Hrm unit i ii-iii_iv

The sources of Recruitment

• Internal Sources1. Present Employees

Transfers, Promotions, Demotions

2. Retired & Retrenched Employees

3. Dependents & Relatives of deceased & disabled employees.

• External Sources• 1. Press Advertisements• 2. Educational Institutions• 3.Placement Agencies• 4.Employment Exchanges• 5.Labour Contractors• 6.Unsolicited Applicants• 7.Recommendations• 8.Factory gate hiring

Techniques of Recruitment

• Direct Methods- Scouting, Employee Contracts, Manned Exhibits and Waiting Lists.

• Indirect Methods-Advertisement• Third Party Methods-Public Employment Exchanges,

Management Consulting Firms, Professional Societies and Trade Unions

• Internet Recruitment

Recruitment Process

• Steps in Recruitment Process:• 1. Requisitions for recruitment from other department• 2. Locating and Developing the sources of Required number and type

of employees• 3. Identifying the prospective employees with required characteristics• 4. Communicating the information about the organization, the job and

the terms of conditions of service.• 5. Encourage the potential candidates to apply for jobs In the organization.• 6. Evaluating the effectiveness of recruitment process.

What is Selection?

• Selection is the process of choosing the most suitable persons out of all the applicants.

• Selection is a process of matching the qualifications of applicants with the job requirements.

• It is the process of weeding out unsuitable candidates and finally identify the most suitable candidate.

• The purpose of Selection is to pick up the right person for every job.

• Selection is negative process as it rejects a large number of unsuitable applicants from the pool.

Methods of Selection• (a) Tests:• 1. Aptitude Tests:

– Mental or Intelligence test

– Mechanical test– Psycho-motor test

• 2. Achievement Tests:- Job Knowledge test- Work sample test

• 3. Personality Tests:– Objective test– Projective test– Situation test

• 4. Interest Tests:• Continued…

Methods of Selection (continued) (b) Interviews1. Informal Interview2. Formal Interview3. Patterned or Structured Interview4. Non-Directed or Unstructured Interview5. Depth Interview6. Group Interview7. Stress Interview8. Panel or Board Interview

Selection Process…• 1. Preliminary Interview• 2. Application Blank• 3. Selection Test• 4. Employment Interview• 5.Medical Examination• 6.Reference Checks• 7. Final Approval

Meaning and Definition of Performance Appraisal

• Performance appraisal or performance evaluation is the process of assessing the performance and progress of an employee or of a group of employees on a given job and his potential for future development.

• According to Flippo, “ Performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in matters pertaining to his present job and his potential for a better job”

The process of Performance Appraisal • 1. Establishing Performance Standards• 2. Communicating the Standards• 3. Measuring Performance• 4. Comparing the actual standards with the Standards• 5. Discussing the Appraisal• 6. Taking Corrective Actions

Methods of Performance Appraisal• Traditional Methods:• 1. Confidential Report• 2. Free Form or Essay• 3. Straight Ranking• 4. Paired Comparisons• 5. Forced Distribution• 6. Graphic Rating Scales• 7. Checklist Method• 8. Critical Incidents• 9. Group Appraisal• 10. Field Review

• Modern Methods:• 1. Assessment Centre• 2. Human Resource

Accounting• 3. Behaviorally Anchored

Rating Scales• 4. Appraisal through MBO.

Essentials of an Effective Appraisal System

1. Mutual Trust

2.Clear Objectives

3.Standardisation

4.Training

5.Job Relatedness

6.Documentation7. Feedback and

Participation8. Individual differences9. Post appraisal

Interview10. Review and Appeal

Methods of Training

On-the-Job Training (at the place of work)• Coaching• Understudy • Position Rotation

Vestibule Training (adapted to the environment at the place of work)

Methods of Training

Off-the-Job Training (away from the place of work)• Special Lecture-cum-Discussion• Conference • Case Study• Sensitivity Training• Special projects• Committee assignment.

Methods and Techniques of Executive Development

On the Job Techniques• Coaching• Under Study • Position Rotation• Project Assignment• Committees• Multiple Management• Selected Reading

Methods and Techniques of Executive Development

Off the Job Techniques• Lectures • Case Studies• Group Discussions• Conference• Role Playing• Management Games• In Basket Exercise• Sensitivity Training• Programmed Instruction

• Step 1: Prepare the learner– Put the learner at ease—relieve the tension.– Explain why he or she is being taught.– Create interest, encourage questions, find out what the learner

already knows about this or other jobs.– Explain the whole job and relate it to some job the worker

already knows.– Place the learner as close to the normal working position as

possible.– Familiarize the worker with equipment, materials, tools, and

trade terms.

• Step 2: Present the operation– Explain quantity and quality requirements.– Go through the job at the normal work pace.– Go through the job at a slow pace several times, explaining each

step. Between operations, explain the difficult parts, or those in which errors are likely to be made.

– Again go through the job at a slow pace several times; explain the key points.

– Have the learner explain the steps as you go through the job at a slow pace.

• Step 3: Do a tryout– Have the learner go through the job several times, slowly,

explaining each step to you.– Correct mistakes and, if necessary, do some of the complicated

steps the first few times.– Run the job at the normal pace.– Have the learner do the job, gradually building up skill and

speed.– As soon as the learner demonstrates ability to do the job, let the

work begin, but don’t abandon him or her.

• Step 4: Follow up

– Designate to whom the learner should go for help.

– Gradually decrease supervision, checking work from time to time against quality and quantity standards.

– Correct faulty work patterns before they become a habit. Show why the learned method is superior.

– Compliment good work; encourage the worker until he or she is able to meet the quality and quantity standards.

Process of Executive Development

• Analysis of Development Needs• Appraisal of Present Managerial Talent• Inventory of Executive Manpower• Planning Individual Development Programmes• Establishing Training and Development

Programmes• Evaluating Development Programmes

Career Development Initiatives

Job Evaluation• According to BIM, Job evaluation is “the

process of analysis and assessment of jobs to ascertain reliably their relative worth using the assessment as the basis for a balanced wage structure”

• Job evaluation begins with job analysis and ends up with the classification of jobs according to their worth. A job cannot be evaluated unless and until it is analyzed.

Objectives of Job evaluation

• 1. To Determine equitable wage differentials between different jobs in the organization

• 2. To eliminate wage inequities• 3.To develop a consistent wage policy• 4. To provide a framework for periodic review and

revision of wages• 5. To provide a basis for wage negotiations• 6. To enable management to gauge and control the

payroll costs• 7. To minimize wage descriptions on the basis of age,

sex, caste, region, religion , creed etc

Job Evaluation• Job Evaluation can be classified in to two

categories• 1. Non-quantitative methods:

– a. Ranking or Job Comparison– b. Grading or Job Classification

• 2. Quantitative methods:– a. Point Rating– B. Factor Comparison

Compensation management is the process to establish & maintain an equitable wage & salary structure & an equitable cost structure .It involves job evaluation, wage & salary survey, profit sharing & control of pay costs.

• All forms of financial returns, tangible services & benefits that employees receive as a part of an employment relationship is called Compensation.

OR• Compensation is what employees receive in

exchange for their contribution to the organization.

•An employee’s standard of living, status in the society, Motivation, Loyalty and Productivity depend upon the compensation he/she receives.

•For the employer to employee remuneration is significant because of it’s contribution to cost of production.

• Compensation can be offered by an organization both directly( Base Pay & Variable Pay) and Indirectly (Benefits).

1. Base Pay -Basic compensation an employee gets usually as a wage or salary.

2. Variable Pay -Compensation linked directly to the performance.

3. Benefits- Indirect rewards given as a part of organizational membership.

Goals of Compensation Management

1. Internal Equity- Ensures that more difficult jobs are paid more.

2. External Equity- Aims to compensate fairly in comparison to similar jobs in labor market.

3. Individual Equity-Equal Pay for equal work..

Some More Goals of Compensation Management

• A. To attract talent• B. To retain talent• C. Ensure equity• D. To motivate new & desired behavior• E. Control cost• F. Comply with legal rules• G. Ease of operation.

Factors Influencing Employee Compensation

1. External Factors i. Labor Market ii. Cost of Living iii. Labor Laws iv. Society v. Economy

.

Factors Influencing Employee Compensation

2. Internal Factors:

i. Business Strategy ii. Job Evaluation & Performance Appraisal iii. Employee

.

Compensation Strategy

PoliciesTechniques Objectives

ALIGNMENT Work analysis Description INTERNALSTRUCTURE

COMPETITVENESS Market Surveys PAY STRUCTURE

CONTRIBUTION Seniority Performance INCENTIVE PROGRAMS /Merit Based

MANAGEMENT Costs Communications EVALUAION

EFFICIENCY PerformanceQuality Customers Costs FAIRNESS

COMPLIANCE


Dependent of Internal Pay Structure•Levels•Differentials•Criteria

-Content and Value-Use Value and Exchange Value-Job and Person Based

Internal Alignment


External Competitiveness

Factors Shaping External Competitiveness

Labour Market•Nature of Demand•Nature of Supply

Product Market Factors•Degree of Competition•Level of Product Demand

Organisation Factors•Industry, Strategy, Size•Individual Manager

EXTERNAL COMPETITIVENESS


Contribution

Seniority Based

Performance Based

Merit Based


Management

Managing Labour Cost-Controlling Employment-Controlling av. Cash Compensation

Communication -Managing the Massage

Pay-Change Agent in Restructuring

Rewards

• Reward is a composite of all organizational mechanism and strategies used to finally acknowledge employees behavior and performance.

Rewards

• Motivate employees to perform effectively.• Motivate employees to join the

organization.• Motivate employees to continue to work.• Motivate employees by indicating their

position in the organization structure.

Monetary Rewards

• A number of monetary rewards are offered to employees to obtain short term and long term commitment.

• Types of monetary rewards given are; base pay, variable pay, share ownership, bonus, etc.

Non-Monetary Rewards

• Non-monetary rewards cater mainly to fulfill the psychological needs of the employees.

• Types of non monetary rewards given to employees are; recognition, opportunities to develop skills, quality of work life, etc.

Praise/recognition from supervisors

Challenging work assignments

Promotions and lateral moves

Paid leave to employees

Non-Monetary Rewards

Intrinsic Rewards

• Rewards may be "intrinsic" – Opportunity for achievement – Giving of challenging responsibility – Opportunity for advancement – Opportunity for growth in stature and peer recognition

• Each of these must be – Timely, appropriate, worthwhile, offered sincerely – And done in public!

Extrinsic Rewards

• Extrinsic rewards are said to be – Pay – Working environment or conditions – Status – Security

• With the constant potential for – Special training – Promotion, and – Pay raises

Types Of Compensation

Supplementary Compensation

(Variable Pay& Fringe Benefits)

Base Compensation(Wage & Salary)

Difference between base & supplementary Compensation

Base Compensation

Vs

Supplementary Compensation

Fringe Benefits

Fringe Benefits are supposed to be benefit at the fringes, or edge of the main pay. Now this has been replaced by simple benefits which forms a substantial part of the total compensation.

“Fringe Benefits are the legal & voluntary efforts of employers for improving the standard of living & working conditions of their workers”.

…………Encyclopedia of social sciences

Fringe Benefits

Fringe Benefits are indirect compensation because they are usually extended as a condition of employment & are not directly related to performance.

Fringe Benefits

Classification• Disability Income Continuation• Loss of Job Income Continuation• Deferred Income• Spouse or family income continuation• Health & accident protection

Fringe Benefits

Classification• Property & liability protection• Employee Services- (a) Pay for time not worked (b) time off without pay ( c) income equivalent payments & reimbursements for incurred expenses

“Perquisite“

“Perquisite" includes (i) the value of rent-free accommodation provided

to the assessee by his employer;(ii) the value of any concession in the matter of

rent respecting any accommodation provided to the assessee by his employer;

(iii) any sum paid by the employer in respect of any obligation which, but for such payment, would have been payable by the assessee; and

“Perquisite“

(iv) any sum payable by the employer, whether directly or through a fund, other than a recognized provident fund or an approved superannuation fund or , as the case may be, section 6C of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), to effect an assurance on the life of the assessee or to effect a contract for an annuity

(v) the value of any other fringe benefit or amenity as may be prescribed

“Perquisite“

(vi) The value of any benefit or amenity granted or provided free of cost or at concessional rate in any of the following cases:- (a) by a company to an employee who is a director thereof;(b) by a company to an employee being a person who has a substantial interest in the company;(c) by any employer to an employee to whom the provisions of paragraphs (a) and (b) of this sub-clause do not apply and whose income under the head "Salaries " (whether due from, or paid or allowed by, one or more employers), exclusive of the value of all benefits or amenities not provided for by way of monetary payment, exceeds fifty thousand rupees;

“Perquisite“

Provided that nothing contained in this sub-clause shall apply to the value of any benefit provided by a company free of cost or at a concessional rate to its employees by way of allotment of shares, debentures or warrants directly or indirectly under any ESOP of the company, offered to such employees in accordance with the guidelines issued in this behalf by the Central Government

Cafeteria Style Benefits

A Cafeteria style benefits program allows employees to choose from a selection of employer–provided benefits.

Types-Modular PlansCore Plus Options PlanFlexible Spending Accounts

Why Training is needed?

• To familiarize the employee with the company’s culture• To increase the employee’s quantity and quality of output• To enable the employee to do new jobs and prevent of his

old skills become obsolete• To prepare the employee for promotion to higher jobs • To reduce supervision, wastage and accidents• To build second line workers

Importance of Training

• 1. Higher productivity• 2. Better quality of work• 3. Less learning period• 4. Cost Reduction • 5. Reduced supervision• 6. Low accident rate• 7. High morale• 8. Personal Growth• 9. Organizational Climate

Steps in Training Programme

• 1. Identifying Training Needs- Present Performance – Desired Performance (Accepted Level of Performance)

• 2. Setting Training Objectives and Policy• 3.Designing Training Programme• 4. Conducting the Training• 5. Follow up and Evaluation

Training Vs Development

Training Development• Increases job skills Shapes attitudes• For operating employees For executives• Short term perspective Long term perspective• Job-centred Career-centred• Role of supervisor is important Internal motivation for self development

Industrial Relations

The term ‘industrial relations’ refers to the relationship between management and employees or among employees and their organization that arise out of employment. In modem usage, the phrase ‘industrial relations’ includes the while gamut of matters that arise due to the continuing relationship between the employers and the employees. There are three parties in industrial relations, namely.

• Employers and their organizations,• Employees and their organizations, • Appropriate Government.

Objectives of Industrial Relations •To promote healthy labour-management relations.•To protect the interests of employees as well as management by securing the highest level of mutual understanding and goodwill among them.•To raise productivity to a higher level which is the need of the day and to contribute to the economic development of the country.•To check industrial conflicts and minimize the occurrence of strikes. Lockouts and gheraos.•To minimize labour turnover and absenteeism by providing job satisfaction to the workers.•To facilitate and develop industrial democracy based on workers’ partnership in management of industry.•To establish government control over industries to regulate production and industrial relations.

Significance of Good Industrial Relations

•• Industrial peace• Higher Productivity• Industrial Democracy• Collective Bargaining• Fair Benefits to Workers• High Morale• Facilitation of Change

Causes of Industrial Disputes.

• Wages and allowances • Personnel matters and retrenchment.• Bonus.• Indiscipline and violence.• Leave and house of work• Miscellaneous causes.


Industrial Unrest• Industrial unrest refers to discontent and conflict between employers

and employees. It can take the shape of strike, lock-out, gherao, picketing, etc.

Machinery for Prevention of Industrial Disputes• Workers’ participation• Collective bargaining• Grievance procedure• Tripartite bodies• Code of discipline• Standing orders


Machinery for settlement of Industrial Disputes• Conciliation • Court of Enquiry • Voluntary arbitration• Adjudication


Measures to Improve Industrial Relations• Progressive Management• Strong and stable Union• Atmosphere of Mutual Trust• Mutual Accommodation• Sincere Implementation of Agreements• Worker’s Participation in Management• Sound Personnel Policies• Government’s Role

Any Computer-based Info Systems (HRIS included)

• Hardware• Software• Databases• Telecommunication• Procedures• People

Consists of...

What is a “Human Resource InformationSystem”

• The application of computers to employee-related record keeping and reporting, and management decision making .

• The system of gathering, classifying, processing, recording and disseminating the information required for efficient and effective management of human resources in the organization.




Why HRISs Sometimes Fail

• Unclear goals/objectives• System solves the wrong

problem• Improper vendor/product

selection• Low user involvement• Planning overlooks impact

on clerical procedures• Lack of HR/functional

expertise in designing• Underestimate conversion

effort

• Management- unrealistic expectations

• Lack of overall plan for record mgt.

• Lack of flexibility and adaptability

• Misinterpret HR specifications

• Poor communication between HR/IS

• Inadequate testing

Why are Carefully Developed Info Systems Important to HR?

• Better safety• Better service• Competitive Advantage• Fewer Errors• Greater Accuracy• Higher Quality Products• Improved Health Care• Improved Communication• Increased Efficiency

• Increased Productivity• More efficient

administration• More opportunities• Reduced labor

requirements• Reduced costs• Superior managerial

decision making• Superior control

What is an HR audit?

An HR audit is a process to review implementation of your institutions policies

and procedures, ensure compliance with employment law, eliminate liabilities,

implement best practices and educate your managers.