Professional Documents
Culture Documents
Acquiring People
Training People
Appraising People
Compensating People
Acquiring People:
Selecting
the most suitable person to perform various job activities is called acquiring people.
Training People:
Teaching
employees various skills required to perform the job activities is called training people.
Appraising People:
To evaluate the performance of people and to give them feedback is called appraising people.
3
Compensating People:
Providing financial and non financial benefits to the employees against their services or contribution
for the organization is called compensating people.
Resources Approach:
Every
organization consists of three important ingredients/factors including
Financial Resources
Physical Resources
Human Resources
Where human are considered to be the most important resource as they (Human) are going to manage
physical and financial resources as well, so studying about HRM practices contribute/develop the
managers knowledge about how to manage the human resources more effectively.
Mistakes Approach:
The basic knowledge about the HRM functions may provide the managers an insight/understanding
about managing people more effectively and they should be able to avoid various mistakes while:
Selecting the right person for the job
Designing and conducting the training programs
Evaluating the performance of employees and providing them with feed back
Designing various compensation plans for the members of organization
Role of HR Department
We can
understand the role of HR department by studying the following terms:
Line Management
Staff Management
Line Management:
The relationship between two parties where one party has the right to make and impose the decisions
and the other party has to follow them, creating a supervisor-subordinate relationship.
Line manager is that person who has line function
Line Management/Line Function: the function of giving order to others
Line Authority:
Staff Management:
The relationship between two parties where one party may suggest the other party about various
aspects creating an advisory relationship
Staff Manager: the person who has the advice function is called staff manager.
Staff Function/ Staff Management: the function of giving advice to others
Staff authority:
Strategic HRM
Strategy:
Long-term action plan based on a critical evaluation of internal and external factors to create
competitive advantages.
Long term plan
SWOT analysis
i. Internal SWOT: Strength and Weakness
ii. External SWOT: Opportunity and Threats
Competitive Advantages
Strategic HRM
Aligning/matching the HR functions with the overall strategy of organization by considering all the
legal and ethical issues.
High Performance Work System
Designing various policies and characteristics that are helpful in integrating various departments of
organization to improve its collective performance through an efficient use of HR.
Proficiencies Required for HR Managers
Business proficiency ( skills/ state of being efficient)
Leadership proficiency
Learning proficiency
HR proficiency
1. Business Proficiency:
An insight/ understanding about internal and external environment of the business that may be
helpful for the manager s to design various policies for the organization
2. Leadership Proficiency:
The managers should be aware about the basic techniques that how to provide others with
guidelines and to motivate them to follow those guidelines.
Indentify future directions for others
3. Learning Proficiency:
Managers should continuously monitor their external environment to identify various changes to keep
themselves updated about most recent trends. This will be helpful in adopting the changes which are
desired by the firm and to ignore various characteristics/changes which are not beneficial for the
organization.
4. HR Proficiency:
The managers must have the knowledge about the basic HR functions including:
Acquiring People
Training People
Appraising People
Compensating People
Acquiring People
Methods of Employment Forecasting:
Trend Analysis:-
To determine the quantity of individuals by identifying past employment trends of the
organization to forecast the future, based on past trends.
According to this graph when we analyze the organization we see that in 2009 we hired 5
people but in 2010 we hired 10 people and in 2011 we hired 15 people. So according to this
trend we have to hire 20 people for the year 2012.
Ratio Analysis:-
To identify the numbers of individuals required by determining the ratio b/w outputs and
human inputs.
Organizations keep data tables like this one in their records and then on the base of these
tables they decide their requirements.
Expert Analysis/Assessment:-
To determine the quantity of individuals required by the firm by obtaining opinion of experts
who have been performing similar kind of job for a longer period of time.
It is a subjective approach which is not easily justifiably as the opinion depends upon the
personal judgment of that expert.
If the organization has no past trends then trend analysis is not useable, if organization has no
eligibility to find ratios then ratio analysis is not useable, and on this situation the organization
will use expert analysis method by hiring to an expert.
Job Analysis Information
Work Activities
Human Behavior/ Personality
Machinery/Tools/Equipment
Performance Standards
Job Content/Physical Environment
Skill Requirements/Job Specifications
Process Chart:
The graphical representation of various processes within organization that how input are
converted in to output.
Methods of Collecting Job Analysis Information
Interview
Questionnaire
Observation
Participants Diary
Multiple Methods
i. Interview:
Direct interaction b/w parties to discuss various issues under consideration
Direct interaction
Parties
Issues under consideration/evaluation/selection/job analysis/interview
Types of Interview:
a. Structured
b. Un-structured
c. Semi-structured
Interviews are costly and time taking.
ii. Questionnaire:
A structured set of questions designed to obtain information from a number of
respondents/ employees regarding specific issues.
Structured
Large number of respondents
Information regarding specific issue
Second most widely used method less costly and time taking. Used when information is
required from a large number of employees/respondents.
iii. Observation:
Directly monitoring the employees while performing their job obligations during specific
time period/during a cycle time.
Cycle time: observation is valid if an employees is being observed during Cycle time that is
the time it takes to complete a job/ an activity/ a process from it starts till it ends.
Reactivity Issue: There may be the specific problem in terms of biasness in individuals
behavior due to observation from other parties that may be called as re-activity problem.
iv. Participant Diary/Log:
Employees are provided with a note book or a digital assistant to record each and every
activity performed during their job obligations throughout cycle time. This information is
collected by the supervisors after completion of job and it is used to prepare job
description and specifications after due verifications and authentications.
v. Multiple Methods:
Using a combination of more than one method to collect information regarding job.
Job Description
(How to write a job description)
1. Job identification
2. Job summary
3. Duties and responsibilities
4. Performance and standards
5. Working relationship/professional relationships
6. Authority of jobholder
7. Job context/physical conditions
8. Helping material ( machines, tools, equipments)
9. Human requirements.
1. Job identification:
All the information that helps in introducing a specific job and that is used to distinguish one
job from the others.
2. Job Summary:
The assistant HR Manager is responsible to assist the HR Manager in performing HR
activities/personnel activities, recruitment and selection, training and development,
performance evaluation, management, compensation management and managing human
relations.
4. Performance Standards
The details about specific measures of performance or the standards that are to be maintained
by the job holder as part of his duty.
For example to meet with other employees to identify various issues at least five persons per
day. (At least five persons per day is a standard)
5. Working Relationships
The details about various other parties that are to be contacted by the job holder as part of its
job duty including supervisors, colleagues, subordinates or any other third party.
8. Helping Material/Machines
The information regarding specific tools, machines or equipments that are to be used within
job
9. Human Requirements
A list of skills and experience, qualifications and abilities and expertise that are required for
the specific job activities/obligations.
Job Definition:
The procedure to clarify the roles, responsibilities and procedures that are to be used by the job
holder to perform its work activities to minimize role ambiguity and role conflicts.
(i) Role Ambiguity
(ii) Role Conflict
For example two assistants for vouching (book keeping and record keeping). Define role to
minimize role conflict.
Job Enlargement:
Assigning additional same level duties to an employee other than its formal job descriptions.
Job Rotation:
Continuously and systematically moving an employee from one job place to another to enhance its
understanding about the job and to assess its capabilities regarding various work activities.
Job Enrichment:
All the procedures or arrangements used to develop employees capabilities or to increase their
contribution for the organization may be termed as job enrichment. For example increase the
spam of control
- Assigning decision making authority
- Job rotation to enhance understanding etc.
De-Jobbing:
(To do job informal)
Effectiveness of Recruitment:
The effectiveness of recruitment efforts is measured in terms of:
Quantity:
What number of applicants applied for the specific job position announced by the
organization? The higher the number of applicants, the recruitment will be considered more
effective.
Quality:
What is the number of eligible candidates who are fulfilling minimum job criteria and who
possess the required skills, expertise and abilities that are included with in job specifications?
Sources of Candidates
(1) Internal Sources
(2) External Sources
To identify the sources from where the organization may attract the suitable candidates to apply
for the available job positions.
(1) Internal Sources:
To attract the suitable candidates to apply for the job from within the organization, among
existing employees or inviting the individuals who have already been working with the
organization.
1. Job Posting:
Posting a job on the notice board of the organization along with its brief description and
specifications to encourage the employees to apply for those positions. It may include:
(i) Posting job on notice board
(ii) Sending an official email or memo to employees
(iii) Publishing the availability of job on official website
2. Re-hiring:
Re-selection of the employees whose terms and services with the organization have been
expired for another period of time. It includes:
(i) Renewal of contract after its maturity
(ii) Reassignment of projects after they are completed
3. Succession Planning:
The procedure to identify the future human requirements of the organization and to select and
develop current employees to fulfill future requirements.
1. Advertising:
The procedure and practices that are used / adopted by an organization to convey the outsiders
about availability of positions within organization along with a brief description and
specification about the job.
(i) Selection of Media: ( print, electronic, personal advertisement)
The organization should prefer to select the most appropriate channel to convey the
information to the outsiders that may include personal communication,
communication through print resources or electronic resources.
(ii) Construction of Ad/Advertisement:
The organization should be careful while designing advertisement for the job positions
following a four step procedure called AIDA plan.
a. Attention
b. Interest
c. Desire
d. Action
a. Attention:
Anything which can attract our attention for example any model, actor etc.
b. Interest:
Attractive salary, bonus, other facilities etc
c. Desire:
When we will feel interest then there will be a desire for getting that job.
d. Action:
When we will feel a desire for getting a job then we will take an action in the
form of applying for that job.
AIDA Plan
The organizations should try to /consider attracting external candidates by constructuring the most
suitable advertisements that may create the interest of candidates and they would desire to apply
for the job and this desire may be converted into action by providing the necessary contact details,
(telephone, office address, email etc.)
2. Employment agency:
Various organization either public or private that provide specialized recruitment services to the
organizations to facilitate them during the recruitment and selection procedure and to help them hiring
the most suitable person for the job.
Employment agencies are preferred by the organization if:
(i) The organization does not have occupy the human resource department
(ii) The HR department is not very much effective in hiring the suitable candidates
(iii) It is time and cost effective to consult the employee agency
(iv) The organization failed to conduct recruitment procedures in past
3. On demand recruitment services:
The outsourcing agency that provide recruitment specialists to the other organizations to
perform all the recruitment and selection procedure as per the requirement of the organization
using organizational resources and good well
4. Temp Agency:
The outsourcing agency that provides other organizations with temporary workers to work for
various projects and assignments as a member of the hiring organization.
For example a security guard of a security company is working in a bank.
5. Referrals:
The candidate who are recommended by existing/current employees of the organization or
various authentic resources with the basic assumption that good people know good people.
6. Walk-in:
The individuals who tends to show their interest for the organization by applying personally or
electronically even if there are vacant positions within organization or otherwise.
7. College Recruiting:
Attracting and inviting suitable candidates among the graduation classes of a college or
university to find out fresh graduates to fill vacant positions within organization.
(i) College Recruitment:
College recruitment may be done through:
a) On Campus Visit:
The setup where the representatives of the organizations tend to visit the
university campus to attract suitable candidates among students.
(In this type the representatives comes to university)
b) On site visit:
The setup where students are invited to Visit Companys office or
plant/factory to attract them to apply for various positions within organization.
c) Internships:
The specific setup where students are provided with an opportunity to secure
the organization and to perform actual job duties for a limited period of time
to attract them for the permanent employment.
Tests of investigations
Test: taking the sample of an individuals behavior to predict its future performance.
Tests of investigations
Test: taking the sample of an individuals behavior to predict its future performance.
Type of tests
1. Tests of intellectual abilities
2. Tests of physical abilities
3. Work sample tests
4. Tests of personality
5. Achievement tests
for the job. (Person job fit). For examples MAPS, inkblot tests, sentence completion, clouded picture
tests etc.
5. Achievement test:
the type of test that is conducted to identify what an individual has learnt from its past job experience.
For example midterm exams, final exams etc.
Interview
Definition:
Direct interaction
between parties to discuss various issues under consideration
Direct interaction
Parties
Issues under consideration
Selection Interview:
Direct interaction between an employee and candidate to determine the suitability of that individual for
job/organization
Types of Interviews
1. Based on construct
i. Structured interviews
ii. Unstructured interviews
iii. Semi-structured interviews
2. Based on contents
i. Situational interviews
ii. Behavioral interviews
iii. Stress interviews
iv. Job related interviews
3. Based on settings
i. Individual interviews
ii. Panel interviews
iii. Group discussion
iv. Mess interviews
v. Sequential interviews
vi. Other types
1. Based on Construct:
Classification of an interview o the bases of the structure, or construct whether the type and number of
questions have already been decided or otherwise.
i. Structured interviews/Directional Interviews:
The type of interview where the questions are already decided and the interviewer is
directed to ask the same questions accordingly.
ii. Un-structured/Non directional interviews:
The type of interviews that follow the format of a general conversation and interviewers
are not specifically directed to ask pre-decided questions.
iii. Semi structured interviews:
It is a combination of directional and non directional interview structure where a limited
amount of questions are pre-decided while the interviewer has the right to ask the question
according to situation.
2. Based on contents:
The classification of an interview on the basis of the type of questions that are included with in an
interview (that should be asked from the candidates) is as following:
i. Situational Interview (What you will do?)
Situational Interview is a type of interview in which questions are asked regarding the
assumed situations that how a candidate may response to that specific condition? For
example how you can make a sales presentation more effective by considering various
points of interest.
ii. Behavioral interview: (How you did?)
Behavioral interview is a type of interview in which questions are asked regarding the
actual behavior of a candidate that how he responded to that specific condition in past. For
example how you delivered your last sales presentation more effectively considering
various points of interest.
iii. Stress based interview:
A type of interview in which candidates are made un-easy through a series of harsh and
negatively coded questions to assess to stress tolerance ability of the candidate and their
ability to deal with the problematic situation. For example why you left your previous job?
Why should we select you?
iv. Job related interview:
The type of interview in which a series of questions is asked from the candidate related to
its previous job or the area of specialization from which the candidate belongs. For
example asking to an accountant about adjusting entries, asking a marketing officer about
new product development etc.
3. Based on Settings:
The classification of an interview on the bases of style of administration and physical settings in which
the interview is being conducted.
i. Individual interview:
The setting in which a single interviewer is going to conduct the interviewer for individual
candidates.
ii. Panel interview:
The interview in which a group of the interviewers is appointed to conduct the interview
for individual candidates. The panel may comprise of:
H.R. Personnel
Experts/Externals
Supervisor/Dept. Head
Employment Selection
The process of hiring the right person for the job after careful planning and recruitment and after
applying the most appropriate screening techniques including tests, investigations and interviews.
Negligent Hiring
If the organization fails to select the right person for the job and it becomes harmful for the
organization, the specific condition may be called as negligent hiring. Negligent hiring may include:
Training People
Employee Orientation:
All the procedures that are adopted to make an employee aware about the organization, its policies and
various other perspectives regarding the job.
Why orientation is important/provided?
i. To welcome to the employees to the organization.
ii. To make the employees at ease so they can start the socialization process.
iii. To make them aware about the organization.
iv. To provide information about the history/past, present condition and future vision of the
organization.
v. To inform about the facilities that can be enjoyed by an employee being the member of the
organization.
vi. To provide awareness regarding rules, regulations and procedures that should be
followed/observed.
vii. To make them aware about the specific code of conduct or behaviors that is expected from
the employee.
Training
Teaching employees various skills required to perform their job activities and to develop them
according to the requirements of organization.
Coaching:
The training program that is designed to enhance professional skills of an employee and to
develop its capacity to perform job related tasks.
For example making adjusting entries for an account officer, new product development
training for a marketing executive etc.
Consoling:
The training program that is designed to enhance personal skills of an employee and to
develop its capacity to solve/resolve individual conflicts and emotional problems.
v. Explain precautionary measures that should be considered while performing job. For example
do not smoke while driving.
Motivation Guidelines:
How to keep employee motivational to the job?
i. Explain the perceived training need to the employee to make them motivated towards the
training program.
ii. Follow the learning by doing technique and involve the employees in to the actual activities
of the job.
iii. The trainer should provide the employees with positive reinforcement, timely feedback and
prompt/immigrate suggestions regarding their job activities.
iv. The trainer should consider the learning capacity of the trainees and allow them to learn the
job according to their own pace/speed of learning.
v. The trainer should observe the schedule of the training program and the training should be
provided during the early hours of the days as the learning tendency/curve decreases
throughout the working day.
deficiencies and to determine whether this efficiency can be removed through training or
there may be other solution.
Process of Performance Analysis
Step 1: compare the actual performance with the standards
Step 2: Identify various performance deficiencies
Step 3: Design training objectives to remove the deficiency or taking other corrective
actions
2. Instructional Design
The process of deciding about the specific materials, information and contents that should be convey
to the employees, as well as making decisions regarding the methods that should be used to convey the
training information.
Contents of Instructional Design:
Making decisions regarding the specific information that is useful for the employees and that should
be convey them including all the materials, workbooks, exercises, assignments or practical
exposure/experience. For example course contents of a student.
Methods
The specific techniques or physical settings that should be used to convey the training information to
the employees and managing the training contents accordingly.
1. On the Job Training (OJT)
2. Off the Job Training
Methods of OJT
i. Coaching
ii. Rotations
iii. Special Assignment/Action Learning
iv. Job instructions Training
v. Informal learning
vi. Apprenticeship
i. Coaching:
On the job training method where an individual is assigned to a supervisor or a subject matter
expert to learn various job related skills by taking guidelines and directions and by consulting
in case of various problems.
ii. Job Rotation
A systematic movement of any employee from one job location to the other location to
increase its insights about the organization and to enhance its understanding regarding various
operations and procedures.
iii. Special Assignment/Action Learning
On the job training approach where an employee is assigned with independent projects and
assignments to work full time by generating all the necessary resources and information and
by resolving various problems and issues accordingly. This method involves an active
participation of the employee to learn various job related skills through self participation.
iv. Job Instructions Training
On the job training method where an employee is provided with a written description of step
by step procedure to perform the job activities along with various pre-cautions and safety
measures. The employee tends to follow the job instructions/guidelines by consulting the
instructions manual and to perform the job by considering its safety requirements.
v. Informal Learning
On job learning where individuals tend to learn various job activities using informal setups
from their colleagues, supervisors or sub-ordinates other then than organization. The
organization may encourage the informal learning within the organization by providing
facilities and support.
vi. Apprenticeship
On the job training technique where an individual is assigned to an expert/craft man to learn
various job related skills by dedicating its time and efforts to achieve the training objectives.
Negligent Training
If the managers failed to train their employees according to the requirements and training was unable
to achieve its objectives and it may be harmful for the organization, its members and other
stakeholders, this training will be called negligent training. Negligent training may include:
Appraising People
1. Performance Appraisal
2. Performance Management
1. Performance Appraisal
All the procedures that are designed to compare the actual performance of an employee with
the performance standards and to provide with feedback along with suggestions and re-
enforcements.
Process of Performance Appraisal
i. Setting standards
ii. Compare actual performance with the standards
iii. Providing feedback along with suggestions and re-enforcements.
2. Performance Management System
The process of managing the performance of the employees according to the requirements of
the organization integrating/ combining goal setting, performance evaluation and future
development in to a single common system to achieve organizational strategic objectives.
Appraisal Interview
Satisfactory:
For example to for being passed in exams of a semester there is required 1CGPA but for being
promoted in next semester 2CGPA is required.
Now if a student gets more than 2CGPA, his performance is satisfactory and promotable, but if a
student gets less than 2CGPA but more than 1CGPA, his performance is satisfactory but not
promotable.
Un-Satisfactory:
For example an employee does not show satisfactory performance, and then management will decide
about his performance. If his mistakes are correctable, then they will give him suggestions for
improvement, and if his mistakes are not correctable, then management will ask him bye bye.
i. Supervisor:
The type of evaluation where an employee is being evaluated by its immediate supervisor
or the senior authorities considering that the supervisor has an exact idea about an
employees performance, skills, efficiencies and various other aspects. The supervisors
evaluations are most vilely used and considered effective than other methods.
ii. Self Rating: 25-40% bias
The type of evaluation where an individual employee tends to rate its own performance y
using the given criteria as directed by the organization. The self ratings may prove to be
biased as the individuals tend to rate themselves higher than their actual performance.
Appraisal Problems
Problems because of which appraisal becomes useless are as following.
i. Un-Clear Standards
ii. Halo Effect
iii. Recency Effect
iv. Outside/Third party Influence
v. Leniency
vi. Strictness
vii. Central Tendency
viii. Biasness
i. Un-clear Standards:
If the standards and targets are not cleared to the employees it may crate various
ambiguities for both the employer and the employees.
ii. Halo Effect:
If an employer tends to evaluate various individuals on the bases of a few dominant
characteristics of its behavior instead of considering its overall personality and
performance.
Appraisal Method
The specific proceeds or techniques used by the organization to evaluate the performance of their
employees and to provide them feedback accordingly. It includes two important decisions.
i. What to measure?
ii. How to measure?
Performance Dimensions
The decision regarding specific indicators or characteristics of the job that may be used as the base for
performance evaluation for example quality, job knowledge, time etc.
The performance dimensions may be categorized in to four different types.
i. General Dimensions
ii. Specific Dimensions
iii. Competencies
iv. Goal Achievement
i. General Dimensions/Generic Dimensions:
The performance indicators that are general in nature and they may exist within any kind
of job activities. For example quality, quantity, job knowledge etc.
ii. Specific Dimensions:
The type of indicators that are not common and that may exist for certain kind of job or
designation. For example marks for students, vouching for an accountant, sales plan for a
marketing officer etc.
iii. Competencies:
The type of performance indicators through certain employees are evaluated on the bases
of certain job related skills including conflict management skills, customer relation
management skills, using software etc.
How to Measure?
Methods for Employees Evaluation
Decision regarding specific methods that should be used for an employees evaluation and to provide
with feedback.
i. Graphic Rating Scale
ii. Alternative Ranking Method
iii. Forced Distribution Method
iv. Paired Comparison
v. Critical Incidents Method
vi. Narrative Forms
vii. Management by Objectives(MBO)
viii. Behavioral Anchored Rating Scale (BARS)
Compensating People
All kinds of financial and non-financial benefits offered to an employee in exchange of its services for
the organization.
The employee compensation may include:
i. Direct Financial Payments
ii. In-Direct Payments
iii. Benefits in Kind
iv. Non-Financial
Employee Incentives
Various ingredients that are offered to an employee as compensation to motivate them for future
performance and to recognize their efforts for the organization. Employee incentives may be
categorized in to two types.
i. Individual incentives
ii. Group/organizational incentives
i. Individual Incentives:
a) Piece work b) Commission
c) Merit Pay/Raise d) Recognition
(a) Piece Work:
The cash amount offered to an employee on each unit contributed by that individual.
For example an organization says to his employee that you will be given Rs. 5 per each unit
which you will produce.
(b) Commission:
Additional cash amount offered to the sales person against each unit sold by that individual.
(c) Merit Pay/Pay for Performance (PFP):
The additional cash amount or rewards offered to an employee to recognize its contribution
and superior performance within organization.
(d) Recognition based Awards:
The rewards or various other compensations offered to an employee to recognize its services
for the organization.
ii. Group/Organizational Incentives
a. Employee stock ownership program b. Profit sharing Plan
c. Gain sharing Plan d. At-Risk Pay Plan
a. Employee Stock Ownership Program:
Various arrangements that are design to offer ownership of the firm by purchasing its stock or
shares.
b. Profit Sharing Plan (PSP):
Various arrangements where a company intends to share a percentage of its profit with the
employee in recognition of their efforts.
c. Gain Sharing Plan (GSP):
The arrangements where various cost saving techniques are applied and in the result generated
gain is shared with the employees who implemented the cost saving techniques.
d. At-Risk Pay Plan:
The arrangement where the organization keeps some part of salary of an employee because of
any project based on that employee and on the ending of that project company returns that
reserved amount with also extra amount to that employee. This is called at risk pay plan.
For example the organization invests on a project on the base of any person who has capability
of performing for that project. After the starting of that project if that person leaves to that
company then this project will be in deficit for that company, so for this security purpose
company keep a part of salary in reserve.