Professional Documents
Culture Documents
able to obtain numerous ad hoc reports that analyze the organizations and
unions positions within the framework of both the industry and the current
economic situation. It is also important that the negotiating team be able to
receive ad hoc reports on a very timely basis because additional questions
and tactics will occur to the team while they are conducting labor
negotiations.
3. Specialized Human Resource Information Systems Software
A great deal of software has been specifically designed for the human
resource function. This software is available for all types and sizes of
computers, including microcomputers. Software specifically designed for the
human resource management function can be divided into two basic
categories: comprehensive human resource information systems software
and limited-function packages that support one or a few human resource
activities.
Comprehensive HRIS
In the last few years, the software industry has produced several products
that organize the various human resource information systems into
integrated software referred to as human resource information systems or
HRIS software.
In general, the computerization of HRIS has resulted in an integrated
database of human resource files. Position files, employee files, skills
inventory files, job analysis and design files, affirmative action files,
occupational health and safety files, and many other human resource files
are constructed in a coordinated manner using database management
systems software so that application programs can produce reports from any
or all of the files. Thus, the human resource management director can
produce reports listing likely internal candidates for open positions by
running an application program that queries position files, job requirements
files, and skills inventory files.
Limited-Function HRIS
Numerous commercial software packages are sold for use on mainframes,
minicomputers, and microcomputers that are designed to handle one or a
small number of human resource functions. Microcomputer versions of these
single-function software packages are relatively inexpensive and easy to
operate and allow the human resource manager to automate a function
quickly and easily.
1. Training Software
Many training software packages are available for all types and sizes of
computers to provide on-line training for employees. They include
Management training software
Sales training software
Microcomputer training software
Word processing training software
These software packages can be used in computer-based training programs
designed by human resource department for training specific employees ingroup and independent study programs. Computer-based training aids often
simplify the trainers job and allow the trainer to individualize instruction
more easily than in traditional, group-based training classes.
Performance Appraisal Methods
It is a systematic evaluation of an individual with respect to
performance on the job and individuals potential for
development.
Definition 2: Formal System, Reasons and Measures of
future performance
It is formal, structured system of measuring, evaluating job
related behaviors and outcomes to discover reasons of
performance and how to perform effectively in future so that
employee, organization and society all benefits.
Meaning of Performance Appraisals
Performance Appraisals is the assessment of individuals
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 such
factors as job knowledge, quality and quantity of output,
initiative, leadership abilities, supervision, dependability, cooperation, judgment, versatility and health. Assessment
should be confined to past as well as potential performance
Job Analysis
Performance Standards
Performance Appraisals
Describe the job
relevant strengths and
weaknesses of each
individual.
Organizational Maintenance
Promotion
Retention / Termination
Recognition
Lay offs
Poor Performers identification
HR Planning
Documentation
Training Needs
Organizational Goal achievements
Goal Identification
HR Systems Evaluation
Reinforcement of organizational
needs
Validation Research
For HR Decisions
Legal Requirements
Categories
Traditional Appraisals
Guiding Values
Individualistic, Control
oriented, Documentary
Leadership Styles
Frequency
Formalities
Rewards
Directional, Evaluative
Occasional
High
Individualistic
Modern, Systems
Appraisals
Systematic,
Developmental,
Problem solving
Facilitative, Coaching
Frequent
Low
Grouped,
Organizational
hinder the achievement of this goal, companies look for strategies that lead to
competitive advantages. One such strategy is the adoption of information systems
within the company. Information systems help a company make adequate use of
its data, reduce workload and assist with compliance with various mandatory
regulations.
Considerations
Implementing information systems within an organization can prove to be costly.
Implementation costs include not only installation of the systems but also
employee training sessions. In addition, employees may see the adoption of
information systems as an unwarranted change and, thus, may resist this change.
Resistance to change can hinder business operations and can cause employee
turnover. Companies should have leadership in place to assess the adequacy of the
decision to have an information system and to guide the company through the
transition phase and weigh information systems cost against the potential benefits.
resulting from personnel decisions that may violate laws enacted by the state
legislatures, and/or local
governments. These laws are constantly interpreted in thousands of cases
brought before government
agencies, federal courts, state courts, and t Supreme Court.
How successfully a firm manages its human resources depends to a large extent
on its ability to deal
effectively with government regulations. Operating within the legal framework
requires keeping track of the
external legal environment and developing internal systems (for example,
supervisory training and grievance
procedures) to ensure compliance and minimize complaints. Many firms are now
developing formal policies
on sexual harassment and establishing internal administrative channels to deal
with alleged incidents before
employees feel the need to file a lawsuit.
Legislation often has a differential impact on public- and private sector
organizations. (Public sector is
another term for governmental agencies; private sector refers to all other types of
organizations.) Some
legislation applies only to public-sector organizations. For instance, affirmative
action requirements are
typically limited to public organizations and to organizations that do contract work
for them. However,
much legislation applies to both public- and private sector organizations. In fact,
it's difficult to think of any
HR practices that are not influenced by government regulations.
e) Technology
The world has never before seen such rapid technological changes as are
presently occurring in the
computer and telecommunications industries. One estimate is that technological
change is occurring so
rapidly that individuals may have to change their entire skills three or four times
in their career. The
advances being made, affect every area of a business including human resource
management.
f) Evolving Work and Family Roles
The proportion of dual-career families, in which both wife and husband (or both
members of a couple)
work, is increasing every year. Unfortunately, women face the double burden of
working at home and on
the job, devoting 42 hours per week on average to the office and an additional 30
hours at home to
children. This compares to 43 hours spent working in the office and only 12 hours
at home for men.
More and more companies are introducing "family-friendly" programs that give
them a competitive
advantage in the labor market. These programs are HR tactics that companies
use to hire and retain the
best-qualified employees, male or female, and they are very likely to payoff. For
instance, among the well
known organizations / firms, half of all recruits are women, but only 5% of
partners are women. Major
talent is being wasted as many women drop out after lengthy training because
they have decided that the
demanding 10- to 12-year partner track requires a total sacrifice of family life.
These firms have started to
change their policies and are already seeing gains as a result. Different
companies have recently begun
offering child-care and eldercare referral services as well to facilitate women
workers as well as are
introducing alternative scheduling to allow employees some flexibility in their
work hours.
g) Skill Shortages and the Rise of the Service Sector.
Expansion of service-sector employment is linked to a number of factors,
including changes in consumer
tastes and preferences, legal and regulatory changes, advances in science and
technology that have
eliminated many manufacturing jobs, and changes in the way businesses are
organized and managed.
Service, technical, and managerial positions that require college degrees will
make up half of all manufacturing and service jobs by 2000. Unfortunately, most
available workers will be too unskilled to fill
those jobs. Even now, many companies complain that the supply of skilled labor
is dwindling and that they
must provide their employees with basic training to make up for the shortcomings
of the public education
system. To rectify these shortcomings, companies currently spend large amount
year on a wide variety of
training programs.
ii.
Organizational Challenges
Organizational challenges refer to concerns that are internal to the firm.
However, they are often a
byproduct of environmental forces because no firm operates in a vacuum. These
issues include:
competitive position (cost, quality, and distinctive capability), decentralization,
downsizing, organizational
restructuring, self-managed work teams, small businesses, organizational
culture, technology, and
outsourcing.
Organizational challenges are concerns or problems internal to a firm. They are
often a byproduct of
environmental forces because no firm operates in a vacuum. Still, managers can
usually exert much more
control over organizational challenges than over environmental challenges.
Effective managers spot
organizational issues and deal with them before they become major problems.
One of the themes of this
text is proactively: the need for firms to take action before problems get out of
hand. Only managers who
are well informed about important HR issues and organizational challenges can
do this. These challenges
include the need for a competitive position and flexibility, the problems of
downsizing and organizational
restructuring, the use of self-managed work teams, the rise of small businesses,
the need to create a strong
organizational culture, the role of technology, and the rise of outsourcing.
An organization will outperform its competitors if it effectively utilizes its work
force's unique combination
of skills and abilities to exploit environmental opportunities and neutralize threats.
HR policies can
influence an organization's competitive position by
a) Controlling costs,
b) Improving quality, and
c) Creating distinctive capabilities
d) Restructuring
a) Controlling costs
One way for a firm to gain a competitive advantage is to maintain low costs and a
strong cash flow. A
compensation system that uses innovative reward strategies to control labor
costs can help the organization
grow. A well-designed compensation system rewards employees for behaviors
that benefit the company.
Other factors besides compensation policies can enhance a firm's
competitiveness by keeping labor costs
under control. These include: better employee selection so that workers are more
likely to stay with the
company and to perform better while they are there, training employees to make
them more efficient and
productive; attaining harmonious labor relations); effectively managing health and
safety issues in the
workplace and structuring work to reduce the time and resources needed to
design, produce, and deliver
products or services
b) Improving quality.
The second way to gain a competitive advantage is to engage in continuous
quality improvement. Many
is now a top union priority. In return for job security, though, many union leaders
have had to make
major concessions regarding pay and benefits.
f. Matching People and Organizations Research suggests that HR strategies
contribute to firm
performance most when the firm uses these strategies to attract and retain the
type of employee
who best fits the firm's culture and overall business objectives. For example, one
study showed that
the competencies and personality characteristics of top executives could hamper
or improve firm
performance, depending on what the firm's business strategies are. Fast-growth
firms perform better
with managers who have a strong marketing and sales background, who are
willing to take risks, and
who have a high tolerance for ambiguity. However, these managerial traits
actually reduce the
performance of mature firms that have an established product and are more
interested in
maintaining (rather than expanding) their market share. Other research has
shown that small hightech firms benefit by hiring employees who are willing to work in an atmosphere
of high
uncertainty, low pay, and rapid change in exchange for greater intrinsic
satisfaction and the financial
opportunities associated with a risky but potentially very lucrative product launch
includes such factors as race, sex, age, values, and cultural norms.
The Indian work force is characterized by such diversity that is
deepening and spreading day by day.
It is likely to be more diverse as women, minority- group members,
and older workers flood the work force. With the increasing number
of women entering the work force due to a combination of factors like
womens emancipation, economic needs, greater equality of sexes,
education and so on, additional pressures of managing a different set
of problems at the work place have arisen. As such, the number of
women is on increase in all walks of life i.e., teachers, lawyers,
doctors, engineers, accountants, pilots, parliamentarians and so on.
However, increasing number of women in the work force has been
necessitating the implementation of more flexible work scheduling,
child care facilities, maternity and now paternity leave also and
transfer to location of husbands place of posting.
Also, as the work force ages, employers will have to grapple with
greater health care costs and higher pension contributions. On the
whole, the increased diversity of work force will place tremendous
demands on the HR management function.
Further, creating unanimity from a diverse work force has also
become a challenge for HR manager. This is because, as several
experts put it; diversity is marked by two fundamental and
inconsistent realities operating today with it. One is that
organisations claim they seek to maximize diversity in the work place,
and maximize the capabilities of such a diverse work force.
The other is that traditional human resources system will not allow
diversity, only similarity. These experts emphasize that employers
traditionally hire, appraise, and promote people who fit a particular
employers image of what employees should believe and act like. At
the same time, there is corresponding tendency to screen out those
who do not fit.
2. Economic and Technological Change:
Along with time, several economic and technological changes have
occurred that have altered employment and occupational pattern. In
India too, there is a perceptible shift in occupational structure from
agriculture to industry to services.
The New Economic Policy, 1991 has led to liberalization and
globalization giving genesis to multinational organisations with their
multicultural dimensions having certain implications for HRM. The
implications of globalization for HRM are discussed subsequently.
The Indian economy has already become an open economy but it will
be more so from April 2003 with the complete lifting of quantitative
restrictions (QRs) on imports in India.
Technology has become the hallmark of the modem organisations. As
such, modem organisations have become the technology-driven
organisations. So to say, men are replaced by machinery.
Manufacturing technology, for example, has changed to automation
and robotisation.
Manufacturing advances like these will eliminate many blue-collar
jobs, replacing them with fewer but more highly skilled jobs. Similar
changes are taking place in office automation, where personal
computers, word processing, and management information system
(MIS) continue to change the nature of office work.
The explosive growth of information technology linked to the internet
has ushered in many changes throughout the organisation. One of the
major changes led by information technology is that it has hastened
what experts call the fall of hierarchy, i.e., managers depend less
and less on yesterdays stick-to-the -chain-of-command approach,
to their organising function.
This is so because earlier it used to be, if one wanted information, one
had to go up, over and down through the organisation. Now, one just
taps in. Thats what broke down the hierarchy. Somuchso, now
employees do not need to be present a definite work place.
Instead, they can work from their own places/ residences through the
net. This has given genesis to a new breed of organisations, called
virtual organisations. (VO).
3. Globalization:
The New Economic Policy, 1991 has, among other things, globalised
the Indian economy. There has been a growing tendency among
business firms to extend their sales or manufacturing to new markets
aboard. The rate of globalization in the past few years in India has
been nothing short of phenomenal.
Globalization increases competition in the international business.
Firms that formerly competed only with local firms, now have to
compete with foreign firms/competitors. Thus, the world has become
a global market where competition is a two-way street.
Globalization has given genesis to the multinational corporations
(MNCs). The MNCs are characterised by their cultural diversities,
intensified competition, variations in business practices and so on. As
an international business expert puts it, the bottom line is that the
business problems and/or questions. Good decision support systems can help
business people perform a wide variety of functions, including cash flow
analysis, concept ranking, multistage forecasting, product performance
improvement, and resource allocation analysis. Previously regarded as
primarily a tool for big companies, DSS has in recent years come to be
recognized as a potentially valuable tool for small business enterprises as
well.
THE STRUCTURE OF DECISIONS
In order to discuss the support of decisions and what DSS tools can or
should do, it is necessary to have a perspective on the nature of the decision
process and the various requirements of supporting it. One way of looking at
a decision is in terms of its key components. The first component is the data
collected by a decision maker to be used in making the decision. The second
is the process selected by the decision maker to combine this data. Finally,
there is an evaluation or learning component that compares decisions and
examines them to see if there is a need to change either the data being used
or the process that combines the data. These components of a decision
interact with the characteristics of the decision being made.
Structured Decisions
Many analysts categorize decisions according to the degree of structure
involved in the decision-making activity. Business analysts describe a
structured decision as one in which all three components of a decisionthe
data, process, and evaluationare determined. Since structured decisions
are made on a regular basis in business environments, it makes sense to
place a comparatively rigid framework around the decision and the people
making it.
Structured decision support systems may simply use a checklist or form to
ensure that all necessary data are collected and that the decision making
process is not skewed by the absence of data. If the choice is also to support
the procedural or process component of the decision, then it is quite possible
to develop a program either as part of the checklist or form. In fact, it is also
possible and desirable to develop computer programs that collect and
combine the data, thus giving the process a high degree of consistency or
structure. When there is a desire to make a decision more structured, the
support system for that decision is designed to ensure consistency. Many
firms that hire individuals without a great deal of experience provide them
with detailed guidelines on their decision making activities and support them
by giving them little flexibility. One interesting consequence of making a
decision more structured is that the liability for inappropriate decisions is
shifted from individual decision makers to the larger company or
organization.
Unstructured Decisions
At the other end of the continuum are unstructured decisions. While these
have the same components as structured onesdata, process, and
evaluationthere is little agreement on their nature. With unstructured
decisions, for example, each decision maker may use different data and
processes to reach a conclusion. In addition, because of the nature of the
decision there may only a limited number of people within the organization
qualified to evaluate the decision.
Generally, unstructured decisions are made in instances in which all
elements of the business environmentcustomer expectations, competitor
response, cost of securing raw materials, etc.are not completely
understood (new product and marketing strategy decisions commonly fit into
this category). Unstructured decision systems typically focus on the
individual who or the team that will make the decision. These decision
makers are usually entrusted with decisions that are unstructured because of
their experience or expertise; it is their individual ability that is of value.
One approach to support systems in this area is to construct a program that
simulates the process used by a particular individual. In essence, these
systemscommonly referred to as "expert systems"prompt the user with
a series of questions regarding a decision situation. "Once the expert system
has sufficient information about the decision scenario, it uses an inference
engine which draws upon a data base of expertise in this decision area to
provide the manager with the best possible alternative for the problem,"
explained Jatinder N. D. Gupta and Thomas M. Harris in the Journal of
Systems Management. "The purported advantage of this decision aid is that it
allows the manager the use of the collective knowledge of experts in this
decision realm. Some of the current DSS applications have included longrange and strategic planning policy setting, new product planning, market
planning, cash flow management, operational planning and budgeting, and
portfolio management."
Another approach is to monitor and document the process used so that the
decision maker(s) can readily review what has already been examined and
concluded. An even more novel approach used is to provide environments
specially designed to give these decision makers an atmosphere conducive to
their particular tastes. The key to support of unstructured decisions is to
understand the role that individuals experience or expertise plays in the
decision and to allow for individual approaches.
Semi-Structured Decisions
In the middle of the continuum are semi-structured decisionswhere most
the business's key personnel will ensure that the necessary time and effort is
spent to incorporate DSS into the establishment's operations. After all, even
the best decision support system is of little use if the business does not
possess the training and knowledge necessary to use it effectively. If, after
careful study of questions of DSS utility, the small business owner decides
that DSS can help his or her company, the necessary investment can be
made, and the key managers of the business can begin the process of
developing their own DSS applications using available spreadsheet software.
DSS UNCERTAINTIES AND LIMITATIONS
While decision support systems have been embraced by small business
operators in a wide range of industries in recent years, entrepreneurs,
programmers, and business consultants all agree that such systems are not
perfect.
Level of "User-Friendliness"
Some observers contend that although decision support systems have
become much more user-friendly in recent years, it remains an issue,
especially for small business operations that do not have significant
resources in terms of technological knowledge.
Hard-to-Quantify Factors
Another limitation that decision makers confront has to do with combining
or processing the information that they obtain. In many cases these
limitations are due to the number of mathematical calculations required. For
instance, a manufacturer pondering the introduction of a new product can
not do so without first deciding on a price for the product. In order to make
this decision, the effect of different variables (including price) on demand
for the product and the subsequent profit must be evaluated. The
manufacturer's perceptions of the demand for the product can be captured in
a mathematical formula that portrays the relationship between profit, price,
and other variables considered important. Once the relationships have been
expressed, the decision maker may now want to change the values for
different variables and see what the effect on profits would be. The ability to
save mathematical relationships and then obtain results for different values
is a feature of many decision support systems. This is called "what-if"
analysis, and today's spreadsheet software packages are fully equipped to
support this decision-making activity. Of course, additional factors must be
taken into consideration as well when making business decisions. Hard-toquantify factors such as future interest rates, new legislation, and hunches
about product shelf life may all be considered. So even though the
calculations may indicate that a certain demand for the product will be
achieved at a certain price, the decision maker must use his or her judgment
Career Performance:
Research results.
and /or seminar presentations, patents etc. This will vary according to
the area of research and the type of results most common to each
field. The information at this level should be relatively general since
the career development plan does not strictly constitute a report on
the scientific results achieved.
Research Management.
Communication skills.
Other professional
training (course work,
teaching activity):
5.
Anticipated networking
opportunities.
6.
PAY
STATUARY
1. Communication:
Constant and accurate communication levels designed to fairly inform
as to what is being achieved both individually
and at a corporate level are a priority in any incentive scheme. The
key message is that incentive pay is not further reward for what
individuals are already paid to do. It is reward for smarter
performance, better levels of organization performance, greater
commitment, and so on. This is an area where schemes often fail as
incentive pay is seen as further reward for work already done.
2.
Performance Management
Line of Sight
Ensuring targets and hence incentive opportunities align with what you
can influence is important and is accepted as
being basic to understanding and channeling behavior. Line of sight
varies depending on the level of the role, the size of the organization
and the complexity of the job. Share options as an incentive have an
excellent line of sight in a high tech start-up - probably for all levels of
staff but are less relevant for basic support roles in a multinational.
4.
Tenacity
It will probably take two years to fully integrate a new incentive based
remuneration structure with a three or four month lead in period prior
to its initial introduction. Management, HR,
everyone, will have to have patience and understand that the system
will need fine tuning in the course of the first two cycles. It should not
be seen as a big deal, just necessary adjustment to reflect
organization culture and practical experience.
5.
Dollars
Make the potential dollars worth having a shot at. One, two or three
percent of base salary are very low percentages to put on offer in an
incentive scheme and are likely not to be motivating. A base figure
should be around 5% for any role. Percentages vary enormously and
can be multiples
of salary depending on the role. Remember always this money is
contingent on performance, ie. It is not a gimmee and many incentive
schemes put the money on offer into a range (eg. Between 5% and
10%).
6.
Time Period
Set the giving out of rewards commensurate with the level of role and
the type of duties being undertaken. For many roles a yearly timescale
is appropriate. Some support roles would probably benefit from a six
monthly or quarterly payout period, as is common in many sales and
production roles. Why?
It keeps the link between the work done and the reward clear.
Understand how
Motivation Works
7.
When to Introduce
3.3
Summary
The goal on this concept should be provide the information which has
a surprise value and which reduces the
to
individual, corporate financial
uncertainty. It should simultaneously build the knowledge base in the
organization by processing the data obtained from different sources in
different ways.