employee or employees’ representative at all levels of decision-making. Co-determination is another term for participative management. Participative management is also called employee involvement. Participative management is admittedly a synthesis of several management theories. Combining the best of several theories with a variety of state-of-the-art ideas may result in a leadership style that exceeds the capability of any single model or previously conceived combination. The basic principle in this leadership model is to involve all of the employees and managers actively in a common goal. This overall goal must be clearly defined and understood by everyone. It is best accomplished by direct face-to-face communication among all employees and all managers. On discovery of the well-defined goal, employees and managers must then set about developing secondary goals and rational objectives to meet the group's responsibility. Each goal or objective is then given to a subgroup for study. These smaller groups are commonly made up of employees and managers with a particular expertise or interest in the issue at hand. Employees or managers who are especially vocal concerning a given issue might be included in the study group for that issue. In its narrow sense, participative management refers to the constitution of consultative councils and committees, comprising representatives of employees and employers, to recommend steps for improving productivity, machine utilization, job loading for effecting savings in power light for identifying lazy workers, safety, so on and so forth. Participative management is considered as a process by which the workers’ share in decision – making extends beyond the decisions that are implicit in the specific contents of the jobs they do. This, in actual practice, amounts to the workers having a share in the reaching of final managerial decisions in an enterprise.
Definition: -
In the words of DAVIS,
“It is a mental and emotional involvement of a person in a group situation which encourages him to contribute to goals and share responsibilities with them.”
IMPORTANCE OF PARTICIPATIVE MANAGEMENT
The importance of participative management is universally accepted and efforts are being made for introducing such participation through suitable agencies and methods.
1.Participative management has wider socio-economic importance as it gives various advantages to workers, employers and the society at large. Such participation gives higher status to workers and enables them to think and express their views on the working of their company.
2.Industrial peace and cordial industrial relations are also established through participative management. In addition, workers’ participation brings industrial democracy in reality.
3.Participative management is important as it satisfies the psychological need of self-_expression of workers. Even the process of decision-making is made democratic through workers’ participation.
4.It brings human element or humanitarian approach in industrial management.
5.Participative management introduces a new set of values for the workers and employers in which power is to be replaced by persuasion and compulsion by co-operation.
6.Employee’s participation is also useful for raising industrial production and productivity. It helps consumers in an indirect manner.
7.The national economy also gets certain benefits when industrial peace and harmony exist over a long period. In brief, the concept of participative management is important because of economic, social and human values connected with it.
The ILO [International Labor Organization] has given moral support to employee’s participation and has advocated its adoption in all countries. Efforts are being made in all countries in this regard. In the countries of the West, this experiment is reasonably successful, while in developing countries including India the process is not satisfactory even when consultative machinery exists in many countries.
PRE-REQUISITES OF PARTICIPATIVE MANAGEMENT
1. The participants, namely, the management and the operatives, must have clearly defined and complementary objectives. And the objectives of one party should not work at cross-purposes with the objectives of the other party.
2. There must be a free flow of information and communication between the management and the workers. In this way, distrust and suspicion are avoided, and workers become responsible and mature when they discuss their demands with the management.
3. The representatives of workers must be drawn from the workers themselves. The participation of the outside trade union leaders should be discouraged. This is necessary because the problems and difficulties of the workers are better understood by the workers themselves than by others. The workers, therefore, can put across their points of view to the management with confidence.
4. Strong and effective trade unionism is necessary for the success of participative management politicization and multiplicity of trade unions defeat the purpose of participation and management.
5. Education and training of workers make a significant contribution to the purposive working of participative management. Trade unions and the government can play a major and meaningful role in organizing and conducting training programmes.
6. Neither party should feel that its position is threatened by participation. If workers think that their status will be adversely affected, they will not participate. If the managers feel that their authority is threatened, they will refuse participation or will be on the defensive.
7. Consultative bodies, collective bargaining and suggestion schemes make a mockery of participative management. To make worker’s participation meaningful and purposeful, workers should be associated at all levels of decision-making.
8. The success of participation depends on a suitable participative structure and a change of heart on the part of employers and employees, which may take a long time to develop. To expedite this development, some sort of legislative action is necessary.
9. There could be the danger of a major portion of the resources of the enterprises being diverted to workers without much consideration for further investments. It may be desirable to reserve a certain percentage of the resources for reinvestment, either through mutual agreement or legislation.
10. The financial cost of participation should not exceed the values, economic and otherwise, that come from it. Employees cannot spend all their time in participation, to the exclusion of other work.
METHODS AND TECHNIQUES OF PARTICIPATIVE MANAGEMENT:
Participative management is possible by creating suitable agencies, forum or platform through which effective communication between workers and management will be possible and joint decision will be arrived at.
The following methods/technique is normally used in India for the introduction of participative management:
The methods of participative management noted above are the different alternatives and employers and workers can select anyone method which is suitable and convenient. They have to make the selected method popular and also purposeful. This is natural as the method selected/used is not important but the result-oriented participations are important. The method used is a means while effective participation is end.
1. WORKS COMMITTEE:The Industrial Dispute act, 1947 provided for the setting up of a works committee consisting of representative of management and employees in every undertaking employing 100 or more employees. The committees are for removing the causes of friction between employer and workers in the day-to-day working of the factory. They also provides forum for negotiation between employers and workers at factory level. This joint consultative committee meets frequently for decision on common problem before workers and the management. After discussion, joint decisions are taken and such decisions are binding on both the parties.
Matters like wage payment, bonus, training, discipline, welfare facilities, working condition, etc. This committee are extremely popular and effective in France and England whereas in India it is not popular an effective.
2. JOINT MANAGEMENT COUNCIL: These councils are similar to works committee with equal representation to employees. Workers express their views, problem and difficulties through their representative on such councils. Various problems such as welfare facilities, discipline, training, removal of workers, common grievances, etc. are discussed in the meeting. Such joint consultative committees exist in UK and Sweden. In India, participative management is mainly through joint management council but not effectively operated.
3. CO-PARTNERSHIP (PARTICIPATION THROUGH OWNERSHIP): In co-partnership, workers are converted into shareholders of the company and are allowed to participate in the management like others shareholders. The company may give financial assistance to workers to purchase equity shares. They can elect their representative on the board of directors. Workers are also allowed to attend meeting of the company and participate in the discussion. Voting rights are also given to employees. This makes them to participate in the decision-making and policy framing of the company at their highest level. They work in two different capacities- as workers and as co-workers. Many companies in India offers theirs shares to the employees but workers don’t give positive response and hence not encouraging. This suggests that co-partnership, as a method of participative management is not effective/popular in India.
4. EMPLOYEE DIRECTORS: Here, two or three representative of workers are taken on board of directors of the company. The employee directors/ workers directors are elected by workers and they express their view of workers in the meeting of the board. Here, employee’s directors act as a link between top management and the workers. Such participation ensures cordial industrial relation. The representative of workers can put the view of workers before the directors and can also safeguard the interests of workers. As a result, the personnel policies will be fair and favorable to workers. Unfavorable decision to workers will be avoided and better treatment will be ensures to them. This mechanism of participation is now used extensively in public sector undertaking in India as per the initiative taken by the government.
5. SUGGESTION SCHEMES / PROGRAMMES: Under suggestion programme/scheme, workers are asked to give suggestion to the management on various administrative and other matters such as machines utilization, waste management, energy conservation and safety measures. Their suggestions are considered by a joint committee representing workers, heads of departments and technical experts. Such suggestions are for improvement in the existing organizational setup. Suitable suggestions relating to production activities, cost control, quality improvement, working condition, etc. are promptly accepted an executed. In addition, rewards are also given to those who make constructive suggestion. For collecting suggestion, suggestion boxes are kept in the organization. Suggestion scheme of participative management encourages workers to think (individually or collectively) and participate in raising the efficiency of the organization. In India companies like TATA, DCM, etc. adopt this method. This idea of participative management is now put into operations through quality circles, which are popular in Japan and now function in many Indians companies.
6. WORKERS CO-OPERATIVES (AUTO MANAGEMENT): In this extreme form of labors participation, workers take over the industrial unit and manage it completely on co-operative basis. Naturally, the entirely management is by the workers themselves. This method is also called as auto management.The basic purpose of above noted scheme of participative management is to associates workers with the decision making process. The methods used for workers participation are not important but the purposeful participation is important.
7. PARICIPATION THROUGH COLLECTIVE BARGAINING: The principle of collective bargaining confers on the management and the workers the right, through collective arguments, to lay down certain rules for formulation and termination of the contract of employment, as well as the conditions of service in an establishment. Such agreements are binding on parties and have the force of law. Collective bargaining can really work well if the bargaining parties, namely, the employers and the workers’ representatives, make use of the opportunity for bargaining in the right spirit and for a positive purpose. Collective bargaining is no-substitute for workers’ participation in management. Participation brings both the parties together and develops appropriate mutual understanding, and brings about a mature and responsible relationship. Collective bargaining, on the contrary, is based on the crude concept of power and its exercise for sectional bargaining, which may end up in mistrust, withholding of information and use of pressure tactics.
8. PARTICIPATION THROUGH JOB ENLARGEMENT AND JOB ENRICHMENT: Job enlargement means expanding the job content – adding task elements horizontally. Job enrichment means that additional motivators are added to the job so that it’s more rewarding. The purpose of job enlargement and job enrichment is to relieve boredom of the workers, which flow from excessive specialization in mass-production industries so that the job itself may be a source of self-satisfaction. Job enlargement and job enrichment do provide for workers participation because they offer freedom and scope to them to use their judgment.However this form of participation provides only limited freedom to a worker concerning the method of performing his/her job. It will not give him or her any say in some of the vital questions he or she may be interested in, such as job and income security, welfare scheme and other policy decisions of the company which affect him/her directly.
9. PARTICIPATION THROUGH QUALITY CIRCLES: A quality circle consists of seven to ten people from the same work area who meet regularly to define, analyze, and solve quality and related problems in their area. Membership is strictly voluntary, and meetings are usually held once a week for an hour. During the groups initial meetings, members are trained in problem solving techniques borrowed from group dynamics, industrial engineering and quality control. These techniques include brainstorming, Pareto analysis, cause-effect analysis, histograms, control charts, stratification and scatter diagrams.Quality circles are credited with producing quick and impressive results when correctly implemented.
Their advantages include the following:
1.Employees are involved in decision-making. This privilege makes them acquire communication and analytical skills and improve their efficiency at the workplace.
2.Savings-to-costs ratios generally are higher than those achieved with other productivity improvement programmes.
3.Because the programme is voluntary, employees and unions do not view them as another cost control effort.
4.Circle members enhance their chances of promotion to supervisory positions.
CURRENT TRENDS IN PARTICIPATIVE MANAGEMENT:
1. SUBGROUP ORGANISATION AND MANAGEMENT: -Each subgroup should elect a discussion leader and a recorder. The responsibility of the discussion leader is to focus group meetings, and the responsibility of the recorder is to present an accurate record of the group's activities. Subgroups should meet regularly for a limited amount of time. An agenda for each meeting is a necessity agenda items may be referred by the group or by members of the management team. It is important for the subgroup to present a consensus within a set of previously established time constraints. In other words, with each topic comes a time frame for ultimate decision. If necessary, the group may issue a majority and a minority opinion, but only when a group cannot reach a consensus opinion regarding a single issue. Participation in each subgroup should be limited to 15 members or fewer, to facilitate effective decision-making. An odd number of members in each group will assist in establishing majority versus minority opinions.
2. MANAGEMENT PARTICIPATION IN GROUP ACTIVITIES: -Members of the existing management team act as facilitators within the groups. Each group should include a minimum of one staff member (a middle or upper manager) with a particular interest or expertise in the group's topic. This management person should provide the group with pertinent information and resources necessary to accomplish the group's task.
The staff member is not necessarily the group leader unless elected by a majority of the group members. Frequently, the group is better served by electing a rank-and-file member as group leader, rather than a management team member. However, the assigned manager is responsible for assisting the discussion leader in maintaining decorum and maintaining a focus on the group's assigned activities. Additionally, the discussion leader, recorder, and management advisor are jointly responsible for preparing and presenting the group's decisions and opinions to the Chief Executive Officer (CEO) or Chief Administrator of the organization.
3. ANNUAL GOAL- SETTING MEETINGS: The traditional annual goal-setting meeting has value, particularly to identify Training needed to fulfill specific work tasks. An area, which requires constant attention, is staff development. For leaders to trust staff with greater autonomy or decision-making power, they must be confident that staffs have adequate skill levels. Similarly, most staff are reluctant to take the initiative and accept responsibility if they are not confident of their ability to succeed. Use goal-setting meetings to consider career goals and skills and knowledge needed for future effectiveness. Laying a foundation of common goals and competent staff is vital for participative management to succeed. Also absolutely crucial is promoting an environment of trust where staff can speak out and take initiative without fear of punishment
INDUSTRIAL DEMOCRACY AND PARTICIPATIVE MANAGEMENT: Both the concepts are supplementary and complementary in character and not conflicting and clashing with each other. In fact, industrial democracy can be introduced through various forums of participative management. Thus, participative management is an essential ingredient of industrial democracy. Works committees, joint management councils, etc are the different methods useful for the introduction of industrial democracy in concrete form.
Participative management is the basic requirement of industrial democracy. It is through such participation that industrial democracy is put into practice. Labor participation in industry is rightly viewed as industrial democracy in action. This is how the workers participation in any suitable form serves as an essential ingredient of industrial democracy. In industrial democracy, an effective system of communication and consultation in between the employer and workers is required and labor participation in management creates such system/ machinery. Industrial democracy is not merely an economic concept but an attitude of mind and hits attitude can be given clear and concrete shape through workers participation scheme. Thus, participative management prepares sound and solid base for industrial democracy. There is absolutely no conflict between the two concepts. Attention to both is needed for industrial peace, cordial industrial relations and rapid industrial growth.
UNFAIR LABOR PRACTICES
Industrial Disputes Act, 1947, specifies the following as unfair labor practices:
1.To interfere, restrain, coerce workmen in the exercise of their right to organize, form, join or assist a trade union.2.Threatening workmen with discharge or dismissal
3.Threatening of lockout or closure
4.Granting wage increases to undermine trade union efforts
5.To dominate, interfere with or support financially or socially by taking active interest in forming own trade union, and
6.Showing partiality or granting favors to one of several trade unions
7.To establish employer sponsored trade unions
8.To encourage or discourage memberships in any trade union by discriminating workman by punishing or discharging, changing seniority ratings, refusing promotions, giving unmerited promotions, discharging union office bearers
9.To discharge or dismiss workmen by victimizing, not in good faith, implicating in criminal case for patently false reasons.
10.To abolish work of a regular nature
11.To transfer workmen
12.To show favouritism or partiality
13.To replace workers
14.To recruit workmen during legal strikes
15.To indulge in acts of violence or force
16.To refuse collective bargaining
17.Proposing and continuing lockouts
ORGANIZATIONAL DOWNSIZING: Downsizing necessarily means reducing work force to an optimal level depending upon the business conditions and organizational needs. It is said that an organization should be rightly staffed i.e. It should not be overstaffed and or understaffed. There are broadly following method used to downsize the workforce as mentioned below.
RETRENCHMENT
It means termination of service. It is a termination for reasons other than disciplinary actions, retirement or superannuating, expiry and termination of contract or prolonged illness. Retrenchment compensation and notice for retrenchment are only pre-conditions for retrenchment. If notice and compensation are not given, the worker will not be called as retrenched. Compensation is payable for 15 days wages for every completed year of service besides one month’s notice or pay in lieu of notice. But employee should have completed at least one year of complete service in order to receive compensation.
LAY OFFS
Lay off is inability of the employer to provide employment to workers due to circumstances beyond his control such as shortage of power, coal, breakdown of machinery, natural calamity etc. It is not a termination of service. Lay off compensation can be claimed as a statutory right by the worker if he has completed one year of continuous service or has worked for 240 days on the surface or 190 days underground in 12 calendar months. Compensation payable