AMET UNIVERSITY HUMAN RESOURCE MANAGEMENT

(CLASS NOTES OF DR. B. MADHAVAN)

Definition: Brech: “HRM is that part of management which is primarily concerned with the human constituents of an organization”.

Flippo: “HRM is concerned with the procurement, development, compensation, integration and maintenance of Human Resources in an organization towards accomplishment of organization goals. Therefore, HRM is the planning, organizing, directing and controlling of the performance of those operative functions”.

Definition of National Institute of P.M (NIHRM): “is that part of management which is primarily concerned with human relationships in an organization”.

Some basic concepts: (Scope).

HRM involves managing people at all levels in organizations Both as individuals and groups Both formal and informal relationships Developing people Not only controlling them Certainly not manipulating them Handling human beings is perhaps the most difficult job – calling for special training. Handling people is continuous in nature. What the organization has done to the

people yesterday will affect the performance and relationships today and tomorrow. HRM aims at obtaining willing co-operation of the people. Subject is bound by many conventions, codes and ethics Very strictly bound by laws. The subject calls for intellectual approach and emotional approach.

Importance of HRM -- Some general points

It is admitted universally that the human factor is the most vital and complex to handle. Therefore, proper study of the subject is necessary.

People are rational and reasonable – but not always. Only a professionally qualified person will be able to tackle both the situations.

Understanding people is a rare science and art. Therefore an organized study is a must.

Qualities of a Human Resources Manager

People are individually different in their abilities, ambitions, background, etc. People behave differently as individuals and as groups. The human element has negative potential also – means if they are not treated well

they can damage the organization.1

On the other hand if they are treated well they can give performance which is far more than proportionate to the inputs given to them. This concept is known as “Output more than proportionate to the input”. Only human beings are capable of this.

Importance of HRM to the organization

There has to be a specialized department to deal with human functions. Otherwise the remaining departments will pull the human functions in different directions

Only a full scale Human Resources department can make proper policies and implement them also

Bridge between management and workers Spokesman of the organization to the outside world The liaison function with all agencies like district administration, public, judicial

authorities, police, etc. – particularly with the government. Handling people who carry sensitive information is a very specialized job. Otherwise

the organization would suffer.

Qualities of a Human Resources Manager

Basic Intelligence All the qualities of a regular manager (plan, coordinate, control, delegate) Sound professional knowledge on operative functions and practical skills to

implement them Basic desire and happiness to deal with people Basic honesty of purpose Good interpersonal skills – ability to build bridges, co-ordinate and liaise. Ability to handle sensitive information and emotions Analytical and yet sympathetic Empathy (ability to understand others’ points of view) Pleasing manners and approachable personality Problem solving attitude He should be fair and appear to be fair.

Obstacles or Impediments for Human Resources Management

Generally there is a belief amongst many technical executives that Human Resources management is a common sense subject and any body can handle that. If the recognition for the specialized skills and attitudes of HRM is low, then the effectiveness of Human Resources management comes down.

Feudal approach of some organizations – not professional approach Too much of regulations from government and too many laws Problems of the unions Multi unions and rival unions within the same organization External leadership for unions Political affiliations of unions2

Absence of a national level regulatory body for Human Resources managers. NIHRM is only an affiliatory body.

Many organizations do not strictly follow the qualification and experience requirements while recruiting HRM.

The work force is heterogeneous – divided by regions, language, etc. Emotional type of reactions Non-develoHRMent of “one industry – one union” culture.

Functions of Human Resources Management

Managerial functions like planning, organizing, controlling, etc. Operative functions – specialized functions of HRM like recruitment, selection,

performance appraisal, etc.

NIHRM classification

1) Human Resources function (matters of individuals, policy matters, factual problems)

2) industrial relations (matters of group represented by union, collective problems, emotional problems)

3) welfare (township, schooling, canteens, hospitals, transport, perquisites and all advances and allowances)

4) general administration (discipline, handling of grievances, public relations, coordination with state legal and police authorities, estate protection, etc.)

5) Maintenance of records6) Audits and research7) Human resource develpment.

Detailed list of Operative functions

Human Resources policies, objectives and laying down rules and regulations Manpower planning

1) preparation of job analysis, job description and job specification2) plan for wastage and shift requirements3) plan for recruitment lead time4) balance it against plant requirements5) divide the total manpower required into various grades and pay scales – provide

for career planning also. Recruitment, selection and placement: This is the actual job of procuring people and

placing them in position. Familiarizing them with the organization is also to be done. Performance appraisal

1) lay down proper norms for evaluation2) introduce proper policies3) proper formats4) safe keep of appraisal records

Wage and salary administration/compensation administration3

1) fix pay scales according to the job requirements2) make sure they are comparable with similar organizations.3) Have a policy on overtime and incentives4) Have a plan for periodical wage revisions

Training and develoHRMent1) plan for workers and officers separately as per requirements2) formulate new packages for training based on specific requirements3) have plans for training the efficient people as well as the inefficient people

Promotion and transfers: Policies should be framed to encourage the individual and also to benefit the organization1) merit should be recognized without letting down people who have served long2) while transferring the individuals’ problems should not be overlooked.

Discipline1) To establish an efficient mechanism2) To detect deviations in performance or behavior and deal with them effectively.

Grievances1) There should be a healthy system under which a workman who is genuinely

affected can approach the management and set it right Industrial relations – to provide healthy relationship between management and

workers Welfare administration General administration Relationship with neighbouring community Termination management refers to termination of employer, employee relationships

on account of death, resignation, dismissal etc. Here the Human Resources function will have to effect settlement of accounts also

Safety administration – to constantly review working conditions, rest pauses, safety practices, sickness patterns and make proper schemes.

Implementation of social security – implementing of schemes like P.F., Gratuity, pension, etc.

Legal administration – to handle legal matters initiated by the company and against the company

Public relations

OBJECTIVES OF HUMAN RESOURCES MANAGEMENT

Core Objectives

Towards the organization to secure and maintain for the organisation, human resources capable of

performing the organization objective. To secure effectively and economically, the integration of organizational growth

and goals of the Human Resources in the organization. Towards people – “ to provide maximum develoHRMent of Human resources by

giving full opportunity and support”. Towards society – “To preserve and advance the welfare of the society along with

pursuit of organization goals”.4

Towards the profession – “To maintain highest standards of professional conduct”.

Collateral Objectives

Uphold the importance of human beings in an organization Provide job security and a safe atmosphere to work Provide interesting work Safe and healthy working conditions Optimum work load and commensurate wages Build liaison and links between management and labour Encourage good leadership on both sides Encourage healthy traditions and promote good culture Take care of the stability of the organization To promote loyalty and commitment of the people to the organization Maximise wealth of the organization and distribute it to everyone Bring Human Resources Management on par with any other function in the

organization

HUMAN RESOURCES POLICIES

A policy is a guideline for action.

According to Calhoon, “Human Resources policies constitute guide to action. Their genesis (origin) lies in organisational values, beliefs and philosophy”.

Bombrick – “Policies are the statements of the organisations overall purposes and plans of action – in various areas like Human Resources, finance, marketing, etc.”

Uses of Policy (objectives)

They set out clear ideas about how to proceed in a given situation They provide guidelines for planning and execution of day to day activities They are the vital link between the mission and objectives on the one hand and the

practical realities on the other hand They help the management to maintain consistencies and uniformity They channelise the efforts of the people towards the goals of the organization They set up standards or norms for measuring performance

Types of Policies (Objectives)

General Company policies or overall policies Vs Specific policies External and internal policies (External policy regulates relationship between the

company and the outside environment)

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Vertical and horizontal policies (superior subordinate relationship and relationship between two department at the same level)

Oral and written policies (superiority of written policy – discuss) Formal and informal policy Central and local policy (head office directives and unit level working)

Principles or guidelines for framing policies

Policies should correspond to the general objectives and philosophy of the management

They should be within the legal framework of the country – particularly labour laws. It should help growth of the organization as well as the individuals Policies should be stable but should not become rigid. It should provide for

flexibility in genuine cases The policy should be relevant both in the short term and long term They should be reasonable, acceptable and ethically (morally) sound They should be dynamic and should adapt to change It should correspond well with the policies of other functional areas within the

organization.

Is Human Resources management a profession?

McFarland has defined profession as follows:

Existence of an organized body of knowledge Formal methods of training and transferring knowledge Professional association Well defined codes for conduct Emphasis in ethical standards

Since HRM is meeting all the requirements it is certainly a profession.

Whether Human Resources Managers are born or made?

Many Human Resources traits like emotional stability, coordination abilities, willingness to work with people are in -born. It is quite difficult to impart these faculties by formalized training. Therefore, there are many aspects of HRM where inborn qualities are very helpful.

On the other hand the modern world has grown so complex that a person cannot discharge his duties effectively only on the strength of his personal intuitions. A lot of formal qualification, training and exposure are certainly necessary to function effectively as a Human Resources manager (or as any other manager). Not all the people who have personal attributes are able to become Human Resources managers. Either they do not have professional qualification or they may not have experience and exposure or merely they may not get the opportunity at all. Thus it is incorrect to say Human Resources Managers cannot be made. The above factors are certainly important.6

A HRM with fine inborn qualities will be greatly benefited by the addition of experience, opportunities, professional association, training, etc. At the same time mere training cannot transfer a skill to any one who does not have basic aptitude. Therefore, HRMs are both born and made.

TRAINING AND DEVELOHRMENT

“The process by which inputs are given to an individual to improve himself” – training.

“DeveloHRMent is the effect of training on the individual”.

In other words, “Training is what the organization gives to the individual. DeveloHRMent is what the individual does with it or how the individual applies the training”.

Distinguish

Training Development

1) Leads to skill improvement Also knowledge and attitudes2) Applicable to lower levels Managerial levels3) The effect is immediate and measurable Long range and qualitative4) Effect lasts for a short time Long duration5) Mostly prompted by external requirements Internal motivation

Note: In real life both the words are used interchangeably.

Difference between management education, develoHRMent and training

Management education

Imparted by universities and regular academic institutions – the program is highly academic and only knowledge inputs – leads to the award of suitable degree at the end.

Management Training

Organized by the industries and such other organization – catering to improvement of existing Human Resources as well as to train up freshly recruited managers. Many good companies have programs for new recruitees even for a full year. These programs are mostly in house with the help of external experts and even academic institutions.

Areas of training

Where a person does not know – knowledge training7

Where a person knows but does not do – skills trainingWhere a person knows but does not care – attitude trainingWhere a person forgets often – periodical refresher trainingFor a right person – training in understanding and insight.

Learning Principles involved in training

People will improve if they are given some spells of introspection from the burden of routine work – training does that

People will improve if there is no threat for them to admit that they require improvement

People will do better if they are given a feedback about how they are doing at present and given professional help

People require constant and periodical exposure to better techniques and concepts People learn not only from trainers, but also from other members of the training

group

Important principles involved while setting up the training and develoHRMent department of an organization training is classified as, training within industry and training outside industry (TWI and TOI).

i) Training objectives: The objective should be twofold. First one to benefit the individual and secondly to benefit the organization.

ii) Importance given to training function: The head of the training department should be a senior level person and he should report to the Chief Executive of the organization.

iii) The infrastructure support: Regular staff, case study materials, audio visual equiHRMent, classrooms, machinery, etc.

iv) Permanent and Expert Faculty

v) Financial Support: There should be a sizeable budget for training and the training chief should have the power to spend it.

vi) Publishing a Calendar of Events

vii) Identification of training needs: This is a continuous exercise – the data could be generated from

indices regarding performance of the organization – like production, quality, wastage, etc.

performance appraisal records8

complaints from the market like delivery slippage, customer complaints regarding quality complaints from service mechanics, etc.

complaints from unions survey conducted specially for the purpose

viii) Measuring the effectiveness of training:

This is easy in skill related training like apprentice training. But in executive develoHRMent, qualitative methods have to be used. One of the popular ways is to ask the trainee officers themselves to give a write up about the usefulness of the program and its impact on him.

ix) Applying the effects of training after returning to job:

This is the most difficult part of the training. Many organization follow different methods. Normally most organizations ask the trainee to take up a complicated person on his return and complete the same.

Methods or techniques of training:

Methods can be classified as trainer centered (no scope for participation by learner) and learner centered – where participation from learners is involved.

Lecture – Oldest method – ideal for classroom situations – to pass on large quantities of theoretical inputs in short time – even today it supplements all other techniques.

Demonstration – Illustrated lecture – supported by audio visual equiHRMent – it is also called training through eyes and ears.

Field trip – First lecture, demo about the concepts, then the group is taken to the actual field to see the actual people, actual events and field the actual elements.

Buzz groups or syndicates: A problem is given to a large group – then the group is broken into smaller groups, they discuss the problems and each group makes a presentation to the large group.

Case study – A written description of the problem is given to the group. Each individual has to analyse the problem and find solutions. But many times, the principle of syndicate is combined here.

Role Play -- Suitable for small groups – a live situation is given to the group. The members are allotted different roles like Chairman of the company, Marketing Director, Finance Director, etc. and they are asked to discuss the problem by playing the role. This method is good for building up attitudes and interpersonal skills.

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Simulation – The conditions of real situation are replicated (reproduced) as closely as possible. The member has to play the event, take decisions and face the results. Normally simulation is used when the cost or risk of the real situation is too high. Example: Road Driving training on computer.

Symposium – Many experts deliver talks on a given subject without participation from the audience. Suitable when divergent expert views are required to be presented to a large audience in a short time.

Debate – Helps conceptual clarity – people argue for and against a title.

Colloquy or panel discussion – Here the group of experts handling different aspects of the same subject are assembled and presented before an audience. The arrangement is that the audience will ask questions and each question will be answered by all the experts one by one.

Example: To discuss principles of industrial relations, we may get a Human Resources manager, a lawyer, a union leader and a government labour officer. They are presented before the audience. For each question from the audience all the four experts would give replies based on their own experience.

On the job training – (putting the person on the job) – ask him to do the job and observe – by trainers. They suggest improvements – normally supported by theoretical inputs also. This fits in with the “earliest maxim or dictum“ (Gold Rule) of training. “Tell, Demonstrate, ask him to do and suggest corrections”.

Vestibule – When a large number of persons have to be trained on skilled type of jobs, this method is useful. This is a highly structured and highly formal so as to suit large groups. Under this method many batches could be trained simultaneously or successively. This is normally conducted by experts who are extremely good at the job as well as on the training techniques. This method also involves a blend of classrooms and on the job. Example: Apprentices Training.

Brainstorming -- Developed by Alex Osborne in 1938. A group of learners are assembled and a problem is given to them. The learners are preferably from inter disciplinary areas (not exactly from one discipline). The learners attempt to solve the problem by generating and collecting ideas from the group. These ideas are collected during spontaneous discussions and free from official grades or levels.

The suggestions may be practical, impractical or outrageous (silly). But the hope is certain discussions will produce or provoke a useful spark in some other member of the group which will lead to the solution. The brainstorming technique is used extensively in practical situations also. In an office situation the manager assembles a group of subordinates and other managers and gives a practical problem to them. They apply the Brainstorming technique and solve the problem.

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Experiential Learning -- This is learning by discovery. Useful for self develoHRMent. Here a group is asked to do a problem and as they are doing, they discover some important facts about themselves and about the problem. Since the facts are self learnt, they are likely to be retained for a very long time.

Programmed instruction (or) programmed learning – In this method a lot of homework or research is done about the objectives of the training program, before committing the people to training. The company determines what is the end behaviour that is expected of the participants at the end of the program. According to that the course details and training materials are printed and issued to the participants. Minimum of oral instruction. May be once in a day the trainer reviews the progress of the trainees. The advantage of this method is, the objectives are clear, the course material is permanently available with the participants and one participant is not affected by the pace at which the other participants learns.

Nowadays this technique is used in blend with many other techniques.

Sensitivity Training – (Sensitivity Labs) – It is used for personality development of participants. Normally used in T groups meaning Training Groups – means that a group of participants who have known each other for a fairly long period like a team of managers, who have worked together in the same organization.

The basic idea is the members of the group should have personally interacted with each other and should be in a position to give helpful comments and criticisms about the behaviour of each other.

There are many variations of sensitivity labs. One popular version is the members (say around 14-20) are assembled in a room, comfortably seated. Each member is asked to comment on his plus and minus points and all other members are asked to give their opinions about this person (both plus and minus).

Based on the feedback, he can improve. But this method calls for enormous skills on the part of the trainer or the facilitator. He should be able to conduct the session without leading to personalised attacks and quarrels on each other.

MANPOWER PLANNING – J.A / J.D / J.S

Manpower Planning is an important function of HRM. It rests on three pillars – job analysis, job description and job specification.

Jucius, refers to Job Analysis as “process of gathering information about the operations, duties etc. about a job and the organizational aspects of a job”.

Job Description: Flippo: “The immediate product of job analysis is job description”.

What is collected in Job Analysis?11

Job identification – job title, code name, alternate titles, etc. Operations involved – what a typical worker does, the tasks of involved How the job is actually performed? -- Time and motion study, sequence of

movements for the material or the man Significant characteristics of the job – location, physical setting, special hazards and

discomforts Materials used – both solid and liquid substances Machinery/tools/equiHRMent used Physical and mental attributes required The content of responsibility Requirement to work in shifts Details of supervision

Job Description:

Generally, the purpose of compiling JA is to make JD. JD adds some features to job analysis like

organizational aspects – where the job is located in the organization relationship between the previous and next jobs. Example: How the material moves

from previous job to this job and to the next job emphasis on reporting relationships and responsibility aspects

Difference between JA and JD:

JA is in work sheets form. JD is in summary form.JA is the process of collecting information. JD is the process of writing it.

Maurice Cummins has summarised both JA and JD “as a statement of the purpose, scope, duties and responsibilities of a particular job”.

Job specification:

Definition by Flippo “It is a statement of minimum acceptable human qualities necessary for the proper performance of the job”. Thus it is referring to the characteristics of the job holder and not the job.

physical attributes like physique, strength, height, ability to keep awake at night qualification, age and experience aspects mental attributes like analytical ability, creativity, concentration etc. language skills basic perception abilities – voice, vision, hearing etc. emotional traits, like aggression, boldness social characteristics like leadership abilities, interpersonal skills, communication,

etc.

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Methods of doing JA:

Questionnaire: It is simple and easy to handle. Normally suited for routine jobs. Normally handled by mail.

Check List: This also is filled by the incumbent (worker). It is easier for him to fill up check list than questionnaire. But a lot of back ground work will have to be done by the job analyst.

Interview: Writing is done by the analyst but not the incumbent of the job. This reveals many factors which could be missed in other techniques. Therefore, this is a good method to supplement all other methods.

Observation: The oldest method – from the days of scientific management movement. Best suited for short cycle operations with predictable activities. Here the job analyst stands near the operator and writes his observations.

Self recording diary: The worker himself writes the job analysis – is partially structured – some portions left unstructured. The recording is done over a long period. Scrutinized by job analyst at a convenient place and time.

Participation technique: The job analyst does the work with his own hands along with the regular workmen and records.

Conference method: Here the supervisor also gets involved. All the analysis is done along with him.

Critical incident method: This is not a normal analysis. Here the focus is on exceptional factors. This is very useful to analyse jobs which have lot of routine elements built around a few critical elements.

Uses or importance of JD, JA & JS:

Complete knowledge of the jobs Relationship between various jobs Good for detecting organizational ills like structural problems, reporting

relationships, etc. Basic document for recruitment, selection and placement For promotion and transfers For training and development For systems and procedure improvements They serve as measurements for assessing performance in all areas like

production, quality, cost, etc. Basic document for counselling Helps in measuring job satisfaction and improving it These documents lead to job evaluation which is the corner stone in wage salary

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For health and safety aspects For job redesign and reengineering.

Some minus points (Demerits):

It is a very time consuming and expensive job When each job role is specified, the workers would like to stick to it. They would

refuse to do even minor variations. It is very difficult for the management to use a worker in more than one trade or skill

This reduces the worker to the level of machines by laying down very specific operations, movements, duties, etc.

It becomes a legal document for the workers – to argue in collective bargaining These documents can be accurate only for the workmen jobs – very defective if

applied to managerial positions.

MANPOWER PLANNING (or) HUMAN RESOURCE PLANNING (MPP) ( REMAINING TOPICS)

Dale S. Beach: “HRP is a process of determining and assuring the organization that the organization will have adequate number of qualified persons available at the right time, performing the jobs that meet the requirements of the organization and providing satisfaction to individuals concerned.”

Coleman: “MPP is the process of determining the manpower requirements and the means of meeting these requirements in order to carry out the integrated plan of the organization.”

Dale Yoder: He emphasizes that MPP comprises of four aspects1) determining the requirements2) assured supply of proper people3) their training and development4) how well the organization utilizes them

Basic steps in MPP

Ascertain the objectives of MPP – the MPP objectives should aim at both quantity and quality aspects -- The objectives should aim at the satisfaction of the organization and of the individual. The objectives should cover both short term and long term requirements and should form integral part of overall company objectives. The objectives should also indicate a clear policy regarding compensation (salary) matters.

Assessing existing inventory: If it is a running organization, this step becomes important. The Human Resources Manager should gather full data regarding the availability of existing people, skill-wise, qualification-wise, designation-wise, age-wise, grade-wise, etc.

Demand forecast14

– The most important factor is JA & JD – also work study, work sampling and workload measurements

– Establish a base for manpower projections – is it volume of production – volume of expected sales, etc.

– Productivity of the people– This sum total has to be balanced against machine availability– Provide cushions for the effects of learning curve (means people work slower in

the beginning of a project and pick up speed and expertise as they go along)– Provide for shifts/leave and absenteeism– Provide a percentage for manpower wastage like resignation, death etc.– Provide for controllable variables like machine capacity and be prepared for non

controllable variables (government policy)– Keep reserve for expansion and growth– Make trend projections or any other technique for unpredictable changes in

manpower– Keep provisions for promotions and transfers– It is a continuous and dynamic job

Time horizon – Any good organization must have a short term and long term plan. Short term means about two years – consider factors like machine capacity, changeover from a closing project to a new project etc. Long term means five years and more – consider factors like change in investments/capital, change in technology, general economic prosperity of the country, change in market, etc.

Forecast of supply Internal Supply Factors: Like promotions and transfers within the organization. They do not add to the numbers – also called quality additions.External Supply Factors: (Quantity additions) – the population factors– present employment trends– availability of educational training institutions– vocational guidance institutions– availability of part time labour– competition from nearby industries– availability of infrastructure like roads, railway stations, airports, schools and

houses– law and order– willingness of labour to move to different destinations– resistance to outside labour– law and role of government– social security measures (ESI, PF, etc.)

Actual Implementation – this is the physical process of bringing the people in. It involves stages like

advertisements, recruitment, selection, placement, etc.– this should be linked with compensation plans (salary)– the time lag between advertisement and actual positioning of candidates should

be taken into account– wastage should also be restored

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Periodical review and course correction Performance appraisal Merit rating – Incentives Improvement of workmen’s performance – Through Training

Succession Planning:

Any good Human Resources department must compute the number of people who are going to leave the services in the next few years. This information is tabulated skill wise, grade wise, etc.

Skill wise – how many fitters, welders, etc.Grade wise – how many junior managers and senior executives

The Human Resources department must plan to fill up those vacancies which are going to fall vacant. The action starts much before the wastage would take place. The new person (called replacement) should be positioned at least a few months before the existing incumbent will go away, so that the work will continue smoothly.

Career Grooming or Executive Grooming:

This is particularly relevant for top positions. The Human Resources manager should identify a few very bright officers who are good enough for the top positions in the organization. Such people are groomed in many ways take over the top management in due course of time.

exposure to different projects run by the company planned job rotations, to give knowledge in various functional areas frequent interaction with the top management including attending the board

meetings project such officers to customers, suppliers and even collaborators give them all possible training, including training abroad identify them publicly at suitable meetings, occasions, etc. as the next

generation management.

Executive grooming has 3 major objectives

to groom bright officers to fill top key positions of the company from officers within to safeguard bright officers from going away to competitors

Wastages

Wastage refer to reduction in number. There are known or predictable wastage such as superannuating or retirement or termination at the end of contract period.

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The Human Resources department must carefully study these figures for the past period and make trend projections for the future. This will be helpful for succession planning.

Some other wastage are partially predictable like retirement on health grounds (medical terminations) and voluntary retirements (a person is allowed to go with complete retirement benefits much before the age of 58 – 60).

Some other wastage like death and resignations, dismissals, jumping the bond are totally unpredictable. It will be difficult to establish trend projections. However, a ratio could be built between predictable and unpredictable wastage and to be applied in manpower calculations.

When a recruitment and selection takes place, a good Human Resources manager should recruit a few persons extra to offset the effect of wastage.

Importance of manpower planning:

Manpower Planning is a fundamental exercise. Slippages (mistakes) in MPP are costly and take long time to rectify

MPP is required to make optimum use of manpower To balance machine availability against MP Plan for promotions and transfer Plans for contingencies – both expected and unexpected The organization can focus on short term requirements and develop proper

orientation for the long term MPP is a good tool to evaluate MP matters. In general and pro-activity in particular MPP ensure right man for the right job The value of any Human Resources department depends on how well the MPP has

been done MPP is helpful in detecting many problems of the organization MPP is helpful to the organization, to the industry and the country as a whole

Turn over: - Turn over is a part of Manpower planning. It refers to the rate at which employees are leaving the organization. Its modern term is Attrition; this is calculated as a proportion of existing total strength or with reference to the people who joined as new entrants. It is 2 ratios. One is = People left/people recruited in that batch. Another ratio is = People left in a year / Total Strength of the organization.

Normally calculated with reference to a year or with reference to a selection lot. The higher the turn over rate, the worse is the HR management. Turnover Ratio helps the management

1. To find out the success of any recruitment effort. 2. The soundness of wage and salary administration (Compensation)3. To detect other organization problems4. To find out in which trade maximum losses take place5. For manpower planning in those areas.

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Manpower Audit

The function of Manpower audit is to identify: -

1. The various activities of manpower planning2. To find out standards / establish standards for measuring the effectiveness of the

above activities3. To carry out the actual measurement4. Manpower planning has many elements like policy, demand forecasts, supply

forecasts, the physical positioning of the people, quality and quantity factors.

PERFORMANCE APPRAISAL

It is a systematic evaluation of the performance of each employee and officer in an organization as written up by his superior. It is filled in a written format once in an year (in some companies may be once in 6 months – generally once in a quarter for probationers) and filed in a PAR dossier.

The dossier gives a bird’s eye view of a person’s performance over the years.

Uses or Importance of PAR system:

There is no real alternative. In the presence of written record only oral assessment will prevail. This will lead to chaos.

It is also a legal document. If there is a dispute about a person’s performance, the courts may call for PAR dossier

For determining incentives and wage increases For promotions For transfers and job rotations For determining training needs For executive grooming To determine the effectiveness of the company’s recruitment over the years To get comprehensive view of a department’s performance To detect organization ills Gives feedback to a person about his own performance as judged by his superiors

Pitfalls (or) Problems (mistakes while writing PAR)

- Excessive leniency or strictness amongst the raters – some raters think that they should rate their subordinates very strictly (not to exceed 4 out of a rating scale of 6) whereas some other bosses do not mind giving six to a large no. of subordinates.

- Differing standards amongst raters. For example, against the trait attendance one boss may take a subordinate as unsatisfactory for 5 days absence in a year whereas another may rate the same situation as very good.

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- Halo effect: means if a subordinate is good at one thing (public speaking) the boss credits him as being good at many other things also (like performance on the job).

- Effect of last few jobs: If the performance appraisal is written up in the month of March, the bosses may be unduly influenced by the jobs performed by the subordinates in the month of January and February. He may not remember his performance in previous June or July.

- Central Tendency: If a boss rates a subordinate as exceptional, he may be called up by the top management to explain (out of a rating scale of 1 to 6 if he gives 6). On the other hand if he rates the subordinate at one or two, the subordinate may lose his promotions and pick up quarrel with the boss. Therefore, many bosses give them the mid point ratings or 4 or 5, to avoid trouble.

- Playing God: People act in funny ways when they sit in judgement over another person’s future. Most of them develop kindly or godly attitudes and try to give good ratings. Some of them resort to victimization. In any case, it is not an assessment of actual performance of the subordinate.

- Personal Likes and Dislikes: The personal relationship between the boss and subordinate influences the appraisal ratings.

- Assess traits or performance: Bosses do not know whether they should assess the subordinate on the performance (volume of production, quality, rejections, number of tasks completed, delivery slippages) or should then assess the subordinate based on traits like honesty, co-operation, effectiveness, etc.

- Alignment of weakness and strengths: Sometimes the subordinate may be strong in those areas where the superior is weak. He supplements and helps the superior in his weak areas. In such cases, the subordinates get unduly high ratings.

- General Problem of workload: Top executives find it difficult to find time for writing PAR. Besides Engineers do have a very general hesitation for paperwork.

How to remedy the defects (or) pitfalls?

Good policy framework and it should be well pursued. Constant training to raters Give proper guidelines about what is poor, average, above average etc. on each

item factor of appraisal. Example: In attendance 10 days absence after exhausting leave is considered unsatisfactory. But only two days’ absence is considered average and no absence is good etc. This will avoid the problem of differing standards in between raters

Help matrix: Good organizations generally give guidelines about various aspects of the appraisal – this is printed along with the appraisal form

Review by the next higher one level or two levels of management – this will avoid personal bias of the superiors.

Maintain performance diaries on a monthly basis – to reduce problems of getting influenced by the last few jobs done.

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Have an overall moderation at company level – the Human Resources manager along with top management reviews PAR, department by department. This will reduce problems of uniform overrating in some departments and underrating in other departments.

Promote openness and reduce the element of secrecy. Adopt MBO method of evaluation. (Explain)

Methods of PAR system (Techniques):

1) Ranking Method: Here the rater compares the performance of one rater against all others and places him in a simple rank order. This method is the simplest to operate but highly subjective. The tendency is not to compare performance but people as a whole.

2) Paired comparison method: This is also a ranking method. The rater compares one ratee against all other members, one by one in a limited group (in the same dept.). The final rating of the person depends on how many times he was judged better than others.

3) Checklist method: Here the superior has to rate the subordinate by ticking a statement in the checklist ie., for each aspect of the ratee’s performance a set of standard phrases (or) sentences are given. The rater must tick the sentence or phrase which is most appropriate. The system is easy to operate because the rater has to put only tick marks. But it is extremely difficult to construct a good checklist sometimes it may take a few years to perfect a checklist suitable to the organization.

4) Forced Choice Method: It is an improvement over checklist. Here the phrases or statements are assembled in groups – some of them favourable some of them unfavourable. The rater has to indicate his choice from within the group of statements. In this method the Human Resources department does the scoring (conversion of tick marks into marks) and therefore, raters’ bias reduce.

5) Field review method: After getting the PARs the HRM meets the raters, discusses with them and arrives at the final ratings. In this method, variations between departments could be reduced.

6) Critical Incident method: A list of factors or requirements which are critical to the job are first arrived at. The rater is asked to rate the subordinate with reference to these factors. A group of experts will later on assign weightage and convert them into final ratings.

7) Rating scale method: Most popular method. This technique is used in combination with every other method. After rating the subordinates by using many different techniques, finally the rater is asked to indicate a total opinion – by using this technique. Rating scale is used in 2 versions. One is using numbers ranging from 1 – 6 for example and the other is using phrases like exceptional, very good, good, average, below average, etc.

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8) Assessment center: The HRM meets all related people (not only the immediate superior) and collects ratings about a particular ratee. Example, in the case of a production manager, opinions are collected from his own boss, the quality managers, design managers, the production planning people, etc. Then a final rating is arrived at.

9) Essay appraisal: Superior is asked to write in freestyle. The report is likely to be very spontaneous and natural but comparisons between two ratees become very difficult.

10) Potential appraisal: A PAR system deals only with past performance. But many good organizations want to know the potential of a candidate for serving in a higher position. Therefore, this technique tries to measure his probable performance on the post to which he is likely to be promoted. Assessment centere method is ideally suited for this purpose.

11) Confidential Report System: The term is used when the PAR system of an organization is totally secretive – a subordinate never comes to know what is his rating. Ideally each organization should determine how much of openness can be in built on their PAR system.

12) M.B.O – Refer to detailed notes.

WAGE AND SALARY ADMINISTRATION

Beach: “ The establishment of an the implementation of sound policies and practices of employee compensation. It includes such areas as job evaluation, development and maintenance of wage structures, wage changes, wage surveys and related issues”.

Components of Wages:

i) Basic Pay – for the skillii) Increment – for continued learning of the skill year after yeariii) Incentive – for efficiencyiv) Dearness Allowance – for cost of livingv) Overtime – for clearing extra workload which cannot be done during normal

hoursvi) H.R.A. – allowance for rentvii) C.C.A. – to meet additional cost of living in metrosviii) Social Security Schemes – like ESI and PF and pension

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ix) Welfare – fringe benefits – perquisites (all other allowances and loans) like transport, medical facilities, housing, schooling, etc. – not related to efficiency or skill. These are given to enhance quality of work life – also called QWL.

x) Bonus – sharing the profit.

Payment by time rate Vs. Piece rate: comparative merits and demerits – refer book.

Important principles of Wage and Salary Administration:

- The jobs that call for equal effort/skill/knowledge should be classified into one cadre- Find out the total no. of jobs and total positions as per MPP.- The financial worth of each and every job should be ascertained based on job

evaluation. After the financial worth of all the jobs is ascertained it should be fitted into the cadres. This is the starting point of pay scales.

- Fix the actual pay scales.- Fix the increments, should the incremental slab be 15 or 10.- Should there be fixed increments or flexible increments. Should there be an

efficiency bar what should be the actual quantum of the increment?- What should be the pay differentials (means the gap between two cadres or gap

between one pay scale and the other)?- For each job the highest point in career should be fixed – what is the highest cadre

for each job? For example, a medical officer of a manufacturing organization cannot become the CEO, whatever be his salary.

- There should be a balance between reporting relationships and pay as far as possible – means the bosses generally should get more pay than the subordinates.

- The pay scale should be adequate in number to provide for promotional avenues.- Any policy on compensation should be in tune with the overall company policies and

the Human Resources policies- The organization should have a clear policy on overtime and incentives.

JOB EVALUATION

Methods of Job Evaluation

Ranking: Throughout the organization, the relative worth of each job is measured and given a rank. Very subjective method. Not good.

Grading Method: Classify the jobs according to categories like skilled, highly skilled, semiskilled etc. Not a comprehensive method. However, it can be used along with other methods.

Point Rating Method: This system uses internationally standardized manuals. The important factors of each standard job and the marks for them are furnished in the manual. In other words, the manual gives the detailed breakdown factors of standard jobs and their marks. Against these data, the employer should breakdown each job in his organization into important factors and design marks or weightages. The next step is to convert these marks into financial values.

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Factor comparison Method: The manuals may not offer accurate weightage in the case of many jobs. Particularly specialized organizations. Therefore, under this method, the employer develops indigenous standards instead of relying on international manuals. Here the employer assembles a group of experts who will choose the key jobs within the organization, break them into factors and assign weightage – compare all other jobs against these key jobs, factor by factor and give relative weightage. Then convert them into financial values.

Difficulties with Job Evaluation:

Heavy time and cost factors Union problems JE methods should be constantly updated with technology changes. However,

this is rarely done There are practical problems like difference of opinion between experts in

assigning weightage in the comparative norms, etc. JE tends to curb creativity. It leads to inflexibility. People stick to the job as done

at present. It discourages exceptional workers. The greatest defect of JE it has no way of measuring actual performance on the

job.

Merits of Job Evaluation:

It is the only logical and systematic way of doing wage and salary administration An exercise in JE stabilizes internal norms and standards. Otherwise, there would be

chaos in measuring what each job is expected to do. It removes wage inequalities because it links the job worth to the wages. It ensures proper wage cadres and classifications – also wage differentials. Jobs are properly classified as unskilled, semiskilled, etc. Helpful for recruitment For promotions For job rotation and training It is the basis for resolving job anomalies, wage anomalies (high job paid low, low job

paid high) and such other complaints. It forms the basis for any collective bargaining or union management negotiations.

How to proceed with Job Evaluation? Steps in J.E.

Clear objectives Publicize the JE scheme proposals and gain acceptance of all parties Choose the key jobs carefully Adopt a proper technique of JE Develop proper norms and standards for comparison Constitute a proper term to carryout JE – Human Resources representative,

technical reps, industrial engg. Reps, and workers reps. Review the job evaluation periodically and make corrections.

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Whether JE alone can fix wages? Or factors other than JE which influence wages:

Capacity of the unit to pay Prevailing wage rates in competitor’s units Demand and supply factors Ability of the employees to bargain Cost of living Employees’ job experience (sometimes you have to pay more than the JE rates to

get an experienced person) Employee’s actual performance on the job Legal factors (like min. wages act, PF, Gratuity, Leave benefits, medical benefits, etc.) Social factors (like the employer has to pay enough salary for the minimum

subsistence of the workmen’s family) -- normally this is bound to be more than the JE rates.

Wage Agreement - Most organization have periodic agreements between unions and management (say once in 4 or 5 years) to revise wages and salaries of all the Human Resources in the organization (collective bargaining notes).

Incentive Schemes:

i) Simple piece rateii) Taylor’s differential piece rate schemeiii) Halseyiv) Rowanv) Budeaux multiple piece ratevi) Merricksvii) Gantts task/bonus planviii) Group Incentive Scheme

RECRUITMENT, SELECTION, PLACEMENT, INDUCTION, PROMOTION AND TRANSFERS

RECRUITMENT

According to Dr. Bhagoliwal “it is the process of attracting potential employees to the company”. It is the process of searching prospective employees and stimulating them to join the organization. It is also defined as a series of steps taken to identify the job seeker and bringing him in contact with the company. It involves stages such as:

Stages in recruitment:24

From MPP identify vacancies Identify job details and specifications Identify sources of recruitment or sources of possible manpower – both internal

and external sources Notify in the press and such other avenues Send application forms to interested candidates Receive application forms, scrutinize them and make broad waste summaries of

applicants.

Internal sources of recruitment: Promotions, transfers, job rotations. These do not add up to the total Human Resources already available in the organization. But it has the advantage of motivating the existing employees, improving their loyalty with the organization and as also the organization knows the candidate very well.

External sources: (a) Newspaper advertisement (b) Advertisement in Professional magazines (c) Employment Exchanges (d) Campus recruitment (e) Other field trips (f) Competitors (g) Part time manpower (h) Contract manpower (I) Unions (j) Recommendations by existing employees (k) Unsolicited applications or stray recommendations or contacts (l) Professional placement agencies (m) Professional associations.

An employer should constantly evaluate the sources of his recruitment with regard to their effectiveness such as (1) what is the yield - how many candidates it has successfully offered, in terms of quantity and quality (2) time lag - how much time it takes to offer a good candidate (3) cost aspects.

SELECTION

Dale Yoder “the process by which candidates for employment are divided into 2 categories - those who will be offered employment and those who will not. Thus the selection process is a Negative process”. Selection means choosing a few out of the many candidates available. The candidates are subjected to a series of elimination processes and the final ones are chosen; stages in selection Scrutinizing the application Calling the eligible candidates for test/interview Constitution of Boards for test/interview Administering the test Administering the interview Medical/Physical examination Negotiating the salary aspects Checking references Issue of Appointment order

Steps in selection:

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make a detailed scrutiny of eligible candidates fix up suitable tests and interviews fix proper tools and standards and experts for conducting test interviews call the candidates administer the tests in proper atmosphere interpret the test results and screen administer the interview and select – elicit all clarification during interview fix up compensation package verify character and antecedents (previous employers’ reports) medical examination issue the appointment order

How to measure effectiveness of selection process:-

After the selection is over, find out whether you got the required no. of people. Over a period of years if the organization has not got the required no. of people consistently, the audit should focus on further analysis like mistakes in specification/notification, unsatisfactory salary, terms and conditions not clear etc., If the organization has not got the right quality - further analyze the job specification, the quality of testing and interviewing etc., another area of audit is the time lag between notification and actual position of the candidates. The time lag should be a few weeks. Otherwise, the organization should analyze the causes and take action. There are many areas in which each organization must develop its own standards and measures the effectiveness of their manpower planning.

PLACEMENT

The process of actually fitting the appointed candidate to the job. The process of positioning the candidate in the actual position. This is not a big issue if there are few vacancies only. But if the organization is large and many vacancies have to be filled, the Human Resources department will have to place the candidates with due consideration to many special factors such as (a) the candidates’ preference for the station in which to work (b) Financial considerations like advance increments (c) Administrative aspects like independent charge, designation, reporting relationship, etc.

INDUCTION

Induction is the process by which a newly appointed candidate is accustomed or acclimatized with the professional and social environment of the job. The organization (Department Head) receives the new employee on the first day and brief him about the organization, his department, his work, the work practices, etc. He is then introduced to his colleagues in the department. For a few days or weeks, he is not expected to work on the job but expected to familiarize himself with the Company, his work, his future, his department and the culture and traditions of the company. This program serves two purposes (a) the individual gets organized inputs about the company. He is

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not asked to jump into work (b) If the correct first impressions are created, he becomes loyal to the organization.

Induction Programme

A systematic program organized by the employer for familiarizing a new entrant with a job with the organisation and the connected social aspects.

Objectives of Induction Programme

1. To have a structured method / procedure for welcoming a newly joining individual and giving him a right orientation about the organisation and his role in the organisation.

2. To help him get into technical, business, inter-personal and sociological background of the job.

3. To help synchronize his objectives and organisational objectives.

4. Not to allow to scope for a fresh appointed to get ideas from an existing disgruntled (dissatisfied) employee of the organisation.

PROCEDURE FOR INDUCTION PROGRAMME

There are Three Basic Stages - Probably 4 Stages.

1st Stage: Introductory Orientation by the PRO or Training department.

2nd Stage: Specific Orientation by immediate boss.

3rd Stage: Further Orientation by Human Resources Department.

4th Stage: Follow -up orientation if there is need.

Introductory Orientation:

Generally one day duration, done by Pr Department or training department. First welcome by Proper Executives. Candidate is told by trainee manager or PR manager (with the help of documentary). The company’s history and evolution its product, the locations, Market Standing, Organisational chart, locations and layout of the plant technologies employed.

Specific Orientation:

Done by departmental bosses for about a week, normally it takes half work and half briefing - a kind of on the job training come familiarisation.

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I. Introducing to other colleagues II. Technical details.

Actual technology, drawings, tools, jigs and fixtures, components, details of machines, speeds and feeds, cooling systems etc.

III. Working Conditions:

Working hours, tea-beaks, exit and entrance, identification badges, uniforms, holidays, overtime, safety aspects leave entitlements

IV. Managerial Aspects

Leave granting powers, who are his subordinates, reporting relationships, technical powers, financial powers, and span of control, what are the confidential matters.

V. Security Components.

VI. Welfare Details or Perks:

Salary and increments, transport, salary, canteen, hospital, first aid, company hired accommodation, township etc. Give details of JA & JD on the shop floor.

Further Orientation:

General Do’s and Don’ts. Important policies and rules. Culture and traditions of the organisation on various matters. General behavioural tips. The reward and punishment systems. All classifications on benefits like salaries and perks. All loans and advances. Career advancement: Festivals and functions celebrated in the company standard operating practices. Unique operating Practices. What to do in the event of IR problems. Social Security schemes, PF, ESI, and Gratuity. Other facilities like school fees, officers club etc. Scope for further education etc.

Follow - up Orientation:

- Meet the person after a time gap may be 6 months and interact with him.- Find out whether the induction programme was alright.- Encourage him to ask questions.- Find out whether he has any new problems and try to resolve.- Based on his inputs, make improvements to your induction programme.- Good companies have printed brochures containing all these details.- Induction programme must be modified to suit the level of the appointee. -

Make sure to pay full salary for induction period.

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PROMOTION

According to Spriegel “A Promotion is the movement of an employee to a job that pays more money or that enjoys some preferred status”. Pigors and Myers “the advancement of an employee to a better job, in terms of more responsibility, status and pay”. If the promotion involves only higher responsibilities without higher pay, then it is known as “Dry Promotion”. If he goes up the hierarchy it is known as “Vertical Promotion”. If he moves within the same level it is “horizontal promotion”.

Please see text book for a detailed discussion on Promotion by Seniority Vs Merit

General rules regarding good promotion scheme:

The organization has to have a proper promotion policy and publicize it well The policy should cater to different segments/areas of people like there should

be a separate policy for senior officers, junior officers, supervisors, highly skilled/unskilled workmen, etc.

Whether the promotion will be effected based on arising of clear vacancies like death or retirement of the existing incumbent or promotions will be given without reference to vacancies

Whether the promotions will be awarded as and when vacancies arise or only once a year say, June of every year. The latter idea is better and is convenient to operate

How much vacancies will be filled by open recruitment (outside candidates) and how much will go by promotion?

The organization has to decide whether it would recruit Human Resources at the lowest level and keep on promoting them as and when they grow up. For example, many good organization recruit officers only at junior levels and slowly promote them to senior levels. They do not recruit candidates at senior levels from the open market, except under exceptional circumstances

What is the minimum time gap for promotion from one cadre to another? For example a company may stipulate nobody will be eligible for promotion unless he completes 4 years in the existing grade (for example)

Zone of promotion - for one vacancy how many people will be considered. Some companies have a rule that for one vacancy only 6 candidates will be called/considered

What is the line of promotion - for each trade/category of Human Resources? For example, it should be made clear that a junior Human Resources officer may reach only Director of Human Resources position or something less than that - throughout his career

The qualification/eligibility criteria should be made clear for each post and should be strictly adhered to

Legal position on Promotion - (a) No employee can claim promotion as a matter of right. He can’t go to court claiming Promotion. (b) But he can invoke legal remedy if he has been denied promotion by violating the management’s own promotion policy.

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Probation: Whenever a person is selected from the open market, he is put on probation for a period of six months or 1 year. This is recorded in the appointment order. During this period his performance is closely observed and he is intimated and at the end of the probation period, he is issued with a letter of confirmation (if his performance is satisfactory).

Most companies have a policy of not insisting on notice period for relieving a probationer. That means, the appointment could be terminated from either side without giving any notice or reason.

There are some companies which have a policy of keeping even promoted people on probation. If performance is unsatisfactory, he is reverted to the earlier post.

TRANSFER

Michael Jucius “Transfer refers to changes in job in which pay, status and job conditions of the new job are approximately same as the old”.

Type of Transfers: (a) Production Transfers - as per requirements of the job (b) Replacement transfers - To fill in wastages like superannuation or resignation of existing incumbents (c) Versatility transfers - To give the employee greater experience and exposure by transferring him to different areas (d) Remedial transfers - Punishment transfers (e) Human Resources transfers - Based on employee’s request

How to make a good transfer scheme:

o The organization should have transfer policy applicable to various levelso The policies should be well publicized - and implemented without exceptions o Have special examination of employees’ difficulties if the transfer involves

movement out of stationo The criteria for transfer should be clearo The courts will generally not interfere with transfers as long as the conditions of

the new job are same and there is no victimization

SEPARATION

There are many different ways in which the employer-employee relationship may get terminated. These are the following ways:

Dismissal - for misconduct like theft, assault, etc. - this is done after proper enquiry

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Resignation Super annuation - also called retirement - after reaching a certain age say 58 or

60 Medical termination - Due to reasons of illness, etc. Completion of contract - If someone is taken for a contract period say 2 or 3

years, at the end of the contract period his services get separated Voluntary Retirement - Some organizations have this scheme - persons who have

completed 20 years of service and above 45 years of age for example may leave on voluntary retirement. They will be given some extra lumpsum money over and above the usual benefits which is not taxable. This is the special feature of this scheme.

Retrenchment - This is due to unforeseen circumstances - the employer suddenly finds he has more people than necessary - so he retrenches the junior most people giving them ½ month’s wages for every completed year of service.

Lay off - due to power shortage, raw material shortage, accumulation of stocks, etc., the employer has a temporary inability to provide employment to all. So he lays off some of the people

Death Discharge - The particular employee’s services are just no longer required

VOLUNTARY RETIREMENTObjectives:

- To give an employee, who is advanced in age and who has served for a long period - a chance for retiring much ahead of his retirement date with good terminal benefits.

- If the organisation wants to reduce manpower for business reasons or for weeding out inefficient employees voluntary retirement scheme (VRS) is introduced.

- It is also called “golden hand shake scheme”.

Terms and Conditions of VRS:

1. Employee should put in long service (eg. 20 yrs of service).2. He should be advanced in age (eg. 50 yrs old).3. Once in a year the employer (Human Resources Manager) will call for application under VRS.4. The application will be scrutinized by par and the final decision to accept an application rests with the management.5. The employer weeds out generally inefficient employees or surplus employees.6. Generally such vacancies are not filled up by promotion or otherwise till business improves.7. The terminal benefits payable under VRS are exempt from Income Tax to a large extent. So it is better than resignation.31

8. The scale of benefits differs from one organisation to another but generally the VRS employees get:

a. His gratuity for period already served.b. Ex-gratia payment towards VRS (for past service) - generally another amount

equivalent to gratuity.c. Payment for the period yet to be served. The general trend is one month salary

for every year of service still left.d. Other benefits applicabe.

TESTS AND INTERVIEWS

Tests and interviews are conducted on many occasions

o for selectiono for placement - to ascertain the candidate’s mind o for promotiono Exit Interview - to know why an employee is leaving an organization - if possible

persuade him to stay - or at least remove such problems for the future o Training - to ascertain and choose which employee is suitable for a particular

training programo counseling - advising an employee about his specific problems either at the time

of joining or any time during the career on important occasions like transfer, promotion, job rotation, change of station, etc.

Types of Tests: 1) Trait-measuring tests like music tests, hearing tests, etc. 2) Paper tests vs Performance tests 3) Achievement tests (what he can achieve at present) vs Aptitude tests (future potential) 4) Speed tests (a large number of questions to be answered speedily) vs Power tests (accuracy is more important in answering a limited number of questions) 5) Individual tests vs Group tests (the tests are administered to a group) 6) Personality tests - all forms of Psychological tests - like interpersonal ability measuring tests, effectiveness in communications, etc. 7) Knowledge vs Ability tests

Some advanced Psychological Tests:

1)Verbal ability tests 2) Numerical ability tests 3) Abstract reasoning tests 4) Mechanical ability tests 5) Electrical Ability tests 6) Language skills both reading/writing and speaking tests 7) Repetitive skills tests, etc.

Definition of Psychological Testing by Blum and Naylor “is measuring standardized sample of human behaviour”. Its success depends on three important factors 1) Objectivity - it should not be favourable to any group/class of individuals - the questions should not be subjective 2) Reliability - the test should measure what it aims to measure 3) Validity - the test should have been validated by scientific

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processes over many different kinds of populations and have been proved to be accurate.

Advantages of Tests

o It is a written record not a visual or oral assessment. Hence subjectivity or favouratism is bound to be less

o It is a best way of measuring candidates’ ability or suitability to do the job. It will precede all other measures of assessing suitability

o It can clearly show the distinction between 2 candidateso It acts as an effective screening device - that is, it can serve as one

obstacle to reduce and eliminate number of candidates.

Disadvantages

o One can’t see the personal impact of candidates which is possible only during interview

o Tests measure only “can-do” factors (what the candidate is capable of doing at present). Only interview can measure “will-do” factors (what he is capable of doing further - his future potential)

o The candidate can fake the tests particularly in objective tests - that is he can guess what is the aim of the test and feed his answers accordingly

Definition of Interview “Richard Kalhoon”

An interview does make three contributions 1) it is the only way to see the candidate in action, his manners and bearing 2) to see how he interacts and responds and 3) the only way to assess “will-do” factors like motivation, responsibility, perseverance - it is also the only way to elicit further information about the candidate.

Types of interviews: 1) Direct interview vs non-direct interview 2) Patterned interview vs non-patterned interview (that is the interview board plans step by step what to ask vs no such planning, there is no detailed planning, the board decides based on each previous answer of the candidate 3) stress interviews (the board puts the candidate through stressful situations to see his grit - as done in military interview) vs Supportive interview (the board tries to know and find out whatever the candidate knows with a supportive style) 4) Board interviews - a group of officers interview the candidates 5) Group interview - which means a group of candidates is assessed at a time - like group discussion 6) Selection interview 7) Promotion interview 8) Placement 9) Counseling etc.

Disadvantages:

1) Bias 2) Lack of knowledge about the subject or about the job requirements by the Board 3) How to judge a candidate in 5 or 10 minutes? 4) Differing standards and

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perceptions of interviewers 5) Projection of interviewer’s personality on to the candidate - that means the interviewer likes a candidate who behaves or thinks like the interviewer 6) Halo effect (because he talks well, the Board thinks he can do well)

How the employer should prepare for the interview?

Review background of the candidates 2) Determine objectives of the interview and inform all board members 3) Decide on uniform standards 4) Actual conduct of the interview (a) create helpful setting (b) seek personal clarifications and official queries (c) observe both knowledge and behaviour (d) decide on salary, joining time, etc. (e) make notes ads the candidate as he leaves - otherwise, we may get confused at the end of the interview after seeing all candidates

Difficulties in Testing & Interviewing

There are a few conceptual but more practical defects in tests and interviews wrong objectives/wrong tests - choice of defective standards/norms board members may not have uniform standards/ideas some organizations test for prestige sake - without knowing the relevance malpractice by professionals if a person has done the test already in another organization, it is easy for him

next time - particularly the psychological tests the competence of the tester is also a big question All tests/interviews can guarantee the candidate’s performance during

test/interview. They can’t guarantee his performance on the job Tests/interviews are more good at predicting failure than success. That is, they

can easily locate a unsuitable candidate. Out of the suitable candidates who should be selected - can’t be effectively found out by tests/interviews

How to make tests/interviews successful?

Remember they are only screening devices (see point (i) above) Use them as supplementary tools - combine them with other factors They measure only sample behaviour - keep looking for new clues all the

time Take a test which is suitable for the job It should be reliable and should have been validated Decide on standards/scoring The requirements as indicated in the advertisement or press notification

should be kept in view Compare test results vs interview results. If there is vast difference between

them, then there is something wrong Take balanced/experienced executives on the board Choose correct professionals Take points from para IX and X

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Analyze the results of past tests/interviews. Did they yield good candidates? Are they continuing with us? Is their performance satisfactory? Should we change the tests/interview methods now?

Certain common measuring and techniques and processes:-

After the selection is over find out whether you got the required no. of people. Over a period of years if the organization has not got the required no. of people consistently, the audit should focus on further analysis like mistakes in specification/notification, unsatisfactory salary, terms and conditions not clear etc., If the organization has not got the right quality - further analyze the job specification, the quality of testing and interviewing etc., another area of audit is the time lag between notification and actual position of the candidates. The time lag should be a few weeks. Otherwise, the organization should analyze the causes and take action. There are many areas in which each organization must develop its own standards and measures the effectiveness of their manpower planning.

ACCIDENTS AND SAFETY

Accident (as per Factories Act)

As per ID Act “Any occurrence which causes bodily injury to a person making him unfit to resume duty within 48 hours”. But managerially, accidents have much larger meaning. “Any untoward incident which causes impairment (reduction of capacity) to (a) the person (b) the materials (c) the machinery or (d) to the process.

Three golden rules regarding accidents:

1) Accidents just do not happen. They are caused by your mistake, others mistakes or system mistakes.

2) All accidents are preventable. In fact it is possible to complete a full normal life without encountering even a single accident.

3) Accidents get caused when you expect them least.

Causes of accidents: ( Also classify as human factors, factors at work etc.,)

1) Monotony and repetitive work2) Fatigue and physical exhaustion3) Faulty layout4) Faulty design of machines5) Defective systems and processes6) Lack of training7) Lack of precautions in handling dangerous substances8) Accident prone situations (like high tension wire openly passing through factory

roof)35

9) Accident prone workman10) Absence of safety systems11) Failure of safety systems

Costs of Accidents:

1) Loss of man-days, machines and materials2) Injury to employee and compensation for the same3) Financial losses like repairing the machine – compensation under the act, etc.4) We continue to keep the workmen who have become less capable due to accident5) Breakdown in mutual trust between employer – employee – disturbed IR – probably

the greatest cost6) Bad publicity and image loss7) Unwillingness to take up risky jobs in future8) Cost of production lost on that date9) Disturbance in production sequence – production hold up.10) Consequential losses like market loss, customer loss and loss of face with

competitors.

How to reduce accidents?

Investigate each accident and find out the cause. Fix responsibility and prevent repetition

After each accident, explore the systems and correct them Promote safety awareness, safety consciousness and safe habits Build up a safety department Constant training Preventive maintenance – particularly on holidays. During working days, the

workmen will not offer the machine for maintenance Observe safety day or week (3rd November – Bhopal Gas Tragedy) Institute awards and such other financial and non-financial incentives for safe

workmen, safe habits, etc. Identify hazardous materials and pay special attention Reduce monotony and introduce job variety wherever possible Display do’s and don’ts near all the machines and such other points Standardize material handling systems, machines, materials, work practices, etc.

Role of Law:

Factories ActSafety officer (1 for every 1000)Under ESI Act and workmen compensation available for disablement the employer cannot say that the workman did not follow safety precautions. The total responsibility is on the employer (he should have disallowed work to such a workman).

MORALE

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It is the concept that describes the level of favourable and unfavourable attitudes of the Human Resources in a group, collectively towards all aspects of their work and organization.

Blum and Naylor: “The set of attitudes that the members of the group hold about a group and the overall organization objectives”. In simple words, it is the bond that the members of a group have towards each other and towards the organization.

Morale Indices:

1) Production and productivity2) Quality aspects and the extent of rejections and reworks3) Waste extent4) Slippages in delivery schedules5) General level of discipline6) Absenteeism7) No. of grievances, suggestions8) Court cases by management on workmen and by workmen on management9) Work stoppages and reasons for them10) General level of industrial relations11) Attributes of the union – single union, non political etc.12) Labour and managers turnover13) How the employees speak about the company in public places14) Public image

Some measuring techniques:

Study all the above records Analyze counseling reports Study exit interview reports Study the performance appraisal reports Study the reports given during training sessions Attitude surveys by experts and Industrial Espionage (spying)

How to improve morale? - refer O.B. Notes on how to improve motivation.

Non-monetary Incentives:

Any organization should have a proper blend of financial and non-financial motivators. Non-financial motivators have the effect of achieving great attachment and loyalty from the employees towards the organization.

Partially non-financial motivations:

Promotions Good training opportunities Sponsorships to clubs and premier bodies37

Opportunities for attending important conferences, functions, etc. Sponsoring tickets for important eventsFully non-financial:

Oral praise Letters of appreciation – a copy of which would be kept in the personal file Awards like suggestion, safety awards, performance related awards Recognition for achievements of the employee not related to the organization like

stamp collection, homeopathy, public service Citations in the in house journals Recognition during public functions of the organization Giving gifts which are useful to the house Permission for family members to visit the premises Mentioning in public the achievements of the children of employees Bravery awards for outstanding acts of bravery Job rotations and transfers to preferred departments

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