Human Resource Management

From the Book Human Resource Management (6th Edition) by- K.Aswathappa

Ch-1 Understanding the Nature & Scope of Human Resource Management

Def-: Functions like Recruitment, Selection, Training & Development (peoples dimension in an organization). HR Planning Scope-Entry-Leaving
Job analysis & design

Recruitment & Selection

Orientation & Placement Training & Development Performance appraisal & Job Evaluation Employee & Executive Remuneration Motivation & Communication Welfare, Safety & Health Industrial Relations

HRM Functions & Objectives Function-: supply of competent & willing employees Objectives-: Societal (sensitive to needs & legal Compliance) Organizational (effectiveness, Planning, selection, Training & Development, Appraisal) Personal (employee career, potential, training & development) Outsourcing: 72% of Indian companies are outsourcing their HR activities. e.g. Employee hiring, Training & development, Payroll preparation, Benefits administration, Statutory records maintenance. IIPM headquarters at Kolkata National Institute of Labor Management (NILM) at Mumbai Merged to form National Institute of Personnel management in 1980.

Chapter-2: Context of HRM

External Political, Legal, Economic, Technological Internal-Org. culture, Cultural, Unions, Professional bodies Analysis helps in pro-active approach Political: Article 14: Equality before the law Article 15: Prohibition of discrimination-religion, race, caste, sex or place of birth Article 16: Equality of opportunity in public employment Article 23: Prohibits forced labor Article 24: Prohibits employment of children factories, mines/hazardous jobs Article 38(d) Equal pay for Equal work Article 38(e) Health & Strength of workers, tender age of children forced to work out of economic necessity- jobs not suitable to their health. Article 42: Just & Humane conditions of work & Maternity leave for women Article 43: Living wages for workers Article 43(a): Participation of workers in management

Economic: Supplier: provides HR Competitors Customers Economic Growth Industrial Labor- diversity Globalization Technological: HRIS Internal: Strategy, Task & Leadership Unions Organizational culture & conflict Enacted Environment- own creation e.g. OPEC Domain- carves out for itself, Domain Consensus Task Environment- all groups that can influence organization. E.g. range of products, technology, etc. Scanning the Environment: Trends & projections, E.g. labor market, legal environment etc.

Knowing the Environment

Chapter-3 Integrating HR Strategy with Business Strategy

Strategic HRM- HR abilities anyone who deals with people, regardless of functionality. Barriers Perceived short-term Inability of HR to think strategically Senior managers lacks appreciation for HR values Too much concerned with technicality rather than people values Difficult to quantify HR outcome HR other than capital assets is not owned by the company and hence risk in investment.

Corporate level strategies: which business? Growth strategies (horizontal, vertical, conglomerate, related-unrelated, mergers, strategic alliances) Stability strategies Retrenchment strategies Business level strategies: how to compete in chosen business, SBU Functional level strategies : HR Identification of key HR activities Pro-reactive Critical thinking Explicit comm. of goals Quality & service Building core competencies Environment scanning SWOT analysis Strategy implementation Strategy evaluation

Chapter-4 Human Resource Planning

The first part of human resource strategy is human resource planning All other HR activities such as employee hiring, training & development, remuneration, appraisal, & labor relations are derived from HRP. HRP is a sub-system in total Org. Planning Importance:
Future personnel needs, succession planning Part of strategic planning Creating highly talented personnel International strategy Foundation for personnel functions Investment in HRs (human assets as compared to physical assets increase in value) Resistance to change & move

Factors affecting HRP: 1. Type & strategy of Organization. 2. Organizational growth cycles 3. Environment uncertainties 4. Time horizons (short/long term) greater the uncertainty, shorter the time horizon 5. Type & quality of source information (HRIS) 6. Outsourcing

Environment scanning: Economic Technological Demographic Political & legislative Social concerns Organization objectives & policies: Internal promotion Training & development Enrichment of job Union Retaining Demand: Quantity & Quality Basis- annual budget and long term corporate plan translated into activity levels for each function & department. External: Competition, Economic Internal: Budget constraints, Employee separation etc.

Forecasting techniques:
Managerial judgment-(bottom up/ top-down) Ratio trend analysis-(Past ratios, e.g. sales volume -employee size) Regression analysis Work supply technique(length of operation-amount of labor reqd.) Delphi technique Flow models (Markov analysis) I. II. Time span (Time to be covered-depends on HR Plan) Mutually exclusive categories of employees -movement in

categories
III. Estimate probability of transition based on past trends

HR supply forecast : External (e.g. colleges & universities) Internal : Existing Employees: from HR audit: Skills inventories (non-managers) Management inventories (managers) Work history Strengths Weaknesses Promotion potential Career goals Personal data No. & types of employees supervised Total budget managed Previous management duties

Inflow-outflow = No. of current employees Turnover rate = No. of separations in 1 year * 100 Avg. no. of employees in 1 year Absenteeism rate= No. of workers absent*No. of days) *100 Average no. of workers*No. of working days E.g. 4% means 96 out of 100 are available Retention plan: Compensation plan Performance appraisal Employee quitting because of conflict or green pastures The induction crisis(accurate job requirements, realistic job picture) Shortages Unstable recruits- find characteristics

Chapter-5 Analyzing work & Designing jobs

Origin civil right movement Collecting job related information-Job description & specification Monetary consideration is necessary- deciding whether a activity is work or not Work has two characteristicsSociological- Leadership, Politics, Power, Group dynamics Psychological- Learning, Attitude, Motivation, Satisfaction & Perception.

Job description Task & Responsibilities Importance:

Lays foundation for HRP Employee hiring Training & development, Performance appraisal Salary & wage fixation, Safety & Health.

Process
Strategic choices: Extent of employee involvement, Level of detail, Timing & Frequency of analysis, Past oriented vs. Future oriented Sources of job data: Non-human: Human: *Existing data *job analysis *Equipment maintenance record *job incumbents *Equipment blue print *supervisors *Work area architecture *job experts *Films of employee working *Training manuals *Magazines & news papers

2) Information Gathering: Type of data (time & budget constraints) Methods of data collection Who should collect: trained job analyzers, supervisors, job-incumbents Methods: Observation Interview Questionnaire Checklists Technical conference Diary methods Quantitative: Position analysis questionnaire:194 elements, 6 categories ,degree of involvement Manager position development questionnaire Functional job analysis: Relation to people, data, & things.

Job Analysis Sheet

I) Work Activities
A) How is task performed, why is task performed, when is task performed B) Interface with other jobs & equipments. C) Procedures used D) Behavior on job E) Physical movements

II) Machines, Tools, Equipments, Work Aids III) Work Context

Physical working conditions Org. context Social context Work schedule Incentives

IV) Personal Requirements

Job Description Sheet

1) TITLE 2) RANGE 3) DEPARTMENT 4) REPORTS TO 5) IMMEDIATE LEVEL SUBORDINATES 6) OBJECTIVES OF THE JOB 7) PRINCIPAL DUTIES & RESPONSIBILITIES 8) AUTHORITY LIMITS

Purpose of job analysis: HRP Employee hiring Training & development Performance appraisal HRIS Job design: conscious effort, organize tasks, duties & responsibilities, follows after job- analysis Organization factors: internal structure of each task requires planning, executing & controlling, completely integrated job. Work flow, Ergonomics, work practices. Environment factors: Availability of employees, abilities, social & cultural expectations. Behavioral elements: Feedback, Autonomy, Use of abilities, Variety

Job Design Approaches

Job rotation Job engineering-specialization, time & motion studies Job enlargement Job enrichment: adding more motivators (empowerment) Hertzberg 8 characteristics 1) Direct feedback 2) Personal accountability 3) Direct communication 4) Learning 5) Client relationship 6) Control over resources 7) Scheduling own work 8) Unique experience Socio-technical systems Ergonomics Tele-commuting Alternative work pattern (scheduling)

Chapter-6 Recruiting Human resources

Recruitment represents the first contact that a company makes with potential employees. Recruitment program helps the firm in 4 ways: 1. Attract highly qualified & competent people. 2. Ensure that the selected candidate stay longer with the company. 3. Make sure that there is match between cost & benefit. 4. Help the firm create more culturally diverse work force. Factors governing Recruitment: External: Internal: Supply & demand Recruitment Policy Unemployment rate HRP Labor market Size of the Firm Political- legal Cost Image Growth & Expansion

Recruitment: process of identifying & attracting job seekers so as to build a pool of qualified job applicants. 5 stages: 1. Planning 2. Strategy development 3. Searching 4. Screening 5. Evaluation & control (how to distinguish applicants who are unqualified from those who have a reasonable chance of success)
Planning: No. & Type (yield ratios) Strategy development: Make/Buy, Technological sophistication of recruitment & selection devices

Sources of recruitment: Internal: Present employees Employee referrals Former employees Previous applicants External: E- recruitment competitors consultants walk-in/write-in Campus recruitment Employment Exchange (Acc. To act, every Industrial Establishment ( >25 workers) should notify vacancies in it.)

When to look: time lapsed data Searching: source activation-reported by line managers Selling: realistic job picture + attract as many as possible.

Job compatibility questionnaire: whether an applicants preference for work match the characteristics of the job. 400 item instrument. Alternatives: overtime Employee leasing-outsourcing of recruitment Temporary employment.

Chapter 7 Selecting Human Resources

Selection is the process of differentiating between applicants in order to identify & hire those with a greater likelihood of success in a job.

Choosing tests-reliability, validity, objectivity, & standardization. Contract of employment: Job title Duties Date when continuous employment starts Rate of pay, allowances, overtime, hours of work including lunch break & shift arrangements Sickness, Length of notice, Grievance procedure Disciplinary procedure Work rule Arrangements (terminating, union membership), Rights to patents, Employee rights to vary terms of contract subject to proper notification. Audit of selection program Feedback, how well selected candidate perform, turnover

Chapter-9 Training, Development & Career Management

Training & Development need standard Performance-Actual Performance. Training:-Specific Skills Development:- Learning opportunities for employees to grow Source of competitive advantage

Chapter-10 Appraising & Managing Performance

Design of Appraisal Program

Problems of Rating:

Leniency or Severity
Central Tendency Rater Effect Halo Error Primacy & Recency Effects

Perceptual Set (previously held beliefs)

Performance Dimension order Spill-over Effect (Past Performance)

Status Effect
Solving Raters problems:-Training to Raters

What should be rated:

Quality Quantity

Timeliness
Cost effectiveness Need for supervision

Interpersonal impact
Community service

Potential Appraisal

Conceptual effectiveness Operational effectiveness Interpersonal effectiveness Achievement motivation

Appraisal Methods

Methods of Job-evaluation Analytical: Factor comparison: factors compared, e.g.- mental requirements, skills, physical, etc. Point- ranking method: selection of job factors ( skills, education, responsibility, job conditions, etc.)- given points. Non-analytical: Ranking: no yardstick Job grading-yardstick for classification

Chapter-11 Managing Basic Remuneration

Theories of Remuneration
Reinforcement & Expectancy Theory Behavior which has rewarding experience is likely to be repeated. Vrooms Expectancy theory focuses on link between rewards & behavior. Equity Theory: Internal Equity: different jobs in the Organization External Equity: relative to outside similar job Individual Equity

Agency Theory: To align with organizational goals

Demand & Supply-going rate system Legislation: Payment of wages act, 1936 (regulate irregularity & unauthorized deduction, payment in particular form & at regular interval) Minimum wages act, 1948 Payment of Bonus act, 1965 Payment of Gratuity act, 1972 Equal remuneration act, 1976 Wage Boards, tribunals, & fair wage committees.

Managerial Remuneration: Companys Act, 1956.

Business strategy: Invest to grow:----------Entrepreneurial Skills Manage Earnings:-------Management Effectiveness Harvest:--------------------Cost control Minimum wage----------- Fair Wage---------------Living Wage(frugal comforts)

Chapter-13 Managing Employee Benefits & Services

Why Benefits & services?
Mitigate fatigue Discourage labor unrest Satisfy employee objectives Aid recruitment Reduce turnover, and Minimize overtime costs

E.g. Legally required: old age pension, health insurance, workers compensation, unemployment compensation

Contingent & deferred benefits: Pension plans Group life insurance Group health insurance Annual wage Maternity leave Child care leave Sick leave Dental benefits Suggestion awards Other benefits: Travel allowances Company car & subsidies Moving expenses Uniform & tool expense Employee meal allowances Child-care facilities

3 conditions: Monetary calculable Not specific amount Not specific time for payment

Chapter-14 Motivation Perspectives

Intrinsic factors: Work itself Responsibility Advancement

Vrooms Expectancy Model : Expectancy: expectancy-performance

Effort Performance Valence(desire-likeability for goal) Expectancy*Instrumentality*Valence

Probability-0-1 1st level outcome-2nd level outcome

Goal

(-1-----+1) (0(indifferent)/1/-1(hatred))

Not tested empirically

Equity theory-To be treated equitably at work place Criticism (judgment of fair treatment)
Porter & Lawler performance-satisfaction Model:

Place the right person in the right job (abilities & traits)
Carefully explain their role Explain in concrete terms performance level expected

Rewards preferred

Chapter-16 Motivation in action

Performance based rewards

Organization: profit sharing, stock options Team: gain sharing, special bonuses Individual: piece rate, commission

Skill Variety Task identity Task significance Autonomy Feedback

Experienced meaningfulness of job Experience responsibility Knowledge of actual results

High internal Work Motivation, Low absenteeism & Turnover

Contemporary Job Design: Telecommuting Flexi-work Task revision Skill development

Participation at the board level

Participation through share ownership Through joint councils, committees, & work councils Through job enlargement, & job enrichment Through quality circles Through empowered teams Quality of Work Life: Ensured when members of an organization are able to satisfy their important personal needs through their experiences in organization.

Chapter-17 Empowering Employees

Participative Management also called Employee Empowerment Staff/Work councils-representation entirely of workers/employees Joint councils/committees-both employee & employer Article 43 A (42nd amendment) state through suitable legislation
Human welfare Human as thinking & independent free being Mental & physical health Enhancing self-belief & self-efficacy

Negative consequences of hierarchy & authority

1975-1977 Emergency 20 points program for 1977- Janta workers participation 1979- congress Bill- may 30, 1990 in Rajya Sabha-----------making it statutory

Shop floor council & Establishment Council

Chapter-18 Communicating with Employees

Exchange & understanding of information Plays a major role in changing peoples attitude Mould by supply of information e.g. companys news letter Decision makers need information from many people to perceive problems etc. Originate Channel Receive SenderClarity of thought Verbal, Nonverbal Tone, Facial, Bodylanguage Selective Listening, Perceptions (stereotyping, projection-reflecting of ones own thoughts on others, haloeffect)

Meta communication- interpretation (add our own interpretation) Remedy-Active listening

Organization Communication : Authority Communication Roles: Gate keepers, Liaisons (not members of any group), Isolates, cosmopolites-external world

Chapter-19 Managing Betterment at work

The Factories Act, 1948
a) Washing Facilities

b) Facilities for storing & drying Clothes

c) Sitting facilities for occasional rest for workers who are obliged to work standing d) First aid boxes, one for every 150 workers & ambulance facilities, if there are more than 500 workers e) Canteen, if employing more than 250 workers f) Shelters, rest rooms, lunch rooms, if employing more than 150 workers g) Crche, if employing more than 30 women

h) Welfare officer, if employing more than 500 workers

i) j) k) l)

Not more than 48 hours per week Not more than 9 hours per day No worker has to remain in factory for more than 10 hours Rest interval of hour, after 5 hours of work

m) Weekly one holiday n) If worker puts more than 48 hours per week-overtime wages o) No overlapping of shift p) Women workers are not to be employed between 7 p.m. & 6 a.m. (exception allowed) q) No child below 14 years of age to be employed

Chapter-20 A safe & Healthy Environment

Strategic choiceslevel of protection Formal/informal Proactive/reactive(as marketing tool)

Safety Policy: goals, responsibility, & authority

Organization for safety -Safety committees

Risk management Assessing risks (frequency, probability, & severity), steps to reduce
Incidence rate: no. of recordable injuries * 1 million no. of employee exposure hours Severity rate= no. of work hours lost * 1 million total no. of worked hours

Remedies:

Engineering revision,
Persuasion & appeal, Personal adjustment & discipline

Training,
Safety posters & film shows, Safety week & awards Effectiveness: organichow well designed, change in behavior, safety inspection, audit Health: Physical & Mental

Factories Act, 1948

Factories to be kept clean & free from effluvia & dirt Arrangements to be made for disposal of wastes & effluents Adequate ventilation & temperature to be maintained Measures to be taken for prevention of inhalation or accumulation

of dust & fumes

Standards for artificial humidification to be fixed Overcrowded related injuries to health of workers to be avoided (9.9/14.2 cubic meters of space must be provided for each worker)

Sufficient & suitable lightening must be provided in every part of

factory Glazed windows to be kept clean, measures for prevention of glare & shadows Suitable points for wholesome drinking water- legibly marked & away from urinals. Water needs to be cooled, if no. of workers 250 or more Latrines & urinals separately for males & females, well lighted &

ventilated
Sufficient no. of spittoons

Stress: individual response to disturbing factor in the environment. Eustress-positive stress

Remedies:
Meditation Cognitive restructuring: replacement of thoughts- reasons applied Time management: Delegate as much as possible minor work to subordinates

Chapter-26 Evaluating HRM Effectiveness

HR Research
Wage surveys Effectiveness of various recruitment sources

Effectiveness of training efforts

Survey of supervisors effectiveness Job analysis Survey of employee needs etc.

Analytical approach:
Cost-benefit analysis (utility analysis) (excessive reliance on quantitative)- dysfunctional

Qualitative (loyalty, commitment, attitude etc.)

Balanced Score Card: 4 dimensions 1. Financial Performance 2. Customer Service

3. Internal Business Processes

4. Capacity to learn & achieve growth