Full HRM Notes by Ramchadran Sir

7/29/2019 Full HRM Notes by Ramchadran Sir

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Module 1.

Introduction

It is not very easy to define precisely Management, but it is essential toknow what Management means before we study Human ResourceManagement.

Management has been defined by Mary Parker Follett as, "the art ofgetting things done through people." But Management is much more than whatis said in this definition. It is further defined as ...... That field of humanbehaviour in which Managers plan, organise, staff, direct and control human,physical and financial resources in an organised effort, in order to achievedesired individual and group objectives with optimum efficiency andeffectiveness." [Quoted in Chandan J.S., Fundamentals of Modern

Management]

It is therefore clear that management is charged with the responsibility ofachieving planned individual and group goals by a balanced utilisation ofphysical and financial resources through the efforts of human resources.Human resource, therefore, becomes a crucial subsystem in the process ofManagement. But most of us are not clear what exactly Human Resourcemeans.

According to Leon C. Megginson, Human Resources means "the totalknowledge, skills, creative abilities, talents and aptitudes of an organisation's

workforce, as well as the value, attitudes and beliefs of the individualsinvolved." Therefore, Management can procure and use the skill, knowledgeand ability, through the development of skills, using them again and again.Therefore, it is a long term perspective whereas personnel is a short termperspective.

Personnel Vs Human Resources at Various levels

Human Resources denotes the total sum of all the components - skills,creative ability etc. - with all the people (employed, self-employed, unemployed,

employers, owners etc.) whereas personnel is limited to employees oforganisations only.

Human Resources, even at the organisation level, includes all resourcesof all the people who contribute their services to the achievement oforganisational goals and also others who contribute their services to createhurdles in the achievement of the said goals.

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PERSONNEL VS HUMAN RESOURCES MANAGEMENT

Personnel Management Human ResourcesManagement

1. Personnel means persons

employed. Personnelmanagement is themanagement of people, skillsemployed.

1. Human Resources

management is themanagement of employeesknowledge, abilities, talents,aptitudes, creative abilities etc.

2. Employee in personnelmanagement is mostly treatedas an economic man as hisservices are exchanged forwage / salary.

2. Employee in humanresource management istreated not only aseconomic man but also associal and psychological man.Thus, the complete man isviewed under this approach.

3. Employee is viewed as acommodity or tool or equipment which can bepurchased.

3. Employee is treated as aresource.

4. Employees are treated ascost centres and thereforemanagement controls the costof labour.

4. Employees are treated asprofit centres and therefore,invests capital for humanresource development andfuture utility.

5. Employees are used mostlyfor the organisational benefit.

5. Employees are used for themultiple benefits of the

organisation, employees andtheir family members.

6. Personnel function istreated as only an Auxiliaryfunction.

6. Human resourcesmanagement is a StrategicManagement function.

[P. V. Subba Rao Essentials of Human Resources Management and IndustrialRelations]

Figure .1.

Meaning and Significance of Human Resources Management

Human resources means different things to different people. They are:Labour Management, Labour Administration, Labour Management Relations,Employee-Employer relations, Industrial relations, Personnel Administration,Personnel management, Human capital management, Human assetmanagement, Human resources management etc.

Human Resources Management means employing people, developingtheir resources, utilising, maintaining and compensating their services inconsonance with the job and organisational requirements.

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Personnel management as defined by the Indian Institute of PersonnelManagement Personnel management is a responsibility of all those whomanage people as well as being a description of the work of those who areemployed as specialists. It is that part of management which is concerned withpeople at work and with their relationships within an enterprise. It applies not

only to industry and commerce but to all fields of employment.

Human resources has a very definite role in the development of modemeconomics. Arthur Lewis says there are great differences in developmentbetween countries which seem to have roughly equal resources, so it isnecessary to enquire into the difference in human behaviour. Hence alldevelopment comes from committed manpower. Abundance of resources hasno meaning unless we make proper use of them.

Myrdal Gunnar, [Asian Drama, Penguin Books Ltd.] says that lack oforganisation of human resources is largely responsible for the backwardness of

the nation. Countries are under developed because their people are underdeveloped. In essence, the difference in the level of economic development ofthe country is largely a reflection of the differences in quality of their humanresources Hence what determines a countrys economic development arethe values, attitudes, general orientation and quality of its people.

Also, the shifts from manufacturing to services and technologicalupgradations make the human resources the vital element to the nationsgrowth and progress. And in any service industry like banks, railways etc., thequality and the methods of utilisation of human resources become significant.

Peter F. Drucker rightly pointed out the significance of personnel as;managers are fond of repeating the truism, that the only real difference betweenone organisation and the other is the performance of people. HumanResources system in any organisation is an unique subsystem operating uponand controlling all other subsystems.

MATERIALSUBSYSTEM

FINANCIAL HUMAN RESOURCES MARKETINGSUBSYSTEM SUBSYSTEM SUBSYSTEM

TECHNOLOGYSUBSYSTEM

[Organisation System]

Figure .2.

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Functions of Human Resources Management:.

There are two broad functions of H R M. They are

1. Managerial Functions 2. Operational Functions

Managerial Functions:Managerial functions of Personnel management include planning,

organising, directing, co-ordinating and controlling.

Planning:It is the charting out of programmes and changes in advance in theachievement of organisational goals. Hence, it involves planning of humanresources requirements, recruitment, selection, training etc. It also involvesforecasting of personnel needs, changing values, attitudes and behaviour of

their employees and their impact on the organisation.

Organising:In the words of J.C. Massie, an organisation is a "structure and process bywhich co-operative groups of human beings allocated its tasks among itsmembers, identifies relationships and integrates its activities towards a commonobjective." Given the complex relationships that exist between specialiseddepartments and the general departments, many top managers seek the adviceof personnel manager. In this manner, the organisation establishesrelationships among the employees so that they can together contribute to theachievement of organisational goals.

Directing:After planning and organising comes the execution of the plan. The willing andeffective co-operation of employees towards the achievement of organisation'sgoal has to be brought about by proper direction. Identifying and utilisingmaximum potentials of people is possible through motivation and command.Direction, therefore, is an important managerial function in ensuring optimumemployee contribution.

Co-ordinating:It is the task of matrixing various employees efforts to ensure successful goal

achievement. The Personnel manager co-ordinates various managers atdifferent levels as far as the personnel functions are concerned.

Controlling:

After planning, organising, directing and co-ordinating, the various activities,the performance is to be verified in order to know, at various points of time,whether the activities are performed as per plans and directions. It involveschecking, verifying and comparing actual with the plans, identification ofdeviations if any and correcting the deviations. Auditing training programmes,analysing labour turnover, overseeing morale surveys, conducting exitinterviews are some of the controlling functions of personnel management.

Operative Functions:

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The operative functions of H R M relate to employment, development,compensation and relations. All these are interacted by managerial functions.Also, they are to be performed in conjunction with management functions.

Human Resources PlanningRecruitmentEMPLOYMENT Selection

InductionPlacement

Performance AppraisalTraining

HUMAN RESOURCE Management DevelopmentDEVELOPMENT Career Planning & Development

Organisation Change &Organisation Development

Job EvaluationCOMPENSATION Wage & Salary AdministrationMANAGEMENT Fringe Benefits

MotivationMorale

HUMAN RELATIONS Job SatisfactionCommunicationGrievance & Disciplinary ProceduresQuality of Work Life & Quality Circles

ORGANISATIONAL DESIGN ---- JOB DESIGN ---- JOB ANALYSIS

Functions of H R M

Figure .3.

Employment:Employment function is securing and employing the people having requiredlevel of human resources essential for achieving the organisational objectives.It involves job analysis, human resources planning, recruitment, selection,placement, induction and handling internal mobility.

Job Analysis:

It is the study and collection of data relating to the operations andresponsibilities of a specific job. It includes:

a. Collection of data and information and facts relating to the variousaspects of jobs including men, machines and materials.

b. Drawing up of job description, job specification, job requirements andemployee specification with which nature, levels and quantum humanresources can be finalised.

c. Providing the guidelines, plans and the basis for job design and for

all operative functions of H R M.Human Resources Planning:

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This is the process which assures the organisation that it will have adequatenumber of qualified persons, at requisite times, performing in a way to satisfythe needs of the organisation and also provide satisfaction to the individualemployee, so employed.The process involves:

a. Estimating the present and future requirements of humanresources based on objectives and long range plans of theorganisation.

b. Calculation of net human resource requirements based on thepresent availability of human resources.

c. Taking suitable steps to identify, mould, change and develop thestrength of existing employees so as to meet the futurerequirements.

d. Preparation of action plans to acquire the balance humanresources from outside the organisation and to develop theexisting employees.

Recruitment:It is the process of searching for future employees (requirement) and ensuringthey apply for jobs in the organisation.It involves:

a. Identification of existing sources of candidates and developingthem.

b. Seeking out and identifying new sources of applicants.c. Motivating the right type of candidates to apply for jobs in the

organisation.d. Ensuring a healthy balance between internal and external

sources

Selection:It is the process of ascertaining the qualifications, experience, skill, knowledgeetc. of an applicant to ascertain his / her suitability for the job applied for.

This includes:a. Developing application blanks.b. Creating and developing valid and reliable testing techniques.c. Formulating interviewing techniques.

d. Checking of references.e. Setting up for medical examination policy and procedure.f. Line Managers to be involved in the decision making.g. Sending letters of appointment.h. Employing the selected candidates, when he reports for duty

Placement:It is the process of allotting to the selected candidate the most suitable job, asper the job requirements and employee specifications.This function includes:

a. Counselling the concerned managers regarding the placement

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b. Overseeing the follow-up studies, employee performanceappraisal to monitor employee adjustment to the job, in thecoming days.

c. Correcting wrong / misjudged placements, if any.

Induction and Orientation:These are procedures by which a new employee is rehabilitated in the newsurroundings and introduced to the practices, procedures, policies, people etc.of the organisation.It includes:

a. Familiarising the employee with company philosophy, objectives,policies, career planning and development, company product,market share, history, culture, etc.

b. Introduce the new employee to the people - his colleagues,supervisors and subordinates.

c. Mould the employee by orientation methods to the new working

conditions.

Human Resources Development:This process involves improving, moulding, and developing the skills,knowledge, creativity, attitude, aptitude, values, commitment etc. based on thepresent and future job and company requirements.

Performance Appraisal:It is the continuous and systematic evaluation of individual employees withrespect to their performance and their potential for future development. Itincludes:

a. Enunciating policies, procedures and techniques.b. Assisting functional managers.c. Reviewing and summarising reports.d. Evaluating the effectiveness of various programmes.

Training:It is the process of transmitting the employees the technical and operating skillsand knowledge. It includes:

a. Identification of training needs of the individuals and for theorganisation.

b. Developing appropriate training programmes.

c. Assisting and advising the management in the conduct of trainingprogrammes.

d. Transmitting requisite job skills and job knowledge to theemployees.

e. Assess the effectiveness of training programmes.

Management Development:It is the process of designing and conducting appropriate executivedevelopment programmes so as to develop the managerial and humanrelations of skills of the employees.It includes:

a. Identification of the areas in which management development isneeded.

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b. Conducting development programmes.c. Motivating executives / managers.d. Designing special development programmes / assessment

procedures for promotions.e. Utilising the services of specialists - both internal and external for

development and / or Institutional (external) developmentprogrammes.

f. Evaluating the effectiveness of executive developmentprogrammes.

Career Planning and Development:It is the planning of one's career and implementation of career plans by meansof education, training, job search and acquiring of work experience.It includes:

a. Internal mobility - vertical and horizontal transfers, promotion anddemotion.

b. Transfer - process of placing employees in the same level jobswhere they can be utilised more effectively as per the needs ofthe organisation. This also means - developing transfer policies,offering assistance and guidance to employees under transferorders and evaluating transfer policy periodically.

c. Promotion - it deals with the upward assignment of employees tooccupy higher positions (with better status and pay) inconsonance with resources of employees and job requirement.The Department must ensure that:i. equitable, fair and consistent promotions are formulated and

administered.

ii. managers and employees are given assistance and guidanceon the subject of promotion.iii. execution of promotional policies are as per policies and

procedures.d. Demotion - is the downward assignment of, an employee in an

organisation. The Department must ensure that:i. equitable, fair and consistent demotion policies are drawn up.ii. assisting and advising employees regarding demotions.

iii. ensure fair implementation of demotion policies andprocedures.

Organisation Development:The planned process drawn up to improve organisational effectiveness throughchanges in individual and group behaviour, culture and systems of theorganisation - drawing models from applied behavioural science.

Compensation Management:The process of providing equitable, fair and adequate remuneration to theemployees. This per se involves - Job evaluation, wage and salaryadministration, incentives, bonus, fringe benefits, social security measures andso on.

a. Job Evaluation - the process of determining the relative worth of jobs:

i. Select suitable job evaluation techniques.ii. Classify jobs in to various categories.

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iii. Determining relative worth of jobs in various categories.b. Wage and Salary Administration - developing and operating an

appropriate wage and salary programme. It will necessitate:i. Initiate a wage and salary survey.ii. Determining wage / salary rates based on various

factors.iii. Proper administration of Wage and Salary Programmes.iv. The periodical evaluation of its effectiveness.

c. Incentives - formulation administration and reviewing the schemes ofpayment of financial incentives in addition to regular wages and

i. Formulation of incentive schemes.ii. Assisting managers on its operation.iii. Periodical review to evaluate effectiveness and

relevance.d. Bonus - payment of statutory bonus according to the Payment of

Bonus Act, 1965, and its latest amendments.

e. Fringe Benefits - various benefits at the peripheral area of the wage.Organisation provides these primarily to motivate the employees andto meet their contingencies. Benefits include:

i. Disablement benefit.ii. Housing facilities.iii. Educational facilities to employees children.iv. Canteen facilities.v. Conveyance facilities.vi. Credit facilities.vii. Legal assistance.viii. Medical, maternity and welfare facilities.

ix. Company stores.

f. Social security measures -These measures are in addition to fringebenefits, which include :

i. Workmen's compensation to those workers (or theirdependants) who are involved in accidents.

ii. Disablement benefits and allowance.iii. Dependent benefits.iv. Retirement benefits like Provident Fund, Pension,

Gratuity etc.

Human Relations:Administering various human resources policies like employment developmentand compensation and interactions among the employees on one hand andemployees and the, management on the other, create a sense of workingrelationship between workers and management and trade unions.

Basically they are all interactions between human beings. Humanrelations, is therefore, is an important area in management which integratespeople into work situations in a way that motivates people to work together witheconomic, psychological and social satisfaction thereby increasing theirproductivity. Hence Human Resources Management functions will centrearound:

a. Understanding perception, personality, learning, intra and inter personalrelations, inter and intra group relations.

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b. Motivating all employees.c. Promoting employee morale.d. Developing communication skills.e. Developing leadership skills.f. Redressing satisfactorily through a well defined grievance procedure.

g. Handling disciplinary cases by established disciplinary procedures andin all fairness.

h. Providing adequate counselling to solve employees' personal, work andfamily problems, thereby releasing their stress and strain.

Objectives of Human Resource Management

Objectives of Personnel Management are determined by organisationalobjectives and individual and social goals. Institutions are established toachieve certain specific objectives. The objectives of commercial institutionsare mostly to earn profits and of educational institutions are mostly to impart

education and conduct research etc. But the fundamental objective of anyinstitution is survival. However, institutions are not satisfied with this goal. Theydefinitely have a further goal of growth and profits.

Institutions acquire and manage resources including human resource toachieve their objectives. The prime tool employed and utilised for this purposeis human resource. Hence the main objectives of Human ResourcesManagement are drawn from the organisational objectives. The other objectivesof HRM are to take care of the needs, aspirations, dignity of individualemployees and at the same time keeping in mind the socio-economic problemsof the community and the country.

The objectives of HRM may therefore be something as below:1. Create and utilise capable and motivated workforce, to achieve the basic

organisational goals.2. To establish and maintain proper and sound organisational structure and

healthy working relationships among all its employees.3. To ensure the integration of individual group's goals with those of the

organisation.4. To create facilities for individuals and groups to develop so as to be in

tune with the growth of the organisation.5. Proper and optimum utilisation of human resources.

6. Ensuring adequate and equitable wages, incentives and other benefitsso that satisfied individuals and groups are motivated to take onchallenges.

7. Maintain high employee morale.8. Continuously upgrading the skill and knowledge levels of employees, by

training and development programmes.9. Ensure opportunity for participation in management to the extent

possible.10.Provide acceptable and effective leadership.

The above objectives will remain pious and perhaps lofty ideals unless

sufficient preparations and precautions are not undertaken at various stages.

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The prerequisites for achieving the above objectives are:1. Recruitment of right persons with requisite skills, knowledge and

competence.2. Every employee should be informed of the objectives of the

organisation and their individual goals and be explained how

achievement of their individual goals contribute to the achievement oforganisational goals and objectives.

3. Maintenance of sound human and industrial relations.4. Formulation and circulation of sound organisational policies defining

authority, responsibility and accountability in unambiguous terms.

Evolution and Development of Human Resources Management

Human Resources Management involves all management decisions andpractices that directly affect or influence people or human resources, who workfor the organisation. In recent years, increased attention has been devoted to

how organisations manage human resources. This increased attention comesfrom the realisation that an organisation's employees enable an organisation toachieve its goals, and the management of these human resources is critical tothe success of the organisation.

The term "world class" or ranking among the foremost in the world, isused frequently as the aspirations of organisations. In the context of HRM,world class is indicated by an HR group with a shared vision as to itsconstituents and how best to serve them. Excellence in HRM is characterisedby a service orientation and a willingness to be in partnership with constituents.Specific earmarks of world class HRM include:

having an HR vision oriented to strategic needs of the organisation. having a philosophy and values consistent with those of the

organisations. being seen as a business unit within the firm and operating the same

way as other units - having customers and quality management etc. being organised in a way that brings maximum service to the customer

and maximum motivation to the HR staff. having the best HR products available for the customers. championing HR programmes that fulfil the agenda of HR group and the

customer.

having an HR vision that is actively shared by the entire group. being a proactive and not a reactive group. being involved in key business issue discussions. being seen as successfully treating a great place to work.

The number of activities involved in HRM is potentially large, dependingon the size of the organisation and its needs.

The utilisation of people, in a rudimentary form, can be traced to ancienttimes. Efforts to use talents, even though informal in nature, were undertakenwhenever people came together in a community. The change has been that

during the course of the past century efforts to best manage humus resourceshave become more formal and specialised.

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The history of HRM can be characterised as moving through our broadphases: the craft system scientific management

the human relations approach the current organisational science - human-resource approach.

The Craft System:From the earliest times in Egypt and Babylon, training in craft skills wasorganised to maintain an adequate supply of craft workers. By 13"' century crafttraining became popular in Western Europe. Craft guilds supervised quality andmethods of production and regulated conditions of employment for eachoccupation. The craft guilds were controlled by master crafts worker, and therecruit entered after a period of training as an apprentice. The crafts systemwas best suited to domestic industry, the master operated in his own premises

with his assistants residing and working in the same house.

Scientific Management:

The Industrial Revolution and mass production emerged in the nineteenth andearly twentieth centuries and led to the deterioration of the craft guilds. Thedevelopment of mass production transformed the organisation of work in twoimportant ways.

First, tasks were subdivided in to very simple parts which could he performedby unskilled workers.

Second, manufacturing grew to such an extent that a large hierarchy of

supervisors and managers became necessary. Along with mass productioncame the assembly line and a scientific approach to an analysis of work interms of its constituent parts.

The basis ofscientific management is that there is one best way to do a job.The best way will be the most efficient and therefore the fastest and leastexpensive. The founder of this new field of scientific management was anAmerican mechanical engineer, Frederick W. Taylor (1856 - 1915). Two ofTaylor's contemporaries, Frank Gilbreth (1868 - 1924) and his wife LillianMoeller Gilbreth (1878 - 1972), joined in becoming the proponents of scientificmanagement or industrial engineering. 1

1 _ Edwin A. Locke, The Ideas of Frederick W. Taylor: An Evaluation.Academy of Management Review, January 1982, pp.14 - 24.

In the decade after 1910, the principles of scientific management were appliedon a wholesale basis in the United States. Taylor and his disciples assumedthat workers wanted to be used efficiently and were motivated by money. Thisphilosophy proved to be incorrect because it ignored the feelings and actualmotivations. Workers were left dissatisfied with their work.

Union opposition grew as union leaders condemned Taylorism for depriving

workers of a voice in the conditions and functions of their work.

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One result was the emergence of welfare secretaries as organisationalemployees to oversee programmes for the welfare of employees.

This programme included recreational facilities, employee assistanceprogrammes and medical programmes. The welfare secretary position was the

beginning of the professional personnel (now human resource) function.

Human Relations:The first important discovery in the social context of mass production resultedfrom the famous experiments undertaken by U.S. social scientists Elton Mayo(1840 - 1949) and Fritz Roethlisberger (1898 - 1974) between 1924 and 1932at Western Electric's Hawthorne plant in Chicago. Mayo and his colleaguessought to study the effects that changes in illumination would have onproductivity. The investigators chose two groups of employees working undersimilar conditions. The level of illumination was varied for the test group butkept constant for the control group. To Mayo's surprise, the output of both

groups rose. Even when the researchers told the workers in one group that thelight was going to be changed but then did not change it, the workersexpressed satisfaction and productivity continued to increase. Mayo saw thatthe significant variable was not physical but psychological.

The reason for the increase in productivity was the workers' attitude towardstheir jobs and Western Electric. Because their co-operation had beenrequested, the workers now felt themselves part of an important group whosehelp and advice were being sought by the company.2

The discovery of the Hawthorne effect led to further research on the socialfactors associated with work. Results of these studies led to the human

relations movement with its emphasis on the fact that employees need to beunderstood in order to be satisfied and productive. However, the idea that goodhuman relations in and of

2 - Fritz J. Roethlisberger and William J. Dickenson, Management and theWorker (Cambridge, Mass.): Havard University Press, 1939.

themselves will increase productively failed to be consistently supported, andmany of the movement's idea were abandoned.

Organisational Science:Following the realisation of the limitations of the human relations approach,academic researchers from various disciplines, such as psychology, politicalscience, economics and sociology, began studying organisations. Theorganisational science approach focuses more on the total organisation andless on the individual. HRM, as we currently know, grew out of organisationalscience trend and combined learning from the previous movements with currentresearch in the behavioural science.

QUESTIONS FOR DISCUSSION

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1. Describe, in brief, the nature and scope for personnel function in anorganisation. What are the indicators of its working in an organisation?

2. Differentiate the functions of personnel management and human resourcesmanagement.

3. Identify and discuss, in detail, the managerial and operative functions ofpersonnel management.

4. Personnel management is a basic management pertaining to all levels andtypes of management. Discuss.

5. The objective of personnel management in an organisation is to obtainmaximum individual development, desirable working relationship betweenemployers and employees and effective utilisation of human resources.Elucidate.

6. Visit a(1) a manufacturing organisation(2) a service organisation- like a bank or a hospital(3) a small scale enterprise

7. Examine how personnel activities are carried out. Suggest at least three areaswhere the personnel activities can be improved.

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Module 2.

Integrated Strategic Planning & Human Resource Planning:

An organisation would not build a new plant, inaugurate it and thenbegin to worry about how to staff the facility. A firm cannot hire several hundredengineers and get them join the organisation overnight. Nor can managementtalent can be developed in just a few weeks. Foresight is necessary to ensurethat appropriate number of people will be available for an organisation's futureplans. Also in a declining economy, planning ahead is critical to prevent overstaffing and the subsequent layoffs and retrenchments. Human ResourcePlanning is concerned with the flow of people into, through and out of anorganisation. HR planning involves forecasting the need for labour and thesupply of labour, then planning the programmes necessary to ensure that theorganisation will have the right mix of employees and skills when and where

they are needed.

Strategic Human Resource Planning:

The above description of HR planning takes the organisational plans andgoals as given, and then commences the planning processes needed forcarrying out those plans. In most organisations, HR planning (if it is undertakenat all) follows this traditional approach and still is called manpower planning.However, more recent concepts of strategic human resource planningemphasise a proactive role for HR function in formulating strategicorganisational plans, as well as providing integrated programmes to ensure

effective implementation of those plans.3

Many organisations that take on some human resource forecasting donot have a system for strategic human resource planning. There is someevidence that a firm's environment may affect the degree to which HR planningactivities are integrated with strategic planning. Organisations that exists inunstable environments, face stiff competition, and have experienced staffingdifficulties are more likely to involve HR planners in corporate strategicplanning process. Involvement also seems to be greater when the top HRperson reports directly to the CEO, has past line experience to providecredibility and a broad view of the business, and is backed up by an excellent

human resource information system (HRIS) that produces the type ofinformation needed in the strategic planning process.4

3 - Randall S. Schuler and James W. Walker, "Human ResourcesStrategy: Focusing on Issues and Actions."4 - David Ulrick, Strategic and Human Resource planning: Linking Customersand Employees," Human Resource Planning, 1992, Vol. 15, No. 2, pp. 47-62.

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Integration:

Strategic integration of HR requires:1. that a strategic planning process occurs in the organisation.2. that HR managers play an important role in that process.

The strategic planning process should establish, with significant HRinput, an identifiable strategic direction for the organisation, along withappropriate goals and objectives. In addition, this planning process shouldidentify a set of organisational cultural principles and values that enhance andcontribute to the achievement of strategic goals and objectives. Integrationdoes not mean that HR managers are allowed to provide HR-relatedinformation to those making strategic decisions.

To achieve full integration, HR managers must have both processcontrol - that is the ability to influence the development and selection ofinformation used in making a decision - as well as decision control, which is

the ability to make or strongly influence the decision itself. 5

When AT&T Global Business Communications Systems (GBCS) beganits transformation from traditional to strategic HR, this process was part of anoverall realignment of the organisation's business strategy.6 A period ofdeclining sales and low employee morale had required a major rethinking ofthe organisation's direction. In 1991, Jerre Stead became president and wentabout developing a new set of strategic business principles for theorganisation. The principles that resulted from this process were:

Make people a key priority. Win customers for life. Use total quality management approach to run the business. Profitably grow by being the leader in customer-led applications oftechnology. Rapidly and profitably globalise the business. Be the best value supplier.

These principles provided overall directions for the business andfocused the nature of daily operations. Once these general strategic principleshad been established, the development of a more strategic and integrated HRfunction became possible.

The process of integrating HR in to the strategic decision making

process can occur through a variety of actions.

5 - J. Thibault and L. Walker, Procedural Justice: A psychological Analysis and"A Theory of Procedure,"California Law review, Vol. 66, 1978, pp 541 - 566.6 - Information about AT&T's Global Business Communications Systemsobtained from an article by Pelvel, et al., "AT&T Global BusinessCommunications."

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For example, Australian Global Insurance (AGI) began the process ofHR integration by changing hierarchical position of some of the senior HRmanager so that it was equivalent to that of a Chief General Manager. Thisautomatically made the top HR person a member of the senior executivecommittee of AGI. Once in this committee, the top HR person was in a position

to make sure that HR issues were incorporated in to the strategic decision-making process.7

Human Resource Planning at different levels:

Different organisations make Human Resources Planning at differentlevels to suit their own purposes, of which, national, industry, unit departmental,job and aggregate level are important.

a. National level: Usually Government plans for human resourcesrequirement at the national level i.e. it forecasts the requirement andsupply of human resources for the entire nation.

b. Industry level: Man power requirements of a particular industry like steel,textiles, cement are forecast taking in to account the output / operationallevel of that particular industry.

c. Unit level: This will cover the estimated requirement of human resourceof an organisation or a firm based on its corporate business plans.

d. Departmental level: This will address itself to the requirement of aparticular department in a firm.

e. Job level or aggregate level: In designing a human resources planningsystem, there are several choices regarding whom to plan for. Onechoice is to plan for the aggregate level, for jobs or job families. Thistype of planning is typically used for jobs with multiple incumbents andfor jobs at or below the middle management level. An organisationmay forecast that 35 electrical engineers will be needed at Mumbaidevelopment laboratory or that a total of 540 unskilled assemblers will beneeded in the whole organisation. The focus on the number of personsneeded for a particular job, not on specific individuals who will fill thevacancies.

Many large organisations plan for each job, but this may not always benecessary. The alternative is to plan for only those jobs that logic orexperiences indicate are problematic. For instance, a large manufacturer mayneed to plan carefully for scientists and engineers if there is a chronic shortageof these professionals. But the manufacturer may find that it does not need toengage in long-range planning for messengers or assembly personnel if theycan be hired and trained quickly when demand increases.

7 - Peter Howes and Pat Fley, "Strategic Human Resource Management: AnAustralian Case study," Human Resource Planning, 1993 Vol. 16, No.3, p. 64.

In addition to aggregate planning - or instead of it - many organisationsplan at the individual level. For important jobs, particularly upper -management positions, these organisations identify specific employees whoare likely successors when a position becomes vacant due to promotion orretirement. A succession plan for a top managerial position might identify oneto three possible replacements and specify the additional training each needs

to become fully qualified for that position at sonic point in the future.

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Process, Control and Review mechanism of Human Resource Planning

Process of Human Resource Planning:

The process of Human Planning essentially consists of the following steps: Analysing Organisational plans.

Demand Forecasting. Supply Forecasting. Estimating the net human resource requirements. If the net is surplus, plan for redeployment, retrenchment and lay-off. If the net is deficit. Estimating the future supply of human resourcesfrom various sources. Planning for recruitment, development and internal mobility if futuresupply is more than or equal to net human resource requirement. Planning for modification or alteration of the organisational plan iffuture supply will be inadequate to meet the future net requirements.

The above steps are depicted in figure below. The same order may notnecessarily be followed in the actual planning processes the steps areinterdependent many times. In some cases any two steps may also beprocessed simultaneously. In some other cases some steps may not beneeded.

Human Resources Planning Model

Analysing Organisational Adjust or Modify the Organisational Plans

Objectives Plans and

Programmes Control and

Present Review

Programmes Mechanisms

Demand Forecast Supply Forecast Net Human Forecast

Resource Requirements Present Inventory Resources the future

Skillwise, of Human Resources(+) Requirements supply of

Knowledge wise etc. Additions (-) Losses for future skill Human

Skillwise Knowledge, Resources

Values etc.. in all

sources if

supply is

inadequate

Surplus of Future Available Shortage of Future

Human Resources within Available Human

the Organisation Resources within the

Organisation

Redeployment Retrenchment / Employment TrainingDeployment Internal

Redundancy Mobility

[P.V. Subba Rao: Essentials of Human Resources Management & Industrial

Relations.]

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The process has gained importance in India with the increase in the size ofbusiness enterprises, complex production technology and the adoption ofprofessional management techniques.

It may be rightly regarded as a multi-step process, including various issuessuch as: Deciding goals or objectives. Estimating future organisational structure and manpower

requirements. Auditing human resources Planning job requirements and job descriptions and Developing human resource plan.

Objectives of Human Resources Planning:

Human resources planning fulfils individual, organisational and national goals,but the ultimate mission or purpose is to relate future human resources tofuture enterprise needs so as to maximise the future return on investment inhuman resources.

In effect, the main purpose is one of matching or fitting employee abilities toenterprise requirements

For example, the short term objective may be to hire 25 persons fromScheduled Tribes or Backward Class for purposes of training. The long rangeobjective may be to start a new industry, to expand the market, to produce a

new product, to develop its own sales force rather than depend on distributors,or to have minority group members eventually in position of middle and uppermanagement cadres.

Estimating the Future Organisational Structure of Forecasting the ManpowerRequirements:

The management must estimate the structure of the organisation at a givenpoint of time. For this estimate, the number and type of employees neededhave to be determined. Many environmental factors affect this determination.They include business forecasts, expansion and growth, design and structural

changes, management philosophy, govt .policy, product and human skills mix,and competition.

Forecasting provides the basic premises on which the manpower planning isbuilt. Forecasting is necessary for various reasons, such as:

a. The eventualities and contingencies of general economic businesscycles (such as inflation, wages, prices, costs, and raw materialsupplies) have an influence on the short-range and long-run plans of allorganisations.

b. An expansion following enlargement and growth in business involves theuse of additional machinery and personnel and a reallocation of

facilities, all of which call for advance planning of human resources.c. Changes in management philosophies and leadership styles.

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d. The use of mechanical technology (such as the introduction of automaticcontrols, or mechanisation of materials handling functions) necessitateschanges in skills of workers as well as a change in the number ofemployees needed.

e. Very often, changes in the quantity or quality of products or services

require a change in the Organisation structure. Plans have to be madefor this as well.

After estimating what the future organisation structure should be, the next stepis to draw up the requirements of human resources, both for the existingdepartments and for new vacancies. For this purpose, a forecast of labour forceis needed, and requisitions should be obtained from different departments i.e.forecast has to be made in returns of functional category. The membersneeded, and the levels at which they are required.

Vacancies, occurring in any department, should be notified in writing by

different department heads to the personnel dept., stating clearly the number ofvacancies to be filled, job or category-wise types of personnel needed, theirtechnical qualifications and experience, and the reasons for requisition (i.e.whether for replacement or addition), a statement of duties, types of jobs, payscales, age, and previous experience required should also be made.)Requisitions should be based on accurate job specifications by first linesupervisors. They should as far as possible be clear-cut about the exactdemands of a job.

In determining the requirements of human resources, the expected losseswhich are likely to occur through labour turnover quits, retirements, death,

transfers, promotions, demotions, dismissals, disability, resignations, lay-off,and other separations -- should be taken into account. Changes in the humanquality resulting from experience gained in the jobs during the period and thetraining achieved also need to be considered. The addition of new lines ofproduction and new projects also influence the demand estimates of humanresources. The basic fact to remember is that the human resources in anorganisation constantly changes in terms of its present and future size.

Additional human resources are gained through new employment of personnelpromotions, through transfers and demotions: but personnel is lost throughvoluntary quits, death, dismissals, termination and retirements. After making

adjustments for wastage, anticipated and exposed losses and separations, thereal shortage or surplus may be found out.

Demand Forecasting:

Demand forecasting refers to the process estimating the future need ofhuman resources in the context of corporate and functional plans and forecastsof future activity levels of the organisation. Demand for human resources in anorganisation should be based on the annual budget and corporate plan,translated in to activity levels of each function and department. In amanufacturing concern, the starting point is the sales forecast and targets.

Based on these production plans are prepared, specifying the numbers andtypes of products to be made over a specified period. Then the number of

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people, skill levels, etc. to accomplish the sales and production targets areestimated. The human resource requirements for a given level of operationsvary in the same organisation over different points of time or amongorganisations depending upon the production technologies, processes, make orbuy decisions, etc.

The plans refer to expected changes in production or manpower levelsarising from changes in working methods or procedures, automation ormechanisation. These can be mentioned as a crude percentage increase inproductivity which could be used to adjust the required man hours for a givenlevel of output. Job Analysis and work study provide the major inputs fordemand forecasting.

Job Analysis:

Before carrying out the human resource planning exercise, management

should decide what is to be performed and how. The several tasks that arerequired to be carried out will have to be divided and allocated into manageablework units called jobs. Assigning tasks to jobs is commonly known as jobdesign. The human resource requirements for a given volume of operations inan organisation depend upon the content of the jobs and the behaviour patternand operation of control systems in an organisation. Where multi-skilling isintroduced, as in fabrication, idle time in each of the operations is eliminated sothat with less number of people more output could be obtained.

Work Study:

Work study techniques are appropriate for those jobs where it is possibleto measure work, set standard norms and calculate the number of personsrequired for various jobs with reference to these norms and planned output.

A simplified example is given below:

Planned output for the year 10,000 unitsStandard hours per unit 3 hoursPlanned hours required 30,000 hours

Productive hours per person per year 1,500 hours(Allowing for absenteeism, idle time, etc.)Number of workers required 20 workersIf the span of control is 10, two supervisors will be required to supervise thework of 20 workers.

Since work study techniques are more appropriate for direct productionworkers than for any other category of employees, usually these are used inconjunction with other techniques.

There are three methods for demand forecasting:

a. Managerial judgementb. Simple statistical models

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c. Mathematical modelsd. Probabilistic modelse. Regression modelsf. Optimisation models

a. Managerial Judgement:Under this method, experienced managers prepare guidelines for

departmental managers. Such guidelines which have the approval of topmanagement, indicate broad assumptions about future activity levels which willaffect their departments. Targets are set and desirable changes in flow of workand job design are also indicated where considered necessary. Taking a cuefrom these, the departmental managers prepare forecasts with the help frompersonnel, O&M, or work study specialists. Meanwhile, the personneldepartment may also, in conjunction with other departments in the organisation,prepare a forecast of the company-wide demand for human resources. Laterthe two sets could be reconciled and reviewed by a committee consisting of

functional heads to arrive at a final forecast.The subjective element of this method is its weakness as also itsstrength. The weakness can be overcome to a certain extent by checkingsubjective assumptions with data from O & M, work study exercises, etc. Thevalue of the information about intangible factors like informal group norms andtheir effects on estimates and output cannot be measures so well by employingany other method.

b. Simple Statistical Models:The most common method is the ratio trend analysis. In its simplest form,

it refers to the ratios between say, the number of direct and indirect workers or

the number of workers and supervisors and so on. Future ratios are forecastbased on time series extrapolation, after making some allowances for thechanges that are likely to occur in future. Then the number of employeesrequired for different groups / skill levels etc. are calculated.

For use of mathematical models for Human Resources Planning, timeseries statistical data is necessary. Besides, it becomes necessary to identifyand describe a number of variables affecting human resource requirements in amathematical formula. These variables could be investment, sales, etc. Theprocess is complex and suitable only to large organisations.

c. Mathematical Models:

A model is a standard or a representation, generally in miniature, toshow the structure or serve as a copy etc. Models may be descriptive,representing past or present patterns or they may be normative, representingpossible future patterns. Descriptive models help understanding complex dataon personnel flow / movements. This is attempted through mathematicaltechniques that present a simplified and abstract view of complex and oftencontradictory empirical data on personnel flows, surpluses and shortagesrelative to needs. Future needs may be forecast through application of pastpatterns in projections by use of probabilities and correlation as also by makingappropriate assumptions. The normative models ofproperoradequate staffingare usually influenced by such subjective elements as experience, assumptions

and philosophy guiding managerial decision making. Models are used mainly to

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f. Optimisation Models:Some models seek to present optimal or the best or minimal costs,

minimal Mathematical techniques such as linear, non linear and dynamicprogramming are among the optimisation modes used in HRP also. Goal

programming which is refinement of linear programme, can also be used inHRP if the purpose is to examine the discrepancies between forecasted resultsand identified targets and suggest optimum goals that are attainable in givencircumstances and time perspective.

8 - Walker J. W. 1980, Human Resources Planning, McGraw-Hill, New York,pp 99 - 122.

Supply Forecasting:Every organisation will have two major sources of supply of human

resources: internal and external. In unionised firms, agreements up to certain

level jobs may determine the ratio of internal and external sources of supply.Also as shown below, manpower flows in and out of an organisation due to avariety of reasons. Policies affecting each of these aspects need to be reviewedregularly to assess their possible effects on human resource planning.

MANPOWER FLOWS IN AN ORGANISATION

Promotions Out

Transfers in Transfers OutRetirementVoluntary RetirementDischarge / DismissalTerminationsResignations

Recruits in Redundancy /Retrenchment

Promotions in

Internal Sources:Proper HRP and information systems enable the organisation to know

the profile of the employee in terms of age, sex, education, training, experience,job level, performance and potential. Manpower requirements arise out oforganisational growth or diversification or because of movement of theemployees on account of transfer, promotion, job rotation, voluntary retirement,resignation, retirement, dismissal, discharge or death. In either case, as andwhen the vacancies arise, organisations can match the skill and level

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requirements with the profile of the employees and meet the requirements.While some of the internal changes and external supply could be predicted(such as growth opportunities, transfer and promotions, retirements etc.), othersare not so easy to predict. But past experience and historical data may be ofsome help. The companies which have systematised personnel records and

information systems and which have well-established career and successionplans find it easier to project internal sources of supply relatively accurately.

External Sources:When the company grows rapidly, diversifies into newer areas of

operations or when it is not able to find the people internally to fill thevacancies, it has to resort to outside recruitment. To the extent a firm is able toanticipate its outside recruitment needs and scans the possible sources ofsupply with a feel of the labour market, its problems in recruiting the rightnumber with appropriate skills at the required time would become easier.

Determining Human Resource Requirement:Human resource requirements are determined by relating the supply tothe demand forecasts and identifying deficits or surpluses of human resourcesthat will exist in future. The table (next page) shows how demand and supplyforecasts can be scheduled over a period of five years.The reconciliation of demand and supply forecasts gives us the number ofpeople to be recruited or made redundant as the case may be. This forms thebasis of the action programmes in HRP.

Action Planning:The human resource requirements identified along the procedure

mentioned above has to be considered within a strategic framework.Organisations operate in a changing environment, so manpower structures alsodo not remain static. Review of activities and roles of persons at different levelsand O & M studies will provide opportunity to review and modify assumptionsmade.

DETERMINING HUMAN RESOURCES REQUIREMENTS

Y E A R S1 2 3 4 5

D 1. Numbers required at theE beginning of the yearM 2. Changes to requirementsA forecast during the yearN 3. Total requirements atD the end of year (1 + 2)

4. Numbers available at theBeginning of year

5. Accession from transfersS and promotions in

U 6. Separations through:P a) retirements

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P b) wastageL c) separations and promotionsY out

d) total losses7. Total available at the end

of year (4+5+6)R 8. Deficit OR Surplus: (3 - 7)E 9. Losses of those recruitedQ during the year UI 10. Additional numbers requiredR during the yearE (8 + 9)MENTS.---------------------------------------------------------------------------------------------

Once the human resources requirements are studied and analysed vis--visstrategic options, an action plan can be drawn up.a. Recruitment Plan:

Number and kind of people required and when they are required Identify any problem in recruiting the right people and how to

solve them The recruitment schedules

b. The Redeployment Plan: for transferring or retraining existing employees for new jobs

c. The Redundancy Plan: who is redundant, where and when?

the plans for retraining, if possible and programmes for voluntary separation, retrenchment, lay-off, etc.d. The Training Plan :

the number of employees required and the programme forrecruiting them or training them

number of exiting staff who need training or retraining and thetraining programme

e. The Productivity Plan : work simplification through O & M studies mechanisation and automation productivity bargaining ( with union )

incentives job redesign training and refresher training

f. The Retention Plan: To reduce wastage by review of reasons for employeeturnover. Information can be obtained through exit interviews and necessarychanges initiated in:

Compensation policies Induction and training Changes in work requirement Improvement in working conditions

In the above areas it is essential to undertake cost benefit analysis.

Control and Review Mechanism:

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While assessing future requirements, the estimates also depend uponthe human resource policy in the organisation. Corporate strategy can influencemanpower strategy and vice versa.

We therefore consider three approaches.

a. Zero Budgeting: is an approach in which one forces unit / division managersto justify their total operation from zero. The objective is to encouragemanagers to seriously think about their current activities. However, withthe restrictions by law and pressures from the unions, this approach maynot be practical, especially for established organisations.

b. Ideal Approach: new units can think of Ideal approach. Any decision onsubcontracting, off-loading functions like maintenance, productiontechnology, etc. may depend on what is considered ideal for theorganisation. But a note of caution, what might be considered ideal by themanagement (from the short term point of view) may attract ethicalconsiderations.

c. Realistic Approach: A firm operating a three year planning cycle may planmanpower in sub-units or divisions in such a way that it is easy to monitorand hold managers responsible. Organisations which plan to supplementhuman resource plans with other business parameters and manpower ratios( turnover per employee, capital employed per employee etc.) should notethat they might have to make adjustments in the future for variations.

JOB ANALYSIS:

It was after the Industrial Revolution around 1900 that approaches to

scientific analysis of jobs were developed by Frederick W. Taylor and Gilbert,which have been widely used since then.

Job analysis involves formal study of jobs. It provides informationregarding the requirements of a job in terms of time for completion, necessaryactivities and the expected performance standards on the one hand and alsothe specific technical and behavioural knowledge, skill and attitudes needed ina person to meet those job requirements.

Uses of Job Analysis:Job analysis through clearly defined and written down job description

and job specification, provides the basic information for all personnel functions.

USES OF JOB ANALYSISOrganisation structure Manpower planning Recruitment /

Selection, PlacementResponsibilityAuthorityAccountability

Future job requirementSkill requirement

Matching jobrequirement &skill

Labour relationDeviation from

agreed job

standards

JOB ANALYSIS OrientationWhat is expected?Job

description

Job

specificationFactual Statt Statement of

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of tasks,duties &responsibilities of a job.

humanattributes.Abilitiesrequired toperform job.

CounsellingVocationalguidanceRehabilitationCounselling

PerformanceAppraisalPerformanceStandardsPerformancereview

Engineeringdesign &methods ofimprovementJob design and

matching ofsocial andpsychologicalrequirements ofemployeestechnicalsystemrequirements

Career pathplanningFuture prospectsfor movementalong career paths

Job evaluationand rating

classification ofjobsGuiding decisionson salary structures

Training and developmentupdating of skills

changing job requirements

[Courtesy: Mr .S. V. Venkataratnam, Personnel Management]

It provides a fuller understanding of the jobs and personal attributesneeded and thus helps in taking job-related decisions. Hence it is needed to becarried out periodically.

In Organisation Structure and Design job analysis helps in classifyingjob requirements and interrelationships among jobs. Decisions on hierarchicalpositions and functional integration as also integration is possible on the basisof information made available through job analysis.

In Manpower Planning, it helps by providing useful information forforecasting and in planning for transfers and promotions.

In Recruitment, it provides information regarding the job in question.

In Selection process, useful information regarding what the prospective

candidate is expected to do on the job is available.

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In Placement, it helps to make correct decision regarding placing theright man at the right job.

In Orientation, a clear idea of what is required on a job function isprovided by Job Analysis.

In Performance Appraisal, it helps in the understanding of critical partsof a job and hence a critical evaluation is made possible.

In Career Path Planning, job analysis provides a clear idea of thevarious opportunities in terms of career path.

In Training & Development, Job Analysis provides useful informationfor identifying training needs, design and evaluation of the effectiveness oftraining programmes.

In Job Evaluation, Job Analysis is essential for ranking jobs in respectof their relative worth.

Job Design - Information about employee requirements and individualcapabilities obtained from Job Analysis form the basic data on which decisionsabout job design / redesign can be taken.

Steps in Job Analysis Process:

1. Organisation Analysis: One must obtain an overall view of the various jobsin the firm with a view to examining the interrelationships between jobs and

the organisational objectives and the contribution of various jobs to theorganisations effectiveness and efficiency. The organisation chart is animportant source for this data.

2. Decision regarding the usage of Job Analysis information: Depending onorganisation, it is desirable to decide before hand, the possible uses theorganisation would like to make on the information that might be madeavailable from Job Analysis information.

3. Selection of Jobs for Analysis: It is desirable to select a representativesample of jobs for Job Analysis, to save cost and time.

4. Collection of Data: Data is to be collected on the characteristics of the job,the personal attributes and behaviour to do the job effectively. Care alsoshould be taken to employ only reliable and acceptable - to the specificorganisational environment - techniques from among the various techniquesavailable.

5. Preparation of Job Description: The data collected is used in preparing a jobdescription for the job highlighting major tasks, duties and responsibilities.

6. Preparation of Job Specification: Also, the data collected is used to prepare

job specification for a job, highlighting the personal requirements likeeducation, training, aptitude, experience, attitude etc.

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Job Analysis: Methods of Collecting Data:

There are many sources and methods for collection of data.

The organisation chart provides a basic understanding of therelationship between departments and units, between line and staff functions,channels of communication and information flow. The chart will give out theformal arrangements in the organisation, but not about the informalarrangements that do develop when people work together.

Another source of information is the process chart or work flow chartspecifying the interconnections of various jobs in specific terms, as it spells outthe flow of activities pertaining to a job from the input to the output stage. Theseand other sources need to be consulted before beginning the use of other jobanalysis methods.

A questionnaire, called the Job Analysis Information Format (JAIF) 9

can also be used. The JAIF can provide basic information for use of any jobanalysis method. Job incumbents are asked to complete the JAIF and on theinformation obtained, decision regarding the use of various methods of datacollection and further investigation can be taken. The JAIF has 17 itemscovering purposes of the job, supervisory duties, work output, duties,educational qualifications, experience, skill, equipment, physical and emotionaldemands, environmental conditions, health and safety requirements of the job.

The commonly used methods of data collection are discussed below:

Job Performance:

This involves the analyst actually doing the job under consideration toget first hand information about actual tasks, physical, environmental, andsocial demands of the job. This method can be employed where skillrequirements are not high and therefore jobs can be learned quickly and easily.This method is not useful for jobs requiring extensive training.

Observation:The analyst observes, without getting directly involved in the job, the

worker or a group of workers during their actual performance in job.Observations are made on tasks, activities, the way the different activities areperformed. This method is useful for jobs that involve manual, standardised andobservation is difficult. The workers are interviewed to collect data on various

requirements of the job. It is advisable to use a standard questionnaire. Datathus collected from a number of workers can be analysed to find out thecommon and important aspects of the job.[

Interview:This is a widely used method particularly with those jobs that cannot be

observed or actual performance analysed by the analyst. The workers aretherefore, interviewed to collect data on various requirements of the job. It isnecessary to use a standard format. Standardised interview schedule with jobrelated questions need to be prepared carefully.

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9 - Henderson, R/L., 1979. Compensation Management, Reston: Virginia, pp 16- 152.

One major problem with the interviewing is that incorrect informationmay be given. If the purpose of the interview is not explained to the worker, he

may give wrong information to protect his interest. Also establishing rapportbetween the worker and the interviewer is critical.

Critical Incidents:Another way to obtain data on job requirements is to differentiate between

effective and ineffective behaviours of the workers in their jobs. The workersnarrate, from their past, their experiences in particular job(s). The incidents arecollected and analysed. The result of the analysis will indicate a clear picture ofjob requirements. However, the method is time consuming and requires specialexpertise on the part of the analyser to sieve the data collected.

Questionnaire:Structured questionnaire are developed on the different aspects of the job andthe behavioural patterns (co-ordinating, mental processes etc.). Thequestionnaires are administered to employees and they are asked to respond.The data obtained is analysed and a profile of job profile is constructed.

Some of the standard questionnaires are the ComprehensiveOccupational Data Analysis Programmes (CODAP), Position AnalysisQuestionnaire (PAQ) and Functional Job Analysis (FJA). The Position AnalysisQuestionnaire (PAQ)* is a behavioural oriented job analysis questionnaire. Ithas 194 attributes that may be broadly classified in to:

1. Information Input 2. Mental Process 3. Work output4. Relationship with others 5. Job Context 6.Other jobcharacteristics

Each of items above is rated in terms of its importance to the job and analysedunder a 5 point scale:DNA -- Does not apply1. -- Very minor 2. -- Low 3. -- Average4. -- High 5. -- Extreme

For analysing managerial jobs also, the following two questionnaires are

available.

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Management Position Description Que stionnaire (MPDQ) 10:

It has 208 behavioural instruments for comparing, classifying andevaluating executive positions in terms of their job content. The latest version ofthe MPDQ is classified in to 10 parts:

a. General informationb. Decision makingc. Planning and organisingd. Supervising & controllinge. Consulting & innovatingf. Contactg. Monitoring business indicatorsh. Overall ratingsi. Know-howj. Organisation chart.

Supervisory Task Description Questionnaire (STDQ)11

:

This questionnaire has 100 instruments for the front-line supervisors in sevencategories:Working with subordinatesOrganising work of subordinatesWork Planning scheduleMaintaining efficient quality and productionMaintaining safe and clean work areasMaintaining equipment and machineryCompiling records and reports

Job Design:

The purpose of carrying out job analysis is to develop appropriate designfor improved efficiency and productivity. Job analysis provides details of thetasks and activities to be carried out on a particular job as also the humancharacteristics required of inter-relatedness of the activities, combining them inmanageable work units, using input-output analysis and matching them withrequired human skills and motivation in such way as to maximise productivityand human satisfaction.

10 - Rornow, W. W. and P. R. Pinto, 1976. The Development of a ManagerialJob Taxonomy: A System for Describing, Classifying and Evaluating ExecutivePositions, Journal of Applied Psychology, vol. 61, pp. 410 - 418.11 - Dowell B. E. and Wexley K. N., 1978. Development of a Work BehaviourTaxonomy for First Line Supervisors, Journal of Applied Psychology, Vol. 63,pp. 563 - 572.

Classical Approach:

It was in 1900s that Frederick W. Taylor developed the Principles ofScientific Management, which forms the basis for designing jobs in

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organisations. The emphasis of scientific management is on planning,standardisation and improving quality of human effort at the operative level soas to maximise output with minimum input. The principles on which job design isbased can be explained as below:

Task Fragmentation:To achieve technical efficiency, a task is to be broken down to smaller

operations.

Technology Optimisation:On the basis of scientific analysis of the job it is advisable to develop the

best way to do the job. The best method can be changed without any change inefficiency.

Standardisation of the Method:The standardisation is achieved through time and motion studies.

Specialisation:Workers are to be selected to perform specific tasks leading to

specialisation.

Training:Selected workers be trained efficiently for the task. Training costs and

time are reduced due to fragmentation of tasks in to simple operations requiringlow skill-level.

Individual Responsibility:

Individual worker is made responsible for a single operation (fragmentedtask).

Economic Incentive:After assigning responsibility of specialised and standardised

operations, incentives as reward for performance is developed.

The design of job based on the above principles has its impact onorganisational efficiency, human motivation etc:

1. Narrow Specialisation: Workers will perform only one or two operations or

duties. Full worker potential may not be exploited.

2. Routine Job Functions: The same operation is or duty is repeated again andagain, resulting in boredom and dissatisfaction.

3. Reduction in Work Cycle: The intervals between repetitions of operationsbecomes less and less, leading to monotony and boredom.

4. Techno-Economic Criteria of Evaluation: As the design is based ontechnical efficiency alone and not on human satisfaction and well being.

5.

The rational and task centred approach to job design will have serious impactas the social and personal needs of human beings in work are not taken in to

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account. Adam Smith notes The man whose whole life is spent in performing afew simple operations becomes as stupid and ignorant as it is possible for ahuman creature to become. 12

Jobs designed on classical principles to maximise efficiency and tominimise costs will result in very high hidden psychological costs, particularly

with the present generation of workers with high awareness and a bettereducation and high aspirations, leading to them becoming frustrated andalienated.

This alienation and frustration will translate itself into, in job context, lossof interest, lack of attention, absenteeism, resistance to change and evensabotage. At the individual level, it might cause illness, depression,maladjustment in family and social life. Thus the psychological costs ofmonotonous, non-challenging jobs well exceed their economic benefits.

Job Description:

The data collected for job analysis provide the basis for preparing jobdescription for each job. This functional description describes what the jobentails. Although there is no standard format for a job description, it usuallyincludes:1. Job Title: --- a title of the job.2. Job Summary: --- a brief statement of what the job entails.3. Job Activities: --- a description of the tasks performed, resources

used and the extent of supervision given or received.4. Working Conditions and Physical Environment: --- heat, light, noise

level, hazards are described.5. Social Environment: --- Information on size of work group and

interpersonal interactions required to perform on the job.

12 -- Smith, Adam. An Inquiry in to the Nature and Causes of the Wealth ofNations (1976) quoted in R. H. Campbell, et al. (Eds), 1976. Oxford UniversityPress: London.

Job Specification:

The job specification details the attributes of a person in terms of

education, training, experience, skills, abilities and aptitude required forperforming a particular job, which have been enunciated in Job description. Forevery job description it is essential to have a job specification so that one candetermine what kind of a person is required to perform a particular job. Theattributes can be categorised as under:

1. Essential Attributes: abilities, skills, and knowledge.2. Desirable Attributes: those one must possess.3. Contra-indicators: attributes that will come in the way of

successful performance.

To specify minimum human requirements for a job is difficult and it willinvolve a high degree of subjectivity. Generally organisations enunciate high

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requirements for formal education and training, thereby highly qualified peopleend up doing routine jobs. Particularly, in India, highly qualified persons arerecruited for jobs where their abilities, skills and knowledge are under-utilised,leading to job-dissatisfaction and frustration.

Despite these problems, minimum acceptable human requirementsrequire to be specified for various jobs and categories of jobs.

The usual format for job specification is given below:

1. Position Title2. Education / Training3. Experience4. Knowledge5. Abilities6. Skills

7. Aptitude8. Desirable attributes9. Contra-indicators, if any.

Recruitment, Selection, Placement and Induction:

Recruitment:

It refers to the process of bringing together prospective employers andemployees. The purpose of recruitment is to prepare an inventory of people

who meet the criteria in job specifications so that the organisation may choosethose who are found most suitable for the vacant positions.

Process of Recruitment:

The process begins by specifying the human resource requirements,initiating activities and actions to identify the possible sources from where theycan be met, communicating the information about the jobs, terms andconditions and the prospects hey offer and encourage people who meet therequirements to respond to the invitation by applying for the job(s). Then theselection process begins with the initial screening of applications and

applicants.

Job analysis would have already provided the job specifications i.e.qualities, qualifications, experience and abilities. Human Resource Planningprovides the basis to arrive at the numbers, levels, and timing of recruitment.

Sources of Recruitment:

The requirement can be met from internal or external sources.

Internal Sources:

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They include those who are employed in the organisation or those whowere in the past employ (but quit voluntarily or due to retrenchment) and wouldreturn if the organisation likes to re-employ. The advantage in looking forinternal resources is that they provide opportunities for better deployment andutilisation of existing human resources through planned placements and

transfers. It will also motivate people through planned promotions and careerdevelopment when vacancies exist in higher grades. The law providespreferences to retrenched employees when vacancies arise in future.

External Sources:

Organisations may look for people outside it. Entry level jobs are usuallyfilled by new entrants from outside. Also in the following circumstancesorganisations may resort to outside sources:

a. when suitably qualified people are not available.b. when the organisation feels it necessary to impart new blood for fresh

ideas.c. when it is diversifying into new avenues andd. when it is merging with another organisation.

Internal Method:

This is filling up of vacancies from within through transfers andpromotions. Transfer decisions are usually taken by the management andcommunicated to those concerned. In case of promotions, however, informationabout vacancies is communicated through internal advertisement or circulationand application are invited from eligible candidates who wish to be considered

for the positions. Or the organisation may prepare seniority o seniority-cum-merit lists and consider the eligible candidates for internal promotions.

Some organisations keep a central pool of persons from which vacanciescan be filled for manual jobs. Any person who remains on such rolls for 240days or more is treated, in the eyes of law, as a permanent employee, and istherefore, entitled to all benefits including Provident Fund, Gratuity andretrenchment compensation under section 25F of the Industrial Disputes Act.Though the system appears to be costly, it has its own benefits, viz. (a)continuous supply of labour is assured (b) work is not affected due toabsenteeism (c) there is no problem of fresh induction and (d) it is possible to

train people in multi-skills.

Methods of Recruitment:

The methods of recruitment might include one or more of the following:a. Directb. Indirectc. Third-party.

Direct Method:

These include campus interviews and keeping a live register of jobseekers. Usually used for jobs requiring technical or professional skills,

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organisations may visit IITs, IIMs and colleges and universities and recruitpersons for various jobs. Usually under this method, information about jobs andprofile of persons available for jobs is exchanged and preliminary screeningdone. The short-listed candidates are then subjected to the remainder of theselection process.

Some organisations maintain live registers / records of job applicantsand refer to them as and when the need arises. Usually in all such cases,preliminary screening is completed by examining the application form filled bythe candidate and / or preliminary interviews.

Indirect Method:

These include advertisement in the print media, radio, T.V., trade,technical and professional magazines, etc. It is advisable to state in theadvertisement the responsibilities and requirements along with definite hint

about compensation, prospects etc.

This method is appropriate where there is plentiful supply of talent whichis geographically or otherwise spread out and when the purpose of theorganisation is to reach out to a larger group. However, it is not always possibleto get key professionals or those with rare skills through this method.

Third-party Method:

They include reference to Employment Exchange, which is a statutoryrequirement for the jobs / organisations to which the Employment Exchanges

(Compulsory Notification) Act applies. Special Employment Exchanges havebeen set up in different places for displaced persons, ex-military personnel,physically handicapped, professionals etc. For highly skilled technical jobsUniversity Employment Bureaux and the Council of Scientific and IndustrialResearch have also been set up. There are many problems in developing suchservices efficiently and organisations successfully contested such rulings byfiling cases in courts when they were asked to select only from among thosesponsored by the employment exchanges.

Head Hunting services, consultancy firms, professional societies andtemporary help agencies are among other sources of third-party recruitment.

Traditionally, in India the following methods are used: Casual labour presenting itself at the factory gates on a day-to-day basis and offering themselves for employment Hiring through labour contractors, maistries etc. Spreading information about jobs through word of mouth includingfriends and relatives, present employees etc.

In recent times, new form of sub-contracting, franchising, home-work andcontractual norms of work are emerging.

Some of the legal and political restraints limiting the sources of

recruitment are mentioned briefly below:

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1. Child Labour (Prohibition and Regulation ) Act, 1986:This Act replaces the Employment of Children Act, 138, and seeks toprohibit the engagement of children below 14 years of age in certainemployment and to regulate the conditions of work of children in certainother employment. Penalties for contravening the provisions are fine and

imprisonment.

2. The Employment Exchanges (Compulsory Notification of Vacancies) Act,1959:The Act requires all employers to notify vacancies (with certain exemptions)occurring in their establishments to the prescribed employment exchangesbefore they are filled. The Act covers al establishments in public sector andnon-agricultural establishments employing 25 or more workers in the privatesector. Employers are also required to furnish quarterly return in respect oftheir staff strength, vacancies and shortages and a biennial return showingoccupational distribution of their employees. While notification of vacancies

is compulsory, selection need not be confined only to those who areforwarded by the concerned Employment Exchanges.

3. The Apprentices Act, 1961:The Act seeks to provide for the regulation and control of trainingapprentices and for matters connected therewith. The Act provides for amachinery to lay down syllabi and prescribe period of training, reciprocalobligations for apprentices and employers etc. The responsibility forengagement of apprentices lies solely with the employer. An apprentice isnot a workman.

4. The Contract Labour (Regulation and Abolition) Act, 1970:This Act seeks to regulate the employment of contract labour in certainestablishments and to provide for the abolition in certain circumstances. TheAct applies to every establishment / contractor employing 20 or morepersons.

5. Bonded Labour System (Abolition) Act, 1976:This Act seeks to provide for the abolition of bonded labour system with aview to preventing the economic and physical exploitation of the weakersections of society.

6. The Inter-state Migrant Workmen (Regulation of Employment andConditions of Service) Act, 1979:This Act safeguards the interests of the workmen who are recruited bycontractors from one state for service in an establishment situated inanother state and to guard against the exploitation of such workmen by thecontractors.

7. The Factories Act, 1948, the Mines Act, 1952, etc. :Certain legislation, like the Factories Act and the Mines Act prohibitemployment of women (in night work, underground work etc.) and children(below 14 years of age) in certain types of jobs.

8. Reservations for Special Groups:

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In pursuance of the constitutional provisions, statutory reservations andrelaxed norms have been provided in education and employment tocandidates belonging to Scheduled Castes and Scheduled Tribes in centraland state services including departmental undertakings, governmentcorporations, local bodies and other quasi - government organisations. Most

state governments have issued policy directives extending the reservationsto notified backward communities also.

Over the years, the concept of reservations in education and employmenthas been extended to other categories as measures to tackle socialproblems or to pursue so

Documents

Full HRM Notes by Ramchadran Sir